How to Be an Ethical Real Estate Investor

Many people have a very 19th-century view of real estate investors. They think that we are modern-day “robber barons” who prey upon distressed or ignorant people, take advantage of them, and laugh all the way to the bank. The truly sad thing is that some real estate investors think this of themselves, and think that in order to get ahead, they must behave unethically. The truth is that, in the long run, it pays to be a scrupulous investor. Do you really expect referrals if you “take advantage” of people? Of course not. Envision yourself as a problem solver and your business will be much more successful – and you’ll be able to sleep at night.

William Bronchick - Bigstock Business Meeting
William Bronchick – Bigstock Business Meeting

Help People With Their Problems

PT Barnum said, “There’s a sucker born every minute.” But in today’s world, “suckers” are a little harder to find. The Internet makes knowledge much more widely available, and people are generally savvier then they’re given credit for. In fact, ignorance is much more likely to err on the side of overpricing a home than underpricing it, and besides, do you really want to make your living by taking advantage of people? Doing so will likely come back to haunt you. Instead, you should focus on finding people with problems. It’s your job to help them.

There are thousands of properties across the United States that people desperately want – need – to unload, and they’re willing to do so at a discount and with favorable terms. Perhaps the owners have been involved in a divorce, received a job transfer, or they’re under a tremendous amount of financial distress. Don’t think of yourself as “taking advantage” of the situation. Think of yourself as extending a helping hand. The sellers will be able to detect the difference in your attitude and will respond differently to you. And after all, they need to sell. It’s hurting them each day that their home is on the market. If you come along and are able to negotiate mutually agreeable terms, then it is a win-win situation.

Be a Full-Time Problem Solver

The surest path to real estate investment success is to focus solely on helping troubled people solve their problems. Many distressed sellers are embarrassed about their situation or don’t want to tip their hand for fear that you’ll take advantage of them. So simply ask the following questions of anyone you find through a classified real estate ad. Why are you selling? When do you need to sell by? What are your plans after you sell? What is the minimum amount of cash you need in your pocket as a result of this deal? What do you plan to do with the proceeds from the sale of your home? If we were to close within a week and I paid cash for the full purchase price, what’s the best deal you could give me?

Do not act like an interrogator. Strike up a conversational tone. Truly desperate sellers will be anxious to talk to you. Keep the conversation moving and get all of the information you need. Casually ask the same question in different forms more than once to make sure their story remains consistent. As previously stated, many distressed sellers are embarrassed about their situation. Do your best to make them feel at ease.

You Can’t Solve EVERYONE’S Problems

There are two requirements for every deal I do with a motivated seller:

I make money
– I solve the seller’s problem

If I can’t do BOTH, I won’t do the deal. This is a good rule to live by since doing one without the other is not good for your business. If you help the seller and don’t make money, you are working for a charity (which is fine, but keep it separate from your BUSINESS). If you make money and don’t help the seller, you are a slimeball!

For More Information:- William Bronchick

Important Lease/Option Tips & Strategies

Lease

Lease/Options can be fun and profitable, but there are certain pitfalls. The following are some practical, legal and tax tips William Bronchick have learned from doing many lease/options deals over the years.

Protecting Your Option

Lease/options are great, except when the seller decides not to live up to his end of the bargain. Sure, you can always sue the seller to force him to sell you the property, but this can cost you thousands of dollars in legal fees and take years to accomplish. You need to be in a better position if you want your investment to be protected.

Here are three good ways to protect your option:

» Record the Option.

If your option was signed before a notary, you can record your option in the public real estate records. This will give the world public notice of your interest. If the option was not notarized, you can sign an affidavit called a “memorandum of option” and file it in the real estate records where the property sits. Keep in mind that this does not create a lien, it only creates a “cloud” on the title.

» Escrow the Deed.

If your seller has died or disappeared, you will have a big problem getting him to sign a deed. An escrow should be created up front in which a title company or attorney holds an executed deed. When you are ready to exercise, you simply tender the money to the escrow agent and collect the deed.

