When you are wholesaling a house can you pick your own title company or do you have to go with the same company that the previous owners used?
Is it harder to use the sellers money to fund the transaction? Do most title companies require you to present the funds in order for the transaction to take place?
I live in Savannah Ga and an investor in my area told me to stay away from wholesaling. I would assume it was a good idea to buy houses from the probate courts that dont really need a lot of work and resell them to possible new home owners. He buys three bedroom houses and rents them out to section 8, which is something I wouldn’t mind doind later on. Do you think he is uninformed about wholesaling? I dont have a buyers list yet, but there are plenty of landlords and plenty of first time home buyers looking for good deals. I have very good ideas from these posts on how to advertise and I am very familiar with craigslist, too.
For the probate investors; do you send out the same letter four times or do you send a different letter each time? Would you mind sharing your letters if they are working for you?
Thank you for all of your help, I hope to be I vital part in teaching new investors myself when I have gained experience.
I’m a newb too, so unfortunately I can’t answer your first question. I just wanted to point out that this forum has awesome info on Section 8. Many people love it, many people dislike it. Just wanted to recommend reading up on Section 8 before diving in. Best of luck! :beer
You can pick you own title company. It is specified in the purchase & sales agreement.
In your question about seller financing, do you mean is it more difficult for the title company? If so, the answer is, believe it or not, it doesn’t matter. Title companies mediates the transaction and dispurses funds as necessary, so what you need to concentrate on is getting the best deal possible and putting down those terms in the contract. You may need earnest money in the form of a personal check or cashiers check and then you need the rest of your funding by closing date.
I would ask the investor WHY to stay away from wholesaling. There may be a very good reason. Is this an experienced investor? Would this investor be willing to help or mentor you? Consider working for the investor for free and work on a deal or two together. The experience alone will be worth your free labor.
If wholesaling is your strategy, then start building your list NOW! Although Craigslist is the biggest, there are a many others as well…Backpage, ClassifiedAds, USFreeAds, ClassifiedsForFree and others.
Sorry I can’t speak about probate. No knowledge in that arena.
Hope this helps.
Thank you for your insight. I really enjoy this online club, it has been more helpful finding answers and it seems everyone is happy to help all of the newbies.
For all of the other newbies I wish you well on your new journey, and hope to learn alot from each other later on.
Rob
When you are wholesaling a house can you pick your own title company or do you have to go with the same company that the previous owners used?
If is customary for the buyer to select the settlement attorney or title company. Sometimes the buyer’s lender does their own closings or may have a preferred title company or settlement attorney.
Is it harder to use the sellers money to fund the transaction? Do most title companies require you to present the funds in order for the transaction to take place?
No, not at all. Many sellers will agree to carry back financing in order to facilitate the sale of their property. You are not really using the seller’s money here, but instead the seller’s equity to help you finance the purchase of their property. In some markets, having the seller participate in the financing is the only way the sale will close.
Maybe you mistyped and really meant to ask if it is harder for you as a middleman to use your buyer’s money to close your purchase with your seller. Yes it is harder to use the buyer’s money to fund the transaction if the buyer is using financing or wants title insurance. So many mortgage scams have been perpetrated with simultaneous closings that title companies are refusing to insure title if the seller on the contract is not on title. If the title can’t be insured, the buyer’s lender won’t fund the loan. You can’t get on title until you have completed the purchase with your seller in a separate transaction.
Additionally, more lenders are looking at how long the seller has been on title before they will make a loan for your buyer. If you have not been on title at least 90 days, many lenders will refuse to make a loan to your buyer.
I live in Savannah Ga and an investor in my area told me to stay away from wholesaling. I would assume it was a good idea to buy houses from the probate courts that dont really need a lot of work and resell them to possible new home owners.
Buying probate property and reselling to owner occupant home buyers is not wholesaling – that is retailing. Wholesaling is buying a property at a significant discount then reselling the property to a rehabber/investor at a less significant discount. Your profit in a wholesale deal is often $4K to $6K. The best wholesale candidates are properties that need significant rehab AND which will have quite a bit of equity after repair. The investor who buys the property from you will eventually resell it to an owner occupant or hold it for rental use. In these wholesale deals, your buyer’s market is primarily the cash buyer. You can still wholesale but the deals are fewer and further in between. If you don’t have the money to complete the purchase as well as cash reserves to cover your holding costs until the property is sold, then you should stay away from wholesaling.
In this economy, buyers can’t get easily funded to purchase a home. If the rehabber can’t easily sell a property he rehabs, then he is not going to be motivated to purchase the wholesale property from you. You could get stuck holding a property you can’t afford to keep and can’t afford to fix for rental use. No I don’t think your investor friend is uninformed.
Just how I see it.