Where to get a lawyer?

Question

I am working on my first RE transaction. I met with my CPA the other day. I was hoping he could recommend a lawyer but his just moved to Florida. I need a lawyer to set up C Corp/LLC (and give advice of which one is better), plus to serve as a lawyer on deals.

I was thinking

1)yellow pages - easy, but risky

2)ask future real estate agent for one

3)ask bank for recommendation?

I was thinking

1)yellow pages - easy, but risky

2)ask future real estate agent for one

3)ask bank for recommendation?

Bill Gulley · Answer

@Alex Silang

I suggest you call the local board of Realtors, they have an attorney and who ever they have or have had in the past will likely be one of if not the best in that area. That said, the current attorney may not take on RE clients as there could be a conflict of interest, so ask who the others have been. They often pass the business around as office politics, but they will always be seen as good RE attorneys.

Next, call title companies, the title insurance may be an attorney, if not, they have one and he or she won't be right out of law school.

Ask Real Estate Brokers or Broker Managers, ask for three names, they may not want to disclose who they use or give references or endorsements (actually, that goes for everyone you ask).

Need a bulldog? Look to court records in related  RE suits, foreclosures, liability/landlords, see who represents developers and builders. These guys show up in court as needed, they are litigators or defense types, black belts in court-can-do.

You also have different matters to consider. A really good corporate attorney may not be a RE specialist.  You can often find all of these specialists in larger firms. You can't really expect one attorney to do anything that pops up. My experience with attorneys is that don't venture into unfamiliar waters usually, if something feels like it's beyond their scope of expertise they will make a referral or point you in the right direction.

I suggest you stay away from those that advertise on TV, really good attorneys don't need to advertise. :)

Rick H. · Answer

Alex - you may not need an attorney, or at least not just yet.

I would think a CPA would be able to advise you on the pros and cons of one entity versus another, so I'm surprised your current adviser was unable to provide this information.

Currently, my team includes a bookkeeper, who works for me one day a week, two CPA's, six (6) attorneys who do everything from basic filings to litigation, as well as a pension advisor group.

Attorneys, like plumbers, can get expensive very quickly. Before making any decision to form any entities, I recommend that you get an overview of the types of entities and where and when they fit your needs.  You'll be better prepared for asking questions of the professionals when their meter is running and can ask better questions, too. Questions like: 'Why do I need a corporation and an attorney when I only have one property?'

Bill Gulley · Answer

LOL, I strongly disagree agree with @Ann Bellamy 's take on this.

In every state title companies require an attorney to be "connected" to them, many are owned (the agency is owned) by an attorney or they have one on retainer or contract. I mentioned that.

Secondly, there are many investors who are members of the board, I was investing and a member. Realtors shy away from crazy stuff that they don't get paid for or that could harm their client, they are not all adverse to investors, most make tons with investors! The past attorney here who had represented the board before I came along and used him as my attorney, to say they are all  locked into tunnel vision is uniformed, we did some very creative transactions, however, giving credit to Ann, if you're some guru following, whiz bang, wheeler dealer that is void of RE knowledge and unaware as to local practice, you might want an attorney out of law school. ;)

Now I see the motivation of "defending" your suggested attorney.

Just saying Ann, your response could have been phrased a little differently to say what you thought without it making it sound I was full of it. What I gave was rock solid advice in locating a good attorney. I never said title companies were not connected with an attorney. I don't have a pet attorney to steer anyone to.,

I don't assume all investors are wild monkeys doing crazy stuff that just want a yes man type to allow a client to get in trouble so they can bill them again to get them out of trouble. Yes, there are ambulance chasers out there, even gurus with a law license. I just assumed the OP wanted a good attorney. The good ones will have the greatest experience, can't get much more than working for a BOR full time or a title company constantly reviewing deals. I mean, those usually don't do divorces or Wills or DWIs like others might do.

Now, since Ann appears to be in your neighborhood, check out her suggestion, but follow the other suggestions as well, see who you can work with best.  :)

Ann Bellamy · Answer

Alex, I strongly disagree with @Bill Gulley 's take on this.  In MA, there are no "title companies" that don't have attorneys connected to them, because in MA, closings require an attorney.

Second, the attorney recommended by the Board of Realtors is not likely to have much to do with investors.  There are many real estate agents and brokers who "get" real estate investing, but calling the Board is likely to bring you to someone firmly entrenched in the "you can't do that" mentality.

Interview multiple attorneys and decide who best fits your needs.  If you call the attorney I suggested, although I don't know your circumstances, she is likely to talk you out of a corp and into an LLC.  Just my take, this is not legal advice.

Andy Collins · Answer

Whatever you do, don't walk in the attorney's office and ask "what is best, an LLC OR C Corp...say here is my situation, lay everything out for him and ask what do I need to do to protect myself....don't assume you know what will be the best way to proceed.

If you ask which is better, "a' or "b",,he will answer that, but maybe you really need "d"

Ann Bellamy · Answer

Alex, on the Black Diamond website (see my signature below) on the resources page is the attorney many of us (not all) work with.  They are very knowledgeable on the type of transactions that investors consider routine but that many attorneys don't work with.

Kevin Perk · Answer

Alex,

Try a local reia club.  Ask for references from other investors there.

Kevin

Raymond B. · Answer

@Alex Silang,

When you make a post you should use "key words."

One of my "key words" is Florida. That brought me to this post.

Example: I'm looking for a Lawyer in the Boston,  Massachusetts area.

Raymond

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