Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Wholesale Real Estate Investing: Simultaneous Closing

By Simon Macharia Subscribe to RSS | December 29th 2011 | Views:
loading
 
  



When you are involved in real estate investing buying your houses from motivated sellers, you sometimes find that you cannot manage all the properties yourself. You have to sell such properties at wholesale prices to other real estate investors.

This is called wholesale real estate investing.

In simultaneous closing, also called double closing, you buy the property from the seller, then turn around and sell it to your buyer, usually on the same closing table. Your profit is the difference between your selling price and buying price minus any closing costs.

So when do you do a simultaneous closing?

If you stand to make a sizable amount from the deal, you do not want the seller or your buyer to know. It is common for them to walk away from the deal after getting cold feet.

Simultaneous closing is an excellent option to prevent this.

How does it work?

1) Sign the contract to buy

Once you identify a good deal, put the contract under contract to buy from the seller. Fax this to your title company or closing attorney to do title work.

2) Sign contract to sell

Get a real estate investor who buys houses in your area. Put it under contract with you as the seller and they as the buyer.

Of course, your buying price must be lower than your selling price to make a profit.

Fax this second contract to the title company. You must collect earnest money when you sign the contract.

3) Close the deals

The closing company will then prepare two closing statements (HUD1), one where you buy the property and one where you sell it.

Each transaction has its own closing fees. Usually, your buyer brings money to the title company, which is also used to close the first transaction where you buy.

If your buyer borrows money from a lender, the lender must agree to have the funds close the first transaction. You walk away with the difference between the price you sell it for and the price you buy it for less your closing costs.

Notice that neither the buyer nor the seller knows how much you make in the transaction.

Advantages and disadvantages of simultaneous closing

There are two closing costs in simultaneous closing, one when you buy and one when you sell.

The lender for the second transaction can refuse to have their money to be used to close the first transaction. This means you must find a way to finance the first transaction.

Unless you have ready cash to finance this transaction, you might have to get transactional funding from a hard money lender. Transactional funding never leaves the closing table and just allows you to close the first transaction.

You must therefore account for this cost in your profits.

If your buyer is using a conventional lender, the lender may require that you own the property for at least 90 days. Such a buyer cannot support a wholesale deal.

When all is said and done, simultaneous closing is a great way to wholesale properties and walk home with big pay days.

Simon Macharia - About Author:
In successful real estate investing, you must be able to sell your houses quickly to stay in business, especially in a slow market. Learn how an interactive website for real estate investing can help you sell your houses faster by creating a buyers list and using the power of social media to reach many buyers in your market.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/real-estate-articles/wholesale-real-estate-investing-simultaneous-closing.htm

Related Real Estate Articles Subscribe to RSS

Find a house or flat to rent with estate agent.
Published by Glyn Jones on July 4th 2012 | Real Estate
When you are looking for flats or houses for rent or for sale, you can simply go with the estate age...
 
Need of estate agent in real estate investment
Published by Glyn Jones on December 20th 2011 | Real Estate
When you are looking for some property dealings, there is need to consult some very good estate agen...
 
Central London estate agents see strong international demand
Published by John M. Alcorn on February 18th 2012 | Real Estate
Despite a general slowdown in the UK property market, central London estate agents are still witness...
 
Port Washington real estate is a prime location to invest
Published by Jack Smith on July 16th 2012 | Real Estate
Port Washington real estate is a place that attracts everyone whether as a buyer of homes or as inve...
 
Select the correct estate agents.
Published by Matthew Watson on August 18th 2012 | Real Estate
Deciding on the right real estate agent can preserve you a lot of time, income and headaches. They w...
 
Jacob fox real estate agents
Published by Glyn Jones on July 17th 2012 | Real Estate
Real Estate Agent or Realtor is a person certified within a specific state to help and support peopl...
 
Some critical points to consider with estate agents
Published by Glyn Jones on January 19th 2012 | Real Estate
The estate agents can be much helpful with the real estate investments. So you are to be very carefu...
 
Looking for an estate agent
Published by Glyn Jones on May 10th 2012 | Real Estate
Is it advisable to work with several agents, probably not. Agents know if you are working with more ...
 
Attributes of a good estate agent
Published by Glyn Jones on May 24th 2012 | Real Estate
Canary Wharf Estate Agent, Rent Canary Wharf, Canary Wharf Estate Agents, Docklands Estate Agents...
 
Explore real estate companies for housing accommodations
Published by Abhay Singh on December 30th 2011 | Real Estate
We have to move to many places in our entire life span, sometimes in search of better education, som...
 
Consult an expert only to ensure best real estate investments
Published by Jennytoedt on April 17th 2012 | Real Estate
Escalating estate prices have given good returns to its customers, provided the property has been ch...
 
Playa Del Carmen real estate – the right buy for Retirees?
Published by Tom Budniak on December 27th 2011 | Real Estate
Whenever a retirement destinations of international quality are discussed, one name that features am...
 
 
Gain more insight on making investment in real estate
Published by Mike Nicholson on January 30th 2012 | Real Estate
In this article, I will explain the basics of real estate investment. Let’s start with the definit...
 
Real estate – Definitely a money-spinning investment
Published by Deepti on May 22nd 2012 | Real Estate
Nowadays people have become cautious that living at own home is far better than a house on rent. It ...
 
Two popular loan types offered in real estate Malaysia
Published by Rick Foster on March 28th 2012 | Real Estate
Home buyers usually find it difficult to arrange the funds that buying a new home requires. Many a t...
 
Find realtors, and real estate market advice on my-realestates.com
Published by Samuel on February 3rd 2012 | Real Estate
The largest directory of real estate brokers on the internet now makes it easy for you to find real ...
 
The attractive features of the commercial real estate investment organization
Published by Ema Sis on July 25th 2012 | Real Estate
The commercial real estate investment usually are rising demand since the commercial property is usu...
 
Cape Coral real estate has no comparison
Published by Anne Mary on January 11th 2012 | Real Estate
Cape Coral stands comparison with any other city within the state of Florida. They might all have th...
 
Port Washington NY Real estate is a boom for investors
Published by on July 14th 2012 | Real Estate
Investors whether they are small or big, always looks for an opportunity and many of they are contin...