As a savvy wholesaler, you have the tools to navigate challenging situations. For example, if an owner-occupied property is deterring potential buyers, you can employ an escrow holdback. With this tactic, you place a portion of the sale proceeds in escrow, to be released once the current owner vacates. This reassures the buyer and keeps the deal on track, allowing you to achieve your goals as an effective real estate wholesaler.
Read on to get more information regarding escrow holdback stipulations on your contract.
Ensure The Transaction
Acquiring properties with occupants still residing in them can be challenging as a wholesaler. However, with the proper precautions and procedures, such deals can be closed efficiently and respectfully.
By communicating openly with the current owners, ensuring their relocation plans are in order, and working with all parties to establish a move-out date and next steps, wholesalers can navigate occupied homes and make win-win deals. With sensitivity and organization, these transactions do not have to be complicated.
First Step; Get Seller Under Contract
Secure a purchase agreement with the seller to acquire their home at a mutually agreed upon price. This legally binding contract will ensure a smooth process for the remaining steps of the real estate transaction.
Second Step: Hold Money On An Escrow Holdback Account
To ensure a smooth home sale and protect the buyer’s interests, an escrow account can hold a portion of the proceeds until the seller entirely vacates the property.
Releasing funds in increments and requiring the seller to vacate within a reasonable time frame, such as 2 weeks, helps guarantee the seller will follow through with their obligations or lose the cash to the buyer. This escrow process makes the transaction more secure for the buyer while allowing the seller to walk away with the agreed-upon net proceeds from the sale.
Third Step: If They Don’t Leave, Money Will Be Deducted From Their Escrow Account
To incentivize prompt action by a reluctant seller, funds will be withheld from escrow until the property is vacated. This financial penalty will encourage a fast resolution to vacate the property.
Fourth Step: Guarantee Sellers Vacant On Your Terms
Using an escrow holdback account provides leverage to guarantee the seller completes all agreed-upon terms before finalizing the sale. The buyer can rest assured that the property will be delivered as promised and on schedule by withholding a portion of the proceeds until move-out conditions are met or the buyer keeps the additional funds. This keeps the sale process on track and avoids unnecessary delays or complications.
Get To Know An Expert Transactional Funding Business
At Wholesalers Transactional Funding, we have helped countless wholesalers get funding to close real estate transactions. We provide a hassle-free transactional funding process that can secure financing for your needs. We offer 100% purchase funding with a 1% origination fee. See why our satisfied customers choose us at Wholesalers Transactional Funding for their double-closing real estate deals. You can get expert advice in just three easy steps:
- Contact us via email or phone
- Get Your Funds Quickly
- Close The Deals and Enjoy The Profits.
We want you to have a successful transaction. We provide transactional funding for wholesalers nationwide. So call us, and we will be happy to answer any questions.