How to Close REO Wholesale Deals (Part 3 of 5): The Double Closing

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This article is part 3 in a 5 part series, where I will be explaining the various methods available for closing REO wholesale deals, and getting around the “No Assignment” clause that most banks include in their addenda.

In part one of this series, I talked about simultaneous closings, and part two I discussed using a quitclaim deed to wholesale your REO properties.

Today I will be focusing on doing double closings.

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What is a Double Closing?

Just like a simultaneous closing, when doing a double closing, there will be two separate transactions taking place- the A-B transaction where you are buying the property from the bank, and the B-C transaction where you are selling the same property to your end buyer.

If you’ll remember from my first article- when doing a simultaneous closing, you are using your buyer’s funds to fund both the A-B and the B-C transaction. Since many title companies will not perform simultaneous closings, you can elect to do a double closing instead.  In this case, you will have to bring your own funds to the closing table to fund the A-B purchase.

If you do not have the funds available to purchase the property, you can borrow the money from a transactional funding source.  There is no credit check or income verification required when you are using a transactional lender- the only stipulation is that you must have an end buyer lined up to purchase the property immediately after you purchase it from the bank.  Transactional lenders will not fund your deal unless your end buyer is in place and ready to purchase the property.

If you decide to close your REO wholesale deals by doing a double close and using transactional funding, keep in mind that there will be fees involved when borrowing the money, so be sure to factor that in when you are formulating your offer.

Next week I will be bringing you part four of the series, so stay tuned..

About Author

Formerly a bartender, Steph Davis is now a full time wholesaler in Tampa, FL. If you'd like to get an idea of what it's really like out there in the trenches, head on over to her blog:!


  1. wow…all this time i was thinking double and simultaneous close was one in the same…this site and your help Steph have made huge differences with my leads….thanks again

    Just need to make sure I do the math properly to factor in cost of money,my fee, and a healthy deal for my buyer.hhmmm

    Flippin A,

    Mike S.

  2. great series! at some point, can you please share with us what is your order of preference for these techniques, in case you’re not already doing it in that order? So far, my own preferences would be exactly the order you have them in, with 1) simultaneous cose, then 2) the quitclaim (where you still have only one closing), then 3) the double close.

  3. Hi Steph! I unerstand all that you are explaining in these articles. the thing is that when I get a house under contact, the bank wants to use their own title company, so when you call their title company andexplain that you want to purchase the property and close with another buyer immediately after,they have no idea what i am talkng about. I guess my question is are you closing the A-B sae using the banks title company, and then going over to your own title company the same day and closing the B-C sale?? It never fails that each time I try to contact the banks’s title cmpany they tell me that closng both deals back t back can not happen. So I seem to be stuck in this rut of never getting it closed due to this situation. IS there a way around this? By the way I am in Houston, Texas. thanks for always taking the time out to talk and answer my questions! I am trying to something different in 2011 have to get out of he rat race SOON! 🙂 thanks again!

  4. Hi Shawn,

    I don’t ever tell the bank’s title company that I am flipping the property. I just have them send all of the title work over to my title company once it’s ready and have my title company do a “courtesy closing” which basically means that they will get all of the closing docs signed, collect the money for the purchase, and then send it all back to the bank’s title company. We close both the A-B and the B-C sale at my title company.

    Hope that helps,

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