Real Estate Investor · Minneapolis, MN · Member since 2017 · 164 posts · 30 votes
Hey everyone!
I just contacted a Real Estate lawyer that was recommended to me, but her hourly rate was $250 (and no minimum). For now, I just need someone to look over our tenant documents and make sure they're all legal for Minnesota, but eventually I may need to call on them if I need to evict someone. $250 just seemed a little high for our requirements, so I was hoping to see what others are paying to see if that is the going rate or if I should be looking at other lawyers.
I appreciate your responses!
That's lower mid range, very normal. Most my attornies start at $350 on average, and go up to around $500 an hour, depending their experience and the topic. What I would lookout for is that they know real estate law and contract law, on the topic. The old catch 22 that gets me a lot, is that I hit up my main attorney and they drag in 2 other attornies for their expertise. I end up paying 3 attornies $350 per hour to do something for me. I've watched a contract get drafted, that I expected to pay a few thousand for, turn into 10k because of stuff like that. If it's a small firm you likely wont run into that, at $250 an hour I'm willing to bet the attorney is a one person show. If they are a real estate attorney, it does not mean they know landlord laws, etc.
That's lower mid range, very normal. Most my attornies start at $350 on average, and go up to around $500 an hour, depending their experience and the topic. What I would lookout for is that they know real estate law and contract law, on the topic. The old catch 22 that gets me a lot, is that I hit up my main attorney and they drag in 2 other attornies for their expertise. I end up paying 3 attornies $350 per hour to do something for me. I've watched a contract get drafted, that I expected to pay a few thousand for, turn into 10k because of stuff like that. If it's a small firm you likely wont run into that, at $250 an hour I'm willing to bet the attorney is a one person show. If they are a real estate attorney, it does not mean they know landlord laws, etc.
Kelly - That does seem a little high. Where you live probably has some influence on rates, but it also depends on who is doing the work within the firm, how reputable they are, etc. For example, the firm's managing partner might be $250/hr, but an associate equally capable of doing the work might be $125/hr. Different firms (attorneys) have different rates, so don't feel like you have only one option (unless you have already signed an engagement letter). You don't want to get a sub-par attorney either, so use your best judgement, find reviews, or ask other real estate investors in your area. Another idea is to negotiate a flat fee for the work. I'm located in Texas and currently purchasing a home. My attorney is reviewing all contracts, deed, title, and email communication to the broker/intermediary for $1,000 flat fee. I suspect he'll put in ~6-10 hrs, so that's $100 - $170/hr. He's pretty good and this cost seems reasonable. If he is super efficient, then he could complete all work in < 5 hrs -- in which case his rate seems closer to > $200/hr. A flat fee creates some alignment and should motivate the attorney to get the review done quickly and accurately. Ask how many hours your work is expected to take! Hope this helps. -Mike
Kelly Conrad Never look for the lowest rate with a CPA, lawyer, or cosmetic surgeon. Water finds its level. So do fee structures. Your questions are basic now but may not be basic in the future. You don't want to re-shop lawyers each time you have a question. Look for someone in your local market to refer you to their real estate attorney. If they cost $150/hour that's great, if they cost $250/hour that's equally great. My two cents...
This is also speaking from the perspective who had a wife lawyer shop for the cheapest person to do a living trust. Don't get me wrong, they did the work but our financial advisor asked a few "what if" questions off of the top of his head that were (not crazy) scenarios that the trust didn't cover. "Doing the work" shouldn't be conflated with "Doing high quality work". Okay, I'm up to four cents...
Absolutely! Cheap isn't always the best route, it was more of a way to gauge on what is typical for this type of lawyer so I'm sure that while she was highly recommended, that I'm not getting taken to the cleaners. Thanks for posting!
Lawyers are all driven by local markets, you can always shop around because one quote should never be the only quote. FWIW, I'm a one man (lawyer) shop and charge $300/hour with many flat fee packages because I'm very familiar with the scope of work...