So heres my situation I’ve been grinding really hard to market and been calling motivated sellers an making deals on the property until I ran into the road block that you need a title company. I was thinking of doing assignment contracts on the property since I dont have a car here away at college and wouldn’t be able to go to the closing. I also dont have alot of money but am doing what I can. How do I go about getting a title company? Do they cost money? Do you have to meet them? Can it be done over the phone? aNything would help
A title company can handle everything you need done by phone, email, FEDEX, and FAX.
If you don’t have a car, and can’t borrow one, then perhaps you’re just not prepared to do business yet.
Otherwise, you can partner with someone locally that has the assets you need to do deals; like a car.
Perhaps if you’re going to flip wholesale deals, you might simply partner with a local wholesaler. You funnel deals to him, and he finds a buyer, and you get a finder’s fee.
Once you’ve got your first assignment fee, you can buy a motorcycle, a moped, or a bicycle.
I’ve seen articles/videos saying with assignment deal you don’t even need to be there but your saying I do. So which one should I belive?
Well, you’ll read all sorts of “possible” ways of doing things, but not “probable” for someone with no money, no experience, no connections, nor ability to organize, or track, and/or motivate others…
That said, I gave you a clue on how this is done, but I’ll spell it out.
You need someone ‘on the ground’ who can actually inspect the property to a least confirm what you’re buying; analyze the costs of repairs; verify comps; and assess the condition, send pictures, etc.
Without this, how will you know what you’re contracting to buy? Are you taking the seller’s word? Good luck with that.
If you’re going to wholesale the deal, you need a wholesale price. You don’t need to see the house before you open escrow, but somewhere along the line, “somebody” has got to see the house to confirm this is actually the deal you think it is. Nobody is going to do this for free.
It could be an agent you contract with, looking for a listing.
Or it could be a local bird-dogger, or local wholesaler who’s expecting to split/share the assignment fees, with you, etc.
Or perhaps it’s a local home inspector that you hire, to go through and perform a professional breakdown of what’s necessary to make the property habitable and help you confirm this is the deal you were expecting. (There’s habitable, and then there’s marketable. These are not necessarily the same things). This person is not likely to understand the difference in the professional sense, like another wholesaler necessarily would.
Then once you close, you’ve got to have someone who can secure the property against vandalism during your marketing period AND show the property to prospective buyers. Who this is, depends on you.
The assumption is that you have a local title company handling the closing for you, so the issue is simply getting the appropriate docs to them, and providing a place for the buyers and sellers to come, to sign paperwork and close.
It’s way more complicated than this, but one of the most active wholesalers I know in the nation, that does remotely what you’re talking about doing, is Todd Toback. He is the most active (whale) wholesaler in So. Cal at this time.
His direct mail list is 120,000 strong and he mails every 30 days. His sales staff prospects, negotiates, closes and flips his deals for him at this point all over Southern California. He was the lease/option expert I learned from, before he focused his entire operation on wholesaling a while back.
He offers a dozen videos and a bunch of pod-casts that are full of actionable information on wholesaling. It’s good stuff.
I got a phone call from somebody last year, that I referred to Todd, whom told me he got enough free information from the videos and pod-casts, to find and flip his first two deals.
I get nothing from this referral, so take it for what it’s worth.
The pod-casts are here: https://itunes.apple.com/us/podcast/id525192157
Well I mean thanks sort of discouraging but Im not going to give up only going improve and better myself with the info you gave.
One of my deals the bird dog found this old junker. I had my bird dog go back to property and take a lot of photos.I got the house on contract after talking to seller on the phone. I emailed her the contract to sign and she emailed it back to me. My bird dog changed the front lock and stashed a key there. The buyer took our assignment and the contract with seller to his Title company and started escrow.
It’s crazy because I never met the seller or buyer or my bird dog.
However, Having my bird dog on ground zero was crucial, along with the photos he was showing the house to potential buyers and doing some running around, going to Home Depot purchasing and installing the door knob. I had him checking tax records to get owners names.
He was also checking comps with local realtors. He probably did 90% of the work.
Its true I did this deal sitting on my assets in front of my PC, but I needed help.
@randoskie (please note im still in the learning curve of this business) A bird dog is someone you pay to do all the work of taking pics of the property and stuff. Correct? How do you go about finding one of these people? Secondly when you put a house under contract, do you have to change the locks?
I recruit bird dogs in my city and surrounding towns by placing ads on Craigs List under employment opportunities. Property Finders wanted for local cash investor.
On this house the seller didnt have a key so we offered to put a new lock on.
I only pay my bird dogs if we close on the house, so its difficult to motivate them.
I have talked to hundreds of potential bird dogs, most never even try, some will send a few addresses and only a few will send a lot of addresses and most of those will quit after a few weeks if I cant do a deal on houses they send.
I constantly run ads, right now I have a hafl dozen bird dogs that send me addresses on a regular basis.