SHOWING A HOME IN A DOUBLE CLOSE

you need a non-circumvent agreement; you can google it and you'll find plenty of templates to download.

Learning and progressing every day,
Valerie

Thank you Valerie. I have one saved and I with any luck, my cash investor and I will be signing it on Wednesday.

If you tell your cash buyer that you will have many more deals for him in the future if this one works out, and you build a relationship with him, you won't need an agreement in the future, because they will not jeopardize losing the deals.

The truth is that even with a non-circumvent they can still go around you, and you would have to take them to court, etc. etc. so I would say something like, 'do you mind signing this agreement that my attorney prepared...'?
Even if you don't have an attorney, at least they will think that you do and be less likely to cheat you

Learning and progressing every day,
Valerie

Just a quick thought for you. Make sure that you have the prop locked up on contract before you list it on CL. You want to remain very credible here. The last thing you want to do is advertise a prop that you don't have on contract. Bad news travels fast in this biz and your reputation could take a hit. Just be up front and truthful with all you are working with and the pieces will fall in place. Much luck to you...Jan

Thanks for the tip!

I made the offer today, and I will be sure the offer is accepted before I advertise it.

Is there a way to get it under contract before I have a buyer on a double close?

I constantly work to make sure that everyone I come in contact with knows that I am honest and I will do just as I say.

I believe my reputation and credibility are the MOST important part of my business.

are very correct. Don't get caught with ads you can not back up on CL or equivalent.
Plus the non-circumvent forms are less than fool proof. They put a little bite in their minds but if the investor is wanting to they can wait you out. You are not watching them 24/7 and they can fix it so you lose it if they are that shady and get it on their own for less. Build your rapport is the best solution or hope for the best.

As others have said on this topic. If you are doing this locally do your best to show the property with as few as possible parties of both sides and gently keep the showing moving to where they don't have an over abundance of time to yack. It is hard but control control control of things is key .

Is there a way to lock up the property on a double close without having a buyer in place?

First you get the property under contract in your name. This is the b in the a to b closing of a double close. The a is the seller. In the second part of a double closing you are the b the seller and the c is your buyer. Two closings hence the term double close. The a to b and then the b to c done the same day hours apart in most cases. Usually the b to c comes first so the a to b can be funded by your transactional funder or your buyers money. So there is no way to do a double close without a real cash buyer in place under contract in advance.

Michael Mangham
MD Home Acquisitions LLC

So I submit the offer and sign the purchase agreement.

Then I use my inspection period to show the house?

Will I need earnest money at the signing of the PA?

If so, is there any way to get my end buyer to pay the earnest money when dealing with an REO?

I made my offer with e-mail to my agent, so I haven't signed the offer yet.

I would like to have all the details worked out before I sign the offer tomorrow, so I can explain to my agent how it will all work.

It was late when I posted the last question so I thought I'd throw it back out there and see if I get any comments

1.You must have a signed and accepted offer from the bank. At that point the bank will usually require an earnest money check. They will deposit the check.
2. You now have the inspection period to find a buyer or back out of the contract. Be careful and make sure you know the length of your inspection period. Read your contract with the bank carefully.
3. If you have a buyer lined up you can collect an earnest money check from him/her for an amount greater then your earnest money check. I also require his/her earnest money to be non refundable. This insures a real buyer. You can "pre qualify"(waste of time)your buyer all you want. This is when you find your real cash buyers! Put up or shut up so to speak!
4. I would not explain anything to my agent other that I am buying the property for cash. It is none of their business that you are double closing. Banks and agents DON'T like being told up front I have no money, I will have to find some one that does and sell it to them, in the mean time would you be so kind as to accept this offer from some one that can't close?

Think about this Ben, this is where you have to fake it till you make it or you wont make it.

The secret to double closing REOs is having a separate TITLE COMPANY from the one the bank will be using. One that understands how investors double close on REO flips/wholesales.

First of all, 99% of banks will not even look at your offer unless you have proof of funds. Do you? Then there is the earnest money. Do you have real live cash investors? Do you know what a wholesale deal really is and how to present it to your buyers?

Here is a brief summary of the double close:

A to B You(b) close on the property you have under contract with the bank (a) Using the banks title company

B to C You(b) close with your buyer(c) Using your investor friendly title company

The B to C takes place first and is funded by your buyers money.
Then when the buyers money is in you close the a to b using transactional funding or your buyers money to fund this closing.

Hope this helps,
Michael Mangham
MD Home Acquisitions lLC

I had the exact same questions because I am going through the same things. I just made my offer tonight through email, and tomorrow I will meet my REA to sign the documents. So thanks a million to Ben for asking all the right questions and to you Michael for effectively answering them. You two are awesome!! Thank you

Y'all,

I can't believe just how timely this is.
This is going to be my first deal tomorrow.
I got a motivated buyer to let me lease purchase with a one year to close.
NO MONEY DOWN. It's highly acceptable in Texas to say "DAMN, IT WORKS"

Thank you Dean and all of the whole DG team for the instruction and motivation.

ultdinvesting....CONGRATULATIONS!

Valuni, helpme2, michaelmangham...Sincerest gratitude for your blessings on us.

David

Now in the double closing, my REA will get commission from the sell between me and the seller, but do I and how do I involove him in the sell of the property to my cash buyer? I like to be fair and make sure we all win here.

Hi Michael, You have been so helpful so thanks again for all your answers. In reading the earlier posts, you mentioned where I can get the proof of funds from which I just printed out the letter to submit with my offer. Now my REA is asking for $5,000 earnest deposit which I certainly don't have. On both of the websites: costal funding, and insider's cash, they ask for information about the seller (REO) and the end buyer, which I don't have in place yet because I haven't even made the offer on the property yet. I am suppose to sign the papers tomorrow morning but I just found out about this $5,000 deposit. This is my first deal. What in the world should I do now?

Please help

Thanks a lot Michael.

That is the best explaination of a double close I have heard.

The bank accepted another offer, but this is VERY helpful for future deals.

You answered all of my questions.

Hi Ben, Congratulations on getting your offer accepting!! You are certainly on your way to major success in this business. Did you have to put down an earnest deposit?

The bank accepted someone else's offer, but I have many potential deals from my bandit signs, so I am not at all discouraged.

My first deal is right around the corner!