How do you close escrow when you are virtual or aren’t in the same state? In this episode, Lauren gives us her system for closing deals in the most difficult situations.
To work with Lauren, visit https://www.wholesalinginc.com/virtual/.
Do You Close In Sellers State When Wholesaling Virtually?
I am going to talk about how to close escrow when you aren’t there. You are virtual. The seller isn’t even there. How the heck do you close escrow when people are in different states? In this episode, I am going to share with you how I do it.
This trips people up. I get this question asked all the time. Do you have to fly out at the close of escrow and meet at the closing table? Does the seller have to fly out? How do you arrange for the paperwork to be signed if you can’t even be there? In this episode, I am going to share with you exactly how we do it. I’m going to talk about where the escrow office should be located when you’re doing a transaction and how you close escrow when you are in the same state as the seller.
I’m going to give you the exact tool I use to get documents signed when I’m virtual and I can’t be in front of the seller and how to finalize and close escrow when no one can be at the closing table because they all live in different states. If you find this episode interesting, make sure you share this content with someone who you think might benefit from it. The first question is this. Where is the escrow office located when you’ve got a sale?
Typically, I keep my escrows in the territory that I’m working in. If I am working in Bananaville, Alabama, I want my escrow company to be in Bananaville, Alabama. Even if the seller is out of state, I want my escrow company to be in the same area. The reason is that if I’m working in this territory, I usually am doing more deals than just one. I want to work with the same escrow officer every time. I’m going to give you a tip. Make sure you have a reliable escrow officer who is also wholesaler friendly.
Finding a very good escrow company and escrow officer is important because they understand the process, and there will be fewer hiccups along the way.
How can you find this person? I like referrals. The best way to get a good escrow officer is to ask other wholesalers in town who they use. You might find that it’s usually the same couple of offices or people that are doing all of the wholesaler deals in town. They know what they’re doing. The transactions are smooth. Any time I use another escrow office that isn’t used to doing our transactions, there usually are some hiccups along the way.
If the escrow office is in the territory where the deal or the house is located, then how do you close escrow if you’re virtual and the seller is virtual as well? What we do is utilize mobile notaries. Every escrow office has got mobile notaries all across the country. You can look up a mobile notary quite easily by a simple Google search. They are everywhere.
All you have to do is email the documents to the mobile notary and they will coordinate with the seller, meet at the seller’s house, and have the documents signed As an experienced investor who’s also virtual, I have a notary that I go to a lot. You could go to The UPS Store. There’s a ton of them usually in every town. They usually have a notary there. That’s usually where I will go to sign my documents.
Not every document requires a notary. When it doesn’t and it doesn’t require a wet signature, I use a tool called DocuSign. Go to www.DocuSign.com. What you can do here is put your documents through DocuSign and email them to another party. That party can sign them using their computer with a click of a button. It’s super easy. I use DocuSign for our purchase agreements, assignment agreements, and any other type of escrow document that doesn’t require a wet signature or a notary.
How do I finalize and close an escrow? Once we are ready and we’ve got all the closing documents ready, our escrow officer will send them via email to all of us. I will print those documents out and I usually will go to my UPS Store, get whatever I need to be notarized done, sign the other ones, pop it in a FedEx envelope, and send it over via 24-hour mail, something like that, or overnight mail.
Often your escrow company will even give you a FedEx mailing label for that. The seller will do the same thing, but for convenience, we usually send a mobile notary to the seller’s house because they’re a little less experienced with this. To save some time and hassle, an escrow officer will usually find a notary for them. The notary will print out the documents and bring them to the seller’s house.
Once everything is signed, both parties pop everything in the mail and the escrow is done. This is why finding a very good escrow company and escrow officer is so important because they understand this process. There are going to be fewer hiccups along the way. It’s easy enough. That’s how you close a virtual transaction.
If you like that and you’ve got something out of this, make sure you comment and let me know. That’s it. I hope you liked this episode. If you did, make sure you give me a thumbs up and subscribe to this channel. If you want a free wholesaling mini-course, make sure you go to www.LaurenHardyCo.com. I put together a free wholesaling mini-course with all the basics. Make sure you check it out. Thank you so much for reading. Hopefully, it was helpful. I will see you next time.
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About Lauren Hardy
Lauren Hardy is Virtual Investing expert and Real Estate influencer who owns multiple companies in the real estate industry including real estate investment, coaching, and software companies. She is also a Wholesaling Inc coach and co-host of the Wholesaling Inc Podcast.
Her experience in the last decade has been focused on real estate investing and creating products and services to serve the real estate investing community. If you are interested in investing in real estate virtually, house flipping, or virtual landlording, Lauren’s your girl.