transactionsengineer

Simultaneous Closings and Sub2 are two separate techniques.

I just got off the phone with a call I first received Sunday. He is very interested in the mobile home and has the option money. He loves the rent 50%rent credit and the fact I included the park fee in the lease money. Damn. I didn't even get the arrow signs out or the ad in the paper. He called me off my yellow hand made corplast signs I get for less than 50 cents each. I haven't had many calls but I got the CA from the 10 signs and I got a good chance at turning this CA off those same signs. Damn I might have to give up skiing if its like this. <{POST_SNAPBACK}> Great job. I love hearing about people succeeding in real estate. Keep it up. Dan

Adam, I wouldn't say 'Never Judge Realtors' since I'm known to comment on many realtors. You're lucky to find one that was educated and decent. I believe for the mass majority of "professionals" in real estate, I am correct in my assessment. Daniel

Funny. Doesn't pay enough to allow me to become directly involved. How Title Insurance Works First let us deal with how title insurance works. Title insurance is a contract given to you and your lender to indemnify against losses arising through defects in the title to the property. That means the chain of ownership on the property is accurate as stated in the title, and all liens, if any, have been satisfied and removed from the title. From the title search, the title examiner will produce an opinion of title, from which insurance will later be issued. Title insurance protects you against hazards of the past, unlike other forms of insurance, which protects you against future events. Title insurance is also a requirement by your lender. You cannot purchase a home and take out a mortgage on the property and not purchase title insurance. You will receive an Owner's Policy in the amount of the purchase price and this policy will insure the title to the property for as long as you or your heirs own the property. Your lender will receive a Lender's Policy to protect them for their security interest in the property (the mortgage they give to you). Your lender will receive a policy in the amount of the mortgage loan. I have underlined the main reason why your title company is informing you that your title is clean. You paid a title insurance premium at closing to receive insurance to protect from hazards of the past. Who to Sue and Why? Second let's deal with which parties you should bring a lawsuit. From the parties that you have identified in a previous posting, I would bring a lawsuit against the construction company or a "subpoena duces tecum" (Latin for "bring with you under penalty") so the construction company is required to bring the original documentation to court. I would bring a lawsuit against the City of North Miami because the head inspector was unwilling to make the necessary corrections. I would also attach a prejudgment attachment on the assets of both the construction company and the City of North Miami. There are laws in all states on prejudgment attachments to seek out and freeze assets. In addition to all this, I would make a motion to prevent the construction company from destroying evidence and make available to the court the copies of the documents previously sent. Seeking a Legal Professional If I needed to seek a legal professional, I would look to directories that rate the performance of the legal professional. In this situation, I would want someone that is a certified real estate attorney and has litigation experience. Here is a suggestion: Martindale Directory Daniel Ng, JD/LL.B Author of The Real Estate Investor's Guide to Pro Se Litigation. As a Pro Se Litigant, I've learned a few tricks here and there. Others think I don't play fair but the law allows it.

Dan, Tell us a little about your project !! Frank <{POST_SNAPBACK}> With respect to MichaelC and his intention with this site, this is not the place to tell everyone about my soon to be released publication. I will send you a PM about it so we can continue to deal with individual situations in this category. Daniel

Steve, The situation here is a bit more complex and requires the cooperation of the construction company. Your situation is simple and therefore do not need to resolve it in the presence of a judge. In my opinion, this situation needs to be addressed by a court ruling to provide proper title. Daniel

Since you have $20,000 at stake, I would like to reiterate what my professor on negligence repeatedly stated in class, "When in doubt, sue everybody". The remedy usually for removing a cloud on a title is to bring a proceeding in court to firmly establish in law. Only the establishment in law will give you the peace of mind that you seek. Read my previous message on this topic. Daniel Ng, JD/LL.B Author of The Real Estate Investor's Guide to Pro Se Litigation. Publication is not yet released but advanced marketing never hurts.

He's already bartending! <{POST_SNAPBACK}> Good, let him pay the lease payments or mortgage for a while.

