Posted by Mike Schmidt on April 17, 2001 at 22:59:26:
Thanks for the info Sue. I went to the link you posted and found a few attorneys I will be calling this week. I also ordered Nuts and Bolts today along with placing a ad in the local paper for the next month. Now all I need is my first deal so I can pay for all this : )
Attorney and required forms - Posted by Mike Schmidt
Posted by Mike Schmidt on April 17, 2001 at 12:02:09:
Ok, been doing some work and found a few interesting properties I would like to look into further. I have 3 questions.
What process should be used in finding a good attorney? Would you just walk into a few offices and ask some questions like how familiar they are with subject to;s and land trusts? Or would you start by doing this via the phone first?
My primary interest is with buying on L/O and subject to. Exactly what forms should I have in my possession at all times before I go to meet a potential seller? Option to purchase, lease purchase, seller disclosure?and???
I would like to have the first several deals done with my attorney. After you have an offer excepted what preparation do I need to do prior to making an appointment with the attorney? If seller wants to use his own attorney I assume I would also want to have my attorney present as well!?!?!?
Outside of reading a few books that cover the basics, reading this board and the Joe Kaiser Lease Option Strategy I am really green. None of what I read so far really goes into step by step when it comes to forms/contracts. Joe does cover this but I would really like to find something that goes into grat detail on the forms, filling them out etc. Any suggestions?
Thanks in advance.
Re: Attorney and required forms (long) - Posted by SueC
Posted by SueC on April 17, 2001 at 12:34:15:
Mike, here’s a few basic answers:
- The best way to find a lawyer who will understand creative RE is thru referral: ask your CPA, ask other investors in your area (where are you located?) and ask real estate agents. You could also contact your local county bar association and see if you can get a list of lawyers on their real estate committee (most bar assn’s have one). Keep in mind that other than referrals from investors, you may have a hard time finding a lawyer who will be willing to do or even understand creative RE transactions. Some folks have purchased Bill Bronchick’s courses to give to their lawyers (or told their lawyers to buy them!) You might ask them the questions you mentioned, but also ask if they have done simultaneous closings, if they have real estate investments themselves, whether they have other investors as clients. You should be able to tell right away by their answers whether they’re deal killers or just unaware of the possibilities and willing to learn.
You can also check their client list, specialties, etc. if you go to martindalehubbell.com and type in their name, location, etc. Not all lawyers are listed, and many are big-firm lawyers who will be more staid in their approach to RE, but at least you might find more info on names you get as referrals.
At a minimum, the docs for a L/O between you and the seller would be the lease and option to buy; between you and your tenant buyer the same. However, the terms you will want from those parties will be different. With a subject to, you will need a purchase agreement that spells out that you are doing this “subject to” and a CYA form in which the seller acknowledges that s/he is still liable for their mortgage, and also you’ll want to get the deed from the seller and record it (requires notariziation also). There are several other forms to use, but it’s really the subject of an entire course, it’s just impossible to give you all the info you need here.
There are many pieces to each of these, you will need to get the forms somewhere; the best would be Bill Bronchick’s courses, but check his website also, www.legalwiz.com. The lawyer you wind up using may have some or all of these already prepared also. Anything you decide you want to record, such as your option agreement, will have to be notarized.
If your offer is accepted, you need a purchase agreement signed ASAP with the terms of the sale, contingencies, etc. Your lawyer can provide this, even before you make your offer. Insist on using your lawyer. However, of course the best way to do these deals is to close at the sellers kitchen table!
If you can get your hands on forms you’re comfortable with, you won’t need a lawyer every step of the way. You might spend the $$ to get Bill Bronchick’s course Nuts and Bolts of Creative Real Estate Transactions. Will cost you about what it woudl cost to have a lawyer draft up one or two docs. Once you have those in hand, you can always have a lawyer review them and modify as suited to your local jurisdiction.