Double Closing / Simultaneous Closing sales techniques?

Question

Hey all, first timer here, working to secure a home under contract, in order to initiate a sale through transactional funding, or a double closing.

What I'm trying to figure out is how to actually find a second buyer? How am I supposed to sell a home I have under contract if I can't exactly walk the next buyer through the home? How do you actually find, and sell a home you have under contract to someone else?

Do real estate investors go and hire real estate agents to sell a house they don't fully own yet? I feel there's a huge piece of this puzzle missing, from an new investor standpoint.

Shari Peterson · Answer

There are a few reasons people do a double closing versus an assignment.

1) The seller that won't accept an offer from "Joe Buyer and/or Assigns". Typically if you are buying a Short Sale or REO, the Seller will not accept a contract that involves an assignment.

2) You don't want to  reveal to the C Buyer the amount of profit you are making. I've seen tons of deals fall apart because the B Buyer wants more than the typical $3,000 - $8,000 profit and the C Buyer refuses to sign the contract because they think the B Buyer is "making too much money".

For this reason people double close and use Transactional Funding for the cash to close. They will make more profit even after paying the Transactional Funding fees.

Curt Davis · Answer

You can only sell to investors who are cash buyers as if a buyer wanted to use a conventional lender you don't legally own the home.

You take a lot of pics, make the contract contingent on interior inspection only with an accepted contract.  This will minimize everyone wanting to see it.

Good luck

Laura Renner · Answer

Good to hear.  I will be in touch.

Shari Peterson · Answer

Yes we do @Laura Renner . Let me know how I can help you.

Laura Renner · Answer

@Shari Peterson does your company fund in the state of Florida?

Lisa Bryant · Answer

That makes sense. I have done some reading on the subject.  And I recalled that one of the main reasons to double close is just as you stated above. Valuable...

Learn, Apply, Produce!

Ted Akers · Answer

You can also require in your purchase contract that you be allowed to bring partners, associates, contractors, inspectors etc to the property with reasonable notice to the homeowner at which time you could show to a prospective buyer (preferably with the homeowner not there or with the buyer prepped to not deal directly with the homeowner).

Double Closing / Simultaneous Closing sales techniques?

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