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Updated about 4 years ago on . Most recent reply

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Joey Soewargo
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Just wanted to fact check how double closing works

Joey Soewargo
Posted

If I'm not mistaken, double closing is essentially I enter a contract that includes person A - person B (me) that only involves the rights to the property not the property itself, then once that's complete, I would sell that contract from person B - person C. Usually this process takes about a couple days as well.

But if I were someone starting out with little to no liquid funds, this would mean I would have to approach a hard money lender willing to give me transactional funds to purchase the rights from person A, and once that is complete, I would sell to person C at a higher price that would help me pay back the hard money lender and earn a small profit at the same time.

I also was curious about where do the funds come from to receive a title search, inspection, etc. Does that come from me or the end buyer? or does it vary for each situation.

But what's stopping person C from reaching out to person A directly? 

What exactly makes the middle man (me) desirable?

What is my role as the middle man between the two (other than simply connecting them together)

I'd appreciate any input since I'm still starting out, thanks!

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