Wholesale REO; double closing NOT ALLOWED! help!

Bird Dogs, Wholesaling
1

Is there any way to circumvent double closings? Had an reo property, half way through the deal, found out county does not allow double closings, is there any way to go around it??

Thanks!

2

Hi,

When you refer to double closing your refering to using your end buyers money to pay for your purchase, and then obviously closing on there end buyer purchase?

If this is correct? I am not surprised your making this posting as about two thirds or more of US states don’t allow a double closing!

You should use transitional funding to buy your (Seller) A - B (Your B) deal and close over to your B - C (Your Buyer) normally next morning!

The cost for this is dependant on your deal, amount of money and location.

Check this forum or the hard money / private money / transitional funding list on this site!

             GR
3

Hi GR,

Double closing I mean I use transactional funding to close between A (seller) - B(me) in one closing, and then do another separate closing between B (me) - C (my buyer). This is not allowed in some counties that I’ve worked in. Do you know any ways to circumvent that?

Thanks!

4

You might be able to take a different approach to avoid the hassles and restrictions of a double close. There are two informative threads about that here: http://www.naked-investor.com/forums/index.php?showtopic=4569
and here: http://www.naked-investor.com/forums/index.php?showtopic=5062.
Hope this helps. Good luck.

5

Hi AJ290,

Thank you so much for your links! I’ve found a lot of important info that I wasn’t exposed to, and I’m still browsing through the site itself in addition to the links, it’s very helpful. But the links pertain mostly to lease-options, not REOs.

But still, it’s always great learning more, thanks!

6

Indeed that answers one of my questions as well

7

Here are 2 ways:

  1. Close in a land trust and assign the beneficial interest to your cash buyer for your fee

  2. Close in a LLC and sell the entire LLC to your cash buyer for your fee

Your cash buyer still brings the money to closing, just do the paper shuffle at settlement. You’ll want to consult your attorney for details and applicable documents.

8

nsu1997 You nailed it brotha.

9

I get it right every now and then! LOL :biggrin