Double Closing, double escrow, flipping - Posted by CSGM

Posted by Deb on July 11, 2002 at 19:25:40:

Thanks Joe.

Double Closing, double escrow, flipping - Posted by CSGM

Posted by CSGM on July 10, 2002 at 17:04:16:

Can someone explain in step by step detail what a Double Closing is?

Thanks
CSGM

Re: Double Closing, double escrow, flipping - Posted by JoeS

Posted by JoeS on July 10, 2002 at 22:30:50:

I did probably 100 double closings, also called simultaneous closings before the issue of title seasoning became an issue. This is the drill:

  1. Put a property under contract for X dollars.
  2. Find a retail buyer and sign a contract to sell for appraised value.
  3. Locate financing for your new buyer.
  4. The day of closing the funds are wired into the Title company’s escrow account.
  5. In room #1 you sign to buy the house, title company cuts a check to the seller who is advised to hold the check until later that afternoon.
  6. In room#2 you then sign to sell the property with your new buyer. Title company cuts you a check for the funded amount telling you to hold the check until later that afternoon.
  7. The original seller cashes their check and they are happy. You cash your check making a nice profit (hopefully at least 15K) and so you are happy. Your buyer is happy because they have just closed on the home of their dreams.

That is how I do double closings. Other investors may have a different slant on the process.

Re: Double Closing, double escrow, flipping - Posted by D

Posted by D on July 10, 2002 at 21:57:27:

I would like to understand the process too. I know it involves flipping a property sequentially upon the sale/purchase of another, but how do you transact it technically and legally right?

Re: Double Closing, double escrow, flipping - Posted by Deb

Posted by Deb on July 11, 2002 at 12:43:35:

Hi Joe,
I had planned to do wholesale flips. How does title seasoning affect your flips? I don’t know what title seasoning is.
Thanks,
Deb

Re: Double Closing, double escrow, flipping - Posted by CSGM

Posted by CSGM on July 11, 2002 at 01:14:39:

Thanks, JoeS:

I really a appreciate your feedback, it has been very helpful.

Thanks,
CSGM

Re: Double Closing, double escrow, flipping - Posted by JoeS

Posted by JoeS on July 11, 2002 at 14:03:07:

Titl seasoning is only a LENDER issue…if one lender has a problem with it then find another lender. Part of my work day is spent on the phone and the web searching for lenders that have no seasoning problems. And to complicate things they will often times change their parameters quickly. I always arrange the financing for my retail buyers…if they want to go to a local bank I tell them “No thanks” and I will either arrange financing for them or find another buyer. The point is that I control the deal. If I have to hold a second I will, if I have to contribute for closing costs I can.

Titl seasonong is the holding of the title to a property for a specified period of time between owners. Many lenders like 6-12 months. I can’t blame them, there has been a lot of fraud.