Flip Tip Summary

Like many things in real estate investing, maintaining control of a deal is key. Dave Schumacher, title industry leader, shares how you can maintain control of your deals by controlling what title company you use. Check out this FlipNerd.com Expert Tip to hear more.

Flip Tip Transcript:

Mike: Hey, it’s Mike Hambright from FlipNerd.com and we have a quick Expert Tip to share with you from Dave Schumacher who’s going to share a tip on how to keep your closings from falling through.

Dave: What I’m talking about is, on any kind of real estate transaction, whether it’s a normal transaction, whether it’s a foreclosure. My background has always been in mortgage foreclosures or Tax D properties. One of the biggest things you want on your team is a good title company who understands your types of deals. In some states a buyer has the right to choose the title company. You as the seller, are going to want to control the transaction so that you can run the title through your title people who get your deals. Especially if they’re complicated or they involve a nichey title or title problem. You’re going to want to use a title company that understands your deals.

So, in order to do that you want to use again, I’m not an attorney, I can’t give legal advice. Basically, but in my own experience, if I control the transaction, in the purchase agreement I add an addendum. A clause that says that so and so title company is the title company that’s going to handle this. And I’m going to pay for the title insurance so the deal is going to go through my title company. I’m paying for the title insurance for you. That’s a benefit for you. It saves you money, and allows our deal to go through.

Because if you don’t do that, in a judicial foreclosure state, those of you who are out of Florida or South Carolina, or whatever state you’re dealing in, where it involves attorneys. If their underwriter doesn’t like your deal, they may kill the deal. So if you control the deal by paying for the insurance which allows you to go through your attorney, or your title attorney or your title office that understands your deals. You’ll keep the deal from falling apart when the buyer’s attorney or title company says we don’t insure that.

Mike: Thanks for joining us for another FlipNerd.com Expert Tip. To access hundreds of tips and full expert interviews, please visit FlipNerd.com or join us in the iTunes store. We’d like to thank our sponsors, RealtyMogul.com and National Real Estate Insurance Group.

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Please note the views and opinions expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or tax decisions as real estate investing can be risky.