What Is a Simultaneous Close?

Two separate sales happen in order. First the owner sells to the wholesaler under the original contract, then the wholesaler sells to the end buyer under a new contract at a higher price. Both run through the same title company or attorney, the deeds record in sequence, and each sale gets its own settlement statement. Funding works one of two ways: the title company uses the end buyer’s money from the second sale to pay for the first, or the wholesaler covers the first sale with a transactional loan or their own cash. Whether the second buyer’s money may be used that way depends on the title company and the state.

The appeal is speed and low capital. The wholesaler holds title for hours, not days, and the seller is paid at the normal pace. The practical work is finding an investor-friendly title company that has done it before, getting the end buyer’s funds in place before closing day, and keeping both sales on the same dates. Disposition coordinates all of it, while callers and acquisitions only need to avoid promising the seller anything the sequence cannot deliver. Telling the seller about the resale is good practice and required by law in some states.

It breaks in predictable places. An end buyer’s lender may refuse because the property changes hands twice in one day, a title company may insist on a transactional loan instead of using the second buyer’s funds, and transfer taxes and fees can be charged on both sales, which squeezes the margin. Cash buyers close this way far more easily. One timing slip on either side can leave the wholesaler owning a house they never planned to hold.