Attorney blew the wind out of my sails

If you really wanted to you might just take the book with you to meet him. I wouldn't think you could explain it any better than Dean does in the book, so why not let him read that chapter?

That could always be an option. Maybe I should reread the chapter myself too. Can't hurt to be better prepared. Thanks!

I too am looking to work with an attorney to close my transactions. I am having trouble finding one who even handles assignment of contract let alone IEE. I would like to use IEE to help regular people get into a home. Almost everyone talks about wholeselling but no one talks about retail buyers. Anyone have any luck with the IEE method?

One thing to tell your attorney is that your are not selling the home your are selling your contract basically... Your getting paid to back out of your your contract that gives you the option to buy the home inorder to let some one else buy the home. even though you found the buyer you still have the option to buy it yourself, but instead your are willing, for a fee, to back out the agreement and let the new end buyer purchase the house. I might have made that a little complicated but thats the jist of it. I have not yet found a real estate attorney yet but am in the process... good luck and hope this helps..

I meant selling your Equity in the contract.....

Hi,
Say you did find that attorney,Would you question they're price!

I would try asking more than one attorney. Maybe this is not a transaction he or she is not comfortable closing. Continued success...........Lubertha

My real estate attorney said he sees RED FLAGS with doing business in this such a way (IEE). He believes we are dangerously close to working as a realtor and said he would contact the Real Estate Commission in my state to find out the legalities about this. I tried to explain what I've learned, with no success. I also called the Real Estate Academy and told my attorney exactly what they told me, word for word. He made the comment that their (DG) trying to sell a product, so they will stand by it, legal or not.

I want so bad for this to work. Do I just go from one attorney to another, and so on? That can get quite expensive. Their time is money.

Can anyone give me more advice on a better way to explain this? HHEEELLLPPP!

Real estate agents gets paid a commission for either providing a service and/or bring an offer to Seller(owner). They would never even think to create IEE for end buyer. They're all about getting the Owner the price that either he/she has stated or darn near close. You, as the investor, are using creative financing strategy to make the deal satisfiable for all parties involve (seller gets their house sold, buyer gets house they want base on banks finance criteria and you investor make a reasonable profit). A real estate agent can't profit off of any of the parties involved in the transaction because the RE commission rules & State laws prevent them from doing so.

keep searching for an attorney...go to craigslist and post what you are looking for...contact other attorneys on there by email or phone and see if they can help ya out...it took me a while to find an attorney for the assignment contract...but finally did, and he helped out a lot...so keep searching

Are you saying that a Realtor doesn't get paid commission if you buy a house through the IEE method? I have a Realtor and he is not going to be happy when I tell him this. I really want to work with retail buyers because I have a list but I have to find an attorney first. Thanks!

The realtor gets paid commission from the sellers sale of the house. So if the seller is listed by the realtor, they automatically know when the house sells, their realtor gets approx 6% of the sale. If you are also using a realtor, they will split that commission with the listing realtor when the sale finally happens.
If the home is listed without a realtor, such as "for sale by owner" then you are responsible for paying your realtor either out of your fee for the sale or include their commission in your offer price total.

Hope that helps.

I think everyone runs into this, the first attorney I talked to told me that he has had 30 years in real estate law and that what I was thinking of doing is totally illegal. I did some additional research and the guy that heads my investment club is an attorney and investor. his name is William Bronchik and he has a book out there called "flipping properties". His book talks a lot about the legalities, and he makes it very clear that selling your contract to another investor isn't illegal. If you really wanted to do your homework, post your question on a law board that gives answers to the community and try and get as many answers as possible from different attorneys. You may find one that has experience with this. Also if you belong to a local investment club, there has to be someone that has a connection. But make sure you understand the laws before entering into any type of transaction to protect yourself. Best of luck

what I was saying (typed). Your REA will get paid a commission regardless of whether you're doing a IEE or AOC. When I said gross price I meant Sale price. They don't get paid off the net proceeds unless otherwise specified. Apologize if I confuse you.

I went to a 3rd attorney today and hit the same brick wall about this being illegal. He (just like the other 2) mentioned contacting the local Real Estate Commission. When I told him, I already did, and they responded as follows. "Although you can perform an assignment of contract to complete a single deal, to do this as a business practice is an obvious attempt to get around the law. This is punishable at the fullest extent possible". That will scare the beegees out of a person. My 3rd attorney also said, if this process has any merit, we need to have the Real Estate Success Team (from Deans Academy) have their attorneys send over documentation proving it has been okayed by the Real Estate Commission in my State. The attorney needs to know this process has a clean bill of health.
I just called the help line and currently await a response.

I will also check an investment club for their advice too. Thanks Buffs28 for the tip.

hey sorry you are having issues. I would like to hear about how it goes with dgadmin attorneys sending over documentation. I don't see how it's illegal because you are selling your contract to another party. Best of luck

i have another idea for you. Do you know anyone that graduated from a university that belongs to an alumni association in your state? Or if you graduated from a university in your home state. Have that person network and try to find a real estate attorney who you may be able to have on your team and give you the answers that you are looking for. I would think that you could have your friend/acquintance or you send out emails to attorneys in his/her alumni network asking your questions and see what kind of response you get. Best of luck

while brainstorming tonight, I actually had a similiar idea to what you had. I was thinking of calling around and asking all the right questions tomorrow morning. Then if needed, I would email more detailed info. That way, I can sort through the answers I get and see if I can locate someone willing to work with me.

Trying to beat the weekend! Thanks again.

tell your attorney..."The amount may be indicated on final HUD Statement, page one, under Section 500. This fee is in compliance with RESPA Regulation Sec. 3500.14(g) (1)(iv)." In fact you can disclose it in you Investor Disclosure/discharge...its what I do...

