Double Closing Title Company in Washington State

16 Replies

Hey guys, 

So I did some searching around the forums and couldn't find this answer. However, I did learn through my research that in WA state you cannot do a simultaneous closing but are allowed to do a double closing so that was a good golden nugget.

Basically, does anyone here have a good title company they would recommend? Preferably on the eastside in Bellevue, Newcastle, and Renton. My company is wholesaling, and developing real estate.

Thanks.

@Kim Martin I'm on the other side of the mountains so that wouldn't be a viable solution for me but I appreciate your input. If you know of any near me, please let me know. 

Most common would be to assign the contract. Some wholesalers will write offer in the name of an LLC and then sell LLC with its contractual rights and obligations. But that requires a bit more trust between parties. Assignment is generally simplest and best.

Double close, if doing correctly, means double excise tax.  Title transfers twice.  I have done them, it is expensive.  But, I am doing double close on Owner Finance transactions where I stay in the middle long term.

If you assign a P&S, it is one closing, cheaper.

Stewart Title, Old Republic, CW Title, all in Bellevue.  Call them and explain what you are doing and get their feedback.  They will probably not understand what you are trying to do, will say it is illegal, etc.  Just takes some talking to them. 

Average excise tax (transfer tax / stamp duty) in central WA is 1.7% each time as @Brian Fouts mentions.  Hold title for 1 minute and sell again?  3.4%.  In WA, we assign!   

You can do the assignment personally if you like. I usually utilize an LLC or my S-corp, but I don't sell the entity with it @Joe Kooner

@Brian Fouts Thanks for the input Brian, I appreciate it! I have sent a colleague request/PM.

@Steve Vaughan Ahhh gotcha Steve. Each state is a bit different regarding wholesaling and I think I'm beginning to understand that it is more beneficial to assign. But how do we keep the seller and end buyer from knowing how much you have made on the deal? (Will be using an LLC entity for all transactions, but I do not want to "assign" the LLC)

@Adrian Chu With this method, does the seller or buyer know what your margin is on the deal?

Originally posted by @Joe Kooner :

@Brian Fouts Thanks for the input Brian, I appreciate it! I have sent a colleague request/PM.

@Steve Vaughan Ahhh gotcha Steve. Each state is a bit different regarding wholesaling and I think I'm beginning to understand that it is more beneficial to assign. But how do we keep the seller and end buyer from knowing how much you have made on the deal? (Will be using an LLC entity for all transactions, but I do not want to "assign" the LLC)

@Adrian Chu With this method, does the seller or buyer know what your margin is on the deal?

Yes, they will also know with assignment.  I don't know an escrow company that can do a simultaneous close.

You can have the assignment fee paid outside of closing.  Buyer you are assigning to pays it directly to you.  Day of or day before closing.  I have done this, but there has to be trust.  This keeps the assignment fee from being transparent to the seller (but obviously not the buyer).  

If  you are trying to hide your fee from both buyer and seller, I feel that you are playing a dangerous game.  If either of them wants to find out, they can look at the docs filed with the county, but if you have done it correctly up front, everyone is winning and everyone should be happy.  

@Brian Fouts @Adrian Chu

Yes, I definitely want to conduct my real estate business with a strong moral and ethical compass. I was however under the impression that you can preform a double close where you can choose to not display your margin to avoid any type of issue from the seller. I'm sure the buyer wouldn't care if you have a strong flow of deals for them . 

I believe I have to do a bit more research into wholesaling in WA as I want to be conducting business properly as real estate is a people business. 

@Brian Fouts @Joe Kooner

Brian, I agree with Joe.  I think most of us want to be ethical, but I don't think any homeowner seller will be happy with their buyer making $10+K by selling their house seconds after they just sold it to you without you having to do anything to it.  So, it seems best to do a double close.  I don't mind my buyer knowing, because as you mentioned he is probably savy enough to go look it up anyway, but the chances are that as long as I am giving him/her a good deal then they understand how the game is played; therefore, much less risk of the flipper buyer being upset with your commission.

I have not wholesaled anything, so I may be wrong.  I am just looking at it from my point of view if someone did that to me.  Am I wrong?