Double Close Without Transactional Funding

[James Caruso]

So I am just getting started in wholesaling and mainly interested in doing double closings. From most of my research here, I see most say they need transactional funding to make this work.

This is contrary to other information I have heard, for example on the BP podcast, where they say you can use the B to C transaction to close the A to B.

Any clarification on how to go about this? I know in my state we have to use closing attorneys, instead of title companies (if it makes any difference).

[Will Barnard]

Originally posted by @Alex Capozzolo:

In California, double closings are exactly how you described: using the funds from the B-C transaction to fund the A-B transaction. I would start by calling 20 different closing attorneys in your area and asking them if they have experience working with Real Estate Wholesalers, then explain the process of the double closing to them, and if they can perform. Good luck !

Not true at all, in fact most counties in CA require 2 days to close (funding day one, recording day two). Secondly, I don't know of a single title company that will do a "simultaneous closing" in CA (a double closing is when buyer B funds the A-B transaction with their own funds then the B-C transaction closes with its own separate funds). Simultaneous closings were common in FL but even there they are becoming less and less (if they have not gone away all together by now with the new laws/regulations).

People mix up these two terms all the time and it is important to understand there is a huge difference between them.

If you want to wholesale legally, be prepared to fund your purchase with your cash or that of bank, private, or transactional funds then resell to your new buyer.