Double Closing...step by step...help

[Kenny Lewis]

Hello BP,

I am educating myself to become a wholesaler. I know the basics of it but I would like to know a more step by step explanation on double closing. What all is needed from start to finish. I get the basic premise of A-B then B-C...but I want to know exact steps that actually happen with a double close. How much out of pocket costs? Do I need proof of funds in order to close with seller? Will I have to purchase title insurance even though ill have the title for 5 mins. Can I use the end buyers money to fund closing? Whats the process with escrow and deposits? I know the title company manages the escrow and paperwork but I want to ready myself for what actually happens step by step.

so,

How do I close with seller?

How do i then close with end buyer?

Can i close with end buyer first then use those funds to close with seller?

step by step process...thank you

[Sabrina Kane]

So heres how it goes-

1. Find a potential deal by using the many ways of online and offline marketing to find a motivated seller

2. Once you find and talk to a motivated seller, do your due diligence and make its a deal, by evaluating the offer price, seller asking price, repairs needed, the value of the home after repairs are done (ARV)
Calculate how much you want to make on the deal and also calculate your end buyers need to profit as well. If the deal has enough spread to be wholesale and everyone is happy move forward. If the deal is tight because the owner is upside down on payments you will have to think about using another exit strategy like a subject to. Since we are talking about wholesaling i will stay in this lane and lets say the deal looks good to be wholesaled. Move forward.

3. Make your offer to the seller

4. Seller may counter your offer

5. Counter back to make an agreed purchase price.

6. Go see the seller or send the contract using docusign. Get the contract signed .

7. Decide if you will double close or simply assign the deal and use none of your money. The new buyer will pay closing and his money will be used to close the deal. The seller profit will come from the new buyers money and your wholesale fee as well.

8.A If you double close you will need to make sure you have a buyer lined up at the closing table. You will by the property from the seller at 1pm for the agreed amount of $70K and use money from a transactional lender. They will lend you money for a few hours to close and you will pay them back plus interest once you resell the property to your end buyer. Make sure you have a buyer that locked in the deal . You will close with the end buyer at 3pm. For the agreed amount of $80k. You keep the difference in profits after the lender is paid.

8B If you are not doing a double closing just assigning the deal you will find the buyer to buy your deal for the same 80K only this time, at closing its the seller/homeowner and the new buyer at closing you are not at closing unless u want to be. The buyer pays closing cost because those were the terms in your contract. At the end of closing you go pick up your check.

The proceeds are like this in simple version

Homeowner owes 50k on there home.
They are asking 70k (means they want to profit 20k)
You agree because the number make sense.
You find a buyer that will pay 80k - you ask the buyer to lock in the deal with a $2k deposit .
The closing cost is $1k

The buyer will a check to closing for $80k plus closing cost .$1k

The title company will take the 80k and
Pay off the 50 loan the seller had
Leaving 30K

Of the 30K
20 goes to the seller
Leaving 10k that goes to YOU

The buyers pays closing cost and is credited his deposit back (that 2k that he locked in the deal with)

You now skip to the bank and cash that check !!!!