Is Your Wholesaling Business Suffering from THIS Simple Mistake?

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If you’re new to my channel my name is RJ Bates III. Myself and my partner Cassi DeHaas are the founders of Titanium Investments.

We are nationwide virtual wholesalers and on this channel we share EVERYTHING that we do inside our business. So if you’re looking to close more deals - at higher assignments - anywhere in the country… You’re in the right place.

Who is Titanium Investments and What Have We Accomplished?

Over 10 years in the real estate investing business
Closed deals in all 50 states
​Owned rentals in 12 states
​Flipped houses in 11 states
​Closed on over 2,000 properties
​125 contracts in 50 days (all live on YouTube)
​Back to back Closers Olympics Champion
Trained thousands of wholesalers to close more deals

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With over 2,000 Videos, this is the #1 channel on YouTube for all things Virtual Wholesaling. SUBSCRIBE NOW!    https://www.youtube.com/@RJBatesIII

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Chapters

• 0:00 The Title Company Misconception
• 1:44 Taking Control of Your Deal
• 3:38 Communication with Title Companies
• 6:45 Managing Buyer and Seller Communications
• 9:42 Why Transaction Coordinators Are Essential
• 11:59 Passing TC Fees to Buyers

Transcript

Speaker 1: 0:10

Today we're going to be talking about one of the biggest mistakes newer wholesalers make, which is acting like a title company, is a transaction coordinator for your deal and they're going to do all the heavy lifting and all of the communicating with the rest of your transaction. Now, going into the real estate industry, if you don't have any previous experience, I completely understand why you would believe this and feel this way. Going into a transaction, we have this third party, unbiased company that's going to come in and they're going to make sure that my deal makes it to the closing table. They're going to communicate with the buyer and the seller and with me, and we're going to get the settlement statement in plenty of time, and they're going to ask me for my wiring instructions and do all these things. That's not the case, see, you have to understand that when you contract the deal, you are in control of that deal moving forward and it is your responsibility to make sure that it makes it to the closing table. This is one of the reasons why we are so fond of working with a transaction coordination company like Easy REI Closings, and we have even introduced them as a larger part of Titanium University, where each and every student that comes into Titanium University now has a free transaction coordination service from easy rei closings. Because we understand why you would have this thought that the title company is going to do all this heavy lifting and I'll save the money from using a transaction coordinator. Right, I'll just, I'll lean on the title company.

Speaker 1: 2:04

Here's what I want you to understand. After doing thousands of transactions and dealing with closing attorneys and title companies in all 50 states, one thing that I've learned is they are overwhelmed, more than likely. It is not their job to be your transaction coordinator and, quite frankly, they don't even have all the information necessary to be a transaction coordinator. They don't understand the seller's situation. You do. It's your responsibility to make sure that you take care of your deal and it gets to the finish line. Now there's things that we don't know how to fix or do, which is what we rely on the title company, but it's your direct line of communication. So, just as much as we talk about communication with sellers and asking the right questions, we need to make sure that when we get a property under contract, the communication is stellar from that point out, with all parties Going back to the wholesale and red flag series, where I talked about.

Speaker 1: 3:11

Communication across the board is such a red flag if it lacks either from a seller or a buyer, or even the title company. The way that you know that communication is lacking is because you are always the point of contact and you're initiating that communication. So let's talk about the moment that we get a property on a contract. What do we do? We open title. You should have an email that you are going to send out to the title company and you open up an email chain that is now privately your line of communication with just you and the title company. You should also have an email chain where you introduce the seller to the title company. This should be one of the first things that you do, because it immediately proves that this is a legitimate contract and you are serious about closing this deal with the seller. It immediately will remove seller remorse and any fear that they might have with doing this transaction with you.

Speaker 1: 4:19

The other reason why this is important is because the title company is going to need to get the seller's information so then they can start clearing title. Now what does that mean? Once you open title, title is then going to go get a title commitment. That commitment will have any liens or encumbrances on the property. More than likely it'll be something like the mortgage or back taxes or some sort of lien that's been filed on the property, or even maybe a memorandum. These are things that would have to be cleared and we would have to get payoffs in order to get it clear. To close, so the quicker that we can provide the information to the title company and they can start working on that. That is their job, that is their responsibility.

Speaker 1: 5:09

So you want to start the line of communication between yourself and the seller and the title company, as well as yourself and the title company. Once you've opened up title, you should ask them how long do you anticipate it would take for the title commitment to come back? Once the title commitment comes back, is there anything that you see that we need to do to clear title, to have a clear to close? Now there's times where maybe it would have to be something as simple as an affidavit of airship. If you don't know how to handle that, you would ask the title company how do we handle this situation? What do you need from me? But again, we don't want to rely on the title company to lead us and tell us, Just like when we are talking to a seller during the closers formula. We get our answers from the great questions that we ask. Your communication with the title company should be daily. Now there's times where title companies will say, hey, I don't need you to badger me, I don't need you to ask me for updates every single day and you don't need to be doing this. They need to be questions that actually move the needle forward. What needs to be done so we can move to the next step. That is where your communication should be lying with the title company each and every day.

