How to Do Double Closings with Transactional Lending
to close more deals in 2018
As a professional investor, one of your goals should be making a good profit using as little of your own money as possible to get your returns back in the fastest time possible thereby increasing your rate of return.
A double closing, sometimes called simultaneous closing, is a back to back real estate transaction purchase and sale of a property involving three parties:
1. the original seller,
2. an investor, and
3. the final buyer.
IT’S NOT MAGIC ONCE YOU KNOW THE TRICK
Double closings using transactional lending is an easy way to generate fast cash in real estate. Like other creative real estate techniques double closings can be done legally but it’s the misuse of them that is illegal. A common reason why real estate investors are attracted to double closings is the belief that the investor can use the final buyer’s funds to acquire the property from the original seller. Another common reason for a double closing is to conceal the identity of the purchaser or the seller and/or to conceal the sales price of each transaction.
A rate of return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment's cost. Gains on investments are defined as income received plus any capital gains realized on the sale of the investment.
New disclosure laws forbid “dry” simultaneous closing, meaning the investor must purchase the property before it is sold. In other words the property must be funded from the investor to the seller so that the transaction ‘stands on it own’. Using transactional lending you can make each transaction a separate stand-on-it own closing. Here’s how the process generally works:
You enter into a contract to purchase a property from the seller and then, before closing on the property, you enter into a contract to sell that property to another buyer for a higher price. You then utilize a double closing to close both transactions at approximately the same time using transactional lending.
BRING IN YOUR REI DREAM TEAM
This real estate technique is not practiced at all title companies or by all real estate professionals. If not practiced often the transaction can be rusty at best. It is always best to build your investor dream team with professionals who are in the know and up to date on creative investing. So use your investor finance for transactional lending team combined with an investor-friendly closing agent from a reputable title company.
When we say “investor-friendly” we mean the professional is familiar with and specializes in working with investors. Like an investor-friendly real estate agent and an investor-friendly tax accountant.
In a conventional real estate sale, closing day is the day when the documents are executed by all the parties in the real estate transaction and the real estate sale (and loan) is completed.
An investor can use transactional lending that is more flexible than traditional lending in place of a long-term conventional mortgage for your first closing so you don’t lose your paycheck when the title company says no to a “dry” simultaneous closing.
RARE TRAINING ON DOUBLE CLOSINGS
Explained in the accompanying Investor Guide to Transactional Lending, is the wide variety of property types, commercial settings and extreme cases like rehabs lending can be used with. Plus a detailed 10 step Transactional Lending diagram and a question-answer section.
Get this in-depth training on the correct ways to do double closings using transactional funding to from investors who are doing it now:
- The best deal structures to give you options
- Using other people’s money to make more money
- The importance of Building a Buyers List explained
- Things that you should do to smooth out a transaction
- What to expect and how to deal with potential problems
- The insider’s view on this technique – nothing held back
- Find deal structures most suitable for simultaneous closings
- MUST HAVE additional provisions for your purchase agreements
Here’s what you get…
Investors Guide to Transactional Lending
Intermediate to Advanced
Strong desire to maximize ROI
Enthusiasm for learning new things
Team of professionals in finance and closings
Attention to details (all details in this training are important!)
Some fundamental or technical knowledge
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I have worked with Amber on multiple occasions and she is my favorite title and closing agent. Her experience is a huge plus for investors who like to get creative. She navigates it all and has even more suggestions for creative deals.
– Brad McDaniel
MEET THE PRESENTERS
Amber Gaskill graduate of Northwood University in Business Administration, Accounting and Finance Amber is a title and closing escrow manager for Trademark Title Inc. Skilled in FHA Foreclosures Real Estate Buyers Short Sales Refinance Investment Properties Mortgage Lending Sales Residential Mortgages REO VA loans USDA Investors Real Estate Transactions Underwriting Escrow HUD Loan Originations Real Estate Financing Commercial Real Estate
Bill Ledger is a long-time Indiana REIA™ member, investor, and real estate wholesaler working exclusively in the Allen County area. “Currently, I am wholesaling investment grade single family houses to other investors who plan to fix and flip or hold and rent. I’m also a licensed architect and project manager with a local architecture and engineering firm.” You can connect with Amber and Bill in the Member Directory and at the Fort Wayne REIA meetings.
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