130 DEAN GRAZIOSI
closings happen on the same day. In this case, we’ve set up the deal where your contract with the seller closes at 1 PM, and the second deal closes right behind it at 1:30 PM. The closings are “ back-to-back, ” another name for a double close. Whether called a double close, simultaneous close, or back-to-back closes, it’s all the same process. It’s closing day, and there are two deals closing a half hour apart. Depending on the time of day and other factors, they could both be recorded at the same time at the courthouse; or the recording of the deeds could be a day apart. That’s where the funding becomes an issue. You’re not bringing the $50,000 to the table because you don’t have it. There are two ways in which to handle it. Dry Close A dry close is one in which no money changes hands. Your first closing when you’re buying the property will not require you to have the $50,000. The second transaction’s closing will fund the first one. This can be done when both deals are being recorded at the same time. However, when the mortgage troubles made lenders and title companies more cautious, this approach become more difficult, as some title companies do not want to do it. Also, if they both can’t be recorded the same day, the dry close can’t be done. But there’s another way. Wet Close In a wet closing you have to bring $50,000 to the closing table to close the first deal with the seller. It’s not a problem. Where there’s a profit there’s a way. In this case it’s called a “ transac- tional funding company. ”
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