Well I went to alwyer today and for an intial consultaion I was charged $200, which I thought was high but I chalked it up to education exspenses. Anyway I wanted a four contracts drawn up; purchase contract, promisary note, option contract, and an assignment contract that would be form contracts to be used in every most situations. While I got a lot of good information, I was told that they would chatge $6,500! Now that just seems a little exspensive. NOw to be fair, these guys have been practicing in the area(dallas) for over forty years collectivley, but does this sound expensive to anyone other than myself?
If any one has experince with lawyers drawing up these contracts please let me know how much you paid and if these guys are trying to rob me or give me a legitamate service.
Are you kidding me? Those are 4 contracts he probably already has templates of that he can just print off or slightly mod. It will take him less than an hour tops. I had a very complex lease option contract done to control larger multis (not just lease out a single fam) and had him revise it about 4 times before I was done adding everything I needed. He charged me $100. I also had another guy quote me $2500 or so for the same contract. Some lawyers just want to rip you off. Screw their 40 yrs of experience, it’s not worth it to pay that much.
Check out the eviction attorney in your area for contracts. These guys know there stuff. Forget the regular real estate attorney. Hit they guy doing 100 evicts a month.
Also the internet has great contracts. But not the free ones, the ones you pay for, generally you can join a legal website with contracts for under $100.00 and get everything you need and then add some things to them if you like.
Also it is not bad idea to call some other local investors or goto a REIA meeting and ask aroud for a contract. Get a few and use those.
I agree, that is outragous. For that price, I would close through a title company, get title insurance, and still save money.
He probably gave you such a high quote because you asked him to give you a template to do your own closing? if so, he may want to charge you for selling his templates since he won’t get repeat business.
I pay mine $250 per closing. I get a note, deed of trust, deed, POA, and Hud1.
Talk to other investors in town and see who they use. There are investor friendly lawyers out there.
I agree…that is expensive. Shop around. You might find some young, hungry for business yet knowledgable attorney that will be glad to draft documents for you OR just double-check your Internet-documents and make sure they are compatible with Texas law. There are attorneys that advertise on Craigslist even! Call up a few of them, and of course call up some real estate related attorneys in the phone book too. Good luck
My best tip on finding Lawyers is the converted single family home…HUH???
Find a small guy working out of a business/commercial area where people have converted single family homes into small offices. We’ve all been in or by them. These guy’s work lean and mean, usually just him and a secretary. Call up tell them what you want, expalin that your a real estate investor and your looking to build a long term relationship with a reasonable attorney. You’ll use him for ALL your closings and title work, price is a factor, this is a business I’m running, but, I will pay you in 10 days for everything I do with you and if you work with me i’ll send you as much referral business as I can.
I paid $600 for similar work. He’s drafting them now. I’ll get them electronically as well. That way I can easily change names and legal description of the property as needed.
I didn’t pay a retainer. He does his own real estate investing. That gives me higher confidence in him understanding my needs and doing quality work in this area of law. You don’t want to be someone’s only REI. Just like if you need brain surgery you don’t go to a heart surgeon. Sure they are both surgeons but one of them is more qualified for your specific need.
I talked to about 10 attorneys on the phone to find him. Anyone you plan to hire is just like finding a property. You have to weed through the junk to find the good ones.
Build a network of professionals - Write a letter to several different attorneys and find out what they charge for various services.
I wrote to 4 attorneys introducing myself as in an investor, two responded. One said she would ‘REVIEW’ contracts for free. So I got examples of contracts from other investors and had her review them for me. I paid zero for my notes, options, assignment, private mortgages… and my will.
Three years later she is still reviewing my contracts for free… but I have paid her for 2 dozen or so closings.
Excellent approach… I did not think about that. I did it with a CPA to help me structure my entities, but not with attorneys. I got mine through networking and he is more than willing to help me close within 24 hrs if needed specially that I got him 3 closings in 2 weeks.
