Title Companies Drop the Axe on Double Closings
There is no question that many title companies are tightening up their paperwork in order to avoid liability and the wrong type of attention. Some are demanding increased documentation and acknowledgements of assignment fees and flips from home buyers and sellers and others just don’t want to touch real estate investor deals at all. Fortunately this doesn’t mean an end to assigning contracts or making great money from flipping real estate or wholesaling. Some investors are just misunderstanding the demands and others are panicking for no reason, without bothering to get out and find a local investor friendly title company. There are regulations to be followed but there are still ways to do these deals every day… For a start, if you focus on the right customers there shouldn’t often be an issue, even if your fees or profits are disclosed. You do deserve to earn a reasonable fee in return for providing a valuable service. Secondly, the availability of transactional funding makes it easier than ever for all investors to flip that house with no money down and without having to disclose profits to either seller or buyer. There are real estate investor friendly title companies out there and providing both ends transactions are fully funded there should be no issues with double closings. Of course there are no doubt also real estate attorneys and title companies out there who will still do anything for a buck too, even though they may still be rocking an ankle bracelet and be on house arrest already. Be very careful about who you do business with, it is a direct reflection on you and even if you weren’t doing anything wrong you don’t want the FBI picking up your files during a raid and putting you on their radar.
Some real estate investors have been reporting local title companies are making it virtually impossible to flip houses using double closings, so is this the end of the easy money train and wholesaling real estate?