How is a double closing done?

Question

I wish to buy a home, but complete a double closing with me purchasing and another buyer paying the owner, how is this done?
I also wish to refinance and take cash out, how do I do this? I already have a contract for 179 and I need the refinance money......

Answer 1

Most people who are looking to sell and buy aren't looking to refinance to cash out money. Usually the money they need will come to exist when they sell their house (less their loan amount) which is used in whole (or part) on their next home. Sometimes a seller can time it so that the sale of their first home closes on the same day as the closing of their new home, but it really isn't necessary since you can allow yourself extra time between the two transactions to move.

When you don't have a contract on your house for sale and wish to buy another house, you merely write an offer on the new house contingent upon the sale of your old house. Your existing contract on the old house give you as much bargaining power as anyone else, but you still must include the same contingency because the sale has not closed.

Answer 2

This is a simple matter and has been apart of the real estate indusry for quite awhile.

The property you want to sell and have someone else pay for, place it under contract and immediately open an escrow or find a closing agent. This closing agent should know that funds from another closing agent will be the factor in this transaction closing.

Make sure you have a signed document telling the owner that you will be seeking a buyer and could possible engage a different escrow or closing agent to accomplish this closing. This contract should certainly have the sales price at the very minimum, along with several contingency plans.

Now that you have the property under contract and has engaged a closing agent or escrow.

Find yourself a buyer that can come up with the necessary funds to accomplish what you want to do with the purchase of the property.

If you plan to pay off the old owner and have cash to you the contract for your new buyer should read this this transaction closes with full cash.

Now find a closing agent or escrow, make sure that this closing agent understand that this transaction is inconjunction with another escrow and closing agent and funds must be transferred in order for that transaction to close, after which final closing will be done through this escrow.

Now for example you have found a house for sale, you make a contract, get it signed and open escrow. Now say for the sake of this argument that the sales price is $250,000, the owner owes $125,000 balance to the lender. You promise to give the current owner $75,000 to complete the sale.

Now your new buyer has to come to the table with $250,000 to close the transaction which he will place in the second escrow. Now in order for the 1st escrow to close the 2nd escrow must transfer the minimum of $200,000 to the 1st escrow.

Since everyone understand closing or escrow agents all documents are signed by the seller and buyers in both escrows. The old seller conveys his deed to you in this first escrow.

Once the funds have been transferred to the 1st escrow to close it in fact closes and if there are any funds remaining they are transferred to the 2nd escrow.

Now that you own the property you can now legally transfer the property to the new owner. With the close of this escrow you will realize a windfall of $50,000.

Now this was an example of course you know there will be certain fees and other charges in connection with any real estate transaction.

There are escrow closing, title, insurance and interest payment that I did not add into my example.

You should check with an escrow closing agent before attempting this type of transaction, some states have out lawed them or require the signed form I discussed in the beginning.

Used properly this can be a very important tool to close many transactions that you don't have the necessary funds to close.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

It can be done, but it's a little complicated to explain everything here.
Your real estate agent will explain everything to you and help with all the details.
If you do not have an agent, this is a perfect example why you should have one. A lot of people think they can buy and sell real estate themselves. Fine, if you know everything, why ask a question? If you do not know, why are you doing it without an agent?
I'm not talking about you in particular, I'm saying that anybody, who is not very experienced in buying real estate must use a good agent.

Answer 4

Hey girl, look. I've been reading all of your questions and it seems to me like you make money in Real Estate by working the "Grey Areas" you know what I mean. I'm not knocking your creativity when it comes ot making money in real estate, but I'm just trying to see where your coming from to see if maybe I can help you. I am a broker. One of my specialities is investor relations.

Answer 5

Don't know what state (or country) you're in, but why would a person let you buy a house that they are paying for? They may want to rent to you and be your landlord, otherwise, they may want to be on the title with you, if you're bringing any funds to the table.