Frequently Asked Questions

A traditional cash buyer makes a lowball offer — often 60–70 cents on the dollar — pockets the renovation upside, and leaves. With The 2nd Close, you share that upside. You still get a cash offer and fast closing, but your total payout is substantially higher because you participate in the back-end profit from the resale.

No. You don't need a realtor on your end. We handle all paperwork, title coordination, and the eventual resale. A buyer's agent commission may apply on the resale to attract maximum offers — this is disclosed clearly in your written agreement. You're welcome to consult a real estate attorney independently — we actually encourage it.

From your first inquiry to your second payment, the typical timeline is 120–150 days. Your first payment arrives within 14 days of signing. Renovation typically takes 60–90 days. Resale and closing adds another 30–45 days. We give you a detailed projected timeline in writing before you sign anything.

Your first payment is calculated as: 70% × After Repair Value (ARV) − Estimated Renovation Costs. We determine ARV by researching recent comparable sales in your neighborhood. We determine renovation costs through a detailed on-site assessment. Both numbers are shown to you transparently in our written offer.

Your second payment is your contractually agreed share of the net resale profit — the final sale price minus the renovation costs, carrying costs, and our fees. The exact split is outlined clearly in your agreement before you sign. We project this number for you upfront so there are no surprises.

Yes. Absolutely. Your first payment is a guaranteed cash closing payment. Once you sign and close, that money is yours regardless of what happens during renovation or resale. The renovation risk is entirely ours. Your second payment is based on final net proceeds after standard resale costs, but your first payment is locked in.

Here is a full breakdown of costs you can expect:

• 1%The 2nd Close consultation fee on your first payout
• 2%The 2nd Close consultation fee on your second payout (resale)
• 4.99%Renovation partner fee on the resale price
• ~3%Buyer's agent commission on resale, if applicable
• 2–5%Standard closing costs on each transaction (title, escrow, taxes)

Renovation overruns are entirely our risk. Your first payment is never affected by renovation cost changes. Your second payment is based on final net profit, so an overrun would reduce that — but our team works hard to keep projects on budget, and we're incentivized to do so since we're spending our own money.

Once you've accepted our offer and closed, the home belongs to us and we make the renovation decisions. Our choices are driven by one goal: maximum resale value. We use materials and finishes that the local market responds to best. You're welcome to share input during the assessment phase, and we'll consider it — but final renovation decisions are ours.

Most renovations take 60–90 days, depending on the scope of work. A cosmetic refresh might take 30–45 days. A full gut renovation could take 90–120 days. We give you a projected renovation timeline in your written offer.

We work with a vetted network of licensed, insured general contractors and specialist subcontractors. Our Head of Renovations personally oversees every project. We don't use cheap labor — quality renovation is what produces the premium resale price that drives your second payment.

Yes. Once you close and receive your first payment, you vacate the property as you would with any home sale. We sometimes offer a short leaseback period (typically up to 30 days) if you need time to arrange your next home — ask us about this when you inquire.

We work with single-family residential homes in markets where we operate. The property should be in a condition where renovation can meaningfully increase its value. Homes that are already fully updated may not be a good fit since there's less upside to unlock — but contact us and we'll assess every situation individually.

Your remaining mortgage balance matters only in that your first payment must cover it (since the home transfers to us at closing). If your mortgage balance is very close to or exceeds our offer amount, the deal may not work financially for you. Use our profit calculator to see where you'd stand.

We're expanding rapidly. Contact us with your property address and we'll let you know whether we're active in your market — or when we expect to be. We're adding new markets regularly.

Possibly. These situations require a more detailed review of your specific circumstances. Reach out to us directly and we'll walk through your options honestly. We don't make promises we can't keep, but we'll always tell you plainly what's possible.

The primary documents are a Purchase and Sale Agreement (for the initial closing) and a Profit Participation Agreement (which defines your second payment terms). Both are reviewed thoroughly with you before signing, and we always encourage you to have a real estate attorney review them independently.

Yes. Your second payment is defined and protected in the Profit Participation Agreement, which is a legally binding contract. It specifies how the payment is calculated, the payment timeline after resale closes, and your recourse if payment is delayed. We provide this document to your attorney for independent review before you sign.

Your first payment is unaffected — it's already in your account. If the resale takes significantly longer than projected, we have contractual obligations around communication and updated timelines. In extreme market downturns, your second payment could be lower than projected or, in rare cases, zero. This risk and our responsibilities in that scenario are detailed explicitly in your agreement.

Before closing, you can withdraw from the agreement as outlined in the Purchase and Sale Agreement (standard real estate contingency terms apply). After closing and receiving your first payment, the sale is final — just as it would be with any real estate transaction. We're transparent about this from day one.