OfflineA master escrow account is a current account that must be opened to allow the use of individual escrow accounts. A master escrow account cannot be opened as a separate product; it is opened only for the purpose of managing individual escrow accounts....With that being said this is how it would work in a real-life real estate transaction.
If you are NOT a realtor, sometimes you can have a problem getting paid at the close of escrow.
You would use a master escrow account - it that instance to secure your fees. It is primarily there for lawyers, landlords, mortgage holders, etc to use to seperate the other smaller accounts and keep track of them all.
So you would write into your agreement that whatever your fee amount was - it should be deposited into a Master Escrow Account with your name and the buyers names on it - if its the buyer that are paying your fees. This way your fees are seperated from the being of the transaction and applied to a seperate account. Once lclosing has taken place the buyer can release your funds instead of trying to get the escrow company to cut you a check. They seem to have a problem with that if you are not a broker or realtor.
Just a little more info ... hope it helps
Anita
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I've been wondering about that since you can not use a mortgage company to do assigments.
max
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Max
I find that setting up the Master Escrow account gives me a lot of abilty to be flexible as well. Sometimes I may have 2-3 deals going on at same time so I get them to fund my fees under the Master account as sub accounts and it works perfectly.
Start by getting a strong relationship with a good title/escrow company.
You can also use this process for doing subject to's or wraparounds
Anita
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"FAILURE IS NOT AN OPTION"
I've used escrow accounts in construction ie hired contractors to do work at an agreed amount due periodically, and I sign off and release the funds. Is this the same type of thing?
Its EXACTLY the same. So you already know how it works.
I do a lot with Blk sales and sometimes I have it set up as a fee for deed. So everytime they complete a deed and close on said property I get cut a check. So if its a rolling close I may get 10-20 checks or more over a months time.
Awesome way to get paid and very practical
Anita
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TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"