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I negotiate contracts for a living, if we are doing something "different', I write a contract and send it to attorney for review,,we work together to get something that accomplishes what I want, and still is legal and offers the protection he wants.

Indiana Bar No 2095 49Agree on professional closings, however this is not going to preclude an equity skimming incident. Subject too transactions in the hands of those with less than better intentions and or lack capital and High Heels Womens

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I use a different contract for buying as opposed to selling for example. I regularly make changes to my contracts, as I feel very comfortable with contract law.

Frankly in other states, such Black Pumps With Bow as Florida,when you don't pay the underlying mortgage its called "Equity Skimming" and you can be charged with a felony. Most states don't have this "equity skimming" law so they seek other means to go after a "wayward" investors who don't pay underlying mortgages, such as in the Ohio case.

I suggest every one in this business learn some of the basics of contract law. Even if every contract you ever use is created by an attorney you should learn what some of the terminology means. It amazes me how often people sign agreements that the do not understand.

experience and are following some guru techniques is a really dangerous transaction all the way around but especially for the seller as you note. The poor sellers in these transactions lose control of their properties and end up in all sorts of financial turmoil. Good for OHIO and Great for FLA making it a Felony. If the US just followed Floridas lead that would put an end to newbie wannabees and out right crooks partaking in this activity.

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you didn't go to law school, don't play lawyerI did read through it quickly. It seemed to me he was creating docs not as a principal but as an unlicensed third party betweenthe homeowner and Diversified Inc. Why his being an officer of Diversified wouldn't qualify him as a principal is a mystery to me.

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If we were to take that case at face value it would seem in Ohio anytime two principals entered into a contract without a lawyer's involvement and that contract went wrong in any way the party that brought the templates to the partycould be convicted of practicing law without a license. I guess this case pretty much precludes two parties contracting withoutlawyer involvement.

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I have read and reviewed thousands of contracts in my life, and I very rarely miss anything, but I am not an attorney, and am constantly surprised by some small change an attorney will make that gives us better protection.

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myself makes it hard to accept this. That being said this particular guy sounds a little slippery.

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Seems the bottom line here is that courts decide who should win then find evidence to support that conclusion, as has been said by attorneys here and elsewhere many times. Not being an attorney High Heels Red Bottom

Real Estate Investing legalities

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Due to homeowner losses in credit standing and bankruptcy, these homeowners complained and the Ohio Bar saw that because he prepared the documents for signature by the homeowners, the OhioBar could findhe was practicing law without a license because he had prepared the documents for the homeowner's signature. The Ohio Bar likely INFERREDthat he gave advice, even though he could have easily have said, "here are documents, please sign them." which of course is no legaladvice. (I speak from my own difficultexperience here.) And in addition, ALWAYS GET A SIGNEDSTATEMENT AT CLOSINGTHAT THE HOMEOWNER WAS ADVISED TO SEEK LEGAL ADVICE AND EITHER DID GET SUCH ADVICE OR WAIVED GETTING SUCH LEGAL ADVICE AND THAT THE INVESTOR PROVIDE NO LEGAL ADVICE OR LEGALASSISTANCE TO THE HOMEOWNER.

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As an attorney,I don't agree with the decision, but you must know there are always eyes watching, and from what I've heard about California, its even moreonerous. So while I believe in freedom of contract and having the freedom to do it yourself whether good or bad the State may see it from another viewpoint.

I am not sure that case is on point. The issue wasn't the investor simply creating contracts for his company, he was creating lots of different legal documents that obviously need to be created by an attorney including court filings. Perhaps this is relatively new in OH (I doubt it) but in MD it is clear an attorney needs to represent an entity in court.

If I am making very minor changes to that agreement I go ahead and make them (minor terms etc), but if any change is very complex, I run it back by the attorney.

This is a good argument for ALWAYSusing a title companies to close ALL your deals; title companies are usually ran by a localattorney. In other words, NEVER CLOSE AT THE KITCHEN TABLE!!! Spend the extra to close with a title company. And while you, as the investor, could prepare sample documents for the title company, which could then be reviewed by the title company'sstaff attorney to review and use as their own, at least this puts the investor at arms length (at least as best possible) from the homeowner. And don't forget that legal waiver. Know this. Plan for this. Always do business with this mind. Protect yourself.

Be careful! Even a skilled real estate investor can get themselves in trouble, and sometimes solely because they prepared their own documents. Here is a link to an Ohio case where a real estate investor was found to have practice law without a license when he prepared documents used in his OWN transactions.

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