How Escrow Works in a Cash Real Estate Deal (Explained with Stick Figures!)

🎯 How to Close a Real Estate Deal with a Cash Buyer and a Free & Clear Seller (Escrow Explained Simply)

Are you confused about how real estate closings work—especially when it comes to cash transactions and creative financing? In this video, I break down exactly what happens during a real estate closing when a cash buyer is purchasing a house from a seller who owns their property free and clear—with no mortgage or liens.

If you're getting into creative real estate investing, wholesaling, Subject-To deals, or cash offers, this is the foundational knowledge you must have to succeed.

🔍 What You'll Learn in This Video:

✅ What an “all cash” real estate transaction looks like
✅ How the escrow process works when there’s no lender involved
✅ What a deed is and how ownership is transferred
✅ The role of the escrow company in closing
✅ How to explain this process to sellers and build trust
✅ Why understanding the “cash for deed” model gives you a competitive edge
✅ Visual breakdown using stick figures so you can truly see the transaction unfold

🧠 Why This Matters (Especially for Creative Financing Investors):

Most people trying to get into real estate investing never actually learn how the closing process works. They rely on agents, title companies, or wholesalers—and miss the chance to become real deal-makers.

But if you want to be a real investor who can close deals directly with sellers, you need to be able to explain:

How money moves
What gets exchanged
Who is responsible for what
And what happens at escrow
This video gives you the tools to explain the closing process with confidence—so you can educate your sellers, remove fear, and lock in more deals.

📌 Real-World Example in This Video:

Imagine you're the buyer. You've got the cash. The seller owns their house free and clear—meaning there’s no mortgage and no bank involved. You negotiate, sign a contract, and head to closing.

Here’s what happens at escrow:

💰 You give the cash
📜 The seller gives the deed
📂 Escrow handles the transfer
🏠 You walk away as the new owner

Simple. Clean. Powerful.

This is the exact model many real estate investors use when flipping, wholesaling, or acquiring rentals using seller financing or Subject-To.

🎯 Pro Tip:
Once you truly understand this simple 2-step dance—cash for deed—you can apply it across all creative strategies:
→ Wraparound mortgages
→ Subject-To deals
→ Owner financing
→ Assignment of contract

Because at the end of the day, every real estate deal closes at escrow, and knowing how that works gives you leverage.

💬 Let’s Connect – Drop a Comment!

If this video helped clear up some confusion, let me know in the comments!
Have questions about escrow, cash deals, or creative financing?
👇 Drop them below, and I’ll personally answer.

📚 Want to Go Deeper and Learn to Close Creative Deals Without Using Banks or Credit?

🚀 Start Here:
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👉 https://myrealestatedojo.com/subto/courses/

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