Recently got my first property under purchase contract, now I see people saying go to a title company? Go to a title company for what? To make sure the title is clear?
You’re my kind of hustler!!!
Shoot, kill and then aim! LOL
Of course, the title company handles your closing. That is, unless you’re planning to flip this deal to another buyer, and the title company takes your assignment contract and closes on your seller and buyer at the same time.
Otherwise, there’s a double-closing, where the title company processes the sale from the seller to you, and then from you to your buyer.
Or, there’s a sub2 deal, where you check the title, and if it’s clear you have the seller deed the title to you, along with the rights to administer the loan, and you save yourself several thousand dollars.
???
Most title companies will not close without issuing title insurance, which ‘someone’ has to pay for.
Title companies also provide a more convenient processing of the documents than doing it yourself.
I have literally closed on the seller’s kitchen table. I provided the new deed, the notary, and any other paperwork for the sellers to sign, and I was done. I then recorded my own deed. I didn’t need insurance, since I had checked the title myself, and found nothing recorded since the last sale to the current seller, and confirmed that there were no liens against the property. If there had been a lien, I either accepted it, or renegotiated the deal, or walked.
We found a $2,500 lien against one property after we took ownership, and ignored it until our buyer paid us off years later. Otherwise, the title insurance and costs were twice the amount of that lien, and the seller would have had to pay it off before the title company would’ve been willing to insure the title and close for us.
In fact, WE would have had to pay off the lien …for the seller… in order to get title insurance and a closing. Well, the way we did it, we never actually coughed up any extra money to close, or sell. Another reason to try to do ‘sub2’ deals. It’s just cheaper and faster …for everyone.
I only go to a Title Company to pick up my check if I don’t want to wait 3-4 days for it to be mailed.
Your next step is to advertise the property. I use Craig’s List and I try to get attention by using choice words that the rehabbers will notice. Like, Fixer, Distressed, Rehabber’s Special or Investor Special or Handyman Special. I also like to glorify the bad points of the property to discourage the time wasting wanabee investors. Like, former meth house, site of a mass killing, hole in roof, black mold up the yang, sitting over a sink hole, haunted, homeless encampment in the back yard etc.
Back to the Title Company, let your buyer use their title company, if it dont do assignments, the buyer will cut you a check outside of escrow, of course it has to be a good deal.
Good luck pilgrim.