Financing A Double Closing
I have a property under contract that I am looking to do a double closing. I have assigned contracts before, but never done a double closing. The reason I am doing a double closing is because there is a bigger difference on what I have the property under contract for and what I am selling it for (found a GREAT deal). My question is this:
To do a double closing, do I need to bring any cash to closing? Meaning, do I have to pay the amount I have it under contract for and then the buyer brings what I am selling it to him for. Or can the buyer bring the amount that I am selling it to him for and that would take care of what the seller is getting and what I am getting.
Please help me with this so I can get the deal done. If I have to come to the table with my portion, I will have to get a money partner and pay them to use the money for one day.
Several ways to make this happen. If you have a hard money loan for the end user this is not going to be an issue at all. Just have your title company set it up. However, if dealing with a bank they will probably have an issue with the chain of title. You might be able to figure out some swanky way to do it. but the only way I have seen work is to have the seller put the property into a land trust titled ___________ family trust with you as the trustee of the land trust. Then do a contract between you as trustee of the _____ family trust. and the buyer. The lender should see this and see that you are just the trust of the family signing on their behalf. If you do this that should also resolve you having to bring your own money to the close as you are already on deed.
Hope this helps
If you need further details you can email me
Hi, my advice on this is to cut the seller in on a bit more profit,and make a new contract between the seller and buyer directly with a side contract for you and seller. 99.9% of lenders will run away from a double closing today. Plus as said in previous post chain of title will show you dont own the property and then there is a seasoning issue for your buyer to deal with, which lenders currently do not like. . So my suggestion, is negotiate with seller to sell directly to the buyer,and have another side contract between you and seller to cash you or a corp. the difference at closing. Good attorney will do this and its legal. The side contract between you and seller protects your interest,and the lender has a straight no frills loan between owner and buyer, eliminating any seasoning issues.
If you do wna tto do the double - Ask your Mtg. Broker to call Credit Suisse. They will look at it on a case to case basis.
Or find a cash buyer. lol then you have no probs.