A double close involves buying and selling a property back-to-back in one transaction. Although it's a legal technique, it can be seen as negative due to news about real estate fraud. Nonetheless, with a few precautions, you too can double close in real estate.
Instructions
1. Hire an attorney who is familiar with double closing deals and is willing to assist you.
2. Explain to the buyer and seller that you're performing a double close transaction. Some buyers may be leery of this kind of deal due to misinformation. Explain matters in a knowledgeable and intelligent way to eliminate suspicion.
3. Sign a purchase contract on the property with the seller. Then sign another purchase contract with your buyer.
4. Schedule the closing.
5. Find a title company that is investor friendly, as it will be familiar with double closing procedures.
6. Have the property owner sign a deed over to you; next, you sign a deed to the buyer. The title company deposits both deeds, as well as the purchase money, into escrow. Only you and the buyer need to attend the closing. The transaction is complete when the buyer signs all the mortgage paperwork.
7. Expect the title company to deliver the purchase price amount to the seller. You will then receive the difference amount. Finally, the title company records both deeds with the county.