» Record a Mortgage.

Typically a mortgage is recorded to secure payments on a promissory note. A mortgage can be recorded to secure the performance of any agreement, even a purchase option. You as optionee (buyer) will now be a lienholder, in the same position as a secured lender. If the seller refuses to sell the property, you foreclose. Now the seller has to go to court to protect himself, rather than the other way around.

Avoiding the “Equitable Mortgage”

Tenant/buyers who default on a lease/option do not always go away quietly. Sometimes, they fight the eviction and go into court kicking and screaming, “I HAVE AN EQUITABLE INTEREST IN THE PROPERTY.” What they are arguing is that the lease/option is not a landlord/tenant relationship, but rather a seller/buyer relationship. If the Judge agrees, your lease/option is “re-characterized” as an installment land contract. This may require you to foreclose the tenant, not just evict him.

Here are some tips for avoiding the equitable mortgage:

» Use Separate Agreements.

Give your tenant a lease and a separate option agreement. Make certain the lease does not refer to the option. More than 75% of the time, the tenant loses his paperwork.

» Keep Your Term Short.

Do not give tenants more than one year lease/options at a time. If the tenant insists on three years, give him a one year with 2 rights to renew. Draw up a brand new lease and option agreement each time he renews. If you give a cumulative rent credit, raise the purchase price each time.

» Pay the Taxes and Insurance.

Do not let the tenant pay the taxes and insurance. This makes it look like a sale.

» Don’t Give Large Rent Credits.

The more “equity” the tenant has, the more likely a judge will favor an equitable mortgage.

» Watch Your Language.

Refrain from using the words “credit,” “seller” and “buyer” in your agreements. Instead, use the words “non-refundable option,” “landlord” and “tenant.”

Sell Your Option for Capital Gains Treatment

If you lease/option, then sub-lease/option, we call this a “sandwich.” When your subtenant is ready to buy, you simultaneously “buy and flip.” This profit is taxed as ordinary income emphasis William Bronchick. If you held the option more than a year, you may qualify for capital gains treatment. Instead of selling the property, sell your option and let your subtenant exercise it directly from the owner.

Having a trusted advisor or even a mentor when you are new to real estate can really pay off!

Originally Posted: https://bronchick.wordpress.com/2018/04/02/important-lease-option-tips-strategies/

Read Before You Sign on the Dotted Line

Too many investors go to closing and sign documents without ever reading them, taking the word of the “professionals” involved in the closing. This is a huge mistake unless that professional is your lawyer, and he or she has read and understood the loan documents. Don’t presume that the lawyer you are paying represents you. Many banks have lawyers that represent them and charge that fee to the borrower says William Bronchick.

Mortgage brokers and lenders are not by their nature dishonest but there are enough shady characters that try to slip things by on borrowers. In some cases, it is a mistake by the lender or a miscommunication between the mortgage broker and the lender, both of which result in the borrower getting a different loan than what was promised.

The most common things that are incorrect on a loan are:

Prepayment Penalty

The most common “hidden” clause is a prepayment penalty that the lender does not disclose or that was supposed to be omitted. The only way to know for sure is to read your mortgage note to see if there is a prepayment penalty clause. In some cases, a lender may say there is no prepayment penalty but has inserted a “soft” prepayment penalty (applies to. In addition, read carefully how much the penalty is, and how long after the loan is originated the penalty applies.

Fixed versus Adjustable Rate

If you pay for a fixed-rate loan, you may end up with a surprise at closing in the form of an adjustable-rate loan that is fixed only for a certain time period, such as two years. In some cases, you may be promised a five-year fixed rate and end up with a three-year fixed rate. Moreover, read carefully about how the loan adjusts. Some ARM loans can only be adjusted twice a year, others can be adjusted monthly. Finally, look at the amount the loan can adjust each time, and the maximum rate the lender can charge over the life of the loan. All of this will be spelled out in the mortgage note. (Hint: if the note is titled, “Adjustable Rate Loan,” it’s a dead giveaway that you don’t have a fixed-rate loan!)

