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Real Estate Investors, Stock Traders, and Business Owners guide to preserve their wealth, protect their assets, and prosper in the future.
Episodes
Wednesday May 29, 2019
Wednesday May 29, 2019
If you make a mistake and don’t have the proper title insurance policy in place to protect you and your assets when transferring real estate, you can blow it. Title insurance is an important part of real estate investing. Today, Clint Coons of Anderson Business Advisors talks to Latra Szal, attorney and chief operating officer (COO) of Texas National Title. She describes all the critical aspects of title insurance.
Highlights/Topics:
- A day in the life of Latra: Work with clients, real estate agents, and investors to help them navigate transactions and get them through closing
- Piece of the Pie: Title insurance is tiny piece of real estate transaction that can go wrong when processed improperly
- Common mistakes made:
- People take title in their name because it’s easier and faster, but haven’t created their LLC; altering warranty deeds may change/end coverage
- People want to get into individual financing arena by loaning their money to other investors to purchase and renovate a property to resell it without title insurance
- Additional Insured Endorsement: Moderate fee for investors to transfer or change name on insurance policy from individual to their LLC to extend coverage
- Title Commitment: Identifies owner of property and prior existing liens
- Differences between American Land Title Association (ALTA) states vs. states with other insurance regulations could change or end coverage
- 50/50 Split: Lenders either don’t care about transferring title from individuals to their entity, or have an issue with it; depends on how the loan is structured
- Avoid do-it-yourself (DIY) approach to deed preparation; an attorney or someone specialized should handle it to prevent mistakes
- Two ways to title Series LLC: Deed it directly into name of series, or deed it to parent LLC with notation at bottom of deed
- When loaning money on real estate, get the right title insurance policy to protect your interest and have quality escrow company conduct data research
- Real estate investors should ask the right questions and use keywords to make sure title company understands particular model and transaction
Resources
American Land Title Association (ALTA)