How To Choose The Right Closing Agent

sold Did you know that having the right closing agent can be crucial to the success of your investing business?

Hey Moguls, Cody Sperber here to tell you it’s true. This is one team member whose role should not be minimalized.

Let’s start out by clearly identifying what a closing agent is, then we’ll dive into the requirements of a good closing agent and where to find them.

A closing agent is the person who coordinates several activities necessary to close the sale of your deals.

Your closing agent ensures that all documents and records are completed correctly. The closing agent also makes sure all funds are properly disbursed.

One way of describing the closing agent is as a custodian, and this custodian must be a neutral party. One who is not affiliated with either the buyer or the seller.

Word of Caution: A good closing agent is not easy to find, because as a real estate investor, your business is different than the usual, retail real estate closings. I always advise investors to take good care of their closing agent when they find one who will work with them.

Requirements for a Good Closing Agent

Willing to Double Close

One of the first requirements you are looking for is an agent who is willing to do double closings. (These are also referred to as simultaneous closings.)

You may hit a few brick walls along the way as some closing agents will try to tell you that double closings are illegal. This is simply not true. So your task is to keep searching until you find the one who will work with you on double closes and has had experience with them… which leads me to…

Be Creative

Yet another requirement is that your closing agent understands various creative investing techniques. This might include wrap-around mortgages, subject to transactions and creating notes.

Discounts

The ideal closing agent will allow an investor discount on escrow fees. The typical amount is 20%.

Availability

There will be times when you need questions answered on weekends and after hours…

Your ideal closing agent will be okay with you calling their cell – during reasonable off-work hours (NOT 2 am, folks).

agent Network Liaison

Another wonderful perk of a great closing agent is that they will network for you. This means introducing you to other investors who rank as their top clients.

For me, personally, this has paid off big time in my business over the years.

Where to Find Your Closing Agent

So, if this team member is so important, and has specific criteria, you may be wondering where you’ll find such a person.

Begin with other investors that you network with. They’re probably more than happy to share who they use.

Check the newsletters put out by your local real estate investor association and check out their websites too. There you may find names, phone numbers and websites of investor-friendly closing agents. The best part is that you’ll know they’re accustomed to working with the peculiarities of real estate investors.

The ideal closing agent will have a good strong business, but will never be too busy to give you the attention you need, when you need it.

You’ll want to invest quality time in your search for a good closing agent. Remember that you bring something to the table too…

When all is said and done, you’ll be a great benefit to them because over time you’ll be bringing them a lot of deals to close. Make it your primary goal to be one of their top clients.

Know So, Not Hope So

The details in this lesson should make it clear that this team member is not one you should take for granted. The moment you sit down at the closing table is the moment you want to be confident that everything is in perfect order. (Not that you hope everything is in order.)

Remember, you are in a unique business, and choosing just any closing agent simply will not cut it.