You may have heard of simos, simultaneous closings, or double closings. What are they? Well they are a fast cash technique that many investors have used to quickly acquire and flip properties at the closing table.
In the early 2000's, it was a very popular and common way to flip properties quickly for a profit. Essentially, they would find an end buyer who qualified for a loan, sell them the house for more than they contracted for with the seller and then they would arrange to have the buyers loan fund their purchase and then they would close on the property shortly after with the end buyer.
Since then there have been a lot of lenders who have established underwriting criteria to prevent funding a deal that is set up like this. They have placed 90 day seasoning requirements and other protocols in place, so they can try to discourage this practice.
In todays current market, you might find some resistence from title companies or real estate attorneys if they see that you are closing the deal this way. They do not want to put themselves at risk or they do not understand the perameters of doing these types of deals.
One way of doing double or simo closings that still works in some areas is funding the initial purchase with the seller usingh separate funds from the second transaction with your buyer.
If you are going to do simo's today, you will need to find a title company or attorney who feels comfortable doing these deals, is experienced in doing these deals, and a hard money lender or short term funding source to fund the first part of your transactions.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125