Double Closing: A Real Estate Wholesaling Strategy That Works

You are about to learn all about how to double close a real estate deal and increase your profits as a wholesaler. 

This comprehensive blog post covers everything you need to know, including the benefits of double closing, the steps involved, and the potential risks. 

Are you a real estate wholesaler looking to increase your profits? 

If so, you may want to consider double closing. 

Double closing is a real estate transaction in which the wholesaler purchases a property from the seller and then immediately resells it to an end buyer; often within a few minutes. 

This allows the wholesaler to earn a profit on the deal without having to take title to the property or pay any closing costs.

Double closing is a relatively common real estate transaction, but it is not without its risks. 

For example, if the end buyer backs out of the deal, the wholesaler could be stuck with the property.  But not really; inside the coaching program, we show you how to protect yourself regardless. 

Additionally, double closing can be more complex than other types of real estate transactions, so it is important to hire a lawyer and title agent who have a good understanding and experience of the process before you attempt it.

Again, not you in particular; you just need to make sure you involve experienced title agents and attorneys in this type of transaction.

One of the biggest problems that real estate wholesalers face is finding a way to close deals quickly. 

If a wholesaler takes too long to close a deal, the seller may become impatient and decide to sell the property to someone else.

This can be a major problem, as it can mean that the wholesaler loses out on the profit.

Double closing is a great way to close deals quickly. 

By purchasing the property from the seller and then immediately reselling it to an end buyer, the wholesaler can close the deal in a matter of days or even hours. 

This is a major advantage, as it allows the wholesaler to quickly turn a profit and move on to the next deal without incurring the typical cost of owning real estate.

3 Benefits of Double Closing:

There are several benefits to double closing real estate deals. These include:

1. Quicker closings: 

Double closing allows the wholesaler to close deals quickly, which can be a major advantage in a competitive market.

2. Increased profits: 

By purchasing the property from the seller and then immediately reselling it to an end buyer, the wholesaler can earn a profit on the deal without having to take title to the property or pay any closing costs.

3. Less risk: 

Double closing can help to reduce the risk of the wholesaler losing out on a deal due to potential restrictions from hard money lenders. 

If the end buyer backs out of the deal, the wholesaler can simply resell the property to the seller.

5 Steps Involved in Double Closing:

The steps involved in double closing a real estate deal are as follows:

• 1. Find a motivated seller who is willing to sell their property quickly.
• 2. Negotiate a purchase price with the seller.
• 3. Get the property under contract.
• 4. Find an end buyer who is willing to buy the property at a profit.
• 5. Close the deal with the seller and the end buyer.

Potential Risks of Double Closing:

There are a few potential risks associated with double closing real estate deals. 

These include:

The end buyer could back out of the deal especially if you don’t know what you are doing. This is a major risk, as it could leave the wholesaler and/or seller stuck with an unwanted property.

The wholesaler could be sued by the seller. If the seller is not happy with the terms of the deal, they could sue the wholesaler.  Again, this is only true if you don’t know what you are doing.

The wholesaler could violate any real estate laws or regulations if not done properly. It is important to make sure that the double closing is done in accordance with all applicable laws and regulations with the help of professionals as mentioned earlier.

4 Tips for Double Closing Real Estate Deals:

Here are a few tips for successfully first double closing real estate deals:

1. Do your research. Before you attempt to double close a deal, make sure that you understand the process and the potential risks.
2. Find a good real estate attorney. A good real estate attorney can help you to protect yourself from legal liability and ensure that the deal is done correctly.
3. Be transparent with the seller and the end buyer. Make sure that both parties understand the terms of their side of the deal and that there are no surprises.
4. Be prepared to walk away. If the deal is not going to work, be prepared to walk away. This will help to protect you from financial losses.

Double closing is a great way to close real estate deals quickly and increase your profits. However, it is important to understand the process and the potential risks before you attempt it. 

By following the tips in this blog post, you can increase your chances of successfully double closing real estate deals.

Are you ready to take your real estate wholesaling to the next level? Join our masterclass and access comprehensive step-by-step guidance and valuable resources on double closings. In fact, you get 3 free books as soon as you register for the class.  Click here to learn more:

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