Feature · While you raise
Investor money held safely until closing day
Investors send their money to an escrow account in the deal’s name. Nobody, you included, can spend it until closing. If the raise misses its minimum, every investor gets it all back.
Free to start. You pay nothing until you submit a deal.
Where investor money goes
Your bank
You wire or ACH your investment.
Escrow accountYour money is here
Held for you. The sponsor can’t touch it.
Title company
Released only on closing day.
The property
You own a share of the company that owns it.
What it is
Escrow is a neutral account held by a third party. Each deal has one. Investors receive wire instructions only after they have signed and passed their checks, send the money there, and see its status in their portal. On closing day escrow pays the title company. If closing does not happen, escrow pays investors back.
How it works
1
The account is opened for the deal
Its details are stored encrypted, and any change needs a note and alerts the investors who viewed the old details.
2
Investors fund it
Only once their documents are countersigned and their sanctions screening is clear do they see the wire instructions. We record each wire when it arrives.
3
The minimum decides
At or above the minimum the deal can close, and escrow sends the money to the title company. Below it, every investor is refunded in full.
4
Refunds are tracked too
When a refund is sent, it is recorded and the investor is told.
How it creates value
Followers can say yes
The most common thing a follower worries about is a stranger holding their money. Escrow answers it.
Fewer chances for fraud
The details are never emailed, so a spoofed email cannot swap them.
You do not hold money
Not touching investor funds keeps you out of a long list of problems.
Why you need it
People will not send money to a sponsor’s personal account, and they should not. A separate escrow account is how a first-time sponsor earns the trust a big firm already has.
An escrow account for investor money, typically
$1,000 to $3,000
Ranges from published law firm, investor-software and CPA pricing, for a deal with about 40 investors. On DoorRaise it is part of the flat fees below.
Without it
- Investors wiring to your own bank account
- Nobody able to prove where the money is
- A manual refund process if the deal falls through
With DoorRaise. The escrow account is part of the $500 setup fee, and escrow paying the title company at closing is part of the $5,000 closing fee. See pricing.
Questions
Can the sponsor take the money out early?
No. The escrow terms say it goes only to the title company at closing, or back to investors.
What if my raise falls short?
If the minimum is not reached, every investor gets their money back from escrow.
How do investors send the money?
By wire or ACH to the account shown to them after they have signed.
Ready to raise your first deal?
Create your free sponsor page. You don’t need a deal yet.
DoorRaise checks facts, like identity and the property documents. We don’t pick, rank or recommend deals, and we don’t promise returns. DoorRaise isn’t a law firm and can’t give legal advice about your own situation. Offers on DoorRaise are open to accredited investors only.