All Forum Posts by: Bret Ehlers

@John Anderson.  You will want to study the Federal Laws which make trusts an exception to the "Due on Sales" contact violation.  

This is a good lesson for me in perception Michaela.  When I read California I did not think of being bound in Georgia.  My thoughts went to the internet and all of the technology we have to find real estate everywhere.  For all of our negotiations and communication it is not about the words we use but how the words we use are perceived by the receiving party.  Thank you. 

You are correct Dmitriy. 

I should have been more clear on that point.

The Land Trust is typically used for the protection of real estate assets. There are Federal laws which direct proper structuring.  When done correctly the Land Trust will shield the property from liens, judgements and lawsuits.  It is an exceptional tool.  I have been using them for years.

CONGRATS VERNON!!   Unless you are born into the business everyone begins as a newbie.

What you have shared with us is about contract control.  This gives you the right to market and direct the sale of the property in behalf of the property owner.  As long as you have contact with the seller first as a buyer, you can purchase the property without an agent being in the way.  All you need is a simple 2 page contract, and your Title Company with a real estate attorney on staff to oversee the purchase transaction. You don't have to have an attorney in California but I recommend it strongly in all 50 states.

If the property is under a listing contract with a licensed real estate agent you can place your offer today with the listing agent who can represent you and the seller in a dual agency contract. This is perfectly legal in California. Use your real estate attorney at the title company for your personal protection in closing the transaction.

I am curious, Atlanta is a great place to invest.  Why are you working the west coast?

Now, here are the big questions if you are going to do it on your own.

1. Are you prepared with your exit strategy? If is not fair to waste the seller or real estate agent's time if you are not prepared to cash out this transaction or follow through with seller finance terms.

a. If you are wholesaling do you have 30 Flippers who can lay down cash at the Title Company to fund and close in a few days?

b. If you are going to Fix and Flip do you have your Hard or Private money and your GAP funding in place to close within 45 days or less?

c. Or do you have your own cash ready to fund and close.

California and Georgia are great locations to invest and there is a tremendous group of investors and resources in each state.

To your successful investing.

It is a Terrific Day!!

CONGRATS Nicholas!!  Unless you are born into the business everyone begins as a newbie. 

What you have shared with us is about contract control.  The broker or maybe just an agent has control of the property with the seller through a listing agreement.  This gives the agent the right to market and direct the sale of the property in behalf of the property owner.  If you would have made contact with the seller first as a buyer, you could have purchased the property without an agent being in the way.  All you need is a simple 2 page contract, and your Title Company with a real estate attorney on staff to oversee the purchase transaction.   You don't have to have an attorney in Arizona but I recommend it strongly in all 50 states. 

Now that the property is under a listing contract with a licensed agent you can place your offer today with the listing agent who can represent you and the seller in a dual agency contract.  This is perfectly legal in Arizona.  Use your real estate attorney at the title company for your personal protection in closing the transaction.

1. Now you have to use the listing agent because they control the property with a listing contract.

2. No relationship needed.  It is strictly creating the terms which will be acceptable to you and the seller. 

3. Are you prepared with your exit strategy.  If is not fair to waste the seller or real estate agent's time if you are not prepared to cash out this transaction or follow through with seller finance terms. 

a. If you are wholesaling do you have 30 Flippers who can lay down cash at the Title Company to fund and close in a few days?

b. If you are going to Fix and Flip do you have your Hard or Private money and your GAP funding in place to close within 45 days or less?

c. Or do you have your own cash ready to fund and close.

Phoenix is a great place to invest and there is a tremendous group of investors and resources there.

For the ultimate real estate asset protection and direction from the grave you would us a properly prepared Land Trust.  A living family trust is strictly an instrument to keep your estate and heirs out of probate.  Look at the mess Prince left his heirs and at least 50% will be taken in taxes.  The will alone has no asset or estate protection.  The will used with the Living Family Trust will give authority and living direction to the Living Family Trust from the grave.  With the Living Family Trust you will use the Power of Attorney to officiate within the Living Family Trust and give your directions for your end of life health wishes such as a "Do Not Resuscitate" order to the medical providers.

Wow Jimmy,  This is a question you need to ask your business and real estate tax expert.  How much of the appreciation will you lose in capital gains and depreciation repayment?  Are you able to legally reset basis with capital improvements?  And you really should have a really good, professional management company take care of the Tenants, Toilets, Trash and Turnover.  Being a property landlord will be much more enjoyable.  

This is not uncommon Lennox.  If you really have the cash and loan approval, and you are ready to do the work to find the right property within your budget, a buyer's agent is not necessary and can really slow down the buying process.  If you choose not to do the work then you would want to interview enough agents to find an agent who will do the work to find you the property which fits your needs.  In fairness to the real estate agents you need to give them exact parameters of what you need within your housing budget.  I encourage you to take 60 minutes and place in writing the following items to find your new home.  There is real power in this simple action. 

Zip Codes which do not exceed your loan approval amount.  (Then find a real deal)

The school district you desire or if you plan to sell in the future select an A rated district.

The square footage, number of beds and baths.

Amenities you need in a property.  For me it is the garage and ease to the airport.

Characteristics you do not want to have in the property.  For my wife she does not want the kitchen to be seen from the front entry.  (So much for the open concept in our household)

As long as the property is loan inspection and move in ready to pass the lenders approval would you purchase a home which needs all of the cosmetic updates?

With this data you can work well with a buyer's agent or set your filters on Redfin or Realtor.com and call the listing agent to represent you for your offer in a dual agency agreement.

Protect your interest by closing with your real estate attorney at your title company and you will be fine. 

Don't overlook getting ahead of the real estate agents by searching out the For Sale By Owner properties in your market.  After all, an agent listed property was controlled by the owner first.

Best of success in your personal treasure hunt.

It is a Terrific Day!!

Hi Eli,

Your question should be directed to your business and real estate tax specialist.  Not a W-2 CPA.

Did you purchase the property personally or in an entity?  You may have to pay 20% or more in capital gains and possible depreciation repayment when you sell the property.  Be sure your tax specialist knows how to legally reset your basis before you sell the property.  

On the upside, the cash would really help you in your investing and now is an excellent time to sell the property in California.   

To Your Success.

It is a Terrific Day!!

Save your money until you know the required conditions of your lender.

To Your Success.

It is a Terrific Day!!