Cindi Monaco Presentation.mp3

Transcription

1 Cindi Monaco Presentation.mp3 [Beginning of Recorded Material] [00:00:00.00] [music] [00:00:35.00] I'm going to tell you a little bit about me. I started in the title insurance industry right out of high school and I had no clue what a title company was, what it's purpose was, but I found it extremely fascinating because I could look up and find out who my neighbors were and what they paid for their house and when they bought it and how much they owed on it and if they were behind in payments, if they paid their taxes... It was just fascinating to me. I started thinking, how am I going to make this work for me? I tried to figure out some ways to use that information to buy my own properties. At 21 I had two investment properties and from then on, I just continued, and I've invested the rest of my life and it's been a really great thing. Having the title company resources have been amazing because as lot of you probably know in title you can get all kinds of information. Steve kind of talked about it a little bit as far as door knocking. Finding properties through door knocking is amazing. Being a title rep, I've gone and I've door knocked with a lot of my real estate agents and he is correct. They tell you everything. They tell you who's getting a divorce, who's had an affair, [and] who's moving. They tell you everything. If you're really looking for deals, go door knocking. Just start walking areas. You'll find them. I want to start out by telling you guys today about free apps for your phone that every investor needs. The first one is called Chicago Agent 3.0. This is the real estate's number one net sheet and closing costs app. On this you can get instant net sheets, closing costs estimates, instant title and escrow fees, [and] local tax rates. You can the results to your clients. You know exactly what you'll net when selling a piece of property. You'll know exactly what it takes to purchase this piece of property. This app is just incredible. It figures out your title insurance, it figures out your prorated taxes and insurance and it'll tell you what your payment's going to be, what you need to bring into escrow. It's incredible. It's a great app. The next one I'm going to tell you about is called Chicago Now. That's an app where you can get... Just to let you guys know, you can always me, and I will send you all this information along with lead generation, all kinds of really good valuable tools to help you. Chicago Title Now, that app... you can know right now as you're walking the streets [and] door knocking, you can find out the mailing address, the property address, whether it is owner occupied or if it's rented. You can find out all the property stats. The bedrooms, bathrooms, square footage, the year built. You can even get the document. It doesn't give you the whole chain of title, but it'll give you the grant deed, it'll give you the deed of trust. If they are in default, it'll give you the notice of default or the notice of trustee sale. This is a valuable app to have. It'll also give you your comparable sales in the area along with a map. 1

2 The next one is called Chicago Title Walking Farm. What this does is you can put in an address and you can take your finger and just outline the parameters of the property. What it'll do is in an excel spreadsheet, it'll show you who's renting there and who owns, and it'll give you all their information so that you'll be able to contact them. This is a great app. You guys need to have this one, these three apps. I will if everybody gives me their [ ] or takes my card, s me, I'll you all this information. [00:06:42.13] Another one that you need is Chicago Title. It's the premier service website. There are two websites I'm going to be talking to you about today, this being one of them. On this you can get leads. It's from a company called Black Knight. I don't know if you've heard of Black Knight, but you can get leads from this company. You can get probate, you can get divorce leads, you can get for sale by owners, expired listings. If you want to search empty nesters and maybe look at contacting some people that need to downsize. It's endless on the information that you can get off of this and what you're going do on this is you're going to go on, sign up, fill out a little application, [and] you'll be given a login and password. At that point then you can access this website which is called Premier Services, where they do have the lead generation programs and they also have any kind of property information that you're looking for. You can access grant deeds. You can access the homesteads, just all kinds of things off of this website. Another valuable tool for you guys is if you're out walking the streets and it's a Saturday and you need to know right away [if] this property is in default and you can't find it and you just can't get the information. Chicago Title Chat [is] available. It's a customer service that's available on weekends and at night, [it's] a live customer service person. You'll be ing a live customer service person and they'll send you back any kind of documents or give you any kind of information that you need. This is called Chicago Title Chat and you can access it off of the Premier Services. How many of you know about interim binders? Does anybody know about a binder? An interim binder, it saved short term investors money. Investors who plan to sell their property within a short period of time should consider the interim binder for substantial savings on title insurance premiums. The binder is not in itself a policy of title insurance, but it is interim binder issued on the property. When issued, however it binds Chicago title, if requested within the within the two-year period to ensure a title policy of title insurance. The fee is a mere 10 percent of the basic title fee to the requesting party. When the deed of the final purchase is recorded, the interim binder is exercised, and a policy of title insurance is issued to the final purchaser. The only additional fee at this time would be the liability coverage based upon the difference between the original selling price and the selling price to the final buyer. It's going to give you a little formula at the bottom. All of these are in your book. This is a huge savings. If you know that you're going to purchase a property and flip it in two years, you need to request a binder exchanges are fabulous to save on taxes exchange focuses solely on 1031 tax deferred exchange as the national leader in 1031 exchange service as a Fidelity National Financial Company. The 1031 exchange has financial assurance [and] the security expertise essential to provide to protect the funds and provide 2

