All Forum Posts by: Jerel Ehlert

There's debt and there's equity.  Loan docs are usually a deed, promissory note, deed of trust, lender's instructions to the title company, and attorney letter of non-representation.  If you ask the title company to draw docs, the attorney doesn't work for you (borrower) or lender, but the title company.  When I draft docs, it is always for the lender unless specifically asked otherwise.  Costs vary, but $500-800, depending on location and volume.

Equity is a whole other beast. Capital partner is on the hook for anything that happens on the jobsite. Someone gets hurt, they are named in the suit. Besides that, now you have to figure out how to structure. JV, LLC, etc. See an attorney.

Texas has no laws prohibiting people from contacting owners in foreclosure.

Having worked the pre-forclosure list, a curious phenomenon appeared: Most sellers didn't contact me until ~10 a.m. the Thursday before foreclosure Tuesday.  I guess that's when it finally hits home (pun intended).

If all you do is spend $300 with the SoS and get a certificate of formation, you are using the default company agreement in the Tx Business Organization's Code.  For a solo or married couple, that might work.  Even if you use a cheapo website to get your company agreement.  

If you have anyone else but a spouse in your company, I call that job security.  Good luck.

While TX statutes say a foreclosure can take place in as little as 41 days if timed correctly, if the borrower is a consumer you will likely violate CFPB regulations.  Figure 6 to 9 months for consumer foreclosures.

I draft docs, and Patton is good for most, but had issues involving a buying or selling trusts. Some Capital Title offices can, but recently heard they won't close sub-2 when there's an underlying VA or FHA loan. Try also, Patriot Title or Momentum Title.

Keep in mind that if you ask the title company to hire the attorney to draft docs, that attorney does not represent you because you are not the client.  The title company is their client.

@Greg H. understood, just didn't want to leave it out there like that.

@Account Closed Fascinating.  In TX, it is merely a Release of Lien by the lender.  Foreclosure can be pretty simple, BUT can get complex fast.

 Highly recommend that the trustee and beneficiary NOT be the same person.  Unless you are supremely confident in understanding the requirements of the foreclosure process, hire a lawyer.

For general information about some of the legal aspects of real estate investing, you probably want to use clubs and groups.  For advice on specific sets of facts, seek attorney consultation.  Don't go to a lawyer for training on real estate.  If you have a strong base, you will understand the answers better.

There's a couple of routes, but make sure you really are dealing with the "heir".  

- Seller can file adverse possession suit, get title, sale the property, and keep all of it.  

- Seller can file a partition and sale suit, and keep part.

- Seller can sale the property, keep his/her portion, and put the rest in the registry of the court.  Let the missing heirs collect at their leisure. 

You can buy an option to purchase the property at today's price.  Option fee goes to attorney's fees.  Figure a retainer in the $3K-5K range.

I offer a subscription service. Be happy to discuss.