The remedy usually for removing a cloud on a title is to bring a proceeding in court to firmly establish in law that you own the land. If I were in your situation, I would bring a lawsuit against the City of North Miami's building department who handles inspections for the contractor work. I would prepare all the paperwork and have valid signatures by the contractors as proof that the work had a final inspection. If you have a problem with the contractors or they refuse to participate because it is a legal action against the City, either get a subpoena packet or enjoin all the parties into the lawsuit so they all have to get lawyers but inform the judge that you are taking this action because the contractors would not cooperate. In law school, the professor on negligence used to say, "When in doubt, sue everybody" First, hire yourself a lawyer who will file a lawsuit against a government agency or do it yourself. Government in the USA do not have sovereign immunity so they can be sued. There is a plethora of law in support of the Pro Se Litigant. Second, get all the proof and ask the contractors to appear in court as witnesses, get a subpoena packet or enjoin them to the lawsuit if the contractors will not cooperate. If you want to require a person to bring documents or other items, you will need a "subpoena duces tecum" (Latin for "bring with you under penalty"). Third on the day of court, bring the subpoenas with you. If someone does not show up, the court may have a bench warrant issued for arrest. (As a personal note, I would rather enjoin the parties so they would have to defend their actions because witnesses are sometimes incompetent and are not held liable for their actions) If you have hired an attorney, the attorney would handle all this stuff for you. Daniel Ng, JD/LL.B Author of The Real Estate Investor's Guide to Pro Se Litigation. Publication is not yet released but advanced marketing never hurts.

Adam, Don't drink too much. I read somewhere on this forum that you now have a new son to raise. Daniel

I use the basic information sheet so I do not need to repeat myself. For some reason the written word is accepted as authority by sellers and buyers. If it is written, it's believable. Daniel

This was reposted from another message so that more people in the New York investing market can benefit from the information. There are many uneducated realtors and other related professionals who are simply unfamiliar with what the law actually states. I hope you find great benefits in the information. I am a full time investor and use this same argument with realtors who make the claim that I am doing something illegal. Strangely enough, they don't respond after I tell them how wrong they are and I never hear from them again unless they respond to a posting about one of my homes for sale. All the best, Daniel

Adam, Glad you enjoyed it. It is one of my information sheets for sellers and prospective buyers who just want more information. Most have never heard the terms Lease Purchase, Subject to, Simultaneous Close, etc. I'd rather have an information sheet to hand to people so I don't have to repeat myself a hundred times a week. Please feel free to copy it and make information sheets to hand out to sellers and buyers when they ask you to define a method. Daniel Ng, JD/LL.B (Honours)

Hey Big H, Notice that this information below is gear toward helping you become a lease options buyer and seller, not information to become an investor. You can direct your seller to: Century 21 Lease Options OR Give your seller this information: How to Do a Lease-Option on a Home A lease-option is an agreement between a buyer and a seller that allows the buyer to lock in the future purchase price, save money for a down payment and buy the property in the future at current prices. It can be a win-win situation. Steps: 1. Agree with the seller on a purchase price. 2. Agree on the term of the lease. This will be the maximum length of time you want the opportunity to exercise your option to buy. 3. Determine a market value for your monthly rent. (This is the amount a person would pay to simply rent the property.) Then add $25 to $200 per month to be applied toward the future down payment of the home. (This is not a requirement, but it helps you accumulate money for a down payment.) 4. Agree upon terms regarding the exercise of the option, such as the escrow period and financing. 5. Determine who will pay for inspections, work and warranties when the time comes to complete the purchase. 6. Go to your local Board of Realtors Association or real estate company and purchase a lease-option agreement form. 7. Handle the transaction as a lease until you are ready to exercise the option. 8. Exercise the option in writing. 9. Open escrow or contact a real estate attorney to handle the transaction. Tips: Escrow is not required until you exercise your option to buy. You may be asked to put up option money for the privilege of having the option to buy. Warnings: All option and additional rent monies paid to the seller are nonrefundable if you do not exercise the option to buy. You must delineate all terms of the purchase at the time you make the lease-option agreement. If home prices go down, you will have to choose between buying the property at the originally agreed-upon higher price and losing the option money. Cooperative Assignment We will structure the deal, find the tenant and divide the up-front money. If you are willing to give us a break on the price, we will find the tenant for us, and stay in the deal until the tenant/buyer actually buys the property. We will handle all paperwork, manage the property, guarantee all rents whether occupied or vacant, take care of all repairs, and only call you when we are ready to close. This plan is for those who don’t relish the “tenants and toilets” routine, and want to get on with their lives. ---- If this short brief is not sufficient, he can search the internet like everyone else or buy MichaelC's book and become an investor. Daniel Ng, JD/LL.B (Honours)

