Lender · St. Louis, MO · Member since 2009 · 348 posts · 164 votes
8y
I have used Accurate Title on many occasions. They were on top of their game. They do double closings but (as with most title companies) require that the A-B be independently funded and recorded before they can close the B-C.
Wholesaler · Excelsior Springs, MO · Member since 2017 · 32 posts · 5 votes
8y
@Shari Peterson I'm not sure that qualifies as a double closing. At least not the kind that works well for wholesalers. A-B should be funded by B-C. That's what I'm looking for in a title company. So far, I've heard Alpha is my best bet. I just haven't been able to reach anyone over there yet so I'm wondering if they are imaginary. lol
Lender · St. Louis, MO · Member since 2009 · 348 posts · 164 votes
8y
Most title company these days will not do a double closing as you describing, using the funds from the C Buyer to pass through escrow to pay off the A Seller. Underwriting by most title insurance companies won't allow it. Back in the day (now I sound like I'm ancient) we used to be able to do exactly what you describe. But that all stopped about 2008-2009. Now, you must come to the table with your own funds to completely close the A-B transaction. Then you can close on the B-C.
Lender · St. Louis, MO · Member since 2009 · 348 posts · 164 votes
8y
That has been my experience. Anybody else want to pipe in? In fact, the whole reason I began offering transactional funding is because I USED to do short sales, REO, and wholesale flips using the C Buyers funds. Then that all came to a crashing halt about 2008-2009. So, I had to find private lenders to fund my deals. I figured that if I needed to find lenders, then so does everyone else doing that type of investing. That is when I switched up my business model.
I say MOST because there are still some title companies which will still pass through the funds from the C Buyer to the A Seller.
Wholesaler · Excelsior Springs, MO · Member since 2017 · 32 posts · 5 votes
8y
@Shari Peterson I've heard the argument go back and forth both ways. Some say those days are over while others say they're still doing it. If it's not doable in the KC area, that kind of puts a damper on my plans as a new wholesaler since that's what I was taught. I guess I'll know more as soon as I talk to some of the ones mentioned here and in other places.
Lender · St. Louis, MO · Member since 2009 · 348 posts · 164 votes
8y
Don't let it put a damper on your wholesaling gig! You can use transactional funding or assign the contract. As a general rule, assign if the profit spread is less than 10%. Use transactional funding if the spread is higher OR is you cannot assign it because it is a short sale, REO, HUD or another non-assignable contract.