Wholesale title company

10 Replies

What title company (that knows what Wholesaling is and knows what they are doing) are you Wholesalers using in Southern California in the Orange County and San Bernardino County areas?

I’m looking for a title company that can also hide the Assignment fee from the Seller, even though the assignment fee will be in the contract?

As Joe stated above, escrow companies handle the paperwork of the contracts between buyer/seller. Title company provides the title insurance, title report, and recording of the grant deed (and deed of trust if there is a loan).

Why are you trying to hide the assignment fee from the seller? Not being upfront and honest in your transactions is not a good way to do business in my opinion. Additionally, if you are locking contracts here and then marketing the property for a buyer for a fee, you are brokering without a licenses here in CA.

I would suggest having your buyer upfront, know what they want and go find that criteria. Then the contract can be made directly in their name with a signed side contract between you or you simply form a new entity naming your buyer as one of the owners and sell your shares for your fee in the end. This is the only legal way to "hide" your fee. Even if you double close, the seller will know once the second recording is complete (if they look it up) as it is of public record what you paid them and then what you immediately sold for.

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I’m new to wholesaling and still learning and I was told I need a title company to close the deal.

But from what both of you are telling me, in California it’s the escrow companies that closes the deal not the title company. 

How about title insurance, does the escrow provide that as well in California?

In addition, other people are telling me that a title and escrow company are not the same thing, is this true for California?


Also, I was told that there was a way to not let the seller know about the assignment fee (the mark up and my fee) because that could create conflict with the seller knowing that I was selling the contract to a buyer (RE investor) for a higher amount. 
Obviously all the amounts will be in the purchase agreement contract for everyone to see, but I wasn’t sure if the title or escrow company would say “Hey Mr Seller, the wholesaler would be getting an assignment fee and the buyer is paying for it higher than the wholesaler got it from you.”

Originally posted by @Joe Homs :

@Brian C. We use escrow companies here in California. The only way to hide the assignment fee is to do a double closing.

Good investing...

 I don’t mean intentionally hide the wholesaler fee from the buyer, but what am asking is, does the title or escrow company have to disclose the assignment fee to the seller verbally or explain it to the seller?

@Joe Homs

That’s right!

I will use an assignment contract. The seller would be selling the rights for me to sell their house to a Real Estate Investor and I would get an assignment fee for finding a buyer for their house or property.

Do you wholesale or just fix and flip houses in the OC?

@Joe Homs

So are you saying in California, I need to look for an escrow company NOT title company for wholesaling?

All real estate transactions close thru escrow BUT the title company is needed for title insurance and to do additional checks, such as if the property is not being sold to another buyer.

This thread demonstrates common confusion with the term "title company".  A title agent issues a policy on behalf of a title insurer.  An escrow agent holds things on behalf of various parties who may have an interest in them and only releases them on complementary instructions from all the interested parties.  Frequently a "title company" acts as both an escrow company and title agent and you probably should seek one who does both.

Originally posted by @Peter Walther :

This thread demonstrates common confusion with the term "title company".  A title agent issues a policy on behalf of a title insurer.  An escrow agent holds things on behalf of various parties who may have an interest in them and only releases them on complementary instructions from all the interested parties.  Frequently a "title company" acts as both an escrow company and title agent and you probably should seek one who does both.

Got it. Understood. Thanks