OfflineI'm building my buyers list and was thrown off by what a buyer said to me yesterday.
He said
"Now, when you get these properties under contract, you will be buying and putting your name under title insurance before assigning it to me right?"
What did he mean by that?
I ended up swaying around it but still was confused.
Thanks.
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Adam Macias
Because you name should not go on the deed if you are wholesaling, there is no reason your name should be on a Title Insurance Policy. You should make sure and then assure your buyer that the original seller will provide Title Insurance. If they are nervous, tell them that they are welcome to have a title search completed on the property. The cost is around $100.
You don't need to do the title search. Do you have a title company you work with? if you have a relationship with them you can get a shorter report that shows liens, parcel information and a legal description. We get that here for free. But I do a lot of deals with them.
"Don't tell me I can't, Tell me how I can."
It definitely left me confused. Hopefully he's a serious buyer when it comes to actually showing him a property I end up getting.
This did help a lot for I never had any buyer ask me that kinda question.
Adam Macias
I do have two title companies that were referred to me by another buyer. Luckily they are familiar with wholesaling and do it quite regularly.
So the whole purpose of the title search is just to make sure there aren't any liens or back taxes and that the owner is THE owner correct?
Adam Macias
Adam to put it simple it will tell you if there are any problems and if so they will let you know, keep your eye on the prize, no one can stop you but you, Jim
jbischoff
Hi Adam
What this buyer and any other buyer might want to do to is purchase an "owners title insurance policy", this policy is paid for at closing and protects a buyer in the event a problem comes up in the future regarding the title. Rather than spend many thousands of dollars on legal/attorney fees down the road, it is a small one time payment for peace of mind.
Dana
you can tell your buyer that the transaction will be closing with a title company (or attorney, depending on the state you're in); which will offer title insurance to the buyer. At no time will your name will not be on the title of the property, you are only assigning your interest in the property...
Valerie
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It definitely can be distracting letting all the "in the process" stuff keep distracting my offer making process. I will keep my eye on the prize!
Adam Macias
Ok that makes sense on the buyers part. So if they were to purchase an owners title insurance policy I won't be at effect in case something does go wrong after its assigned?
Adam Macias
He could be a completely new buyer and nervous himself for all I know too!
But it's good to better understand what's going on. I'm so close to my first deal but don't want the fear of the unknown to kill my moving forward!
Adam Macias
All of these comments are very helpful and leading you down the right track Adam. Don't let that fear of the unknown stop or derail you. it is great to know all the answers but, you have access to many people with a lot of experience that can help you get over the bumpy parts because we have all been there.
One things that helped me when I first got started, was to sit down with a title company and have them explain in detail what they do and why.
Knowing the process allows you to confidently explain this to nervous buyers and sellers, establishing yourself as a informed professional that they want to deal with.
Keep moving forward.