Meeting w my 1st Title Company. What Should i Ask?

Question

Just set up my first meeting w my first title company.  What are some good questions to talk about with these guys/ladies?  Keeping in mind I want to start by wholesaling most of my deals.

Bill Gulley · Answer

Actually, you might not ask that initially!

http://www.biggerpockets.com/forums/311/topics/120288

That thread gives a basic overview of your settlement.

While a closer may know what "wholesaling" is, they may not use the term. If that is your first question and they say no, you're either going to hang up or try to explain. When you try to explain, you may not do so in an impressive manner. When you can't be impressive explaining what you do to another professional you get egg on your face and they have doubts about you. If they have doubts about you, they reject your tactics. Don't be rejected, sign up for cable TV and get educated on settlements. :)

If you open the conversation with guru investor lingo, they may not get excited.

Thinking about it, that might be why so many ask for "investor friendly" title companies, simply because investors aren't speaking in the conforming language of title folks. You could be scaring them off!

I suggest you tell them you have a double closing situation with an option or a contract you are assigning to a buyer. They will understand that.

If they use the term wholesaler then you can go there and ask if they work with others, but really, asking who they work with is getting close to ethical  issues, you certainly don't ask who. Would you ask your attorney who his or her clients are? No, not a good question!

Asking if they have done similar transactions might be better, but again, while investors see these as complicated, they are not and IMO even asking is like asking Patton Manning if he can throw a football.

Now, if they say the don't do double closings or aren't familiar with them, then you can describe what is mentioned in that thread.

Questions to ask? The type of question you ask reflects on you as well as to your knowledge of settlements. Changes are you'll ask a dumb question.

I'd say assume they are insured and bonded or they wouldn't be there. Assume they are regulated by your state insurance department and that they are in compliance. Assume if they have been there over a year they have done hundreds (if not thousands) of closings and they are aware of the different types of closings as well as settlement procedures.

My first quest is "What's you name" after a greeting!

I then say, "I have a closing I'd like to schedule", they will probably ask if you ordered title work and answer yes or no and if no, confirm you need title work.

Then they will be taking information. Give them the ESTIMATED date of settlement.

Have the full names as appearing on title of all sellers and the property address, if the legal is short give it to them.

Give them you name and buyers information AND then say,

"I have another buyer to close with the seller after the assignment of the contract or assignment of the option"

This will open the door to what is going on. So far, you approached this in a business like manner, calling in a settlement just as lender would have for the 487th time this year. So far, there is no hint that you're an investor doing some guru thing that might scare them off initially.

If they have an issue, they will say so, then overcome the objection, it is legal and the funds of the end buyer are not being used for my purchase, I'm simply assigning the contract. Chances are, this won't be an issue.

Tell them you will get the original contract and all addendums to them whenever. Ask for an appointment and to hold off on title work until you give them approval to proceed at your appointment.

Then, take notes and answer any questions. If you have earnest money deposits tell them you will deposit good funds with them when you come, or, that you will hold funds according to your contract. That you will "open escrow" when you have your appointment.

That call should go smoothly.

When you get there present your documents and answer any questions.

Ask to see the facility and settlement office. Then refer to the other link as to the suggestion.

This will get you further than any "investor practice" that investors might do. This is a new office, you don't chit chat about what you do so much as demonstrate you already know what you're doing, if you don't, act like it and don't talk wild investor guru stuff off the bat!

Be personable but business like. Your deal is actually common so don't clog it up with convoluted strategies or tell them how to do their job. You can ask if they can take the seller first or the buyer first.

Ask if they would like a letter of closing instructions, they may, if they do, again back to that other link and put it in a simple letter. Some have closing instructions in a form letter or package, use that and fill it in and you can ask them for assistance as it is their form. You could take it with you, and get on BP to get quick answers as well.

Keep in mind, 1. they want your business if you're not a PITA. 2. They know more about what they do than you do, so follow their requirements. 3. Ask if they can do something, if not, ask how do we do it? 4. They will help you in most cases so long as they see you are honest and legal, don't beat around the bush, they don't care how much you make!

So, as to questions, you might ask the closer where they eat lunch and then offer to buy!

If you want to know about a closing company, ask other investors, ask Realtors, ask the clerk at the Recorder's Office, ask the State Insurance` Department, ask the Secretary of State, ask your attorney.

Getting them to work for you is all about your attitude, your approach to legal and in compliance. I'd say asking silly questions would set off red flags most likely. Head in there like a professional. Good luck :)

Peter V. · Answer

Bill Gulley  super thorough thanks so much that helps a lot!

Peter V. · Answer

Thanks @Sam T.

Sam T. · Answer

you need to make sure they deal with assignment of contract (wholesale) deals. You want to know if they work with any other wholesalers this is important! Ask them if they do them and how often?