Anyone successfully doing double closings?

Question

The one thing about wholesaling properties that I am skeptical about is the ability to successfully do double escrows in this market place. I'm curious to know if any of you are actively doing them. If so please give as many details as you'd care to share. For instance, short sale or no? How did you find the title company? Did you use transactional funding? Did your end-buyer use cash or financing?

Thanks for any feedback.

Stephen D. · Answer

Closing ABC's everyday - nationwide. Interestingly enough with C lenders as well.

Ted Akers · Answer

Double or back-to-back closings are being done frequently with Transactional Funding for short sale and REO flips.  Many large title companies will not do them, but there are likely several mid-sized to smaller ones in your market that are comfortable with them.  Check with your local Real Estate Investors Association for suggestions.  Regarding your buyers funding, most wholesale conventional mortgage lenders will require 90 days seasoning, some longer.  However, it can be hit or miss depending on the underwiter - same lender in one location says yes and in another location says no without seasoning.  You can substantially improve your program successs by finding those that do not require seasoning.  Your greatest liklihood is with portfolio lenders (not many left now), community banks, or credit unions.  I have somewhat of a list if you would like to contact me.
To your success,

Justin S. · Answer

Double closings can be done with conventional lenders, you just need to find one that does not require seasoning and disclose to them what you are doing.

Ryan Webber · Answer

Tradtional lenders (FHA, VA, and Conventional) care if the title is seasoned.  Commercial and private lenders don't normally care, which is why you wholesale to cash or cash equivalent (Commercial loans,lines of credit, or hard money) buyers.

Though I don't work with it much in wholesaling, my understanding is that most conventional lenders will allow assignments if the entire assignment is paid outside of the note and the buyer still has enough cash reserves to qualify, which is not going to be feasible 99% of the time.

Shane Bryan · Answer

Some lenders require the title to be aged before they will finance a property. I would think it would be easier to assign the purchase contract. Unless you stand to make a very large amount.

Shane

Andrew Massaro · Answer

You can basically do whatever you want in a cash deal.  YOu can double-close or assign.  It's financing that messes everything up...

Ryan Webber · Answer

I did one last week.  No short sale, cash buyer.  I've done quite a bit of business with this agent over the years, but initially I found them through another investor who recommended a particular agent and I called her and asked her if she did double closings.  I did not use transactional funding and I never have.

Rich Weese · Answer

Check previous threads. Will Barnard and I closed on several. Read the previous BP threads. Yes, it is being done. Rich