Owner-Occupied Loan

If you apply for the loan as an investor, the mortgage broker may submit it for approval as an owner-occupied loan, either by accident or on purpose. Read the documents carefully. Do not sign your name to any document saying that you promise to live on the property if you aren’t actually going to do so. In most cases, the mortgage or deed of trust will have a rider (addendum) that says you do not intend to occupy the property as your principal residence.

The bottom line my friends is READ before you sign. Once you sign, you are out of luck, because there’s no three-day right of rescission for an investor loan emphasis William Bronchick! Remember, having an attorney or mentor that understands real estate is always a bonus!

Originally Posted: https://bronchick.wordpress.com/2018/03/26/read-before-you-sign-on-the-dotted-line/

Creative Real Estate Marketing Ideas in 2018

The estate market continues to grow in 2018. Hence, agents should think about the ways to improve their estate corporate marketing methods this year. This is crucial to have tactics that will help individuals maximize visibility and stay apart from the competition, says William Bronchick.

Digital Marketing for Real Estate

There is a huge competition in estate industry these days, hence individuals needs online and offline marketing strategies. If you are looking for some marketing ideas then you are at right place. In this article, we have compiled a list of estate marketing ideas to help agents stand out in the digital age.

Following are some creative Real Estate marketing ideas that you should follow in 2018:

Create a Responsive Website

 More than 30% of visits are from smartphones. Hence, you should make sure that your website is optimized for all platforms (Android, iOS etc.) as well as devices (smartphone, desktop etc.).

Upgrade the Quality of Photos

Actually, inexpert eyes can tell the difference between good quality photos and hurried clicks. If individuals are looking for home and pictures are blurry, it will leave a bad impression. Therefore, you should take some time to take quality pictures.

Active on Social Media

Today’s, people of every age use social media to share updates about their lives. Being an estate agent, you can utilize the social media channel to grow or cultivate your real estate business. Moreover, you should share value-rich content on different social media sites.

Add Live Chat Option to Your Website

Live chat is an effective online marketing tool. This option allows website visitors to ask questions and get the answers in real time. Furthermore, live chat creates a stronger user experience and provide valuable information to reach out.

Create Content that Provides True Value

According to William Bronchick, the primary focus of an agent should be on clients who want to buy or sell a home. Estate agents have to share the content full of valuable information applicable to individuals not presently in the niche. Moreover, shareable content also increases agent’s exposure to prospective clients.

Follow Up With Clients

This is essential to stay in touch with your previous clients. There is a need to send newsletters and email on regular basis. By providing valuable information about your business and reaching out continuously, previous clients will more likely to remember you when they need some help.

Ask for Referral

Word of mouth marketing is one of the simpler, easiest and cost-effective marketing methods. Here, the key is to ask. You should create a referral program with affiliates, maintain a good relationship with clients and ask them for referrals. More than 80% estate agents agree the fact that referrals from present and past clients are the successful marketing efforts.

Bottom Lines

In order to grow and cultivate estate industry, it requires effort and time. The marketing tactics here are given by William Bronchick, which worth agent’s effort if they follow different techniques wisely and attentively.

Free Consultations with Lawyers – You Get What You Pay For

William Bronchick: When people are facing a legal issue, they are often attracted by free consultations offered by some lawyers. Getting some kind of legal help without paying a dime is a rare opportunity many wouldn’t want to miss, but only for those who don’t know what they can get from it.

William Bronchick Law

There are lawyers who offer free initial consultations, but what you consider initial consultation is not always what it seems to be. They just use them as a trick, a ruse to attract clients and nothing more.

There are several reasons why you should avoid free consultations with lawyers.

