All Forum Posts by: Burt L.

I much appreciate the replies to the thread. I was able to sway the listing broker bring the escrow to my own investor-friendly title company. 

Did some word searches about RESPA and a seller requiring a certain title company and found more than enough to convince the broker to change title companies. 

Now I have to walk in a cashiers check for $15K tomorrow for the earnest on a wholesale deal. That's what it take to play in the local sandbox anymore. 

This may the 1 millionth issue solved on BP, or even more! Below is the URL to one of the articles on RESPA and title company selection matters.  

http://www.hawleytroxell.com/2017/10/respa-section-9-title-company-selection/http://www.hawleytroxell.com/2017/10/respa-section-9-title-company-selection/

I believe I"m finishing up negotiations on the A side of a large wholesale deal and the sticking point seems to be the choice of title company. 

Property is a multi-family that I will then split into different units for the B side buyer, as done a dozen times before. We've only done one bigger, but this is also a seven figure purchase price. I go thin on my fees on MLS deals so as not to alienate buyers on future deals.

Its a Colorado standard contract, and our contract states that whoever pays for the title insurance selects the title company, and I wrote that I would pay the title insurance and closing costs at the title company I specified, in the offer Also in their counter is that they want the tenants to get 60 days notice instead of 30 days and the broker will get the full commission, neither of which is bothersome.

But if I use his title company and his closer, they will balk at my double closing. I have double closed with two other escrow officers at their title company, but not this particular escrow agent and the brokers history shows he's closed 60 transactions in the last 2.5 years. Broker has worked with this title officer a total of twenty years or so and is insistent, and has countered back with their title company and the sixty days for the tenants, and that the broker gets the full commission as mentioned (I dont use a buyers broker so my offers are more workable, of course).

I could counter back agreeing to all but the change in title company. I could give the broker another .5 or 1% broker fee. I could agree to their title company, but to use one of the agents I am familiar with there - though that company was clumsy each time and some wrong things were said and this is delicate. But this all raises the question of why I am so insistent on this first title company, and why would I pay more to do so? Conversely, why is the broker so insistent on his title company, if the seller will now have to pay for a 3K title policy. Not sure why the broker would advise the seller pay that. It seems there must be other perks the broker gets for using this company. And if there is a theoretical claim concerning title insurance, I'm the one who needs the insurance and not the seller and I have to use a company I didn't choose - though I wont be around for long.

This was the first time I had used an escalation clause, and I know the two offers closest behind me had buyer brokers, so the broker would really prefer to use mine as he gets both sides of the commission, but is sticking on the title co issue, and goes on about how good his closer is.

The deal has plenty of room in it, but if I have to go to transactional funding, it will cost a great deal for one day and monies will have to be wired from that hard money lender, which isn't in my contract and the "home-field" closer may share that detail which is probably more important than the transactional cost though that cost is certainly substantial. Using their title company also presents risks for my buyer in his part of the process. 

What might be good reasons for a buyer to explain using the title company of their choice, instead of what the broker is comfortable with? These big deals just shorten my lifespan a little more - 1/2 lol...

As on many multi-unit properties, there is no showings until under contract on this one. Property is now under contract by myself, probably at least 5K higher than necessary. So hard to tell if other buyers are real or pulled from thin air. 

Hope to find some things on inspection to bring the purchase price down that will cost less to remedy.

I have liked the idea of doing mailings directly and removing many of the transaction costs. We'll see how the inspection goes,  or as was said at my old power plant job- As the Turbine Turns. 

MLS deals without the offers being held until x date are much more straightforward; these are my least-favorite format and do remind more of lenders offering foreclosures. Now I get to see the interiors of property.

I sent another offer before the deadline, adding 5K. Spoke with the listing agent, received rent roll and will know shortly - we will see how the Housewives saga concludes. 

I will look at having my attorney draft a an escalation clause for future use as I probably just gave away 5K, but its a strong property. I really like the ability obtain a copy of another redacted offer, instead of pulling offers - real or imagined - out of thin air.  

The thread isnt about hiring an agent- I used to be an agent. - done it many times successfully and listing agents like the additional fee split with the sellers, and I leave that up to them on how to split it. 

I going to learn how to break through this repetitive scenario instead of being told to get a buyers agent further in-between matters. I prefer dealing directly with the listing agent instead of bringing another set of personal interests in. Thank you. 

