Wiring earnest $ to escrow before you have deal with wholesaler

[Pedro Guillen]

Hello BP Community,

I’m working with a wholesaling company and their strategy is to have their cash buyers lined up ready to go under contract the day they have a deal. They secure a buyer before they have a deal by having you wire earnest money to title company.

Few questions/concerns:

Should you wire earnest money deposit to escrow title company before you have a deal with wholesaler?

Is this common practice with big wholesaling companies?

Should I be skeptical or worried it might be a scam?

Wholesaler claims that investors that have wired their earnest money in escrow will have priority and first pick on their lists.

Any advise or bad experiences you can share would be greatly appreciated.

Thanks