  1. These initial consultations usually last for less than 30 minutes. That’s not enough time for a lawyer to get a good insight of your problem and give you good legal advice on next steps to take.
  2. That little time is never enough for a lawyer to provide you with tailored legal advice. The best you can get is a general advice about the usual procedure for issues like yours, but it doesn’t mean that your specific problem will require the very same steps.
  3. Free initial consultations are often conducted by junior staff. Experienced lawyers usually don’t have the time to deal with clients who want free advice and might delegate the case to another lawyer later.

Lawyers want to be paid for their labor, just like you do. Don’t expect to get anything valuable for free. When you get a free consultation with a lawyer, you get what you pay for. And that is not what you need when you have serious legal issues at stake said by “William Bronchick”.

Source By: https://bronchicklaw.com/free-consultations-lawyers-get-pay/

Is Wholesaling Properties Legal Without a License?

William Bronchick: You buy a property, you wholesale it, you profit. Do you need a license to wholesale Property? In most cases, the answer is “no”.

Rental Law William Bronchick

Real estate brokerage is an activity regulated by states on their own terms, thus each state defines which activities require a license. There is a lot of vagueness and ambiguity in some of the state licensing codes, as well as “gray areas”, which complicate the matter. Furthermore, if you vary the techniques and your business practices beyond the scope of what I teach in my courses, it is not always clear how the state authorities might view your practices.

Therefore, this discussion is limited to the simple act of buying and flipping as follows:

  1. Sign a contract with a seller, assign it to another investor
  2. Sign a contract with a seller, sign another one with a third party, then double close

“FOR ANOTHER”

The large majority of states use the “for another” language in their state licensing statutes. The “for another” language means the law provides a laundry list of activities that require a license if you do it “for another.”

A good example is the Ohio Statute:

  • 4735.01 Definitions. As used in this chapter:

(A) “Real estate broker” includes any person, partnership, association, limited liability company, limited liability partnership, or corporation, foreign or domestic, who for another, whether pursuant to a power of attorney or otherwise, and who for a fee, commission, or other valuable consideration, or with the intention, or in the expectation, or upon the promise of receiving or collecting a fee, commission, or other valuable consideration does any of the following:

The Ohio code then goes on to list all types of activity, such as buying, selling, offerings, leasing, negotiating, etc. This type of statute would clearly exempt you from doing any of the listed activity so long as you were doing it on your own behalf. The following court case clearly delineates the difference between acting on your own behalf and acting as a broker.

In Xarin Real Estate v. Gamboa, 715 S.W. 80 (TX 1986), an investor named Xarin entered into a purchase contract with the owner, Gamboa, then assigned his purchase contract to a third party, Baker. When the deal blew up, Baker sued Xarin claiming, among other things, that Xarin was illegally acting as a real estate broker without a license.

The court ruled that “No evidence exists to show that Xarin was acting for anyone but itself when it sold its interest to Baker. Xarin was shown on the sales contract to be only the purchaser and was not shown in any agency capacity… There is also no evidence that Xarin acted for Baker when Xarin acquired its interest in the property from the Gamboa’s. Generally, to establish that one person has acted for another in a normal agency relationship, there must be an agreement between two persons and one must exercise some control over the other.”

Two important points are worth noting here. First, the court acknowledged that Xarin had “an interest in the property” when it signed a purchase contract with Gamboa. As we will discuss later, having “an interest” in real estate allows you to sell your interest, which is specifically exempt from many state licensing laws. Second, the court made an important point that the Xarin did not have a deal with Baker in place when it made the deal with the owner of the property. This is important because the reverse can also be true; if you make a deal with a buyer first, then find him a property, a good argument can be made that activity is brokering on behalf of the buyer said by William Bronchick.

