How do I successfully conduct a double closing?

Question

I believe I have a gist of how to complete a double closing, I just want to be completely sure. Do you recommend I use an agent for myself after I get the property under contract? Or should I just list it myself "for sale by owner" on free sites? How do closing costs and other fees affect my profit in these types of transactions?

Thanks guys

Tim Sargent · Answer

That is my plan, to get the property under contract. The language in my contract protects me in a number of ways. It states that I have the right to put the property on the MLS before I even buy the property and I'm able to get out of the deal at any point in time.

The seller doesn't have any leans or anything on the title and he's up to date on payments, so that is already checked.

That being said, the mortgage is too high for a Subject To deal, because I won't be able to rent it that high in this area. I COULD, but I wouldn't be getting any profit.

So I wanted to get it under contract with a cash offer and I'd get the closing date as far out as I could with the seller. In that time, I'd list it on the MLS and and find a retail buyer.

Christian Harris · Answer

Ok. Sounds like you wanna wholesale the deal and not renovate it and resell.

I would be careful closing on a property you are going to wholesale. Odds are the property may have title issues, and if you close on it you will soon be responsible for those title defects if you don't get them cleared by an attorney prior to closing. Usually, those who wholesale make sure they have buyers lined up to purchase the property from them if they are choosing to double close. You will be responsible for holding costs for the duration you hold title and are trying to find a buyer.

Have you considered trying to get the property under contract with due diligence and then assign the contract to an end buyer?

Apologies if I am confused about your situation and what you're trying to do here.

Tim Sargent · Answer

@Christian Harris

No, I don't have a buyer already lined up. I want to flip to a retail buyer and I don't have my realtor license so I can't list it myself on the MLS.

Christian Harris · Answer

Tim,

I wanna be a little more clear about your situation. Do you already have a buyer lined up to purchase the property from you after you close on it?