what's going on youtube jamil here in
this video we are going to talk about
title companies closing attorneys escrow
companies
and what they do for us in our
transactions check it out how's it going
guys
so title companies closing attorneys
escrow offices what is what what do all
these mean right why do we need them
how are they involved in our
transactions how can they assist us how
can they blow our deals up how can they
open up relationships and and and help
us expand our business
all of the above can happen when working
with a title escrow
or a closing attorney and so i want to
talk to you a little bit about how we
work with these people how we identify
which ones
to do business with and the things to
keep in mind pay attention to
avoid when you are in those
relationships and also
how you can leverage these companies or
these people to expand and scale
your business so first things first
title companies right title companies
they are employed by individuals that
are conveying property so if you're in
the middle of a transaction
title company their sole responsibility
their job
is to check the title of the property so
they're going to
pull the title report of a specific real
property and they're going to look at
what are the items on the title report
there could be liens there could be a
mortgage
who are the owners are the people that
are on the contract
actually the people listed on the title
do there are there any encumbrances are
there any judgments
are there any uh deed restrictions are
there any utility rights of way
the important parts about a real
property will actually be
registered or recorded on the title and
so a title company's
job is to look at that title and see can
this title be conveyed are the
individuals
that have control of this title the ones
that are on this contract
and they handle all of the
title documents for a deal now in a
place like
phoenix arizona the title company is
also the escrow company meaning
they are also the third party that is
that is handling
how the money will be transferred how
the title will be transferred all of the
insurance that needs to be applied
to that transfer they are the ones that
are going to be ensuring that the
part that the transaction will actually
happen by law
and and according to the uh the
standards and practices
of that specific state so um in
in phoenix arizona title and escrow are
together now
place like california title and escrow
are separate
and so there'll be a title company
there'll be an escrow company and so
that
uh offers some confusion for sometimes
for people because they're like
well why do you need both in certain
counties or in certain states
they're actually a completely different
organization and so you need to employ a
title company to do the title work
and an escrow company to do the
paperwork and to make sure that the
funds are all there and that the people
that are signing are all real
and the ones that are on the title and
so that becomes
separate jobs then you add in closing
attorneys and in places like georgia
where it's a
judicial state closing attorneys are
actually lawyers
and they're the ones doing the work of
the title company
of the escrow company and so they're
handling the conveyance of the
transaction
a lot to remember right a lot to think
about now why are they important well
in what we do in wholesale we are
actually
really just selling the potential of a
deal right we're selling our
contract on a deal and so the reason why
a title company is important is that
when we're using instruments like
assignments or
when we are using a double escrow to
use the funds from our sale to pay for
our purchase
the title company are going to be the
people that are going to handle all of
that detail now the reason why they're
important to
distinguish and know and to have
relationships with them because not all
title companies
not all escrow companies and not all
closing attorneys
are the same a lot of them don't have as
much knowledge experience
or or even relationships in investment
real estate and so when we're bringing
things like assignments or double
escrows
their brains explode they think oh my
god i don't know how to handle this and
they automatically go to that one term
we all hate
this can't be legal but a lot of times
title companies
escrow officers or closing attorneys
just aren't aware
of how these transactions operate and
because they don't understand and
because they're not aware
they automatically say this can't be
legal so
as wholesalers we want to make sure that
we are identifying title companies
escrow officers and closing attorneys
that are going to be
conducive or help our transaction move
forward right we don't want our
our escrow officer talking to a seller
and bringing an illogical
fear or making them feel uneasy about
the
instruments that we're using in our
transaction because they don't
understand what the documents mean i've
been in a situation before
where i allowed for a seller to choose
the title company
and then i assigned that contract to a
buyer and the first thing that happened
was the escrow officer called the seller
and said
i think your buyer is trying to do
something illegal oh my god you can
imagine what happened then the seller
was completely spooked she thought i
don't want to be involved in something
that could send me to jail
i don't want to be involved in a
fraudulent transaction i don't know
what's happening this person
this title company that i've employed to
watch out for me to hold
have my back to make sure that
everything is going the right way
just informed me that i might be
involved in an illegal transaction
so that deal didn't end up actually
happening right because the seller was
totally spooked they didn't want to do
it and i didn't want to force the issue
and so
we unraveled and everything fell apart
so it's really important that
you as the wholesaler help
dictate what title company what closing
attorney or what escrow company you're
going to use in a transaction to make
sure
that the transaction goes smoothly so i
use a company called
constant close constantclose.com
for a lot of my transaction coordinating
now
they have relationships across the
united states
for title companies and escrow officers
and closing attorneys that will allow
for our transaction style so if you're
trying to do a double escrow if you're
trying to do an assignment
multiple assignments if you're trying to
use the instruments that we use for
investment real estate
