How To Find A Good Closing Attorney or Title Company?

How To Find A Good Closing Attorney or Title Company?

In this article, I wanted to answer two different questions. Whether or not first off, first would you need a real estate attorney or a title company? And second then, how to find real estate attorney or a title company? For those, you don't know basically a title company and attorney do the exact same thing, but the title company just does closings that's it they process closings. Typically, there's a real estate attorney associated with the title company, who reviews documents. When using an attorney it's the actual real estate attorney, who's doing it. In my experience, the prices are relatively the same. I have not seen any great discount by going with a title company and therefore I don't really see the value. Minus, if I'm paying the same amount to be directed at a real estate attorney's office. I have a question I can actually ask a real estate attorney. Not just someone who's processing it. I don't mean to offend everybody with title companies, but it's just my opinion, I've always been with a real estate attorney

The reasoning is it just doesn't make sense to me anything else if I'm sitting at a table and I have a real estate attorney sitting there and I have questions even if they're unrelated to this closing. I got that real estate attorney sitting there to ask that too. I'm paying the same amount of money. It's costing me nothing and I have the extra security of having a real estate attorney there with me. My opinion is if I have the choice between a title company and a real estate attorney, I always opt for the real estate attorney. I think some states a different way they just do everything through title companies. If I'm in Virginia as far as out here I have a choice every state may be different. If you're with a title company in another state I'm sure it's not the end of the world. My personal preference I prefer to go with a real estate attorney. Hopefully, you've got the answer to the first question. Moving towards the second question.

How To Find A Good Closing Attorney or Title Company?
Find A Good Closing Attorney or Title Company

How Do You Find The Real Estate Attorney?

There are a couple of different ways and I'm going to tell you exactly, how I did it. The couple different ways are you go your local real estate investment groups. You can talk to other real estate attorney other investors that you do business with. Peoples you see on the street, buying and selling houses. They basically most professional investors have a real estate attorney or title company that they exclusively use. You're going to ask, there's going to be a few in the area, who specifically do real estate. Mine was the president of my local real estate investors association and that's the best way to find him. When you go to your real estate investors group, there's going to be a few real estate attorneys, who are very active in that community. That's what they do as real estate transactions that are what you want. I don't want someone who's doing drunken driving cases and divorces and then going to slip in a real estate closing. I want someone who, their business is real estate closings and that's what they know inside and out.

After Finding Real Estate Attorney What Is A Next Step?

After you find real estate attorney the next step is, you basically, have to interview them. You have to remember, you're the customer they want your business and you have to ask them the hard questions to find out exactly what they're all about. By those questions I mean there are certain things especially as a wholesaler that we need to know upfront for instance.

Will You Do Double Closings?

Some real estate attorneys absolutely not and it's not illegal at least not in Virginia state. Double closings are perfectly legal but I deal with some real estate attorneys they say, no we don't do it we have to wait for the first one to show up as recorded. Then we can do the second closing a week later. That's not a double closing, I want somebody who I can do one closing right here at this table and turn right around and do the second closing of me selling it. But not just will they do a double closing are they going to make me fund it. Typically, if it's a mortgage involved if my buyers using a mortgage. Then they're going to force me to fund it, and that's just the law. Because they don't want this person's mortgage the bank's money being used to fund something other than that purchase. 

If it's a cash buyer and I have a seller that owns the house owns it free and clear however they're paying for it doesn't matter. I want to make sure you're not going to require me to bring the money and my buyer to bring the money. Then pay the buyer and then pay me and then I have to take out the money for a day. And then wait a day to get paid back. The way my real estate attorney works at is he will write up a note, basically from my buyer saying. He's loaning me the money exactly what's on my HUD form I buy. 

He's loaning it to me for one day and it's getting paid back right on the HUD, Where he's doing the purchase. That's one thing that to me is very important to make sure upfront that your real estate attorney will do. Because if your real estate attorney won't do double closings or won't allow you to do them non-funded. If you don't have that cash you're done, you can't do deals or you're going to have to borrow money. Which there are lenders, who will loan you the money for the day. But typically they'll charge you about a $1000. Why spend it if you don't have to? If you just have a real estate attorney who's willing to do with it.

