Episode #22 Title Insurance with Samuel Weiner In this episode of Real Estate Investing Made Simple, Samuel Weiner talks about the ins and outs of the Title Insurance.
I’m Samuel Weiner. I am 23 years old and grew up in Roslyn, NY. I attended Indiana University – Kelley School of Business and was a dual major in Business Management and International Business. I moved to NYC upon graduation in May 2019. I started my career at Soni Resources Group, a Staffing & Recruitment firm, where I was a Recruitment & Business Development Analyst. A couple of months ago, I transitioned jobs and joined Langdon Title as Vice President of Business Development. Langdon Title is a national Title Insurance firm. I look to be a value add to all Real Estate professionals in all asset classes!
Contact Samuel Weiner:
Welcome to The Real Estate Investing Made Simple podcast, the show empowering and educating people on how they can grow, manage and protect their wealth through real estate investing. Now, here’s your host, Bailey Kramer
Bailey Kramer 0:22
Hello and welcome back to the real estate investing Made Simple podcast. The goal of this show is to break down complex real estate investing strategies that you can use to grow, manage and protect your wealth. I’m your host Bailey Kramer, and today we’re joined by our very special guest Samuel Wiener to talk with us about title insurance. Samuel Wiener is from Rosslyn, New York and attended Indiana University, where he graduated from the Kelley School of Business in May 2019. Samuel is also a fellow brother of Alpha Epsilon Pi. He currently lives in New York and his VP at LinkedIn title national title insurance firm. Welcome to the show, Samuel.
Samuel Weiner 0:59
Hi Bailey. Thank you for having me.
Bailey Kramer 1:01
Yeah, absolutely. So why don’t you go ahead and start by telling the listeners a little bit more about your background and how you got into the title industry?
Samuel Weiner 1:09
Yup, most definitely. But thank you for everybody listening and obviously Bailey for having me a little further about myself. I’m born and raised in Roslyn, New York, it’s on Long Island. I there did attend Indiana University, the Kelley School of Business. I was a brother of Alpha Epsilon Pi. I was a dual major in business management and international business. Upon graduation in 2019. I did move to New York City with two of my best friends from school and I actually started my career within the staffing and recruitment field at a firm called Sony resources group. I was a business development and recruiting analyst and I thought I positioned myself as a total solution provider really meaning that I focused on all industries, all opportunities that came to me and I gained a lot of great skills and sales, business development. recruitment. But there’s always been that urge for me to be involved in real estate. So a couple months back, I reached out and networked with a bunch of senior real estate professionals that I knew in all different asset classes and asked them for any advice they can give me of really any real estate fields or industries where they think I can be most successful. And one of my closest family friends connected me with his title insurance representative, who happens now to be my principal of my firm. So about I think it was about March, I ended up accepting a job at LinkedIn title. We are a national title insurance firm based out of Manhattan. I am Vice President of Business Development, we handle all real estate transactions, both residential and commercial. We’re fully licensed in New York and New Jersey, but we are a national firm. And the best part about it is I get to network and work with real estate professionals in all asset classes. So that’s it. Little
Bailey Kramer 3:00
further about me. Awesome, awesome. So let’s kind of dive right in and kind of break down what is title insurance? You know, that’s something that isn’t the most sexy aspect of real estate by any means. But you know, Stephanie, super important, so ready to dive in?
Samuel Weiner 3:15
It’s actually the funniest thing because if you would ask me the same question, what is title insurance, let’s say in about January or February, I would say I’ve never heard of title insurance my entire life. So, to do the definition, just to give everybody a basic understanding title insurance is a way to protect yourself from financial loss and related legal expenses. In the event there is a deficit in title to your property that is covered by the policy. So title insurance is an insurance that is mandatory in all real estate transaction. It protects the buyers of properties from past events. They all title issues by title obviously, the title who owns the property is resolved by the completion of closing you only have to purchase Title Insurance once then the policy is valid for the entire ownership of the property. So the difference between title insurance and homeowners insurance life insurance health insurance is that title insurance protects you from all past events going back 500 years of the property making sure there’s no liens or frauds or encumbrances in the property. So that’s a little basic understanding of what title insurances
Bailey Kramer 4:27
Alright, awesome. Yeah, that was a great overview. And and like you said, title insurance is required on all types of property. Is that correct?
Samuel Weiner 4:36
Yes, 99% of the time, title insurance will be at your on all residential and commercial and I’ll refinance as
Bailey Kramer 4:42
a properties. Okay, gotcha. And, and you’re talking about the liens. Can you kind of give examples of how that stuff would even come up in the first place?