Here is a lesson on contract law and consideration: One of the other important elements of contract law, which is difficult for the non-lawyer to understand, is the requirement of consideration. One 1875 English case, Currie v. Misa, offered a definition of "consideration" which is still used: ".. some right, interest, profit or benefit accruing to the one party or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other." As such, a contract differs from a gift. This also explains why you sometimes hear of very expensive objects sold for $1; which is done to ensure that what is essentially a gift, comes with the legal protection of contract law. Under contract law, there is no contract if there is no consideration. But consideration does not necessarily have to be quantified or quantifiable in monetary terms. Any discernible detriment to one of the parties could be that party's consideration. In one case, Hubbs v. Black, 1918, agreeing not to take a certain plot in a cemetery was considered to be sufficient consideration. Giving a right to sue on a "bona fide" claim has been deemed to be adequate consideration. Also, the courts don't really care about the adequacy of the consideration. This is the business of the parties and not a matter for judicial interference. There is one exception to the requirement of "consideration" and that is a "deed", which is a contract "under seal" or a "specialty contract". In centuries past, persons contracting would drip a drop of hot wax on the bottom of the contract and press a family ring into the wax, thereby signifying consent to the terms of the document. Nowadays, deeds are used mostly in contracts that involve real estate. If a contract is a "deed", then no consideration is required. If charitable donations are made under seal, they are valid contracts even though there is no valid consideration. Daniel Ng, JD/LL.B (Honours)

MichaelC, Thanks for the support. Jeff, Remember, this forum is your team and your team has many years of combined experience to making deals happen. If you lack the confidence when a seller asks how long you have done this, you can honestly tell your seller that your team has a combined experience of XX number of years. Make up a number because I'm sure it is astronomical. Daniel Ng, JD/LL.B (Honours)

Frank (OH), A builders association is like any corporation. I prefer the top down approach. Write a letter to the chairman or president of the board of directors (BOD). If you want an impact on the BOD to take action to contact you, have your accountant write a letter on your behalf. This shows that you are important and your accountant is asking the BOD to take notice. BODs sit on a pedestal waiting for adoration. You have to set them up correctly so they see you on an equal footing. Your letter will be opened by the most important person in that organization, the secretary to the chairman or president. He or she can direct your letter to the appropriate office, give you a call, or set up an appointment for you to do a presentation. You must be comfortable doing a financial presentation because you may have to present it to the entire board. If you believe in yourself and what you can do, you should have no fear. Daniel Ng, JD/LL.B (Honours)

Here is a link for the New York State Division of Licensing Services. It clearly defines a real estate broker, agent, and tenant relocator. http://www.dos.state.ny.us/lcns/lawbooks/re-law.html Below is the response I gave to an uneducated real estate agent in New Jersey. It can be used in all states. My Response - On a first read through, it seems to say that no one can buy or sell, lease, rent etc without being classified as a Real Estate Broker/agent. But if this were the case, then no person could rent, (much less buy or sell their own home) without having a license. It would also keep investors from buying a home with the intent of resale for a profit or to rent. So there must be something in all these statutes which exempt people from having to have a license. It is usually found in just 2 simple words hidden somewhere in the definition of a real estate broker. Here they are... “for others". Remove those two words from any of these statute definitions of a realtor and automatically everyone even thinking about buy or selling or rent a home would need a license. The words “for others” create an "agency" relationship between two parties. If you do something "for another's benefit" or in their best interest, you have formed this agency relationship. These words imply that the agent will do "what is in the best interest" of the party they are being employed (or paid) by. Since there is a legal responsibility to do what is in the best interest for another, then the State is allowed to oversee that action so as to prevent the person put into this "trusted" position to be capable of completing the transaction to a certain state standard and to be fair and work in the best interest of the paying party. However, as an investor, I am not working "FOR ANOTHER"; I am certainly not in an "AGENCY" relationship. I am working "MY OWN" best interest and I am trying to negotiate the best deal for me, not the seller/buyer. I am in what is called an "ADVISARIAL" relationship. There is no licensed required since I am not working on behalf, or representation of another. Read the statue again and find those two magic words that allow private investing without having a license. In addition, a contract on property provides Locus Standi (meaning Sufficient Interest) in the property to sell the property as if you owned it. You can advertise property that you own or control.

