Property Wholesale with a Double Closing (Delayed Close) - Make Money at Closing Without Any Money Down and Without Credit
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Property Wholesale with a Double Closing (Delayed Close) - Make Money at Closing Without Any Money Down and Without Credit

Find out how to wholesale properties and use a delayed double close to get started in real estate investing without any cash and without any credit. You can find the deal and make the deal and turn the contract over to an investor for a profit. You can make this happen and start today.

What is property wholesaling? What is a delayed closing? How can I make money with this concept and is it legal. A double closing is exactly what it sounds like. There are two closings for the same property that happen on the same day, with the same lawyer and usually one right after another. It may sound confusing but it is really simple. Getting two closings coordinated on the same day for the same property is not simple but the actual closing process is simple you just might have to do it twice.

So, here is how it works and how you can make money with this technique. You do all the work of finding a property. You can put out signs, you can drive neighborhoods, you can call For Sale by Owners or any other means to find a property you might buy for a deal. Once you find the right property you get the owner to sign a contract with you for the price you have agreed on. This is the part that trips most people up. Yes, you have to sign a real estate contract for the purchase of that property. You have to give something for consideration (earnest money) and your offer is for cash.

How much earnest money is up to you, if it is a private party sale you can usually get away with anywhere from $20 to $100. The contract is not binding without some type of legal consideration. Now, I just said the contract is binding and it is. But you don’t want to purchase a house you want to sell your contract to someone else that has the credit or the cash to make this deal happen. You will need someone, or a list of buyers, already lined up that you set up deals for. Sometimes, if the deal is good enough and the property has never been listed on the MLS the deal will market itself. For instance, you find out that your neighbor’s grandmother died a few years ago and he inherited her house. He tells you it is worth $80,000 but he doesn’t want the house and is just tired of paying the taxes. You make him a cash offer for, $40,000 knowing the property will need some repairs. You know that after the repairs the property could sell for $100,000. Now you sign the deal and start looking for a buyer. Your second deal is with an investor that is willing to pay you $50,000 for the property.

You can see where I’m headed. You set up two closings. It is called a double close. You sit down with the original owner and ink his deal for $40,000 and then leave the room and ink the second deal with another buyer for his deal of $50,000. The original owner gets his $40,000 in cash and you keep the difference. The investor pays all of the closing costs and gets a property worth $100,000 for only $50,000. This might sound easy but there is a lot of leg work and you have to disclose to both parties what is happening. Also, there is the idea that you might not find a second buyer before your first contract is up. If this happens you can negotiate a longer closing date or you can let the deal fall through and lose your earnest money and possibly your reputation.

If you do your homework and have an investor in mind before you sign a contract then things a likely to go in your favor. Depending on how good your first deal is will determine how much you can make on the second deal.

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