An investor, maybe you, wants to lend some money to a real estate investor. What kind of documents are required for this transaction? The answer depends on the complexity of the transaction, but lending professionals tend to use similar documents across the board for a standard transaction. We will start with the most important documents […]
Continue ReadingReal Estate Law
Private Lending Basics
Due Diligence for Landing Real Estate Deals Private lending, or “hard money” lending, is a great way to deploy funds in a self-directed IRA. With interest rates approaching 15-20% in some cases and fixed payments coming in every month backed by real estate, it’s a passive investment that’s hard to beat. In this article, I’ve […]
Continue ReadingHome sale fraud: examples
Understanding Home Sale Fraud: Examples of Court Cases Home sale fraud by the seller is so common that we deal with it nearly every day. When I hold a consultation with a client, it’s often helpful to give examples of prior instances of fraud where a court held the seller liable. This gives us a […]
Continue ReadingMechanics Lien Basics for Contractors
Mechanics Lien are the easiest way for a contractor to collect from deadbeat customers. The legal process, however, is not easy. Below we’ll detail some of the requirements and give a practical overview of the process. Why a mechanic’s lien? A mechanics lien has the same effect as a mortgage on the property. If you […]
Continue ReadingQuiet Title Basics, or How to Remove a Mortgage Lien
We see it all the time — an investor bought a property that seemed like a sweet deal, but turned out to have a mortgage on it from a prior owner. No wonder it was so cheap! The investor calls me up and asks me what we can do about it. Let’s set aside the […]
Continue ReadingDue-on-Sale News: Fannie Mae allows transfers into LLCs
An enterprising investor on BiggerPockets discovered this useful nugget in the Fannie Mae Servicing Guide from 2017: Section D1-4.1, Information Relating to Transfers of Ownership Applicable to All Mortgage Loans D1-4.1-01, Determining Whether a Transfer of Ownership Is Permitted (11/12/2014) […] D1-4.1-02, Allowable Exemptions Due to the Type of Transfer Unless the previous borrower requests a release of […]
Continue ReadingDon’t Be Deceptive– Avoid Using These Scammy Mailers
Beware of Scammy Mailers Over the few years I’ve been active on the website BiggerPockets, I’ve seen a few commercial printers pushing their top-of-the-line products for direct mail — official-looking envelopes that look like they’re being sent from the government. It’s important to be wary of these scammy mailers and avoid falling for their deceptive tactics. […]
Continue ReadingQuitclaim Deed v. Warranty Deed – Neither is “quicker”!
I get it. Who the heck has ever used the word “quitclaim” in conversation? It’s an unfamiliar word. So it’s not surprising, then, that many people mishear the term and instead think that they’re hearing “quick claim.” There’s a pervasive notion in the world of real estate that using such a device will somehow be […]
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