Real Estate Double Close – How To Do A Double Closing Real Estate Deal
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Real Estate Double Close – How To Do A Double Closing Real Estate Deal


let’s talk about a double close this is the other way to exit out of these is a double close so we reuse this same example we’ve done a little bit of marketing to the golden pot we know where there’s motivated sellers that can sell cheap and we found this property let’s use the same example say the seller agreed to sell this thing for $30,000 we’re going to sign that same purchase and sale agreement with the seller or say hell we’ll buy this from you for $30,000 now for some reason here’s why double closings are important double close when you do an assignment it will show the seller and your cash buyer how much your assignment fee is so in that previous example the seller that you agreed to buy with earlier and also your cash buyer will see that you’re getting an assignment fee of $10,000 now anytime an assignment fee is $10,000 or more you may not want all parties to be on notice of how much you’re making so if you’re making 10 20 30 $40,000 on an on a spread on a wholesale you probably want to do a double close now with a double close what happens is there’s actually two separate closings so the parties don’t actually see an assignment fee or see your profit so in this case with the seller on a double closed or a simultaneous closed will sign the contract with the seller just like we did and then we’ll send an email out to our buyers list and say listen we’re willing to sell this property for $40,000 should the first cash buyer Joe investor says I’ll take it and you say fantastic we’ll get together sign a purchase and sale agreement on this property for $40,000 so you take that same contract and you put a shorter closing time so the seller may have given you 30 days to close so you tell your cash buyer you have 15 days to close and that’s what you put on the contract so you sign both of these you sign a contract to buy you sign a contract to sell and then the same thing you either give this to your real estate attorney depending on what state you live in or to your title company and open escrow and what they’ll do and you tell them that you’d like to do a double close and here’s the cool part how this works your cash buyer on the day of closing is going to wire to the title company $40,000 in cash now of that you will use thirty thousand of those dollars that are in escrow with the title company to buy and close out the first transaction the A to B so you have used the cash buyers money to buy the property and then 15 minutes later you go to the next room and you sign the paperwork to sell to your cash buyer and when you do that the difference is your profit so you get ten thousand dollars in this example less closing costs okay here’s the thing or what you understand there with a double close this will kind of prevent all parties from seeing how much you’re making until the very end that your cash buyer will see it but he already is getting a great deal so he’s ok with it he or she the double closed there actually is two separate closings happening here you’re going to buy it and then you’re also going to sell it so when you do that there’s two sets of closing costs so the only really downside to that is there may be a five six seven hundred dollars in closing costs between those maybe more maybe less that will eat into your profit a little bit so it really just depends how you’d like to exit out and and and the reason why you’d rather do a double clothes opposed to an assignment but there’s two different ways in either way you didn’t use any of your money or your credit and you’re walking out with similar dollars so here’s how to find bargain houses like I told you if you cannot find bargain properties that you know you can get below value you have no business so let me show you how I do it I use tiny little yellow post cards pretty similar this they say hey listen sell your house for cash seven days or less or I’ll buy your house with no commissions you can sell it in as his condition and I send this out now here’s the thing I never print these cards I never touch them I never address them I never put post US postage on them and I’ll show you how I do it you submit but what’s most important is who these are being sent to I’m going to show you three of the main people that you really need to get in front of with these with these tiny little postcards number one inherited properties now these are properties that one or more parties have inherited someone has passed away in and given the property to an heir sometimes these these airs that have inherited this property don’t live in the same city sometimes they don’t live in the same state okay and they just don’t want to mess with the property so with that in mind they would love to get this card from you and have you buy this house from them fast even at big discounts the second kind of category we go after is non owner occupied properties that have owned property for ten twelve thirteen years or more and what that does it gives some time to pay down the note to have an equity spread in it so that when you contact them and they you talk to them they’re more likely to have an equity spread that makes sense that it’s worth your time because if someone owed a hundred thousand and the property’s worth a hundred thousand there’s no way to make a deal but if they owed forty thousand and they were really motivated they were tired of dealing with tenants or whatever and it was worth a hundred all sudden there’s room to make a deal so those are the people you want to go after otherwise you’re spinning your wheels and the third and final one we go after is free and clear properties in specific areas and price ranges so where do you get these how do you find these people that have these golden properties I’m going to give you a couple sources right here write this down you can go to US lead list.com and at that at us lead list you can buy a list of inherited properties in your area you don’t have the name of them in the properties and also you can go to list source calm and get a list