Closing a Wholesale Contract in Illinois: DO YOU NEED AN ATTORNEY?

Closing a Wholesale Contract in Illinois: DO YOU NEED AN ATTORNEY?

Investor · TX · Member since 2013 · 158 posts · 22 votes

Hello everyone. I've been searching the boards for 2 hours trying to find a clear answer to my question and have come up with nothing so I apologize if this question is something I could have found elsewhere (by all means post the link to where I can find the answer to my question below):

I'm having some confusion as to how a Wholesale deal can be closed in Illinois. I've heard conflicting information and just about everyone I talk to regarding the matter either looks at me funny or seems to think it's not possible. My question is,

When you do a wholesale deal are you:

Having an attorney write up all the contracts who then submits them to the seller for signatures, and then take the contract to the title company to handle escrow, title search, and closing?

or

Are you simply sending your contract (that has been reviewed by an attorney) to the seller to sign and then taking the signed contract to the title company who then handles escrow, title search, and closing? (Eliminating the need for an attorney all together)

I've been talking to a lot of real-estate attorneys in Illinois lately and I'd say 90% of them either sound like they have no idea what I'm talking about or feel that what I'm doing is not possible.

Thank you for your comments!

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Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
13y

Paul Zajic,

IL is a very litigous state. I highly recommend that anyone doing business have an attorney representing them.

It is highly recommend that you have an attorney represent you. I have a recommendation if you would like.

CYA, if anything just someone to be sure the closing(s) run smoothly.

See this reply in the discussion

24 Replies

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  • Real Estate Agent · Milwaukee County, WI · Member since 2009 · 3k+ posts · 525 votes
    13y

    Maybe Steven Hamilton II can weigh in on this thread

  • Investor · TX · Member since 2013 · 158 posts · 22 votes
    13y

    Sounds good! Hopefully he responds!

  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    13y

    I am not an attorney and I do not know Illinois law, however I am very confident you do not need an attorney to send the contracts to a seller.

    A real estate agent is not an attorney and they submit offers to sellers every day. I can not imagine why someone would tell you differently.

  • Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
    13y

    Paul Zajic,

    IL is a very litigous state. I highly recommend that anyone doing business have an attorney representing them.

    It is highly recommend that you have an attorney represent you. I have a recommendation if you would like.

    CYA, if anything just someone to be sure the closing(s) run smoothly.

  • Investor · TX · Member since 2013 · 158 posts · 22 votes
    13y

    @Ned Carey that's exactly what I assumed as well. Thank u for your feedback.

    @Steven Hamilton I would very much appreciate that recommendation. If you would like I can contact you directly please let me know otherwise please feel free to send it to me. My email is in my signature.

    Thank you both again!!!

  • Investor · TX · Member since 2013 · 158 posts · 22 votes
    13y

    P.S. Biggerpockets should really code the "@" feature for IPads and cell phones!!!! Lol

  • Specialist · Tampa, FL · Member since 2012 · 933 posts · 492 votes
    13y

    Hey Paul,

    One of the simplest ways to find out if you need closing attorneys to close your deals in Illinois is go and find where your local REI meetings are being held.

    At these meetings you will find wholesalers and other investors who may be closing deals on a consistent basis. Find a way to network with these individuals and they should be able to give you better insight on who they are using to close their deals.

    Hope this helps!

  • Investor · TX · Member since 2013 · 158 posts · 22 votes
    13y

    Thanks TJ! That's my def plan ASAP!

  • Firefighter · Hampshire, IL · Member since 2009 · 41 posts · 17 votes
    13y

    Hey Paul. I sent you a message not sure if you saw it,But we are pretty close together, maybe we can help each other out or work together.

  • Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
    13y

    Illinois is a state where you need to know the legal bounds of your activities. See my 12/31/10 post in this topic: The difference between "wholesaler" and "broker"? If your deal goes south, there is potential for a steep fine. (disclaimer: I am not an attorney, this is not legal advice.)

  • Investor · TX · Member since 2013 · 158 posts · 22 votes
    13y

    @Bryan check your inbox! Sorry for the late reply.

