How to sell property without a title company
Buying and selling properties without a title company
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good morning my real estate
entrepreneurs out there it is Wednesday
about nine o'clock heading to the office
and got me thinking about title
insurance and how important title
insurance is I know a lot of investors
out there what they'll do is you know
they put it deal together and never take
this actually to the title company and
they'll just go ahead and do a
transaction and do a quick claim deed
now you can go ahead and do that the
only the only problems that I have with
that is that the title will not be
insured and there's a gap on title and
by taking to the title company yeah it's
gonna cost you probably about 1,500
bucks just depending but it's roughly
about fifteen hundred dollars with the
title fees and all that stuff but the
reason why I bring this up is because I
had a case where one of my investors got
inherited a property through their
family and it was actually quickly
indeed but the problem is that there
were four siblings which got transferred
which the four siblings transferred over
to my
investor and basically I was trying to
help them sell it but because one of
them actually had a bankruptcy and they
did a quitclaim deed now they couldn't
take the property out of bankruptcy and
the title company won't insure it
because now there's a gap in title now
before he filed for bankruptcy what he
should have done was to get to the title
company and actually got in an
endorsement so that way he transferred
the title with no issues and if if he
had done that he would had sold the
property and would not have any issues
so now they're going through some legal
issues to free up and clear title in
order to get the transaction done so the
reason why I bring this up is because
there's times when I'm actually
financing a property or using other
people's money and what I do is you know
to get the deal if it's like a short
sale I put the property actually under
my name so that way I can get the deal
done also get the loan sometimes or
through investors or hard money I'll get
it through my name then what I'll do is
I'll let my escrow officer know that
before we close go ahead and add an
endorsement basically an endorsement is
just a extra fee that you pay the title
company knowing that the title company
knows that you'll be transferring title
over to your entity in the near future
so that we want you transferred over you
will still have title insurance
while you are transferring title over to
the next entity and that's very
important because you don't want to have
a gap in insurance title insurance
because if something comes up when you
try to close out the deal or sell the
property and if they can't clear that
cloud on title you're going to have
issues as far as selling that property
so remember it's calling an endorsement
and every time you buy property under
your name and you want to transfer it
over to your entity later on make sure
you get that endorsement it's very
important versus just quit claim deed
and just keep in mind you just go down
to your title company let them know that
hey I want an endorsement I'm going to
transfer this property over to my new
entity so that way you won't have any
issues and it's going to run you a
couple hundred bucks but you know its
money worth well spent and just factor
that into your deals but other NASA
that's all I have for today don't forget
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know I go through my experience on
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