Double the Deal: Mastering the Art of Double Closings with Transactional Funding
The world of real estate investing offers a variety of strategies to maximize profits. One approach gaining traction is the double closings, where you buy and resell a property on the same day. But securing funding for this fast-paced maneuver can be tricky. This is where transactional funding comes in!
Double Closings Explained:
A double closing involves two simultaneous transactions. You, the investor (wholesaler), purchase a property from a seller and then immediately resell it to an end buyer at a higher price. Transactional funding bridges the gap between these two closings.
Why Transactional Funding for Double Closings?
Traditional mortgages aren’t ideal for double closings due to their slow processing times. Transactional lenders specialize in short-term, high-interest loans designed specifically for this strategy. Here’s how they can fuel your double closing deals:
- Swift Funding: Transactional lenders offer a faster closing process compared to traditional lenders, allowing you to act quickly and secure time-sensitive deals.
- Financing the Purchase: The loan covers the purchase price of the property, enabling you to move forward with the initial closing.
Executing Double Closing Effectively:
- Strategic Property Selection: Choose properties with significant value-add potential, allowing you to sell them to the end buyer at a profit within the short timeframe.
- Secured End Buyer: Before securing transactional funding, have a confirmed end buyer lined up and ready to close on the property.
- Clear Communication: Maintain transparent communication with both the seller and the end buyer, ensuring everyone is prepared for simultaneous closings.
Transactional Funding Considerations:
- Higher Interest Rates: Be prepared for higher interest rates compared to traditional mortgages. Factor this cost into your profit calculations.
- Short Loan Terms: Transactional loans typically have short repayment terms, requiring a quick turnaround on reselling the property.
- Experienced Team: Partner with a reliable closing agent experienced in handling double closings to ensure a smooth transaction.
Double Closing: A Strategic Approach
Double closings, coupled with transactional funding, can be a powerful tool for real estate investors. However, it requires careful planning, strategic property selection, and a secure end buyer. Remember to consult with a financial advisor to determine if double closings with transactional funding are suitable for your investment goals.
Ready to Unlock the Potential of Double Closing? Corelend Financial Can Help!
We offer a variety of financing options, including transactional funding, tailored to your investment needs. Contact Corelend Financial today to discuss your real estate goals and explore how we can help you navigate double closings and achieve your investment aspirations.