If Your Seller Side Only HUD

This has been crucial for me for not double closing. If I have a deal that I can do an assignment on. The only reason I used to double close was to protect my buyers and sellers from seeing all the information on the HUD. I didn't want somebody to see “oh you're making 30 grand” and then flip out and say “I'm not signing”. With the seller side only HUD. The seller only sees the information that pertains to them and the buyer only sees the information that pertains to them. It seems common sense that there's no reason everybody has to see the other side HUD. But you'd be surprised, some real estate attorneys we go to say, “Nope not doing”, it we have two full disclose everything”. That's not the reality you do not have to disclose anything that does not pertain to them. Some real estate attorneys won't do it. Make sure you ask your real estate attorney is, he willing to do what sells us I only HUD?

Writing in Contract You Going to Close at Specific Real estate attorney

Another thing is, I always put in writing my contract it says, we're going to close at this specific real estate attorney. When I'm selling to professional investors, most of them say the exact same thing. They say, “Well I closed all my deals at XYZ, I'm not buying it anywhere else that's the only place I closed”. Therefore I still bring my seller to my real estate attorney. Because I like to be in the loop and be able to help control the deal, but all the money for the real estate attorney or the title company is made on the buyer side. You going to make sure, your real estate attorney is not going to become disgruntled if you're bringing two three five deals and they're only getting the seller side. 

Because there's not much money on the seller side, they get a $350 fee and that's pretty much it. All the money is made on the buyer side, for the title insurance and all their closing expenses. You want to make sure that this real estate attorney sees a bigger picture and is an ingredient. Not going to say, “No we don't want it unless we get both sides” I've had it believing it out, I've had real estate attorneys tell me, why don't you just bring that to let the other real estate attorney do both sides, makes no sense to me. 

Why throw away my business but they don't want to do the work and then only make the small amount of money. You want to make sure you find a real estate attorney, who's willing to work with you on that as well. You're not always going to get both sides. We're investors we do volume business. It's still worth it for the real estate attorney to work with us and take it.

What A Real Estate Attorney Fees?

It's not the most important thing. Don't base your decisions on real estate attorney fees. I want you to make sure you have upfront because if you don't ask up front when it comes time to closing. They could put anything they want on that paper. Upfront I want to know, how much is my settlement fee? How much is basically every fee that they're going to throw at you I want to know upfront? You can negotiate fees every fee is negotiable other than taxes and recording fees and stuff that goes to the city. Every other fee is negotiable I've even negotiated FedEx fees. 

They tell me its 25 bucks and we'll walk it down to 15 bucks everybody's happy. A dollar saved is a dollar and everything's negotiable however don't think just because someone else says, “oh I'll do it for 125 bucks” meanwhile your real estate attorneys 350, that's a better deal. You always got to be clear on cost versus value. I don't always go with the cheapest, once I have the real estate attorney I want. I will try and negotiate and still stay with that real estate attorney but I'm not just going to leave because I have somebody offering me a better price. I do not make any decisions and I hope you don't in this business strictly based on price.

The Real Estate Attorney Ability To Handle You

I want to make sure that the real estate attorney has the ability to handle me. By that I mean, I need to have a processor generally, it's a paralegal you're dealing with up until the closing. I want to make sure that they have time, they answer my phone calls, and they help me then. They don't always put me through to voicemail and then call me back a week later, and I've had that situation. I got to tell you the person I'm with now, I've only been with this one from maybe four years now but they are ideal. 

If I send an email right now and ask a question. Thirty seconds later I get an email back with an answer and that is the service that I need. I don't want to have somebody say Oh put them through the voicemail we'll take care of them later, I need the service. That's another thing you're going to ask is, am I going to get service is there a paralegal or whoever's going to be taking care of me are they able to take care of me.

These are important things you need to know. If you get started as done right here you have your first contract it's not the end of the world. If you don't find you a permanent real estate attorney or title company right now, you can go to any title company and get this deal done. It should be part of your team you should have a good real estate attorney or title company. It's a process that you should start now get working on and when you find the right one you'll know it. 

The big difference is when you have a good one they're going to appreciate and want your business. They're going to thank you every time you bring the business in and that is a vital importance. You're bringing a lot of business annually to a title company. You want to make sure they appreciate you, not you're the customer. Make sure that, they treat you as such. 

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