Open title closes

[REIaddicted]

How many here have used this method when closing?

I love it ! Close witht he buyer first, close with the seller an hour or so later. The buyers money pays the seller and you walk away with a pretty check. :SM086:

Lisa

[REI-NY]

How exactly do you do this Lisa, is there anything I can read about it. It does sound interesting thanks

Michelle

[REIaddicted]

How exactly do you do this Lisa, is there anything I can read about it. It does sound interesting thanks

Michelle

The way I work it is :

I place a house under contract with Dan. It has little to no earnest money down, for say... 45 days.

I then place my signs, clean the house up a bit. Then I have a buyer ( aldo)

Aldo places $1000 earnest money down. My title co ( marg) then does all the title research, ect. And sets the closing.

We meet with Aldo, he pays what I sold the house for. Paying for closing, ect. at 1:00 pm

At 2:00 pm, we meet with Dan. Marg has made a check out to Dan using Aldo's $. She then gives it to Dan and we say good bye.

2:30, Marg then hands me a check for the difference of what I paid Dan and what Aldo paid me and I head for the bank. :smiley9:

When the property is recorded, there is a waranty deed from Dan to me and then from me to Aldo. Therefore I have taken title to the property.

Does this make sense?

Lisa

[Aldo]

Doggone it, Lisa. I asked you to hold that check until Monday.

[REIaddicted]

Doggone it, Lisa. I asked you to hold that check until Monday.
Aldo, Run over to that payday loan center that sits at the corner. I am sure they will help ya out there.... as long as I get my $ I don't care where ya get it! :SM029:
Lisa

[Just Information]

Outstanding Lisa,

I think I will put in my 2 cents on this one also.

Keep in mind that your closing cost will normally be double - but does that really matter - NO as you are using OPM!

Now don't go into the Title Company and say I want an open title close - this is time to play stupid!

I simply tell them what I want, I only deal with large title companies as they have the bonding that I want when I purchase title insurance to cover any errors or omissions.

The last transaction that I dealt with was with one of the nations top title companies and it went like this.

I told them I have a property under contract for purchase and before I could close on the deal I have a buyer who has placed it under contract and I would like to have all this taken care of! Can you handle this? I never get a no on this!

It's all about how you approach things in real estate investing! Many have told me over the years that creative transactions do not work and that may be true for them! Just because something does not work for one does not mean it will not work for another!

[REI-NY]

Ok thanks reiaddicted, I understand it now and thanks to the other comments as well. Great information.

Michelle