Samuel Weiner 4:52
You’re so the underwriters, I focus on the business development side of our business, networking and building relations. Some real estate professionals to use our services for all closings but the type of actual searches title insurance does. We do lien searches which uncovers any tax liens, any mechanic’s liens, making sure all taxes were paid off any pipes or anything that were redone. We’re all set and no issues there. We do mortgage searches. we uncover any outstanding mortgages on the property. We do judgment searches uncover any pending litigation involving the property owners making sure there’s no legal issues and really any encumbrances uncovering any restrictions, easements, encroachments, for example, let’s say your neighbors have a driveway that is built into your property or their fence is five feet onto where your property is, when you bought the house. The title insurance won’t cover it, uncover this and make sure that there’s no issues by the time of completion and handing over the new title. So those are a couple of the judgment searches we focus on.
Bailey Kramer 5:56
Okay, gotcha. So if a past owner had something on the title Like some type of lien, and you bought the property and had title insurance that would kind of protect you from their past mistakes.
Samuel Weiner 6:09
Yes, that’s exactly what title insurance is, we would make sure that all mistakes and liens or any issues there were in any of the past property owners, so not the current one, but even somebody that owned the property 100 years ago will make sure those are all uncovered, all taken care of. So the way I like to describe it is that no one can knock on your door 10 years later after you’ve had this house and say, Hey, this is my house or what is my property? We’ve already covered that and then if it is we insure you so that can never happen.
Bailey Kramer 6:39
Awesome, awesome. So let’s kind of talk about a multifamily transaction and where you actually come into the picture. So if you kind of want to explain to someone someone’s purchasing multifamily asset, you know, when when would they contact you? Sure. So
Samuel Weiner 6:54
title is completed upon upon closing, so We actually are contacted a couple months before closing. So once the buyer and seller in conversation to obviously buy the multifamily assets a couple months before they’ll reach out to us, it’s especially in multifamily assets and more commercial deals, we need a little more time because there’s obviously more property more owners within the property in the past. So we like to do our due diligence, make sure that all is set from there. But I would say they probably reach out to us a couple months before completion just in case there actually is an issue or lien within the property, we have enough time to handle it. So we don’t have to push back the actual transfer of
Bailey Kramer 7:38
the title. Okay, gotcha. So they contact you. So an investor is looking at a property, they identify something that’s looking interesting to them, and they reach out to someone like you, and they say, you know, this is the asset I’m thinking of buying. What do you guys actually do behind the scenes then?
Samuel Weiner 7:56
So what I would do is, we actually we partner With 10 of the major underwriters, so as I said, we are 100% licensed in New York in New Jersey, so if somebody was to come within Manhattan, Long Island, New Jersey, anywhere within those two states, we can handle 100% of the transaction. We have a we have an in house counsel, my two principals in my firm are an in house counsel. So the attorneys will make sure we’re on the legal side, we have underwriters, we have a closing desk. So they will actually go through the files of the property, making sure that it all is set all is great for the past thousand years within the property. And then if we actually are working on a multifamily or any type of asset in any of the other 48 states, we would partner with one of the local underwriter 10, major underwriters on their local office, first American fidelity, Chicago title, etc. Making sure that we’re following we’d still of course, do the underwriting the closing, making sure all that are in but we’d also partner with them to make sure we’re following all the zoning rules, all the state regulations, so that They have multiple set of eyes on to make sure that the transaction goes smoothly. Gotcha. No, but I would be the point of contact since I focus on our relationships and business development side, I will be your point of contact for our in house counsel and staff as well as you on both ends. Okay. Okay. And and I thought you kind of touched on it before, but the the cost of the title insurance, you said it’s paid just upfront and kind of how is the cost evaluated? It’s actually a fixed cost. It’s based off of a calculation. So title insurance, there is no negotiating price. It’s a fixed costs, what you pay my firm, you can pay the other 1000 other title insurance firms out there, so it’s based off of the calculation. And yeah, it’s a one time premium. So once you pay your premium, you no longer have to pay for the 1000 years you own the property.
Bailey Kramer 9:56
Awesome. And that’s even if you’d like refinance the property to
Samuel Weiner 10:00
We actually read no refinances. We run a new title check, and then there’s a new premium. Oh,
Bailey Kramer 10:07
okay, gotcha. And first, it’s done on all
Samuel Weiner 10:12
buying selling refinances and mortgages that is when we rerun a title check.
Bailey Kramer 10:16
Okay. And and if you so for a refinance would any is it typical that something new would pop up on the on the title it’s the same people on it.
Samuel Weiner 10:27
It’s typically not if you know that nothing’s happened in the past years, but that’s more than make sure that all the mortgages were paid off, we’re all set there, all the taxes are good. No legal issues have happened. Um, we want to do our diligence to make sure that even if it was a short period of time, that you’re still on the right track and make sure that we’re right even you could even say that we could have missed something our first time around, which is very weak and one of the best services in the whole country. So that’s usually not the case. But we do our diligence. To make sure when you’re refinancing a property, we’re still on the right track.
