I am totally green and just learning what various terms mean. I’ve been reading about REI and specifically lease puchasing. I don’t understand the importance (or lack of) of being on a deed and/or taking title.
My question(s) is: Is there a difference? What does “deeding me the property” do exactly…and is it the same as “taking title” to a property? What does “deeding me the property” do for 1) the Seller and 2) me as investor ? Learning to crawl here before I walk.
It can get a little complicated. The deed is a piece of paper where the owner seller or otherwise deeds you ownership of the property. You are said to be the owner of record and title holder if the deed is vailid and recorded. I can give you a deed to just about anything even if I do not own it. It would not be valid and you would not be the title holder. You can also get a deed from an owner but not record it and if someone else records another deed first they will be the owner of record. These types of things happen often where there are disputes over ownership. The laws vary from state to state but that is pretty much the norm in Texas. There are also many other variables involved such as marriage and divorce and death. I hope this gives you a better understanding. It is always important to have a title company check the title to see if the owner in fact ownes the property and if their are any unknown loans, judgements, taxes etc owed against the property
Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile
A Quit Claim… (in Texas most title companies prefer a No Warranty Deed)
A Quit Claim deed is just that a Deed that says If I have an interest in something… I am deeding that interest to you… so, I could quit claim the golden gate bridge… to you… but, since I have no interest in that bridge… You wouldnt either… and furthermore I am not guaranteeing or warranteeing anything… I am not liable…
A warranty deed on the other… is where you are guaranteeing that you can pass good title… And if you warranty deed me anything that isnt right… I cna hold you liable… and sue…
Thanks alot to both of you. I am in TX. Based on the previous post, is it fair to say that quit claim deeds are pretty much worthless (compared to warranty deed) when looking to take control of a property? Or is even having my name on the deed all that important when I’m looking to assign a contract to another investor?
It seems like I’m missing something…
I appreciate your patience in answering these newby questions…
You may want the get the deed sometimes. If there is no equity and they are willing to give you the property you may want to get the deed. If you can sell the property on a lease purchase or just sell it outright for a few grand you are the owner and no need to deal with contracts that can be clumsy. If the seller has equity and wants cash you would just want to sign a contract with enough time for you to resell and no need to get the deed. You asked what the different terms meant and we both tried to explain the deed process. I hope this helps get you geared toward buying and selling or flipping contracts. I hope you realize it is not as easy as it seems on TV. It takes hard work looking at many deals and doing comps etc before you stumble on a good deal that you can make money on . Even seasoned investors spend time and money building a network of contacts to buy and sell property. It can be rewarding or disappointing. Market conditions can change for several reasons nationwide or locally. Hang in there and do some more learning and even on the job training.
Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile