This post looks at the wholesale real estate double closing strategy, also known as the simultaneous close, and explains how you can master it.
Explained: The Double Closing in Real Estate Wholesaling
Step 1: Find a property that will likely make a good deal for you as an investor.
Step 2: Carry out due diligence. Do your research to understand the strengths and weaknesses of the property. This step helps you get a clear idea of what needs to be fixed.
Step 3: Plan the renovation budget. Breakdown of how much you need to spend on the house and where the money will be spent.
Step 5: Complete a double close. Buy the property from the buyer and sell it to the investor the same day. Then you get paid for your part in the closing.
Though double closing looks like real estate wholesaling, there’s a significant difference. When you double close, you are more invested. You’re not just shuffling contracts around. You close and buy the property, reselling it quickly. You flip the property while double closing instead of just flipping the contract.
The Benefits of Double Closing for Wholesalers
When compared with assigning contracts, double closing offers the following benefits.
- Skin in the Game: As mentioned above, you have the funding to buy the property. Both the property seller and investor can benefit from this ability.
- Fix and Flip is Your Plan B: In the worst case, if the investor backs out at the last minute, there’s a secondary solution. For example, in double close, you invest only in properties worth fixing up and reselling. So, if you find that the investor backs out at the last minute, you can close it, fix it up, and resell it for a profit.
- Hide Your Fee from Sellers and Investors: The biggest benefit of double closing is that it allows you to hide the costs from your customers. You don’t have to disclose your cut to the property seller or investor. As a result, the buyer cannot cut your fees because they do not know how much you’re making on the deal.
As you can see, double closing is different from assigning contracts. If you want to take your real estate wholesaling to the next level, consider double closing. But you may be wondering, “What to do if I don’t have the capital to double close?” At DoubleClose.com, we provide transactional funding for wholesalers in Georgia, Michigan, Illinois, Florida, and New Jersey. All you have to do is connect with our team, and we’ll provide you with 100% funding to help you double close real estate deals. Irrespective of whether you’re a newbie or a seasoned investor, double closing can help you take your real estate deals to the next level!