I have read a couple of books on subject2 and am ready to dive in and give it a shot, but I have a few question from someone who has completed one. Question One: I have an inactive real estate lic and was wondering if I could use a contract from the Texas Real Estate Commission or do I have to get a Real Estate Lawyer? Question two: Do you have to use a Title company or not? Question three: How long do I lock up the property before I return it If I can’t find a tenant/buyer?
thank you for all your help in advance
have a bless day
I can try and help a bit here. Question 1, always good to have your contracts reviewed by a lawyer in the area you are working in. This being the document that binds the sale or deal, I personally want no margin of error. Real estate laws and common practices change from state to state, so, that too can play a part in needing to update your documents. Question 2 I believe is no, you can file all the paperwork yourself with your local authorities. The reasoning I use a title company is: 1. a paper trail 3rd party to the deal, 2. someone else holds the burden of correctivness given a problem, 3. makes some buyers feel like the deal is more " Legitimate " when closing with a title company. Question 3 is really up to your deal and the numbers. The longer you hold onto a property, the more the numbers will grow in your favor, but in some cases the harder the deal is to make with the seller. I’ve always been told and use a term of 5 years with a seller, pay them slightly more then they are asking to sweeten the deal a bit for them and then lease option it to a buyer who can qualify to buy in 3 years at your price. This gives you a buffer zone if one tenant falls through, to be able to salvage the deal with a new tenant. In regards to how long to hold out in the deal, that too is dependant on your seller, some people will let you look for say 60 days, while others will only wait 30. Get a feel for how motivated your seller is and base your numbers on that, don’t be afraid to ask them what they are comfortable with either!
Hope that helps,