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Buyer is waiting for cash proceeds from the sale of another property
Commercial flip property is in escrow but investor gets opportunity to get in escrow on a really good deal before it hits the market.
Investor wants to stand out from other offers on competitive properties with a significantly larger EMD than competitors
A property comes on the market and there are 20 offers in the same day, the buyer can make an escrow deposit for $25,000 instead of $1,000 like the competition.
Liquid capital is currently tied up in other deals
Example: 1031 Exchange – You can identify and put three properties in escrow so that you are not forced to pick specifically one.
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