What Is Double Closing in Real Estate and Why You Should Consider It?

1. What Is Double Closing in Real Estate and Why You Should Consider It? If you want to start wholesaling real estate, you need to first look for properties that are under contract. After you identify a property, you must buy it. Soon after, you must sell it. The key here is speed. If you’re able to buy and sell quickly, you should make a decent amount from the sale! Move too slow and you may end up losing money. Of course, double closing isn’t something you can master overnight. But once you master a successful method, you can profit handsomely from wholesaling real estate. What Is A Double-Close Deal? When someone mentions wholesaling real estate, more likely than not they’re referring to a scenario where a property is put under contract and the rights of said contract are sold to the highest bidder. Double closing is a bit different. In this case, the wholesaler buys the property, becoming its legal owner, before selling it to an end buyer. Obviously, this process has more steps and costs than the former, but the problems related to contract details and legitimacy are avoided. Benefits Of A Double-Close Deal Maintain Financial Privacy When you double close, your profit is kept confidential; this isn’t the case when you’re working with contracts. In the latter arrangement, both the buyer and seller can see the price difference, and either party may feel like they’ve been cheated. But because double-close deal details are kept confidential, the process is generally smoother. Legitimize The Process

2. Tired of hearing: “Is what you’re doing even legal?” Consider double closing. If you’re the legal owner of a property, there shouldn’t be any hiccups when you go to sell it. How To Execute A Double-Close Deal It’s a two-step process: −First you must purchase the property from the seller. −Once it’s yours, you sell it to a buyer. −These transactions often happen on the same day, sometimes even at the same office. The Importance Of Transactional Funding Since you must own the property, you’ll need funds to complete the first transaction. This is where transactional funding comes in. It’s a form of short-term financing that’s perfect for these kinds of deals. Double Closing Challenges (And How To Overcome Them) Funding The Purchase Many wholesalers avoid double closing because they lack the funds required to purchase properties outright. Solution: Use the best transactional funding. These loans tend to have a term of a few days, and typically you only have to pay fees if your deal closes. Higher Closing Costs When you double close, you have to pay closing costs twice—once when you buy and again when you sell. Solution: Build relationships with closing agents who may offer discounts or waive certain fees for repeat business. Finding The Right Closing Agent

3. Some closing companies shy away from double closings because they’ve been burned by these deals in the past. Solution: Find agents who are experienced with double closings and willing to work with your time frame. Why Consider A Double Closing? Many wholesalers focus on contract assignments because they see double-close deals as too complex or costly. However, the advantages of double closing are numerous. For one, you can secure a big profit. Moreover, you can maintain privacy and ensure legitimacy. Sure, there are extra processes and costs, but these hurdles can be overcome if you close a lot of deals in a short period of time. Need funding to do real estate wholesaling in your area? DoubleClose.com provides transactional funding for real estate wholesalers nationwide! No credit checks. No hassles. Same-day funding. So if you want to get wholesaler transactional funding with absolutely no red tape, choose us! Author Bio: The author offers transactional funding for wholesalers in Florida and other U.S. states. They provide small and large loans without requiring upfront fees, credit checks, or income verification. Visit https://www.doubleclose.com/ to learn more.