Title Company
I am an experienced investor that just recently purchased a mortgage brokerage. I would like to expand further and open a title company. Does anyone know where to get information on the requirements to do so? It seems like a private club to get into that business.....
Hi ASparksREI,
Where ya at? What state are you located in?
clear2close
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St. Louis, MO
Opening a title ‘INSURANCE COMPANY’ is not as easy as opening a loan broker shop. You need BIG DOLLARS.
HH4U,
Glad to meet you.
I would think that the State licenses Title Companies, so this is where to start. Find out what Division issues the license.
You are correct it is an exlusive club, an aquaintance of mine just got his license after 5 years of trying. So money is not the only consideration involved. You would need some type of Surety Bond to cover the business. The Bond required by the State would have a certain monetary requirement.
John $Cash$ Locke
Call or visit Chicago Title Co. They are the biggy. Tell them what you want to do. They love to have people like you go out among the indians and establish a presance. Arrange to layoff to them, this makes your bond real easy cause you are sort of involved with them. Remember they are like the Carpet Baggers that arrive after all the fighting and stuff is finished. But by that time you might want to sell out to them for a goody price in their stock and cash.
My suggestion is that you do one step inbetween start an Escrow Company and put the local Lawyers to shame. Cheap fees, fast service etc. etc. Then step again and start a Trustee and the utilization of the three party deed of trust. Now you control the foreclosures and of course that feeds right into your Mortgage Broker work cause you need a service entity for all those mortgages you bundle and resell. See one thing leads to the other. Lots of fun building the structure and the savings as you verticalize the structure is enormous. Have fun, get rich. Lucius
It is a lot easier to open a title insurance agency than a title insurance company (underwriter). You will need to contact your state's Department of Insurance (or equivalent) in order to get the requirements and contact a number of title insurance companies to see what their requirements are for underwriting you (i.e. Chicago Title, First American Title, Land America). I would recommend the title insurance agency route.
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