If you are a real estate investor that buys houses directly from motivated sellers, you will find that you cannot handle all the properties you buy. In such cases, you have to wholesale these properties to other real estate investors.

This is called wholesale real estate investing.
In simultaneous closing, also called double closing, you buy the property from the seller, then turn around and sell it to your buyer, usually on the same closing table. At closing, you get a check of the difference between your buying price and selling price less any closing costs.

When do you do a simultaneous closing?
Whenever you stand to make a lot of money, you do not want to disclose this to the seller or the buyer. It is not unusual for them to get uncomfortable and walk away from the deal.

To prevent this, a simultaneous closing is the best option.

How does it work?
1) Sign the contract to buy
Sign the contract to buy the property from the seller once you reach an agreement. Fax this to your title company or closing attorney to do title work.

2) Sign contract to sell
Your buyer will most likely be a real estate investor who buys houses in your market. Put it under contract with you as the seller and they as the buyer.

Of course the assumption here is that you are selling it at a higher price than the price you pay for it.

You fax the contract to the closing company. You must make sure you collect earnest money when you sign the contract.

3) Close the deals
The closing company will then prepare two closing statements, one where you buy and one where you sell the property.

Each transaction has its own closing fees. Usually the money your buyer brings is also used to close the first transaction.

Of course, if there is a lender for the second transaction, they must agree to have the funds used to close the first transaction. The difference between your buying price and your selling price is the cash you walk home with.

Notice that the buyer or seller cannot know how much you make in the transaction.

Advantages and disadvantages of simultaneous closing
In simultaneous closing, there are two sets of closing costs, one when buying the house, one when selling it.

The lender for the second transaction can refuse to have their money to be used to close the first transaction. In this case, you must come up with the cash to close the first transaction.

Hard money lenders can lend transactional funding unless you have cash to close it. Transactional funding never leaves the closing table and enables you to close the first transaction for a fee.

This can be an added cost to the deal.

If your buyer is using a conventional lender, the lender may require that you own the property for at least 90 days. Avoid getting such buyers in your wholesale deals.

Ultimately, simultaneous closing allows you to make big pay days out of your wholesale deals.