Make Title Companies Your Friend
Title companies are the best source for the most up-to-date information about real estate transactions. Make friends with all the staff and make friends in all the title companies possible. The staff cannot give the private information because that violates the law. Nevertheless, they can chat about trends in general terms, especially where they are seeing the most activity.
Gaining More Precise Local Expertise
Imagine, for example there are certain areas that you have an interest in learning about more. Why not ask a title company officer if she or he see lots of action in certain areas to get a feeling, which area is hot and the other areas that are not so hot.
By befriending the title company person, this makes a real estate closing go a little faster. Title companies deal with tons of paperwork. One massive pile of paperwork looks the same as another. The workers choose which pile to work on first. Sometimes it does not matter if the deal closes fast. However, sometimes it is critical. For example, when trying to acquire a property at a steep discount before the date of a foreclosure sale, quick closing is extremely important.
Timeliness of Deal Closing
When time is of the essence, having a friendly relationship with a title officer can be a deal saver. The main thing to remember is any active real estate investor will deal with title companies and their staff many times. Why not make them good times?
One superbly successful real estate investor always plans to drop off paperwork at the title companies right before lunchtime. As he is leaving, almost as an afterthought, he invites some of the staff to join him for lunch. He is not trying to bribe them; he tries only to show his appreciation for all the hard work they do for his deals. They go somewhere nearby, very simple, and he gets to know them a bit better as human beings.
Rate Locks
Currently, interest rates have been relatively low, but they are heading up again. Financing terms can change making the deal not as attractive if interest rates go up. Some mortgage financing companies offer the ability to lock the interest rate for a period of time to avoid any changes. They charge an extra fee for this, but it is like insurance. If the real estate transaction is large, even a fraction of a percentage point represents a lot of money. Rate locks usually have a time limit, so the real estate transaction needs to close before the time runs out. This is why having a great relationship with a title company in a time-sensitive deal is invaluable.
Not Managing Personal Relationships Well
The opposite can easily happen. When a person is unkind to the staff of the title companies and comes back again to close another deal, their paperwork suddenly goes to the very bottom of the pile. The ruder that person is increases the time necessary to process the paperwork. They have to get around to doing it eventually, but they do not really care at all how long it takes.
Conclusion
Title companies are an intimate part of any real estate closing so a smart investor knows how to make good relationships with their staff, because it makes the transaction go more efficiently and smoothly.