Deals Gone Bad #13 - Accidentally Buying A Property From Someone Who Didn't Even Own It - Justin Lee Episode 950
In 2010, when the real estate market was still a little wild from the crash, Justin Lee found a great deal from another wholesaler. After a 45-minutes drive to see the property, he felt pretty confident purchasing it outright with cash. The property closed with no hint of trouble, until he went to sell the property and Deutsche Bank stepped in to say that he didn\u2019t even own it.
Scammed out of the cash, Justin had one thing in his corner: he\u2019d purchased title insurance. For a year and a half, the lawyer\u2019s fees piled up as Justin battled with the bank over who actually owned this house. And the title company picked up the bill.
Justin is a huge, huge fan of using title companies to protect his transactions. After nearly losing the entire $270,000 he\u2019d borrowed from a hard money lender, Justin talks about why you should always buy a lender\u2019s and an owner\u2019s policy. Not only does it protect your money, it also relieves you of the months and months of stress, plus the time you might have spent talking to the FBI and law enforcement.
What kind of title company is best for your real estate transaction? That\u2019s going to depend. Some title companies are just better at different kinds of transactions. So protect yourself from scammers by not skipping the title insurance to save a few bucks.
What's Inside:
\u2014How to use the title company to increase your authority with sellers.
\u2014It doesn\u2019t matter if the seller has the deed; put your trust in the title company
\u2014Why Justin doesn\u2019t do tabletop closes anymore, regardless of how trustworthy the other buyer or seller is.