When you hold the title to a property, it gives you peace of mind knowing that you are the legal owner and have full control over what happens to the property. This can be especially important when it comes to protecting your investment. If you ever need to take legal action against someone who wronged you, having the title will strengthen your case. Some other reasons for ensuring you get a title after a real estate investment transaction include:
A Title Can Help You Secure Financing
Having a clear and undisputed title is essential if you are looking to borrow money from a lender to finance your real estate investment. Lenders will want to be sure that they are not lending money on a property that could potentially be taken away from them. If they are not confident in the legal ownership of the property, they may deny your request for a loan.
A Title Can Help You Sell or Refinance Your Property More Quickly
When you are ready to sell your real estate investment, having a clear and undisputed title with the help of a firm like Southern Title is crucial because it will either speed up or slow down the selling process depending on how it stacks up against other comparable properties being sold in your area. Much like securing financing, having a clear title can make it easier to complete a private sale or refinance when you need to tap into some extra cash flow that might be locked up in an investment property.
A Title Can Help You Maintain Better Financial Records
When filing your taxes, identifying the property in question based on its unique legal description will make maintaining accurate financial records easier. This can be especially important when it comes time for an IRS audit or estate tax return if the property is part of your overall investment portfolio.
For real estate investment, having a title is key. When you buy a safe in a bank, it has a number. When you buy a car, it has a number. So, when you invest in real estate, why not have a title? Having a clear and accurate title is the best way to describe ownership of an asset.
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