real estate attorney or escrow company?

Question

Hello community,

I got my first sub 2 deal today which is crazy now i think back at how fast this all happened. FYI i just started investing this week. so my question now is do most of our community use a lawyer or escrow company and why? also I want to know about the fees associated with doing these transactions are they paid upfront or at closing? thanks

Darron Washington · Answer

Account Closed

this deal is goodyear,az iam located in phoenix. i used the agreements from our community here to get the property. I understand the risks in this part of the transaction as my end goal is to 1)reassign with a fee 2) lease option, 3) HML buy&hold (hope to not get here)

2/2 1400+ sq

arv: 205k+

comps:160-250k

no rehab

136k assignment w/ options.

thoughts? how would you approach this? any advice helpful as a newbie . thanks

Account Closed · Answer

Congrats.

Since you don't say where you are located it is a little hard to comment on local customs. Out West I use a lot of Escrow companies except in Texas I use attorneys. I try to find someone in the local area that the property is in. Particularly with Sub To, I'd have someone familiar with transactions in your state go over the Purchase & Sale Agreement and let them do all of the other paperwork.

Make sure you keep reserves in the bank to cover the mortgage and taxes because you have to pay those whether you have someone in the property making payments to you or not. If you don't make sure the mortgage payment is made, you could regret doing the transaction. Since I don't know your exit strategy or the numbers on the deal, I am left with saying "congratulations, I hope it works out for you".

real estate attorney or escrow company?

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