First Sit-Down w/ Real Estate Lawyer

4 Replies

I'm taking slow baby steps into Real Estate.

I've finished reading:

The Real Book of Real Estate -Robert Kiyosaki (reading it again)

The Tax and Legal Playbook -Mark Kohler (actually about 80% done not completely)

Investing With Little or No Money Down - J. Scott / Brandon Turner (great information guys)

currently reading...

The Book on Estimating Rehab Costs (...) - J. Scott

What Every Investor Needs to Know About Cashflow - Frank Gallinelli



I've arranged a meeting with a Real Estate lawyer, Dana Kyle to discuss the local and state laws of wholesaling in New Mexico (currently stationed here) which is how I plan to get my foot in the door due to lack of funds. I've deduced that wholesalers generally have a bad name as far as providing actual "deals" due to not knowing their market and underestimating rehab costs which I'm going to work hard and make my strongpoint by studying J Scott's book and learning as I go. 

What are some of the questions you guys as experienced investors believe I should add to my list of "must asks". She charges about $280 an hour and I'm definitely planning on using one single hour very wisely so I'd definitely like to get the most bang for my buck. Yes I know, invest in yourself, but keep in mind this is the only lawyer I have contacted and I don't have too much extra cash laying around to "shop around" for hours on end nor to sit and have pointless conversation trying to come up with questions. Any help building a list of questions and I am forever grateful. Looking to add to whatever I come up with as well as any experienced input from here. Thanks ahead of time!

You may also want to read Dave Ramsey's Total Money Makeover and The Millionaire Next Door. 

It would have been very beneficial to list the questions you intend to ask of the attorney so the community could fill any holes, get me?

That said, your conversation should be geared towards two major topics:

CYA., aka "business entity" and deal structure procedure.

You mentioned you are "stationed" in New Mexico and reading beyond the text it appears you might actually call another state home. So you'll want to check with the attorney about the proper entity you will create to operate from and whether its a C Corp, S Corp an LLC, and in what state it should be formed. If cost is a factor, and based on your comments it appears that it may indeed be, you might elect to forgo creating a Corp or LLC and simply create and then operate using a trust which is pretty straight forward. Creating one shouldn't cost much if you shop around for its formation (you don't need to use her services, she's only providing you initial advise which you are paying her to do. You won't owe her anything beyond that initial advise unless you feel its warranted to continue to use her services).

The deal structure questions should be presented in the format: If (A) and (B) apply to a potential transaction and don't work out like originally planned, and I insert (C) or potentially (D) how does that impact the risks to me in the deal (from a legal perspective not necessarily an economic risk; you as an investor should know the economic risk). 

There are numerous other items you could discuss (at least I would) but since its unknown what you already intend to ask I'll leave you with the two "legal" questions mentioned.

Save your money on the attorney and get your first deal done. You've done some good research... the best way to get started and learn at an exponentially greater rate is to jump in with both feet. If you feel uncomfortable or nervous about it, everybody does at first, it means you're growing. Have fun!