All Forum Posts by: Andrew Isaacs

Usually 30 days. Varies... as little as possible :) Feel free to share more details about the deal. I'll do what I can to help.

Testing, testing. Thanks Steve Babiak. I think it worked... but sometimes it doesn't work on the same person. I think it is browser related. Running latest firefox on imac.

Good call @jscott (does anyone else have issues @-ing someone?). Great point. Contract law is subject to varying default rules depending on the body of law that governs the contract. Real estate is a special type of contract and is governed by the laws of the state in which the property is situated.

I was speaking to "contracts in the most general sense." Good job clarifying that.

Implicit in all of these responses is the most accurate and simple answer to your question of "Can I assign?"

The default rule is that contracts ARE assignable, but the actual terms of a contract always trump the default rule.

So, the answer is: What does the contract say?

As all these guys have astutely pointed out, Freddie is going to require you and only you to be the one that performs on the contract... via "the addendum" (part of the agreement/contract).

Good questions Lynn. I'll take them one at a time. My rehab company utilizes both options and purchase agreements. I think of them more as chess pieces. One is not necessarily "better" than the other. It is important to know how they work and what their benefits/drawbacks are, then use them strategically when the circumstances are right.

Sure sellers balk at Options, for a number of reasons. For one, they are a little unusual. Also, typically the seller wants to SELL... not give you a fantastic price and exclusive right to buy it. But, that doesn't mean options will never work. We do them frequently.

Usually the option period is 30 days. Might be longer if there is some circumstance requiring it. We typically don't need that long to figure out what we're going to do with it. I'm more likely to do an option if a seller wants to get an agreement right away, before I can do my due diligence.

We use purchase agreements far more often. The level of "outs" we leave ourselves, again, depends on the circumstances. Institutional sellers (HUD, banks, etc.) are unlikely to do options at all and are hip to the "weasel clauses" you suggested. In my experience, they won't accept that kind of offer. Private sellers are all over the map.

So... to answer all of your questions in two words: It depends.

I don't know how to @ someone, but thanks @Mitch Kronowit... that's high praise.

Brother Lawyer chiming in on the topic. This has probably (hopefully) been said a few dozen times on here, but I'm new to BP and haven't read anywhere near most of the discussions yet.

Here's the deal. If you follow the LLC rules (treat it like a distinct entity and not your personal piggy bank) courts aren't going to set it aside and "pierce the veil."

I'm not sure where the idea originated that renegade judges are out there snatching up the assets of good, honest, hard-working Americans because they were bamboozled by their greedy lawyer into setting up a limited liability vehicle. I can just picture that nonsensical judge maniacally laughing as slams his gavel down, giddy with the singular glee of taking money from Decent Dan and giving it to Frivolous Fannie. Seriously? Maybe it started with some "land trust" guru. I don't know.

What I do know is that if the question is this: Are my personal assets better protected from claims against my business in an LLC or in a sole proprietorship? The answer is the LLC. Hands down.

In my area, you do need an attorney to do the eviction when the property is owned by the LLC.

Thanks Bill!

Good discussion here. It's something that I have looked into heavily--I'm an attorney and licensed real estate salesperson... and occasional wholesaler. So there is a whole bevy of potential liability arrows that may be flung upon me and my various licenses. I can tell you how Ohio law regards the situation, but that's only helpful if you are dealing in Ohio property with an Ohio license.

The NAR's Code of Ethics actually draws a more strict line than my state's laws. Article 4 of the NAR Code states that "Realtors(r) shall not acquire an interest in . . . any real property without making their true position known to the owner or the owner's agent." It also requires that this disclosure be in writing and provided prior to the signing of any contract.

As Mark H. said, you're still open to suit, no matter what you disclose. Compliance with state law and other professional standards is going to be a pretty good defense, but you could still amass some hefty legal bills, as he also pointed. But, that's the case whether you have a license or not.

What the license really adds to the equation IMO is unequal footing. As an agent you have special expertise and knowledge that the average homeowner does not have and you are in a general position of trust and esteem as a professional. If you're compliant with all of the laws and other standards, this unequal footing will be the only legitimate basis for suit by Angry Seller down the road. With that in mind, having turned your license in 7 hours before the deal and then re-activating 2 hours after the deal would seem to be more of a detriment than.

That's alot. Hopefully, that added at least a little to the discussion. My basic position though is this: pick a side and stick to it. If you want a license, keep it. If you don't then leave it inactive. In either case, here's the key - disclose your position clearly, do a good job, don't seek any dishonest gain. The golden rule seems to have universal application.

getting a registered agent service is another option. there are a number of good registered agent companies that are very reasonable. "hiding from tenants" is only one reason that one might use such services.

check out http://www.registeredagent.com for an idea of what they do.