A double closing (back-to-back closing) is when an investor purchases a property and immediately resells it to an end buyer. Both closings happen within a short timeframe, usually one to three business days.
When to Use a Double Closing
Double closings are used when the investor wants to keep the purchase price and profit amount confidential from the end buyer, when the assignment fee is substantial and the end buyer may object, when the transaction requires two separate title policies, or when transactional funding is being used.
How the Process Works
1. The investor enters a purchase contract with the seller. 2. The investor enters a separate sales contract with the end buyer. 3. Title searches are run on both transactions. 4. The first closing occurs (seller to investor). 5. The second closing occurs (investor to end buyer). 6. Both closings are typically completed within one to three business days.
Funding the Double Close
Double closings can be funded with transactional funding (short-term capital from a funder), the investor's own capital, or hard money or private lending.
Title Company Requirements
The title company must coordinate two separate closings with different parties, manage two sets of funds, and ensure both transactions are properly documented. This requires experience and attention to detail.
1st Option Title handles double closings regularly. We coordinate both sides and ensure both closings are completed accurately and on time.