1031 Exchanges: Why Investors Need to Work with a Reputable Title Company – Part 1, Rates
Tuesday, March 10th, 2009Not all rates are created equal. Rates for a residential resale for a first-time home buyer are not the same rates that apply to an investor that will be purchasing multiply properties with cash. Nor should they be.
The question that an investor should ask when it comes to rates is, “Will the rate I get today benefit me when I go to sell this property and purchase another property?” This is where your title company comes in. The title company you chose will be your biggest ally in the fight to get the best rate and return on your investment.
For example, at Fidelity National Title (www.fntarizona.com) there is a hold open rate that is 125% of the owner’s policy. This allows the policy to stay open for up to 2 years awaiting a resale and the net will be a substantial reduction in the owner’s policy.
For example: say you have a $100k property and the title is $730, 125% of $730 = $182.50. This is what the investor (as a buyer) pays. If you sell the property within the time allotment and the policy is $1,020, you will then pay the difference of the two policies $1,020-$730 = $290.
To learn more about Fidelity National Title’s and the 30% investor rates available, send an email to info-fntarizona@fnf.com or call 480-214-4540.
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