In many ways, double closing can be a solid strategy for real estate investors. First, you can hide your profits from the sellers and buyers you work with. Conversely, if you assign contracts, your profits are laid bare for end buyers to see.
In short, if you know how to double close, you can take advantage of complex deals and profit handsomely when you get things right.
Here, we answer a few key questions about double closings so you have all the important information you need to start double closing successfully. Let’s begin!
1. How Can Real Estate Investors Use Transactional Funding For Double Closing?
Transactional funding is a valuable tool for real estate investors who do double closings. Essentially it’s a short-term financing solution that allows real estate wholesalers to close deals quickly.
So if you don’t have the capital to buy a flippable home, you can still make deals happen. Of course, you’ll have to pay a fee to borrow the money, but only if the deal closes.
2. What Kind Of Financial Verification Is Needed To Complete A Double Closing?
Investors usually have to produce proof of funds for real estate before they can complete a double closing. Bank statements, credit letters, and other documents can serve as proof of funds. If a buyer can’t produce proof of funds, the seller may choose to deal with someone else.
3. How Are Double Closings Different From Traditional Real Estate Transactions?
Double closings are different from regular real estate transactions in a couple ways. For one, they involve two distinct transactions that happen almost simultaneously.
If an agent is going to be part of a double closing, they’ll need to know the particulars and legal implications. Specifically, they’ll need to see all relevant disclosures and required paperwork.
Reputable title companies or transactional lenders can provide agents with the documents they need to successfully handle double closings.
4. What Benefits Do Real Estate Investors Receive From Double Closings?
- They don’t have to use their personal finances.
- They can buy and resell properties quickly.
- There’s potential for larger earnings.
- They’ll have more control over the deal.
- They’ll have more flexibility while completing the transaction.
5. What Legal Factors Should You Consider When Double Closing?
Real estate investors need to be aware of relevant laws before they start double closing. In some states, double closing is expressly forbidden; in others they’re closely regulated.
Basically, if you want to do a double closing, you’ll need to cross your Ts and dot your Is—as far as the law is concerned.
Consulting with an experienced real estate lawyer is essential; they’ll help you adhere to relevant state laws and regulations
6. Is It Possible To Make Double Closings A Part Of A Wholesaling Business Strategy?
Adding double closings to a wholesaling strategy can result in more profits. If you know how to double close properly, you can quickly buy and resell properties for a profit.
Wholesalers like to find multiple deals at once. After they get everything lined up, they just have to work with the sellers and buyers.
And if you get a reputable lender to provide information and assistance, you can achieve smooth double-close deals.
Do You Need Money To Close A Local Wholesale Real Estate Deal?
You can get funds from DoubleClose.com. We provide wholesalers with the best transactional funding available, and there are no up-front costs for multiple closings.
Obtain the money you require quickly and easily. Just contact us and tell us about your transaction. If things look good on our end, we’ll send the money you require.