Choosing a Title Company for Your Real Estate Investing Team

When real estate investors are flipping and wholesaling properties, their profits are realized in moving the deal through and getting it closed. A title company that is efficient, proactive as regards problems, and available for consultations, is invaluable to the successful real estate investor.

There are a great number of loose ends that must be tied up to get a deal closed, and the title company is where all of the documents go and problems are usually first realized. When you find one that is responsive and lets you know about issues promptly, it's the right title company for your real estate investment team.

Since the mortgage crisis that began in 2007, mortgage lenders and title companies have become much more cautious. There were real estate investors out there who gamed the system with double closings that either weren't legal or had so many problems that deals fell through and people were financially damaged.

For these reasons, many title companies will not do double closes, definitely when you want to fund one deal with another. However, try to find one that will schedule them one right after the other, but with transactional funding for the first one so no money is necessary from the second deal to close the first.

The title company on your real estate investing team can be a resource, or a source of headaches and loss of profits. You want one that is on top of every facet of the transaction, moves documents efficiently, and lets you know if there is a hitch in the process.

Some are super-conservative, especially if they are being held on a short leash by their title insurance underwriters. However, careful isn't necessarily a bad thing. If you're continually having to question the status of deals instead of having it reported to you, then you may want to look at another title company for your real estate investing team.