Fractional real estate investment firm reAlpha announced late last week that it is partnering with Title First Agency to provide title and closing services on all of the firm’s property acquisitions. The company hopes that this partnership will allow reAlpha to simplify and streamline its purchase procedures.
Unlike other fractional investment companies, such as Arrived Homes, reAlpha specializes in short term rentals, touting its product as “Airbnb ownership without the hassle” and promising investors that they will never be responsible for cleaning after guests or conducting home repairs. As a perk to investors, they are allowed to vacation at the short term rentals they have invested in.
When a potential investor shows interest in a particular property, reAlpha pairs the investor with other individuals who are interested in the property to form a syndicate and raise the necessary 10% down payment. reAlpha is a 51% investor in each of the syndicates. The minimum investment starts at $2,500 per property.
Potential investment properties are identified using algorithms and artificial intelligence, and are then vetted by the reAlpha team.
reAlpha believes that this partnership will give it the ability to scale with one vendor under a customized process that will improve efficiencies, enabling reAlpha to achieve its national and global growth goals.
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“As we start purchasing a large number of properties, their vast expertise in the title space provides a valuable consultancy and their vast network provides a seamless service to all transactions,” Mike Logozzo, the CFO of reAlpha said of Title First Agency in a statement. “They are a trusted partner and considered as an extension of our team.”
Title First Agency has a footprint in all 50 U.S., as well as 20 other countries. The title and closing services provider was acquired by Stewart Title in late July and helped Stewart obtain 8.2% of the title insurance market share during the third quarter of 2021, according to the latest statistics from the American Land Title Association.