Step #4 ....The Closing Process

Well, the time has come where you have put all of the proverbial ducks in a row. You have achieved the impossible. Mountains have been moved. The Red Sea has parted. The earth as you know it has tilted a bit further on its axis, and you're ready to close a deal. 

All of your wine or beer is gone. Your hair has grayed a bit...You feel as though your brain hurts from the over-analysis and over technical mathematical formulas you've read about online. You have run through the numbers for what seems like the one thousandth time. You have decided...TODAY is the day. Let's get this deal done!

Well I appreciate that cautiousness. I commend you for  your dedication to yourself. Your well being is important and without being cautious, you could really get screwed by some jack-leg wholesaler or less than ethical real estate investor on a quest for self preservation. You came to us though... So that's just simply not going to happen. Not today Satan! 

Here is what happens when you have gotten to the point of a deal being ready to close.

When we offer on a property with a purchase agreement and all parties agree to the terms, we then perform our inspection. After that we negotiate further, or stay the course. Or in some cases the deal is dead.

Let's say for this example everything went great and you're feeling froggy, and now you would like to close on the property and move forward to the next steps. Well, let's leap then...Together.

Once we have an executed agreement that agreement is sent to a reputable local title agency who helps make sure you are getting what you paid for. They will run a title search on the property and make sure any money owed is identified and paid off at closing per our purchase agreement. They check for old mortgages, taxes, liens, blight or city/ county related violations resulting in unpaid fines, and all other types of encumbrances or any kind. Once this is done they produce what is called a "Title Commitment". This is what is basically a map of all that is needed to make sure the title is 100% clear when we close.

In most cases the seller is responsible to provide payment for this. Once the deal closes this title commitment gets satisfied, and title insurance is issued. This title insurance policy allows the title company to provide you with a "Warranty Deed". A warranty deed is the only way I will allow a seller to sell, or a buyer to buy.

Essentially, this means that you are protected forever. If after the closing anyone were to come after you for money owed prior to the sale...The title insurance provider would have to defend it and you from any litigation you might face in regard to claims of interest on the deed of your new investment property.

Like full coverage insurance for your car...You're protected. That's it...That simple.

But back to the part where we close....Once title has all of the sale documents in order, title is clear, the commitment is issued, and all parties agree. We would set up the closing.

As a buyer you can sign all of the documents needed remotely from the comfort of your own home or office electronically, via email. Or you can go in person as well if you like. Whatever you want we can oblige.

As a seller you need to appear at closing in person, or a notary would be arranged to meet you in person. Deeds need wet signatures and need to be notarized before they can be legally executed and recorded with the county. There are no exceptions to this rule...None.

Once you send a wire to fund the deal and all of the closing docs are issued by title, reviewed, approved, signed,and delivered. The file is gathered by title. They make copies of every page and give you an envelope with all of the documents for your records. Or you can choose to have it all sent to your email. However you like, consider it done.

The deed will then be sent to the county register of deeds. They will record the deed into public record and send the stamped deed back to title fully executed with the e-record stamp on it.. Then the title company will send you the original stamped deed for your records by mail. This usually takes 1-3 weeks to complete. Then it's officially done...Keep in mind though. The day you funded, signed, and closed with title was the day you became the legal owner. So by the time you get the stamped deed back you will already have started looking for the next deal...RIght?

Each time you do this. It gets easier. Eventually it will be a regular occasion and it will no longer give you the "Feels" anymore. Or maybe it will, but you just won't feel as anxious or nervous anymore. I can't tell you though...Having the right people by your side throughout this process makes all of the difference. Take pleasure in the fact that we look out for you as well as you look out for you. As a team we will guide you from beginning to end. So if someone tries to pull a fast one...It's not going to happen on our watch. 

We have seen it all over the last 15 years. So that experience will leave you in a position to win. Detroit Buy Hold Invest will always stay committed to our clients best interest over our own. You can be assured that dealing with us is the recipe for success.

Feel free to drop your questions or topics if you like. I want to hear your thoughts and questions.