Bridge loan in lieu of double close?

[Russell Ponce]

Any wholesalers out there ever used some sort of bridge loan in order to not disclose your profit? I personally haven't hit a home run deal yet but in my area they've made double closes virtually illegal.

[Michelle White]

Hi Russell,

I own a title company in Chicago. Re double closings .. It's not so much that they are illegal, but it has to do with how each portion is funded. For example, the original purchase "A" must be closed and funded before you can move on. Purchase "C" (to the end buyer) cannot fund "A". ("B", of course, is the middleman in the deal). So, yes, the rates are a bit higher, because you are actually performing two different closings I think that transactional funding is a good idea. . Hope this helps!