OfflineI don't know what to do. I thought the IEE method was like an assign where I do not actually purchase the property, but in the contract it says that I am purchasing and immediately reselling. IS this a double closing? Is that the same thing as a double escrow? My broker said that almost no one is dealing with anything other than the conventional way of doing things where the buyer gets qualified and makes their own offer. She also said they won't do double escrow. This means my offer will not even be looked at. Is there another way to word the contract so that I am not actually purchasing the property? I don't have that intention, so why would I put that in the contract? Anybody run into this? Thanks so much! I am new.
~Alicia
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From all my research and information received from the seasoned REI DG members, this is what I have learned.
Most title companies will not do double closings or simultaneous closings because in order to do the second closing you must be the owner of the property and until the closing has been completed and property title has been transferred to you, you can not legally sell the property. Another reason they don't do it is because the escrow (title) officer is not an attorney and can't legally to the paperwork to change the buyer from you (the investor buyer #1) to the end buyer (the investor end buyer #2). Thus a real estate attorney must be present to do that.
To get around that, you can purchase the property in your own name by using a company that will do transactional funding to finance your purchase. Then you can do a back-to-back closing. There are a few companies that will do back-to-back closings nationwide. When you do a back-to-back closing you would not be doing an assignment deal. You would have purchased the property via transactional funding. Transactional funding is just a few hours or one day loan. The transactional loan must be immediately repaid at the second closing at he back-to-back closing. So there may be some risk if the second closing falls through because the transactional funding must be paid immediately at the end buyer closing. You must be sure that the end buyer is a sure thing.
Hope that helps a little.
Always striving to move forward toward better times!
Verna (newage8767)
I am still learning myself but I believe the company you are looking for is Coastal-Funding.com I hope that helps they do double closings..
or call Prosource Loans 1-888-453-2445 they do double closing also...I hope this helps as well....
My name is Tajuana ( teescott is my login) you can PM me also....
Hi everybody,
Double close a property is to buy and sell it the same day and assignment is to sell your rights in a contract,You do not buy the property when you do an assignment.Simultaneous is when you do a double close and your end buyer buys the property before you do(Gray Area).IEE is used when your buyer is using financing to buy your property that you have under contract and with the IEE you are dealing with the seller for payment,A buyer that is coming in with cash then a simple assignment of contract works...Either way you do it,You have to lock it up.
P.S.The whole trick to REI is dealing with like minded people,You can find these people/companys at REI Clubs!
Invest in yourself!
Are you in a state that uses title companies to close? I do double closings all the time with my title company. You will either need your end buyer to wire you the cash for the first closing or get a company such as costal funding to provide you with the funds for the first transaction. Typically, they will charge you 5K, so make sure you have a good spread so that they dont take most of your profit.
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