All Forum Posts by: Jerel Ehlert

Some lawyers do free consultations, but I would spend all day, every day on the phone with tire kickers pumping me for free legal advice.  What you call forms are what end up being litigated in courts for years when done wrong (and non-lawyers screw it up more often than they get right).  With lawyers, most of the time you get what you pay for.  Or, as any contractor will tell you: good, fast, or cheap - pick two.

HIRE A LAWYER licensed in the state where you reside.  Deeds have to be drafted by a lawyer licensed in the state where the property is located.  Discuss the tax consequences.

@Caroline Gerardo  Supreme Court ruled on a case in 1983 and was subsequently written into law that a due on sale related to estate planning grantee is an intervivos trust is exempt from enforcement of lender's remedy under a due on sale clause.  See https://www.law.cornell.edu/us... for the exact language under (d)(8).

I am licensed to practice law in TEXAS, including related federal law.  I don't know where you are or where these properties are at, and that makes a difference.  Securities laws are generally governed under federal preemption and state law applies in certain other circumstances.  With that said, I'm not your lawyer.

In the world of capital, your capital stack will be composed of debt or equity or a hybrid instrument (a bit of both).  Any or all of these can be a security governed by state/SEC regs.  There are rules and case law that guide regulators in determining whether an instrument is a security or not.  Lots of great books out there to describe this and I invite you to do just that - read books on syndication.

DO NOT DOWNLOAD ANYTHING FROM THE INTERNET if you want to stay out of trouble.  Go see a lawyer in your jurisdiction.  Google is job security for lawyers.  The few hundred you spend getting a lawyer to do it right for you will save you thousands to defend a lawsuit on something you "downloaded" from the internet.

Any time you "pool" money, 99.999% of the time, it will be called a security.  Even loans can be a security (called a "bond").  Sometimes a loan is NOT a security, but regulators and the statutes they enforce start with the presupposition that all instruments are a security unless an exemption or exception applies.  You can have several lenders make a single loan and each have an undivided interest in the note and lien secured by real estate.

My private lending package consists of a deed with vendor's lien, promissory note, deed of trust (Texas), a business purpose affidavit or personal guaranty, lender's instructions to the title company (because I only represent the lender, even if the borrower is my initial contact), and letter of non-representation (explaining that I work for the lender and paid by the borrower).

The State Bar of Texas encourages its members to educate the public on areas of law, and in that light, this is for educational purposes.  I'm not your lawyer.  You need to find one where you are at.  Based on the questions, you should probably find a club or group where you are and talk to locals.  Maybe partner with people who have done this a few times.

I can only talk about TEXAS law, but under our agency laws, a property manager is a fiduciary to the owner.  If the PM is rejecting settlement for the Owner because PM is giving up fees, that sounds like a breach of the fiduciary duty of good faith.  In Texas, that's a heavy penalty and may cost the PM their license.

LLs and PMs need to help Ts to help them.  Push and cajole tenants to apply. 

EVERY STATE IS DIFFERENT.  In TEXAS, it is as posted earlier - a name and mailing address of the owner of record is required.

I practice mostly LL-side, but also some T-side when LL is over the line.  

There are sometimes good reasons to list the PM and the LL in a suit.  A PO Box is a sucky way to get notice of a suit against you.  If LL is a registered entity, the Texas SoS is your default registered agent.  Not every PM will notify LL of a suit.  So make sure there is one legitimate method for a process server to deliver paperwork. 

LL should not be afraid for Ts to have their contact info.  Just direct everything to the PM.  If the PM starts going off the rails (because that happens, too), LL NEEDS to know about it and the only way is from the T or financial records (because LLs *always* audit financials from PMs, right /sarcasm).  Harassment results in eviction.

@Jeffrey McKee Check Tex. Prop. Code 92.103 again.  You only have THIRTY (30) DAYS to return the security deposit and give an accounting.

@Greg H. Not saying it will change the property code this session, but look for it on the horizon.  And no one said sending blindly to an email.  Really, not much different than send a live check to a mailing address.  The email/mailing address has to be one given to you by them.  Two years ago lawyers were approved to have citation served by social media, so my proposal is not far fetched as you might believe.

This is absolutely one area that will get landlords into trouble.  Glad to see mostly good posts, but here's some points to ponder.

Only deductions from T's security deposit permitted is damage beyond wear and tear.  Cleaning deposits, even when by contract, are probably voidable under the plain statutory language.  It doesn't matter what your "policy" is.  Rent is to cover make ready, too.

In the day and age when (almost) everyone has an email address, getting a forwarding address to start the clock will be going away.  All you need to do an accounting is an email account.  To send money for free, all you need is an email account a la, venmo, or even just a phone that gets text messages (SMS).  Failure to have a forwarding address is no longer a barrier to comply with the statute.  Get a few more cases like this, Texas House and Senate can write that into the property code and win voters very easily.

Roommates is probably the stickier issue.  If you were to lease to roommates, a roommate agreement is good to have in place.  If payment is made to one, is it good as against all?  If one says she deposited $400/$1200 that's not an even split.  Does the one who shorted have a claim for an even return?

Sure, law students can easily get full of themselves, but most of the problem I hear is from LLs being held accountable to the strict, black letter law.  Probably no worse than renting to RE agents.

You should still run this past your title company underwriter.

Real Estate litigator? 

<looks in mirror>

I might.