BiggerPockets

Most people here differentiate between "simultaneous" closings and "back-to-back" closings...

Simultaneous closings are when you use your end-buyer's funds to close the initial transaction, and both transactions are concluded at the same table.

Back-to-back closings are when you close the first transaction with your own cash (or borrowed funds) and then hold a separate closing immediately afterwords with the end-buyer.

While simultaneous closings are not illegal (at least I've never seen any evidence that they are illegal), as far as I know, there aren't any title companies or closing attorneys who will do them anymore.

Back-to-back closings are still the most popular way (I assume) of wholesaling deals, especially those that you can assign (like REO or HUD properties). You shouldn't have too much difficulty finding a closer to do back-to-back closings.

Thanks for the update, Jimmy! I spoke to two different Ticor Title Co. in the So. Oregon region. Both places said it was illegal in Oregon to do back-to-back closings, but that it wasn't in other states. However, they didn't give a specific bill/legislation. She just said, "Due to our underwriting guidelines, state statutes, and depending on the actual lien holder, a simultaneous flip is not allowed." Is there anyway I can contest this information if they're lying, or look up the information myself? Please let me know.

Try First American in Klamath Falls. Adrien Fleek is the person I use there. They are investor friendly.

My guess is that its the terminilogy you guys are using when you communicate with the title company. Back to back , simultaneous etc...

If its two completely seperate and stand alone transactions it should never be a problem. Unless the seller is a bank and puts some kind of deed restriction in the way?

Ask to speak to the owner of you get static. Also ask them if you can sell a house through them after you buy it. Of course they will say yes. Then just say ok I will be buying at 10am and selling at 3pm. Ok?

I fund transactions nationwide but not yet in Oregon. I get the same questions (if back to backs are illegal) from different states and heck, even in my state of NJ.

My 2 cents: Most people just say no because they don't know enough about the topic. In your case where the title company said no due to underwriting guidelines, I would challenge that and speak to them as JScott recommended.

I have a closing today where the title company said that they have to disclose both AB and BC HUDs to BOTH lenders (shortsale lender and C lender). However, after the B investor attorney told them and showed them that B investor disclosed his intent in the contract to resell for a profit, the title company withdrew their request.

Perhaps this may be where the title company is coming from.

If they're still adamant in their position, try some other title company as SolidReturn suggested.

Lastly, keep shopping for an investor friendly professional (atty, title company, ...). This actually works if you persevere.

Hope this helps,
Duane.

Don't confuse back to back and simultaneous closings. They are both back to back, however one is dry funding (a-b closes with money from b-c) and the other is wet funding (each closes with independent funding).

What amazes me is title companies that say they don't do that, but in the next room they are closing 1031 exchanges all day long which are just back to back closings.

I don't know a single state where back to back closings are illegal. If anyone can cite a single statute in any state I would like to hear it. I can't tell you how many times I've heard something I was doing was illegal and not once was the person saying it able to back that statement up, even lawyers.

Policies and practices are not law. Customs are not law. If I legally buy a house, no state says I cannot sell it legally one minute later if I want.

Of course getting people like lenders to go along with it might hamper things but if I bought a house for cash now, and sold it for cash in 1 minute, show me a law that I have broken anywhere in the USA.