The Creative CLOSED Team is a specialized group within CLOSED Title that handles:

- Subject-to transactions (creative wraps)

- Double closings

- Assignments

- Novations

- Gator lendor transactions

They are national experts and have experience closing thousands of deals.

In real estate investing, a "subject to" transaction refers to a creative financing technique where a buyer takes over the ownership of a property subject to the existing mortgage. Here's how it typically works:

• Existing Mortgage: The property has an existing mortgage that remains in the seller's name.

• No New Loan: Unlike traditional purchases where the buyer gets a new mortgage, in a subject to transaction, the buyer does not take out a new loan. Instead, they agree to make the payments on the seller's existing mortgage.

• Deed Transfer: The buyer receives the deed to the property, thereby gaining ownership, but the mortgage stays in the seller's name.

• Benefits:
  

  • For Buyers: This can allow them to purchase property without qualifying for a new mortgage, potentially at a lower interest rate than current market rates, or when they might not otherwise qualify for financing.

  • For Sellers: It can be a solution for those needing to sell quickly, especially if they are in financial distress or facing foreclosure, since they can transfer the property without having to pay off the mortgage or deal with the complexities of short sales or foreclosures.

• Risks:
  

  • For Buyers: There's a risk if the seller doesn't pay other liens or if the mortgage has a due-on-sale clause that could be triggered by the transfer, potentially requiring immediate payoff of the loan.

  • For Sellers: They remain technically liable for the mortgage if the buyer defaults, although this can be mitigated through careful vetting or agreements, which the Creative CLOSED Team can assist with.

• Due-on-Sale Clause: Many mortgages have a clause that allows the lender to demand full repayment of the loan if the property is sold or transferred. However, in practice, this clause is not always enforced, but it remains a risk.

• Documentation: A "subject to" agreement should clearly outline who is responsible for what, including property taxes, insurance, and maintenance, alongside the mortgage payments.

This method of real estate investing can be complex and requires a thorough understanding of real estate law, mortgage agreements, and the local market. It's often used in niche markets or by investors looking for creative financing solutions. The Creative CLOSED team are national experts in subject to transactions and can assist you through the process.

In the context of investment real estate, a double closing refers to a transaction technique where an investor purchases a property and then immediately sells it to another buyer in two separate but closely timed closings. Here's how it works:

• First Closing: The investor buys the property from the original seller. This is often done at a discount or through a wholesale deal where the investor has negotiated a lower price than they expect to sell it to another buyer with the difference being compensation for their time and expertise to acquire the subject property.

• Second Closing: Immediately after or very shortly following the first closing, the investor then sells the same property to an end buyer at a higher price. The end buyer might be an investor, a homeowner, or another party looking to purchase the property.

Key points about double closings:

• Simultaneity: The two closings are designed to occur one right after the other to minimize the investor's risk of holding the property for any length of time. This can be on the same day or within hours or even minutes of each other.

• Funding: Since the investor typically does not hold onto the property for long, they might use transactional funding or hard money loans to finance the first purchase, with the intent to repay this loan with the proceeds from the second sale. CLOSED can provide transactional funding as well, contact us for more details!

• Privacy: One of the main reasons investors might choose a double closing over an assignment of contract (where the investor assigns their interest in a property to another buyer) is to keep the original purchase price private. This can prevent the end buyer from knowing how much the investor paid, thus maintaining the investor's profit margin confidentiality. The Creative CLOSED team will maintain privacy for investors as they are experts having CLOSED thousands of these transactions.

• Complexity: Double closings require coordination between multiple parties. They can be more complex but they offer certain advantages like privacy and sometimes better control over the transaction. The Creative CLOSED Team are experts in these closings and will maintain constant communication with all parties.

Double closings are particularly useful in real estate investment strategies like wholesaling, where investors aim to quickly turn properties for profit without extensive renovations or holding costs. However, they require careful planning and coordination to execute successfully. You can be confident the Creative CLOSED Team will guide you through double closings as experts in the industry.