Subject-to Forms

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Hey guys, when i do a subject- to, what forms or contracts should i have with me when concluding the deal with the seller? oh oh oh oh oh oh

Comments(17)

  • DavidBrowne1st November, 2003

    There are a few ways to go. The simplest way is to get John Cash Lock's subject to is what I do manual, it has all the contracts for purchase and re-sell. The contracts alone are worth the $150. The other benifits are priceless

  • InActive_Account2nd November, 2003

    I just purchased John's book. Unfortunately, we don't use some of these forms in Georgia. Does anyone know where we can find the state-specific forms necessary to do a subject-to transaction?

  • jfmlv19502nd November, 2003

    Hi eissc,

    If you look at page 43 of the manual, you will see some suggestions and you also might want to check out the Sub To net.

    Best of luck

    John (LV)

  • InActive_Account2nd November, 2003

    Thanks John,

    Page 43 says the forms in the course were designed for use in the State of Nevada and may not be valid in other states. "Please check with your attorney and/or state and county offices before using them. You can get State Specific forms off the web or at a local legal forms store."

    I don't want to pay an attorney for forms and I've been told that standard forms available from legal form stores do not protect investors adequately, especially in transactions that use creative investing strategies.

    Let me try to rephrase my earlier question. Does anyone know where we can find state-specific, cheap, and effective forms on the web?

    I've heard that Georgia citizens can get the forms in Louis Brown's REI course (supposedly, they are written with Georgia law in mind), but the course costs $599 and I'm trying to save the money. Maybe a guru's course or an attorney are my only options, but I was hoping someone here can offer a less expensive alternative before I pull out my credit card again.

    Thank,

    Scott

  • rcummings2nd November, 2003

    Your best bet if you're trying to cut corners is to have a standard form and just show it to an attorney to look at and make whatever changes are necessary. Join a prepaid legal service and have them look at your doc's, it may be cheaper that route.

    It may be difficult to find state specific forms in any one location at an affordable price.

    Hope that helped~

  • rajwarrior2nd November, 2003

    "I don't want to pay an attorney for forms "

    No offense meant, Scott but if you're going to be an RE investor, dealing with attorneys (and paying them) is just part of the business.

    As for not wanting to pay them for contracts, here's a simple statement on it: Go cheap now, pay big later.

    By going cheap on your contracts, you may very likely be setting yourself up for some major legal and/or criminal problems down the road. Even if you manage to get some so-called "state specific" for your state from some book/course, or another investor, you still have no security that they are indeed legal for your state (unless the person you get them from happens to be an attorney for your state AND approves the forms) or adequent for your specific real estate transaction.

    Just some friendly advice.

    Roger

  • InActive_Account2nd November, 2003

    Hi Roger,

    No offense taken. Thanks for the advice.

    It just seems to me that hiring an attorney for something as common in real estate as the forms needed to complete the transaction is like re-inventing the wheel. Why should every investor hire an attorney for forms?

    If one investor would hire the attorney, have forms drawn up, and then sell the forms to other investors at a great discount, we could all benefit. After all, realtors have done something similar. I'm just looking for the investor-version of the same contracts. Or maybe I've just come up with an idea for an additional income stream...uh oh, shhhhh don't tell anyone.

    Scott[ Edited by eissc on Date 11/02/2003 ]

  • rajwarrior2nd November, 2003

    It's possible that you have. The problem that I see with that is that
    1)Most investors feel that their forms are golden, due to the amount of work and time they have put into them, and most wouldn't consider even selling them (at least the good contracts).
    2)Anyone can put a contract up for sell and tell you it's state specific and legal, but there is no way for you to know that UNLESS you take it to an attorney to review. If you're going to have to do that, might has well have one drawn up that fits your exact requirements. Saying to the judge, "but Joe's Discount RE Forms for Less said that they are legal in this state" probably won't sit too well with the court.

    Trust me, it's money well spent and it won't be the last time your in an attorney's office getting a contract reviewed/made/changed. Most investors tweak their contracts several times before it's "just right" and changing laws will require adjustments to them as well.

    Roger

  • classimg5th November, 2003

    We support the use of an attorney to review contracts. The sticky spot comes when the seller chooses to waive attorney review (which is their right) so the 7 page assignable rental agreement and 3 page option agreement can be uncomfortable. The bottom line is to gain a level of comfort for both parties and agree to the contractual items.

    Eric & Rosa
    [addsig]

  • moneyprivate7th November, 2003

    Louis Brown. I recommend all of his forms. Has a reputation of having the best forms in the biz. The forms arent ghosted and are unique. I know the atty that did them and he is very very good

  • reibyme7th November, 2003

    Quote:where do i find Louis Brown forms?
    On 2003-11-07 10:03, moneyprivate wrote:
    Louis Brown. I recommend all of his forms. Has a reputation of having the best forms in the biz. The forms arent ghosted and are unique. I know the atty that did them and he is very very good

  • MarleneM8th November, 2003

    Type "Louis Brown forms" into a search engine online.

    Marlene

  • InActive_Account8th November, 2003

    I spoke to a real estate attorney at our local REI club (GaREIA) and he said that he can review my contracts to make sure they are investor friendly. Even though I tend to be a little frugal, I'll be paying him a visit very soon. Many thanks to everyone for your advice!

  • bsbarnes8th November, 2003

    I have heard good things about William Tingle's Sub2 course. See ****Must Reach Senior Investor status before posting URL's*** for info.

  • cmyoung9th November, 2003

    Just a quick thought....I know that it has been a little over a week since you originally posted this message. Have you tried talking to another investor in your state that has already been to a RE attny. You could probably buy these documents really cheap off them. The downside is the risk of being stiffed, which is highly unlikely if you let him know that you just might pass some of your prospects that you dont want to deal with their way. Just a quick suggestion for getting around those high legal bills!

  • pj94z12th November, 2003

    Quote:
    On 2003-11-08 20:54, eissc wrote:

    I spoke to a real estate attorney at our local REI club (GaREIA) and he said that he can review my contracts to make sure they are investor friendly. Even though I tend to be a little frugal, I'll be paying him a visit very soon. Many thanks to everyone for your advice!




    How did it go with the attorney?

    Did he charge a lot to go over forms?

    Also, I am looking for all kinds of forms and have some forms which I would like to verify...

    Let us know how it went!

    PJ (gareia member)

  • InActive_Account6th December, 2003

    The trip to the attorney was well worth the time. Here's what happened:

    My partner and I met with two attorneys. One was there for the first hour and the other for two hours. They answered all of our REI and LLC questions and checked out a few of our forms as well.

    To my surprise, the older attorney said that he helped Louis Brown create his forms, and the firm uses and recommends them highly. They even had the Whole Enchilada package sitting on their bookshelf along with a bunch of law books.

    Another surprise came when the meeting was over. The entire two hour meeting cost us absolutely nothing. And better yet, as long as we do our closings with them, they'll continue to review forms and answer questions without the typical $150 to $250 per hour charge.

    If you haven't gone to an attorney yet, don't let the money stop you...like I almost did. In fact, it may not cost you a penny. When you call to make the appointment, just ask the receptionist how much they charge for an "initial consultation". They will most likely say the first visit is free. Even if they don't, don't let a couple hundred dollars stop you from talking to an attorney. I would have been happy to pay $200 for the peace of mind I now have.

    Thanks for the advice everyone!

    Scott

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