How to Double Close Legally, Simultaneous and Closing Double Closings for Real Estate Investors and Wholesalers Explained.

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How to Double Closings and Simultaneous Closings for Real Estate Investors and Wholesalers.

Most people don’t know that you can buy and sell a house in less than an hour.  Every real estate investor should know the basics of double closings and simultaneous closings even if you never do one.  Today we’ll talk about all the basics of double closings, when to do them, real life example and how to double close legally whilst staying out of trouble and taking care of your people.

First of all, THANK YOU again for making this channel the number one channel for Indiana real estate on YouTube according google analytics and SocialBlade info for BigReia.com. 

Double Closings for Real Estate Investors.

Are you a real estate investor, wholesaler or just a curious real estate nerd who wants to know what a double closing is and how to double close real estate deals? If so then you’re in the right place, I’m Mandy from BigReia.com and today you’ll learn:

What is a double closing?

What are the legal issues around double closings?

How to double close correctly and the BIG secret about why you never have to do a double closing?

Yes, you NEVER, ever have to do a double closing, they are totally unnecessary although you should  still know all about them and how they work.  Double closings are a very helpful tool to know about so that you can help real estate investors make better decisions.

So let’s get started.

For most people trying to get into real estate or real estate wholesaling feels like trying to solve a Rubik’s cube blindfolded. It seems like a realm packed with challenges that can be as maddening as a squirrel in a nut factory. I’ve been asking many new and experienced investors…

… what challenges they’ve been having and…

The answers are the same and they start with motivated sellers.

Motivated sellers is not the biggest problem that you have

Motivated seller leads is NOT the problem, it is always your business building skill…

But if you don’t know what you’re doing, and most people don’t, then finding motivated sellers is like hunting unicorns, they’re so rare and elusive they might as well not exist. Scouring neighborhoods, making cold calls, placing ads – it’s like a never-ending scavenger hunt.

And then even when you spot one, convincing them to sell can be tougher than wrestling a greased pig!

Then there’s dealing with contracts. Oh, the joy.  They’re like a bad riddle wrapped in a mystery, inside an enigma. And let’s not forget the juggling act of managing timelines, inspections, title companies, insurance and closing dates. It’s like trying to herd feral cats in heat during a thunderstorm.

This is why so many people that get into real estate never manage to do their first deal.

This is also why most people never make any serious money.

This is also why you should be going through our epic free training at BigReia.com on 100 ways to find motivated sellers for free, because once you do this right you’ll have endless deals. So this difficulty is what blocks most investors.

Make sure you go through our free training on 100 FREE ways to find motivated seller leads.

100 ways to get free motivated sellers

Over 100 FREE ways to find motivated sellers – check out that training.

This is also why when you get good at this you can make a solid $10,000 – $30,000 a month wholesaling properties because investors are hungry for somebody who can bring them good deals. To be a good wholesaler you need to know all about double closings and why you never need to do them.

“What in tarnation is a double closing, you ask?”

Well, gather round folks, it’s time to delve into the nitty-gritty of this real estate wonder.

Double closings, also sometimes called a simultaneous closing, is a bit like a swift, two-step dance in the world of real estate wholesaling. Picture this: you’re at a bustling market, and you spot a gorgeous antique lamp for a steal. 

You know a buddy who’d pay top dollar for it, but you don’t have the funds to buy it right off.

So, you strike a deal with the seller to buy the lamp later in the day, then, you arrange to sell it to your buddy right after. You’re essentially buying and selling the lamp on the same day without ever really owning it. That, my friends, is the essence of wholesaling and double closing.

In real estate terms, the guy you buy the lamp from is the homeowner, you’re the wholesaler, the lamp is the property, and your buddy is your end buyer.  You sign a contract with a property owner to purchase a property, then, almost simultaneously, you sell that property to an end buyer.

The key here is that these two transactions happen back-to-back, like a well-choreographed dance.

Now, why would a wholesaler want to do this two-step dance?

These are the three parties needed for double closing.

Three parties in a double closing

So those are the three parties needed for double closings.

The main reason that investors go to this trouble and pay two sets of closing costs and jump through all of these hoops is because they want to hide their profit from the seller and investor. This hiding, however, is only temporary and eventually everybody will know what you paid and what you made…

So this is a bad reason to do it.

