X-Factor Title & Closing

Written by Kevin Green | Photos by Peak RES

A NEW BUSINESS APPROACH

Roger McCloud and Christian Ascencio founded X-Factor Title & Closing with a clear mission: to reduce title insurance fees and make the home-buying process more affordable for clients.

Witnessing the inflated closing fees clients often faced, McCloud was determined to create a title company that prioritized client interests over luxurious office amenities. By offering lower fees while maintaining high-quality service, X-Factor Title & Closing aims to provide a refreshing alternative in the title industry.

GENESIS OF X-FACTOR

The partnership between McCloud and Ascencio began in an unexpected way. Ascencio initially joined McCloud's team as a receptionist, but his career trajectory quickly changed when McCloud encouraged him to take the title insurance test.

“He has a drive, and he's really good with details, which is going to be really important in title work,” McCloud said. “That's the main reason why I chose him. I thought we should probably go together and do this. Also, he's really committed to things when he's bought into it. I saw that in him very fast, so he was really committed. You can trust him to complete something fully whenever he does it.”

Despite initial hesitation, Ascencio passed the test and was soon invited by McCloud to become a business partner.

Since then, their collaboration has flourished, with X-Factor Title & Closing officially opening its doors on May 1.

“I didn't know what to think at first; it was kind of a big shock,” Ascencio said. “It didn't really hit me until I told my girlfriend, and she was like, ‘You’re a business owner now.’ I’m getting a lot of learning experience. I'm fairly new to owning a business, and someone like Roger has owned his business for a long time. I've learned a lot from him, and it's going well.”

AFFORDABLE TITLE SERVICES FOR ALL

The core mission of X-Factor Title & Closing is to provide affordable title services without compromising on quality.

By minimizing overhead costs and avoiding unnecessary office luxuries, McCloud and Ascencio are able to offer significantly lower fees to their clients. Their approach is centered around the belief that purchasing a home is already a significant financial undertaking, and title services should not add an undue burden.

Their solution was to reintroduce the original $150 closing fee, a stark contrast to the inflated fees prevalent in the industry today.

By offering this competitive fee for clients, McCloud and Ascencio hope to demonstrate the tangible benefits of their services to realtors. They advocate for a client-first mindset, emphasizing that realtors should choose title companies based on the value they provide to clients rather than personal convenience.

By lowering the financial burden on clients, X-Factor Title & Closing increases the likelihood of successful closings, benefiting both clients and realtors alike.

“I was watching our clients come in, and I'm looking over their closing statements, and I'm seeing how much they're paying in fees, which on average is around $6,000 in just closing fees,” McCloud said. “That's not even including your title insurance or other fees that you have to pay. That really was the driving factor. I have these people who are buying homes and investors who are buying homes on the regular, so how can we service them better? That's really why we opened X-Factor. (Competitors are) charging people and having all these really rich offices. They're really overcharging the public, and it's not fair to the everyday consumer who's trying to buy a house, which is expensive.”

SUCCESS THROUGH EFFECTIVE COMMUNICATION

Effective communication is at the heart of X-Factor Title & Closing’s business model.

McCloud and Ascencio understand that clear, consistent communication is crucial for ensuring client satisfaction and success. They have implemented a streamlined communication system that keeps realtors and clients updated throughout the closing process.

This system includes regular updates and a centralized communication log, allowing for real-time responses and efficient problem-solving.

“We've created a system in which when a realtor first comes to us, they get a communication log and it shows all the communication that we need to communicate with them,” McCloud said. “It's sent to them every Monday, Wednesday and Friday, so they get it three times during the week, and it's just like an update. All of their clients are on one tab, so if they have four clients, there's a tab for each client that they have and where that communication is in our communication to them.”

SOLUTIONS FOR REDUCING CLOSING COSTS

X-Factor Title & Closing leverages technology to enhance the closing process and reduce costs. By using Qualia software, they allow clients to presign documents before arriving at the closing table, saving time and minimizing potential issues.

“If there is something wrong with the paperwork, or the mortgage company did something wrong, the client is seeing that before they get here,” McCloud said. “We have the opportunity to fix it instead of the client sitting for four to five hours while we wait on the mortgage company to send what they need to send.”

DISRUPTING INDUSTRY PRACTICES

McCloud and Ascencio are committed to disrupting traditional industry practices that prioritize company profits over client needs.

By offering lower fees and focusing on essential services, X-Factor Title & Closing aims to set a new standard in the title industry. They believe that realtors should prioritize their clients' financial well-being by choosing title companies that offer the best value, rather than sticking with more expensive options out of convenience.

“We had one realtor telling us, ‘Well, I'm not going to change companies because I know all my clients go to this one company to close,’” McCloud said. “I was like, ‘Oh, so you want your clients to pay more money because it benefits you?’ If that's your attitude as a realtor, you probably need to go out of business because your job is to work for that client. That means making sure that what they're paying is the least amount possible.”

GROWTH AND EXPANSION

Looking ahead, McCloud and Ascencio have ambitious plans for X-Factor Title & Closing.

They are dedicated to expanding their referral base and continuing to provide exceptional service at affordable rates. With a focus on residential transactions and a commitment to client success, they are poised to make a lasting impact on the title industry.

“We just have a good referral base right now, and we're looking to add to that and just see it grow,” McCloud said. “One of the things that we're doing different is that $150 closing fee. If a realtor just wants to try us out to make sure we give their first client they use with us free closing, they can utilize us that one time and see our services so they can see what our differences are.”