OfflineWhat is a title company and what is it used for when wholesaling while using a real estate agent?
Should I have a title company pick out before I start making offers?
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Dumb Question...
Posted on: Sun, 08/25/2013 - 00:14
YES YOU NEED ONE ! It's where all the money and paperwork comes together. the title co disperses all funds and checks the courthouse to make sure there are no liens on the property. Basically that's it in a nutshell. you wouldn't want to just hand someone a check they could run off with it. everything has to be done legal and proper. they are a required part of your team. NOW UNDERSTAND in some states it's called a judicial closing meaning the attorney handles it and there is no title company. and in some states it's non judicial and the title company handles it. fill out your bio so we know what state you are in and we can tell you if you live in a judicial or non judicial state. I live in Mississippi and my state is both judicial and non judicial meaning either can handle it. in my little town attorneys handle it. but in some bigger cities in mississippi there are title companies. they are a wealth of info for you in so many ways. You are there client so they bend over backwards to help you and give you info if they can. if you belong to a reia you can get recommendations from them.
http://en.wikipedia.org/wiki/Title_insurance
happy investing,
WALT
What's dumb is not inquiring about something that you aren't sure of. Good question....I'm not too knowledgeable of it either.
~Blessed beyond measure and enjoying life to its fullest!~
on this site... we all are here to learn, and to share knowledge... Title companies provide buyers with title insurance for the property they're buying up to the amount that they are paying (for the property). This is a must in case someone shows up after closing and claims that he/she owns the property; and as Walt said, the title company acts as a neutral third party in the exchange of the property (from seller) and the money (from buyer).
Below is a link that explains in more detail...
http://www.zillow.com/mortgage-rates/buying-a-home/title-company/
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
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Should I join a mls web site. To look for deals. I've been through realtors. That are not investor friendly. Still looking for the right realtor.
keep looking for the right agent... you want your agent to filter the criteria that you need; that way you don't waste time looking at lists of properties that would not be worth submitting offers for...
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
So now you understand that a title company will both (a) provide title insurance and (b) can handle the paperwork of the closing.
For wholesalers, choosing the right title company can either make or break your deal. Many wholesale deals are done through a double close. This means that you close with the seller and then you immediately close with your end buyer and then use their funds to pay for the first transaction. Some title companies refuse to handle double closes. You need to find one that is experienced in handling these and are willing to continue - before you even write the first deal.