All Forum Posts by: Kyle Bryant

Another thing I would do is, after you file a lawsuit, file a “lis pendens” on the property. This is basically a document that gives notice of pending litigation with respect to a property. It’ll give any title company serious pause before insuring title on a sale, and it will notify potential purchasers that there is a claim involving the property. That may slow down any potential sale.

You should have taken a mortgage when you got the promissory note. Looks like you got hosed on this deal. Like others have said, you must sue them, get a judgment, and then file a judgment lien against their house. And even then, In most states, homestead residences are immune from foreclosure on Judgment liens. Sorry man. Bad deal.

If you're doing a 60/40 split it sounds like the investors own 60% of the property. And the only way to gain 100% ownership is to buy out your investors, which will depend on your agreement with them. Remember though, 40% of something is better than 0% of nothing.

@Jingru Sui Most loans do have a due on sale clause. But, just because you transfer the property to your LLC does not mean the bank will call the loan due. It just means they can. Talk to your lender; sometimes they will be willing to not enforce the due on sale clause if you have a good relationship with them.

Michael Le you're right, my mistake!

I agree with most everyone here: Houstonians probably won't leave because of Harvey. Katrina was so different from Harvey in that people left NOLA and never came back. Not that many people left Houston, and those that did have already returned. Our major job centers are still operational; only minor setbacks. That said, if you are looking for another Texas market to invest in, stay in the "Golden Triangle" (San Antonio to Austin to Dallas to Houston). Some emerging markets along that stretch may be towns like San Marcos: in the triangle, college town, strong population growth, not Austin-y house prices.

Wow, very impressive! My grandparents have some land out in Kosse, Texas. I would love to do something similar out there (even if only to visit myself)! Did you already own the land these are built on?

My suggestion is to keep a running list of questions you have for your attorney, and then email that list of questions at one time. It'll make his time responding (hopefully) more efficient than charging for each individual response he would have sent. Do the same thing with phone calls. 

I've had clients flabbergasted that their bills were so high, yet they called and complained over the smallest non-legal things that they could have taken care of themselves. Attorneys trade in time, so we charge for the time that you use. There are arguably better ways to price legal services, but that's where we are as an industry. 

@Jingru Sui This isn't legal advice, etc. etc....but

It's fairly easy. Just sign a general warranty deed transferring the property to your LLC, and record the transaction in your county clerk's office. I would stay away from Quitclaims if possible, because title insurance companies won't insure them. But whether such a move is advisable is a different question (and one that is sensitive to your own personal situation). A lot of it depends on what your relationship to the property is right now—i.e., do you own it outright? Is there a mortgage on the property? Does the deed of trust or mortgage note have a due on sale clause? Are there partners involved? The answers to questions like these may affect the answer to your question. If you have a lawyer, ask him or her. If not, an astute Googler could probably find the answers.

@Brannon Randle check Louisiana's real estate laws, but in many states you don't need a real estate license to wholesale, which is essentially assigning rights in a contract for a fee. Even if your state does require that, doing what is called a "double close" would avoid that requirement (although the process is a little more cumbersome). 

You don't necessarily need to have the seller agree to an assignment of contract rights, since it is your rights that are assigned, not the seller's. But many people let the seller know about the upcoming assignment as a business practice to keep everyone informed.