and you want to make sure that you're
working with a title company that is
a cool b won't blow your deal up and c
knows what the heck they're doing in
order to pull this transaction through
you want to get a hold of constant close
in fact my very good friend rachelle
jarvis she's the owner there
tell her i sent you she'll hopefully
give you some kind of a break on pricing
but
they are fantastic they work with the
title companies they work with the
closing attorneys and they work with the
escrow companies to make sure
that our transaction will go smoothly
now in addition to that guys
your title company or your escrow
officer can do what's called a blind hud
in in situations where we're doing an
assignment meaning they'll keep the
documents that are pertinent to the
seller
for the seller and they'll keep the
documents that are pertinent to the
buyer
for the buyer and because of privacy
laws they actually have the right
not to show both sides of the documents
to either party
meaning our sellers won't see actually
how much of an assignment fee we're
making and oftentimes that's good
right because sellers they feel like oh
well if you're making a ten thousand
dollar assignment fee why didn't you
just give me that extra on my price
but that's how we make money right
that's what we do and they don't
understand
that we have families to feed sometimes
and they always wants what bet what's
best for them and so
oftentimes it's just better they see the
information that's pertinent to them
right and so richelle jarvis over at
constant close
she'll be able to help introduce you to
the title companies escrow officers and
closing attorneys that will do things
like blind hoods that will
allow for things like assignments that
will allow for double escrow so that
moving our transactions along will be a
lot easier in addition to that if you're
doing any type of creative deal
whether it be an owner finance a
subject-to a seller carry
the documents and the instruments that
we use for those specific types of deals
are really intricate and important to
get right so
you want to make sure that your title
company your escrow officer or your
closing attorney
understands the nuances of how those
documents need to be prepared
how they need to be conveyed and how
they need to be transferred so that
everything is happening correctly again
rochelle jarvis at constantclose.com
that will be a great resource for you to
making sure
that you're working with the appropriate
people when you are doing some type of
creative deal now we talked a little bit
earlier about
how title companies escrow officers and
closing attorneys can help you grow your
business
how the heck is that possible right well
here's how
a lot of the relationships that i've
made have actually come from doors that
have been opened to me
from my title officer from my ascer
officer or from a closing attorney these
people are doing so
many transactions with real players in
your specific market
that if you bring business to a title
company an escrow company or a closing
attorney
they will be inclined to help bridge
relationships between their clients so
that more deals can happen at their
office
and so often times if you're trying to
meet
new relationships like new buyers for
fixing flips or maybe buyers for buying
holds
or institutional buyers or maybe even
some
potential wholesalers you want you're a
rehabber and you want to do business
with more wholesalers
they can open doors for those
relationships for you because
they want to do more business with you
so it's really important that you make
friends with your title companies that
you make friends with the escrow officer
and you make friends with the closing
attorney because
just asking them to open the door for
you
could truly truly help you scale your
business
now beyond that what's really awesome is
i learned early on in the business when
i was first getting involved and i
didn't have access to good assignments
i didn't have access to really intricate
purchase contracts
and i didn't have the documents that i
needed to push my business along further
and i didn't have the money to hire an
attorney at the time
to complete or construct those documents
for me
i found that a great leverage point with
a title company
was their legal department so what you
can do
is you can actually call a title company
and have them introduce you to
their staff attorney in their legal
department
and they can help deliver to you the
documents that you'll need
to do business now oftentimes title
companies
have specific documents that they want
or they're comfortable
using and so they may not like your
assignment they may not like your
purchase contract and so what you want
to do is call a title company
get in touch with their legal department
and have them
provide you the documents that they feel
comfortable
with allowing for the double the double
close or the assignment or
uh whatever creative deal you might be
working on a fantastic way for you to
get your hands
on really expensive contracts that could
cost you thousands of dollars to create
for free for free why
because that title company wants you to
use them and so that
attorney that is a staff paid employee
for that title company
is inclined to give you those documents
so that you'll use that title company
for them in your business now first the
final thing that i want to remind you is
these title companies a lot of times
they don't make money until you close a
deal so it's really important that you
just don't go there
and ask them for free stuff and then go
take your business elsewhere right so
respect your title company
respect your escrow officer give them
presents on at christmas
check in with them on their birthdays be
nice to them form
real relationships with them in fact my
relationship was so strong with my title
company
that i actually bought it and now i'm
the owner of that title company because
i love the escrow officer so much i love
the people so much
and i love the business model so much
that i thought hey here's a cost here's
a
here's a place where my company is
actually spending money every month why
don't we make that a profit center
and so now my title company is doing
deals for people all across
phoenix arizona that are doing these
investment style deals
because we are a knowledgeable about
them and b
it gives me an opportunity to make new
relationships so guys
get out there do business with your
title companies make friends
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