Tim, this site has helped me tremendously. Thanks very much.
So I’m working on my first deal, a Sub2. Does anybody have a “purchase checklist”? This is what I have so far:
- put them under contract
- have em sign auth to release financials
- verify their loan info is what they say it is
- do a title search, verify no liens, etc (pay for it or do it manually at the courthouse if no time)
- get a property inspection
- if the numbers still look right…
here’s the part i’m a little hazy on. i know we will need to draft a deed, get them to sign a disclosure of interest in the property (or something like that), a transfer of escrot, transfer of insurance
er… i’m getting lost. I know we’ll need to close at the title company at some point, pay some transfer tax somewhere (how much does that cost?) now i’m really lost. It seems like everything I read tells you how to get the deals, etc, but I can’t seem to find anything that walks you through the close.
Title agent can answer most of your questions about costs to transfer the title. Attorneys charge $75 to $150 to type up a piece of paper called a deed. You can do this yourself for $5 or less at office depot with some hand holding. If you are not putting a lot down i would not buy title insurance which will cost roughly $1000. If you are doing a subject to where the mortgage company does not know of the sale, the escrow account will not be transfered to you. You should get a seperate agreement where the seller assigns the account over to you. This could also be done in the deed of trust and deed instruments. I actually have these forms on my computer and would be glad to help at no charge. I am not an attorney so I can not charge. I would get the title search done at a title company or one of their researchers that you can meet at the courthouse. The cost is $100 or so usually. If you find some good help at the courthouse you can do that yourself too. It is easy to miss something and it can get a bit complicated with marriages etc changing day to day. There are no transfer taxes to pay, only the cost to record the instruments $20 to $30 bucks. Insurance sometimes can be tricky as some agents will not transfer policies. Get the refund due the sellers if this is the case, which will take weeks to receive. Let me know what else i can do to help
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737