Closing Costs, What Part Of The Process Can I Do Myself?
I just had a meeting with a RE lawyer, trying to get information on can services they can provide me and the cost.
He metion helping me with the drawing of the documents and then he will be the one doing the offer letter, p & S agreement, title examination, limited power of attorney, etc..... ( now I have John's forms from his manual, however I buy in MA, so I think there some clauses that need to be added on them), this lawyer wants to charge $200 p.hour.
Can you guys help me find out once I am in the process of making an Bub to offer to a buyer and also in the process of selling a CFD to a buyer, what can I do myself to save $$$ and what part it's important that I have a lawyer do for me.
I am starting out and alrey spending a lot of money between incorporation papers, and marketing ( b/cards, postcards, voice mail system, ad in the paper, signs etc...)
Please help me find out how can I save some money !!!
thanks in advance!
Susana
PS: I think you guys are the best thing that ever happen to me, I have spent so much money in the past in books, tapes etc.... and never did anything, ever since I got John's manual and signed up for this website I have put myself to work and I will keep you posted, hopefully I will be making some deals real soon 
Hello!
Ok, you got John's book. That's great!
Now, I've thought about your question, and I'd say that it may not be a bad idea to take the forms you have from John to your lawyer to have the lawyer make sure that they're all nice and spicy-dice for your state. Also, you may want to call or email John to ask him before you spend the $200 on the lawyer.
Just some random thoughts,
OnTheWater
"the offer letter, p & S agreement, limited power "
I'm thinking you can do these yourself. And why not get a title company to handle all the closing details. They'd be cheaper than an attorney.
thaks for the answers.
that's what I was wondering, john talks in his manual about the importance of having a RE Lawyer and so do many other REI that I have had the chance to read their books, so I was wondering when you do find a lawyer what do you need them for??????????
After all, most of the documents once they've been drawn up you can just sign and fill out yourself and you are right a title company can not only run a title but also help you with the closing.
I started interviewing attorneys before I ever purchased my first property. I followed many guru's advise to build my mastermind team to help guide my through success. I interviewed nearly two dozen attorneys before I decided I would have to use two. I have one that I use for my corperate dealings and one that I use for the real estate side of things. You will find that most competent attorneys will not be accepting new clients. I happened to find one just recently that I am going to start using a lot more because I am not requiring a lot of his time right now and our personailities match perfectly.
There are a lot of people who take the approach that you should get into real estate before mastering it, but the only reasoning I see behind that is that most people will not persue it enough to be successful. If you are going to be sucessful build you team so well that they depend on you as much as you depend on them!
myfrogger,
I totally agree with you, and I do believe in the power of networking and also in building a succesful team, that's what I am trying to do right now. I am so feed up and upset at myself because for two years I've been tellin my husband, friends, family etc... that I really would like to invest in RE and become good at it, but I have never taken the first step. Well this year I decided to end that, I am opening an LLC and meeting with an accountant next week. I am putting my marketing campaign together to start putting out bandit signs, and ad in the paper, and postcards too. I know I have to get a voice mail system, sign up with a data service company so I can get the lists I need etc.....
HOWEVER, my husband is starting to wonder what am I doing because all of this costs $$$, and although I am ok with it and he is supportive he is starting to question
He is probable thinking does she really know what she is doing???
Anyways that's why I am trying to get help from the experts here, so that perhaps I don't need to pay for all those things at closig and I can save some more and go on to finally sign a deal to show everyone that is questioning me that I do know what I am doing and that I am determin to make this happen.
Susan,
My suggestion would be this,
do the due dilligence that you can to find out what kind of paperwork your state uses. Deed, Warranty Deed, Mortgage Deed, etc.. READ all of johns contracts, until you can tell the attorney what each part of the contract mean.
Then ask the attorney quite simply are these forms as written ok for my state?
If not, what needs to be changed to make them legal. I really would like to use these. he may just write in a clause here or scratch out one there, you can retype it yourself and wallah!
Once you have a LEGAL set of papers to work off of, you will in all likelyhood NEVER need that attorney again. Just make copies of all your docs and re-use them.
So you can spend $200 now ONE time, Or you can spend $20,000 later trying to unravel a mess of a deal that was put together with invalid contracts.
I realize that we always want to scrimp and save, especially starting off. But I can tell you firsthand a good attorney is worth his weight in gold. Make sure you find an Attorney that comes recommended by your local REI group, they in all likelyhood will understand how CREI works and can make your first step a smooth one.
thanks so much for all of your answers, I think I am going to take all the forms I have from John's manual to my lawyer and have him go through them to make sure they are standard for my state, I do agree it is worth it to pay the $200 p.h now than to have any problems later on.
Best, Susana
I see mentioned in these posts "John's manual." What exactly is John's manual and where can I find it? What is it providing? If it's just contracts I'm a licensed agent and already have access to contracts.
Hello icarley,
I bought the sub to Manual by John Locke, is a great manual describing in detail how to be a creative REI buying subjet to. It explains the method, gives you a script that he uses when meeting with the Sellers, it tells you which froms you need to use when selling and when buying, describes what each from is and what is used for and it gives you the forms, it's a great program. I was going to do the Peter conti mentorship program but after finding this site and getting John's manual I realized I don't need it. The best part about his manual is that he gives you access to hinself via e-mail or phone 24/7 and although I have not spoken with him yet I am pretty sure when it comes time to run a deal by him, he will be there for me.
I hope this helps
Best, Susana