Wholesaling properties means buying and reselling a property quickly without carrying it for an extended period. Real estate wholesalers constantly seek ways to maximize profits while minimizing risk. A common strategy to achieve that is double-closing. This real estate technique allows investors to purchase and resell a property by taking ownership.
This strategy has become quite popular among real estate wholesalers who want to buy and sell properties without tying up their capital. So, if you’re interested in learning more, keep reading. Here, we’ll cover everything you need to know about the double-closing real estate strategy, including an extended definition and how it works.
What Is Double-Closing?
Double close is an alternate wholesaler tactic to the hugely popular contract-selling approach. A double closing occurs when an investor buys a subject property, then rapidly sells it again.
The only real difference is that it takes place within a considerably shorter amount of time than you would normally buy and sell a house. Double closings frequently take place over the course of hours. If you want to do a double close, there must be two separate transactions, each with a separate settlement statement and same closing company..
How It Works
If understanding the process still seems a little bit tricky, let us help you. This is how everything works:
1) Secure A Property: The first step to a successful double-closing is identifying and securing the property you want to purchase. This would include finding a motivated seller and making an offer on the property.
2) Find an End Buyer (Preferably already have your buyer lined up before going under contract with your seller, but if not…): Once you’ve secured the property, it’s time to find an end buyer. They must be willing to work with you in this type of transaction. You will then sign a separate purchase contract with you as the seller vs you as the buyer on the first transaction.
3) Fund The A-To-B Purchase: With transactional funding, you can use a 3rd party funding source to make the purchase between A and B. This financial tool is specially designed for real estate wholesalers looking to buy and sell properties as quickly as possible.
4) Double Close & Receive Your Payment: Once you’ve secured the end buyer, it is time to close both transactions. The first transaction will be between you and the seller; then, you’ll close the second with the buyer. Finally, once everything goes through, you will receive your profit for double closing from the closing team!
Get Uncomplicated Funding From Wholesalers Transactional Funding
If you want to step up your game by double-closing transactions, you must be prepared for any situation. Sometimes, title companies or closing attorneys won’t let you use the end buyers funds to close both transactions. So, you’ll need transactional funding to make the process cleaner. The problem is that some funding companies can be challenging to work with; it can cost you a deal and make you feel frustrated. Feel free to reach out and ask who our preferred closing teams are in your market.
At Wholesalers Transactional Funding, we understand your needs. That’s why we’ve helped dozens of real estate wholesalers with uncomplicated funding solutions. You deserve a straightforward double-closing process. Do you want to learn more? Contact us now and discover the wonders of transactional funding