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 ReadingCLF Blog
The truth about land trusts in Ohio
In my real estate law practice, clients often ask about land trusts and how to use them in Ohio. The truth is that in my opinion these structures needlessly complicate an investor’s deal structure and don’t provide any benefits that aren’t already available with an Ohio LLC. They’re often pushed by ‘strategists’ who don’t have […]
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 ReadingDividing the Founders’ Pie: Startup Ownership
Fairness in Dividing the Founders: Understanding Startup Ownership One of the questions I wish clients would ask more is whether their division of ownership is a fair one. Most owners, in their fairness calculation, apply the following formula: 100% ÷ number of founders This advanced calculus may appear fair and equitable, but the reality is […]
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 ReadingSuing the seller for fraud
Every time there’s a torrential downpour, we can count on many new homebuyers calling us with stories of wet basements and leaky roofs. These problems can put a homeowner out thousands. It’s only fair that a seller who advertised the home as perfectly dry and habitable should be held to account for concealing a leaky […]
Continue ReadingBorrower-paid attorney fees in foreclosure? Unlawful
Many promissory notes and mortgages contain a provision awarding attorney’s fees for foreclosing on the borrower. This even includes Fannie Mae’s uniform mortgage for Ohio. Many lenders can and do successfully collect attorney’s fees on collection and foreclosure judgments. However, as we know elsewhere in real estate law, just because the contract says you can do […]
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 ReadingCARES Act Payroll Tax Credit: The less-talked-about relief for shuttered businesses
We’ve heard a lot of talk, speculation and venting about the two big programs in the CARES Act, the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”). We’ve written about those programs elsewhere. But there’s one big benefit hidden in here that only applies to businesses that have been closed by government […]
Continue ReadingPaycheck Protection Program Information
This is a living document that I will update from time to time as I receive more information from the government, lenders, and the experiences of borrowers. In a nutshell, here are the broad strokes of the program: Rates, Terms, Fees 0.5% for 2 years1 The SBA guarantee fee is waived.2 No collateral3 No personal […]
Continue Reading