Double Closing

Double Closing

I have a question - two actually, which are totally unrelated. The first question is, what is a liquidator, is that the same as a wholesaler? The reason why I asked this is because I think I have found a good deal through this person, who calls himself a liquidator. Also, I have managed to find a couple of investors who might be interested and I was wondering how I can do a double closing so that my profit margin would not be revealed to the investor. I understand that I would need to first lock up the deal with the seller, but the thing that is confusing to me is that the investor would have to first visit and check out the property before he is sure to make the offer. Since the seller would be there to show the property to the investor, with me there as well, I would run the risk of them figuring out what I am doing and how much in profits I look to gain from this. So my question is really, how would I do a double closing without the investor and the seller go behind my back and cut me off from the deal?

Any help would be greatly appreciated.

Lock it up

I haven't done it yet so more experianced people may have different advise but from what I have learned from dean and people on this forum is lock it up but make sure you have you escape clauses in the contract.
You kind of have to be up front with everyone. You can have a conversation with both to let them know what your doing but they don't have to disclose who is paying or selling what.
Let the seler know "I am helping you get your house sold and yes I will make a profit." Then tell the buyer "hey I am getting you a great deal and yes I will profit from it."
I had a deal almost locked up to do this very thing and once the seller found out she backed out but her house is still sitting on the market.
So be prepared to have these conversations with these people.
I would love anyones different advise so I may avoid ****ing future sellers off.


dont know

i dont kow how you would do a double closing, but what about doing an assignment of contractwhere you find the property, get it under contract at a wholesale price then assign it or transfer fulfillment of the contract to another investor for a fee.

Here is how....

I will try to keep it simple so I don't confuse you.
First in order to do a double closing the title company requires each deal to stand on it's own. In other words each deal has to be funded....the A (seller)to B (wholesaler) has to have funding....and the end buyer comes in and brings his funds to buy the house.

Lock the hosue up first before even showing it to an investor. Be sure to tell the home owner that you will be reselling for a profit and bringing in potential investors to take a look. Always disclose to the seller that you are reselling for a profit so later he doesn't came back and say you never told him. I even put it in my contracts that I am reselling for a profit. I keep my seller totally informed as to what I will be asking before a potential buyer even sets foot in the house. He will understand that my profit has other expenses coming out of it like the funding source for one. That way he doesn't feel jipped on the deal. OK....

1. Unless you have your own money to fund the A to B transaction call Eric Green at and he will fund your deal once you find your end buyer. HE also has a title company that will back to back close for you.

2. When you lock the house up by contract you then go down to the county courthouse and file the Notice of Option which prevents another investor from trying to go around you and steal the deal. It costs me $40 here in Little Rock to file this document.

3. When you find your end buyer then you use the same contract you used between you and the seller (a new blank one)...just change up the contingencies inside the contract and you and the end buyer sign and date it etc....

4. You will fill out a HUD 1 which instructs the title company as to how the monies are divided on closing day.

I hope I made it simple and not confusing for you.

I kinda think too that a liquidator is much like a wholesaler.




Sissy, and others who have double closed a REO?

OK..I have finally stepped outside my comfort zone and made an offer on a house that I am planning to wholesale if I get my price (even if I only make $50..just kidding, but I'd do it for $1K at this point to go through the process and get my darn feet wet)..

It is a REO and typically seller chooses title company. Do I just write that into contract that I choose title company if this is my plan? Will this be a deal killer if the bank figures out my intentions..or even my realtor?

Merry Christmas!! Can you even believe I am on here??!!!? I really do have a life. ha! Kate


"Whether you think you can or can't, you are probably right" Henry Ford

Syndicate content