RE lawyers/contracts, ADVICE PLEASE!!!

RE lawyers/contracts, ADVICE PLEASE!!!

Residential Real Estate Agent · Somerville, MA · Member since 2009 · 195 posts · 32 votes

I've been working so hard with this wholesaling thing for a month now. I have 35+ cash buyers lined up and I know my farm area. Me and my father have worked together on a blitz marketing campaign when I return from the states on the 24th and I plan to implement 3-4 strategies in the beginning, reevaluating every 6 months and adding an additional 3-4 at that time. I have everything together except for my contracts. I have copies of assignment/double close contracts from wholesalers in texas, california, and elsewhere, but not where it counts....IN MY STATE (MA)!

Anyway, I've spent the last two months trying to find a RE lawyer that will work with me and provide me with the contracts I need. I can't pay them out of pocket up front, but I've offered to pay all fees after my first deal. In addition I've offered to refer my wholesalers, investors, and anyone else that is in need of RE legal advice their way. I've explained that I will also need their help down the road in setting up a business entity and later on with rehabs and buy and hold situations.

At first I found RE lawyers that wouldn't even give me the time of day. They were downright rude and egotistical. No interest in my concerns or what I was trying to accomplish. Then I found one that said they would work with me. That was over two and a half weeks ago and they haven't returned my calls or emails since.

I recently came across a second one and met with them. First off, they appear to work with a number of "high profile" investors in the area. They claim that assignments are very tough to pull off in MA, that I can't charge a fee in that situation, and that most investor's lawyers won't work with them. I was told an option contract with a fee would be fine. I asked what the discrepancy was, and I wasn't given a clear answer. As far as I know they are the same thing.

I then said, well I can double close on all properties with my end buyers funds. I was told that the funds must be my own and if the investor brings funds to the table for the A to B transaction it could be considered mortgage fraud. She said if I were to double close, either I would have to pay in cash for the A to B or go the transactional funding route which I'm not doing. Essentially I was told I can only do an option contract, and it appears that will cost me a couple thousand.

I also was told that they wouldn't give me the contracts until I brought them a deal. Now as far as I know, I need a contract to have a deal. And if it's a deal and I go to this lawyer, what's stopping them from taking it for themselves or sending it on to another colleague of theirs? There would be a good chance that in one way or another, I would lose any deal I brought them before I could receive the contracts.

I understand on the surface it might seem like I'm asking a lot from a RE lawyer, but here's my take: I'm an extremely motivated force that will not stop until I get what I want. I'm going to give this person business for THE REST of my career. I'm going to refer them to MULTIPLE clients who will use them for the rest of their career. I'm going to work with them to set-up a business entity, for rehab contracts, for buy and hold contracts. In one month I have over 35 investors and a ton of other RE contacts who would love to connect with them and I'm getting the runaround. It's all very frustrating.

I've considered going to experienced wholesalers in my area and asking for their contracts, but outside of offering them more investors (which likely isn't a MAJOR concern for them), I don't know what I can bring to the table. Does anyone have any thoughts on this? I'd love to use a very simple contract off a website, but legally that puts me in a really horrible situation. I want to feel secure in my contract and know that I'm protected from a liability and legal standpoint.

Sorry for the long vent, but when I started this venture I had this little ember in me that wanted to get a deal together. At this point it's a forest fire and I need to get these contracts and ASAP. I'm heading to Israel on Monday and I really want them ready to go when I get back on the 25th. I'm very tempted to call every RE lawyer in my local phone book and see what happens...

BP community, I would love to hear your words of wisdom on this one. Really could use a little guidance right now...

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  • Philadelphia, PA · Member since 2009 · 97 posts · 31 votes
    16y

    Im a newbie as well and I got contracts off the internet. They are short, sweet and to the point. I was calling around to different attorneys to get prices (I didnt have a lot of cash to put out) and one attorney told me he would review them for free as long as I kept him in mind for future business. If you send me a colleague request, I will send them over to you. Good luck.

  • Residential Real Estate Agent · Chandler, AZ · Member since 2009 · 1k+ posts · 928 votes
    16y


    Don't you need a mortgage to have it be mortgage fraud? You're a wholesaler with cash buyers, where does the mortgage fraud come in? Why are you against transactional funding? Just budget for the cost in your wholesale deals.
  • Residential Real Estate Agent · Somerville, MA · Member since 2009 · 195 posts · 32 votes
    16y

    Oops, did not mean to include the word 'mortgage' there. Just plain fraud. I was told it could be considered fraud because if I use the end buyers funds I'm concealing my finders fee. However I do it, I have to use my own funds according to this lawyer.

    As for transactional funding, it's not that I'm against it, but I'm skeptical that it's necessary. This is the 5th RE lawyer I've spoken with and the first who said I would have to use transactional funding to double close. In fact not a single investors/wholesalers I've spoken to has mentioned this at all.

  • Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    16y
    Originally posted by Sage Jankowitz:
    ...
    Anyway, I've spent the last two months trying to find a RE lawyer that will work with me and provide me with the contracts I need. I can't pay them out of pocket up front, but I've offered to pay all fees after my first deal. ...

    I'm heading to Israel on Monday and I really want them ready to go when I get back on the 25th. ...



    @Sage,

    Unless travel to Israel has no associated costs, seems like you can come up with money to pay for things you determine to be worthwhile. IMO the two statements I have snipped from your post seem contradictory. If you can afford airfare, you can afford to pay an attorney IMO. If somebody is funding your trip, then maybe you can get them to provide you with funds to get an attorney.

    The attorneys have no way of knowing they will be paid, unless you actually pay them in funds up front. It is the mindset of the attorney. And you might just not be happy with whatever this attorney does for you, and thinking that they will serve you for the rest of your career in real estate might be premature as a result. Have you used the same doctor, dentist, auto mechanic, etc. since you first starting using such professionals? And they have no way of predetermining whether you will actually be as successful as you think; my attorney tells me he is regularly contacted by beginners who never get off the ground.

    @Frank,

    Did you contact those attorneys that I PM'd to you? I'd be interested in getting a PM with the name of the one who you found willing to be cooperative.

  • Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    16y

    Hi, just another point, I've never heard of an attorney cutting his client out of a deal!

    Which deal closes first, A to B or B to C? Well, the A to B transaction! Did it really close? No, it was not funded. B to C has to close, or be funded with the C's loan. Did the bank think it was funding a deal with someone else before they got their security and closing documents executed that were valid? No. B to C has to close first to be funded before the A to B transaction takes place. See the rub?

    As to your contract situation, PM me. Bill

  • Residential Real Estate Agent · Somerville, MA · Member since 2009 · 195 posts · 32 votes
    16y

    Steve, the Israeli government and other donors offer a free trip to Israel for anyone under the age of 26. It's called Birthright Israel. It includes airfare, hotels, food, guided tour of the entire country, and everything else is 100% included. I pay for nothing.

    I don't blame any attorney for not working with me. Just like any business they are providing a service and deserve to get paid for it.

    Having said that, I am a firm believer in building relationships in business. Before RE I worked in the film industry. My former film producer bosses worked with their attorneys for years and years. The more they worked together the more they both accomplished. They sent clients to one another, they helped each other out when the other one was down, and everyone won.

    I'm going to do the same thing with RE. There's a good chance I'll have to get contracts through other means, but once I have some capital I plan to find a lawyer that I can grow and work with.

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