BiggerPockets

I have a quick question about Escrow & Title when wholesaling. I am new to RE investing and I am going to give wholesaling a shot. I am a Broker but doing this on the side.

My question is when you get a home under contract and you dont have a buyer do you open up escrow immediately or put in the contract that escrow will open after a certain amount of days or weeks so you have a chance to locate a buyer to assign the contract too . I do not want to come out off pocket $500+ to open up an escrow plus more money for title insurance only to find out I cannot find a buyer and escrow & title needs to be paid whether I close or not. Tell me what you guys do?? Any contract recommendations would be nice too. I am a broker but do not want to use my standard realtor forms.

I appreciate all the help thank you all!

What types of properties do you plan to target? If you plan on targeting REO's you will need to put around 1k down then double close on the property. If you are targeting homeowners who are not in distress you need to sell to a cash buyer and can assign the contract with nothing in escrow. Just make sure you target homes that will sell to CASH buyers.

Thanks Steve I appreciate your help good thread I read through it. My question is not about the different types of wholesaling people do though. I am trying to find out if you put the contract into escrow right away after receiving a contract on a property? I would not want to open escrow only to not find a buyer in the time of my contingency period where I can back out. There are cancelation fees with escrow company I spoke with and I don't want to tie up someones property only to let them down.

Do any wholesalers not open escrow right away with contract in hand but first secure a buyer then open escrow?

I understand you should have a buyers list built prior to finding sellers but what if no one wants to buy your deal one you do have your list?

I appreciate any responses this is really helpful!

-Mike

I personally open Escrow when I have the Contract and the Assignment Contract in hand and submit both at the same time.

Also as far as Investor Friendly Title Companys I would try Chicago Title and Orange Coast Title, if you have it. I live an hr 1/2 away from SD and have used them both. Again, there are a lot out there, pick up the phone and make some calls.