All Forum Posts by: Jerel Ehlert

Hello.  BP doesn't allow self-promotion.

Title is conveyed by deed from you to the LLC. Verify with your HML before hand so as to not surprise them.

There is TAR, but it is restricted to Realtors and Attorneys.  It is a base that covers everything.  HOWEVER, out of the box, it can get landlords in trouble because it goes too far.  

Be careful about "air tight".  That leaves no room to breathe.  Statutes and leases are slanted heavily towards the LL, so when courts get involved, everything will be strictly interpreted against the LL.

Once more for the back row: So long as the T pays rent in full, reasonably on time, and doesn't tear up the property any more than normal wear and tear, don't stir the pot.

Texas property code is free to read online (Title 8, Chpts 91-93).  This section is pretty straight forward.  Verify when the clock starts.  Many times, T fails to give LL a forwarding address.

Sure.  Raw land is exempt because it cannot be used for a consumer purpose, but the minute the buyer moves a trailor or starts building a dwelling, it can BECOME a consumer loan and you have a non-compliance issue.  Your remedies are to foreclose for a performance default (instead of a payment default) or reformation.  Easier to just treat as a consumer loan from the start.

CFD and L/O are executory contracts, and the state compliance issues are nearly impossible to comply with in a consumer transactions.

Hi @Greg Perkins

The closing docs look different depending on weather there is an underlying loan or free-and-clear, but the process is basically the same.  Make sure the title company you use has done owner finance closings.  There are several around Houston.  Get a contract for the sale and open title.  Myself or other attorney can draft the docs.  Use an RMLO to take the app.  There are state and federal issues you should be aware of, so don't just let the title company order your closing docs.  That attorney will represent the title company, not you or the buyer.

Texas LO have been discussed in depth, ad nauseum.  Summary: as LL/Seller to consumer - that is a no-go.  Legal, but practically it is impossible to comply.  Do a wrap.  As T/Buyer, you are not a consumer - game on.

You need to see if the title company has worked with sheriff's deeds before.  You also need to show that this was not a homesteaded property.  The conservative point of view is that if the property could have been the tax payer's homestead, the underwriter will assume it was until proven otherwise.  If it was obviously not (vacant land, for example), the escrow agent may just be going off the policy they know and not understand the difference.  Your call was probably one of 20 files she/he delt with that day.

I started as a real estate investor in 2000, and only after the crash went to law school and became an attorney. That is relevant because while I could teach you real estate investing, I doubt anyone would want to pay my hourly for that. You have local clubs like the Alamo REIA and others to get the grit. Attorneys are useful when you have a transaction or matter to on which to work.

Do a deal.  Get a taste for the business.  Then come see us to form an entity.