Double Close Lending
for Real Estate Wholesalers
Do you need to fund a real estate wholesale deal in Houston? Axelrad Capital is ready to help with double-close lending to fund your next deal with no upfront fees. Based in Texas, we work with real estate investors and wholesalers across 41 states! Contact our team to learn more about our loan options.
How Double Close Lending Provides Fast Funding
Double-close lending is a financing technique that involves two closing transactions in a real estate transaction. In a double close, the first closing is between the buyer and a private lender, and the second closing is between the private lender and the end buyer. The private lender provides the funds for the first closing and then sells the property to the end buyer at the second closing.
How Does a Double Closing Work in Real Estate?
This type of financing is often used in flipping houses, where the investor purchases a property, makes improvements and then sells it at a higher price. The private lender provides the funds for the initial purchase and holds the property until it can be sold to the end buyer. Funding from our team allows the investor to finance the purchase and renovation of the property without using their own funds. Then, it allows the end buyer to purchase the property without going through the traditional mortgage process.
Double-close lending can be complex, so it’s essential to work with experienced professionals to ensure that all legal and financial requirements are met.
Easy Entry to REI
In Texas, it is legal to conduct a double closing with some restrictions. Like Florida and California, it is not allowed to use the funds from the second closing (C transaction) to finance the first closing (A→B).
Instead, investors can use transactional funding or hard money to finance the initial purchase.
Advantages of Double Close Lending
There are several advantages to using double-close lending as a financing method in real estate transactions. Some of the main benefits include:
Private
Transactions
A double closing offers more privacy compared to a traditional contract assignment. Because there are two separate closing transactions, the investor’s net profit when wholesaling the deal will not be disclosed to the original seller or the end buyer. You achieve this through the use of two separate closings.
Protect
Your Profit
Some sellers or end buyers may become frustrated or threaten to back out of the deal if they feel that the wholesaler/investor “made too much” on the transaction. A double closing offers privacy, so these other parties do not have access to information about your final profit.
Faster Closing
A double closing allows investors to efficiently acquire investment properties using minimal capital, provided it is done correctly. It is a useful technique for real estate wholesaling as it offers a creative exit strategy.
How We Help You
Contact Us
Get in touch with the professional lenders at Axelrad Capital.
Share the Details
Once we have the details, we share loan opportunities.
Get Funded
Get the funding you need without the red tape.
Simple, Straightforward Funding for Real Estate Wholesalers
Transactional funding can be helpful for quickly and affordably closing real estate deals. Our team can provide the necessary funds for a double closing, and there are no fees if the transaction does not close.
Our experienced team is always ready to help you understand your options and apply our expertise to your transactional funding needs. Contact us today to learn more about the services we can offer you!
