Comments on: How to Close REO Wholesale Deals (Part 1 of 5)

By: Stephen tangwa

Stephen tangwa — Wed, 13 Jul 2011 20:58:15 +0000

Hi Steph i really love sisimultaneous closing the way escribe it. My question is whether i Will to let the end buyer know what i will make out of this deal since they are supplying the funds for both closings. Or rather can the end buyer demand to know how much the wholesaler is getting from the transaction? How do you handle this?

By: Ayana

Ayana — Wed, 02 Mar 2011 14:13:20 +0000

Hey Steph,

What banks do and don’t do double closings?

By: Chris

Chris — Mon, 23 Aug 2010 15:22:04 +0000

Hey Sam, I do all my deals with Fidelity National Title here in the Central Valley. They’ll do almost anything I ask!!!

By: giocco

giocco — Sun, 22 Aug 2010 19:11:02 +0000

Hey John
Are you buying scratched and dented notes?

By: John Delva

John Delva — Sat, 21 Aug 2010 21:20:05 +0000

Well, having to say real estate transaction deals are always complicated and taking forever to finalizing and closing a deal, sometime that creates a lot of anxiety and panic attact to walk out. Now I am doing my real estate business deals in different way like buying the real estate notes instead to get your way out faster.

By: Stephani

Stephani — Sat, 21 Aug 2010 14:58:01 +0000

Hi Giocco,

I always sell my deals at a net price to me, which means
that my buyer pays all closing costs on the B-C transaction.
Most of my deals are in the 40k and under price range, so
it usually ends up costing the end buyer around 1k (give or take)
in closing fees.

On the A-B side, the bank usually pays the majority of the closing
costs (title insurance, transfer tax, etc), so I usually only end up
having to pay around $500-$600 (give or take) in closing fees for
both transactions.

If you’re in an area where closing fess are much higher, you might consider
looking into using a land trust or LLC to wholesale your deals. Either that,
or you just have to make sure to take those fees into consideration when you’re
making your offers, ie: make them lower.

Hope that helps,
Steph

By: giocco

giocco — Fri, 20 Aug 2010 21:11:12 +0000

Hi Steph,
How do you handle the double set of closing cost in a back to back or in a doubleclosing. I’m in PA and only the transfer tax here is 3%? for instance in a $100,000 you will have to pay $3000 0n the first transaction and if you sold it for $ 115,000.00 you will have to pay another $3450, that is$ 6,450 just in transfer tax only?????
I’m a short sale investor and what I do is I negotiate with the lender(Bank) that they will pay all closing cost but title insurance and I never purchase a title insurance anyways because I hold it just for a few min.So No Closing on A-B to me

By: Chris

Chris — Tue, 15 Dec 2009 05:15:30 +0000

Just look in the phone book and start calling the title companies and asking them, you may have to explain in detail. I would suggest trying to talk to an actual title agent, their receptionists don’t know Jack.

By: Stephani Davis

Stephani Davis — Fri, 11 Dec 2009 14:35:07 +0000

Hi Sam,

I hate to say there aren’t any, but I haven’t come across anyone yet from CA who has been able to find a title co who will do a simultaneous closing.

You will most likely have to use one of the other closing strategies that I talk about in the other articles..

Steph

By: Sam P

Sam P — Fri, 11 Dec 2009 08:54:20 +0000

steph

you know of any title companies in northern california that do these type of closings?

By: Dwight

Dwight — Thu, 08 Oct 2009 21:01:15 +0000

I thought you tell the listing agent to have the closing docs emailed to you and have your title company do a courtesy closing for them and close your deal. So wouldnt your title company be doing the 1st and second deed?

I found a company that ONLY closes on shortsales and REO’s with investors and end buyers. The guy said you have to let the lender know whats going on otherwise it becomes fruad. Now i think that may just be with shortsales. He sent me a document from Freddie Mac or Fannie Mae about it. I thought it would make it harder to do the deal but he says no. any ideas? He’s out of state from me but they close nation wide

By: Stephani Davis

Stephani Davis — Thu, 08 Oct 2009 20:35:45 +0000

The title company handling the courtesy close is only getting the docs signed for the A-B sale. Once those are executed, they FedEx them back to the bank’s title co, and the bank’s title co is responsible for recording the deed for the A-B.

My title co won’t do a simul for a short sale, just for REO deals. My attorney’s explanation is that when doing a simul close for an REO, the bank is being represented by their own title co, therefore, my title co has no fiduciary responsibility to the bank and is not required to disclose the details of the transaction.

If you can’t find a title co who will do a simul close, you can always do a double instead and use transactional funding. Just make sure to account for the added fees when you make your offers.

Easy, Peasey, Japanesey.

Steph