Amount Spent On Legal Advice By Rehabbers?
I have a couple questions for anyone who has experience in rehabbing.
- How often do you consult with a real estate lawyer for legal advice?
- How much do you usually spend on legal advice per transaction?
- Do you recommend that I have a lawyer review all contracts and subsequent addendums?
I am still in the planning stage and would like to get a gauge on how much I will be using a lawyer and how much this will cost.
Thanks,
wayne
You dont. Im not trying to sell anything. I just know some really good teachers. This really isnt a lawyers domain. They cant help you much they mostly function as closers in Real estate transactions and most investors dont use them for the purposes you are trying to accomplish. Try Louis Brown he has the best legal forms in the biz this is widely known. Use YOUR forms in real estate transactions you want contracts to benifit you not someone esles. Again ask around. Question some more creative is a great place to pick up some interesting information. But even if you ask Legrand he will tell you the same thing or Adams etc
that is all well and good, but what if your contract has to stand up in your state's court one day, and you didn't bother to seek out an attorney that could ensure your contracts comply with state laws?
This is my biggest gripe with LeGrand and all the gurus, they just throw forms out everywhere, and those forms can get people killed financially.
My .02 cents
Hello Wayne,
How often do I consult with an attorney for advice? Once, maybe twice depending on the situation. As it was stated before, I would recommend that you develop RE forms for your own use that protects your interests as the buyer/investor of properties. Then, take those forms to an attorney and have them review them so they are in line with the State's laws. That's what I did and now I have forms that cover my butt and have a good chance of holding ground in court if it came to that down the road. In the event that you need legal advice on a specific deal, then that would be a time when I would suggest you seek that attorney's counsel again. After you do enough deals, you should be pretty comfortable doing things on your own. Remember, no deal is worth losing your pants on because you were too frugal to pay an attorney for their advice. Consider the advice in this message board as a general guideline for your decisions or a way to bounce ideas off of those that have been-there-done-that...although most will comment and then recommend that you seek legal counsel (as would I if asked).
As far as cost, that varies depending on the nature of your requests and the length of time required to address your concern(s). Remember the phrase, it's not what you know but who you know? You have to know someone that knows an attorney. Use your network to your advantage. Ask if you could take them out for lunch in return for them reviewing some forms for you. I'd advise you to find an attorney that also owns investment property as well. That extra requirement goes a long way.
By all means have your paperwork for the first few deals you put together be reviewed. It's a piece of mind if anything else...especially if you are just starting out.
Good luck in your investing.