Double closing, otherwise known as simultaneous closing or back-to-back closing, has become popular recently in the real estate industry.
Using this approach, a real estate professional can make a good amount of money in a short period of time, but they must have a comprehensive understanding of the costs associated with the process.
In this blog, we’ll look at the various expenses associated with real estate double closings so you know what to expect before you try one of these out on your own.
Operational Fees
Of course, you’ll have to pay traditional closing costs, but there are also operational fees associated with double-close transactions. These are usually administrative fees that the title company or escrow agent charges for managing the complexities of the deal.
And if you’re looking for funds that’ll cover operational fees too, it’s best to reach out to a reliable transactional lender.
Pay Closing Costs For Both Transactions
Unlike in a traditional deal, where you only have to pay closing costs once, you’ll have to pay twice. After all, two transactions are taking place.
Closing costs typically include title insurance, recording fees, and escrow charges, but other expenses could be outlined in the purchase agreement.
You could, however, negotiate to have your end buyer pay all of your costs – this is a very common practice and only takes a little negotiating. *updated this section*
Financing Costs
If there’s a lender involved in the double-closing process, then the real estate wholesaler must account for the costs associated with loan origination and interest payment points, as well as other fees that are stipulated in the loan agreement.
DoubleClose.com is one of the best transactional funding lenders, and they can get you the money you need to close a deal, and without charging a fee up front. Essentially, they only charge if your deal closes successfully.
Legal & Compliance Costs
Of course, to do a double-close deal right, you need to make sure the law is followed. And for that reason, it’s best to consult an attorney, especially starting out. *updated this section*
But this will be money well spent, so long as you hire the right professional. Lawyers will charge for consultations, contract drafting, etc.
Final Thoughts
Real estate wholesalers must approach double closing with care, and they must be aware of all the associated costs.
But beyond that, they need to be able to communicate effectively, and they must ensure all relevant laws are abided by.
So if you’re a real estate wholesaler who’s been wondering: “Where can I get transactional funding near me,” then you need to get in touch with the fine folks at DoubleClose.com. They’ll help you take your real estate investing business to the next level!