Double Escrow - Legal ?

6 Replies

I have been digging into the concept of a 'double escrow', or 'double closing' as a way to get into investing using little to no personal funds. I have seen opinions from both sides of the aisle, but what I really want to know is if this is legal and if escrow companies are willing to do this for you. Any advice?

Originally posted by @Meghan Padron:

I have been digging into the concept of a 'double escrow', or 'double closing' as a way to get into investing using little to no personal funds. I have seen opinions from both sides of the aisle, but what I really want to know is if this is legal and if escrow companies are willing to do this for you. Any advice?

 Totally legal and done all the time. It just costs more because you have two closings instead of one. Assignments are less expensive and sometimes accomplish the same thing depending on what your goal is. Watch for tax ramifications in each instance, they may differ a bit.

I assume you are asking about a “dry” closing....where you as the first buyer bring no money, using the money from the second buyer to fund your purchase.....in most places title companies will no longer do this, in some places yes.

Originally posted by @Meghan Padron:

@Jay Hinrichs I was reading that you can either use a double escrow or assignment agreement when trying to move the house from A to C without using any of B's funds. If you used transactional funding you would not need the other two right?

correct transactional funder puts the money into your escrow for you.. so you have funds to close and since you have it resold it usually happens same day..