how do I get a simultaneous close started? Do I need to certify funds from the buyer, before we sign a contract, should I ask for money down to get the title company going? I'm getting confused?
Number one priority is to call title companies and make sure they know how to do simul. closing. You see, if they require you to bring funds to the table as well, then that is not simult. closing. Manu closing agents get confused.
You need to get proof-of-funds from the buyer before you guys sign the contract. You also collect a non-refundable deposit from buyer placed in title company escrow. If he backs out for no good reason other than marketable title, you keep the earnest money and move on to the next buyer in your list. Did this make sense?
hrash is correct. The 2 keys is to make sure that the title company does simul. closings, and secondly, that your buyer has the funds to close. Once these two are in place and you have a clear title, move forward!!
I would recommend that you get references from other investors of title companies that they have been using, and ask them if they have pulled off any simultaneous closes with them.
First there are title companies that don't even know what they are, and then there are title companies that know, but won't do them.
As far as your buyer is concerned. You need to make sure that your buyer is capable of closing. They don't necessarily need to have the funds, but at the least they need to be able to borrow the funds. You need to check with their lender to make sure that they don't have seasoning requirements. If the lender does, your simultaneous close will violate that and your buyers loan will be turned down.
[addsig]
Number one priority is to call title companies and make sure they know how to do simul. closing. You see, if they require you to bring funds to the table as well, then that is not simult. closing. Manu closing agents get confused.
You need to get proof-of-funds from the buyer before you guys sign the contract. You also collect a non-refundable deposit from buyer placed in title company escrow. If he backs out for no good reason other than marketable title, you keep the earnest money and move on to the next buyer in your list. Did this make sense?
hrash is correct. The 2 keys is to make sure that the title company does simul. closings, and secondly, that your buyer has the funds to close. Once these two are in place and you have a clear title, move forward!!
Prosperous investing
td
that clears it up pretty good. I think I'm almost ready to start looking. Thanks
I would recommend that you get references from other investors of title companies that they have been using, and ask them if they have pulled off any simultaneous closes with them.
First there are title companies that don't even know what they are, and then there are title companies that know, but won't do them.
As far as your buyer is concerned. You need to make sure that your buyer is capable of closing. They don't necessarily need to have the funds, but at the least they need to be able to borrow the funds. You need to check with their lender to make sure that they don't have seasoning requirements. If the lender does, your simultaneous close will violate that and your buyers loan will be turned down.
[addsig]
thanks steve, thats some real good info, and now that I thought about it, I do have a couple of guys that I could ask.
how do you obtain proof of funds from your buyer?
I guess you would contact the lender.