How do you feel about buying into an existing title company as opposed to starting a new one? The start up costs would probably be lower, there would probably already be some client contracts in place and the new infusion of capital could be directed toward further client development.
The one draw back that I have observed with title companies advertising on SOT's bulletin board is that most of the smaller title companies do not have clients active in all fifty states at the same time. Initial investors may not receive work assignments until client contracts are secured which would provide work in those states. I suppose one answer would be to have them wait to buy in until there is work available in their area. Although they would still share in a proportional distribution of year end profit even if they did buy in and there was no work available in that area. Does anyone else have any thoughts on how to approach this problem?
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