Double Closing Incidents

HOLLERatG profile photo

It hasn't happened yet, but the possibility is there, so I'm curious.

Has anyone been put into an awkward situation at a double close when the buyer found out he just paid thousands more than you did for the house he just bought from you? What was his reaction?

It's the one thing that initially scared me about double closings. I'm sure it has happened once or twice. A friend has told me she sticks to assignments because she feels "slimy" sitting at the closing table knowing she's there because she "finagled" a higher price out of the buyer.

Not sure I'd go that far, but what are your thoughts or experiences?
[addsig]

Comments(6)

  • Taiyo24th May, 2004

    I have never had a issue regarding Double Closing. Normally my Buyer does not know what I paid. I can hide the Sales Price through Escrow. It is still public information, but you have to do a lot of digging to find it.

    That said, I do not make my profit by selling over market to my end user. The property is still within Comps. My profits are derived from hard negotiating with the Seller.

    The issue I have with my Sales Price being known is that I maybe doing several Investments in the same area. I do not want my Sales Comps to be used against me.

    Taiyo

  • tinman175524th May, 2004

    You don't need everyone there at the same time. Schedule both closings on the same day but at different times.

    Lori

    NO ONE KNOWS ANYHING, THAT WAY
    [addsig]

  • bgrossnickle24th May, 2004

    I have not yet done a double closing, but unless your end buyer is paying cash, he will know that you are doing a double close and probably know what you are getting on the first close. I do not think that many loans will get through underwriting without noticing that you do not currently own the property. And most title companies and lawyers will not allow you to fund the first close with the proceeds of the second close without full disclosure.

    If the end guy is paying cash then who cares what you make on the deal as long as the end buyer is not over paying.

    Brenda

  • InActive_Account5th June, 2004

    Don't worry about it. Do you think realtors worry that they just took thousands from a seller for a couple lousy showings. You earned it. so what if they know. We're all grown ups.

  • JohnMerchant5th June, 2004

    A layman is often confused by thinking that in a double-closing, everybody is sitting around the table at the same time.

    In real life, everybody just shows up at escrow at his own time and convenience and goes into a conference room with the escrow person and sign the docs intended for him...so nobody really knows what others in the "other/simultaneous" deal are doing, have done, etc.

    In fact, it's quite common for seller B to sign his deed BEFORE it's even deeded to him by seller A, and escrow pays little attention to the order in which everybody signs.

    The really crucial timing issue is the order of recording of deeds of trust or mortgages, as in "race recording" states the liens on a property are legally in the order in which those deeds of trust or mtgs were recorded.

  • jbinvestor6th June, 2004

    When I first did it I was more concerned with the seller knwoing that I left the table with a bigger check than he did.
    Now I just tell the sellers "You know "Jim" I may or may not be the person who actually buys and rehabs the property, but I will fullfil all the obligations I just put in writing and take the house off your hands at the price we agreed upon".

    This works for me.

    As for my buyers, they know or should know if I'm an investor and I've got to make money. If the price they're buying it from me is a truley great deal, then they should not even be concerned with how much I'm making..if they are it's time to find a nother buyer who understands he is not the only investor here.

    JB
    [addsig]

Add Comment

Login To Comment