recommendations on contracts

[chitown83 0]

Now that I know what I need to have on me when meeting sellers, where is the best place to get all the forms? Should I go through an RE lawyer, or get online forms and modify them myself and have an attorney review them? Just wondering how the pros go about it.

Thanks all.

[MichaelC 160]

Jim, the contracts and agreements you decide upon using is a personal matter. No one can say mine is the best one, or the only one to use.

My variety of agreements were originally drawn up for me by an attorney, many years ago. Over the years, they have been refined and tweaked as situations arise and I realized that deleting or adding a particular sentence or clause would be to my benefit.

You can go through a real estate attorney if you so chose. That might be pricey but, a bigger concern, is whether or not he is experienced in lease options and understands what you as an investor want and need in your contracts.

Just a few days ago a new investor contacted me with this same question. He was picking up some the Lease Option Agreement his attorney had drawn up. He attached the copy to get my opinion.

Honestly, I couldn't believe how deficient it was. I told him he is free to use it if he wants, but I would never go near a deal with that. He went back to this attorney who sheepishly admitted he was not familiar with lease options, and that this investor was better off looking elsewhere for an agreement that would provide more thorough protection.

As for online forms, my experience is they are fairly generic. Maybe someone else could come along and say otherwise regarding downloadable agreements.

[Summer 0]

Talking about attorneys...

Are there questions to ask that would better ensure getting a RE attorney that is competent in creative finance?

A friend recommended a RE attorney that he used for a short sale, but he mentioned that this attorney didn't know what a short sale was prior to talking to him. He decided to use this attorney anyhow just to read through the contracts he devised. Seems a little disappointing.

 

Michael - I noticed you've done successful deals out in NM. Anyone you can recommend?

 

Are we as investors better off fending for ourselves?

Thanks!

Summer

[MichaelC 160]

Hi, Summer. The best way to assure you are dealing with a competent attorney, (or any professional for that matter), is to ask around for recommendations and referrals. Individuals who share your interests and techniques would be a good place to start. Perhaps some real estate clubs in your area would be a valuable source of info for this.

Are we better off fending for ourselves? Depends upon how far you want to take that. When dealing with legal matters, tax matters, etc., I would need to say no. Learn to recognize when you need assistance and then get it. A few dollars spent today may end up saving you many thousands tomorrow.

Let me just say I am not advocating calling an attorney for each and every deal you do, however. In fact, quite the opposite. You will find, Summer, that a routine lease purchase transaction should not require the services of an attorney.

Are you in NM? I'm sorry to say I can't recommend an attorney. It's been a few years since I've been out that way, and NM is one of the most laid back States to work real estate deals. I all but never had a need for the services of an attorney. When I did have a question, my friend at the title company would ask the office attorney.

[Summer 0]

Thanks for your advice. There are 2 real estate clubs in Albuquerque that I would like to attend meetings at. Yes, NM is extremely laid-back in all matters. No one has an attorney present at any RE closings here. That could work to my advantage.

 

I will get referrals from others as you suggested.

Many thanks.

Summer