Offline...can I get in some kind of trouble? I just got off the phone with a real estate attorney who said I cannot sell more than 5 properties in a year, which I had heard before. I explained I was not selling them, just being paid to assign my contract to someone else and that I will never own any of the properties. Then he told me that I would be receiving a commission, which I cannot do because I am not a REA. I explained that it is not a commission and that I am being paid to assign a contract, which is not the same thing.
Thoughts?
Also, he told me that there are no attorneys in the area that handle closings anymore because there is too much paperwork involved, and that I should call a title company. Truth or BS? This attorney is heavily involved in REI and the REI clubs in the local community.
I called the title company he recommended to me and asked if they did assignment of contracts. The guy I spoke with didn't seem to know what I meant right away, so I explained it. He said they should be able to take care of that, and that lots of people have been asking that question lately. He asked if I went to a class or something.
Thoughts on all this?
REALTOR
Real Estate One
Grand Rapids, MI
you're not selling properties by assigning contracts- you are allowing someone else to take your place in the contract for a fee
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
That was my understanding as well. What the lawyer said was, "If you have to explain it, it probably won't hold up in front of a judge." He was talking about commission vs. an assignment fee though. He said it sounds enough like commission to where I could get in legal trouble, but if people are doing this as a business every day, I am hoping he is not correct.
REALTOR
Real Estate One
Grand Rapids, MI
That's what I thought. Thanks for the input!
REALTOR
Real Estate One
Grand Rapids, MI
What he may be referring to is that 1 person cannot purchase 5 properties in a year that are Owner Financed.
This my understanding that I could go and buy a house from a seller where the seller carries the note till its paid off (owner financing) , they are saying I couldnt do that but 5 times in a years time. But its only owner financing.
Now you could assign a owner finance contract as many times as you like , since you are not the one buying it.
Hope this helps
Curtis Fillers
(Charlotte,NC)
I don't mean to sound arrogant, but we've done over 45 assignments in 2011. Your attorney doesn't know what he's talking about and is probably too egotistical to admit it since he portends to be "heavily involved" in RE.
What state do you live in? Does your state require an attorney for real estate closings? If not, then do some research into title companies that ARE involved in your local REIA group and talk to them about it.
God forbid you bring a land contract deal to your attorney! (we do those too) He'll need a new diaper. :0)
Joe & Pam
1-855-JOE-BUYS
Ya i was actually scared of the assignment strategy but I called a local re attorney he said they re fine to do as long as your paper work( contracts) are good.
yesterday is history, tomorrow is a mystery, but today is a gift. That is why it is called the "present."
"Be not afraid of growing slowly; be afraid only of standing still"