You know, I really haven’t cared too much about it. I did have a seller squak once, but after a little lecture about legal ramifications from the closing agent, the closing went through without further problems.
The question really is: “Can you sit there knowing the seller and buyer know what you paid for and are selling it for?” Is this kind of pressure something you really need to worry about? Most of the time, it’s VERY low on my list. There are too many other things that could go wrong or be missed at closings for me to worry about something this small.
As for the buyer, if it’s a good deal and there’s a hefty profit margin built right in, they know all I have to do is pick up the phone and maybe close later TODAY with another investor/rehaber (they loose profit and their hefty deposit they left with ME). You’ll have ZERO problems with buyers/investor/rehaber.
Hello to all. I need some advice. In the process of working with Chicago Title company in northern calif.
Very nice people. They are very happy to assist me in my wholesale home closings the way that Ron Legrand teaches in his courses.
The only thing that appears to be different is this: they informed me that they would have to disclose to my seller that the property is being sold for a possible profit and that the funds to close the first transaction are being derived from the “resale escrow” transaction.
Then they would disclose to my buyer and or lender if one is involved that the property is being subsequently sold for a possible profit and that the funds to close the first transaction are being derived from this resale transaction with either new lender financing. In the event there is no new financing, the disclosure should still be executed by the seller and buyer.
This is what they are set on doing. My question is this,
are any of you running into this situation? If so, how have you dealt with it? Also, what kind of negitive impact will it have on my deals with my seller and buyer? The title company does not seem to back off from this. They are intent on protecting themselves legally. this is what i am told.
I have called several other and none seem as cooperative as Chicago Title in all other aspects. This is The only possible negative I see at this time with them. otherwise they will do everything that Ron legrand says to have them do for my wholesale and flipping deals.
Re: simultaneous closings in california - - Posted by Erik Bergerud
Posted by Erik Bergerud on February 05, 2001 at 23:11:31:
David-
I found your message to be very similar to my concerns about wholesaling. I am in S. Lake Tahoe, CA and am very anxious to become involved with wholesaling/flipping. Do you feel that LeGrand’s course on wholesaling is worth the $600? Would you be willing to sell your course? Where did you begin? Any help would be greatly appreciated. Thanks, Erik
I too am in CA and used Chicago Title until they were bought out by Fidelity.
In doing flippings, I buy from banks and sell to rehabers this way. I have NO problems with disclosure. In fact, I am NEVER afraid of the seller finding out and trying to back out.
Remember, you have a signed purchase and sales agreement (legal document). If the seller (bank) backs out THEY can be sued for monitary losses (your profits) and legal fees. AND you know what, they will loose if you have any kind of good corporate or real estate attorney. You will have NO problems dealing with a bank as the seller!
Only worry about possible ‘seller’s remorse’ when dealing with individuals, but it wont make any difference with a signed P&SA. Didn’t you diclose when prescreening them that you “needed to make a profit to get involved”?
Re: simultaneous closings in california - Posted by george CA
Posted by george CA on January 30, 2001 at 23:47:52:
Find a local independent escrow company, there you are likely to meet an escrow officer who thinks outside of the corporate box. A good escrow officer is one you follow wherever they go. They are out there and are as creative as you are. good luck.
Hi Jim, Thanks for your response. Makes good sense about buying from from the banks since there is a P&SA.
What about when my seller is an Individual instead of a bank? What has been your experience with that? How do they react to the disclosures?
How do your buyers/rehabers react to the disclosures Jim?
Yes, I tell them that I am an investor and that I need to make a profit to get involed. I like for them to know up front. Thank you again for your help!
Thanks for your responese. I did end up calling another title company. Alliance Title. The lady knew right away what I wanted. I did not have to go through 2 different layers of management!!!
No charge for title search! Only title insurance for my buyer! The only thing is she says that they too need to give discloser to my seller and my buyer. The difference between them and chicago title is that they will not be disclosing that I am selling at a possible profit.
I now have called every title company in our city. They all say the samething. Thank you for your help George. If you have any other suggestions please let me know.
Remember, the closing table is strickly for transfer of ownership NOT negotiating. Negotiations should be completed long before you get to the closing.