Question for Title Company & PSA agreements

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Question for Title Company & PSA agreements

Ben S
Real Estate Investor · Jacksonville, FL · Member since 2010 · 43 posts · 3 votes

Hi guys – few questions regarding the start of wholesaling as I do not believe I have run into answers to these specific requests when starting out, so your insight is much appreciated in reinforcing my knowledge!

When searching for assignable contracts, I assume we would we use our state’s PSA (Purchase & Sale Agreement) form right? I notice on their forms it has the option of assignability, type of financing, etc., so it seems to be we would be using these forms for our seller & also to assign. The one I have is for the state of Florida, and is 4 pages long. Please correct me if I’m wrong.

2nd question – When we have the contract locked in place with the motivated seller, and start finding buyers to assign our contracts, how do we establish the title company or who to send these contracts to? Would we literally just call any title company and send them this PSA alone?

I just seem to get stuck on the 2nd question with whether or not I have to contact a title company or how to get the right people involved to set up the closing.

Your thoughts are much appreciated, thanks in advance.

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  • Brandon Gadish
    Real Estate Investor · Pasco, WA · Member since 2010 · 48 posts · 3 votes
    15y

    On your second question; If you are assigning a contract, let the asignee work out the details of where they want to close the deal. Unless you plan on getting paid your fee out of escrow, there is no need to even find a title and escrow company. You can do it with a one page assignment in most cases. For example you complete the assignment form, collect the cash and turn it over to the buyers. They will find a title company to colse the deal.

    If however you are establishing an escrow account in order to facilitate the transaction, I personally like to use the same one over and over. Once you establish a relationship with a title and escrow company there are some nice things that you can get from them. For example if you just need a preliminary title report for a property you are looking at, generally a title company will charge you a fee for it if you are a one time customer. On the other hand if you have used them before and continue to bring them business, they will likely run those for you for free.

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  • Ben S
    OP
    Real Estate Investor · Jacksonville, FL · Member since 2010 · 43 posts · 3 votes
    15y

    Thanks for your input Brandon - It appears having the assignee handle closing makes sense, which in turn seems to put a little less hassle on my end so I can locate more deals.

    To all of the experienced wholesalers - do you have any recommendations for simple forms or specifically legal forms for the State of Florida for that matter? I'm curious to see how you have your language set in your contracts - Thanks again!

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  • Brandon Gadish
    Real Estate Investor · Pasco, WA · Member since 2010 · 48 posts · 3 votes
    15y

    You are welcome Ben. On the forms issue, I would recommend just having a Real Estate Attorney draft an assignment form for you for the state you are in. Generally if you are dealing with an attorney that is proficient in real estate, they will probably have one already drafted, and will likely only charge Less than $200. Plus for that fee you will probably get an hour or so of advice on any other questions you have specific to your state.

    I have used more generic forms before, but once I got the ones specific to the type of investing I was doing, I felt a lot better about it.

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  • Jerry PuckettPro Member
    Wholesaler · Fort Worth, TX · Member since 2010 · 1k+ posts · 1k+ votes
    15y

    Hi Ben,

    My preference is to use my own title company. That relationship will prove it's worth over and over again once you forge it. This may sound trite, but I don't believe it can be stated often enough: this is a people business. It's all about the relationships.

    As to Florida specific, I recommend hitting up a colleague of mine, Jimmy C. out of Clearwater. Dude knows his stuff and is on top of the game.

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