Back to back closing

Yes, that is how it works. If you have your own cash to fund the first closing, you are set. If not, you can obtain transactional financing through a hard money lender for up to 3 days. They will charge a fee equal to 2% of the amount borrowed, plus an application fee of around $500, and some have a minimum charge of $3K. So, it isn't cheap to use them, but they will lend 100% of the cash. They aren't worried about qualifying the borrower, but will make sure the buyer has the cash to close as they don't want the property, they want to get paid back.

Some title companies and/or states will have their requirements as to how quickly the second closing can take place. Some will do it directly after the first closing, others require up to a 3 day waiting period.

Good luck.

Do you have a property under contract that you need to double close??
There I go again. Also My TF guys never charge an application fee, just a flat 2%.

Usually when you double close you are wholesaling an REO or a short sale. That will be the a to b closing. I don't say a word to the banks title company except I will close with cash Period. I certainly don't reveal to the banks agent or title company that I am planning on wholesaling the property. This is why REOs and short sales are usually not assignable. They want the person on contract to close!
I only work with the b to c title company and my buyer. They are fully disclosed to and most of the time I use my buyers money to fund the deal (A Dry Closing) No money costs at all except MY closing costs on the A to B. Usually around $800.

I learned all of this the first time I went to double close an REO. Of course, common sense told me not to tell the bank, their agent or title company my strategy!! I had talked to investors that I knew were buying and selling properties in my area and I simply asked them what title company they recommended for the b to c!

Make offers and learn is my motto!!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

I am working with someone and he appears to know how to do this, so I will not worry about it. I did ask the title company if they did back to back closing, as I stated above, and he said yes, as long as we fund the first one. Thanks again.

"as long as you fund the first one" means they wont allow "Dry Closing" on the 1st one and you can use cash or TF, as Michael stated above-there are Title co that will allow the "Dry Close"(which the end buyers funds are used to close the first) which reduces cost as Michael explained

Great. I know my title co said they don't do dry closing, but now I understand fully with your explanation. Thank you for the clarification. You and Michael are so good at explaining things.