How do double closings work? Is this when I get a property under contract and sell it right before i purchase it?

Is this legal? How well of a strategy is this? Can any property be double closed on?

i've never heard of this
anyone?

__________________
"I'll make you an offer you can't refuse"

There are a million diffent ways to do double closings. Some legal and some not. Steve will break it down for you I'm sure.

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Amber Gaskill
Closings Where You Want-When You Want
Phone (260) 925-2757
Fax (260) 925-1288
Cell 260-908-2206
115 W. 7th Street
Auburn, IN 46706

"Forging a solid partnership with a title provider
who has the skills, experience and capabilities
to deliver customized title solutions provides an
important survival skill in the challenging environment
mortgage professionals face today" quote from NAMB

The standard is when you close first with your seller, and then with your buyer. You have a contract to purchase that you execute, and then do the same on the sales side.

Amber is right it is done a bunch of different ways, and as long as it is done correctly without faking any paperwork (like backdating deeds and stuff) then it is very legal. The main issue that people have with them is on the lending side of things. Most conventional lenders have issues with these types of closings because of the chain of title attached to it. This is where hard money lenders have made a living over the last few years. There are some lenders, usually small banks that will do this deal though. This is also why people use cash or an equity line to purchase, and then do a refi at a later date.

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Steven Brown
Cash 4 Houses, LLC
HomeVestors
Mobile, Al
251-366-HOME
steve.brown@homevestors.com

this has nothing to do with those proposed laws that you talked about in that other post (possible making them illegal) is it?

__________________
"I'll make you an offer you can't refuse"

OK, so let me know if I get this right...I sell the property to my buyer and then actually buy the property?

How often do double closings take place? Who picks the closing company in real estate transactions?

I like to control the closing process personally so that I can close with my attorney/closing company that knows how I like to do things.

You would buy the property and at the same time sell it to your buyer. Usually your buyer will be in one room and your original seller in another. I even prefer to have the buyer come in first and fund the transaction, and then close an hour or two later with the seller, so that it is a "wet" closing for the seller and myself.

Last year, out of the 60 or so wholesale deals we did, about 55 or so where double closings.

__________________
Steven Brown
Cash 4 Houses, LLC
HomeVestors
Mobile, Al
251-366-HOME
steve.brown@homevestors.com

how do you get people to buy before it is technically yours?
i've had some people ask me if it was my place
i didn't have a response

__________________
"I'll make you an offer you can't refuse"

Out here in California (The 6th largest Country on the planet) we have equitable interest when we have the "right" to buy a property and that interest allows us the "right" to sell the property. Naturally you cannot transfer granted ownership without first having the seller grant you the property. At recording of the grant deed we give constructive notice to the world that we now have ownership and now can grant ownership to our buyer.

The issue of double closing is really only an issue if the buyers lender requires the "seller" to be named as the owner on the preliminary title report. Which can’t happen until the constructive notice is given.

Also a concern is whether the buyers lender will allow the pass of funds to the owner seller without insurance from the title company on their funds and a title company may not insure the pass.

Which means you may have a situation where you are borrowing funds from a lender and paying for a title policy for that moment in time. Typically a cost of 1% is not uncommon.

Good Luck