All Forum Posts by: Richard Prescott

First the transaction funds are not in escrow until the buyer's money is in escrow. The closing of A to B comes first then the closing form B to C comes next. Usually this is done on the same day and hopefully can be done back to back. 

First closing you are buying the property

Second closing you are selling the property. 

Be careful of the b-c funding a-b transaction. NC does not allow this. GA may or may not. You will want to contact a couple local attorneys and ask. Reason I say ask a couple Is that in nc one attorney will say something is fine, while another will say it's not.

If you do intend to do transactional as others have said you will bring the c buyer to the same attorney and their funds will need to be in place a day or two early. Then you'll come in the day of and sign the purchase, then 5 minutes later sign the sale docs including deed.

I pulled his from Harlan-law dot com.

I don't know these guys in any capacity, they just came up from a double RE closing GA Google search.

Pay close attention to #2.

Will you perform simultaneous or double closings? A Double Closing is the simultaneous purchase and sale of real property. In a typical double-closing scenario, a real estate investor acquires property from a seller at one price and immediately resells it to an end-buyer at a higher price. The difference between the two prices represents the profit to the investor.

Double Closings are also commonly-referred to as simultaneous, back-to-back, or same day closings. We have, and will, handle these types of closings under limited circumstances:

1. The end-buyer's lender must be specifically informed that the seller for their transaction is not in title; and they must consent in writing to the transaction.

2. Each half of the transaction must be kept fully separate and stand on its own. The initial acquisition must be fully funded and disbursed with money coming from and going to all appropriate parties. The end sale must also stand on its own. The proceeds from the sale can not be used to fund any portion of the acquisition.

Harlan and Associates will not handle any type of simultaneous or double closing if the first of the transactions is a short sale.

As a practical matter, double closings are only possible if the end purchaser is paying with either Hard Money or cash. Because assignment fees are also appropriate in most of these transactions, we encourage their use instead in order to save you the costs of paying for two separate closings.

Please understand that the circumstances in which a double or simultaneous closing would be appropriate are exceedingly rare, and as an investor you are probably better served by looking at alternate financing and investment options.

@Richard Prescott,

Georgia closes only with attorneys, and I have not come across one that will allow use of the end-buyers funds; so your thinking about using transactional funding is appropriate.  The transactional funder authorizes disbursement of their funds once the end buyer funds are in escrow with the same closing attorney.  They then close and record your purchase and immediately after close and record the Deed on your sale to the end buyer.  Fees for the funder and your profit are then disbursed from the second (your sale) transaction.

Because your purchase is being handled by the banks chosen closing agent I suggest you contact them soon regarding your desire to resale same-day.  Approach them with "I am going to resell this property and would like to give you that business also".  Be aware that some bank appointed closing agents will not want to do both transactions because their primary interest is in the relationship they have with the selling bank.  I have found that most in Georgia will do both closings.  If they will not you can possibly do a split escrow with the second transaction happening with a different closing attorney.  Most transactional funders will not allow this (the split escrow) but it is possible to accomplish.

@Richard Prescott You likely will NOT be able to fund the A-B purchase with the funds from C as was suggested previously.  Maybe in some cases if you have express written permission from the C buyer to do so, but probably not at all if they're using financing (lender won't likely allow it). 

You're better off using your own money to fund the A-B purchase, or (if you don't have the money) use transactional funding.

Just out of curiosity, how do you plan to put the house under contract initially? Since it's an REO, you'll have to write the offer in your name (the name you intend to close under) and show either proof of funds or pre-approval for financing.

@Wayne Brooks

  I see these deals that are bank owned getting a little stickier  I just closed one up in PA were the sellers title company  ( seller mandated) the people working the transaction were in India  it was a strange experience to say the least and there is no way your going to get any kind of back to back closing with a company like that.. you need the cash to buy then you need to open escrow at a different title company once you own it and resell.  won't be any flipping or back to back or any assignments with these new Virtual title companies that are springing up to help with OREO sales.. they could hardly make it threw my transaction.

@Richard Prescott Do you have an accepted contract on this yet?  If. Or, you may be a little optimistic, but  Do Not use the bank's closing attorney/title co., you can choose to use your own.

You are not assigning the contract right?  As far as the Seller is concerned, you are purchasing the property?