What Is the True Role of a Wholesale Real Estate Title Company?
When it comes to wholesale real estate, title company details are essential. Regardless of where you conduct your business, title companies handle all the tasks associated with transferring title and title clearance, as well as dealing with tax issues and other possible concerns that buyers or sellers might have, prior to the closing of a deal.
Why Do You Need a Title Company?
For an expert in wholesale real estate, title company concerns can be very important because of the risks involved with distressed properties. You might find properties that sell for as little as $33,000 in a place like Pittsburgh, but without a proper title investigation, you can face a lot of adversity. A title company can smooth things over and take care of tasks like title search, tax certification and making sure title insurance policies are issued on time. Payoffs and payoff verification can also be important, and the company will be in charge of managing and notarizing all aspects of the deal to achieve a smooth closings process. A good title company will protect you from risk without asking for highly expensive fees, so you can add more of the money to your wholesale real estate profits.
Your Title Company: Coordinating Power and Communication
As mentioned, coordination is one of the main strong points of a good title company. If you’re interested in wholesale real estate, title company communication and coordination problems have to be avoided as much as possible. When you’re on the clock trying to manage your deal and take care of the paperwork, you don’t want yourself or the seller to be kept waiting. The title company will make sure you don’t have to. They will coordinate with you on all tasks, keep the communication lines open, as well as give you updates on title search and managing important deeds and documents.
State Regulations and Wholesale Real Estate
Now, depending on where you live, choosing the wholesale real estate title company might not be up to you. In states like Nevada or Pennsylvania, the buyer chooses the title company, and as a wholesaler, you might have far greater difficulty. However, when it comes to finding a service like PV title company, Pittsburgh is a much more hospitable place. In Pennsylvania, if you already have a title company in mind, most investors and buyers will look favorably on your choice, especially in the case of a reputable company. Be advised, however, since wholesale real estate taxes can be steeper in PA, and you will have to take that detail into account before establishing your price.
Title Companies and Escrow Agents
Wholesale real estate experts can tell you that almost all title companies also act as escrow agents. Also, some title companies can even perform a double close, which could be more costly, but can prevent buyers and sellers from interacting, giving you the edge as a wholesaler. The greatest advantage of dealing with title companies that handle escrow and simultaneous closings is you don’t actually have to use your own cash. You can simply close with the buyer and the seller at the same time, giving you a real advantage and making the value of the wholesale real estate title company you use shoot up even higher.