Double Closing
Thank you for answering my last question. But I am a little confused, I called the Title Co. and they told me it is not legal for me to put someone under contract and get paid at closing. She said I would have to do it outside of closing. And I also heard of a DOUBLE CLOSEING, how does that work? Please help. :-(
Double closing=closing consecutively. Ex. Close from party #1, which makes you the buyer, at 10:00am then close from party #2 at 2:00pm which you are now the owner/seller.
If I am am wrong I am sure I will be corrected.
I would like to know if you need money at closing if you are doing a double closing? Do you just tell the title company that you are doing a double closing? Do you think it will be easier to close under a real estate agent? Thank you in advance
I think it is going to be increasingly difficult to do what we think of as a double closing. I believe that what you are going to have to do is have back to back closings possibly.
The challenge comes is that you are selling something to the second person that you don't legally own yet. Closing attorneys here in Georgia are becoming less and less willing to do that, lest a problem arises.
What some folks here do is get a hard money lender to close the first deal and then you can close the second. Eats up some profits, but makes a cleaner transaction.
Hope that helps.
GA_John
Double closings are frowned upon not because of the ownership issue mentioned above, but because when you are buying the property in the first closing you are using the funds from the second closing to fund it.
Funds which you dont have yet...ghost funds I call it. And ya most if not all Ga attorneys won't be a part of it because it isnt legit.
So the answer, like above is to get hard money for the 4 hours between closings.
If your deal involves a HUD 1 type loan, it's ILLEGAL and fraudulent to, in any way, falsify same, by saying it's buyer's cash to be used in down payment...if it's not true.
So if that's what's really going on here, I"d advise you to back out and kill this deal right now. Just not worth the potential risk of committing a Federal felony.
Oh! Thank you very much for the heads up. That is what Ron Legrand said at his seminar, so that is how we structured this deal.