Double Closing Clarification
Hello All,
It's been a while. I just wanted a clarification of a double closing. By reading the above post's, I understand that you will be responsible for funding the first close (to possibly include closing costs). Now for my question, in my studies I have read where a double close could be performed where the first was done in escrow, with the second done immediately, thus relieving the investor performing the double close with nothing out-of-pocket? Since I have never done a double close, I have no way of knowing if this is even possible. I hope some of the more experienced investors could clear this up for me. I know that it is not as simple as I stated, but is this the premise? Thanks in advance,
CMoore 
If done correctly, in a double close nothing will come out of your pocket, but you have to figure in the cost of 2 closings in your profits.
Example: Say you're looking to make a profit of $10k Assume you split closing cost in both closes w/ seller/buyer. Lets say the 1st closing cost $1500 and 2nd also cost $1500. Nothing will come out of your pocket in either close but your net profit will only be $7k.
With that said, good luck in finding a lender that will do a double close. No conventional lenders do them nowadays. You're looking to have to find a private lender.
I have a question. Is the buyer closing with you first? So, in effect, you are selling a house that you dont have title to?
Then, afterwards you go and close with your seller? Your title company transfers them the funds?
Well how will you get someone to pay you money when you dont have title?
If they check weeks before closing for title insurance, they will know weeks early that you dont have title.
Will they even show up at closing?
You would have to use a title company or RE attorney who knows how to do double closes. You would have to inform them that is what you are planning on doing. They will take care of the rest.
Finding a title co or RE attorney to do a double close isn't a problem, its finding a lender for your buyer that will do it.
you need to find a buyer that hopefully is a bigger investor who can fork over the money, or has backers. I'm trying to use an option to purchase form to get the right to purchase thus giving me a little power over the property. I havent actually done this...yet, but I'm trying.
Couldn't you just buy a ten, thirty, or sixty day option to buy at a $XXXXX, and then assign (sell) the option to your buyer and let them buy? That would seem to avoid having to do a closing at all, assuming the buyer could pay cash for the assignment or you take a promissory note that becomes due the day after closing. What are your thoughts?
Thanks all for your comments. I guess my initial assumption was pretty much on track. I know that the buyer would have to have private money (not from a bank), but I have always assumed that the best use of this scenario would be in flipping houses (buying low and selling high - quick) when there was a substantial profit to be made and you did not want the buyer to find out how substantial. I also assumed that an assignment was done when the profit was not as great or you did not have the resources to take advantage of the full profit potential, thus passing a bargain onto another invetsor at a smaller fee. If anyone could add to this or clarify, that would be greatly appreciated. Thanks again in advance,
CMoore