3 answers and guidance throughout the exchange process. This is great if you have an investment property that you're going to... it can be vacant land that you can exchange into apartment buildings. As long as it's like for like you can transfer that without having to pay capital gains on any of the money through a 1031 exchange. [00:11:40.14] Another website I want to talk to you guys about is Easy to Read Comps. This is everything that is and is not reported to the MLS. Any time there's FSBOs for sale by owner or private party transfers, this will be on our website that's called Easy to Read Comps and what it does is it goes through city by city and you can just... It's a great resource to go to if you're in need of comps and you just aren't able to find what you need. Check these out. They're amazing. You can also go back two or three years if you ever need to see what a property sold for two or three years prior. It's a great website. Lastly, I want to tell you about Chicago Title Connection. This is a fantastic website. It's updated every two weeks. What this website consists of is every kind of property information. Let's say you are trying to figure out how [to] hold title. As a realtor or as an escrow company, they can advise you on how to hold title. There are tax ramifications on the way that you hold title. What you can do is come to this website, click on Eight Common Ways to Hold Title, read about them and figure out which way is best for you. Also, on this website are home sales reports. It gives every single city... DHS, Indio, Coachella, Riverside, whatever... and what it does is it'll show you how many houses sold last month that were in the price range of a $100,000 to $150,000 or $200,000 to $250,000 and it'll tell you the price per square foot. Also, on this website is another [that's] called the Home Market Value. What that does is it gives you how many houses in Coachella sold that were short sells, or how many sold that were REOs, or how many sold that were regular sales, how many condos sold. It's another great tool. We also have a Spanish site on this website. Everything is done in Spanish. It explains what [inaudible] says, what title does, what escrow does. Eight common Ways to Hold Title, what are the benefits of having a trust... The information on it is just endless. You [also] can get your confirmation of recording on this website. If your escrow officer happened to leave and you didn't get confirmation, it was 5:30 Friday night, you can go to this website and you can find confirmation. This is another great tool. You can also access blank documents on here. If you need a copy of a grant deed or a deed of trust or a homestead, you can get this on this website. [00:15:29.22] I want to go into a little bit about what some of the things that title insurance companies do that are behind the scenes that a lot of times people just don't know. They don't realize. Audience Question: [00:15:53.21] I just want to know whether all the apps and information you gave so far works for residential as well as commercial or is it geared primarily towards residential? [00:16:02.17] They're primarily for residential. Some things that title companies do that a lot of times can be issues for us is vesting. People will add people to their title all the time and they haven't gotten the person insured, they just add them to the title. What happens is it creates basically a cloud on title and then we have to run around and try and get it resolved. When you add somebody onto your title, there's a couple of things. First of all, you're adding them on and you don't know if 3

