Sketch buyers W/ private money lender

We just had a case where the bank had to approve the contract before our buyer would sign.  It was supposed to be a simple wholesale deal; we had the property under contract and then found an end buyer BUT his bank insisted on a Title policy for the full purchase price not just the original sales price.

Note for new Wholesalers: if the sales price you have under contract is say $50k and then you Assign it to an end buyer for $60k, most Title companies will only give your end buyer a policy for the $50k.  Some will simply ask the buyer to purchase and additional $10k coverage but some, like the one we were working with insisted on a double closing.

Long story, shorter version: We now have a double closing in the works, us buying the property from our seller at $160k, then same day simultaneously selling to our end buyer for $180k.  Two contracts, two sets of earnest funds but the 2nd transaction pays for the first.  90% of Title companies will no longer do this but this Title company insisted on it!

You should be concerned if they are not using a Title company.  Ask for non-refundable earnest money or option money; that shows they are serious.  Make it enough to hurt them if they back out.