OfflineI just spoke with one of our local Title Companies. She said you have to provide full disclosure to all parties if you're doing a double close.(not sure how I would do that either) She said the banks are watching these very carefully and suspect fraud when you double close for a profit, which doesn't make sense to me. Is this just in WI? When you buy a property for say $100,000 and then sell it 3 hours later for $110,000 the bank financing at the second closing knows it was just sold for $10,000 more think it's a flip (so?)or fraudulent sale... Has anyone heard of this?
I wanted to do a double close because the prop is an REO and can't assign so I would fund with Costal Funding then sell to my end buyer to get the profit. I'm confused as to why the end buyer's bank would care if the end buyer is willing to buy at $10,000 more? I think I'm missing something here.
More confused than ever....
Dawn
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Hey Dawn,
I just emailed my Title Co. To see what they say about that, also you might want to call around and see what another Title Co.say's about a full disclosure to both parties.
I also spoke to my Title Co. about the down payment, and they told me they could hold onto a cashiers check and cash it after I had the funds in the bank from my profit.I would have to get that done on the day of closing.
Jason S.
San Diego, CA.
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Hi Jason!!
I emailed a couple other Title Companies and their response was the same...
"I'm not sure what you mean by a double close"...at least this one KNEW what it was!
I'll call them and explain it. (I don't get what the fuss is all about....)
Dawn
Life's a Dance you learn as you go...GET HAPPY FEET!
"Most of the important things in the world have been accomplished by people who have kept on trying when there seemed no hope at all." ~Dale Carnegie
Dawn, ask Coastal Funding if they have a title company they use around your area. I believe they have at least one in every state.
Josh
They do if you don't submit them accordingly, but there are ways to do a double closing with banks. You just need the right paperwork like a HUD-1 filled out correctly and submitted in your offer. The banks have a certain way of doing things and if you don't follow they're 'norm' then they question it. But I know investors that do double closings all day long through the banks and they NEVER question the fact that they're doing a double closing because they submit all the necessary paperwork. It's just another hurdle you can overcome with a little education. Knowledge IS power!
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
Hi Lena! (been missing you here!)
I even mentioned the Hud 1 but she insisted the buyers bank wouldn't like it.
(mayabe it was the delivery?) So can you tell me "how" to do this? Where can I find the answers. I'd like to know before I contact the other Title Companies. Maybe it's all new to her so she's being cautious...I hope that's the case!
Josh-I'll contact Costal and see if they have anyone nearby.
Rina-I know of an attorney that owns a Title Company also, I'll check him out as well. I hesistated because a friend of my daughter used to work for him and he wasn't treated very well...but this is business!!! I'll excercise all my options! Well, I have lots to do, don't I?
Thanks for the help everyone!!! You're the best!
Life's a Dance you learn as you go...GET HAPPY FEET!
"Most of the important things in the world have been accomplished by people who have kept on trying when there seemed no hope at all." ~Dale Carnegie
My Title Co.said the same thing.(you need to let both parties know.)
So if you find out more info about what Elena said, keep us posted.
Jason S.
San Diego, CA.
**All CASH House Buyer!**
Refer Us To Neighbors, Friends & Family, Earn $1,000
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This is the problem I have run into with REO property. It can be done, but you have to stipulate in your offer that you want to use YOUR escrow company of choice not the banks. Unfortunately, the hurdle is getting the bank to accept your terms. I have found where I live that 99.9% of all banks want to use THEIR escrow companies because they get incentives from using the same escrow company. When you use the bank's escrow company the escrow company's loyalty goes with the bank not you. The escrow company is getting their bread and butter from the banks. This is why the escrow company is telling you that you have to disclose your intentions with a double close. The escrow company doesn't want to jeopardize their relationship with the bank. If you were using your own escrow company with coastal funding, the escrow company could care less that you're going to sell the property 10 minutes later for more money. If you can get a bank to agree to your escrow company, you're in business.
KimmyJ
Try putting "buyer's choice" in the purchase agreement (offer to purchase), and see if they'll let you pick the title company. I've not had any come back saying we had to use a certain company. And these have all been out-of town banks.
Good luck.
Rina
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Thanks KimmyJ, that sheds a little light on the subject. I'm a LOT less confused about this now, all the help is appreciated.
You too Rina! I'll have to try that. I've got nothing to lose!
I love this family!!!!!
Dawn
PS....Just got my book, I'm off to read it!!!!!!!!!!!!!!!!
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Reina Patricia Rendon
Hello everybody,
I had no idea you could do a B2B closing with bank financing on the end!If this is the case...I just got a new hammer for my tool belt!
Invest in yourself!
I'm a newbie at this. I'm working with a realtor and she has found a home for a buyer I have. Is there a way to sell this house to the buyer without using my own money and make some money in the process?
Jean
Most likely not. Since it's a double closing you will need money for the first transaction. There are many sources available that you could use for the first transaction.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
Thanks for confirming what I had suspected.
Jean
I am also wondering if its possible to close with the bank with their title co today and close with your end cash buyer tomorrow at your title co using transactual funding. I know it would cost more because you are doing two closings,but it would eliminate the disclosure to the bank at the first close. The problem would to be to find a lender that will do that.