When 4 title companies tell you no, know that the 5th may say yes

[Jeff Soloway]

I'm going to start this off by briefly introducing myself and by giving some context to this success story. I'm Jeff Soloway, a new college graduate that decided to jump into the world of creative real estate investing instead of into the 9-5 workforce with my 5-year degree. I've been a wholesaler in the metro Detroit area since early 2015 and have three deals under my belt. Here's the story of the most recent deal, hopefully others can take something away it:

A few months ago I got a call from a motivated seller. He told me how he was appointed personal representative of his late brother's estate.....2 years ago, and that there was a house involved. He said that the house had been vacant since then and admitted he was a bit of a procrastinator. You think? I briefly conversed with him about the house, asked about its characteristics and condition, and asked if he'd like to meet at the property for me to take a look at the house. We never talked about price, something I'd recommend when first starting out. The experience of meeting with any and all sellers is invaluable and will make you more confident when the great deal comes along, even if the present deal isn't right. The next day I met with him, went through the house, and we negotiated a price. We signed a contract that day, and I was ecstatic as a new investor. After getting the purchase agreement to the title company and starting to work towards finding the right buyer for the deal, I got a call from the title company.

The title company called and told me they couldn't issue a policy for the property because of a cloud on the title. They told me the title couldn't be conveyed via a warranty deed.

The problem with the title goes as follows:

Person A bought the house, with his wife, in 1965.

Person A sold the house, with NEW wife, in 1968 to Person B.

Person B was the brother of the gentleman I was in contact with. It's his estate the house was in.

The title company told me that the title could not be insured without exception, unless they had original documentation of the original wife's relinquishment of all interest or a copy of the owner's title insurance policy. Keeping this story short, neither one of those options were feasible, and I wasn't experienced enough to know anything more than what they were telling me. Being new to this business, I took this as a dead end and was severely disappointed. I told the seller that the title had a cloud on it and I couldn't do anything for him. I told him that he needed to hire an attorney and file for a quite title action, something that a self-proclaimed procrastinator certainly didn't want any part of. I felt terrible.

A few days went by, and I couldn't stop thinking about the deal. I decided to submit a post to the forums here on BP and see if anyone had been through a similar experience and if anyone could offer me a useful suggestion. That's when Rick Harmon, a very active member of BP, offered me a ray of hope. He let me know that not all title companies operate by all of the same guidelines, and to not forget that these companies are in the business of selling insurance. He suggested that I call all of the title companies in the area until I find one that will insure the title.

The next day I got out my phone, "google-mapped" all the title companies in the area, and started dialing. The first few companies I talked to told me what the original agency had said. They told me the title was not insurable without an exception. I became discouraged again, but decided to keep trying. On the next call, I began explaining my situation, the same way I had previously explained it all the title officers before, but this time I got a different response. The title officer told me to send him some information, and he'd take a look at it. I emailed him all of the information I had, and got a response the next day that he was comfortable insuring the title based on everything that he saw. Needless to say, I was shocked. I thought the deal was dead. I relayed this good news to the seller immediately, and over the next couple of weeks, the transaction got put together, the buyer was lined up, the transaction was closed. The seller got out of this seemingly impossible situation, got paid for the house, and a rehabber in the area got a great property that was ready to be flipped.

The final takeaway from this story is: persistence, not just when 4 title companies shut you down, but when things don't go as planned in any aspect of your business. This business is often difficult, it takes hard work and it takes persistence. I'd like to thank BP and Rick Harmon for helping me through this transaction. I hope that my story will help other investors, that find themselves in a seemingly impossible situation, find their ray of hope. Don't give up, BP is here to help!

- Jeff Soloway

Crown & Oak Solutions