Posted by Lonnie Turner on May 31, 1999 at 12:38:59:
In my state the escrow agent disburse the funds to all the principal parties involved. The very first thing you need to do is find a escrow agent that have experience doing these types of deal. Go to you local yellow pages and call every office they have and tell the receptionest that you want to talk to an experiened agent that have a lot of experience working wit Real Estate Investors. Then you go on and tell them waht you are doing & what you are looking for. If the agent is negative or ignorant move on to the next agent until you find two or three agents that you fell confortable with.
If you use a assignment contract with your buyer make sure it is a assignment that have teeth. My assignment has a clause that says that the fee will be held in escrow so if the buyer defaults on his promise the money will be released to me anyways. It also binds him to close on the day I promised the seller I will close on & if he don’t he will have to pay me fifty dollars a day until he closes as promised. That way he cannot go behind your back and steal the deal.
Key points: Look for a experience investor who have demonstrated that they can & will close your deal. Not no flake that cannot and afraid to make a decision. You show him the house and he sign your agreement. If he cannot make up his mine call the next investor on your list and set up a time to meet at the property.
Oh yaeh also in you purchase contract have assign clause in in that will releive you of all responsibilties if you do assign the contract therefore the seller cannot come after you if your buyer goofs up your deal. I hope this helps.
Lonnie in Seattle