The bigger reason why you never need to do double closings is because you should build such a tight relationship with your sellers, investors and everybody else that they aren’t bothered by how much you made because they are so grateful for the world class service that you provide.

That is why you never need to do double closings.

I have done about 7 double closing deals but they were all because of weird contract issues and even then they were unnecessary, I’ve never done a double closing because I was trying to hide my profit, and Rachel and I just had an assignment fee of over $50,000 and the investor had no problem with it.

Why?

Because we took such great care of him. When you position yourself correctly you should never have this be an issue. Just don’t be an LC about it. Take care of your people, don’t be a dickhead.  Nobody likes a dickhead.

That being said you should still know how a double closing works.

Sometimes it can help you sidestep sticky situations by keeping the two transactions separate, it isn’t the best way but sometimes you’ll be dealing with a realtor or banker whose body temperature surpasses their IQ so it is good to know how double closings work just in case.

“Alright, y’all ready to learn how to double close like a pro?”

How to do a double closing
Three steps to closing

So here is how you can double close with ease.

Let’s break it down into simple, tasty bites. Picture this: you’re at the county fair, and you’ve just spotted the biggest, juiciest apple pie you’ve ever seen. That apple pie is your real estate deal, and you’re about to take a big ol’ bite.  Here’s how to do a double closing in three easy steps.

Step one is your contract with the seller.

In other videos and training at BigReia.com we have explained how to find, attract and convert motivated sellers so I won’t go into that here. For now you have done the work and you signed a contract with your seller that is the first step.  Let’s say your contract price with the seller is for $40,000.

Step two is the contract with your investor buyer.

We have made other videos and training on how to build your cash buyer list, how to communicate with them and how to train them to jump all over your deals. So let’s say your investor wants to buy the property for $50,000.

That is $10,000 more than your price with the seller which is $40,000.

Now step three is going to your title company.

First of all your investor could just pay you $10,000 and then step in your place and close the deal, but that would be an assignment and not a double close and today we are talking about double closings. So in order to do double closings you will need to find a good title company.

We have made several videos and training on title companies elsewhere so you can search for that at BigReia.com, check out our People Page and if you still have issues you can email or text me.  We also have a list of every possible contact that you’ll ever need to build your real estate business.

This list includes investor friendly title companies, you can get that list for free:

Just go to our People Page at BigReia.com/People.

Double closing process

Here are the three main ways to double close.

So now with your title company there are three ways that you can do a double closing let’s talk about each one. To make this simple we will call the closing between you and the seller A to B and the closing between you and the investor B to C.

Double closing method number one: Use your own money.

You use your own money and close A to B for $40,000 and then you do the second closing immediately after, this may be the same day or even the same hour or in some areas they may require you to wait longer but you will do the second close immediately and in this case you used your own cash.

This method requires that you have at least $40,000 cash plus the closing costs to cover both the closings or you have the seller and investor pay the closing costs, that is what we normally do.

Double closing method number two: Transactional Funding.

You borrow money for the A to B closing. This money is called transactional funding or flash close funds. You will pay extra for it but this allows you to do the first closing with no money out of pocket. So you pay the seller the $40,000 and then you close with the investor and get your $50,000.

You make $10,000 minus the cost of the transaction funding which is usually 1 to 3%.  So if you borrow $100,000 it would cost you $1,000 to $3,000 typically and they usually have a minimum so it would cost at least $1,000 to borrow anything.

Need some transaction funding help?

For a list of transaction funding people and hard money people that we use and recommend, again I would suggest that you check out our People Page at BigReia.com/People.

Double closing method number three: Single Source Funding.

This is something called single source funding and it is where you use your investor’s money from the A to C closing to fund your first closing on the A to B transaction. This requires a title company to let the investor sign and pay for the property before you have closed and paid for the property.

You need a well trained title company to do this.

So that’s the third way of doing a double closing.

Those are the main three ways to double close.

Are double closings illegal, unethical or wrong?

Who cares, as long as it is fun, live your life and stop being such a pu**y.

Just kidding, are double closings illegal?

No, it is just really important that you are totally transparent.

