All Forum Posts by: Jordan Stevens

I really only like Quit Claim deeds in very particular circumstances.  In short, I do not like them to be used to transfer title.  They can be used to help verify there is not a particular cloud on a title.

There is no reason to take a lot of time in this post explaining what they should be used for.  Not using them unless a title company suggests they need one is a good rule.

A seller tries to take away any possible warranties. The less the buyer agrees to the better for them.

As a purchaser you want exactly the opposite. You want the most security for reps and warranties from the seller. This way if something goes wrong in theory you have recourse against them. Collecting is a whole other issue.

General warranty deed - Highest level and the seller warrants the whole time in the chain of title.

Limited warranty deed or also called special warranty deed - The time of ownership the current seller has had the property they are warranting but nothing else.

Quit Claim - Whatever interest they have in the property they are giving to you. These have a time and place but not typically for a purchase and sale. They are not warranting anything.

You should at least get a special warranty deed and have owners title insurance and check specific exclusions to the policy.

The deal sounds tight from what you have posted. If the repairs are more than expected and resale price is lower your margins go out the window. You have to be careful with wholesaler types as they typically over estimate ARV value and underestimate repairs to make the deal look better than it is.

No legal advice given.

One of the most important members of your team you assemble for flipping is your closing attorney. Find one that does a lot of real estate deals, closings, etc. I have done a bunch of business with mine and they know I'm a repeat customer. They offer me cash closings for $450, which includes everything (title paperwork, contract review, etc). They are also investors themselves and have really helped me out with introducing me to other players that have helped me out. They have also called me and said, walk away from this deal and that was wise advice. Good luck!

Hey jordan I agree that seems sketchy. I'd also like to touch on your numbers.
If your going to be using hard money, I would definitely get a more solid number for the ARV. Always think of the worst case scenario to keep you safe
Ie: ARV-120k
Rehab-45k Your profit- 25% of the ARV is what most flippers look for so your profit 30k
Purchase price-60k
60k+30k+45k=your already at 135k right here 15k over your low ARV, this isn't counting your percentage rates you'll have to pay back to your hard money lender if your not using your own capital. If you borrow the 105k you'll need to purchase and rehab lets just say you'll have to give back 18% that's almost 20k so that puts you at 155k
If you borrow your amount needed to borrow would be If the ARV is 150k I'd be more comfortable with that deal since these are just rough numbers. Also does that 60k include the wholesalers fee?