Is it usual to do a title search before you get the house under contract? I assumed that once you had the house under contract and found your end buyer, and sent all your contracts to the settlement company, that that was when you ordered a title search.
If I had to do a title search on every house I offered on, that would cost me a lot of time or a lot of money.
You could lose a deal by not doing your due diligence first. Find a title company to do your title search and make sure you treat the title company good and used them when you get ready to closed.
Once I have a house under contract, it goes to my lawyer who does the title work. If he finds any issues, he tells me and explains how to remedy the situation. Then we go back to the seller and see what they will do. In dozens of deals, we’ve only had title issues a few times. Two times we were able to resolve the situation. On one, the bank had improperly foreclosed and refused to fix things so we had to walk away, but I don’t think that’s a bad record.
You could lose a deal waiting for a title report to come back while some other investor is signing your sales contract. I say, get the house under contract first. Once the deal is locked up, then run title. If there is a problem, either fix it or walk away.
I am not sure what you mean by you could lose a deal if you don’t do your due dilligence first.
What I mean is there are a lot of wholesalers that is trying to sell someone else homes just to make quick buck. We run a title search in about one hour to determined the owner and if there are any liens or problems that would keep from making a deal. You can do it your way and lock up the deal and if something pop up you can walk away from the deal you do that a few times and the news will spread like wildfire that you walk on deals.
is the only way to do an acurate title search through a title company and dont they charge like 300-500 for this .
that can add up super fast and for a beginner such as myself i reluctantly say i just dont have that much cash laying around
i tried looking up the property on the county recorders website and got nothing
so i am going to the county in person to do research about 36 miles away
additionally i am to believe that the seller owns it as research in the MLS thanks to a broker im working with shows it was purchased cash last year
i see that the seller wants to get more than what he paid for it a year ago and it is unfortunate that he is blind to the fact that he made a questionable investment as this property is obviously in need of repairs : floors rising up and walls splitting foundation bricks cracking
he just dosent see it needs repair and he stated that a few homes in the area sold for 126k
however i looked and these were all FHA purchased homes and from my understanding those type of purchases require and appraisal and inspections that this property CLEARLY will not pass
this guy thinks he has a diamond when its just coal and not a desirable property the activity in the area RODEO california is not that active and sold comps for cash purchases only yeilded 4 in the last 6 months each maxing out at no more than 80k and he wants 100k
all i can think of is to do a seller finance deal and try and put off payments for 6 mo or so that way i might be able to sell this to an investor i know.
Have shown him in person when went to look at house
he is in denial that it needs work eventhough the floors look like a 5th grader installed them i mean there is like a 2 inch gap around all the corners
so unprofessional its not even funny and when i pointed out the floors CLEARLY
raising up in the middle of the room his response was well i guess you can just put carpet over it ummm no there is repairs that are needed floors just dont rise all by themselves and the cielengs are soft you can obviously see sings of the roof leaking
i know the only way this would work is if i seller finance with a bit down like maybe 5-8k and finance the rest to his 90k asking price then i might be able to flip / wholesale this property
what im asking is the best way to structure this to work more beneficial to an investor so if you were to be presented this deal what terms would be interesting enough to you to take action and purchase
So, if there is an issue with the title to a house, and after attempting to get clear title, it becomes apparent that it would be impossible to get clear title and that no one can buy the house, so the deal is canceled because the seller cannot live up to his/her contractual obligation to provide clear title, OR if I cancel an uneforceable contract with someone fraudulently trying to sell a house they do not own (because you cannot sell a house that you don’t own), if the other party is unable to fulfil their obligations or are being outright fraudulent, and I cancel, I would get a reputation for walking away from deals?
It is better to know what issues there are before you go under contact because some sellers want you to put up earnest money to make sure you are real.
If the seller can not delivery clear deed you get your earnest money back that is in writing but if you do not closed the seller will keep the earnest money.
interesting you say this because my last deal i feel the seller was fraudulently trying to sell her fathers house and she would not provide all the needed docs to the title co which she picked by the way
i wonder if i should take the effort to sue her as my investor still wants her dump of a house and would like me to sue but i never been in litigation before and feel as it would only bring more headache for a shot at 3k max
It is right that you require much time for title search for the property but it is most necessary before purchasing any property as it would create problem after purchasing property if title search not completed properly.