Need Help With First Deal!!!
Hello everyone!
I would like to know what paperwork is involved when buying a home with the intention of selling it ASAP!!!!!!!
I guess it would be a flip..........I'm buying it tomorrow and selling it......as is.........within 30 days.........or as soon as my buyer qualifies for a mortgage!
I'm new to REI and can use all the help I can get!!!
I have been birddogging for some time....but this is my first purchase and sale!
Do I have to go through a title company or can my attorney handle everything for me?
Do I need a title search......title insurance policy, etc. ? The taxes are current.......and the owner has home owners insurance..........house is paid for......and has a clear title!!!
Thanks in advance..............Your help is very much appreciated!!!
salocator03 
If you're buying it, then you will need to have a closing. Whether you use a title/escrow company or an attorney will depend on your state and your state's laws.
If you're supposed to be closing tomorrow, asking about title insurance and search may be too late, though most attorneys won't close the deal without the title search. It would be in your best interest to get both.
Whether the current owner has insurance or not is irrelavent. Do you have insurance to cover the property?
If you haven't had or performed a title search, how do you know the title is clear?
As far as selling ASAP, if you're wanting someone to supply their own financing, you'll probably have to look at people with good credit because they will only be able to qualify for a no seasoning loan which is much harder to find. In fact, if you haven't already got a lender (usually thru a mortgage broker) lined up with this, most will not pursue the task of finding one on there on.
I've made some assumptions here because the term "buying" is a little freely at times in REI. I assuming that you're actually taking title to the property.
Roger
Quote:
On 2003-10-27 07:13, rajwarrior wrote:
If you're buying it, then you will need to have a closing. Whether you use a title/escrow company or an attorney will depend on your state and your state's laws.
If you're supposed to be closing tomorrow, asking about title insurance and search may be too late, though most attorneys won't close the deal without the title search. It would be in your best interest to get both.
Whether the current owner has insurance or not is irrelavent. Do you have insurance to cover the property?
If you haven't had or performed a title search, how do you know the title is clear?
As far as selling ASAP, if you're wanting someone to supply their own financing, you'll probably have to look at people with good credit because they will only be able to qualify for a no seasoning loan which is much harder to find. In fact, if you haven't already got a lender (usually thru a mortgage broker) lined up with this, most will not pursue the task of finding one on there on.
I've made some assumptions here because the term "buying" is a little freely at times in REI. I assuming that you're actually taking title to the property.
Roger
Thanks for the reply Roger.............the reason I know it has a clear title is because the owner was going to sell it six months ago but she backed out at the closing table......(something to do with the buyer) Since they were at the title company ready to close, I'm assuming that all the paperwork was in order. The owner also told me that the buyer was going to pay for all the closing costs. Is this how it's done, or should the closing costs be shared with the seller? In answer to your question, I'm not actually closing today........she has accepted my purchase offer and now I need to draw up the actual purchase contract. I am planning on consulting with an attorney today to see what steps need to be taken........and possibly with an escrow officer too. I just wanted to know what steps to take, or what actually takes place at closing.........and what would be required of me.
As for the insurance, I have been told that she can just add me to her current insurance............can this be done?
Again, thanks for the advice!
salocator03
P.S. Can you explain what a seasoned loan is? " Thanks!
By the way, I live in Texas! Seems like most transactions here take place at a title company. I just thought that perhaps an attorney would be able to handle the transaction.
Hey Roger,.
I forgot to mention that the actual closing won't take place until 30 to 45 days from today.
Thanks!
6 months ago was 6 months ago. You don't have anything other than the seller's word that it was clear then, or now. It may have not sold because the title had problems. Free lesson of the day here: Don't assume it, Know it. Assumptions will get you in it deep, fast!
Just the other day I ASSUMED I was talking to a desperate owner trying to sell his property before it foreclosed. After doing a little research (due diligence), I discovered that the property had already been foreclosed, this "motivated seller" was just still trying to sell it.
Closing costs is negotiable like all things. Most frequently, these are split between the buyer and seller.
If neither you nor she has actually signed an agreement, she's not accepted anything yet.
If she is no longer going to own the house, then there will be no insurance to add you to. It doesn't work that way anyway, sorry. You'll need your own insurance suited for whatever you plan on doing with the property.
Seasoning refers to the title or deed of a property. Most lenders will not loan money against a property that does not have a title that has been seasoned for at least 6 months, some up to 12 months or better. So if you buy it and sell it within 30 days, you'll only have a 30 day seasoned title. There are lenders that will loan on these, especially with good credit, but you'll have to find them.
You mentioned that you had been birddogging. Will none of the investors that you've found deals for not help you thru this? If you haven't asked them yet, I'd suggest that as they should be familiar with the state laws and customs concerning REI deals.
Roger
Thanks alot for your reply Roger!
Your information was very helpful!!!
salocator03
I have a list of lenders that do not require seasoning on loans. If you are interested, please contact me. The very large majority of lenders do require seasoning. One year ownership is the standard set by Fannie Mae. It is rather complicated to make it a short story, but they have their reasons. The credit is of importance but it is not a deal killer so long as they have decent credit.
Respectfully,
Phil
Phillip Herrejon
President of the Chicago Real Estate Investment Club
Investment Property Finance Consultant
312.375.7132
**Please See My Profile**
Thanks Everyone for the feedback!!!
I really appreciate it!!!
salocator03