|What’s Your Question for the M.O.B.?||Hi Traci, I recently came across property MOB and have learned so much from you. Thank you for telling like it is! My question is – After offer is accepted and you have it locked in, when should you pull title? Before finding the end buyer or after? Thanks again, Rafael (Soon to be MOBSTER)|
Rafael-Once you have an offer accepted by the seller, you should send the contract to a title company/closing attorney immediately. You’ll want to find out if the property has a marketable title. One of the worst things is getting a good deal on a house, finding a cash buyer, and then discovering that there are jugements against the seller, or other issues. That’s frustrating as hell!!!!
Some people would say not to start marketing the house for a buyer until you have clear title, but I don’t do that. I put it in my pipeline as soon as I have signatures, and order title immediately. It takes 3 days (sometimes 7 days) to get title work back, so I don’t want to waste any of my contract time waiting for that. Statistically speaking, only a small percentage of properties have issues that cant be resolved. If you already have a buyer, and then find out that you cant sell the house, it’s easy. Just give the buyer his binder deposit back and sell him a different house. 😉
P.S. I saw that you became a MOBSTER! Congratulations. We’ll make a bad Ass Investor out of you.