Title Searching and Other Research

Hello everyone,
Me and my partner have our eyes on a property that we think is a sweet deal. The seller/manager lives out of state and has obtained the properties through quit claim deeds. He told us before we make an offer make sure we do our homework because of the possibility of something being attached to the property. We have been reading about the risk associated with quit claim deeds, like someone might have no interest in the property, so a thorough check is necessary. Basically we want to make sure we are digging deep enough to find the proper information. We have looked on the recorder of deeds website to see activity but the last record was from two years ago. Any suggestions on which way to go?
Thanks

I have just completed my first rehab project where I made 30,000 and my mentor has tried to explain to me the short term capital gain tax ramifications that I will receive as a result of this. It is all clear as mud to me because I have never done my own taxes yet. (I am only 22) He said I could face up to 50% taxation on the profit, which is unbelievable to me. He also presented the idea of a 1031 exchange but I do not have another deal lined up just yet. Do you seasoned rehabbers have any way around this or any solutions to offer?

Ok I have decided it's worth it to go throug the court listings one at a time. kinda relaxing. one thing is driving me bonkers. what on earth are lot numbers? and where do I find a map for them? lot 1, block 1, new city block 123456 for example.
any assistance would be great. thanks.

Here is the idea. My grandmother has a duplex that she has owned for 38 years. Free and clear since 1982. I help her find and manage tenants currently and she talks about me buying it from her. Here is the problem with me buying it, she wants $140K for the porperty. No cashflow at that price and it is currently assessed at $85K. I offer to buy it for $60K with financing form my Credit Union, I can get loan for 80% of the assessed value in Scott County Iowa. At $60K purchase price I can gain control of the property for NO MONEY DOWN!!! But, Grandma will not sell for that amount.

Due to experience I have had in the legal arena, not as an attorney, but as a participant, I wanted to share some information on doing due diligence when doing real estate deals.

I was involved a couple years ago in a deal where the presenter ended up being a shady character and had stolen thousands of dollars from investors he had been working with. I didn't know it at the time of course, but by doing business with this individual, it compromised my financial safety, as well as that of some of my partners and personal contacts. Therefore, I have done extensive research and worked with state authorities on how to do this due diligence.

I'm sure most everybody knows this already, but just a reminder. If you are trying to research a property, one of the simplest ways to find information is to just plain Google the address. It'll bring up any ad or legal classified, such as a sheriff's sale scheduled, posted in your local online newspaper. You never know what you'll find.

Rina

I have a question on using the FMV tools or Real Estate Analysis Systems. After finding a home I run the address through the Real Estate Analysis System here on DG then use two more and usually they all come up with around the same price.

Based on the changes to the RESPA that came into effect last year, there are a few more changes that will be taking place January 1, 2010. One of the biggest changes is the Good Faith Estimate and the HUD-1 that goes along with it.

A title company is a business firm that examines real property titles, reports its findings as to the legal status of such titles, and issues insurance policies to indemnify the owner and lender against financial loss resulting from unknown title defects or prior claims against the property. An escrow company is a firm that acts as a neutral third party to ensure that all conditions established by the buyer, seller and lender in a real estate transaction are met. In many cases, you will find that a title or escrow company can handle the escrow account for any real estate transactions.

You may have heard of simos, simultaneous closings, or double closings. What are they? Well they are a fast cash technique that many investors have used to quickly acquire and flip properties at the closing table.