Home Buying in Diamond Bar>Question Details

Cyndi, Both Buyer and Seller in Ripon, CA

When buying a home to flip if you have both parties using cash can you do the simultaneous closing with little to no hassle?

Asked by Cyndi, Ripon, CA Fri Apr 9, 2010

Help the community by answering this question:

Answers

6
We're (our team) is still doing simultaneous closings these days, even with end buyer having financing. I'm sure it won't last forever but it's still being done. I'm not saying it's right or wrong, just that it is still being done. If you have two cash deals I can't imagine why it wouldn't be possible. Title insurance does get to be a mess, and that is something that you and the buyer have to figure out.
0 votes Thank Flag Link Sat Oct 9, 2010
Simultaneous closing are frowned upon, as in most cases there is a lack of full disclosure that will always raise a red flag when looking for title insurance. If, the end buyer doesn't care if a title policy is issued then you're home free but that's very unlikely. Good Luck.
0 votes Thank Flag Link Sat Oct 9, 2010
Cyndi:

Simultaneous closings are a "hassle" no matter how you pay for the property. If you are buying an REO (Bank Foreclosure) or a Short Sale, most banks in these circumstances require that you either hold the home for 30 days or disclose what you are doing. Due to the wording on the seller or short sale bank's documents, title companies cannot insure such a deal. If you are buying directly from a seller with equity, you might be able to do this.

You best bet, shop for a title company that will consider doing a simultaneous closing and them send them all your deals, even those where you cannot (due to contractual reasons) do such a closing. Most of the title companies I know, in California, will not longer do simultaneous closings, no matter what, due to the liability. However, you might find an investor friendly company that does. Shop around, ask questions at Real Estate Investor blogs, meetings, etc. and you might find the solution to your dilema. Dare to Dream.

Shel-lee Davis, CDPE
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
http://shel-lee.listingbook.com
0 votes Thank Flag Link Sat Apr 10, 2010
Absolutely not!! Simultaneous closings are a thing of the past. Most title companies won't do them. Either do an assignment (as Don recommended) with a normal closing, or do a double close.
0 votes Thank Flag Link Fri Apr 9, 2010
Depends on what you mean by "hassle."

A simultaneous closing still involves two closings. And even if both parties are paying cash, there's plenty of other paperwork that goes along with any closing. What you're avoiding is most of the paperwork that comes along with the mortgage.

Some title and settlement offices don't like simultaneous closings. Make sure you're using one that is OK with the concept, and that has done them before.

In the future, if you can, try to do an assignment rather than simultaneous closings. It'll save you a lot of hassle and a lot of money.

Hope that helps.
0 votes Thank Flag Link Fri Apr 9, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Hello Cyndi,

Cash is king. I am not sure what you are talking about simultaneous closing. Please advise. If you need options for flips I work with many investors that do the same. Id' be happy to connect you with good options. Especially with all cash.

Monique Carrabba
The Carrabba Group
Keller WIlliams Hollywood Hills
mcarrabba@kw.com
(323) 899-2900
0 votes Thank Flag Link Fri Apr 9, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer