Need Help on Long Distance Investment

7 Replies

Hi BP,

New investor here from SoCal. I currently am closing on an investment property (duplex) in the Midwest, Illinois and at the same time closing on a house hack property in NorCal. Does anyone have a real estate attorney that handles multi state properties? The lender we are using in the Midwest is asking we have an attorney witness closing but we have gone to multiple attorneys here in SoCal and have been turned away due to it not being in state. I’m a little confused on how the process works for investment properties in multiple states. If anyone can help or knows of an attorney that can help it would be very much appreciated.

Thank you

@Jeremy Fox

Some states use attorneys instead of escrow companies. You need to have closing attorney in the state where you buying the property to handle the closing. They will FedEx you the closing package and you can then sign it in front of a notary, you don't need an attorney here in CA. 

I can't speak for every situation in every state, but I've never needed an attorney to close on an out of state property. I simply provide a POA to my folks on the ground (usually my local PM).

Simple as pie and massively less expensive than paying for an attorney's time. Plus I've never seen (and may never see) any of those properties in person, and that covers many years now.

@Jeremy Fox Real estate closings are different in every state. Generally attorneys stick to one or two states. I'm in Chicago and do Illinois and some Wisconsin. I've been asked to do the occasional property in Indiana or Michigan but typically refer them to local counsel. Illinois has strict rules depending on where the property is located and it helps to have some familiar with those rules. 

@Jeremy Fox you have had some solid advice from @Bob Floss II . Find a local RE attorney for your deal here in Illinois. It should only cost you in the $600-700 range as a flat fee, and the attorneys handle everything. If someone is in a different state that is a title close state they may give you poor advice about skipping the attorney, but that is not how real estate is done here in Illinois. If you need a referral, just let us know which city the property is located in and the Illinois investors can help you find someone.