Here is an example of 1 of 62 investing techniques I teach in my real estate investing course:

TECHNIQUE #11

DOUBLE ESCROW

BUY PROPERTY WITH A LONG ESCROW THEN SELL AT A HIGHER PRICE TO A NEW BUYER BEFORE ESCROW CLOSES.

First you find a motivated seller and an underpriced property then, instead of finding a lender to refinance the property, you find someone to sell it to at a nice profit – even before you’ve bought it.
If this sounds complicated or confusing, it’s actually not complicated at all. You simply tie up the property by getting the seller to agree to a long escrow period. Then, while the property is in escrow, you go hunting for a new buyer who is willing to pay more than you did. You get this new buyer to agree to close escrow on the same day you have agreed to close escrow with the seller and everyone’s happy.
For example, Mr. Smith has a $100,000 property he agrees to sell me for $60,000 cash. We agree to close escrow within 90 days. I agree to sell the same property to Mr. Jones for $90,000 one month later. We agree to close escrow within 60 days. Mr. Jones intends to put down 10% and get an $80,000 loan.
This way, I will have the $60,000 to buy the property from Mr. Smith and $30,000 cash left over. This is my profit.
Obviously this method will only work in certain limited circumstances. First of all, the property has to be grossly underpriced, so underpriced that you can turn it over for an immediate profit. A property that is underpriced by $5,000 or $10,000 will not do you any good. You need a larger profit margin than that in order to be sure of an immediate turnover. In order to use this method really effectively, you must be able to resell the property for less than the full market value and still make a profit.
It all looks something like this:
Illustration One
Property Value: $100,000
Purchase Price: $60,000
Equity: $40,000
Resale Price: $90,000
Profit: $30,000

Obviously this method has limited applications. It won’t work if you intend to hold on to the property. It only works when you are out for a quick profit. This means you get no tax benefits other than the interest write-offs and the profits will be ordinary income, not capital gains.
Also, it is obviously not the easiest thing in the world to find a seller who wants to give away $100,000 properties for $60,000. It is also not very easy to find someone else to buy the property for a profit and coordinate everything so that both escrows will close at the same time.
You will have to let both the new buyer and the original seller – Smith and Jones – know what you are up to. You will also need a good escrow agent to help you arrange it all. You may also need an attorney. It is not a simple transaction, but if you can put it all together, it can be more than worthwhile.
The property involved does not have to be free and clear. You can also use this method when there is an assumable first loan and/or when the seller has agreed to carry a second. Instead of having the new buyer refinance the property, you pass on the loans. It would work something like this:

Illustration Two
Property Value: $100,000
Purchase Price: $60,000
First Loan: $60,000
Equity: $40,000
Resale Price: $90,000
First Loan: $60,000
Cash Down Payment: $30,000

Or possibly like this:
Illustration Three
Property Value: $100,000
Purchase Price: $60,000
First Loan: $60,000
Equity: $40,000
Resale Price: $90,000
First Loan: $60,000
Second Loan: $20,000
Cash Down Payment: $10,000

PURCHASE AGREEMENT AND RECEIPT FOR DEPOSIT – Illustration one
Received from Wallace Investments hereafter known as buyer, the sum of $1.00 as deposit on the purchase price of $60,000 for the property known as One Doubleescrow Drive, Anytown, U.S.A., under the following terms and conditions:
1. Buyer to pay $60,000 all cash at close of escrow.
2. Escrow to close within 90 days of acceptance on or before April 20,1983
3. Seller is aware that buyer is purchasing the property for immediate resale at a profit and not for long-term investment.
PURCHASE AGREEMENT AND RECEIPT FOR DEPOSIT – Illustration Three
Received from Double Escrow Danny hereafter known as buyer, the sum of $1.00 as deposit on the purchase price of $90,000 for the property known as One Doubleescrow Drive, Anytown, U.S.A., under the following terms and conditions:
1. This offer contingent upon buyer and property qualifying for a new loan for at least $72,000 at prevailing interest rates and terms within 45 working days.
2. Seller to carry a note secured by a second deed of trust in the amount of $9,000 payable in five years including interest of 10% per annum
3. Buyer to make cash down payment of $9,000.
4. Escrow to close within 60 days of acceptance on or before April 20,1983
5. Buyer understands that seller does not yet own title to property, at this time. But seller warrants that he will be able to deliver clear, marketable title a close of escrow.
6. Seller to provide a pest control clearance from a licensed contractor.