Using an Attorney to Buy a House

The most expensive thing most people will buy in their lifetime is the house in which they live. In addition to being expensive and taking decades to pay for, the purchase of a house also represents one of the more complicated legal transactions most people will ever encounter. Despite the need for contracts involving bankers, city, state and county tax assessors and other legal entities involved in the sale of land, most people never even consider hiring real estate attorney to assist them with the purchase of a home. That’s unfortunate, as the relatively small amount of money saved by hiring an attorney now could possibly save thousands of dollars later.

How can an attorney save you money? By double-checking all of the terms and documents of the transaction to make sure everything is legal and proper. Most people who buy homes don’t bother to check zoning ordinances or whether or not the home or fence on their property encroaches on that of a neighbor. An attorney can check these things along with tax issues and any one of a number of minor things that most buyers never even know to think about.

Right now in Texas, a number of homeowners who lost their homes to foreclosure are engaged in lawsuits against the company that sold houses. Among the allegations in the case are suggestions that the company that sold the property did such things as:

Tell buyers with bad credit and even previous bankruptcies that they qualified for unusually large home loans. Some of these loans had monthly payments that exceeded 50% of the buyers’ monthly income. In short, they agreed to lend buyers money that they knew the buyers could not afford to repay.

Provide buyers with mortgage documents that stated that the property wasn’t being resold but was rather being refinanced by existing owners.

Offer loan documents that contained a number of blanks which the sellers filled in sometime after closing. Buyers were later shocked to discover that their monthly mortgage payments were much higher than they had been promised.

Showed the buyers fraudulent appraisals that suggested that the property in question was worth 2-3 times its actual value.

A lawyer would have caught any one of these problems, had even one of the displaced homeowners bothered to hire one ahead of time. And yet hundreds of buyers appear to have been victims of mortgage fraud because they weren’t willing to spend a few hundred dollars to have an attorney look over the documents before they signed them.

Buying a house is agreeing to an obligation that can tie up your finances for decades. It only seems reasonable that if you are going to spend hundreds of thousands of dollars on a place to live, you might want to consider spending hundreds of dollars to make sure that the terms of your purchase are legal and reasonable. A little money spent now could save you a lot of money later.

Sources:https://bronchicklaw.com/using-attorney-buy-house/

William Bronchick`s Art of Flipping Houses | Yield Higher Returns

Since the first decades of the 2000s, house flipping has become the day trading in real estate market. Look around, you will find a plenty of books, media articles and even reality shows that have tapped flipping as a lucrative stride for real estate traders. Uncertainty, flipping is hot – due to umpteen number of ways to do it.Why not take a look at some flipping methods? Here is a quick list of ways from William Bronchick to flip a property for profit.

Property Flipping

Let`s initiate the process with the most common form. The process involves buying a fixer-upper, revamping it and vending it on the “retail” market to a person who will live in the property. Being the most popular methods, it ensures the capital gains on your investment – significantly higher. This technique is tried and true technique that works well. According to William Bronchick, a financial gain in the range of $15 – $50k can be yielded in one deal, depending on your market and how good you are at finding bargains.

The deal ends up failing when the fix and flips is either paying too much or involve underestimate repairs. It is necessary to be conservative about the fix-up costs and the total time required to resell a property. Also, involved the cost associated with a real estate agent for selling a property.

Refinance & Lease

Selling your fixer-upper for terms is significantly a supreme option than selling them for all cash. Because you can refinance the property at its new appraised value, as soon as you complete the rehab. Otherwise, you have little or no money at the end of the deal.

Lease the property and add a sideline of buying. Rent payments from your tenant/buyer aid you to cover your mortgage payment (if not, consider an interest-only or adjustable rate loan that is fixed for 3 years). Fortunately, if your tenant makes a decision to purchase, you reap a larger profit, since you don’t have to pay a broker’s fee.

Light Fixer Upper

In order to capture a little passive income in the real estate market, consider selling the property “as is” as a light fixer upper. Sometimes when the local real estate market is hot, you can sell the property in poor condition just a little below market – especially the case with houses in “transitioning” neighborhoods. Make sure you acquire the property sufficiently cheap enough in order to promptly sell it below market and yield profit.

Wholesale

Instead of buying, simply wholesale the property to another investor. William Bronchick advised to choose a Junker property under contract and assign your contract wholesale to someone else who will pay you a few grand for the flip.

Pre-Construction

In a hot real estate market, prices are expected to be a rise to 2% per month, according to William Bronchick. If you make the move, you can put a contract on a pre-construction house or condominium, then flip it to someone else when the development is complete.

Of course, the opposite is also true – you could end up losing money if the local economy tanks. Even you end up with a worthless condo that you can’t sell for more than you paid. Use this approach very carefully.

Illegal Flipping

With the booming real estate market, the impostors have introduced an illegal flipping scheme. The scheme works as follows: unscrupulous investors buy cheap, run-down properties in mostly low-income neighborhoods. Shoddy renovations are made to the properties, then sold to unsophisticated buyers at inflated prices.

Sometimes, the investor, appraiser and mortgage broker conspire by submitting fraudulent loan documents and a bogus appraisal. Eventually, it affects a buyer that paid too much for a house and cannot afford the loan. However, the federal government has started insuring these loans. The government authorities have investigated this practice and arrested many of the parties involved. As a result, the public perceives is flipping to be illegal.

“Flipping” – as William Bronchick described in the beginning of this article – is NOT illegal. Loan fraud in the method is, however illegal – so don’t confuse the two. The above six ways to flip a property are very legal, very ethical and very profitable!

Sources: https://www.allperfectstories.com/william-bronchicks-art-flipping-houses-yield-higher-returns/