I am extremely new to Real Estate I want to be an investor, I have read Intelibiz’s books, books on Tax Leins, and currently am looking at Peter Conti’s book for ideas.
My biggest drawback is the paperwork afraid I will mess something up. Can anyone tell me what helped them to know they went through all the paperwork they need to?
Do you have to have a licence to be able to use purchase agreements and so on?
Howdy Yoder:
No license needed to use a purchase agreement. No special paperwork needed for the matter. I have seen contracts written on napkins. I personally use the forms available from the local real estate commission only because they are easy to get and are universal with title companies and attorneys etc.
The other paperwork will come from the title company, such as the deed and financing documents. The paperwork is the easiest part of doing a deal. Finding a deal and getting the financing are far more difficult.
It is true that no license is needed to do the paperwork but be sure you cover all of your bases with the critical dates in the contracts and follow through on them. No matter what your agreement governs and can make or break a deal. I am a real estate attorney and an investor myself and have seen many a deal go south or end up in litigation from someone using a form that they did not understand how to complete on their own. Pay careful attention to default provisions and what the consequences are in the event of a problem. It could box you into paying fees and costs or box you into a corner with respect to venue choices.
Good luck to you.
Thank you very much for the replies, but what does the licenses actually do for an individual?
Hey,
If in Texas, go to www.trec.com for standardized forms used everywhere in the state. If you are that worried sign up for prepaid legal and for $40/month you can get an attorney to preview all your contracts. They are very helpful, friendly and willing to spend the time to explain things to you and they are prompt.
Peace,
Richard
Prepaid Legal is certainly an affordable alternative to the yellow pages but be careful of hidden charges. Read the fine print. Most of what they cover is for litigation and not for transactional work to review documents. Many attorneys will work with you on rates and do do not have the insurance companies behind them directing their every move. Do not be afraid to shop around for one.
I believe the term license was used to refer to a professional license to practice law or as a paralegal (if licensed in your state).
Hey,
I have had them review several contracts, spending upwords to a couple of hours with revisions, etc. with no extra fees. It may depend on state and firm. Much cheaper than the firm I hired for some litigation regarding my daughter at $200/hr. BTW, I “won” but cost me $84,000. I wonder how much Prepaid Legal would’ve been?
Peace,
Richard
Prepaid covers only a few pretrial hours and a lot of in trial hours, which as you know should be the opposite because most of the work is done pretrial. I think they provide a 25% discount off of an attorneys usual rates, which by the way, are arbotrary and set by the attorney.
Litigation is generally expensive but necessary sometimes.