of not owner-occupied properties that have been owned for twelve thirteen years or more and also same with free and clear properties and so here’s what happens when you get that list they send them to you in an Excel format like a Microsoft Excel and it has like the the property owner’s name first name last name where they live in the property that they own that you’re interested in here’s how you automate this and kind of put it all into a system I use a company called click to mail comm and what they are is basically a publishing house that you tell them what you want to print ship and the addresses you want to do it to and they’ll do it all for you so here’s how it works once you buy your mailing lists that have these goldmine properties on it you go to this web address click to mail calm and when you go there you simply upload your mailing lists say it’s free and clear properties or it’s non-rock you pied or inherited you upload it there and you say hey to this mailing list that I’ve just uploaded on your site by clicking this button I would like to send this postcard and I want it to be yellow or white or green and I’d like it to go out next week so on this site depending on how many leads you buy from a list source or us-led list you can send with a click of a button you can send a hundred postcards or ten thousand or a hundred thousand postcards with the click of a button and what they’ll do is they will print your postcards they will address them they will put postage on them and if you want to live in mail merge form with for no extra fee with a click of a button it’s just like that so you could literally spend five ten minutes and send out ten hundred thousand postcards it takes the same whether you’re sending ten or hundred it’s the same process but here’s the thing to caution you about when you send out tiny little postcards like this or letters you don’t want to put your home phone or your cell phone on it because you’ll be absolutely driven completely crazy the calls will come in like you wouldn’t believe when you send them these out in quantities so here’s what you want to do you want to set up a voicemail box and you can do that you can basically rent them by the month at a company like freedom voice calm or RingCentral calm and you can basically you can pick a number and then you you record your voice you record a voicemail and that’s the voicemail that these callers are going to hear when they call that number so you send out this postcard they see a number they call it and basically it says hey this is Joe or Jill by properties in the area if you’re interested in selling your property quickly for cash please leave as many details about it as can and I’ll return your call promptly and so they leave a message you will hear through those voice mails because freedom voice that brings central will actually email you an audio file even to your phone if you want so you can kind of sift and sort through them you’ll hear um callers calling in and they’re saying hey take me off your list or hey I’m not interested in selling or hey I’ve got this property and I’m not going to get back to the state and I’ve had it for 25 years and I just want to sell it as is and just want to move fast please call me and make me an offer so it tells you which ones to pay attention to and you’ll know to get on those really quick so set up your voicemail box before you send out these postcards well this is the end of video number two I trust that you found this information to be very helpful and tomorrow I’m going to email you the third in the final video so in the final video you’ll discover how to build your list of hungry cash buyers that are looking to buy deals in your area and have cash plus I’m going to show you two houses that I’ve wholesaled personally and a triple wholesale flip so you won’t want to miss this final video so if you’d like to talk with me live and ask any real estate investing questions you can do so just go to wwm ico formula.com forward slash talk or simply click the link below this video to schedule a time to talk live if you’re a beginner or an experienced investor and you want to talk with a live real estate investing expert it would be my pleasure if you need help with wholesaling houses fix and flip cashflow rental properties maybe some no money down strategies or if you just need help knowing how to find bargain properties below value just complete the form on the site and pick a time that works for you to talk and that concludes part two and be on the lookout tomorrow for the third and final video

12 Comments

  • Melita Casiano

    Is it possible to do a double close with a house that is already on the market without money but you have a cash buyer? Or does this only work if you have a seller without a realtor?

  • Jonathan Leung

    I think you are confusing "simultaneous close" with "double close". You are describing simultaneous close – in which seller's funds are used to cover both transactions. From a little online research, consensus is that very few title/escrow companies are willing to do this nowadays. In a double close, the investor has to come up with his/her own funds. The investor uses his/her own funds to close the first transaction with the seller, then closes with the buyer right after. A transaction fund loan may be utilized if investor does not have sufficient funds.

  • Kenneth Wiley

    how do you get a purchase agreement contract with no proof of funds
    the only thing that makes sense to me is a 100% owner financeing
    but then how do the real-estate agents sell a house they don't own?
    provide proof of funds before you can buy a house
    seller won't even touch you if you don't have the home under contract
    transactional funding will only work if you have an end buyer on
    contract and the seller on contract.

  • RE Verb

    The seller NEVER knows the fee, the buyer does. But we are closing and the buyer knows our fee. We've closed $76,000 assignment only deals. REAL buyers will not count your dollars and not ask about it. The seller should be signing an assignment agreement while the purchase signs a PSA

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