It is possible to close at two different attorneys but there can be serious issues.
- Usually, this two-different closing agent problem came about because the seller or the end-buyer stated that he wouldn’t close except with his closing agent.
- If a Realtor® is involved, it’s likely that this listing agent has a favorite closing agent that he likes to use – not that the seller picked this one.
- If the end-buyer picks the closing agent it’s likely has brought properties previously and knows what he’s doing.
- That doesn’t mean you can’t get them to agree with your closing agent pick.
- In either of the above situations, you need to take control of who the closing agent is for your deal.
- Some agents will tell you it’s the “law” that the seller or buyer chooses the closing agent – if it is true, which it seldom is, you can still pick the closing agent by paying for the title work.
- This small cost to get control the closing agent is well worth the additional cost.
- Think about this, if you’re doing a double closing to “mask” the size of your profit, the closing agent chosen by the seller or the buyer is likely to disclose your profit, which can be an immediate deal killer.
- What you need to say the seller is, “My funding partner (Dave Dinkel) will not close with your closing agent, but if you have a concern, you can have your closing agent “Shadow” the transaction.”, say nothing and the seller will almost always switch.
- With the end buyer you say the same, “My funding partner (Dave Dinkel) will not close with your closing agent, but if you have a concern, you can have your closing agent “Shadow” the transaction.”, say nothing and the buyer will almost always switch.
- These exact words have saved thousands of deals that have been lost because of two closing agents.
- In states where you’re required by law to have two different attorneys close for the seller and buyer, this “shadowing statement” will not work and you must find a transactional or hard money lender who will assist you.
If you have any additional questions, contact me directly at DaveDinkelQuestions@gmail.com.
If you need hard money instead of transactional funding, contact me for referrals to private hard money lenders.
Be sure to check out BestTransactionalFunding.com for all your same-day double closing needs, including a list of Investor-Friendly Closing Agents in various states.
We have more five-star Google ratings than all the other transactional funders combined.
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