From listening to a number of BP podcasts, it is obvious that smart legal representation is a must. When starting out, what would you say are the essentials needed for legal advice? Real estate attorney, tax/estate planning attorney are the ones that immediately come to mind, but are there any others worth looking into and why?
John and Douglas are great attorneys.
I "vet" attorneys for my coaching clients.
I ask questions like:
Are you familiar with the following:
-Real estate brokerage laws
-Rehab contractor agreements (scope of work)
-Sub2 and land trusts
-wrap around mortgages
-what the Attorney Generals Office does not care for (eg foreclosure rescue programs)
-joint venture agreements
-Reg D Securities
-private lender issues
Not 1 attorney can handle all of these, and it is my 30 year opinion that most re attorneys can only do traditional cash sales.
Thank you for the mention @Brian Gibbons . I agree with the sentiment that you need several attorneys at a certain point in your career.
I agree with Brian that no one attorney can handle all of the above.
I think the first team member should be a CPA. In my mind CPA's are great for tax efficiency planning. Tax/Estate lawyers are really a different in that they are best used in dispute resolution not really for the average investor imho.
The VAST majority of attorneys even with white glove firms are NOT going to like creative finance. Why? Malpractice issues. Therefore, I would ask around the local REIA who the investor/attorneys are or at least the ones who are active in the REI will be much more familiar. You might be told "that's not legal" by attorney who is just being overly cautious with their own ticket. Therefore, ask around.
Once you wonder off into the commercial real estate realm is where you are likely going to want counsel for lease issues in addition to the CPA for due diligence/tax efficiency planning. For sure if you are doing development work
Finally, if you are going to raise outside capital a securities attorney who specializes is MUST.
you are correct as always, not one RE attorney can handle all of those situations. At least not one that I have ever met. The last count I had was that I use a total of 11 local RE lawyers.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing