Prepaid Legal For Real Estate Investors

12 Replies

Hello and good day.

Does anyone know why Prepaid legal is not a good option for Real Estate Investors who are Wholesaling/Assigning Contracts in California?

I have been on the phone with 2 of their Real Estate Attorneys and both are telling me that I have to have a license (which I know I don't) in order to do Investing in California.

Why do they not understand this practice?

Or are they partially right and that if someone attempts to sue me, the DA will ask if I have a license and pursue legal actions if I don't?

I simply wanted them to review some contracts for use in the state of california but I cant trust their ability to do the right job if they don't believe in what I am doing is legal.

The only reason I have called them twice is because I have service with them and want my Real Estate documents reviewed.

Why are they so difficult? :(

Call more legal advisors. You've talked to two of the many in california. Keep it going with more lawyers. I'm in a market unfamiliar with wholesaling and anything without a Realtor. I was asked if it was illegal to not have a Realtor at one point!.

You'll fine those who are familiar with some of what you're doing and if you play your cards right you can find those who you can train in exactly what you do and how you do it.

Originally posted by @Steven Johnson:

Call more legal advisors. You've talked to two of the many in california. Keep it going with more lawyers. I'm in a market unfamiliar with wholesaling and anything without a Realtor. I was asked if it was illegal to not have a Realtor at one point!.

You'll fine those who are familiar with some of what you're doing and if you play your cards right you can find those who you can train in exactly what you do and how you do it.

 @Steven Johnson

I've talked to a few more than the PPL guys. I just figured I could get them to review my docs under my current service with them. I've actually made contact with a RE Attorney who was referred to me through another investor.

I just find it odd that these guys at PPL feel and think this way. I mean, are they partially right? Granted, I know lots of people are doing Wholesaling and are successful and doubt they would be doing it if there were the slightest chance of being help liable legally.

Ray,

Just like Steven suggested speak with other Real Estate Attorney's. I'm familiar with Prepaid Legal Lawyers and there lawyers but what type is the question. Are they good or average. 

Now when your dealing in the world of Real Estate each state has laws and when I say laws it's a lot. To get a real estate license you have to know the laws. My law book for my real estate license was 150 pages. To pass the exam, it was 100 questions regarding the laws of the country and state. 

And these laws change every year. Now I do not know the laws in California and I'm not a lawyer but you want to make sure what your doing and how you're conducting business is within the law.

Get all contracts from a lawyer. It sounds like you have some contracts from somewhere that you want an attorney to review. 

All contracts that we use are drawn up from a lawyer and when the law changes, those contracts are changed to reflect the updates. 

Good luck and much success. 

I have some close friends that I respect tremendously that use pre-paid legal for real estate and rave over it. 

However I do not want a generic attorney doing my work.  I want someone who is top notch and specializes in what I need to have done. I work with perhaps 5 different real estate attorneys, depending specifically what I an doing. I don't use my foreclosure guy when I have a landlord tenant issue, or need a bulldog litigator. 

Originally posted by @Sean Brooks:

Ray,

Just like Steven suggested speak with other Real Estate Attorney's. I'm familiar with Prepaid Legal Lawyers and there lawyers but what type is the question. Are they good or average. 

Now when your dealing in the world of Real Estate each state has laws and when I say laws it's a lot. To get a real estate license you have to know the laws. My law book for my real estate license was 150 pages. To pass the exam, it was 100 questions regarding the laws of the country and state. 

And these laws change every year. Now I do not know the laws in California and I'm not a lawyer but you want to make sure what your doing and how you're conducting business is within the law.

Get all contracts from a lawyer. It sounds like you have some contracts from somewhere that you want an attorney to review. 

All contracts that we use are drawn up from a lawyer and when the law changes, those contracts are changed to reflect the updates. 

Good luck and much success. 

 @Sean Brooks

Well for the most part, their lawyers have been fine for other matters.

It's been the RE Investing they are not working with me on. And they want to get crappy about it. One guy told me, "I'm not going to argue with you...".

I thought "I'd hope not, I'm the customer!"

And yes, I have some contracts and forms that I have and wanted them to review but I guess it's safer to go somewhere else (someone that actually believes and understands what I am doing and want to do).