4 they have an IRS tax lien. You don't know if they have a judgment, you don't know what they have against them. The minute you add them on, whatever their problem is, whether it's a tax lien or a judgment, it's added onto your property. Now if you want to go and try and sell your property, you have to get that cleaned up. That's the first thing about adding somebody on title. Something else, a lot of times what people do is they just will add their brother or their sister or whoever on title. They don't get it insured, they just add them on. As the title company, what we do, and it'll be right in your prelim, it'll give you the vesting and it'll say subject to item number 15. Item Number 15 is saying we need a signature affidavit from the person who put the other person on title. We need to know, because there was no money transferred, we need to know did they really intend to put this person on title and did they really intend to deed out? We just had a pretty big lawsuit over that. It was 10 years old [they] can't find the person, they went to Mexico. We can't find them. The agents get upset because they go we can't find them. They're gone. We can't find them. A lot of times we'll go to the underwriter and say, "Will you please waive this for us?" and they'll waive it. Well, we just got hit with a big lawsuit on somebody who came back and said, "I didn't know that they were going to go and sell the property and make all this money" even though they signed off, they gave it to this person. That's why we ask for signature affidavit's when somebody has been added on to title and it hasn't been insured. Audience Question: [00:18:56.20] In your why do you find that people are adding people on title or doing quick [limb] deeds? All that stuff. [00:19:10.01] They do it for a multiple amount of reasons. Sometimes what happens is somebody can't qualify so they put their mom and dad on or somebody has a judgment and they think, I've got a judgment so I'm going to deed it to this guy and then the judgment, we won't have a problem with title because the judgments against this guy. It doesn't work like that. Sometimes they think this is probably the biggest... They think that we can't afford a trust, so we're just going to add this person on the title. It's done constantly. I'll tell you about a story, and this was a real estate agent, this is just happened, and he bought a property. It was vacant land and he bought a property, just exchanged money, didn't have any insurance, so the person he bought it from bought it from somebody else so there were three deeds that weren't insured. This guy gives it to this guy and he gives it to him as a married man as a sole and separate property. Well, it's a community state so of course we have to find out where did the wife's interest go. We have to get number one, her a [quick claim off]. Then we have to get him to do a signature affidavit. We have to get his wife to [quick claim off], the second person, he had to get signature affidavit. Then the third person who was the real estate agent, he in turn had to get his wife to [quick claim off] and also get the signature from the prior person. People get upset about it and they get mad, but the but the thing is we're ensuring that the title is clear [and] that it's gone the way that it should and that everybody is aware that there deeding off their interest with no money exchanged. In this case there was money exchanged, but in a lot of cases there is not. That's the reason when you add somebody on you better hope and pray that they don't have anything attached to them because it's now attached to the property. Audience Question: [00:21:42.08] Is there any basis for that lawsuit, assuming that everything's listed on the contract there, besides the fact that they're annoyed at you and want to sue 4

5 you? Like is there any legal justification for that? That it wouldn't be thrown out in court? [00:21:55.10] Well, number one, there wasn't a contract, it was just between parties. It was just between parties. Anybody can [quick claim] to anybody and the thing about it is it can be fraud. We don't know that the person really did in turn sign. A lot of times we'll ask for the notary book, but we also don't know if that notary was in cahoots with them. Audience Question: [00:22:30.02] Hi. I wanted to ask in regard to sometimes we're dealing with sticky situations where you've got a whole bunch of wild deeds and I know that sometimes a potential solution even though it's semi expensive is getting a bond. So, I wanted to see if you could touch on that. [00:22:48.21] Yes. Bonds are typically for deeds of trust that, for instance, on a private [benny]. So, somebody is the private [benny], they're loaning the money and all of a sudden, it's 20 years later they paid it off, but there was never a reconveyance. There was never a reconveyance done so as the title company, we show only what's of record. We have to show that deed of trust. We go to the seller, and we say "Do you have any proof that you paid this off at all? Do you have any kind of proof?" They [will] give us receipts. In that case we can refer them to a bonding company. The bonding company will bond around it, but bonding around it very expensive. A lot of times if you don't have some kind of proof, the bonding company won't do it. My suggestion is if you ever borrow money, even from a regular bank institution, always make sure that you get that reconveyance recorded. Really important, especially on a private beneficiary because they're almost impossible to find sometimes. I want to tell you one more little story about something I'm dealing with right now. There is a deal that we in escrow. It's vacant land. It was a mom and a dad way back when that purchased this property and the dad passes away. There's the wife, she deeds, and she does this all on her own, or I don't know who did it for her, but it wasn't done through an escrow and title. She needs the son and his and his wife, number one, the property was in the trust and she dated at as a widow, as her sole and separate property. That's the first thing that you know is wrong. The second thing is on the legal descriptions, it was a meets and bounds description. The 200 feet of the northwest corner of the southwest corner of blah, blah, blah... All they put for the legal description was a portion of the northwest corner. That deed is no good. We can't find the mother, they think she went to the Philippines and died. Cannot find her anywhere. The property is sitting in limbo. They're going to have to go to court and see what they can do. Just FYI, whenever you're doing any kind of transfers like that, please go to a title and escrow company to have it done right so that there's not issues. Audience Question: [00:26:10.12] I hear a lot of single family talk or regular houses... I want to see how that portrays to mobile homes. I'm not using a title company. I usually just go to the housing department and do it myself. What benefits, going with the title company, would I have compared to just doing it myself? [00:26:33.15] Well you aren't going to get title if the trailer or mobile home is not on a permanent foundation. 5

