By Maria Brandenburg & Janet Moe | Great American Title
When considering doing a double escrow/simultaneous closing, please be aware that there are two separate contracts, and each contract stands on its own merits.
Typically, the wholesaler is the Buyer on the A – B transaction and the wholesaler is the Seller on the B – C transaction.
When doing the double closing, it allows the wholesaler to avoid any assignment fees and may handle a larger spread which would generate more profitability.
Is it possible to close a double closing with no money?
- The wholesaler can secure transaction funding to fund the A – B Transaction.
- The B – C transaction may be funded by the end Buyer’s private money/hard money lender. In the B – C transaction and when using the buyer’s private money/hard money lender, the Buyer’s hard money lender would need to agree to the terms of funding the B – C transaction.
These types of transactions may be difficult to navigate with a successful close of escrow. It would be in all party’s best interest to select your company and escrow officer wisely, prior to opening escrow.
When considering doing a double close/simultaneous closing, use due diligence and consult a legal professional when needed.
*Coming soon: VORTEX MARKETING – the ultimate platform for real estate. Get lists of FSBO’s, Cancelled, and Expired Leads.