In this episode we hear from New Beginnings Title Company founder and CEO, Katie McGinnis as she unravels her rules of success, one innovative step at a time!
Join Joe Seagle and Katie McGinnis on a journey back to 2020, where Katie embarked on her entrepreneurial adventure armed with nothing but determination and a shoestring budget. Despite the pandemic’s challenges, Katie and her team didn’t just survive – they thrived! They discuss the challenges of keeping up with changes in the industry, the increasing prevalence of fraud in real estate transactions, and the importance of training and security measures. They also touch on the expenses and insurance required in the title industry, as well as the trends they are seeing in closings, such as wraparound mortgages and creative financing.
Takeaways
- Keeping up with changes in the title industry and staying informed about new laws and regulations is a major challenge for title agents.
- Fraud in real estate transactions, particularly in land deals, is becoming more prevalent, and title agents need to be vigilant in verifying identities and detecting fraudulent activities.
- Title agents must undergo regular training and implement security measures, such as positive pay and careful handling of wire instructions, to protect themselves and their clients from cyber fraud.
- The title industry involves significant expenses, including insurance coverage for errors and omissions, cyber insurance, and fidelity insurance to protect against employee theft.
- Building a reliable and dedicated team is crucial for title agents, and maintaining a family-like work environment can contribute to employee retention.
- Trends in closings include an increase in wraparound mortgages and creative financing options as interest rates rise. Working with subject two deals can be a significant source of new clients for title agents.
- Marketing is essential for growing a business, even in the title industry.
- Bookkeeping and accounting in the title industry require meticulous attention to detail.
- Compliance with foreign ownership regulations is necessary for title agents.
Resources & Terms Mentioned
New Beginnings Title Company | https://nbtfl.com/
E-Closing: Online Settlement Transactions | https://e-closing.com/
Zero Balance Account | https://www.investopedia.com/terms/z/zba.asp
Errors & Omissions Insurance | https://www.thehartford.com/professional-liability-insurance/errors-omissions-insurance/coverage
Wrap-around Mortgages | https://www.rocketmortgage.com/learn/wrap-around-mortgage
Subject To Transactions | https://www.fortunebuilders.com/subject-to-real-estate
Chapters
00:00
Introduction and Background
02:28
Challenges in the Title World
03:31
Fraud in the Title Industry
09:03
Training and Security Measures
10:17
Wire Fraud and Security Measures
14:37
Insurance and Expenses in the Title Industry
20:08
Trends in Closings
21:22
Introduction and Background
22:03
Working with Subject Two Deals
22:49
Closings Across Florida
23:36
The Growth of Florida
24:01
Unlearning and Marketing
25:28
The Importance of Marketing
26:13
Bookkeeping and Accounting Challenges
27:29
Closing Software and Platforms
29:04
The Responsibility of Handling Money
30:19
Foreign Ownership and Compliance
31:14
Dealing with Foreign Sellers and Borrowers
33:36
Inspiration from Katie’s Father
34:12
Thriving in a Challenging Market