What's An Investor Friendly Title Company?

The term investor friendly is thrown around a lot in the real estate world. "Lesser experienced" agents may automatically attach a negative connotation to the term not understanding it's actually a very specialized knowledge and skill set assigned to title companies, attorneys, lenders, accountants  and  any other vendor that services the real estate world. The vendor that can really make or break your deal is a title company. 

So what does it mean for a title company to be "investor friendly"? 

The short answer is that an investor friendly title company won't blow up your deal and knows how to hold it together. They think outside of the box. They speak your lingo and know when not to speak (if you know what I mean, you know what I mean). They understand that speed and money are what matter most to an investor. 

How do you know if a title company is investor friendly? 

There are a few questions you can ask a title company to tell if they are truly investor friendly: 

1. What is the difference between a double closing and a simultaneous closing?

Many either won't know or say they are just different terms used to describe the same thing- Red Flag!

A Double Closing is when both sides of the deal fund independently of one another but within seconds of each other. A simo is when you are using the end buyers money to fund the first side. Totally different. 

2. Do you work with land trusts? 

If they don't work with land trusts - Red Flag!. If they say they do, ask if they require that you provide a copy of the trust. If they say yes - Red Flag! As long as the deed into the land trust was drafted correctly you should never be required to provide anyone a copy of your land trust. 

3. How do they structure Subject To's? 

A subject to isn't much different from a regular closing. The title company just moves the existing mortgage from requirements to clear on the policy over to exceptions from coverage. They'll probably have a buyer sign a disclosure or acknowledge the exception, but an investor friendly title company will know how to do this without sending anyone running away from the closing table. 

4. Has the agent or the owner ever personally done a flip, a wholesale deal or managed a rental?

This one may seem like a bit much, but real world experience goes a loooong way. It's nice to work without someone that has enough real world experience to help you brainstorm on how to structure or save a deal. Hopefully, you won't need this help often, but when you do it will be priceless. 

These should help you determine if a title company with an "investor friendly" mantra really passes the sniff test so that you can build your team of trusted vendors that will ensure you always have quick smooth closings.