What is Title Insurance (995)
Transcript:
Steven Butala: Steve and Jill here.
Jill DeWit: Hello.
Steven Butala: Welcome to the Land Academy Show, entertaining land investment talk. I'm Steven Jack Butala.
Jill DeWit: And I'm Jill DeWitt, broadcasting from sunny Southern California.
Steven Butala: Today, Jill and I talk about what is title insurance?
Jill DeWit: Oh. We've all wondered that.
Steven Butala: We have. The further you get into your career, the more you wonder, "Do I really need this title insurance?"
Jill DeWit: The more you read the exceptions, you wonder, "What is ... just what is title insurance?"
Steven Butala: We'll cover all that. We promise to make this not boring.
Jill DeWit: All right.
Steven Butala: Before we get into it, let's take a question posted by one of our members on the landinvestors.com online community, it's free.
Jill DeWit: Jeremy wrote, "I'm working on gathering data and deciding where to send my first mailer. My plan is to mail three counties with 500 to 600 mailers per county, for a total of 1,500 to 1,800 on mailers going out.".
Steven Butala: So far so good.
Jill DeWit: Right, "However, I have a few questions that hopefully someone can help me with. A couple of counties I'm looking at have a large difference in population density from one part of the county to another part of the county. I thought about sorting by zip code, but the undeveloped land doesn't have a zip code or address assigned. How do I only send mail to the less densely populated portion of the county? How are you pricing counties that do not have a lot of data? I'm looking at several counties, where the total number of properties in the county is less than 10,000. I know these counties fairly well, and I know who my end users likely to be, hunters and timber investors. But, with anywhere from 50 to 100 total listings on land and farm, I'm only seeing 5 to 10 properties on land watch, and similar websites in the Anchorage range I'm looking at sending my mailers to.
Jill DeWit: Do I just base my price off these listings? Or, is there another way people are pricing these areas? Are people just avoiding these counties due to such limited data? Lastly, has anyone had success with subdivision lots in Florida, where there are infrastructures such as roads in place, but the subdivision's still considered rural in the outskirts of the city? I see a lot of these listed on Zillow, and several have sold on eBay for $1,500 to $2,000. However, at those prices it seems like the profit margin is thin after you pay for the data, mailers, etc, even if you're buying at $300 a lot.
Jill DeWit: Thank you for any guidance you can provide."
Jill DeWit: One of our members, Kevin, already piped in. I'm going to read Kevin's answer here too.Kevin Farrell wrote, "Jeremy, all good questions."
Steven Butala: Really good questions.
Jill DeWit: Yeah. "I would not worry about population density differences within the county."
Steven Butala: Neither would I.
Jill DeWit: "Send mail to all the properties in the county that meet your criteria. For example, all the ten acre vacant parcels. Some mail will go to the more expensive areas, no problem. If someone with more valuable land excepts your offer, then you get a better deal."
Steven Butala: That's it.
Jill DeWit: Exactly. "Price should be derived from the lowest comps in that county."
Steven Butala: He's right again.