What if My Seller Wants to Close Before My End Buyer Can Close?

Buyer and seller coming to closing

If your seller wants to close even a couple of days before your end buyer, there can be a massive problem.

• The transactional funder runs the risk of funding 100% of the A-B closing and the end buyer (B-C) not closing.

• The usual result is a foreclosure action for the transactional lender to recover as much of his money as possible.

• Therefore, one of the top priorities of double closings is that they close on the same day with the same closing agent.

• No matter how “strong” your deal is, and no matter how large a potential profit you have if you close, there is always a risk of something doing wrong with the end buyer and his not closing.

• There are 20 reasons buyers and sellers don’t close, and it is so important that I even wrote a complete course on this topic.

• The main reason for buyers not closing is buyer’s remorse where the buyer suddenly decides he overpaid, or he is afraid of doing too extensive a rehab.

• The second greatest reason for not closing is that his hard money funder simply decided not to lend him the money.

• While there are solutions for all the 20 “things” that can kill deals, action must be taken immediately when something goes wrong.

• Your best option is to get your seller to extend his closing date by incentivizing him with $500 or $1,000 for his “inconvenience.”

• The other option is to get the end buyer to close sooner or find another buyer if that’s possible.

• These critical closing dates must be determined before you sign contracts with the seller and end buyer.