COMMON TITLE ISSUES
-The title company facilitates the entire transaction. They need to know everything that is going on. Be transparent with the title company.
THE 4 Ds OF TITLE
COACHING THE SELLER THROUGH THE CURATIVE PROCESS OF TITLE
-Let your seller know that they may have to jump through some hoops during the curative process with the title. Set the expectation up front.
THE BANK WILL REQUIRE A CONTRACT
-Some sellers are slow to signing the contract. The bank will likely need at least 24 hours to stop the foreclosure, but the more time the better.
WHEN WORKING WITH A SELF-DIRECTED IRA
-Again, the title company will need the IRA information, because both parties have documents they need to complete the transaction. The self-directed IRA must actually sign off on the transaction as well. So, let them know as soon as possible.
BE AWARE OF THE ROLES
-As the client, find the deals, get the information, get it to Quest (Or your own 3rd party IRA). Be aware of the processes, know how you set up the account. They come to Quest classes and don’t even have a deal yet. Take time to learn the process. Who/what is the title company? Who/What is the self-directed IRA? What are their respective roles in the process?
IF IT IS YOUR FIRST TIME AS AN INVESTOR, LET THE TITLE COMPANY AND IRA KNOW
-They are more than willing to help you. Go out and talk to people who have done it. Find a good title company, a good insurance company, self-directed IRA company
WHAT IS ESCROW?
1.An escrow agent is known as your title agent or closer.
2.It can also mean where money can be held if you are doing a leaseback.
3.If you have a loan where you are paying into impounds, such as taxes and insurance.
WHY SHOULD YOU CLOSE WITH A TITLE COMPANY?
-The title policy issued is the documents that states that you own the property
TITLE INSURANCE IS INSURANING THE PAST
-Whereas most insurance protects against future issues, the title policy covers the past. The title company handles any claims that comes back claiming ownership against your property. The title company underwriter represents you in court.
WHAT IS THE COST OF TITLE POLICY?
-It is regulated per state. In Texas, it is $875 for a $100,000 property. You can add other protections for minimal costs.
WHAT MARKET CHANGES HAVE TITLE COMPANIES SEEN?
-You can feel the market going stagnant, but there are so many protections. This is likely a good time for investors, especially ones with creative financing options.
OPPORTUNITIES EXIST RIGHT NOW
-Know the rules and regulations, but use creative financing to find the
YOU HAVE OTHER OPTIONS FOR YOUR IRA RATHER THAN JUST PASSIVE INVESTMENT
-Quest offers self-directed IRAs. Quest offers free education regarding self-directed IRAS
YOU CAN ALSO USE OTHER’S SELF DIRECTED IRAS TO FINANCE YOUR DEALSIF SOMEONE IS GETTING A NON-TRADITIONAL LOAN TO PURCHASE A PROPERTY
-Just let the title company know, so that they can reach out to the private money lender to determine what documents the title company will need to provide to make the process smoother.
QUESTIONS TITLE COMPANIES WILL ASK PRIVATE MONEY LENDER?
-Do you need a title policy?
-Do want a title commitment?
-What documents do you need for review?
-Are you having any documents signed?
-What do you require from the title company?
-What do you require from the buyer?
-How can I get your money in?
ADVICE FOR NEW INVESTORS
-Just do it. Take Action. Don’t wait. Ask Questions. Focus, and stick with one thing. Be sure it is something you enjoy and are interested in.
HAVE THE ABUNDANCE MENTALITY – HOW CAN I ADD VALUE?
1.What are the 4 “Ds” of Title?
2.What is Escrow?
3.In Texas, how much is a basic title policy on a $100,000 property?
4.What are 3 questions that Title Companies ask private money lenders?
5.What advice do Haley and Brittany offer to new investors?
You will never be left on your own. Our live chat is watched like Fort Knox, and that's why our median response time is under 3 minutes. Have a question? Send us a message in the chat bubble in the bottom right corner!