Back-to-Back Close

Definition

Two consecutive real estate transactions on the same day, where the proceeds from one sale fund the down payment of another—basically financial whack-a-mole.

Example Usage

We're doing a back-to-back close, selling our condo in the morning and closing on the house by afternoon.

Origin

Industry jargon from the 1990s mortgage boom

Fun Fact

Back-to-back closes can fail spectacularly if the first transaction doesn't complete on time, leaving buyers without funds.

Source: Mortgage Bankers Association (MBA)

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