When trying to make a great career out of real estate investment as a wholesaler, it’s vital to have multiple strategies to stay in the game. Contract assignment is the best option because it does not require any funds for closing, but you must be ready with a backup plan when the assignment does not work. Double closing is a better alternative to contract assignment when you can access the best transactional funding. What are the advantages and drawbacks of double closing a real estate deal? Let’s take a deep dive to learn more!
Pros of Double Closing
Double closing is an essential strategy for an investor to make a quick profit from the sale. Here are some of the advantages of double closing a real estate deal.
- Double closing is the best option for a wholesaler when the contract is not assignable. It allows the investor to make the deal happen in a few hours.
- Neither the seller nor the buyer will ever know how much you’re making by double closing a wholesale real estate deal.
- In most states in the US, double closing is treated like a regular traditional closing that does not need a real estate agent.
- Getting transactional funding for double closing is easy because transactional lenders like DoubleClose.com are ready to help you with flash funds.
Cons of Double Closing
Double closing may seem attractive for wholesalers, but it has some drawbacks too.
- Double closing can become stressful if any parties back out of the deal.
- Double closing is illegal in a few states, so you must understand local laws.
- As the name suggests, double closing is double the work, and you will be dealing with two different transactions with significant paperwork.
When Should You Consider Double Closing a Real Estate Deal?
Double closing is a great option when the contract is not assignable. This situation usually happens when you purchase properties off MLS, properties owned by government entities, or bank-owned properties.
You should double close a real estate deal only when you have access to the funds and are sure about making a good profit from the deal.
Are you looking for the best transactional funding to double close a hot real estate deal? DoubleClose.com can get you funds, and there are no minimum or maximum limits. Tell us about your sale to get the cash you need.