The world of double closing can be a bit tricky, and it’s natural to have some questions. Here in our FAQ section, we’re all about untangling the complexity. Get straightforward answers to the most common queries, making the double-closing process much simpler.
1. Is It Common for Title Companies to Handle Double Closings?
Some title companies will handle double closing, but since these investment deals differ from regular closing, it’s important to team up with a title company that knows the process. Look for one that’s friendly to investors or link up with a seasoned closing attorney.
Not every title company is on board with double closings. Some might not know how to do it or aren’t interested in these deals. Make sure you talk to multiple title companies, ask questions, and get advice from other investors.
2. How Do You Get the Cash for Double Closing?
There are two ways investors usually get the funding.
First, the end buyer chips in the money to buy the property (B→C), and the wholesaler or investor uses that cash to fund the first closing at the same time (A→B). Now, not all states allow for this method. If that’s the case, you can use your money or choose transactional funding.
Transactional funding is when a lender loans the whole deal amount to the investor to cover the A→B purchase. This way, the investor doesn’t have to use their own money. However, the lender usually charges a percentage of the loan and an origination fee. Also, these lenders want their money back fast. Double close has to happen quickly, usually within hours or one to two business days, for this funding plan to work.
3. Is Double Closing Illegal?
In many states, double closing is completely legal. But each state has its own rules for how to do it. It’s also a good idea for investors to team up with a local real estate attorney who knows the specifics of their state. They’ll help you stay in the clear and on top of any new rules.
4. Can You Double Close Without Money?
It depends on where you’re at and whether escrow funding is on the table. If escrow funding is not an option in your state, the investor must bring their own money. But if you’d rather not dip into your own pockets, you can explore options like transactional or flash funds.
Are You Looking for Cash to Seal the Deal in Your City?
Contact DoubleClose.com for the best transactional funding. Forget about credit checks, income requirements, or annoying applications. With DoubleClose.com, you have the quickest, most budget-friendly way to get things rolling on your deal. Let’s make those real estate dreams happen!