How to avoid double closing?

This is my first topic on biggerpockets. Excellent source of information. I'm jumping feet first in wholesale real estate. Meeting with realtors, finding properties (outside of internet listings, I've found a few that aren't listed yet, and will be checking them out tomorrow actually), and arming myself with raw knowledge. I have some goals I'd like to meet and fairly quickly at that. One thing I haven't quite got a solid grasp of...

How do you AVOID double closing? I've been reading mixed messages about this (as with just about everything to be honest). For some, avoid like the plague, for others, you have no choice.

It seems pretty easy to avoid this when doing an assignment: just have the buyer pay me and the seller in two separate transactions. However, from what I'm gathering, it's growing more difficult to find deals that allow assignment of contracts.

So, when you're NOT allowed to assign a contract, how do you AVOID doing a double closing?

I've heard of people using trusts to do this, but I'm not 100% clear on how that would work.

Any and all help and advice would be appreciate.

I have an ambitious goal of closing my first deal in the next 4 weeks.

Greg P.

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Jan 13, 06:02 PM

Have the buyer meet you at the closing office (your title company) and bring a QCD with you. Have the buyer bring in the funds in a cashiers check then QCD the deed over at closing while you are signing the docs from the bank. Or, have the title company do this all for you. Basically quit claim the deed over to the buyer. IF you dont have cash to bring to closing, then you may need transactional funding, but you do have to bring funds to the table. If you do have funds, then it's not a big deal.

Mikel Graham

Real Estate Investor · Champaign, Illinois

25 posts
51 influence

Jan 13, 06:38 PM

Hi Greg,

Thanks for the quick reply. I really appreciate that. I just have a few clarification question. Bear with me as I am still new to this and I'm an engineer at heart, so this isn't exactly my typical line of thinking.

If I'm dealing with REOs, do I need a title company? If I don't, then that returns me to the original question (how do I avoid a double closing?).

The purpose of doing a title search would be pointless since it would be an REO property (or am I missing something here?).

If this is completely left-field, please help me understand.

Greg P.

593 posts
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Jan 13, 07:18 PM

Yes, you will need a title company. Find a good title company that is investor friendly. Yes, you don't have to do the title searching because that's what the title company does. Remember, there is always a solution and a way to get things done in this business if you think hard enough about it. Keep asking questions if you have more.

Mikel Graham

Real Estate Investor · Champaign, Illinois

25 posts
51 influence

Jan 14, 12:49 PM

Hmm ok. Why is a title search necessary when dealing with REO? I can understand if the property was in a person's name (not a banks). A little confused here.

Further, what purpose does a title company serve aside from the title search?

Kenneth Stillwell

Wholesaler · Tampa, Florida

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1 award
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Jan 14, 07:27 PM

Call around and ask if the title company does doubles. A good title company will handle it legally with no problem. You NEED a good title company, don't kid yourself here. Focus on what's important about wholesaling (buyers) and let the professionals handle the legal stuff. Good title company will help you with your contracts which is pretty important too...

Greg P.

593 posts
6 awards
62 influence

Jan 14, 07:50 PM

Because banks screw up and try to put assessments on your bill. Title company is probably one of your most important team members. Do your homework and find a good one.

Michael Quarles

Real Estate Investor · Bakersfield, California

Pro

851 posts
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Jan 14, 07:50 PM

To your question of how to avoid double closings. Trust then assign beneficial interests or Corp then sell the shares. other then that everything else is a double close. Even the mention QCD is a double. It has it's issues however if you don't insure the transaction.

As for why title insurance on REOs. To insure the trustee deed was recorded after meeting all legal requiremens.

With that said title insurance isn't a requirement it's a request. It's just difficult to resell without a chain of insurance.

Michael Quarles, Yellow Letter Mail
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