a double closing is an alternative wholesaling strategy to the wildly popular contract selling method. to put things into perspective, a double closing will have two separate transactions. throughout a double closing, investors will incur the standard fees associated with a real estate closing, which are directly correlated to the state in which the transaction takes place. whereas a double closing will have a wholesaler purchase the property (therefore being committed to the chain of title), assigning a contract will not require the wholesaler to purchase it.
the double close real estate wholesaling strategy is typically best relegated to a reserve role. the ability to conduct a double close is invaluable to investors. however, a contract assignment may not be in the cards for many reasons. so if you’re considering real estate investing, register for our free 1-day real estate webinar and get started learning how to start a successful investment business today!
a double closing is the simultaneous purchase and sale of a real estate property involving three parties: the original seller, an investor (middleman), and the final buyer. another common reason for a double closing is to conceal the identity of the purchaser or seller. typically, a real estate investor first enters into a contract to purchase a property and then subsequently (before closing the purchase) enters into a contract to sell the property (hopefully for a higher price). 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 seller and middleman would also complete a separate settlement statement for their transaction. to keep the purchaser and seller separate, the closing may be conducted in two different rooms or at two different times or locations. to simplify the transaction, the middleman may make one settlement statement directly between the purchaser and seller and take his profit as a line item on the settlement statement. this may create a problem for the middleman, as assignment fees may be taxed at a different rate than short-term capital gains. from a legal standpoint, most sale contracts stipulate that the seller may pay encumbrances out of the proceeds of the sale.
a double closing is the simultaneous purchase and sale of a real estate property involving three parties: the original seller, an investor, and the final buyer.nthe underlying reasons for having a double closing vary. a double closing enables a wholesale investor to protect the profit by keeping the purchase and subsequent sale to an end buyer as separate a double closing is an alternative wholesaling strategy to the wildly popular contract selling method. more specifically, however, double closings will witness a double closing (also known as a simultaneous closing) is a coordinated real estate transaction involving three parties: a seller, a real estate wholesaler, double closing contract template, double closing contract template, double closing contract download, double closing wholesaling, is double closing illegal.
a double closing is the simultaneous purchase and sale of a real estate property involving three parties: the original seller, an investor (middleman), double closing provides an alternative strategy to the popular contract assignment method. this kind of closing typically occurs when an step 1: find the deal step 2: negotiate the contract step 3: locate an end buyer step 4: line up both closings step 5: close the deals & get, title companies that do double closing, double closing title companies near me, double closing vs assignment, what is a double closing, double close transactional funding, is double closing legal in texas, in what states are double escrow prohibited, how to do a double closing in real estate, double closing costs, simultaneous closing vs double closing.
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