New title company opens Springfield, Ozark branches

by Trenton Tubbs

SBJ Contributing Writer

sbj@sbj.net

Tri-Lakes Metro Title Company recently opened its doors at 3844 South Ave. in Springfield, but its owners and staff are by no means new to the title business.

The joint venture between Stephen Babbit and Michael Holden started over a game of golf. "Steve and I were playing golf last August, and (I said) Hey, I've been thinking about going to Springfield,' and (Steve said) Hey, I've been thinking about going to Springfield, too.' And the collaboration started from there," Holden said.

Babbit owns Tri-Lakes Title & Escrow Co. Inc., with offices in Galena, Branson and Kimberling City. He has been in the title business for 30 years. Holden owns Guaranty Land Title Insurance Inc., based in Columbia and serving mostly the central and northwestern areas of Missouri. He has been in the title business for 16 years. They will maintain their individual companies in addition to working together in the new one.

"We're hoping that between the two of us we're going to be able to come into the middle and do business with people we already do business with, and anybody else we can gain as a client. For once it was a good idea. I'm coming north and he's coming south," Babbit said.

The two had originally intended to combine their respective company names, but there is already a Guaranty Title Company Inc. in Springfield, which would have been confusing.

"For our company to participate in the Springfield market, we had to have a different name, a different logo, and have something that was different from the companies here," said Holden.

"We're using Metro because we're operating in the city," Babbit said. "If we could have found any way to use part of Mike's name we would have, but we couldn't figure out a way."

Opening shop

Once the name was decided, there was one more player to add to the team. Babbit and Holden hired Karan Ashlock, who has 18 years of experience in the Springfield title business. "We were extremely lucky to find Karan and that she was available. She was ready to get back into the title business again and start working after a two-year hiatus," Holden said.

Her knowledge of the Springfield market has helped greatly, he said.

The location was chosen in January. Holden and Babbit felt the South Avenue spot was ideal for serving Springfield, and was just far enough removed from the traffic of nearby Campbell Avenue.

The 1,400-square-foot office is being leased through The Snow Group LLC, and an open house was held July 21.

Renovation of the Springfield office took approximately two months, after which it opened in March of this year. Contracting services were provided by Construction Specialties Inc., Springfield; Tim Harris Excavation & Construction, California, Mo.; Integrity Electric, Labadie, Mo; and Executive Communications, Nixa.

A second office was opened in Ozark to serve the Christian County area. That office is 1,200 square feet and is located at 1515 Diane St. It is leased through the R.B. Murray Co., with an open house scheduled for Aug. 12.

The duty roster

Holden, Babbit and Ashlock have divided up duties, with Holden tending to general administration, Babbit handling underwriting, and Ashlock managing the offices.

Ashlock recruited several former employees to start up the offices. The Springfield and Ozark offices of Tri-Lakes Metro Title have a combined total of eight employees.

"I think we've got a fantastic and talented team who can handle just about anything we get thrown at us," she said.

Title companies tend to be family operations, Babbit said, and Tri-Lakes Metro is no exception. "We have people I've done business with for 10 years whose kids now work here."

Ashlock added, "I have a mother and daughter working for me. I've got a daughter of our computer guy working here." In fact, the company's roots are deep in the title business, with all three team members' parents having been involved in the industry, and Holden's grandfather as well.

Tasks at hand

A title company is involved in all steps of a real estate transaction. Searchers and closers are responsible for researching properties and meeting with clients to settle deals.

"Any time a property is bought and sold, a title company handles the transaction," Holden said. "The deeds, the transfer of money, the payoff of prior lien holders. A very important component of that is the issuance of a title insurance policy insurance that tells you the property is yours," he said.

Speaking of the research process, Ashlock said, "I look at it as kind of like we are the historians for a piece of property. We research it out. We go back so many years and look at every document that is filed related to that piece of property. And you have to know what those are to be able to figure out how they each play into each other."

The title business can involve coordination of real estate agents, attorneys, lenders and buyers, with as many as 30-40 transactions closing in a month. "It is a fairly high-stress business because our customers do not understand the background or the technical aspects of our business. They have to trust us," said Babbit. "So we have to enjoy what we're doing."

Looking ahead

The real estate market is on the upswing, with a slow rise in interest rates over the next two years, Holden said. "For every quarter-point change in interest rates, nationally, it makes 250,000 people either able to buy a home or unable to buy a home, depending on which way the interest rate figure is going. So it's a huge, huge influence on the real estate market," he said.

In the next 18 months, Tri-Lakes Metro is focusing on expanding into the Greene and Christian County markets. Roughly 75 percent of area real estate sold is residential property and the remaining 25 percent is commercial, Holden said.

"We're trying to gear our company to capture those same percentages," he said. "It'll give us a nice balance."

Last year's closings for both Babbit's and Holden's companies may give some indication of future expectations. Babbit's company finished 2003 with over $3.5 million in gross revenues and Holden's with over $5 million, Holden said. "We have a very large conglomerate we've assembled to make the Springfield office successful," he said.

Experience

The experience the company brings to the market is something all three team members hope works in their favor.

"We want to be a tool for real estate companies to get things done faster, smoother, more efficiently, more cost effectively," Holden said. "We want Realtors to know that if they send a deal to Tri-Lakes Metro Title, it's going to close, it's going to close on time, and it's not going to have any title problems."

"But not only to do that," Ashlock added, "but to do it with a smile. I think customer service got dropped a long time ago and it's about time it came back."

Tri-Lakes Metro is a member of Missouri Land Title Association, American Land Title Association, Greater Springfield Board of Realtors, Springfield Area Chamber of Commerce, Ozark Chamber of Commerce and Nixa Area Chamber of Commerce. They also underwrite for several land title insurance companies, including LandAmerica Title Insurance Co., Columbian National Title Insurance Co. and Security Union Title Insurance Co.