Recording a Memorandum

General Real Estate Investing
1

As a newbie, one of the biggest problems I’ve been facing is trying to find an attorney who is familiar with subject to investing. I met two attorneys at my REI Club meeting and met with both of them. At the REI meeting they both told me that they know alot about SUB2s but when I met with them it seemed that I knew more than they did. Yet they claim that they have bothed closed and even have done several SUB2s personally.

Anyway, the last attorney told me that he doesn’t record the deed after he takes possession. I asked him how does he prevent liens from being placed on the property. He told me that he records a memorandum of option and this will prevent it. Can anyone tell me if this is a good thing to do. It just doesn’t sound right to me.

I just want to protect myself and my family before I start SUB2 investing. It seems that I can’t trust any of the attorneys I’ve been talking to help me stay out of trouble.

Does anyone know a good attorney in the North Alabama area? :help

Thanks

2

What was his explanation for NOT recording the deed?

3

I was asking him how he takes care of the insurance and how to prevent the DOS. I guess basically he was telling me that if the deed is not recorded then the lender can’t see that ownership was transferred.

4

I would dump him ASAP. You do not want to start your rei career off in a lie. What it sounds like he is suggesting is a “Don’t ask, Don’t tell” policy for sub2 deals and if he is suggesting a minor fib on a little issue like this, just imagine what other information he just so conveniently is leaving out. I would try to find a trustworthy attorney (I know that’s kind of an oxymoron).
:beer