Nov 27, 2020
“Plan your work and work your plan.” Welcome to the Property Manager Broker Podcast with your hosts, Brad Larsen and Phil Mazur. Today's guest is Scott Armstrong, an escrow officer servicing businesses nationwide. Scott will talk about the escrow process in buying and selling businesses, how it all works, and some risks involved. Scott's knowledge is endless, so tune in and see if you can walk away with some tidbits that you can use.
Scott shares what his company does, what a third party contractual agreement is, and the risks of trying to handle a sale on your own. Scott speaks about the reports his company files with the IRS and the benefits and pitfalls of using a traditional title and escrow company.
Listen as Scott discusses how they assist with an owner-financed sale, the language that needs to be in the escrow agreement around trigger events, and whether it is common to see earned money from a buyer go into an escrow account until closing. In closing, Phil gives his insights into the big picture of why using experts is so important.
In this episode:
[02:16] Scott shares his background and what his company does.
[03:00] Scott defines a third party contractual agreement.
[05:45] Phil discusses using a third party company to help close transactions on businesses he has purchased.
[07:25] Scott talks about the risks of trying to handle a sale on your own without a third-party intermediary to have your back.
[10:42] Do you know the legal ramifications of the actions you are taking?
[12:20] Scott speaks about the reporting his company does to the IRS.
[13:33] Scott talks through the benefits and pitfalls of traditional title and escrow companies.
[15:49] Scott shares what they do in assisting with the owner financing side.
[17:32] Scott recommends that a seller always put language into the escrow agreement if the buyer cannot raise the money.
[19:04] Phil wants to know how his company deals with a difference in interpreting what a trigger event is.
[22:32] Is it common to see earnest money from a buyer go into escrow until closing?
[24:58] Phil speaks about the big picture around using experts in escrow.
[26:16] Scott shares a story about a sale that went sideways and the fallout.
[28:34] Phil discusses trust accounts and certification of the escrow accounts.
[30:25] Scott talks about mark to market evaluations.
[33:35] Scott shares how to contact him.
[35:05] Thank you for listening!
Links and Resources:
469-497-7436