Quick Answer
An investor-friendly title company is one that understands investment transactions, compressed timelines, assignments, double closings, entity ownership, private and hard-money financing, distressed properties, and complicated title issues. It does not ignore risks; it understands the transaction structure well enough to address them.
Not all title companies are alike. Some operate primarily for traditional retail transactions where a buyer purchases a home with a conventional mortgage, moves in, and stays for years. Those transactions follow a relatively predictable pattern. Investor transactions often do not.
When you invest in real estate, you may buy with cash or nontraditional financing. You may assign a contract or do a double closing. You may hold title through an LLC or trust. The property may be distressed, with multiple liens, a deceased owner, or an old unreleased mortgage. You may need to close in a week, not thirty days.
An investor-friendly title company does not treat these scenarios as problems to avoid. It treats them as transactions to handle.
Built With an Investor's Perspective
1st Option Title was founded by Scott Horne, a title attorney and real estate investor who experienced title problems firsthand as an investor. For additional educational information from Scott Horne on real estate investing and title matters, visit the Horne Real Estate Law YouTube channel. This is separate from 1st Option Title's title and escrow services.
Investor Transactions Can Look Different
A typical investor transaction may involve any of the following:
- An assignment of contract rather than a direct purchase
- A double closing where two transactions happen on the same day with different funding sources
- A wholesale transaction requiring a specific fund flow process
- Owner financing or seller financing with customized terms
- A subject-to transaction where the buyer takes title subject to the existing mortgage
- A wrap-around mortgage or other creative structure
- Hard money or private money lending with documentation that differs from conventional financing
- An LLC or trust holding title on behalf of the investor
- A distressed property with title defects that need to be resolved before or at closing
These structures are not unusual in the investment world, but they can be unfamiliar to title operations that handle only retail transactions. For more on structures that can complicate a closing, see our article on subject-to transactions.
We Have Never Done That Before Is Not What an Investor Wants to Hear
When a title company says, "We have never done that before," it often means the company does not have the experience, underwriting resources, or operational processes to handle the transaction. For an investor with a closing deadline, that answer can delay or derail the deal.
An experienced investor-friendly title company has handled these structures before. The team knows what documentation is required, what underwriting concerns may arise, and how to communicate with all parties to keep the transaction moving.
1st Option Title Was Built With Investors in Mind
1st Option Title was created by Scott Horne, who worked as an investor before becoming a title attorney. The company was built specifically to handle the types of transactions that other title companies avoid. Investor transactions, creative financing, difficult title issues, and compressed timelines are part of the company's daily work, not exceptions.
Example: A Distressed Purchase Closing Friday
An investor finds a distressed property, negotiates a purchase for $150,000, and needs to close in seven days. When the title search reveals an old deed of trust that was never released, a deceased former owner with no recorded probate, and a judgment against a person with a similar name, an inexperienced title company may say, "We cannot close this week." An investor-friendly company evaluates each issue, determines what curative steps are possible, communicates the timeline clearly, and works toward closing.
FAQs
What types of investor transactions does 1st Option Title handle?
1st Option Title handles double closings, assignments, wholesale, fix-and-flip, BRRRR, buy-and-hold, rental portfolios, hard money, private money, LLC and trust purchases, owner and seller financing, subject-to, distressed and off-market properties, and creative financing structures. Learn more about investor-friendly title services.
Does 1st Option Title handle transactions outside Texas and Arizona?
1st Option Title operates in Texas and Arizona. Closings outside Texas and Arizona are handled through our sister company, OFN Creative Closings.