Sub2--how Fast Can YOU Close?
I've just ordered John's Sub2 info but I can't wait to see if this info's in there. One of the benefits of Sub2 is said to be the 'fast close' (no realtor or bank paperwork!). But how fast is 'fast,' a day, a week, a month? Some suggest it should be delayed by a month or two to provide for the possibility of a double close. How exactly is the close done, with a title company, lawyer, just me and the seller? Remember, I'm new at this tactic, but have done a few closings, including one in a bar over a beer (that was just for 10 acres of raw land). What about the time needed for (at least a prelim.) title search/opinion? Abstract issues?
I know with experience this knowledge will come, but I'd appreciate insights and possible pitfalls in this process as I get started. Seems to depend a lot on trusting the seller that all will be well. Thank you.
I have been getting title committments in 2 days from several title companies. Closing really depends on you. I usually do my own including the documents and can close my sale the day I get the title work. I do not use title policy with zero down deals but do when paying cash for deals. Title company should only take a day or two to close. The end of a month you may have scheduling problems. Just some ideas
Good LUCK and Thank You
Hope this helps some
Ted Jr
Ted,
When you say title work do you mean title search? If so how much are you paying. Also any problems doing the paper work yourself?
Thanks
James
When you get John's manual, you will see that 'closing' in the traditional sense is a little different with most subto deals. You negotiate a purchase of your motivated seller's equity and get the deed to their house. This is one "close" and can be done very soon after you come to agreement with the seller. The delay is usually the time it takes them to vacate the property. This closing can be done with a mobile notary at a McDonalds. Banks or title company offices can be used if the seller needs that warm fuzzy traditional feeling..
The other "close" is with your buyer. One of the primary benefits of taking a property subject to the existing mortgage is passing that financing on to your buyer who cannot qualify for a traditional mortgage. Subto houses are usually sold under a Contract For Deed (aka Land Contract and other names). They will not get the deed outright until they satisfy the existing amounts owed (to you, to the original lender, etc.). They will own a beneficial interest in the property during that interim (the time between agreeing to the purchase, price and terms with you and the refinancing) but you do not "close" with your buyer in the traditional sense until then.
Lots to learn, money to be earned!
MarkR
loon,
I believe my best time was 4 hours, had to sign the closing paperwork on the hood of my car and have a roving notary show up.
The reason we used the hood of my car was the house was vacant and no where to put the paperwork. The seller was packing up when I arrived, not behind in payments, was transferred and had given up on selling the conventional way. Said he called me in hopes someone could help him, because he did not know what else to do.
The due diligence was done in about an hour at the court house, I used the merge function in word to enter the names. Had my laptop and small printer with me, sure like these modern miracles to help close a deal right then and there.
John $Cash$ Locke
loon,
One of the many, many great things about buying sub2 is the ability to close more quickly than most any other method.
If you can do a title search, or have someone who will knock one out for you on a moments notice, you can literally close in an hour.
Try to find out if your area has 24 hour access to the courthouse record room. I found out my area does and I had my attorney teach me title searching. I can now get into that courthouse anytime I like.
When a seller calls me at 11pm the night before the auction, and they have, I can be ready to stop it when the attorney's office opens up at 8am.
WilliamGA
William Tingle
Hi everyone,
I have seen from this post and others tonight that title searches are a hot topic. So I am wondering are they hard to do? What happens if you have a court house that rolls the sidewalks up at 4:00pm? I would like to do my own. Going rate is $125 bucks here and I would love to save that money. If anyone can help me it would be great. I have 3 appointments this weekend and would like to have the property checked out before I go in.
Thanks for the imput....
James