The Simultaneous Close sounds like a perfect real estate investment deal.  However, there are a few drawbacks to this foreclosure investor’s dream deal.

It’s part of the dream, the possibility of being able to make thousands of dollars with out using any of your own cash as an initial investment.  Well, it has been done and can still be done with a variety of real estate sale practices.   One of these popular sales in real estate investment is the Simultaneous Closing, which basically involves you purchasing the property with your investor’s money and then selling that property to your investor all in a matter of moments.  It’s legal and requires paying close attention to the numbers on all sides of the deal.

One Minor Drawback with this Real Estate Sale
There is a small problem with using the simultaneous close in order to make a property sale.   A lot of title companies are hesitant to insure the title that’s been sold using this method.  In recent years there have been many problems with mortgage fraud and predatory lending.  Many of those fraud deals have involved a simultaneous close on a property title.  Plus, the business of foreclosure investing and real estate investing has a bad reputation.

So, to try and cut back on the incidents of mortgage fraud and predatory lending title companies have made a blanket rule stating that they just won’t insure a title in simultaneous close. 

This doesn’t sound like a big problem in wholesaling, but it basically means that the title company won’t perform a simultaneous close.  Hence, you can’t buy the property!  This is a bad deal for all the good real estate investors out there who are putting in their time and effort on wholesale deals, but who don’t have the money to invest on their own terms. 

Not all title companies have this rule, but it’s something to keep an eye out for.  This practice has just taken effect in certain areas.  So, it’s to your benefit to see if the title companies you will be working with are still performing simultaneous closings.  You’ll want to do this research before you make an offer on that next big real estate investment. Don’t cast aside the notion of a Simultaneous close entirely because this is still an excellent method for wholesaling property.

The bottom line is what generally holds you back as a real estate investor is not the state of the market, but rather the state of the thoughts within your head.

Just as with selling any other product in the world, real estate is bought and sold at “wholesale” prices each and every day.  Real estate wholesale buying generally happens between two real estate investors.  One investor finds the property and then sells it to another investor who is interested in rehabilitation of the property for sale or as a long-term rental.  In this process the first investor generally never really takes possession of the property and makes money only on the transaction itself. 

People often wonder about real estate wholesale buying and selling in a down real estate market.  Is it a good time to do it?  Is it a bad time to do it?  The answer is that in order to buy real estate wholesale you need to be able to put together a good, solid wholesale real estate deal.  If you can put the wholesale real estate deal together, then you can do wholesale real estate business in any real estate market – up or down. 

Have you ever talked to a struggling stock investor and they told you that the market was bad and it was not a good time to invest in it?  Think about that for a moment.  Isn’t the smart thing to purchase stocks while they are at a low price, and then later sell them at a higher one?  Real estate investment really is the same thing.  When the market is down or “bad” is one of the best times to purchase real estate to hold on to for a while, rent out, and make some serious cash on over time. 

Don’t get me wrong, real estate wholesale buying deals are not usually simple or easy.  However, with a good group of professionals on your side, you can make a lot of money in the wholesale real estate market. 

The bottom line is what generally holds you back as a real estate investor is not the state of the market, but rather the state of the thoughts within your head.  The sad truth is that many people use a down market as an excuse not to do business.  You really should learn to ignore the naysayers, not use an up or down market as your crutch not to do deals, and buy real estate wholesale whenever the deal is right for your investment strategy. 

Just as with selling any other product in the world, real estate is bought and sold at “wholesale” prices each and every day. Real estate wholesale buying generally happens between two real estate investors. One investor finds the property and then sells it to another investor who is interested in rehabilitation of the property for sale or as a long-term rental. In this process the first investor generally never really takes possession of the property and makes money only on the transaction itself.

People often wonder about real estate wholesale buying and selling in a down real estate market. Is it a good time to do it? Is it a bad time to do it? The answer is that in order to buy real estate wholesale you need to be able to put together a good, solid wholesale real estate deal. If you can put the wholesale real estate deal together, then you can do wholesale real estate business in any real estate market - up or down.

Have you ever talked to a struggling stock investor and they told you that the market was bad and it was not a good time to invest in it? Think about that for a moment. Isn’t the smart thing to purchase stocks while they are at a low price, and then later sell them at a higher one? Real estate investment really is the same thing. When the market is down or “bad” is one of the best times to purchase real estate to hold on to for a while, rent out, and make some serious cash on over time.

Don’t get me wrong, real estate wholesale buying deals are not usually simple or easy. However, with a good group of professionals on your side, you can make a lot of money in the wholesale real estate market.

The bottom line is what generally holds you back as a real estate investor is not the state of the market, but rather the state of the thoughts within your head. The sad truth is that many people use a down market as an excuse not to do business. You really should learn to ignore the naysayers, not use an up or down market as your crutch not to do deals, and buy real estate wholesale whenever the deal is right for your investment strategy.

Is it time you found out the truth about real estate investing and your future? Visit www.yourrealestatefortunes.com and learn how design your road to real estate wealth, for FREE.