CLEAR EXEMPTIONS

Other states that do not use the “for another” language clearly identify specific exemptions in their licensing statutes. A good example is the South Carolina statute, which reads:

“This chapter does not apply to:

The sale, lease, or rental of real estate by an unlicensed owner of real estate who owns any interest in the real estate if the interest being sold, leased, or rented is identical to the owner’s legal interest”

However, you must have an interest in the property before you sell it. In general, a contract to purchase property gives the buyer an equitable interest in the land. 27A Am. Jur. 2d Equitable Conversion § 10. Thus, if you have an interest in the property, you are basically exempt from the licensing regulations in these states.

TRYING TO SKIRT THE LICENSING RULES

While the basic types of activity I have described is generally exempt from licensing regulations, there are cases in which a license would be required. For example, if you are finding buyers first, then shopping around for properties you can wholesale to them, this could be essentially acting as a buyer’s broker.  The premises of my discussion assumes that when you go under contract with the seller you do not have a buyer to assign or flip to, thus you are “at risk”.

REGULATION FOR ALL

A few states limit the real estate activity of any persons, even if you are acting on your own behalf. SD, MN, WI, MI, MD & MN all have limitations on the number and frequency of real estate transactions you can do before you will need a real estate license. For example, Michigan law limits you to 4 transactions per year, although it is not clear whether using multiple corporate entities will be a workaround.

There’s few, if any, reported cases of people being prosecuted anywhere in the country for not having a real estate license. The issue of licensing is more relevant to the enforcement of your profit. For example, if you assign your contract prior to closing and expect the buyer to pay you at closing, he may stiff you and argue “you don’t have a license”.

The bottom line is that if you don’t act like a real estate broker, the state agencies that license brokers will leave you alone. If you use the licensing exemptions to skirt the licensing laws, you will likely hear from the state licensing agencies. It is important that you make it very clear to all parties in the transaction that you are not a broker and are acting on your own behalf.  Sometimes having a trusted advisor attorney or mentor can truly keep you out of trouble

Source By:

https://bronchicklaw.com/is-wholesaling-properties-legal-without-a-license-in-colorado/

Read Before You Sign

 

William Bronchick: Too many investors go to closing and sign documents without ever reading them, taking the word of the “professionals” involved in the closing. This is a huge mistake unless that professional is your lawyer, and he or she has read and understood the loan documents. Don’t presume that the lawyer you are paying represents you. Many banks have lawyers that represent them and charge that fee to the borrower.

william bronchick - signature image

Mortgage brokers and lenders are not by their nature dishonest but there are enough shady characters that try to slip things by on borrowers. In some cases, it is a mistake by the lender or a miscommunication between the mortgage broker and the lender, both of which result in the borrower getting a different loan than what was promised.

The most common things that are incorrect on a loan are:

Prepayment Penalty

The most common “hidden” clause is a prepayment penalty that the lender does not disclose or that was supposed to be omitted. The only way to know for sure is to read your mortgage note to see if there is a prepayment penalty clause. In some cases, a lender may say there is no prepayment penalty but has inserted a “soft” prepayment penalty (applies to refis only). In addition, read carefully how much the penalty is, and how long after the loan is originated the penalty applies.

Fixed versus Adjustable Rate

If you pay for a fixed-rate loan, you may end up with a surprise at closing in the form of an adjustable-rate loan that is fixed only for a certain time period, such as two years. In some cases, you may be promised a five-year fixed rate and end up with a three-year fixed rate. Moreover, read carefully about how the loan adjusts. Some ARM loans can only be adjusted twice a year, others can be adjusted monthly. Finally, look at the amount the loan can adjust each time, and the maximum rate the lender can charge over the life of the loan. All of this will be spelled out in the mortgage note. (Hint: if the note is titled, “Adjustable Rate Loan,” it’s a dead giveaway that you don’t have a fixed-rate loan!)

Owner-Occupied Loan

If you apply for the loan as an investor, the mortgage broker may submit it for approval as an owner-occupied loan, either by accident or on purpose. Read the documents carefully. Do not sign your name to any document saying that you promise to live in the property if you aren’t actually going to do so. William Bronchick says that in most cases, the mortgage or deed of trust will have a rider (addendum) that says you do not intend to occupy the property as your principal residence.