Jeff, I just love situations like this from uneducated real estate agents and those who believe them. Please get the name of the real estate agent, the real estate broker, and contact information for that brokerage. Forward a complaint to the New York Real Estate Commission that the sales agent and real estate broker has practiced law within New York State without a license. Here is a link for the New York State Division of Licensing Services. It clearly defines a real estate broker, agent, and tenant relocator. http://www.dos.state.ny.us/lcns/lawbooks/re-law.html Below is the response I gave to an uneducated real estate agent in New Jersey My Response - On a first read through, it seems to say that no one can buy or sell, lease, rent etc without being classified as a Real Estate Broker/agent. But if this were the case, then no person could rent, (much less buy or sell their own home) without having a license. It would also keep investors from buying a home with the intent of resale for a profit or to rent. So there must be something in all these statutes which exempt people from having to have a license. It is usually found in just 2 simple words hidden somewhere in the definition of a real estate broker. Here they are... “for others". Remove those two words from any of these statute definitions of a realtor and automatically everyone even thinking about buy or selling or rent a home would need a license. The words “for others” create an "agency" relationship between two parties. If you do something "for another's benefit" or in their best interest, you have formed this agency relationship. These words imply that the agent will do "what is in the best interest" of the party they are being employed (or paid) by. Since there is a legal responsibility to do what is in the best interest for another, then the State is allowed to oversee that action so as to prevent the person put into this "trusted" position to be capable of completing the transaction to a certain state standard and to be fair and work in the best interest of the paying party. However, as an investor, I am not working "FOR ANOTHER"; I am certainly not in an "AGENCY" relationship. I am working "MY OWN" best interest and I am trying to negotiate the best deal for me, not the seller/buyer. I am in what is called an "ADVISARIAL" relationship. There is no licensed required since I am not working on behalf, or representation of another. Read the statue again and find those two magic words that allow private investing without having a license. In addition, a contract on property provides Locus Standi (meaning Sufficient Interest) in the property to sell the property as if you owned it. You can advertise property that you own or control. YOUR SELLER AND HIS BROKER ARE IDIOTS. Could it be that the real estate "professionals" can't read? Go forward and teach the uneducated. Get the deal done. Daniel Ng, JD/LL.B (Honours)

Craig, Read the verbage I have provided. In most states, it is now $10 or more. Put any amount you want on it. I've put in $10,000 - $20,000, PAYBLE AT CLOSING. No Closing means the contract was incompleted as Doug states. Thanks Doug. Daniel

Doug, Stick to law and use the word default. If you like null and void, don't do the deal. My contract is geared toward protecting me and is weighed heavily toward me. Even if I use a general state approved contract, a few words placed in different areas will make the contract geared toward protecting me. Jeff, I was not talking about a short sale. It is true that in a short sale, the seller receives no money but you can do a side deal by purchasing his fine china set for some money. Just don't let the lender find out. This topic is on simultaneous closings, not the short sale. If you want information on the short sale, your questions were addressed under a different heading. Daniel

Hi Dan: If you get a good birddog who really gets you good deals and does some good research for you. He is worth it. The deals he hands out go to the investor who pays. The $500.00 is only paid out when the deal is complete and you got the option money. But I am going to try the $200.00 to start. Craig <{POST_SNAPBACK}> I don't like giving away cash. I know you agree with this. Dan

My contract states that earnest money is payable at closing. If there is no closing, there is no earnest money paid. Here is the exact verbage you requested: EARNEST MONEY: Within 60 days of the execution of this contract by both parties, Buyer shall deposit $10,000 as earnest money with (Any Company) as escrow agent, at (Any Location) payable at closing. If Buyer fails to deposit the earnest money as required by this agreement, this agreement shall be in default. This statement is not true. Your definition is an issue in morality, not legality. Contracts are promises that the law will enforce. The law provides remedies if a promise is breached or recognizes the performance of a promise as a duty. Contracts arise when a duty does or may come into existence, because of a promise made by one of the parties. To be legally binding as a contract, a promise must be exchanged for adequate consideration. Adequate consideration is a benefit or detriment which a party receives which reasonably and fairly induces them to make the promise/contract . The seller makes a choice to accept my contract. I fully disclose that I am arranging a simultaneous closing and that if I do not find a buyer, I will default on the contract. The term is 60 days. I don't tie them up like realtors who will have agreements of 6 months to a year. Read my first line. What will the seller sue for? Daniel

New Orleans is a good investment. How often do they get flooded by a hurricane? It isn't like you are looting stores. Investors are helping to rebuild the economy so buy it up and make money. The only thing I don't understand is why CNN reports survivors of Katrina as refugees. Aren't they still Americans? Dan

I state in my contract that earnest money is paid at closing. If the contract defaults, no payment is paid to the seller because there is no closing. Also, I only tie up a home for 2 months maximum because if I can't locate a buyer within that time, the home is over-priced or the market is not responding to the home. In any case, I will have no responsibility to the seller. I care about what is legal and good financial planning. If you are concerned about what is moral or ethical, you are free to buy the home yourself. Nobody is stopping you. Dan