Should I buy owners title insurance on my flips?

[Felisha McCurry]

We buy fixer uppers and rehab them and resale. Total time is usually less than 6 months. Should we buy the owner title policy each time. Cost is usually around $500 per $100k.

[Chris Mason]

Yes, absolutely. I say this as someone who made a title insurance claim within a month of buying my very first home.

This is always true in general; in your case if you are acquiring from distressed/motivated sellers even more so. Coin toss if a normal owner is up to date on his income taxes, what do you think the odds are if someone is selling for below market value and "needs" to close in 17 days? That IRS lien that didn't appear on the title search is now YOUR problem.