In the rush to get a good deal, many investors can sometimes end up inadvertently leaving out an important piece of the picture – but one that very much needs to be included – and that is the title company.
Yet, leaving out this component, or even being careless about whom you choose, could result in much more than losing your investment property. In fact, depending on the situation, it could lead to bankruptcy, or even worse.
So, what exactly can you be risking by not being careful with a property’s title – and how can having the right title company help? Here are the answers:
First, the owner’s title on a property is the only policy that ensures you – the owner – of legal help in case of attempted fraud. Therefore, if you do not have one, you may be at risk of losing everything you own in case an issue comes up.
The title search on a property is the key to obtaining the title insurance policy. Here, a thorough search should ideally be performed – and it should also be updated just prior to your closing on the property. This should reveal whether or not there are any liens and / or other types of title issues, along with ensuring a legitimate transfer of the property to you.
The closing is yet another area where having the right title company can be a key component of your investment team. In fact, if your deal does not close, then nothing else really matters. As most investors know, there are any number of things that can go wrong just prior to closing. But having a skilled closer can keep a deal together and help to ensure that all remains on track.
This can be even better if you are working with an investor-friendly title company. These companies are familiar with how real estate investors work, and are more in tune with their challenges.
Once you have your deal closed, partnering with a property manager can help you to make the most use of your time so that you can hand over the day to day dealings of the property to someone else. For more information on how you can profit from your real estate investments, while making the best use of your time, Contact Us.