Structuring a simultaneous closing when wholesaling to investor - Posted by NJ

Posted by NJ on April 19, 2000 at 18:11:18:

Jim IL,

Thanks for the response, I’m in the Plainfield areaa. Thanks also for the encouragement.

If I understand you correctly, you’re saying once I find a buyer I should just get both contracts to my lawyer and have them arrange closing? If I that’s the case, that’s great and I can stop worrying about it.

When you do your simultaneous closes, do you take title and pay with your own money and then get a check from your buyer, or do you use your buyer’s money while you just walk away with the check for the difference in your purchse price and your buyer’s price?

I would love to give you a call to let you know how my deal goes. I also have another on the table that is almost approved, (an estate that has to go through court) and another that we have been countering back and forth.

Are there title companies that are more receptive to simultaneous closings or do they all do them?

Thanks in advance.


Structuring a simultaneous closing when wholesaling to investor - Posted by NJ

Posted by NJ on April 19, 2000 at 15:50:56:

I am new (4 Weeks) to real estate investing. I currently have a house under contract to purchase for $19K CASH that needs about $15K in repairs that will sell for about $65K fixed up. I am interested in finding a rehabber to pay me $25K-$27K for this contract, leaving $30K+ profit in the house for my buyer. My concern is, there are two realtors involved in this deal, the one who found the property for me, and the listing agent. I believe the listing agent has already initiated the title search. My questions are as follows:

  1. How do I go about structuring a simultaneous purchase and sale in which my buyer brings the money and I walk away with the difference ($6K-$8K) without having to bring my own money?

  2. Is this possible since the listing agent may have already initiated a title search? I would like to ask if he has done a title search yet, and if not, I would offer to initiate it, but if he were to ask why, I would not know how to answer.

  3. How can I do this without raising red flags to my Realtor and the listing agent and without disclosing to my buyer how much I’m making?

  4. Is there any reason for me to have my lawyer involved in the closing?

  5. Is it improper protocol to bypass my realtor and talk directly to the listing agent regarding the title search?

I’m ready to act, I just am not sure of what instructions I need to issue to the closing agent or if it can still be done at this point. I don’t want to raise any red flags to the closing agents or the realtors (if there are any to be raised)

New student ready to act.

Re: Structuring a simultaneous closing when wholesaling to investor - Posted by Jim IL

Posted by Jim IL on April 19, 2000 at 17:49:04:

Where in Chicagoland are you?
I am also near there and have done simul closes before.
Frankly, I just get the contracts all signed, and then I have my lawyer set up the closing.
Let him make all the calls to the RE agents, title company and sellers/buyers.
No point wasting more time on this deal, when you can be out finding another one.

Whatever you do, congrats on getting a deal so fast!
4 weeks in, that is GREAT!!
Way to go!

If you are near me, perhaps we can talk sometime.
I sure love to do that…just ask anyone who has met me at the convention or elsewhere.
Especially when it is about REI!

Take care,
Jim IL

By the way, I’m in the Chicago area - Posted by NJ

Posted by NJ on April 19, 2000 at 15:53:34:

So if there are any gurus looking for a mentee who is willing to soak up all the knowledge they can offer, please let me know.