The 2022 real estate market has proven to be an unpredictable one—and the year isn’t even over. This is a main reason why more and more real estate investors are trying out double closing. When done right, double closing can be quite lucrative, and you don’t even need a large sum of capital to do it.
In this guide, we break down everything you need to know about wholesale real estate double closing. With this information, you can test the waters and see if double closing is the right strategy for you.
What Is Double Closing?
The term “double closing” comes from the fact that two transactions happen simultaneously in this scenario. Specifically, the investor purchases the property from the original seller, and then they quickly flip it by selling it to another buyer. This method is a popular alternative to the contract assignment strategy.
Can You Double Close With Any Kind Of Property?
Double closing isn’t just for residential properties—you can do this with commercial properties too. All you’ll need is the same closing agent (closing attorney, escrow office, or title company) to handle both deals.
Do You Need Cash To Execute A Double Close Deal?
No. You can complete a double close deal with transactional funding or with funds that the end buyer puts up for the property.
That said, if you’re running low on funds and you need a quick loan to fund the initial purchase, DoubleClose.com has got you covered. We’re the number-one transactional funding lender, and we provide same-day funding to real estate investors all over the continental United States. Whether you need over or under $1 million, we can provide the funding you require. There are no credit checks and no down payment is required. We can provide up to 150% of the amount you require, and you won’t be charged interest when you get transactional funding.
Is Double Closing Legal?
A double closing is handled like any other real estate deal which involves buying and selling a property. In a double closing deal, the investor buys the property from one party and sells it to another party. To ensure that your double closing agreements are legal, you should connect with a trusted real estate attorney in your area. They can make sure you comply with all the local, state, and federal laws that apply.
What Are The Benefits Of Double Closing?
Here are three significant benefits associated with double closing:
1. End Buyer Won’t Know Your Profit
In a regular real estate transaction, the end buyer usually knows how much profit the seller is making from the sale. If you don’t want the end buyer to know how much you’re profiting, double closing is for you. The end buyer won’t know about the initial transaction in a double close scenario. And if they’re unaware of how much you’d profit from the sale, it’s a lot easier to negotiate a fair selling price during the second transaction.
2. Bypass Red Tape
Double closing will help you avoid the red tape that slows down traditional real estate transactions. You also avoid certain regulations and other legal issues when you choose this kind of transaction.
3. Alternative To Contract Assignment Strategy
Many hedge funds are no longer allowing assignments, and instead they’re requiring that borrowers double close. Transactional funding makes it possible for an individual to double close when they lack the funds required to do so.
Revamp Your Tactics To Succeed In The Challenging Real Estate Market Of 2022
Whether you’re a real estate pro or just getting started, double closing can be profitable and easy. You can double close when selling distressed properties, flipping houses, or selling land parcels to developers. And at DoubleClose.com, you can get the funds you require with zero hassles; it doesn’t matter how big the deal is or what kind of deal it is.
Call us at (866) 901-4046 to get the transactional funding you need to close lucrative real estate deals.