Wholesaling Real Estate – Finding a Title Company
In the past few months I’ve seen people consistently ask, “What title company should I use?”. Then when they get the answer, they act like it’s the wrong answer! Listen up folks, if you are wholesaling a property, the title company is problem number 140 on the list of to-dos. Seriously! However, no need to worry as we will answer this age old question below.
First of all, we all have been there! And yes, the closing is one of the most nerve wracking experiences, at first. But you will soon realize that most of the guru’s are NOT from Chicago or the immediate area and talk in GENERALITIES! What works in other states does not mean it will work here, they are assuming it will.
If you do not have a deal under contract, let me repeat that, IF YOU DO NOT HAVE A DEAL I wouldn’t worry about what title company you should use.
Answer: Use Buyers or Sellers Title Company
After all the money you have spent on courses and seminars, you might think this is wrong, but it isn’t. As a new wholesaler, you have not built any real relationships. In real estate the best way to build relationships with buyers and agents is to close, period. Building 
rapport is good and it helps you open doors and opportunity, but if you can’t close or seller backs out, you may lose some of that.
Chances are, the buyer or the sellers attorney will have a preferred Title company and they will pick where to close. The ONLY thing you have to do as a wholesaler is make sure that both attorneys are on the same page, and have the proper documentation necessary to close.
Note: Some attorneys are assholes jerks. They wont want to talk to you unless you have written approval from seller to speak on their behalf and ask questions regarding the deal. if that is the case, just get a written consent form – which you can type yourself.
IF you find an attorney who thinks wholesaling is illegal, just explain to them this: “I am not acting as a agent, I am under contract to purchase, but I am selling that right to X for a sum, paid at closing. This is legal! I would buy but I am too busy with other projects.”
But, Why Do Guru’s Advise Getting A Title Company?
There will come a time when having a title company on your side will be part of the plan. However, that is for advanced wholesalers who are flipping deals in volume. A Title company that trusts you will be able to hold your deposit and verify it with seller attorney and pull title for you. This speeds things up greatly, but not needed at first. Unless you have built trust and can show a history of closings, a Title company will be very hesitant.
In any event, below is a check list of what you should have for your closings.
Make sure buyers attorney has:
- Copy of Purchase and Sale Agreement
- Copy or Assignment Agreement
- Copy of Buyers Deposit Check to You
If you give the attorney this information, all he needs to do is give the title company the closing directions. The seller attorney just wants to make sure his seller get the amount that has been agreed upon. Simple as that.
Make sure YOU have the following:
- Contact information for both attorneys -Follow up and keep communication open
- Title company contact information – Call and make sure the instructions are in, resolve any outstanding issues.
- All required documents as requested by Attorneys
Post Summary: Do not worry about having a Title company or agent in the beginning as this is typically handled by the attorneys. All you have to do is make sure that the directions are clear and that you are clear to close. Once you are at a point were you are doing deals in volume and can prove you’re the real deal, should you look for a Title company to work with. However, you do not need a Title company right away, just deals!