________________

For a dream cometh through the multitude of business; and a fool's voice is known by multitude of words.
-Ecclesiastes 5:3

A feast is made for laughter, and wine maketh merry: but money answereth all things.
-Ecclesiastes 10:19

PLANT YOUR FLAG! STAKE YOU CLAIM!

DOMINION!

thanks for the detailed information. I passed it along to my broker, who said they will check with their boss. If I get good news, then I'm ready to rock n roll. I have an appointment with an attorney on Friday to explain my investing style. Do you have any tips on how to present this info to the attorney that won't scare him off. The last 3 I met with and 2 I emailed couldn't have turned me away fast enough. I explained assignment and IEE to them.

Recently I was invited to an REIA meeting by one of the Investors on my buyers list. I arrived at this meeting and learned valuable information by the guest speaker. After the speaker was done, I was introduced to the group by my host and KABAMMM!!! I had four new cash buyers on my buyers list.

Long story short, because all these Investors knew that I was GREEN...they directed me to the Attorney that they all use who knew how to deal with Investors already. And I met with her for fifteen min. to go over what I was doing and now she is explaining how I can start Lease Options in my area on top of IEE's and Assigns.

Word of mouth will get you there. Make some phone calls and get to an Investor's Meeting. These people who have been doing this for years will be more than happy to guide you to your next step.

Surround yourself with the people you would like to be.

Warm Regards,

Jason King

Hello,
One of the things i took from DG was,(part one BARM)We are the deal!I really need to put the info in action and the way i will do that is too-Buy and sell property.That is end of sentence!!!
The best i have heard is...Control is Legal.One other thing,They're three things you will do in your life-time,Be born-Pay taxes-Pass on.
So pay your taxes and when the day comes,have peace-In the mean time...An attorney is a very power team player that is very important too covering your 6.I think the IEE brings more paper with it,That maybe an attoreny would be cautious about stamping. These are only my thoughts! And remember "If somebody tells you NO,You can make into an YES"!

Thanks for the update Mr. King,
I don't have a local investment club to join, but by networking on this site, was invited to one about an hour an a half away. I am going to it tomorrow night @7. Get this, the guest speaker, is the same mortgage broker I have used time and time again over the last 10 years!!! How cool is that.

Thanks,
The other J
Jason J.

Isn't it great when you get that divine tugging at your soul. It's a great feeling. It lets you know that you are doing everything right. And hey, you never know just what's going to happen at this meeting. The right people have a mysterious way of showing up at the right time.

Good Luck!

Jason King

I would just be up front with your seller if you go in and make an offer. I heard of someone actually using a tape-recorder with a seller so that if they tried to sue them, it would be on recording. This protects you(the investor). Just be straight with people like Dean says in his book. I have found that in business when you are straight with people, they are much more likely to trust you. How many times have we come in contact with someone that seemed sort of fishy and turned away from them? At least that's what i've done. I don't want to deal with someone that isn't honest with me. Keep me posted and good luck

I met with one attorney who found my website and we met for lunch. I told him about the IEE and he scratched his head and wanted to know more. I was expecting some sort of resistance and I think he was thinking that I was going to describe the double closing. When I told him he was very receptive and told me he would review the documents Dean gave and addend them with anything that had to do with my particular state but he didn't have a problem with the concept at all. He's has his RE brokers license as well and has experience negotiating short sales so this could be a nice fit.

I also, met with a short sales team consisting of an attorney, a negotiator and a salesman (who was a mortgage broker for 23 years at Countrywide). They are all on the same page and right now they have 122 properties signed and in their pipeline to close over then next 4 months. We met for drinks and it looks like I will be meeting them next week to discuss working within that framework while I get my feet wet. I can find the deals, draw up the paperwork with the homeowner and they will take it from there through close. I will, of course, be around throughout the process. I will be present during the banks appraisal to do everything to point out things that will bring the home value down (more profit for me) and will be the one who keeps in touch with the homeowner until the short sale is complete. I want to be the face they remember when all their pain and worries are finally lifted. Because I care and because it is good for business. I want them to refer me, not these other people. (ONE NOTE: This group does double closings, not IEE) Anyway, in this scenario there would be no risk to me but I would split the profit. I am going to see if by freeing up my time to find more deals and handing them over for this team to finish that I can make more than if I went through the long process myself. To compare I will do a couple on the side all the way through to close to see the difference in $$$ to me. But they were very cool about allowing me to sit through the process with them and learn.

REAL long story short... simply find a different attorney. There are open-minded ones out there. Attorneys can be elitist my nature and if you've found one that has never heard of IEE he/she might feel threatened and will try an make you feel that it can't be true if he/she never heard of it. Move on!!

Oh - and go make some money!!! = )

Greg - www.porchlightpropertygroup.com

Thanks for the tip. I must say you have a gorgeous website. I was thinking of creating my own, but wouldn't know where to start. Yours looks very professionally done!

Thanks,
Jason

Hi,

Where do you live?
Maybe there is someone from this site who lives close to you and has an attorney they can recommend?

This site is one of the best RE resources.

Angela

Jason,

Thank you for the kind compliment. I was a web designer in a past life so I am fortunate to be able to wade through without too much suffering.

Did you happen to look at Dean's free sites. I haven't seen them but they might be something to get you started. There are also a number of services out there throughout the Internet that offer templated websites for about $20.00. You can customize them enough to make them look original and there is no need to code or do anything like that. Works similarly to Facebook in how you add pics and text, etc. I know a lot of people who have done them that way and they look quite nice. Research a bunch though before deciding. There are surely levels of design quality.

I can try and answer any questions you may have as you do your research.

Greg
www.porchlightpropertygroup.com

Hi,
Nice site!