A Double Closing is the simultaneous purchase and sale of real property. In a typical double-closing scenario, a real estate investor acquires property from a seller at one price and immediately resells it to an end-buyer at a higher price. The difference between the two prices represents the profit to the investor.
Double Closings are also commonly-referred to as simultaneous, back-to-back, or same day closings. We have, and will, handle these types of closings under limited circumstances:
1. The end-buyer’s lender must be specifically informed that the seller for their transaction is not in title; and they must consent in writing to the transaction.
2. Each half of the transaction must be kept fully separate and stand on its own. The initial acquisition must be fully funded and disbursed with money coming from and going to all appropriate parties. The end sale must also stand on its own. The proceeds from the sale can not be used to fund any portion of the acquisition.
Harlan and Associates will not handle any type of simultaneous or double closing if the first of the transactions is a short sale.
As a practical matter, double closings are only possible if the end purchaser is paying with either Hard Money or cash. Because assignment fees are also appropriate in most of these transactions, we encourage their use instead in order to save you the costs of paying for two separate closings.
Please understand that the circumstances in which a double or simultaneous closing would be appropriate are exceedingly rare, and as an investor you are probably better served by looking at alternate financing and investment options.