Double Closings Transactional Funding Real Estate Investing [E-101]

Double Closings Transactional Funding Real Estate Investing [E-101]

– Are you closing doubles? On this episode of Title Tuesdays. (upbeat drum music) – Hi everybody, welcome
back to another episode of Title Tuesday’s. My name is Kevin Tacher,
the Founder and CEO here at Independence Title. Also known as your title king. Today we are talking
about double closings. We often get asked at investor meetings, do we handle double closings? There are so many title companies
and real estate attorneys here in the state that are
afraid of double closings. They always think double
closings are illegal. What is a double closing
and how do we handle it? We’re gonna talk about on today’s episode. So, first I want to give
you a brief overview of what is a double closing? Very simple, two closings. Sometimes you can even have a triple and it’s three closings. And the art of the closing, as I talk about in several
other of our videos, is how do you handle the closing? You need to make sure they close independently of each other. So, in other words, we’re not
using the end buyer’s money to fund the first closing. We are making sure that these deals, should there be a title claim, are handled independently of each other. So, closing A will take place and then closing B will take place. So, what are some of the
questions we get asked? Well, the first one is how
do you record the deeds? So, the easiest answer
is we use e-recording. So, the good part of this
closing is if we’re handling both closings here at Independence Title, it makes it a lot easier. We’ll record the first deed and then as soon as that deed is recorded, which is typically the
same day or the next day, we’ll then follow up with the second deed. Another question we get asked
is do I have to put money up? And the answer to that is yes. As I said at the beginning of the video, all deals must be closed
independent of each other, which means closing A must close cash. I know what you’re
thinking there, investor. I don’t have the money to
close, and I understand you. You do not need credit,
you do not need income in order to close. We are able to arrange what’s
called transactional funding, or flash funding. This is where an investor that
works with the title company will be able to fund your
transaction and give you the money you need to close. As an unsecured loan, you do
not sign a mortgage or a note, and then on the second
closing they get paid back as an unsecured payoff. We issue title insurance to closing A, and we issue title insurance to closing B. So, many times a lot of
the new investors are getting involved in wholesaling. This is a great way for you
to get into the business because you put a small deposit up, the title insurance will cover you, and you make sure that you
get a transactional funder to fund your closing. Then, on the second closing,
you now become the seller and now you’re going to
get all of your money back, your deposit, your profit,
and the money that was used to transactional fund will be paid off on the second closing. So, is it illegal? Absolutely not, we would never do anything to put our clients in jeopardy or put our license in jeopardy. It just has to be handled
with a certain level of care. You have to be able to
navigate the closings to make sure closing A is
separate from closing B. We talk to closing A about closing A, and we talk to closing B about closing B. Where does the caveat come
in to where we are not able to do a double closing? That’s when we’re dealing with
some bank-owned properties or short sales that
have a deed restriction. That’s where a lot of
times you hear it’s illegal because there’s a deed restriction which means you as the buyer
of the property from the bank, or the seller that’s going
through a short sale, are not allowed to sell the
property for 30, 60, or 90 days. It’s a very unique. We don’t see that that often. It’s a unique technique that
the banks use to make sure they can maximize their profits, cause we know they do not like investors. But we see that less and less nowadays, and a lot of times what
they’re doing is putting in a deed restriction for a certain price and that price usually falls within your wholesale profit. So, usually you just can not sell it for a certain percentage more, maybe 125%, where usually that does
not cut into your profit. So, as always, I hope you
learned something new today when we’re talking about double closings, simultaneous closings,
transactional funding, double, triple, quadruple closings. It doesn’t matter how many times you’re gonna sell the property, as long as you do it properly. So, don’t forget to subscribe below. Our new text code, we’re
putting the information on all of our videos. This is where you can join our VIP list and you can get access to all
of our videos one day early right to your smartphone. We’ll send you a text message every Monday with our new videos before they’re even released to the public. So, we’ll put the information below, you see it flashing on the video. Thanks for watching this
episode of Title Tuesday’s. My name is Kevin Tacher, signing off, and I look forward to seeing
you at the closing table. (ambient music)

3 thoughts on “Double Closings Transactional Funding Real Estate Investing [E-101]

  1. Independence Title was able to successfully closed my double closing last month and save my deal! They Really do have the knowledge and professionalism to do so.

  2. Do you have escrow and do you provide the funding for transactional funding? Do you have an Attorney on site to help when if needed?

  3. Can I use your title company? I am in Missouri.

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