Posted by Leonard on September 26, 2003 at 13:37:01:
Thanks for the advice. I plan to also have them sign a limited power of attorney. I’ll let you know how everything goes.
Docs needed for a ‘subject to’ signup - Posted by Leonar
Posted by Leonar on September 26, 2003 at 10:01:12:
I will be meeting with some folks to sign up a property subject to their existing financing. What will I need to have them sign? I will be paying them $1 only.
This is a first deal and I’m not sure about the use of a purchase agreement, warranty deed, quitclaim etc. I do plan to have them execute a limited power of attorney. Thanks for any help and advice.
Re: Docs needed for a ‘subject to’ signup - Posted by Hank FL
Posted by Hank FL on September 26, 2003 at 23:01:34:
Food for thought:
Re: Docs needed for a ‘subject to’ signup - Posted by Brent_IL
Posted by Brent_IL on September 26, 2003 at 10:38:41:
When the paperwork is screwed up the detrimental effects could be long lasting. Is a cost of $1 + $500 for legal fees still acceptable?
I’d use a qualified real estate attorney on the first one. The law firm will bill you or they will be paid out of escrow. After the first one, you?ll know how to change the names and numbers on copied docs to lower costs. This stuff is too important to wing it.
Re: Docs needed for a ‘subject to’ signup - Posted by Leonard
Posted by Leonard on September 26, 2003 at 10:48:10:
I can appreciate that. I work as a mortgage broker and have had to deal with messed up titles. So my that brings me to the logistics of meeting with clients and getting things signed up. If you meet clients at a property and you work out a deal, do you then need to schedule a second meeting to actually sign docs etc. It seems that you lose the effect of ‘striking while the iron is hot’. Help me out here as I may be missing your direction. Thanks.
Re: Docs needed for a ‘subject to’ signup - Posted by Brent_IL
Posted by Brent_IL on September 26, 2003 at 11:09:56:
The starting point is the contract to purchase real estate, i.e., your offer. That’s the “striking hot” time. A deal that isn?t locked down isn?t a deal. It can be taken away from you. Most of us who negotiate with individual sellers focus on getting an offer accepted that we formulated based on information that has yet to be verified. We use contingencies during the due diligence period.
Everything else can be handled in escrow by qualified people.
for Brent_IL - Posted by bill
Posted by bill on September 26, 2003 at 13:17:41:
Hey Brent
Would you fill out the purchase contract yourself or have your attorney do that also? I have an attorney who wants me to get a verbal offer from the seller and then have them come in to the attorneys office for the purchase agreement and any other paperwork. I have looked for a different attorney but have had no luck finding one who knows about CREI. Thanks…
Re: Docs needed for a ‘subject to’ signup - Posted by Leonard
Posted by Leonard on September 26, 2003 at 11:22:38:
So at the meeting with the sellers the only document that I need to get signed, then and there, is the purchase agreement wherein all the details of the deal are spelled out, is this correct? That agreement then goes to title/escrow office and they draw the ‘final’ docs for the sellers to sign. Please confirm. Thanks for all your help.
Re: for Brent_IL - Posted by Brent_IL
Posted by Brent_IL on September 26, 2003 at 15:43:48:
Attorneys aren?t usually going to be familiar with creative real estate. The search may take a while. Lawyers that have experience with commercial real estate and who are willing to do residential real estate work are a good place to start.
When I fill out a contract, I am not making an offer. I am making a sales presentation. I?ve rehearsed every word. Every point that I want to make is made in the same order every time, so I don?t miss anything. I keep asking questions until the seller?s needs and my wants reach a crossover point and continue on a parallel path, or until the sellers decide to run or to throw me out.
In essence, the sellers are continuously making offers. My job is to find a profitable way for me to accept.
Re: Docs needed for a ‘subject to’ signup - Posted by Brent_IL
Posted by Brent_IL on September 26, 2003 at 13:31:58:
Most of the time that’s correct.
If there are documents that you anticipate you might have trouble getting signed at a later date, get them signed at the same time. I use a contract that is weighed pro-buyer to the point of insanity, so when the purchase contract is signed, I have sellers sign a performance mortgage on the subject property securing their compliance with the terms of the contract for sale. If I know in advance that I?m going to do something weird, I have them sign various addenda at the same time.