Title Insurance on a Wholesale Deal

4 Replies

Just curious what other wholesalers out there do in regards to title insurance on the deals they flip? I have paid for title insurance on every deal however I am starting to reconsider since I do all my deals in an LLC and in the unlikely event there is an issue the LLC would have the issue and not me personally... Any input is appreciated...

If you are the wholesaler selling to an end buyer for an assignment then why do you need a title insurance?

Are you not doing a double closing or assignment on these properties? Cause you should be. Which means you never actually owned the property meaning you should never be paying for a title insurance. 

I have to double close on the ones I am mentioning. Obviously I will assign when I can but sometimes we have to double close with the hedge fund end-buyers...

I'm not a wholesaler (but an investor), but my title insurance company doesn't like insuring anything from wholesalers.  I don't know a way around this.  New York State has a law about discouraging equity grabs from homeowners, so they stay away.  Anybody have thoughts on this?  I don't want to NOT USE wholesalers. 

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