Looking to Double Close REO Cash Deals in L.A. area

[Brian Crowe]

I'm looking for info on Double Closing REO cash transactions in Los Angeles. I'm active in FL but would like advice for CA law. Anyone know Title co. that will do Doubles in the L.A. area?

[Will Barnard]

First off, lets clear some things up here so we can all be on the same page, then give proper advice.

"Double Closing" is a general term and not specific enough as a double close could mean a wet closing (also named a simultaneous closing) or a dry closing (also called a back to back closing) where each transaction stands on its own merit.

The wet closing is when you use the funds from your end buyer (party "C") to fund the A-B transaction (A being the seller and B being the investor/flipper. This is not going to happen in many counties of CA and in any that still possibly do it, you will have a tough time finding thme these days.

That leaves you with a dry closing which requires your funds (or that of borrwed funds) to fund the A-B transaction, then the B-C transaction (a completely seperate escrow, funds, and title) is closed. You can use transactional funding to perfomr such closings if you do not have your own cash.

One of the hurdles is when some counties do not allow for funding and recording on the same day (such as Los Angeles County for example) As such, a simultaneous closing is out of the question and a back to back dry closing will take a few days. If the end buyer is not all cash, you have an even bigger problem (the OG post stated all cash buyer so I won't go into that here)

All that said, it makes much more sense to wholesale a different way here. I recommend that any contracts be locked up in the name of a new or existing (non current asset holding) entity or in the name of a trust. Then you simply sell that entity to your end "C" buyer or in the case of the trust, you name that buyer as the beneficiary and you as the trustee and charge them a trustee fee. Or, if your buyer is not locked up in time, you assign the beneficial interest to your new buyer for a fee and that document gets recorded with the county recorder's office (you can run into transfer taxes this way)