Real estate investors often utilize a double close to keep their profits private from both the seller and the buyer. The key to the double closing is that it's two separate transactions – one between seller and wholesaler and another between wholesaler and end buyer.
What is an example of a double closing?
For example, let's say Jane (Seller) accepts an offer to sell 123 Main St to Tom (Wholesaler) for $100,000. Tom, in many cases using "transactional funding", purchases the property for $100,000. On the same day, Tom sells 123 Main St to Mike (End Buyer) a local flipper, for $120,000.
What is a double closing called?
A double closing (also known as a simultaneous closing) works by coordinating two transactions among three different parties: a seller, a wholesaler, and a buyer.
What is the difference between assignment and double closing?
Or their attorney the contract between you and a seller that's why the double escrow is used when people have a huge spread between the price they're buying a deal for and the price they're selling a
Is double closing considered wholesaling?
In wholesaling, a double closing is two separate yet simultaneous purchase and sale transactions on a home. The homeowner first sells the property to the wholesaler, who turns around and immediately sells it to the end buyer—often on the same day.
How does a double close work in real estate?
A Double Closing is the simultaneous closing of two separate Purchase and Sale Agreements involving three parties – a seller, a real estate investor, and an end buyer. The sale of the property to a third-party investor is referred to as the Acquisition Escrow.
🎊✨DOUBLE CLOSING DAY!!✨🎊 Congrats to my Sellers for the closings we had today. Thank you so much for putting your trust in me and my team Archway Real Estate.
— Lorena Fischer (@LorenaTXRealtor) March 3, 2021
✨#sold #closingday #doubleclosing #closedandfunded #experience #negotiation #results #sellersmarket #listingagent pic.twitter.com/QoF9qCRvzS
Is simultaneous closing illegal?
There is no mandatory provision or even statute in CA that prohibits a double closing done on the same day in two separate transactions.
Frequently Asked Questions
How does a double close work wholesale?
A double close involves purchasing a property wholesale and then “flipping” the property to an investor that same day; thus the double closing -- the wholesaler's closing is nearly simultaneous with the end buyer's closing. You only hold the title for a quick minute!
What does double mean in real estate?
As the name suggests, there are two closings – the original closing when you purchase the property from the seller (A to B transaction) and the second closing when you sell the property to the end buyer (B to C transaction). Ultimately, a double closing makes you the 'middleman.
How do you double close real estate?
In the simplest form of double closing, the purchaser would pay the purchase monies to the middleman and they would complete a settlement statement (HUD-1) for their transaction. The purchaser would have to wait while the middleman uses most of the purchase monies to purchase the property from the seller.
FAQ
- What is double contracting?
- An arrangement where an employee has two employment contracts with different employers (usually in the same group), covering the whole of their working time.
- How do you double end a real estate deal?
- When a buyer purchases a home directly through the listing agent, rather than through their own buyer's agent, they enter into an arrangement known in the industry as “double-ending.” The term refers to the fact that there are two “ends” or halves of a commission on a real estate deal.
What is a double closing in real estate
| What does double closing mean in real estate | Jul 31, 2023 — The double close strategy lets a real estate investor have two private deals – one with the seller and one with the end buyer. |
| What is double closing wholesaling? | What Is A Double Closing? A double closing is an alternative wholesaling strategy to the wildly popular contract selling method. More specifically, however, double closings will witness an investor actually purchase a subject property, only to turn around and sell it fairly quickly—hence the name double closing. |
