I am a wholesaler and am starting my first direct mail campaign within the next couple of days. Eager to get this going, the time is now. Anyways I have some questions that I've tried looking up but couldn't specifically find answers to. I am on Long Island, where they require real estate attorney's for both sides of any real estate transaction. So I just want to be able to wrap my head completely around how title companies/attorneys will work.
1. Do I need my own title company/attorney in order to wholesale at all, and receive my assignment fee? Or is it possible to deal solely with my buyers for the assignment fee and what they do with their title company/attorney? Contingencies that I will have include "subject to passing free and clear title search" and "subject to buyer's inspection and approval". Could this mean once I have a property under contract I could send my buyers my assignment contract, and once they send me a signed contract send them over the signed P&S agreement have them open escrow and do the title search with their people? Or is opening escrow my responsibility once I have a signed P&S agreement.
2. The reason I ask the above is because I know there is a big time investor in my area who is very experienced. Would opening escrow with my title company/attorney require this experienced investor and the seller to close at this title company? Or could they use their title company for the closing, and work together with the title company/attorney that I opened escrow with.
3. How many days would be safe enough after signing to find a buyer? How do I word the amount of time needed to find a buyer and allow them to approve if necessary in my contract? If I can't find a buyer how would I word that the contract is subject to closing in XX days, or else contract expires. Would that require me losing whatever emd I included?
Probably a couple of duh questions here, but I'd rather have the knowledge then be too afraid to ask. I am by no means against using my own attorney/title company at all, these are simply questions to help me understand the processes better. I know having an attorney look over my contracts can only help me.
Thank you all for the help. It is always appreciated.
Use your own title, they can act as advisors and answer questions on procedure. Get a buyer asap. Turn in p&s and EMD to title, that will open escrow. P&s will state when contract expires, an addendum will be needed to extend it.
Thanks for the response. If I open escrow would my buyer need to use my title company for closing?
Any other insight?
Yes, it all goes through same title company. Your title agent can be a great resource as well, they can help sort out all the little details.
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