Bailey Kramer 11:03
Right? And you talk about the calculation what what kind of goes into it is like the unit count, is it, you know what, what goes into that calculation.
Samuel Weiner 11:14
I don’t want to give any false information. So I’m not sure exactly the specifics what goes into the calculation, but it’s actually public knowledge. So you can go on my firm’s website, LinkedIn, title, Comm. And then you could actually plug in, if you’re buying a multifamily asset, let’s say for $10 million, you could actually plug in the transit the transaction, and it will tell you exactly what premium you’re paying, which is the most part.
Bailey Kramer 11:37
That’s super interesting. So like you said, all the firms it’s a standard rate, who determines that rate, you know, that
Samuel Weiner 11:47
the American land title Association, they regulate all the title insurance that happens. Gotcha. That’s interesting.
Bailey Kramer 11:55
How it’s kind of all one rate, no one can change. So basically The differentiator is kind of the service and the people. How do you guys go about differentiating yourselves?
Samuel Weiner 12:06
That’s, that’s my number one thing. So the thing with title insurance, it’s a fixed price. Of course, my firm and I believe that we give the best service. But let’s be realistic here. All title insurance reps are going to tell you they give you the best service, right? More of how can I be a value add to my clients? additionally, title insurance. So the way I like to approach it is I like to give you access to my network, my relationships, my connections of real estate professionals in all asset classes. If you’re trying to meet a real estate attorney and investor, a developer, an acquisitions individual, I will give you access to my network, make those introductions, as well as what I’ve been doing right now, which is actually I’ve seen a lot of traction is I’m assisting my clients on a lot of off market deals. Sorry, obviously to all the brokers who are listening to this but giving them introductions, obviously helping them save some costs. And then hopefully we can provide the title insurance on that deal and build a long lasting relationship. definitely
Bailey Kramer 13:05
definitely. Are there any misconceptions or common common things that people you know pre determined about about title insurance that you know, that you kind of found is a big misconception
Samuel Weiner 13:19
The only thing I believe that people think wrong of title insurance is that it’s not a necessary part of the transaction. Um, because a lot of people saying what can really go wrong in your property in the past 1020 years that you don’t know about? Um, but the question is, why wouldn’t you want because I know when you get a life insurance, health insurance, you’re obviously making sure that no future events negative could happen if you have a fire in your house if somebody falls hurts themselves, it’s why not take the other side of that make sure that there’s nothing wrong with your house in the in the past because of course your broker and who you’re buying the property from is going to get you’re going to get an inspection on the house, but we’re going to do a deep Dive into the property, go back 100 years, make sure that when you buy your house, it’s yours and nobody could ever tell you it’s not and there’s no issues with it. So it’s more for the diligence part, your house is one of your largest investments and assets you’ll ever own. So you want to make sure that it’s everything you wanted and everything you’re paying for. So that’s that’s kind of the one thing I would say.
Bailey Kramer 14:23
Right. And just to clarify, the process is pretty much the same for all different asset classes.
Samuel Weiner 14:31
There’s obviously different aspects that go into it regarding residential and commercial of a property properties. But the process is you reach out to me, you let me know what type of property you’re buying. Obviously, we’ll find out the address all the specifics to it, and then we’ll get back to you and all the information regardless of the real estate transaction, and I don’t know by asset classes, I think I answered that a little separate what you meant, but in terms of the real estate side, the buyers actually dictate title because of the They are the ones buying the property. So they, if they don’t know a title insurance firm, usually the real estate attorney or the developer or the principal of the firm buying the property will recommend their title firm, but if not the buyers dictate the title. In then it’s the same across any type of transaction. Okay, okay,
Bailey Kramer 15:19
gotcha. Are there any last things you want to touch on about title insurance before we move on to the next section of our show?
Samuel Weiner 15:27
I mean, really, the only thing about title insurance is a very lucrative field of business, especially real estate. Not many individuals, especially younger individuals, know what title insurance is, but it’s such a necessary and interesting part of real estate that I feel that everybody younger should should be aware of this. I don’t think it’s really taught that much in college in schools. So if anybody has any questions regarding title insurance about myself about my pastor, how we could be beneficial to you, please feel free to reach out and obviously I’d love to go For more details,
Bailey Kramer 16:01
for sure, and you know, I think it’s super important to that’s kind of why we’re doing these podcasts to educate people on topics that are that are important that they might not know about. So now we’re gonna move on to the next section of our show, which is the big four, where we ask all of our guests the same four questions. So Samuel, number one, what’s your number one habit for success?
