Some people think that being a successful Hawaii real estate investor is all about buying properties at one price and selling them at a higher one, with a few strokes of a hammer in between. While at the most basic level that might be true, there are a lot of steps along the way that can make or break your Hawaii investment deals. You might be able to find plenty of motivated sellers and have a steady stream of buyers ready to go, but if you aren’t working with a competent title & escrow company, you could be wasting your time and maybe even your money.
Just like you interview other people on your team — assistants, realtors, insurance agents, etc. — you should also speak with multiple title companies until you find one that you’re comfortable with. Ask fellow investors or realtors for referrals of title & escrow companies that have experience in a variety of investment structures, not just your basic flips. Make sure that they are ok doing double or simultaneous closings. Not every title company will be comfortable with that — better to find out now than later. You should be completely upfront in explaining your business model or you may end up losing deals at the last minute.
How much are closing costs in Hawaii? Good question! The buyer traditionally pays 40% of the title fees and the seller 60%. The escrow fees are split evenly 50/50. If you’re bringing enough business, you may even be able to negotiate a better rate. They will appreciate the extra business you are giving them and will likely reward you for your continued loyalty.
While the Hawaii title & escrow company you use is important, you should also find the specific representative that you want to work with. Title representatives get paid on the business they bring in, so they are of course very interested in seeing your deals go through properly. Make sure to keep up a great relationship with your representative — they are more important than you may think! A good title rep can save the day if a buyer gets antsy at the closing table.
So go ahead and focus on finding your buyers and sellers, but remember that a successful Hawaii real estate investment team comprises multiple people in a variety of roles. Take the time to find the Hawaii title & escrow company and representative that you want to work with to help you on the road to a successful real estate investment career!