Question about double closing - Posted by ben

Real Estate Investing
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Posted by Ben on August 14, 2003 at 11:30:49:

Randy,

Thanks for your fabulous post. It was very helpful. I will be doing exactly as you said.

–Ben

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Question about double closing - Posted by ben

Posted by ben on August 13, 2003 at 18:22:57:

I have a “quicky” if someone can help me on this one?

In order to properly perform a double closing, do I sign a contract with the original seller and have the contract pending while I line up the end buyer? Supposing I don’t have a contract signed yet with the seller and I want to show somebody the house so they know whether or not they want to buy it, how do I work that out? In other words, what are the mechanics of the paperwork that need to be signed before taking this deal into escrow?

Thanks!

–Ben

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Re: Question about double closing - Posted by Randy

Posted by Randy on August 14, 2003 at 09:24:36:

Always get the property under contract FIRST! If you don?t anyone you show it to or any other buyer can cut you out. It happens every day?

In your ?Offer To Purchase? add the line ?and/or assigns? after your name, also add the clause ?buyer reserves the right to show the property to partners/perspective tenants or other interested parties at a reasonable time with reasonable advance notice to seller?.

This gives you exclusive rights to the property for the term of the agreement (30 day?s or so) and the right to show it or assign your contract to purchase the property to any one you choose.

You do not have to be a broker or have a license to show your ?Perspective new house? to a partner/friend/ or other party, nor do you need a license to assign your contract to someone else.

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Re: Question about double closing - Posted by Brent_IL

Posted by Brent_IL on August 13, 2003 at 19:52:54:

What you want to do is not double closing. It is RE brokering. A state license is needed.

A double close exists when you purchase an interest in RE and sell the position shortly thereafter. Though the escrow agent may have the checks cross in escrow, there are two separate settlements, two sets of documentation, and two sets of fees. The advantage is that neither party has an idea of the profit that you’re making. Costs are the bummer.