Flipper/Rehabber · Rapid City, SD · Member since 2017 · 39 posts · 11 votes
When you have prIvate investors where do you keep the money before the flip is purchased. Do you have an escrow set up or just a regular account to have it in.
There's two ways to do it depending on the renovations necessary:
- If it's a short term deal, the investors can wire the full amount to the title company, who then cuts any excess checks made out to both parties.
- If it's a longer term deal the investors could wire a portion of the capital (enough to acquire) to the title company to acquire the property. Then the rehabber holds the draw schedule money for repairs in their bank account (or an escrow account).