I'm not against getting my license but right now, I just want to assign some contracts and wholesale/quickturn some properties.

Thanks for the feedback.

Originally posted by @Ned Carey:

I have some close friends that I respect tremendously that use pre-paid legal for real estate and rave over it. 

However I do not want a generic attorney doing my work.  I want someone who is top notch and specializes in what I need to have done. I work with perhaps 5 different real estate attorneys, depending specifically what I an doing. I don't use my foreclosure guy when I have a landlord tenant issue, or need a bulldog litigator. 

 @Ned Carey

Ned, makes alot of sense. Thanks for the feedback.

I'm learning really fast in this business. So far, I love it. Even though some of these guys get me hot under the collar.

Originally posted by @Ray Eason:

I'm learning really fast in this business. So far, I love it. Even though some of these guys get me hot under the collar.

I find it very frustrating when I am working with a professional like a title company and I know how to do their job better than they do. 

Originally posted by @Ned Carey:
Originally posted by @Ray Eason:

I'm learning really fast in this business. So far, I love it. Even though some of these guys get me hot under the collar.

I find it very frustrating when I am working with a professional like a title company and I know how to do their job better than they do. 

 @Ned Carey

Maybe it's part of OUR learning process.

Reaffirming, to us, that we know what we are doing. While making us that more passionate about our personal and financial choices.

Or maybe they are just workers, realizing they are working for the rich and, subconsciously, don't like it. :)

Thanks for the feedback Ned.

Depending on where you live you just may have a tough time finding the pros who understand your strategies and you'll have to do some of the teaching. That's my case here in Fargo. Its a more conservative area with people who do things by the book where new = dangerous scam. 

Be patient finding those people and discuss with them exactly what it is you're doing. If you're persistent enough you'll find the right people.

I'm also finding its a great way for me to practice how I'm explaining things. I chatted with a title company the other day about a simultaneous/double close and they didn't know what it was. Once I explained it they confirmed that they can do it and that I don't have to bring money, in the form of transactional funding, to the table for such a deal.

Originally posted by @Steven Johnson:

Depending on where you live you just may have a tough time finding the pros who understand your strategies and you'll have to do some of the teaching. That's my case here in Fargo. Its a more conservative area with people who do things by the book where new = dangerous scam. 

Be patient finding those people and discuss with them exactly what it is you're doing. If you're persistent enough you'll find the right people.

I'm also finding its a great way for me to practice how I'm explaining things. I chatted with a title company the other day about a simultaneous/double close and they didn't know what it was. Once I explained it they confirmed that they can do it and that I don't have to bring money, in the form of transactional funding, to the table for such a deal.

 @Steven Johnson

That's good to  hear and refreshing as well.

It's hard to think a person starting out would be educating so called "Pro's" about doing their jobs and business. But I completely understand.

What do you mean buy not bringing money to the table for transactional funding?

I have not closed on my first deal yet, but was thinking for starters, I would do a simple wholesale deal, get learned and then do a double close after.

But if doing a double is just as simple... What's your process for double closings?

@Ray Eason  

  The reason you getting these responses is you may need a licnese to do business the way you are doing it.. and the attorney is CYA...

this is a on going debate about non license folks flipping houses without owning them

some states have gotten aggressive  OHIO I think is one.. It just takes someone filing a complaint with the DRE  and then you will see if its required or not 

Originally posted by @Jay Hinrichs:

@Ray Eason 

  The reason you getting these responses is you may need a licnese to do business the way you are doing it.. and the attorney is CYA...

this is a on going debate about non license folks flipping houses without owning them

some states have gotten aggressive  OHIO I think is one.. It just takes someone filing a complaint with the DRE  and then you will see if its required or not 

 @Jay Hinrichs

From what I understand, selling the property you do not own is illegal without a license (aka bring a broker).

However, having equitable interest in property via a contract and selling that contact (to your cash buyers list) is a different story.

And from what I understand, that's why you need the Cash Buyers List to sell your equitable interest and contracts through. Selling it on the open market leaves room for an angry realtor to pursue you with.

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