It has been an interesting day already. We have decided to drop the single family home and just buy the two duplexes. With 4 units, and the total contract price dropping significantly, we will still cash flow very well on this deal. But the interesting part came today, when I heard from my investor that the title company called, asking for release of earnest money on the single family home and the adjoining duplex. This came as a surprise because we are not even out of the option period on this contract. Luckily, my investor called me to ask me about before taking any action.

The escrow agent at the title company has an established relationship with the sellers, and handles all of their transactions. This is why you have to be very cautious when dealing in real estate. You can get stabbed in the back very quickly if you aren’t extremely careful. Question everything. They have no right to release earnest money until the option period expires, which isn’t for another 3 days. So today’s tip is, question everything, trust no one. This policy probably saved us over $3,000 today.

Until next time, sign up for my RSS feed to get automatic updates as this transaction progresses, and all other posts as they become available here at Personal Finance Resources.

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