So far I have used 2 different title companies (both referred to me by other investors) to close on a total of 2 deals each and neither company seems to be able and/or willing to complete the closing in less than about 3 months. I am a vacant land investor and these transactions are simple cash sales so I believe that 30 days or less is very doable if there are no title issues. I am getting frustrated because part of my business model is being able to close on these properties quickly and I have sellers and buyers getting antsy and asking me what is taking so long. I don't even have an answer for them because I don't even know what is taking so long. I am fairly new to this and it is crucial that I close on these properties in a timely manner and don't lose deals because of the time delay.
I don't know what to do but this is unacceptable and needs to change. Should I just keep trying different title companies? I thought about maybe trying to find new title companies that are eager for business and willing to hustle. Do any fellow investors have any advice for me?
Email the escrow officer directly, ask him/her what is holding to close the transactions?
They will give you the details.
I like to communicate with the escrow officer directly myself to find out the status of the transaction all the time, instead of having the realtor email the escrow officer.
I have tried that several times. It often seems to be "still waiting for title search to come back". My deals are in different counties around the state so the title company orders a search from a company local to that county. I've received other exudes as well. Usually something along the lines of waiting for this or that or title agents brother is in the hospital. Since I've done 4 deals with these companies and all of them have taken 3 months or more it makes me think this is just going to be a regular thing with these companies and they don't want to give my little land deals the time of day.
Ask them, "estimate how long would it take to have the title search come back? One week, one month? Or one year?
See how they answer this question...
Account Closed the issue is in those states there are NO ESCROW officers... there is only closing attorneys.. And then they have staff which we on the west coast would call an Escrow assistant.. They don't have title plants like we do.. they literally have to hire title abstractors to physically go to the court house and pull title the same way it was done in the 1800's.
Us west coast folks are always fluxomed with this since we are spoiled.. a simple all cash land sale transaction could be opened on a MOnday and easily close on a Friday..
Now it could be that the OP is buying properties that have probate issues or some other title defects that are taking time but those should be conveyed to you very early in the process.
My assumption is if these are small dollar deals.. ( and of course I have no way of knowing) they are just getting pushed to the bottom of the stack.
I find closing in attorney driven states to be most frustrating at times.. disjointed and absolute nightmares sometimes.
ONe thing that I found to speed things up once I figured out they had to pay a sub contractor ( title examiner abstractor) was to offer to pay them up front to run title .. that got things moving.
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