The bottom line, my friends, is READ before you sign. Once you sign, you are out of luck, because there’s no three-day right of rescission for an investor loan!

Source By:

https://bronchicklaw.com/read-sign-william-bronchick/

7 Reasons to Use Land Trusts in Colorado

William Bronchick: The land trust is a very powerful tool for the savvy real estate investor, and there are many reasons to use land trusts in Colorado. A Colorado land trust is a revocable, living trust used specifically for holding title to real estate. Each property is titled in a separate trust, affording maximum privacy and protection.  Also known as an “Illinois Land Trust”, the title-holding land trust is recognized by statute in Florida, Georgia, Hawaii, Illinois, Indiana, Montana, North Dakota, South Dakota, and Virginia.

Land Trust -William Bronchick

Colorado does not have a land trust statute, but since a land trust is a basic revocable, living trust, it would be recognized under common law trust principles.

Here are seven good reasons to use a Colorado land trust for titling property to real estate.

Privacy

In today’s information age, anyone with an internet connection can look up your ownership of real estate. Privacy is extremely important to most people who don’t want others knowing what they own. For example, if you own several properties within a city that has strict code enforcement, you could end up being hauled into court for too many violations, even minor ones. Having your real estate titled in land trusts makes it difficult for city code enforcement to find who the owner is, since the trust agreement is not public record for everyone to see.

Protection from liens

Real estate titled in a trust name is not subject to liens against the beneficiary of the trust. For example, if you are dealing with a seller in foreclosure, a judgment holder or the IRS can file a claim against the property in the name of the seller. If the property is titled into trust, the personal judgments or liens of the seller will not attach to the property.  This is because of the unique nature of land trusts, which make the beneficiary’s interest in the trust “personal property”, and vests all legal and equitable title in the trustee.  Thus, a judgment against X is not a lien on the property held in a land trust for X.

Protection from title claims

If you sign a warranty deed in your own name, you are subject to potential title claims against you if there is a problem with title to the property. For example, a lien filed without your knowledge could result in liability against you, even if you purchased title insurance. A land trust in your place as seller will protect you personally against many types of title claims because the claim will be limited to the trust. If the trust already sold the property, it has no assets and thus limits your exposure to title claims.

Discouraging Litigation

Let’s face it, people tend to only sue others who appear to have money. Attorneys who work on contingency are only likely to take cases which they can not only win, but collect, since their fee is based on collection. If your properties are hard to find, you will appear “broke” and less worth suing. Even if a potential plaintiff thinks you have assets, the difficult prospect of finding and attaching these assets will discourage litigation against you.

Protection from HOA Claims

When you take title to a property in a homeowner’s association (HOA), you become personally liable for all dues and assessments. This means if you buy a condo in your own name and the association asseses an amount due, they can place a lien on the property and/or sue you PERSONALLY for the obligation! Don’t take title in your name in an HOA, but instead take title in a land trust so that the trust itself (and thus the property) will be the sole recourse for the homeowner’s association’s debts.

Making contracts assignable

The ownership of a land trust (called the “beneficial interest”) is assignable, similar to the way stock in a corporation is assignable. Once property is title in trust, the beneficiary of the trust can be changed without changing title to the property. This can be very advantageous in the case of a real estate contract that is non-assignable, such as in the case of a bank-owned or HUD property. Instead of making your offer in your own name, make the offer in the name of a land trust, then assign your interest in the land trust to a third party.

Colorado’s Unique Trust Statute

In most states, a property in trust must be held in the name of the trustee, for example, “John Jones, as trustee under a declaration of trust dated June 2, 2011”.  Colorado law (CRS C.R.S. 38-30-108.5) allows a trust to take title in its name, then the trustee may file a “statement of authority” identifying the trustee (CRS 38-30-172).  If you want to change trustees in Colorado, you do not need a new deed, just amend the land trust and file a new statement of authority with the County Clerk and Recorder.

