Double Escrow Funding Q & A

Guido:

Thanks for considering me for your funding.

This is the way to go about it.

1- Disclose to the  end buyer that there is a double close.  If they don’t like it the transaction does not continue with this particular person.
2- The preliminary title report will show the present owner.
3- The purchase contract will show the investor’s name.
4- That will not be a problem because you have disclosed prior to the fact.
5- The double escrow transaction will additionally disclose all the conditions of the transaction to the end buyer and the original seller.
6- The end buyer’s underwriter will have to approve the transaction.
7- The whole funding and recording will take place within 24 hours.  Otherwise it is not a double escrow. 

What we do is provide funds so that, if needed, you don’t do a "dry" double escrow.  Basically in a dry double escrow the funds from the end buyer entirely fund the acquisition.  In a "wet" double escrow the buyer provides funds for the acquisition.  We loan you the funds when you need to do a "wet" double escrow.

 If you have cash end buyers there should be not problem at all as long as you are disclosing to them the conditions of the transaction.  Not disclosing does not only create a problem but it is illegal.  If you don’t want the end buyer to know anything about the acquisition, you will have to buy the property with conventional hard money and re-sell it.  We do not provide this type of funding.

In California there are title companies and escrow officers that will do this for you. Take a look at www.SDCIA.com. Most likely you can find such people in that organization.  If you give us enough time, we may line you up with a escrow service, which does transactions nationally.  For this you need to bring us a deal that is ready to go.

Guido, hopefully this helps.  Maybe we can first help you with your cash end buyer deals.  Then we can do the other deals. 

Oscar

At 03:22 PM 9/29/2008, you wrote:

Hello again, thanks for taking the time and talking to me on the phone the other day, you asked me to write you with more details for the qustions i had, so here they go; if my end buyer is obtaining a loan based on the property i am doing the double escrow, how can he be ready to close if the lender asks for the prelim as part of their package on the early stages of the transaction?, once this is done he can get the loan approved and be ready for funding, but if the prelim is showing liens and other sellers different than what the purchase contract and the escrow inst. we are providing to them, wouldn’t that be some sort of delay on the final closing?.
 
I’m mentioning this because it takes a couple of days once the property gets recorded to obtain a new and clear prelim, but if we wait for that, the loan can not be ready, because all of that is prior to docs, please explain how is that handled.
 
If my end buyer is all cash, the prelim is the only waiting period, i can see that happening faster, not in one day, but 2 at least, unless the title co. has a way to speed things up.
Also in Southern California the recording is done the day after the funding, not in the same day.
 
I’ll be waiting for your response, we have some deals we can do here, just want to be sure how the time frame is handled, thanks again…