Help! I screwwed up..L/O - Posted by Kristy-AZ

Posted by Del-Ohio on October 03, 2003 at 10:26:21:

I agree with you, I was merely pointing out what kind of advice people tend to get from most attorneys, NOT that people shouldnt find a good one.

I have found an excellent banker, a couple good realtors, an excellent accountant, and pretty good RE attorney at this point, all professionals essential for our real estate business.

Now if I can just figure out how to find that good woman, I cant live without I will be set.

The best strategy for finding good professionials; asking other successful people in your field for referrals, interviewing them, hiring them if you mesh. Does not seem like the best strategy for finding a quality member of the opposite sex.


PS I have read all your how to articles on CRE ONLINE. Flipping Properties is a great book, it is on top of my Reccomended List. I have given away numerous copies to friends, as well as to people who ask me for advice on getting started in the real estate game. Excellent book !! and in my opinion the BEST way for people to get started if they dont have credit, cash or relevant experience.

Help! I screwwed up…L/O - Posted by Kristy-AZ

Posted by Kristy-AZ on October 02, 2003 at 18:38:09:

Hello all,

It’s been awhile, just finished 2 rehabs and getting ready to take a vacation.

Here’s my problem…

We L/O a house a year ago to a buyer. We didn’t have the best of paperwork (i.e. Lease Agreement and Option Agreement.) So we turned to another investor who has been doing this for awhile. After reviewing other forms I have found numerous mistakes in our Lease Agreement and Option Agmt.

We gave the Tenant/Buyer 2 years to perform, however, he has been late 3 times with his rent payments. We just sent out a 5 day Notice. I want to get this Tenant to sign a NEW Rental Agreement and Lease Option Agreement and need to know if I can do this legally, since we gave him 2 years to excersize his Option.

Since he has been late, he has given up his right to the Option, but since our paperwork is little “ify”, I want them to sign new papers that give us more protection.

If anyone has any suggestions on how we can handle this it would be greatly appreciated!


Please don’t screw it up further… - Posted by William Bronchick

Posted by William Bronchick on October 02, 2003 at 21:13:56:

There was a discussion thread last week on this board in which someone said that hiring an attorney wasn’t necessary “until you have a legal problem.” Obviously, hiring an atty to do the paperwork right in the first place prevents legal problems, as you have discovered.

Of course, I don’t want to pour salt in the wound with the “you should have used an atty in the first place if you were unsure” speech, but let’s not compound the problem. Hire an attorney to review the contract you currently signed and get a legal opinion as to where to go next.

This is an important lesson to everyone - if you aren’t sure of what paperwork to use or how to fill out a form, hire an attorney to do it. It costs a few hundred bucks up front, but saves you thousands of dollars later.

Good luck!

Re: Help! I screwwed up…L/O - Posted by rm

Posted by rm on October 02, 2003 at 19:08:04:


The late payments would make it difficult for the T/B to qualify for a loan.

More likely than not, s/he’s got other “lates” as well.

Re: Please don’t screw it up further… - Posted by William Bronchick

Posted by William Bronchick on October 03, 2003 at 08:38:49:

Gee, maybe I should create a nationwide law firm, like “Jacoby & Meyers”?

Appreciating the value of an attorney - Posted by Del-Ohio

Posted by Del-Ohio on October 02, 2003 at 22:52:16:

Before reading you comments, I had just read an email from a friend who went to see her attorney today for advice.

Here is an excerpt from her email. Thought you might appreciate what the average investor gets when asking an average attorney for advice.

It seems a lot easier to find a good contract than a good real estate attorney.

The attorney said there is no reason to set up an LLC or any other entity - the only purpose for that is liability protection, and all you really need is enough liability insurance to cover your net worth. LLC’s and S Corps are pass through entities, which means, you are taxed the same as if you had no entity. And I can still take deductions for expenses, just doing business as myself, which, I do


Re: Appreciating the value of an attorney - Posted by William Bronchick

Posted by William Bronchick on October 03, 2003 at 08:32:24:

You can say that about the opposite sex, too, and be single your whole life. Or, you can look for a good mate and be happy.

Same goes for attorneys, bankers, brokers, etc. There’s a lot of bad ones, but once you find a good one you don’t know how you lived without 'em.

That’s about what I got. - Posted by js-Indianapolis

Posted by js-Indianapolis on October 03, 2003 at 01:55:26:

There’s an ad for an atty in the Yellow Pages here. Big, “Real Estate Specialist, Commercial or Residential” blah, blah, words, words, garbage, garbage, garbage. He’s all about the Real Estate, and is spending a LOT of money to let everyone know. What does he say when I call?

What do you want to buy in a land trust for? No, I am not going to set up a double close. You’re going to get busted if you try to do a double close. You really need to look into the legality of some of these things.

Gee, Matlock, you just cracked the case. What an idiot. Had no luck finding anyone in the beginning by calling around. My “team” was built piece by piece from referrals from other investors who had actually USED people to close creative deals. Even have a title company that can handle trusts now. Amazing.

Hey, I found out double closings aren’t illegal either. WOW!

REIAs - Posted by Hank Fl

Posted by Hank Fl on October 02, 2003 at 23:24:56:

Finding good professionals is not as tough as one might think once you observe who the experienced investors use.

I’ll be suit’n up to get back in the game again, and when I do, you can be sure I’ll have a proper attorney.