Hi, I’m starting up my real estate investing company and have decided to start out wholesaling to get into the business. I am wondering how extensive of a title search you do on the property your looking at with the “motivated seller” or if you let the end buy do the title search or leave it up to the escrow company? Also, wondering what the best way to do the title seach would be…if its just using your tax assesment website or if you need to be more extensive?
Leave it up to the escrow company. Order it as soon as you get the contract with the seller.
Good luck!
Is there a way we can postpone opening an escrow until we find the end-buyer? What do you do when you already opened the escrow and can’t find an end-buyer?
I rarely open escrow without my buyer in place. Best to wait until everything is set before you get the title company going, unless you have a buyer that is anxious and you know you can find a buyer.
If you can’t close on the deal on your own, tell the title company to stop working until you find your buyer. Then get busy and find a buyer.
If you can’t close, tell the buyer you need to cancel the contract. Depending on how your contract with the seller is written, you may have to pay them the earnest money.
good luck
thanks cincyben! what escape clause do you use in your purchase contract to avoid paying any liquidity damage for not closing the deal? i was think i will give myself 3 weeks max to find an end buyer, if i cant i will cancel the contract.
If buyer defaults under this contract, any and all monies deposited by buyer(s) shall be retained by seller as full liquidated
damages.
Thanks cincyben, that is a good one I never thought of putting into my contingencies! Good Info!!!
Yep, I’d put that into the actual contract itself, that way you will never forget to write it in.