When To Conduct A Title Search For A Real Estate Investment

In the real estate investing methods I teach you, and you’ll want to conduct a title search for your investment when you are going to close.

Before then, you just need to make sure you are completing necessary due diligence by talking with the seller and finding out information about the property.

Here, we will cover how to get a title search when it is time, and what information you should collect before hand.

What is A Title on a Property and How Do I Search for It?

A title gives legal ownership to a piece of real estate. The title holder(s) have the right to sell the property.

You can sometimes do a title search online through the state or through a title search company. The service will scour public records to make sure that the seller is the actual owner of the property. It will also tell you if there are any liens, which is a legal claim against the asset, property restrictions, or other outstanding issues with the ownership.

I suggest doing the title search right before closing. You can also do it when you are getting a purchase and sale agreement signed, although it isn’t necessary this early in the process.

In some states a property title search is free, while in others the cost can range from $50 to $100.

Information to Gather Beforehand

When first meeting with a homeowner, the most important thing to evaluate is their motivation to sell. If someone is highly motivated, they will likely be happy to work with you.

Additional information to get includes:

• The address of the property
• How much the homeowner owes on the loan
• The condition of the property
• The fair market value (FMV) of the home
• How the property compares to others in the area
• Why the person is selling and how quickly they need to close
• What amount the seller would like to get for the home
• What exit strategy you will use

This information is enough to get you through the sales process before you need to get an official title search. I offer more about what information to collect from a homeowner and how to close more real estate investing deals in my coursework and at my live events. Don’t forget about my unlimited funding program, which can help people who have little to no money to start investing.