OfflineHopefully I am posting in the correct forum for this question. Ok here goes.
I just started calling around to find a RE Attorney to help w/ assignment of contracts here in Atl Ga and I informed the attorney that I am looking for a RE Attorney to assist w/ assignment of contracts.
Well he wanted me to explain what that was. I explained what it was from my understanding and he stated that I wouldn't really need an attorney to assist w/ this until closing. Which I informed him yes correct so then he said he wouldn't have any problem assisting as long as what I was doing was legal. I stated that it was so I then inquired if I could email him a copy of the contract I would use just to make sure. He stated sure however there is a $150 review fee. Wow!!! Maybe I am cheap but I didn't think that it would cost me that much if at all. Does this fee sound about rt?
He also asked was I trying to act as an Realtor and I informed him NO. He wanted to know why wouldn't the investor just purchase the property outright in which I replied that I was basically assisting investors find cheap properties w/ a good amount of equity and in return I would be paid for assisting w/ this purchase.
Can someone tell me what I did wrong here? What should I be asking?
Here are the questions that I have prepared.
Do you or have you worked w/ REIs in the past?
Are you familiar w/ assignment of contracts? or not do you think that this is something you would be able to assist me w/?
How do you bill clients?
Is there a flat fee or do you take a percentage of the net profit?
Are you familiar w/ double closings? (I really don't know what the heck a double closings is, but I threw that in there just in case I ever need to do one I know who I may be able to use)
If ever I needed to double close would you be able to assist w/ this also?
I have read Profit from Real Estate Right Now but from this call I don't think I really understand why the attorney is needed. I know that they are the only ones to legally change a RE contract and I also know that they are suppose to make sure the contract is worded correctly so that I wouldn't get in trouble but other than that why are they needed.
Ok this call was way better. This attorney was not familir w/ assignment of contracts either however he stated that he had no problem looking over the contract I wanted to use to make sure that it was ok and at NO COST TO ME. GREAT!!!!! He stated that he wanted me to keep him in mind if ever I had an questions or was needed for anything. He did also recommend that I may need to speak w/ a contract lawyer instead of a RE lawyer to assist w/ assignment of contracts. I am feeling better already. YAY me!!!!!!!
If you were representing either buyer or seller in any transaction without a license, that would be illegal. But because you have an equitable interest in the property and it's under contract, you have the right to assign that contract to another party who will close the transaction. In this case, you;re not representing anybody, so you are ok, and you tell these lawyers that, too.
It will get to the point, where you don't need a real estate attny to close a transaction. RE Attny's are very helpful though, and if you can find one that's investor friendly, it's even better. That fee is typical. If you have any work for them to do, it will cost you. I'm sure Bill can inform you more, as he is a lawyer as well.
I just started calling around to find a RE Attorney to help w/ assignment of contracts here in Atl Ga and I informed the attorney that I am looking for a RE Attorney to assist w/ assignment of contracts.
Well he wanted me to explain what that was. I explained what it was from my understanding and he stated that I wouldn't really need an attorney to assist w/ this until closing. Which I informed him yes correct so then he said he wouldn't have any problem assisting as long as what I was doing was legal. I stated that it was so I then inquired if I could email him a copy of the contract I would use just to make sure. He stated sure however there is a $150 review fee. Wow!!! Maybe I am cheap but I didn't think that it would cost me that much if at all. Does this fee sound about rt?
He also asked was I trying to act as an Realtor and I informed him NO. He wanted to know why wouldn't the investor just purchase the property outright in which I replied that I was basically assisting investors find cheap properties w/ a good amount of equity and in return I would be paid for assisting w/ this purchase.
Can someone tell me what I did wrong here? What should I be asking?
Here are the questions that I have prepared.
Do you or have you worked w/ REIs in the past?
Are you familiar w/ assignment of contracts? or not do you think that this is something you would be able to assist me w/?
How do you bill clients?
Is there a flat fee or do you take a percentage of the net profit?
Are you familiar w/ double closings? (I really don't know what the heck a double closings is, but I threw that in there just in case I ever need to do one I know who I may be able to use)
If ever I needed to double close would you be able to assist w/ this also?
The more attorneys you call the more you will benefit. Here are some things to keep in mind that can happen from making calls to Real Estate Attorneys that have experience in handling Investor style real estate closings.
1. You may be referred to the Attorneys other clients who have done multiple investment closings and have more serious buyers that way.
2. If they are familiar with double closings and assignments they will teach you about the process and assist in making sure all needed documents are in place.
3. Each one you talk to will make you more prepared for the next conversation.
4. Possibly recommendations for other attorneys that are involved in handling estates and divorces, this can lead to people needing to sell their home to settle either a probate or divorce case.
When your asking questions you should refrain from asking for their help if they DON'T have experience in assignments or Double Closing. Chances are they will say yes because any question you ask may be billable time. Also $150 for contract review with revision is not to bad of a price, but it is a rip off of you find an attorney that already has done assignments and they will have those legal documents in their office available for your use.
My attorney has a checklist titled "Matters to be agreed upon for preparation of a Real Estate Purchase Agreement". This is actually an advantage when signing a deal with a seller. There is much less pressure to for the seller to sign an agreement by trusting you. When you involve a licensed 3rd party professional to handle the signing of the contract the seller can be put at ease by this and be more willing to close the deal.
Keep calling and keep asking questions.
Quad City Real Estate Investors Association
http://www.qcreia.weebly.com
Here is the proof of getting a loan to buy a deal with a 585 Credit Score.
http://www.deansmedia.com/play.php?vid=165
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I spoke with my attorney that I've done a number of transactions with, and she stated assigning is legal unless it specifically states otherwise in the contract. That is why with REO's it states right in the contract it cannot be assigned.
That said, if the intention is to assign, it should be stated in the contract to avoid any confusion.
- Tom
Thanks for that input you explained it alot better than I did. I guess I'll get better at explaining what I am trying to do the more I get out there. Since these two attorneys didn't know what I was talking about I am wondering if assignment of contracts are done here in Atl.
You are rt. I hadn't thought about all the possiblities that could come from actually having a RE attorney. I am going to keep looking. Oh yeah, am I asking the rt questions?
for speaking w/ your attorney for me. I thought it was legal here and the 2nd attorney I spoke w/ today stated that it was legal as long as all parties knows what is going on. He seemed like he was alot more REI friendly or open minded than the 1st one even though he wasn't even a RE attorney.