Wholesaling Land Question: When to Open Escrow?

Buying Strategies
1

Hello,

I have multiple land sales agreements from blind offers that don’t fit our criteria and I am thinking of wholesaling them.

My question is…After we have a signed agreement with the seller, do we send this to the title and open escrow right away? Or do we wait until we have a buyer sign the assignment form and then send everything to the title?

My concern is that what if I don’t find a buyer within that timeline and fees add up at title for title search etc?

2

@jiniko To me it depends upon how much time you have left. You can also order only preliminary title so as not to spend as much. I like preliminary title to market quickly to my buyers.

3

@treepimp Appreciate it! Thank you!

4

@jiniko if you’re 100% certain you won’t be buying it yourself and you plan to assign the contract, you’ll want to communicate this very clearly to the seller, so they understand what you’re doing and why it’s taking so long to close.

This blog post has some good points you can use to navigate through this conversation and explain to the seller what is happening (in a way that gets the point across without being overly complicated).

If your intent is to assign the deal to someone else, then there’s no point in opening escrow until you actually have an end buyer lined up and ready to go. At this point, your objective is to:

  • Make sure the seller understands what’s going on, and that they’re on board with the plan.
  • Start marketing this thing to find another buyer who wants to purchase at a markup (so you can get paid your assignment fee).
  • When you’ve got that buyer, have them fill out an Assignment Agreement and then deliver this document, along with the original purchase agreement to the title company and let them take it from there.

If you can’t get all of this done before the purchase agreement expires, you’ll have to get another purchase agreement signed with an end date that extends far enough out that you’ll have time to get the deal closed.

1 Like
5

@retipsterseth Thank you!!!