Flipper/Rehabber · Phoenix, AZ · Member since 2017 · 37 posts · 7 votes
I have a lead that I've been working with. He reached back out to me this morning, but had questions. He was asking how exactly the "money transfer" works. I'm still fairly new to this, and this is my first actual deal by myself, where I don't JV it. So in simple terms how exactly does the closing escrow process work? And how long will the seller have to wait until they actually receive the money?
Realtor · Denver, CO · Member since 2016 · 499 posts · 129 votes
8y
Usually the seller can select a check or a wire transfer to their bank account. One the funds and docs are verified the money is trasferred to the sellers account. It is usually a same day process in Colorado or it could be the next day if the closing is after 5 p.m.
Investor · Boise, ID · Member since 2011 · 1k+ posts · 736 votes
8y
The title company handles the funds, and in Idaho, disbursement to the seller is typically less than 24 hours. I am not sure if that is what you mean? But, in short...work through a title and escrow company and they will walk you through the process!
Rental Property Investor · Littleton, CO · Member since 2017 · 61 posts · 18 votes
8y
The title company will handle the closing and collection/disbursement of funds. Talk to them about the timing in your state. Closing timelines can vary somewhat by state. In Ohio we all signed closing papers at our discretion with the title company (they actually came to our house to do ours) and they collected our down payment/closing costs check at that time which was a couple days before the sale was recorded. I don't know how quickly the seller got their check/wire for their proceeds. In Colorado they do "round table" closes so every shows up at an office (ours was at the selling realtor's office) and everyone signs their papers at the same time and the buyer brings their check, and the sellers left with a check or a wire confirmation at the end of the closing.
Realtor · Denver, CO · Member since 2016 · 499 posts · 129 votes
8y
Usually the seller can select a check or a wire transfer to their bank account. One the funds and docs are verified the money is trasferred to the sellers account. It is usually a same day process in Colorado or it could be the next day if the closing is after 5 p.m.
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
8y
@Victor Barboza so the concept is as follows. The money for the purchase goes to the closing entity (usually a title company but some states I think use an attorney for this). At about the same time, everyone signs all the documents. Once the documents are signed the closing entity sends out the proceeds as they have been instructed. Usually is a half day from money in to money out but there are cut off times for wires etc that have to be dealt with. Sometimes it's the next day before the bank sees the money from the sale due to wire transfer cut-off times. In most cases, anyone can sign several days in advance. The closing entity (escrow company) just holds everything until all the tees are crossed and i's dotted.