Real Estate Closing — Using a Title Company for Subject To Real Estate Closings

Real Estate Closing — Using a Title Company for Subject To Real Estate Closings


The next question will be answered in 20 seconds by our host Marko Rubel a self-made millionaire who bought and sold over 300 properties. He is one of the foremost experts in front of the National Real Estate Investors Association representing 40,000 investors nationwide He’s listed in prestigious Who is Who and well known in the business world Here is the next question from our
listener. Well Abby is asking if you can kind of explain the process to close a subject to property at a title company she’s saying she kind of wanting to know what do we tell the title company? Do we have to buy a title policy? Does the title company prepare a HUD-1 for us? Can you kind of explain the process here. Yup, Great Abby, what we do is this, when you’re going to the title
company to buy the house subject to the existing loan
then the title company will prepare most of the paperwork title company will prepare the HUD-1
settlement statement they will prepare escrow instructions obviously
title insurance depending on which state you in in some states the closing attorney you know basically he’s not gonna close unless you have the title insurance because
they sell title insurance like in Arizona you can only close if you
use title companies and that means you have to buy title
insurance. in California, you can use escrow companies and you don’t necessarily need
to buy title insurance in order to to close now obviously in this answer i’m not gonna go into
versus do you need a title insurance or when you don’t need it I’m just gonna say you know the safest is
to always get it especially in the beginning when you really don’t
understand everything so get title insurance but as I said there also situations where you may not need it
right so so then the title company will prepare the HUD-1 settlement statement, the escrow instructions everything but you need to remember that you need to provide your own DISCLOSURES because remember Who is the title company trying to protect? THEMSELVES so you get a prepared Due
on Sale Disclosure where the seller is aware of due on
sale on the loan, right gotta prepare Affidavit of Completed Sale you gotta prepare Authorization to Release Limited Power of Attorney and a whole
set of documents that you have obviously in the in the niche to wealth
course in the course material and at that point when you get to the
closing you give those documents to the closing agent to to sign or you just get them signed right
there as a part of the closing and it’s very important here
here is the one thing guys you need to really really take into consideration in this business in
any business You are in control of your profits You in control of your overhead You are in control your life when you have your own business so when
you’re sitting at the closing you don’t rely on a closing agent who
has nothing at stake pretty much and who got you to sign a bunch of
disclosures where they’re not responsible for anything you can not rely on them to sign all
these disclosures & Power Authority and everything else you need you are the one who needs to know what
you need go to the list of documents that I give you and make sure you get them signed at the
closing but at this point you really you know don’t need to worry about it that much Get a Purchase Agreement signed because you know, Mike, myself.. you know coaches will go precisely through the documents we’ll make sure you don’t hurt yourself you get you know you get going but as I
said at this point this is how it works so Mike unless you have anything to add
let’s move the next question Yeah I just want to make sure and make the comment to make sure you are at the closing as well you don’t wanna close and have the sellers come at a later time and sign when they’re there you want to
be with them at the closing in case they have any questions you don’t want the title company representative there trying to explain anything that you are doing Very good point Mike Very good point. You gotta be there at the
closing regardless if you’re wholesaling a property or you’re buying subject to whatever way you do it you wanna be there many reasons for that just not going to
that in this answer on this question so uh let’s go to the next one mike…

Comments

  1. Post
    Author
    Teresa N

    Marko, I've noticed that the person who does your write-ups here and when I was on your live calls with the write-ups afterwards, they didn't know what you were saying and mangled what you are trying to teach us. After awhile I figured that out but not at first.

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