6/29/09
So, I got a call over the weekend from a wholesaler in Tampa who is just getting started wholesaling REOs. He saw one of the ten million signs I have plastered all over the place, and called me to see if I could help him out. Basically, he just went out and started making offers on REOs without really knowing what he's doing- kind of a "ready, fire, aim" approach. Well, he ended up getting a property under contract at a REALLY GREAT price, and after finding out that he couldn't assign the contract, he was ready to just back out of the deal because he didn't have the funds to close on it himself. So, he was calling me to tell me about the deal, and to see if he could just get a bird dog fee from me if I ended up contracting it and selling it.
My first question to him was- "Why don't you just do a simultaneous closing?" And his answer was- "There are no title companies in Tampa who will do them. I was told they are illegal."
He told me he called every title company he could find, and that not a single one of them would do a simultaneous closing.
As you guys know, I do all of my closings using a simultaneous close, and I know of four title companies in Tampa who will do them. Actually, make that five. I just thought of another one.
I know I've written about this before, but I just wanted to once again emphasize that the best way to find an investor friendly title company in your area is to ask the active wholesalers who they are using. If you whip out the Yellow Pages and start going down the list (that's what he did), you are most likely setting yourself up for a healthy dose of rejection!
Now, I know you are probably thinking to yourself, "That makes sense, Steph, but how in the hell do I find wholesalers in my area? I'm a newbie and I don't have any connections yet!"
My first suggestion would be to head on over to RealEstateInvestor.com, sign up for an account (it's free), and start NETWORKING! You can even do a search for wholesalers in your city. I just did a search for wholesalers in Tampa, and this is what I came up with. Do you think that one of those 37 people might be able to help you out if you sent them a message asking for a title company referral? It doesn't get much easier than that!
If you don't find what you are looking for on REI.com, you can also search Facebook for real estate groups in your area. I just did a search for "Tampa Real Estate" on Facebook, and got 500 different results...
You get the picture, I think...
OK, gotta run. Literally. :)
Happy Monday, Blogosphere!
P.S.
You can also search those sites for BUYERS!
Monday, June 29, 2009
Investor Friendly Title Companies
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23 comments:
Hi Steph,
How are you finding buyers on those sites?
I've not joined any of the social networking sites, but it seems like they are the way of the future.
Ray
Hola Ray,
On Real Estate Investor.com, you can search for buy and hold investors in your city.
On Facebook, you can join any of the investment groups and just start networking with people. It's really a great place to build business relationships.
I've met several people from both of those sites that I am currently working on deals with.
Steph
Off topic here, but I was wondering if you could give me a link to the company you get your signs from.
I searched through the site but can't find it.
Thanks
Laird Plastics...
http://www.lairdplastics.com/content/section/4/39/
May have to cut and paste.
Great tip Steph, I had no idea about that site. I'm signing up right now.
A&R
Add me as a contact! :)
Any bites on your house?
Thank you for the great post Steph. I will let you know how I come out finding a wholesale investor friendly title company in Broward county via the online real estate networks.
Thanks for the realestateinvestor link, I didn't know about that one.
Brian
No problemo. See you over there. :)
I just added you!
Hey, for a stupid reason I'm too ashamed to even explain, I didn't lay out the signs last week. I'm planning on putting them out this Thursday to take advantage of the long weekend.
I did get two callers from my Craigslist ad, one who called back and then wasn't interested anymore, the other claiming he had private money backing him, and then called back saying that his money source had dropped out.
I'm sort of in freak-out mode, but I have to come to my senses and understand that I could have done more last week. No time to cry, gotta keep moving!
Hi Alex,
No need to freak out. Just make sure you get those signs out and do everything you can to get it sold.
Did you put an inspection period in your offer?
Steph
P.S.
How did you put that Craigslist link in your comment? I can't figure out how to do that.
Yes, I have 10 days inspection, beginning last Friday. Why do you ask?
The link is created thru HTML code. I actually wrote you a long-drawn explanation, but blogger won't let me post it because it had weird code, so I had to delete it. Check out this explanation instead.
Thanks for the link Alex.
About the insp period- I was just curious what you put in your offer..
Well, to be honest, Lee recommends that we leave the inspection contingency blank so that 1) the bank finds the offer more appealing, and 2) the bank comes back with the inspection provided in their addenda anyway. :P
In the current deal I have, they came back with ten days, but in a few other deals I'm working on, they offered only three.
I forgot to mention one thing, that I'd like your thoughts on (if you want, of course! :) ).
The first buyer that I mentioned that dropped out, told me she has about $100k+ in cash to buy a home in the St Pete area. However, they are looking for something to live in temporarily, and then hold as a rental property. However, because they're looking for something to live in, they'll probably be pretty picky about which house to choose.
They sound very interested, but I'm not even sure it's worth going out and getting something under contract for them, so that they just end up telling me they don't like the roof shingle colors, or something like that.
What would you do for someone like this?
Hi Alex,
Just be careful w the inspection thing- sometimes they will send the addenda back with the inspection period crossed out, so you get zero days to inspect. I've had that happen a few times.
Regarding your buyers looking for something to live in.... I avoid those kind of buyers like the plague. Every time I have tried to make a situation like that work, it ends up being just like you said- they are picky, picky, picky. Especially if there's a woman involved. (Sorry ladies, but it's true).
If you can make it work, though, you can probably make a bigger spread, as people like that tend to pay quite a bit more than investors will. One of the guys in my mastermind group does VERY well wholesaling to owner occupants, so keep that in mind..
For me- I just don't have the patience to deal with John and Suzy homeowner.
So, I guess my answer is- it's up to you.
Steph
Haha, it's so funny you say that, the contact person is the wife. I'm glad you said it first! ;)
Oh well, it may be that this is not an ideal situation for me to get in until I gain much more experience.
The other person that contacted me said he's looking for a hard money source that would cover around 80% of purchase price, or grant him a rehab loan based on ARV. However, he is looking to occupy the house while he rehabs.
I imagine you avoid this kind of "buyers" as well, but I just wondered if there may be a finance source out there (i.e: in town) that you know of, that may make this work. Maybe someone that would be open to referrals so that we can close more deals.
P.S.: Thanks for the advice on the inspection... and everything else!!!
I haven't done a hard money deal in a long time (last summer).
Check your Facebook messages- I'll give you a # of a guy wh might be able to help you out.
Steph, you have probably already said this but if you don't mind repeating - What inspection periods do you put in your contracts?
Do you send a photocopy of a certified check with your offer?
Thanks.
Brian
Hi Brian,
I I don't usually use any contingencies when making my offers.
Most of the time, they don't need to see a copy of the certified check until the offer is accepted. Once it's accepted and they send you their addendum, they will want to see a copy of it when you send back the ratified contract.
Steph
Just found your blog! Great stuff -- You rock!!!
Thanks John- right back at ya! :)
I have a question on the title company part. Are you using another title company than the bank's?
I am trying to understand how that works, you tell the bank's title company to send you the documents and you sign and wire the buyer's money from your title company, is that right?
I want to understand to be able to explain/ask the title company.
Thanks
Yes, that's correct.
Here's a post I wrote about it that goes into detail...
http://flipthiswholesaler.blogspot.com/2009/06/how-do-you-close-reo-wholesale-deals.html
If you scroll down to the middle of the post, it tells exactly how I handle the closing.
HTH,
Steph
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