Boston, MA · Member since 2017 · 4 posts · 0 votes
Looking for an attorney in Boston who understands assignment of contract and double closings. One lawyer I spoke with even said it's not legal to do a double close in MA!! Obviously not talking to the right people. Any insight or referrals are greatly appreciated. Thanks in advance for the help guys!
Lender · Tyngsboro, MA · Member since 2009 · 3k+ posts · 2k+ votes
8y
I suspect when you described a "double close" you were the B person in the middle as follows:
A seller
B you - buy from A and sell to C
C end buyer
If the way you described it to your attorney was using none of your own money to buy from A, (effectively using C's money for you to buy from A) then yes, he is right, you can't do that. You used to be able to, but no longer.
Now you must have your own money to buy from A before (10 minutes before) you sell to C. This is when the rise of Transactional funding came about, which means you borrow the money for 10 minutes. We do this regularly, although not as often as we used to, because the REO deals typically have deed restrictions that prevent it.
Google Brandy Schlesinger of Grugnale and Schlesinger or Alan Segal of Segal Law Office. Both of them are well versed in all creative techniques, and what you can and can't do.
Attorney · Santa Cruz, CA · Member since 2015 · 345 posts · 358 votes
8y
Hi Anthony,
Just want to give you ahead's up on the double closing and legality question. I am a real estate lawyer in CA and work with REI who do these all the time. The important distinction is that the 1st buyer (probably you) comes to the closing with all the money for the first purchase (closing). He/She closes and then immediately resells, 2nd closing (you sell to your buyers). The 2nd closing cannot happen before the 1st closing because there is nothing to sell before you actually own/close. The reason it would be illegal is, if you tried to do the 2nd closing first, then you are selling something you don't own, which is fraud.
When you find a lawyer who works with REI, she'll talk you through the steps. It all makes sense when you go through it slowly, step by step. The contracts and escrow instructions are very important. A question you should ask your new lawyer is whether she is familiar with writing these contracts. Once you have good contracts you can use them over and over again. So, please invest the thousands of dollars to get good contracts written at the beginning. They will save your butt when things go sideways.
Good luck with your lawyer search and real estate investing career!
Lender · Tyngsboro, MA · Member since 2009 · 3k+ posts · 2k+ votes
8y
I suspect when you described a "double close" you were the B person in the middle as follows:
A seller
B you - buy from A and sell to C
C end buyer
If the way you described it to your attorney was using none of your own money to buy from A, (effectively using C's money for you to buy from A) then yes, he is right, you can't do that. You used to be able to, but no longer.
Now you must have your own money to buy from A before (10 minutes before) you sell to C. This is when the rise of Transactional funding came about, which means you borrow the money for 10 minutes. We do this regularly, although not as often as we used to, because the REO deals typically have deed restrictions that prevent it.
Google Brandy Schlesinger of Grugnale and Schlesinger or Alan Segal of Segal Law Office. Both of them are well versed in all creative techniques, and what you can and can't do.
We typically fund 100% of purchase, plus all closing costs but the criteria for qualifying are very strict. I don't want to violate any rules, so if you want more info, connect with me directly, please.