There are a lot of things to consider when deciding which title company is the best fit for you and your book of business. Interestingly, the part where they issue you a title policy and who the underwriter is under which they are writing it (the actual product you are purchasing) is usually at the bottom of list. So, what ARE the top things clients ask (or should be asking) when deciding on an investor friendly title company? Below is a list of questions I have been asked and some that I think should be asked more often when vetting investor-friendly title companies.
- What percentage of their book of business is made up of investor deals? Look for one that has about 70% of the book as investor deals.
The strategy and mindset used by a title closer working a retail deal and an investment deal are totally different. One is very personal and emotionally driven; the other is fast-paced and based on numbers. It’s beneficial to work with a title company who has experience in both, understands the difference and appreciates the importance of this distinction.
A higher percentage of the day being spent closing investment deals also means the title closer sees more, hears more and fixes more common speed bumps that may come up in investor deals between contract and close. That experience can make or break your timeline.
I would suggest that a title company with a minimum 70/30 investor to retail deal ratio for it’s book of business is a good sign that you have a true “investor friendly” title company and aren’t dealing with a wannabe.
- Steer clear of title companies owned by big wholesale brokerages.
This one should pretty obvious. The only thing that could make it easier for your competition (because that is what they are) is if you just went ahead and emailed them your buyer list in a downloadable format to port over to their CRM.
- You need lien searches to come back in 48 hours – max.
Turn times for title searches aren’t quite as pressing when you have a 30 day closing timeframe, but when you need to close in 10 days or less the turn time for searches can kill your deal. Honestly, title searches aren’t usually your problem, it’s the lien searches that can take forever. We can rush a lien search and get it back in 24 hours which is crazy fast and hard to find.
- Don’t use a title company with no land trust experience.
For whatever reason, land trusts still seem to be an illusive tool in the real estate world. Seriously, how have we not all worked with a few land trust deals at this point? If the title company isn’t familiar with land trusts, or if they say they are but still require you to provide them with a copy, they almost certainly don’t meet the criteria of an investor-friendly title company.
- Ask about their personal investment experience.
It’s always nice to know that the person closing your deals understands where you are coming from and how important (and sometimes difficult) it is to keep a deal together. Also doesn’t hurt to know they have real-world experience to help you keep a deal together when things go sideways.