Saw my first real estate property, how does a double close work ?

Question

So yesterday, for the first time i had an appointment with the owner of the property, i went in and he showed me all of the rooms. I honestly like what i saw. Now how does a double close work if i found a cash buyer and i wanted to flip it ?

By the way, the mortgage is paid off, couldn't i seek owner financing as an other option ?

Adam Johns · Answer

@Eli Hood I would definitely talk to a title company first. You may be required to have the funds to close your side of the transaction (the A to B, if seller is A, you're B and end buyer is C) seperate from the B to C funds. If that's the case, you'll have to get a transactional loan.

Even if you don't need to have the transactional funds in place, you'll need to verify who the certified checks should be made out to and know that the title company is comfortable doing a double close. Better to have the title company explain it to you step-by-step so that you know what to tell your buyer and seller without sounding like you're guessing.

If they stand to make closing costs x2 off of you (and the promise of more), they shouldn't have too much of a problem explaining the process to you.

Eli Hood · Answer

So my cash buyer gives me the money and i use that money to buy the property from the original seller, and then the cash buyer.now owns the property. <-Is this correct ? I know i get a cut somewhere along the lines.

Travis Daggett · Answer

A double close just means that you get paid out of the proceeds from your buyer after the seller gets their funds. The most important part of the puzzle is a title company that has experience w/ simultaneous closings.

Sure, see if they're open to owner financing.

Hope that helps!