Hello,
Exactly what is double closing and is it allowed in CA?
Thanks.
Double closing is where you fund and close on a purchase and then resell the house to someone else. This would be a typical wholesale transaction when buying from HUD.
Simultaneous closings work great for wholesaling houses being purchased direct from owners. In a simultaneous closing both closings occur on the same day and get recorded at the courthouse simultaneously. However, you should not need to fund the transactions, rather your buyers funds will be used to get the closings completed.
Jim
[QUOTE=newbie;884182]Hello,
Exactly what is double closing and is it allowed in CA?
Thanks.[/QUOTE]
It may be true that a double closing is legal and yet not possible because of requirements imposed by a lender, a seller or other circumstances that mess up the process. I am not saying you should not try. I am saying that you need to watch the details closely as it is not only the law that has to be on your side.
If I’m in the middle of a daisy chain and I don’t want my buyer to know who my wholesaler is, would a double closing prevent that?
If not, if I were to use my own fund to purchase out the deal from my wholesaler and immediately close it with my buyer, this would work right?
Closing x 2
A good, dependable escrow officer or lawyer who’s working for you alone is needed.
That escrow agent, working for you facilitates the Clx2, helping you buy from S @ your lower price, then simultaneously sell to B at higher price, w/o either “other” party knowing what you’re doing.
Caution! Caveat Emptor here as you do NOT want T/E combo co to do this for you because it/they work for their Title co and follow its directions and guidelines, not yours*
Independent escrow cos can be found in some states & locales and when you can find lic/bonded and state OKd E
co, they’ll usually be cheaper than a lawyer…but otherwise a lawyer who has an escrow practice is probably going to be necessary.
*I learned of this when I first started doing CLx2 years ago and the T/E person on the other side of their desk informed me that she was required to follow her T Co rules, including letting all parties know everything. At that point I stood up, reached across the desk and grabbed my paperwork which I then took to an indep., stand-alone E co who did it MY way
Your daisy chain notation makes me think there are more than 3 of you in the transaction. Is it a buyer, seller and your the wholesaler in the middle or are there more parties involved?
Thanks
Jim
[QUOTE=jimingersoll;884201]Your daisy chain notation makes me think there are more than 3 of you in the transaction. Is it a buyer, seller and your the wholesaler in the middle or are there more parties involved?
Thanks
Jim[/QUOTE]
I’m the wholesaler. I’m trying to prevent my buyer from knowing my source.
[QUOTE=John Merchant;884198]A good, dependable escrow officer or lawyer who’s working for you alone is needed.
That escrow agent, working for you facilitates the Clx2, helping you buy from S @ your lower price, then simultaneously sell to B at higher price, w/o either “other” party knowing what you’re doing.
Caution! Caveat Emptor here as you do NOT want T/E combo co to do this for you because it/they work for their Title co and follow its directions and guidelines, not yours*
Independent escrow cos can be found in some states & locales and when you can find lic/bonded and state OKd E
co, they’ll usually be cheaper than a lawyer…but otherwise a lawyer who has an escrow practice is probably going to be necessary.
*I learned of this when I first started doing CLx2 years ago and the T/E person on the other side of their desk informed me that she was required to follow her T Co rules, including letting all parties know everything. At that point I stood up, reached across the desk and grabbed my paperwork which I then took to an indep., stand-alone E co who did it MY way[/QUOTE]
I don’t understand your acronyms: CLx2, T/E, etc…
Pretty complicated
Wow, didn’t realize my acronyms were so complicated:
T/E title/escrow co
Cl2x double closing (closing x 2
You can do a simultaneous closing or a double closing to prevent that information from being known at closing. Both parties can always look into tax records later to see it though. If there are more than 3 of you in the transaction you will have a challenge getting closed at all.
Jim
Thanks Jim.