Building Your Team Pt 2 (Investor Friendly Title Company)

                     Building Your Team Pt 2 (Investor Friendly Title Company)

One of the most important layers to wholesaling is working with an investor friendly title company. What is an investor friendly title company? My definition of an investor friendly title company is a company that is experienced with contract assignments, double closes, etc. Contract assignments is when you put a property under contract and assign your interest to an end buyer (wholesale). Some title companies frown upon wholesaling due to miseducation, lack of knowledge, or just plain old ignorance. Some title companies fell that wholesaling is illegal, the devil. With that being said before you open up escrow with a title company please do your due diligence to make sure they are a great fit for you. This is some of my questions you can ask your prospective title company. 1.) Are you familiar with contract re assignments? If they have no experience it’s probably not a great fit. Investor friendly title companies should have at bare minimum a contract and re assignment agreement to share with you. 2.) Any experience doing double closes? A double close is typically done when the assignment fee is a substantial amount and also you don’t want the seller to see your assignment fee. Double close is when you fund the front side of the transaction (a) and then sell to your buyer on the back side (b). 3.) How do you structure the assignment fee on the hud1? You want to know if they word it as a development fee, consultation fee, etc. This is good to know if your client asks what is this fee, of course it would be on the buyers side of the hud1. #OBJECTIONS 4.) How do you release earnest money? This is by far one of the most important questions to ask. If your buyer puts up an earnest money deposit and don’t perform you need to know how that earnest money deposit is released. Also on the other hand if you don’t perform by the settlement date do they immediately release the money to the seller or do you both have to sign a release agreement. These are just some common things you should know sooner than later. Happy Fishing!