Quote:
Originally Posted by shpuntik
I've been thinking about starting a Title Insurance company as I currently deal with titles and see some potential for the future.
Does anyone here own one or know anyone that does? Is it profitable? Is there a school or education course out there that teaches everything there is to know about Title Insurance? For example reading title, assessing risk, closing, etc?
I did some research online and realize that I would have to get licensed and registered in certain states but New York is not one of them and that is where I reside and plan to do a majority of my business. Are there any schools in New York where I can delve into this?
Thanks for your help guys.
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1. Don't mistake my comments as discouragement!
The real estate title insurance industry as a whole is in the tank right now. Many underwriters have folded/merged for a variety of reasons, including but not limited to excess claims and issues regarding the real estate market colapse, poor underwriting practices and controlled business arrangements and agents that were...shall we say...iffy businesses.
Judging only from the way you phrased your questions above I sense you have somewhat limited experience in the business (I could be way wrong, my bad if I am). If you have relatively little experience in the business you will need someone on your staff or a partner with more experience. None of the underwriters (Fidelity, Stewart, First American) will even spit at a new guy wanting in because of all the hits they have taken due to crappy agents racking up massive claims. Most the big underwriters are actually cancelling "under-performing" agents as a way to shed this risk.
The smaller underwriters may still look at you, with enough backing (your own capital) and the correct make up of your personel (owners/staff).
The business CAN be very profitable, IF you run it well and your staff doesn't screw you over by taking short cuts. You are very vulnerable to shenanigans of both your staff and customers. I will not go into details here, because I don't want to give anyone tips on how to pull some of this stuff off, but believe me, I have seen first hand what can happen at a poorly run real estate title insurance company. Actually, doing what I do, I have heard off and seen first hand many issues at many companies.
I have been in the business going on 19 years and have done just about every function in a title company. From title research, examining, policies, closings, audits etc.
My guess is that New York will have massive regulatioins regarding the title insurance industry. You may not need a "personal" license, but the business itself will, I am pretty certain of that. The government rarely misses a chance to regulate a business like this.
Check with your banking regs, financial institution regs, real estate regs, and of course insurance regs, I would be willing to bet that some office in New York covers real estate title insurance.
Again not to be a wet blanket, but if you need classes to be comfortable to be in that business you are NOT ready to be in that business. I still learn stuff weekly, even after 19 years. No disrespect meant, but it's a very tough business with enourmous room for error and newbs will get crushed from within and without.
Work your way around a few different operations (companies), get to know some big-shots in your area, then venture out would be my advice. Do every job you can, because so much can go so wrong. As an owner you will want to know all the weak points.
Good luck man, I love to see this attitude!