Double Close on an Apartment Building

6 Replies

Does anyone know if the double closing would apply to a bigger deal? 125 unit apartment building? I have a buyer who is willing to make an offer on a 13MM apartment building and I know a wholesaler has this under contract. (I don’t have this under contract) The investor is willing to make an offer. 

I have reached our to several Syndicators/ Attorneys and no one seems to know the answer to this. Is this even possible?

Thanks in advance for your time,
Joanna

@Joanna Corona a double close on commercial and multifamily is not really readable unless the end buyer is all cash.

 Sounds like what you need to do is structure a joint venture with the wholesaler where he shares the fee with you to bring the buyer or have an agreement with your buyer to pay you a fee for introducing him to the wholesaler. 

You do not want to be a daisy chain.

@Greg Dickerson  Thank you for clarifying! I contacted so many people and no one had an answer for me.

I should have posted on here sooner!

I am currently in the process of getting the buyer to pay me a fee for introducing him to the wholesaler. But I will now do my research on how to structure a joint venture with the wholesaler since he does have many deals!  

It is possible but the intermediary buyer has to close with all cash. I know of a smaller deal ($3M) that went like that with the closings being a week apart. The intermediary buyer took out a private loan for the entire sum for something like 2% interest.