    @Chris I will take a look at the thread. Thank you! I have a pretty good idea what you're leading to and I have a feeling it has to do with "equitable interest" and the existence of a "purchase contract" between the seller and myself.

  • Investor · TX · Member since 2013 · 158 posts · 22 votes
    13y

    Steven Hamilton II Do you happen to have that attorney recommendation? I'd like to make a call this coming Monday. It would be greatly appreciated. Thank you!!

  • Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
    13y

    Randy Evangelides in Lake County 847-970-1786

  • Investor · TX · Member since 2013 · 158 posts · 22 votes
    13y

    Steven Hamilton II Thank you!!

  • Real Estate Investor · Elgin, IL · Member since 2015 · 7 posts · 1 vote
    11y

    Hi Paul z

    I was reading a post you did back on July 24 13 asking for help locating a title company to work with. What was the out come, did you have any success locating one.

  • Yvon N.Pro Member
    Homeowner · Pomfret Center, CT · Member since 2015 · 58 posts · 30 votes
    11y

    @Joseph Wilson

     you might want to use the @ symbol before @Paul Z. name to alert him (see how i just tapped his shoulder? lol)

  • Real Estate Investor · Elgin, IL · Member since 2015 · 7 posts · 1 vote
    11y

    @Paul Z.

    Hi Paul Z.

    I was reading a post you did back on July 24 13 asking for help locating a title company to work with. What was the out come, did you have any success locating one.

  • Investor · TX · Member since 2013 · 158 posts · 22 votes
    11y

    @Yvon N. yep that's a good way to get ahold of me ????

    @Joseph Wilson I ended up closing a few deals last year and it ended up being easy. I simply relied on my attorney to designate the closing company that could process the deal. It was easier to communicate my needs through him and from there everything closed seamlessly. 

    Hope that helps

  • Investor · TX · Member since 2013 · 158 posts · 22 votes
    11y

    @Yvon N. yep that's a good way to get ahold of me ????

    @Joseph Wilson I ended up closing a few deals last year and it ended up being easy. I simply relied on my attorney to designate the closing company that could process the deal. It was easier to communicate my needs through him and from there everything closed seamlessly. 

    Hope that helps

  • Investor · TX · Member since 2013 · 158 posts · 22 votes
    11y

    @Yvon N. yep that's a good way to get ahold of me ????

    @Joseph Wilson I ended up closing a few deals last year and it ended up being easy. I simply relied on my attorney to designate the closing company that could process the deal. It was easier to communicate my needs through him and from there everything closed seamlessly. 

    Hope that helps

  • The Real Estate Guy · Chicago, IL · Member since 2014 · 27 posts · 4 votes
    11y

    @Paul Z. I'm in IL too, and I'm super curious to know which contract you used for your wholesale deals. My attorney says to use the Realtor contract, but since I am a Realtor, I'm a little leary...

  • Investor · TX · Member since 2013 · 158 posts · 22 votes
    11y

    @Jerry Brown my first question is what type of attorney are you getting that advice from? If he/she is a specialist in residential deals I could see this type of response especially if they've never seen or even drafted a purchase contract from scratch. 

    Just realize that there really is no law against creating a contract. Just because NAR provides a widely accepted and tried contract in a court of law doesn't mean a specifically drafted contract won't work as long as it meets the requirements to be binding.

    I provided my attorney with the terms and issues that I believed to be important in addition to some other sample contracts that I liked the outline of. He in turn provided me a new contract fitting for the purchase of real estate in IL. I also had him draft me an Assignment Addendum document so I could assign my interest to the end buyer and avoid a double closing. This all came at a cost, however

  • The Real Estate Guy · Chicago, IL · Member since 2014 · 27 posts · 4 votes
    11y

    @Paul Z. The almighty billable hours... Do you mind sharing what attorney you've used? 

  • Chicago, IL · Member since 2015 · 4 posts · 1 vote
    10y

    I am new to whe wholesale business. The one thing that is holding me back is findisng a tittle company or closing attorney here in illinois. Can anyone make any suggeations? @PaulZ. Can you share the info for the attorney you use.

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