6 Audience Question: [00:26:43.19] Yes, it's personal property. [00:26:46.03] It wouldn't go. But, I think mobile homes are great investment. I really do. I think they're a good investment on the land that you own. As long as you own the land. Audience Question: [00:27:04.18] I have a situation that there's no title to the property. It's been sold five times with bill of sales. I'm considering doing a bond. There's a death certificate for the unit and I'm speaking with the housing department. They're saying I can get titled that way. I don't know if you have any suggestions? [00:27:27.12] Let me look at it and I'll tell you what we can figure out. If any of you would like to get signed up on our websites and with our apps, please let me know. They are definitely very beneficial when you are looking for homes and like I said, we've also got a lot of lead generation programs too that are great. Opportunity is everywhere. I totally agree with [Steve Dornoch]. Audience Question: [00:28:06.13] What's the difference between what you've shown us in The apps and [00:28:18.16] is a local website. I don't know that they will be on that. The apps will be on that. The best thing to do, you can even go to my website, Monaco.com and everything's on my website. Audience Question: [00:28:45.09] Cindi, do we need to check in with you by just to be able to get all these apps? [00:28:50.01] You can get some of them on your own. One of them, which will give you a lot of different information, you need to fill out a little application. Just me and I'll get you all the info. Audience Question: [00:29:06.21] I can search properties all over the US? [00:29:13.09] Yes. [00:29:28.24] [background talk] [inaudible] Andy Teasley: [00:29:41.25] Did you mention the California documents page? Which is probably the thing that has the most wear from Chicago Title I use. [00:29:48.10] Where you can get all the blank documents? Yes, you can get blank documents. You can get a blank grant deed, a blank note, deed of trust, blank homestead, blank affidavit. There's a ton and you can get that right on my website Monaco.com. It'll say blank documents and you can get it from there. Audience Question: [00:30:20.22] Can you quickly just go over the insurance and how that works? If things go bad from the title insurance standpoint? Do you get full coverage on the purchase of the property or? 6

7 [00:30:32.00] It all depends on what the issue is. It really just depends on what the issue is. Audience Question: [00:30:45.10] For preliminary reports, there's the charge. Is there a charge? And if I went [inaudible] a few zip codes, would there be a charge for that? [00:30:54.07] For you no [laughter] The deal is this. We'll give you all the farms you want for free. Prelims normally are about $500. If there's one that you just have to have, call me. Audience Question: [00:31:24.22] Well, I was actually going to share in regard to your question, I had a client who had to file claim. It was not with Chicago Title by the way. The short version is we knew from the prelim and it had been disclosed to us that the property was going to go to tax auction. The short version is we were not allowed to close even though we had the receipts that we had paid off a baby mama and we had to track down the baby mama and it extended our escrow about another week to get her to sign off on it and from their escrow said, okay, everything's done. They put everything on the head. We paid off all the taxes and then I think it was about a week and a half later, the private money lender that actually loaned the money to the gentleman that bought the property said, didn't we just do a loan on this? Why is it on the auction sheet? And somebody bid, and somebody took it and that client had to file a claim. It took a couple of months, several months, but they did get their property back. The title insurance did have to pay, and they had to indemnify basically my client to hold back ownership. Had he not had title insurance, it would have been catastrophic. [00:32:37.06] It really does depend on the circumstance. For instance, one of the claims that we had, it was on a short sell back in the day and the second somehow was missed. Chicago Title paid for the paid the second so that the second would go away. Do you get a whole house for free? No, but they take care of what needs to be taken care of. It just depends on what the situation is. I have another one where we closed on it, it was up in Whitewater and it was landlocked, but it was right in the prelim and the people that purchased it, he was a broker, she was an agent... It was in the prelim. They filed a claim. What's going to happen there? I don't know, but it was right in the prelim then it was landlocked. So, I don't know. Are there any other questions? Thank you all very much and thank you Andy. [End of Recorded Material] 7