Samuel Weiner 16:21
So it’s actually funny you say that me I shouldn’t say funny you say that. But my biggest habit for success, I would say is networking. So where I thrive most and where I see myself in is best suited is using my interpersonal communication skills. So I’ve always wanted to and always will be in more of a sales and business development role, where I’m using my voice rather than my just sitting behind a desk all day. And everybody obviously is different in the way they approach themselves, their personality and how they can be successful in life. But for me, it’s utilizing my network of professionals in all ways. industries just getting a better understanding what they do, but who they know who they recommend what they recommend, and what can they do, not only to benefit me, but me to benefit them back. So when I said in the beginning of the show that I transitioned from status, staffing and recruitment to the real estate field, I didn’t know which sector of real estate I wanted to be in. I know you obviously have a strong understanding of multifamily. And that’s where you think you could be most successful but I utilize my resources in my network, asked them based off of my interpersonal skills, which sector of real estate Can I be most successful, and I was leading to my opportunity here and LinkedIn title in the title insurance field. And obviously it’s only been a couple months but I’ve seen short term success and I have big goals for long term success. So I would say networking and utilizing your relationships is a very strong habit for success.
Bailey Kramer 18:00
Awesome. Yeah, I mean real estate, everything really, especially real estate is really a relationship business. So it’s super important skill to have. So number two limiting beliefs, our thoughts in our head that hold us back from realizing our potential. What is one limiting belief that you were able to crush? And how did that impact your life?
Samuel Weiner 18:19
My limiting beliefs, I would say the one thing was to follow my passion and where I want it to be within my career. I was in the other I started my career as I said, it’s Tony resources group and I was there for I think it’s been 11 months. And that’s I wouldn’t say you could say that’s pretty soon to transition into a whole nother industry a whole nother opportunity. So there was always that limiting belief at night. Should I make this transaction Should I give it a couple more years? I mean, I’m doing very well right now. This could push me back in my career. But as I said, that underlying passion it was always to either join the real estate Read through some sector of the finance field. And I one day I woke up and said, let me do my networking. Let me see what’s out there. And no matter what, I’m going to go into it with a positive attitude and make sure that I’m making a transition to an opportunity that I feel will not limit me in my career but make me head in the right direction. So it’s always what whatever you feel whatever your passion is, always follow those beliefs and don’t wait. Obviously, when the right opportunity is right, you’ll make the move then but when you feel is the right time for you to go, go do what do what you feel is right. So I would say my limiting belief was that wasn’t the right time to transition. And it ended up being great choice of mine.
Bailey Kramer 19:43
All right, awesome. Awesome. So number three, what advice would you give to someone who’s considering investing actively or passively in real estate for their first time? Awesome,
Samuel Weiner 19:53
I would say is, speak with as many people within the field as possible, get a good understanding. of the type of property you’re investing in, what will your gains be? What what are the type of? I would say things more specific things that go into the investing part rather than you just getting money and getting it back, get a good understanding of the asset you’re investing in? And what like, what is going to happen the next 1015 years? While your money is there, what is your money going into what is going to change within the property? And then from all that information, you’re going to gain? It’s you’ll get such a better understanding of real estate and everything you’re investing in, so that when you make larger investments or more investments in your career, or in the future, you’ll have such a better understanding and more knowledge into what you’re actually investing in.
Bailey Kramer 20:48
Awesome, awesome. And the fourth question, what is your favorite real estate business or personal development related book?
Samuel Weiner 20:57
So I’m not much of a reader which is what is a I would say a flaw of mine I definitely want to get more into it and I’m definitely going to get your advice of a couple books to read after this. Um, but I one thing that I like about real estate which has some interconnection with books is I subscribe to many newsletters that I get very early in the morning to my email. Let me just pull it up right now I have it here. biz now sends out some great newsletters. They also host a lot of events. I have housing wire, they give you an am and pm edition. And then there’s just overall great newsletters like the water coolest team scam, the draft next draft, morning brew where they’ll just give you a great understanding of the current news and what’s happening within the real estate field but overall picture of the entire world so I think newsletter newsletters, they come right to your email and those are very important additional to reading.
Bailey Kramer 21:58
For sure. That’s awesome. So Samuel, Where can the listeners get ahold of you? Yep.
Samuel Weiner 22:05
I will work. Now I would say the best way to get in touch with me is LinkedIn. Obviously connect with me on my page, you could actually schedule a call, I have a link to schedule a call with me for 30 minutes where we can introduce one another’s, I have my email there, as well as my phone numbers. So please feel free to reach out with me. You obviously can connect with me as well on Facebook and every social media aspect. Alright, awesome.
Bailey Kramer 22:29
Well, Samuel, thank you so much for coming on the show today. It was awesome having you on and you added tremendous value to my listeners and me. So I really appreciate it.
Samuel Weiner 22:37
Oh, of course, anytime. Obviously. Thank you for having me and I look forward to keeping in touch.
Thank you for listening to the Real Estate Investing Made Simple podcast. For more resources or to connect with us further, please visit our website, http://www.baileykramer.com. We’ll see you next time.