3 Good Reasons Why You Should use an Attorney for Your Real Estate Investing
February 19, 2010 by Kenny Santos
Filed under Real Estate Investing
Skimping on attorney fees could cost you more than you bargained for when investing in real estate. New real estate investors often save money on their rehabs by cutting corners, doing work themselves and trying not to spend any money to make money. When it comes to having a good real estate attorney though be prepared to spend away.
You have to ask yourselves what you are willing to pay for a piece of mind especially if you deal with tenants. A few good contracts written up by your attorney will easily be worth it after your first eviction or foreclosure.
You can find hundreds of template contracts and real estate forms on the Internet, but just how legal are they? Ask yourselves why they almost always recommend you have your own attorney look them over anyway.
There are hundreds of reasons to use a real estate attorney in your wealth building, but here are my three favorites:
Title opinions. In some states you are required to buy title insurance to guarantee the marketability of your property. In others it is recommended to get a title opinion. A title opinion is the opinion of an Attorney regarding the merchantability of title based upon the title examination and commonly is written to a lending institution who will rely on this title opinion for the validity and ranking of its mortgage. This process could get pretty complex especially when dealing with vacant, bank owned and estate property.
Tenant Forms. If you have rental units it is imperative that you have a real estate attorney look over your documents to make sure that the language is specific to your situation and state. Tenant law in Iowa may not be the same as tenant law in Nevada. Trust me, if any wording is wrong in your 3-day notice or eviction paper work the magistrate or judge will spout out some state statute, your tenant will get to stay and you will have to start all over.
Leads. Attorneys can be a great source for leads. Motivated sellers often come from extenuating circumstances like divorces, bankruptcies and estates. If you have a good relationship with a real estate attorney perhaps you can help his clients out when they find themselves in situations like any of the above.
If you are new to real estate investing a real estate attorney should be on your team anyway, if you don’t have one yet be sure to find one fast. Your realtor or banker should be able to recommend a good one for you.
About the Author
Robb Beltran is an active real estate investor and publisher of the Real Estate Info Network. The Real Estate Info Network promotes real estate education through real estate seminars, e-books and real estate investing courses. www.realestateinfonetwork.com www.belstarproperties.com
4 Tips On Foreclosed Real Estate Investing Success
September 16, 2009 by Kenny Santos
Filed under Real Estate Investing
Foreclosed real estate investing will take more than just having enough capital to invest. Such a venture may require you to learn more about the ins and outs of foreclosed real estate investing. Such investments also come with their own risks, just like any other profitable venture. Success belongs to the wise investor and that is what you should aim for if you wish to profit from your real estate investments.
Real estate investing is governed by rules and guidelines that you should be following. Along with such guidelines, there are also a number of useful tips that you can utilize when you venture into foreclosed real estate investing. Here are just some of them.
1. When looking at the profitability of properties in foreclosed real estate investing, one of the things that you should first be considering is its location. Location has everything to do with foreclosed real estate investing.
The right location will determine the attractiveness as well as marketability of such foreclosed real estate properties. The best locations where you can get the best deals in foreclosed real estate investing is in mid-level to upscale neighborhoods. Property investments in such areas not only will make you acquire properties that have a wider market among prospective homebuyers, they might also be easier to sell.
2. Investing in properties during an economic downturn can also work to your advantage when you are into foreclosed real estate investing. With the slowdown in the economy, some families may not be able to cope up with their higher than average mortgages and might opt to put their homes up for foreclosure in order to salvage what might be left of their investments.
And it is during these times that many foreclosed real estate can be acquired at very attractive bargains. And with the bargains that you might get will result to more profit when you put up such properties for sale.
3. During a typical foreclosed property transaction, never sign any purchasing contracts without including an inspection contingency period for the property in question. This will be able to safeguard your own interests especially when you find out about serious problems that might show up during such property inspections. Remember that most foreclosed properties are fixer-uppers, with some in need of major repairs.
Such a case is not necessarily a bad thing since they can also help bring the property prices down even lower. But you must also be able to weigh out the costs of repair with the property value that you have in mind. Be also wary of hidden problems that may crop up only during inspections. This way, you are trying to cover all the bases and keep your investment options work to your advantage always.
4. Before you go into price negotiations with the property seller, try to obtain a loan pre-qualification or a loan pre-approval letter. This will make you a very attractive potential buyer in the eyes of the property seller, knowing that financing such purchases on your part is already guaranteed. Property sellers are more likely to deal with buyers with available funds than someone whose financing capabilities might still be in doubt.
Success in foreclosed real estate investing would rely on how you follow such tips and make them work for you. It would be a mistake going blindly into any investment opportunity that comes your way. It pays to know and learn what you are getting into. That is essential to every successful real estate investor.
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