Make sure that everybody knows what is happening. You want everything to be well documented and handled by your title company and their attorney so you know that it is all being done legally and in accordance to your specific laws and regulations.

Now that you know how a double closing works you know what to ask your title company and how to stay out of trouble so that you don’t end up in prison as somebody’s bitch. Look, if you go to prison it should be for something serious because if you get locked up for some stupid sh** like double closings…

… you’ll get tossed up for sure.

Alright, let’s take a breather and recap what we’ve learned here today about double closings.

Single Source Funding
Double Closing legality

Summary of how real estate investors can double close legally.

Firstly, we’ve discovered that double closings are not necessary and you don’t need to do them to keep your profits secret and it won’t work anyway.  

Second you learned the three steps in double closings and three different ways to do double closings and now you know how to do them with no money out of your pocket.  

Third you know how to stay legal by making sure you screen your title company correctly and ask the right questions.  Real estate wholesalers and investors must have great relationships with their title company in order to do deals like clockwork.

So that covers what a double closing is, if they are legal, how to do them, where to find a list of people that you need and why you never have to do a double closing unless you really want to.

Social Mobility training at BigReia.com

So that’s how double closing and simultaneous closings work.

Again you can use our People Page here for a full list of every contact you’ll ever need to build your real estate business.  Also we have a list of all the paperwork and contracts that we use and we add to this list regularly so you can download anything for free and feel free to send me feedback or requests.

In the meantime you can go through the previous Elevators, classes and other FREE training material and use it to grow your impact before you check out.  Use our stuff to both create passive income AND buy small businesses zero down, follow the steps, be kind, help others and you’ll…

Make the Universe Smile.

~ Indy Anna and Rachel and Eve
Love (at) BigReia.com
 (YES that’s my actual Direct Line and I really do answer lol, so please text me first Thx!)

Here’s that video again, I’ll put it below.

Want more (brilliantly) EPIC posts of real estate investing and bidness badasssery...?

There is a great post and class on the 38 Ways to Buy Apartment Buildings Zero Down with Pet Policies, and here are some other helpful and EPIC posts... for starters as a real estate investor if you ever want to build a business that makes you 30 grand a month then you MUST do this...

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There’s also another great class on how to buy apartment buildings zero down that you can check out as well.  This relates directly to growing income on rental properties.  Speaking of which make sure to check out our epic page on 14 ways to avoid tenants from hell.  Also we have a great post on how to make build a "six figure a month" real estate wholesaling business.

Also here is a post on how I did this and I flipped a house off Zillow for 30.  Also you can check out the post on five steps to flip a house right off Zillow for 40 grand.  You can also check out our other epic post on 57 ways to make money with vacant land.

Here’s another post on how a Hero flipped a house off Zillow and made 40k in a few weeks while he was learning to read.  Also you want to check our post on the EPIC $25 million letter and the copy writing lessons for real estate investors, you'll love it.  Also you can see how ONE letter is making me $9,000 a month.  Also you can check out the post on 101 FREE places to advertise your houses.

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Also we have some great posts on 30 ways to buy real estate with no money down.  That is a two part series so make sure to watch the second part on the 30 ways to buy real estate zero down and with no loans or credit.  I also get questions about our "Epic Flipping" and how to turn $1 into over $25,000 by flipping ordinary items for exponentially high ROI.

And don’t forget our EPIC page on 100 FREE ways to find motivated sellers, we are making the number one page in the world on FREE ways of finding motivated sellers.  Also check out how I find motivated sellers from code violation properties, and also how I make over $1,500 a week giving investors access to that list. 

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When I first go started I thought wouldn't it be great if somebody put together ONE list of every possible contact that I would ever need to build a passive income with Indiana real estate - or any Midwest real estate?  Well that's exaclty what I did with our “People Page” here it is:

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Stay here at BigReia.com and you’ll become allergic to being an LC and addicted to improving the world and creating Income Ascension and Social Mobility for you and yours… 

Thanks so much!  = )

Make the Universe Smile.

~ Indy Anna
Love (at) BigReia.com
(YES that's my actual Direct Line and I really do answer lol, so please text me first Thx!)

Free Comic Book Reveals:

100 FREE ways to find motivated sellers.

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