All Forum Posts by: Jerel Ehlert

All the lease option/executory contract issues only apply to consumer transactions (intended for personal use and enjoyment; that includes 1-4 residential units).  In the Commercial space, all parties are deemed sophisticated enough to look out after their own interests.  Game on!

Here, you will want to pay consideration for an option to purchase, and record the option in the real property records.

@Fred Krauss & @Mark Fries, nice try but no cigar.  Check your local statutes.  In TX (where the original question concerned) the Texas Real Estate Licensing Act (TRELA) defines what activities require licensing.  If you do these listed activities for another, you are acting as a broker.  It will not matter if you have a PoA and/or joint account (a bad idea btw - each signor is joint and severally responsible for all overdraw fees).

To answer the question re: brokers & agents.  Only brokers are licensed to do these acts.  Agents must work under the direction and supervision of a broker who holds the agent's license.  Agents cannot be licensed without a broker sponsorship.  The sponsoring broker is liable for the acts of their agents.  If an agent quits a broker, there are some other brokers who will "hold" the license and allow the agent to "park" it with their office until they find another broker they want to be the agent's sponsor.

Check out a map of where the major internet fiber cables run, and their decision will make much more sense: a norther route runs through NYC, a mid-route runs through VA, and a southern route runs through DFW (the other finalist).

Blah, blah, blah, economics, population, tax incentives...  Amazon is an INTERNET company 1st, last, and always.  If the internet backbone ran through Anchorage AK, that city would be on the finalist list.

If that were here in Texas, the package would look like this:

• Affidavit of non-homestead. This is used to take it out of a HELOC compliance condition. Owner actually must move out of property prior to signing anything.
• 2nd lien deed of trust. In the amount of the repairs and holding costs and disposition costs. Secures the REI's interest in the equity participation agreement.
• Equity participation agreement. Details the rights and responsibilities of each party.
• (optional/recommended) Promissory note.  In the amount of the costs above, structured as a line of credit.
• (optional/recommended) Statutory durable power of attorney.  Used to execute all agreements to sell the property, receive proceeds and disburse.

Owner maintains title to property, so reduced chance of fraud claims and great defense to same. REI secures their investment against the property. PoA gives control of the operation to REI, unless revoked by Owner. Equity participation gives REI or Owner rights to enforce under contract (suit or mediation), and should be clear to both.

Texas evictions are pretty straight forward.  You don't need to be an attorney to represent someone else in JP or appeal to County Court (as of Jan 1, 2018).  LL's rights will be according to the written lease, then by Tex Property Code.  Chpt 91 and Chpt 92. No, hiring a lawyer doesn't get you any special treatment by the court or clerks or law enforcement (and if it does, that's several violations of law). We may be more efficient because we know the law and able to argue your case more clearly. Those that do LL-T law as the bulk of their practice work on volume and those that do other areas (of RE law) will be more expensive.  I encourage clients to hire eviction services for routine cases and I take the more complex ones.

Point of order: If you go to the property geared up for war, that's your ***.  The DA will prosecute faster than a politician goes after campaign contributions.  If you suspect criminal activity, call the cops.  If you attempt to get Tenants fired from their jobs, you open yourself to civil suits.  If Ts trash your rental property by stripping copper or putting cement in the toilet, file a criminal complaint and file an insurance claim.  - These are your remedies.  Self-help will only get the LL in trouble.

I'm only licensed in Texas, and do not speak on any other state's laws.

https://www.trec.texas.gov/forms-and-contracts 

I don't know where in Texas you are closing this or the parties involved.  You can get the seller to address at their cost/expense or have the title company address.  You don't *have to* close on this property with this defect to title.  Entities must be registered with the SoS, and annual information filing should be easy enough to get for a buck.  Hve title send you a copy of the memorandum.  If the option expired, I wouldn't worry too much, but still get a release.  Everything is going to depend on the exact wording in the option and memo.

I live in Georgetown.  Some of my clients invest in notes across the country.  

Like others said, Scott Carson is local.  There's also Eddie Speed.  Check some of the other Austin RE groups and meetups.

It's a common mistake for people new to the topic, but you need to understand the meaning of words.

LLC, GP, LP, Corporations (for-profit or non-profit)...These are creatures of STATE law.

S-corp and C-corp....These are FEDERAL law tax designations.

An LLC can elect to be taxed as an S-corp, C-corp, Partnership, or disregarded entity for tax purposes.

@Seth Elliott: Spending the money in forming an LLC, then not using it. If you fail to make the required filings (typically, a "no taxes due" and information filing), the state will administratively close your entity.

@Cody L.: sure, if it is plain vanilla entity, by yourself, then you are using the default operating agreement in the Texas Business Organizations Code.  If you involve anyone other than a spouse, there are issues to consider.  Your advice is what we call "full employment" in the legal field, much like Legal Zoom, internet forms (cough-BP-cough), and stock agreements sold at big box office supply stores.