All Forum Posts by: Richard Balsam

The Quitclaim Deed isn't as strong as another type of deed ( like a special warranty or just a "regular" Warranty Deed - but it will work fine.

All it says is that the person who gave it to you relinquishes any control over the property - you still have the same position as before- except maybe 100% ownership now. Either way - they cannot come back to you years from now and claim they have an interest - as long as you file the deed asap. So- title will show that you own their portion- not them. Yes- anyone can quitclaim anything - even if they don't own it - but in this case- they did own a share of the home- and now they don't - once you file the deed. 

Just double check before filing the deed that no other deed or lien was filed against the property by them- or someone else - just to be sure that their Quitclaim is filed after your original warranty deed was filed. Otherwise- a title issue may be present when you try and sell the home down the road.

Quitclaim is used a lot when transferring between companies or in cases of divorce, sickness (near death), etc.

I don't believe there is a separate agreement for a subject-to transaction for Georgia . In your purchase agreement with the seller- it must state under the financing provision - that you are taking the home subject to the existing financing, and that you understand the risk of the bank calling the loan, and the seller understands the risks if you do not pay the mortgage as agreed.

An investor friendly attorney would know what to do. 

If the house was scheduled for auction- it must be advertised. The ad must show the law firm. Speak to them. Since it is their job to advertise to the public of an upcoming auction- it is their responsibility to alert the public and answer your questions.

Depending if there's any title issues- it may be best to get the house at the upcoming auction - with other people you hire if necessary- to listen for the house to be called. Since there is no particular order for the houses to be called at auction ( and the Fulton courthouse is a trainwreck -literally, to hear them call the house) - you will need a few people to listen for the house being cried out. For example- what if the attorney's office has two people crying the house- and only you show up? What if the attorney uses a service like Verifyd - who utilize anyone they decide to hire- (and they do have multiple criers), and don't care if anyone hears them - you will need multiple people to help. I've attended auctions to hear certain houses- and missed them - if they were called at all.

Good luck- keep following up with the house!

Nice job managing a four hour drive rehab project! Maybe you found a great area to farm!

Depends on how you define the "metro area". If "metro" to Gainesville - I know of a small northern office of AtlantaReia - in Buford. But- they are now using video feeds from that location- and stopped the monthly meetings there. There is a small investor group called the Mountain Investors group from Atlanta Reia that meets in Cumming off of Exit 14 on 400.  You must join Atlreia to be a part of their meetings.

If you want to travel a bit- of course there are the two main REIA's in Atlanta, and a lot on meetup.com. Depends on your goals and how far you want to drive.

@Stan Sugarman You are right- escrow deposits must be held by the broker who has the listing... IF there is a listing. When an agent is acting for himself/herself - buying direct from a seller, the only disclosure needed is for the license disclosure - and it can be placed on the purchase documents ( the only requirement is that all parties must easily see there is a licensee in the transaction). The purchase documents are not GREC forms- they can be any forms - just like from any investor.

The closing attorney holds the escrow deposit. The closing will be in 2-3 weeks - since no traditional bank financing in most cases - just like any other investor purchase.

My broker knows full well what I am doing. He only wants paperwork on FMLS related transactions - and I do not owe any fees upon closings - if on a non FMLS transaction - just like any private investor purchase or sale.  The only difference is that I place my disclosure twice on the paperwork - that I am a licensed real estate agent with ____ Brokerage in Georgia. No biggie.

@Andy F. You make a good point...but here's my two cents:

When a seller asks if I have a license - I don't just tell them "yes". I use it toward my advantage - not as a liability. Hers's how:

Seller: Are you an agent?

Me: That's a good question!.  I happen to be a real estate investor. In order to better protect everyone in the transaction - I have a real estate license too- so I am held to a higher standard by the state.  Is this an issue - or do you feel more comfortable now?

Usually- it reduces their fear of a the unknown. In most situations - it will help. Of course- there will always be a few oddball sellers that hate agents and want to deal with unlicensed people. But- as a general rule- I have never had anyone question why I have a license - or stop me from taking their listing - when they want to sell!!!

@Jorge Borjas Good question! I use my license for multiple activities: Of course- comps, when buying and when selling, tax data- to see what I am about to pay when i own the home ( for long term holdings), check the DOM (days on the market) for the subdivision I am either buying on, or when I plan on selling, etc. 

Then, more advanced stuff that those without licenses will have a tough time with: active real estate agents working the area - so i can call them to preview my house - in case they run into potential buyers they know of in their office, Then, I have Listingbook software on my I-phone ( Works with MLS data- by subscription)- that actually knows the number of searches of homes in any given area - so I can blast a promotion of my house to all the agents that have clients looking in the area (not just my subdivision -unless that is what I want), and...for the investor in me: track all the mortgages recorded against the property, so I know how low of an offer I can make - based on the mortgages on the property. Yes, I know sometimes sellers bring money to the table to close- based on condition, liens, etc - but as a general rule- this helps.

Other than that- a license doesn't do much!

One more piece of advise to help make up your mind in the "pro" column: 

Georgia and Florida have started looking into the legal gray area of wholesaling without a real estate license. I personally spoke with the Florida Real Estate Commission in Orlando (FREC) and also Georgia's GREC a few months ago. Both said the same thing to me (so I know a problem is brewing): 

"Nobody is allowed under the law to assist a seller in any way, while earning a  fee, commission, or profit from selling someone else's property without a license. Period. "

That's pretty must the final answer I needed to hear from them. 

I explained to them that wholesaling is selling a piece of paper only - selling the right to buy at an agreed upon price. Didn't matter. They said that if the contracting buyer didn't have the funds to buy at the time of agreeing on price with the seller - it was under a false scenerio - since they were not going to buy the house from the start. That was their words- not mine.

I remember watching a video done by the National Real Estate Investor Association online interviewing Ohio ( I believe) real estate commission. They said the same thing...

People can argue either way - only the law is right. So whichever way the law allows is the correct way. Since I am licensed- it's a moot point for me. Obviously, I'm on the "get a license" side of the argument - so whatever outcome happens down the road - it doesn't affect licensed agents anyway. 

Like I said- just another issue to help you make up your mind. It might not even apply to you - just another issue in a somewhat gray area of real estate law.

But remember- if a buyer buys the home in a double closing - no issues whatsoever - anywhere. The above doesn't apply. Only the wholesaling act with no intention to purchase the home without a real estate license is in question.

Wow- nice job with your persistence. It's a shame you had to go through that - for something that should have been a quick process. Some judges shouldn't be in law- and there should be a process of review for judge rulings - especially in Magistrate court- where they don't have to be lawyers.