Title Companies and Your Wholesaling Business


by Brian Snider

ou have jumped into the wholesaling world, and you are

title process. For example, who is on the title? Is the owner deceased? This will be important information to include with your purchase agree- ment. The more the title company knows upfront the easier the process will be and more likely you will close sooner rather than later. Be knowledgeable about what is in your contract. Is the buyer or seller from out of state? Is there a current tenant living on the property? What about understanding the dreaded proration of taxes; EDUCATION especially in Indiana? Understanding the title process is also essential. It’s not just a one-step and done process after you submit a purchase agree- ment. The title process is a strategic 8-10 step timeline. This is why it is so important to provide a clear and clean purchase agreement, be available, and provide accurate contact information. The more you do as the wholesaler upfront, the more straightforward the title process will be. TRANSPARENCY Wholesalers tend to have a bad reputation in the real estate community. When working through a contract don’t set false expectations such as promising a seller you can close in 48 hours if it’s not feasible. Maybe 10-15 years ago this was acceptable, but now the seller and the buyer should be aware

of the anticipated timeline. As the wholesaler, you are in control to set realistic expectations, and if the contract closes easier than expected, great! You also need to make sure the funding is solid. Educate your buyers and sellers on fraud and how to be cautious with wiring instruc- tions. Be sure to understand where the money is coming from. Will there be a wire? Is a lender involved or all cash? Funding can delay the closing. Ask your buyers and sellers about funding upfront and be transparent with the process. Keeping all channels of communication open and honest can reflect on your company’s reputation. If the transac- tion is clean with clear expectations, you continue to build a good reputa- tion for yourself and in turn will get more referrals. Having a trust - worthy reputation as an honest and fair wholesaler will result in profit and growth. As title companies often see, misrepresenting yourself to the buyer or seller and acting as a realtor will get you in trouble. You are a mediator between the buyer and seller, so do not misrepresent yourself as the realtor! Going through the title process isn’t as simple as going through a drive-through and picking up a hamburger. Especially during this time of COVID where title companies are following different TIME & PATIENCE


ready to complete a transaction and ensure the investment pays off. But you question, “How can I be confi - dent this deal will go through free and clear?” It’s simple, use a title company. A title company will certify the property is free and clear of any problems lurking under the surface such as liens, missing deeds, judg- ments, or unforeseen hazards. TITLE 101: HOWTOWORK WITHTITLE COMPANIESASA WHOLESALER COMMUNICATION It is essential for the completion of the transaction that you communicate clearly with the title company. When you submit a purchase agreement don’t be sloppy! Although some title companies may have seen it all from a walk-in purchase agreement to something written up on a napkin, you should make sure all documents are legible and contact information is included; such as emails, phone numbers, and addresses. Title companies may need your help and, as the wholesal- er, don’t go dark. Be available. You may need to play the role of mediator between the buyer and seller. It is important to make sure all parties are on the same page. You can provide clear communication to both sides while helping to facilitate the

72 | think realty magazine :: september 2021

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