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Updated about 12 years ago on . Most recent reply

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Anthony McNair
  • Real Estate Investor
  • Chantilly, VA
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New Wholesaler here

Anthony McNair
  • Real Estate Investor
  • Chantilly, VA
Posted

Is it normal to have the new investor buyer for contract put an earnest money deposit in escrow at closing agent or to cut me a check directly? Also is it ok to require them to use my closing agent?

I hope to get some experience soon so I can stop asking all questions, and start answering them for other investors on here. I'd like to become a major contributor to the board, it's helped me so very much.

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Will Barnard
  • Developer
  • Santa Clarita, CA
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Will Barnard
  • Developer
  • Santa Clarita, CA
ModeratorReplied

Everything is dependent upon how the deal is structured. If this is a contract that is being assigned to your new buyer, and you already have your money in escrow, you should then have your buyer send funds into that very same escrow with instructions that your EMD amount, plus your fee be sent to you at closing.
You can of course structure it in a way where your buyer pays you directly, but it is recommended to do everything through the third party. As the buyer, it is the only way I would do it.

Keep asking questions and engage this community, it is the fast track to proper education.

PS. Welcome to BP Nation.

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