Re: Help: Paralysis of Analysis (long) - Posted by Brad Crouch
Posted by Brad Crouch on June 17, 1999 at 12:32:47:
As you know, I’m no attorney. But I have a couple of comments.
I have modified the top drawer of my lateral filing cabinet to accomodate legal sized folders. Then I took all the documents from Bill Bronchicks course on being your own RE lawyer and modified them all, formatting them for legal size and polishing them up a little (in terms of placing borders, making certain that all the paragraphs/clauses were sequentially numbered, etc.)
I then labeled each folder with Bills numbering system and printed each document three times on legal sized paper. One of each of those copies is for my beiefcase so I’ll have every form I could possibly need, with me all the time.
I have not yet had an attorney review the documents for applicability with California law, but I will (I sort of got sidetracked with studying the PACTrust stuff). Just not all at once . . . only the ones I plan to use right away. When I do take the documents to a lawyer (when I find one I like - like finding a needle in a haystack), I will tell him to REVIEW the documents, but NOT to alter or rewright them.
I believe that no contract is “bullet-proof”, but that the Bronchick contracts are about as close as you can get. Bill is not a stupid guy and he uses his contracts every day. But in Colarado, not in California or Arizona. So I think that getting a local attorney to review the contracts is a good idea.
Even with this “legal review” though, you should anticipate having problems at some point. That is how good contracts are made even better . . . through years of use and modification. You eventually end up with a very good contract. The essence of creating a contract is documenting an agreement that you already have, and providing for the responsibilities of each party, and preparing for unforseen events. This last part is sometimes the hardest, depending on our level of experience. I think the more experience we have, the better our contracts are.
Part of the education we receive, is the mistakes we make. I really don’t think there is an “easy way” to get the experience we crave. Hopefully, the mistakes we make won’t “break” us. I guess that’s why we depend on professional people, and their expertise to keep us out of trouble while we try new things.
The problem is that your “focus” is subject to change. You’ll learn about something new, or safer, or possibly more lucrative, and want to try that. This will mean different documents are needed. The PACTrust is a good example of different documentation being needed. All that “legal sheild” stuff means more precise documentation.
I had one attorney tell me that the lease and option agreement should be combined into one document, and that it would work very well . . . if it were written “correctly”. He was a RE lawyer, but had no clue! He couldn’t even tell me how to circumvent a DOS clause. He told me that the results of his intensive research on this subject was that it “WAS enforceable”. He didn’t know anything about trusts because this was a “different specialty” having no relationship to Real Estate. What a dork! And for $350 per hour!
If we only had a lifespan of 100,000 years or more, we wouldn’t need attorneys at all. In the meantime, we have to “make do”. The point is that you have to make finding a good RE lawyer, a time consuming project. I’m told that sometimes good RE lawyers can be found at title companies.
Hope this helps some,