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’t even own it.Scammed out of the cash, Justin had one thing in his corner: he’d purchased title insurance. For a year and a half, the lawyer’s 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’d borrowed from a hard money lender, Justin talks about why you should always buy a lender’s and an owner’s 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’s 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:—How to use the title company to increase your authority with sellers.—It doesn’t matter if the seller has the deed; put your trust in the title company—Why Justin doesn’t do tabletop closes anymore, regardless of how trustworthy the other buyer or seller is.