Speaker 1: 6:32

Now, once you actually find an end buyer for this deal and you get a signed assignment, what do you have to do? You have to email title company and introduce them with your buyer. You have to do. You have to email title company and introduce them with your buyer. So each transaction should have three email chains. Now you have introduced the buyer, you should ask the title company for wiring instructions for the non-refundable earnest money deposit. This is imperative because now, in your private email chain, you want to make sure that you receive verification that the non-refundable earnest money has been deposited. This is important because, as a wholesaler, you never want to stop marketing your deal until you have a signed assignment and non-refundable earnest money deposited unrefundable earnest money deposited.

Speaker 1: 7:28

Once that is done, now you are focused on getting it clear to close and getting everything scheduled. Now understand how I just said that you are focused on making sure everything is unclear to close and everything is scheduled. If you rely on the title company or the closing attorney to reach out to the seller, reach out to the buyer, schedule everything and you don't even stay in communication about them doing that, there's going to be red flags that are raised either from the buyer or the seller, because the title company is busy, they have a lot of transactions and, quite frankly, your deal is not their priority, it's your priority. I have witnessed this time and time again. Title companies prioritize the squeakiest wheel. There will be times where people will get frustrated, but if you have not built that relationship and that trust factor with that title company, it is more than likely your deal will get put on the back burner in comparison to if you are constantly communicating and pushing the needle forward.

Speaker 1: 8:33

So, once you have the clear to close, ask the seller would you like to go into the title company or would you like a mobile notary schedule. Oh, you would like a mobile notary when would you like that schedule for? Let the title company know the seller on this transaction would like a mobile notary at this address At that point in time. They would schedule that and then you would follow up to verify that the mobile notary has been scheduled With the buyer. Same thing Would you like to go into the title company or would you like to schedule a mobile notary? Awesome, get that scheduled. Reach out to the title company and ask how can I get you my wiring instructions, my disbursement instructions?

Speaker 1: 9:16

For us we have a templated form that we just change the address and the dollar amount of what our anticipated assignment fee is and we send that in days in advance. We don't wait. We initiate that communication. We are in charge of our destiny and making sure that our deal, which is our priority, gets to the finish line and everything is taken care of. Three days before closing we are asking the title companies do you have the HUD drafted and can you send that over for everybody to review? We want the seller to be able to review that settlement statement, we want the buyer and we want, of course, ourselves to make sure that there's nothing that pops up, because there will be times where you won't get a HUD or settlement statement until the day of or the day before, and there's times where title companies make mistakes. Maybe the payoff for the mortgage is more than the seller anticipated. Maybe there's times where title companies make mistakes. Maybe the payoff for the mortgage is more than the seller anticipated. Maybe there's a lien that they didn't know about. Maybe the lender for the buyer has additional junk fees on there that they didn't know about. We want to make sure that everybody has time to rectify each and every dollar and cent that's going into this transaction so it doesn't impact on closing date.

Speaker 1: 10:37

This is our job, it's our responsibility, not the title company. So if you're sitting back and you're waiting on them to do the heavy lifting, you will be waiting for quite some time and I'm here to tell you you will be disappointed. So for newer wholesalers, I recommend if this does not sound like something that you want to take on, because it can be time consuming and it can also come up with issues. There's a title issue that has to be cleared and you don't know how to do it and you don't have someone on your team that knows how to handle these situations. It can kill your deal or it can at least elongate the process to where you have to bring someone in that knows how to handle that situation. So I recommend that each and every person use a transaction coordinator who does all this legwork for you. Quite frankly, majority of us are not strong in this area. We are strong in the lead generation, the closing, company underwriting and dispositions.

Speaker 1: 11:41

Transaction coordination is not a fun topic.

Speaker 1: 11:44

Most of the time people's eyes glaze over In fact, yours probably already has inside of this video. So what you need to do is hire a transaction coordinator for each of your deals. Here's how you do this without it costing you your hard-earned money. When you go to market your deal for dispositions, say, buyer is to pay all closing costs plus TC fees Pass the transaction coordination fees on to your buyer. This is very commonplace throughout the industry. Don't be alarmed by it.

Speaker 1: 12:19

Most of the time when wholesalers start this, they're very nervous that the buyers are going to object to this. But they won't. And this way you're getting a transaction coordinator and you're not even having to pay for it. Pass that expense on to your end buyer. So if you're interested in finding out about what I consider the best transaction coordinator in the industry. Go to titaniumtccom and work with the team over at Easy REI Closings. All right, guys, that's our episode. Let me know if you agree or disagree about title companies doing the heavy lifting and whether or not you should use a transaction coordinator in your wholesale business. Show me some love, like today's video, and we'll see you guys tomorrow.