William Bronchick: As you can see, the title-holding land trust can be very beneficial for the owner of real estate in Colorado.

Source By: https://bronchicklaw.com/articles/7-reasons-to-use-a-land-trust-in-colorado/

What to do if a Tenant Abandons Your Property

William Bronchick: Have you ever had a tenant leave in the middle of the night or the middle of an eviction? Did you ever wonder what to do when the tenant abandons the property?

William Bronchick-law

Basically, when a tenant abandons the property, you do not need to file an eviction or wait for the sheriff. You can change the locks.

HOWEVER…

If you are not certain whether the tenant has abandoned the property, you should not change the locks. If you have the keys and your lease allows it, you could enter the premises, but KNOCK FIRST. Whether or not the tenant has abandoned is often a judgment call, looking at a combination of factors, such as:

  • Did the neighbors see them move?
  • Are the utilities shut off?
  • Did the tenant put in a change of address at the post office?
  • Is there any significant furniture left?
  • If you have access, are there sheets on the beds?

Even if the tenant is not sleeping there, they are still “in possession” if they have their personal belongings in the unit and have not shown an intent to abandon these items.

If you do intend to claim abandonment, take pictures, gather evidence and cover all bases to prepare for a possible wrongful lockout claim. 

Definitely, give the tenant notice in writing where you have stored their stuff (if you have anything) and give them adequate time to come get it. If you have ANY doubts, call your landlord–tenant attorney and do the proper legal eviction proceeding . Or, here’s another possibility… said by William Bronchick.

PAY THE TENANTS TO LEAVE!!

If the tenant has NOT abandoned your property, or you aren’t sure, or you messed up and they are coming back for their stuff, you should consider giving “Cash for Keys” to bribe the tenant to give up possession. While not deserving if they are behind on rent, it is smart BUSINESS because you avoid an eviction and possible damage to the property by the tenant.  If you do this, however, make CERTAIN you get the tenant to sign a general release of liability form.  This form, when signed by the tenant, will waive their rights to sue you (even if you messed up and they have a claim).

Make sure you contact an attorney to prepare a good general release of liability form.

 

Source By: https://bronchicklaw.com/tenant-abandons-property/

How to Pick a Good Colorado Real Estate Attorney

Accident-Attorney

William Bronchick: No real estate course or seminar is a substitute for a good Colorado real estate attorney. Finding a good Colorado real estate attorney may be difficult since most attorneys are not themselves investors or familiar with creative transactions. Most attorneys will give you just enough advice to keep them from getting sued, but not enough advice to show you how to make more money out of a deal.

A good Colorado real estate attorney is one who advises you of the risks, suggest alternative ways of doing a transaction and charges a reasonable fee for doing so. A bad real estate attorney either says nothing, points out problems without offering solutions or systematically kill deals. This is why attorneys are frequently referred to as “deal killers”.

Ask other investors in your area who they use as an attorney. Join a local real estate investors association and ask for referrals. Ask local real estate agents and title companies for referrals. Do not Google search for a Colorado real estate attorney and pick someone who simply CLAIMS to be a real estate expert, but is really a jack of all trades, one of which happens to be real estate said by “William Bronchick”.

When interviewing a potential real estate attorney, ask the following questions:

» Do you own rental property yourself?

» How many closings do you do per year?

» What kind of unusual transactions have you done recently?

» Have you done any evictions? Foreclosures? Zoning board appeals? Condo conversions?

» Can you explain to me the following concepts: lease/option, wrap, AITD, installment land contract?

» Do you have an assistant who can return my calls?

» Can I email you with questions?

Get a feel for the experience and personality of the attorney. A good Colorado real estate attorney on your side is worth his weight in gold, especially if he can do creative closings.

Source By:

https://bronchicklaw.com/pick-good-real-estate-attorney-colorado/