So I'm trying to find an "investor friendly" title company. So I started calling title companies and the first one said that it's "frowned upon to make any money at all off of a housing transaction unless you are licensed. You can't even list something for rent if you are making so much as a candy bar from the transaction." lol Those were her words exactly. Is it true you have to be licensed in CA in order to do wholesaling?! Is anyone doing deals in California that isn't a licensed realtor? If someone is do they have any title companies that are investor/wholesale friendly that they could refer me to?
@Michaela Zanello you do not have to be licensed, just find another title company.
Find a recommendation from active investors in your area.
NOT LEGAL ADVICE:
Before you start calling around title companies, get clear on the process you will be utilizing, and the correct verbage you need to know. A reassignment fee is still viewed as compensation by MOST title companies. Would you feel comfortable explaining to a judge the difference? Me either...
I do nothing in California and I do not wholesale properties in the "traditional" bigger-pocket verbage but here is what a quick google search produced for California and the reason MOST title companies will not allow you to be on the HUD without having a broker's license (agent's get paid through brokers).
10131. A real estate broker within the meaning of this part is a person who, for a compensation or in expectation of a compensation, regardless of the form or time of payment, does or negotiates to do one or more of the following acts for another or others: (a) Sells or offers to sell, buys or offers to buy, solicits prospective sellers or puchasers of, solicits or obtains listings of, or negotiates the purchase, sale or exchange of real property or a business opportunity. (b) Leases or rents or offers to lease or rent, or places for rent, or solicits listings of places for rent, or solicits for prospective tenants, or negotiates the sale, purchase or exchanges of leases on real property, or on a business opportunity, or collects rents from real property, or improvements thereon, or from business opportunities. (c) Assists or offers to assist in filing an application for the purchase or lease of, or in locating or entering upon, lands owned by the state or federal government. (d) Solicits borrowers or lenders for or negotiates loans or collects payments or performs services for borrowers or lenders or note owners in connection with loans secured directly or collaterally by liens on real property or on a business opportunity. (e) Sells or offers to sell, buys or offers to buy, or exchanges or offers to exchange a real property sales contract, or a promissory note secured directly or collaterally by a lien on real property or on a business opportunity, and performs services for the holders thereof.
You asked the wrong person the wrong question.
In California, the escrow company matters more than the title company. What you are doing is assigning your contract and collecting an Assignment Fee or Marketing Fee.
So if you asked this question:
"If I have a contract between "Seller" and "Buyer and/or Assignee," after escrow is opened can the escrow company include a third party fee charged to the Buyer and/or Assignee through the escrow."
Any escrow company will do it. Most experienced wholesalers also get paid outside of escrow.
Seller agrees to accept 100,000. You draw up a contract between Seller and "you and/or asignee." You open up escrow. Once you find a buyer, you sell your position in the contract.
So say they agree to pay 110,000 for the house. Seller's HUD looks the same, they get 100,000 less any fees. Buyers HUD is 100,000 to the Seller, 10,000 to you and all the fees. So they have to bring 110,000 + fees to escrow.
I show you how to find one, go on zillow and search for title companies or title raps in the area you are interested, contact the person directly and tell them what you need. Most of them if they feel like they get a title order from you they will allow you to get doc.s from their customer service....try it.
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