I am running into this frequently and looking for a way to work around. In a strong local market, income properties are often listed in stating that offers are being taken for x number of days, and acceptance will be x number of days afterward. This drives me crazy as the listor is looking for more than the list price regardless of whether there are other competitive offers or not. 

On this 4-plex, I made a full price offer with no buyers side commission payable, title insurance and closing costs buyer paid,  no appraisal contingency, and sent a copy of bank statement showing more than sufficient funds for cash puchase (account number redacted) with a 12 day closing and an inspection clause. I made the acceptance date prior to the end of the timeframe offers were being accepted to see if it would be taken, and there was no response- as suspected. 

The end if the period for taking offers is end of business today and I have a message from the broker wanted to see if I am interested in the property, ignoring the fact I had already submitted an offer, which deadline has passed. 

At $700K with no buyers side commission (representing myself as I now do) and title insurance closing costs buyer-paid, I was already $20K higher on a net sheet to the owners- and still they are looking for more on a new offer. 

How can I break through this ongoing approach of trying to get me to out-bid myself? I dont know if there are even any other bidders, though it will be insisted that they exist. I would like to ask for a copy of the other offers, with entities redacted, but the broker will claim to be offended by this. Some brokers will even say that they had so many offers that they are asking one more time for highest and best to bring it further up, with no evidence that such offers exist. 

How can I find out what they really need to make this work, without the exercise in salesmanship? Broker has left a message asking if I am still interested - while ignoring my first offer - with the end of business today being a deadline for offers. I'm trying not to build resentments. 

I certainly would have preferred to have the property under contract prior to working through the un-released lien issue. The sellers attorney recommended she not sign the contract until it was resolved, unless there was a provision that the seller could cancel the contract if a lien was found. My attorney said the reason for that was that the seller then could try to raise the price to cover the lien, and sell to another buyer, in the hot market. It was for a mortgage of 58K taken out in year 1984. I was at risk the deal would fall as the sellers attorney had forced the issue before the property was under contract. The rule of the road is to get the property under contract first and then work through any title matters. 

In the end, my attorney located someone at the original mortgage company who agreed to sign an instrument stating that no monies were owed but the original note was long gone. I think they are used to getting these calls and make $125 each time. Most interestingly, the title company had already said they were willing to "not recognize" that lien and said they would issue title insurance anyway. My attorney was a little suspect at why they would be willing to do this, and said I may have issues on my resale if not at the same title company, or by any future seller after me- but that my liability would be limited to the increase in value above the amount of my policy.  My view was that after dozens of closings at that title company they were willing to be helpful, but I did follow the attorney's skepticism on this. 

Regardless, it was resolved and is now under contract. Thanks to all for another case solved with the help of BP!

It looks like the Richard Gill Mortgage Co became Gill Savings and then went through this list of acquisitions of its assets. If I click on the last one, it appears to be part of Bank of America now. Maybe they would be required to release the deed, though it may take longer than a Quiet Title action without an Answer being filed?

Might have to copy and paste this link if it doesn't work automatically.

http://www.usbanklocations.com/gill-savings-associ...

I've been working with the seller for a long time and she is now ready to sell. I had an O & E run and it shows a DOT and a mortgage of $56,000 borrowed 33 years ago. The owner received the property in a divorce ten years ago.

Her attorney says it cant be sold unless the mortgage company - a Richard Gill Mortgage Company located in Texas, releases the deed on this Colorado house. The only way is that if I take it subject to the potential debt and the title company cant issue title insurance with the note being released.  Seller assures me the 30 year mortgage was paid off 10 years early.

The Richard Gill Mortgage Company seems to have disappeared and there aren't any assignments of the note. Is this a dead deal now, or is there an alternative way around this? Thanks for any input - I seem to have hit the end of the road on a long deal.

I appreciate the reply. The same size lot next door sold for 300K plus the costs of doing an asbestos abatement and then a scrape. Based on rents of this older six plex, it has a value of approximately $600K so its apparently still the highest and best use.

I am looking for a way to show a buyer there is additional value to a residential landlord thata developer will eventually want to put 14 or so townhomes on this lot as well but its hard to quantify to that potential residential landlord and I'm reaching above my current residential experience base.

How might I present this to a residential landlord - that there is additional value in the property?