Dallas-Fort Worth Real Estate Investor Club

Does a double closing cost twice as much to close?

  • 03 May 2013 6:18 AM
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    Message # 1284600
    Michael Mixon
    It seems like a bit of a stupid question, but if a double closing means two closing costs, who pays them?  If I'm wholesaling a property, and I have to pay one of the closing costs, won't that pretty much eat up most of my profit?
  • 04 May 2013 10:23 AM
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    Reply # 1285442 on 1284600
    Deleted user
    Yes two sets of closing costs would need to be paid. Who pays it is up to you, the seller, and the buyer. I know the big groups like New Western and Net Worth always double close, and always pass the costs on to their buyer. If your deal is so thin that paying the A to B will eat most of your profits, why not just assign it instead?
  • 04 May 2013 6:56 PM
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    Reply # 1285660 on 1284600
    Michael Mixon
    Good point about the assignment.  Which raises another question, how much is the "typical" closing going to run me?  That way I can figure out how much I'd need to clear to justify a double close.  Wouldn't want some greedy buyer getting upset that I'm making a good deal just because I was able to negotiate a good price from the motivated seller.
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