Why It Matters
You go under contract with a motivated seller, find an end buyer willing to pay more, then close both deals on the same day at the same title company. Your profit is the spread between what you pay the seller and what the end buyer pays you. Unlike an assignment of contract, you briefly take title — which satisfies buyers whose lenders require the seller to have owned the property and won't lend against assigned contracts.
At a Glance
- Two separate closings — buy and sell — executed the same day with the investor in the middle
- End buyer's funds flow through to fund the original purchase
- Investor takes title briefly, satisfying ownership requirements that assignments cannot meet
- Requires a title company experienced with back-to-back closings and transactional funding
- Profit equals the spread between purchase price and resale price, minus fees
- Privacy advantage over assignment: neither party sees the other's contract price
How It Works
Two back-to-back closings on the same day. The investor signs a purchase agreement with the original seller, then a separate one with the end buyer at a higher price. The A-to-B closing (seller to investor) records first; the B-to-C closing (investor to end buyer) follows immediately. The end buyer's funds cover the A-to-B side, so the investor needs no personal cash.
The title company's role. Not every title company handles simultaneous closes. Find one experienced in back-to-back closings and maintain that relationship. They structure the dual HUD statements, sequence the fund flow, and keep both transactions clean.
Transactional funding. When the end buyer's funds are not available to bridge the A-to-B leg, a transactional lender steps in for a one-day loan at one to two percent of the purchase price. The B-to-C proceeds repay it immediately.
Where it surfaces in rehab work. A rehabber who locks in a buyer before the demo-day tearout may use this structure to transfer directly without a traditional sale. It also applies when an investor is framing a deal and finds a wholesale exit outperforms a hold.
Disclosure. Many states require written disclosure that the investor is not the original owner. Confirm requirements with a real estate attorney before your first simultaneous close.
Real-World Example
Nadia sourced a distressed single-family home through direct mail. The seller accepted $142,000. She assessed the needed work — new drywall, updated flooring, and replacement countertops — and confirmed a cash buyer would pay $168,000 as-is. She locked both contracts and coordinated a title company that runs back-to-back closings.
Closing day: both transactions at the same table, two hours apart. The buyer's $168,000 funded the A-to-B close. Nadia took title at 10:00 AM, transferred it at noon, and walked away with roughly $22,000 after title fees and a one-percent transactional funding charge. The seller got their price, the buyer got a below-ARV deal, and Nadia never committed a dollar of her own capital.
Pros & Cons
- No personal capital required when transactional funding covers the A-to-B purchase
- Satisfies buyers and lenders who require the seller to have held title
- Keeps your spread private — neither party sees what the other paid
- Cleaner exit than assignment when the buyer is using conventional or FHA financing
- Scales well once you have a reliable title company in place
- Not every title company handles back-to-back closings — vetting required
- Transactional funding adds one to two percent, compressing your spread
- More coordination than a simple assignment of contract
- Some states have disclosure requirements that add compliance cost
- If the end buyer cancels at the last moment, you hold the A-to-B contract with no exit
Watch Out
Vet your title company before you have a deal. Many in smaller markets have never run a simultaneous close and will decline or delay midstream. Call ahead, confirm they handle dual HUD statements and fund-flow sequencing, and build that relationship before you need it.
Know your state's disclosure laws. Several states require written disclosure when an investor sells through a simultaneous close. Skipping it risks license revocation and civil liability. Get attorney review on your first deal in any new state.
Run the net number before signing both contracts. A $10,000 gross spread shrinks fast: subtract 1.5% transactional funding ($2,250 on a $150,000 purchase), title fees on both closings, recording fees, and transfer taxes. Thin deals disappear before you close.
Ask an Investor
The Takeaway
A simultaneous close lets you profit from the spread between a motivated seller and an end buyer without renovation or personal capital. The mechanics are straightforward once you have run one. What trips first-timers is the preparation: finding a title company that handles back-to-back closings, confirming no lender seasoning issues, and verifying the spread covers both fee stacks before committing to either contract.