Improving The Closing Process For Wholesales

[Daniel Sisto]

What's up BP, 

We are looking for some additional advice as to some of the systems and processes that you have put in place to improve / streamline the wholesaling closing process (after assignment to the closing table). A department of our business is wholesaling and we have been ramping up that department due to the softening in our market on the retail resale side. 

Currently we are assigning about 12-15 properties per month in our market. Although we have been assigning this volume, we have had several issues getting to the closing table, some out of our control and other areas that could be improved on to streamline this step of the process. 

Our issue is not finding discounted properties or the cash buyers side, our issues are arising after these steps have concluded. 

Some of the issues we are running into that are either slowing the deal up or terminating the file completely. 

1) Liens/judgements arising during the title search preventing the sale

2) One off issues, such as shared driveway issues, shared parcel issues

3) Death certificate ordering (slowing down process) 

4) Abstract & Survey updating (taking about 3 weeks to complete in our area) 

5) Attorney Communication (When our attorneys are not on one side of the deal) 

These are just some of the issues that we are seeing in our market. Currently cash closings are taking anywhere from 4-6 weeks to complete. 

Here are some of the systems we have put in place to try and mitigate some of the issues we are seeing: 

1) Always recommending 1 of our attorney's to either the buyer or the seller so we can have clear communication throughout the process

2) Sending out and introductory email once assigned to all parties involved (buyers, attorneys, etc) asking them to begin updating the title and abstract ASAP. (We have been waiting to update docs after we assign because we have been getting caught with sunk costs if the deal does not close) 

3) Educating both buyer and seller as much as possible and clarifying any concerns before contract is signed (buyers through drip campaigns when they sign up for our list and through conversation, sellers through conversations at appointments and contract signing, also sales folder left to all sellers on all acquisition strategies) 

4) Sending out a Property Update Document to our attorney every Monday. (Our attorney gives us an update on every file that is outstanding to start the week) 

5) Communication with buyers and sellers throughout the closing process to move things along. 

I guess long story short, we are looking to see if you guys are having similiar issues in your area, if not, how come and what systems have you put in place to mitigate some of the issues we spoke of above. 

As always, thanks for any of the input.