Investor 路 Miami, FL 路 Member since 2012 路 136 posts 路 5 votes
When wholesaling an REO for example, when you find an end buyer that wants the property, I have been told not to sign anything until you "feel the money". In other words, dont sign until I have a deposit in escrow. Is this typically how it works? I would think most buyers would feel awkward signing a contract and handing over a deposit without the sellers signature. Our standard Florida state contract gives the buyer 3 days to make the deposit, or the contract is void. Obviously this is all negotiable, but what seems to be the standard?
Investor 路 Miami, FL 路 Member since 2012 路 136 posts 路 5 votes
10y
Thank you so much Sabrina this is excellent. Kinda what I was gearing towards myself. Does your title company offer a reissue rate on the title insurance?
Houston, TX 路 Member since 2015 路 111 posts 路 155 votes
10y
@Mike Nelson you are very much welcome Mike. As for the reissue rate, I have not personally asked them because most of my deals are wholesale deals, and of those many are distressed sellers, and I think to qualify for reissue rate the sellers must have own the property for X amount of years 10+ and have had a recent title policy issue on the property within a certain amount of recent years within 10
I deal with a lot of heirship properties so a lot of my deals don't qualify.
Investor 路 Miami, FL 路 Member since 2012 路 136 posts 路 5 votes
10y
Hi Sabrina,
Yeah I guess I was assuming a double close for your wholesale deals. That is what I would most likely be doing . Therefore, have heard of reissue rates for the title insurance at a discount as to no pay a full premium twice in one day. Do you use "net to seller" terms in your contracts with end buyers? I want to keep mine simple. For example, I get a HUD home under contract, and have found a buyer. I will be paying all the closing costs for transaction A ( HUD to me) and then close with end Buyer B (me to end buyer/investor) and use a net to seller clause in the contract terms to basically collect my finders fee. Does anyone use "net to seller" contracts?
Houston, TX 路 Member since 2015 路 111 posts 路 155 votes
10y
@Mike Nelson I dont do double closings, because if anything goes wrong in between time with title or other matters, It puts me in the Hot seat because I was the official seller of the property to end buyer (investor) I like to assign because that keeps me out the hot seat if anything goes sour down the road, sometimes the family members lie about listing all the heirs and then it can come back later and explode. The title company will go looking for the SELLER - in my case it would have been the homeowner because I did an assignment . If I had a double close that seller would have been ME-
Then in turn I would have to recoup my loses some how from the homeowner/original seller.
Im not certain about the contract type you are talking about, so I cant answer that, I use TREC forms from the Real estate commission. and place my terms in the special provisions paragraph. :)
@Sabrina Kane Thanks a bunch for all the information. I am in Houston and looking to get into wholesaling. The information you shared is priceless and greatly appreciated.
Investor 路 Fort Worth, TX 路 Member since 2015 路 81 posts 路 11 votes
10y
@Mike Nelson We write in special provisions that the buyer has 24 hours from the execution of the contract to wire or deposit a cashier's check at title for our double closes. For an assignment we require a cashier's check before we do any paperwork.