Should I become a real estate investor?
Turn to your local cable channels and you will find lots of options to watch shows about remodeling homes or “flipping” homes for real estate investment. You can watch “Flip or Flop,” “Flipping 101,” “Property Brothers” and “Designed To Sell” just to name a few. When you watch these programs the writers, producers, and stars make buying a real estate property for investment purposes look easy. Do you know what the show does not show you? The one-hour show does not show you behind the scenes and all the work it takes to make purchasing a property for investment purposes a successful business venture.
Are you interested in becoming a real estate investor? Do you want to buy real estate for the purpose of “flipping it” or renting it? If you are interested in making your real estate investment a successful business venture, the first step is consulting a well-experienced real estate attorney. You will want to consult with a real estate attorney who is familiar with the local real estate market, the county regulations and knowledgeable about tax laws, and familiar with contractors in the area. An experienced real estate attorney will help guide you through the process of setting up a new business venture, acquiring the real estate, and selling or renting the property after you complete your renovations.
In order to flip or rent a property should I create my own company?
Often times when people are beginning their new business venture and acquiring real estate for investment purposes, people ask should I create my own company or do I need to incorporate? A well experience real estate attorney can and should be able to answer these questions for you. Your real estate attorney can advise you on whether you should create a limited liability company, a partnership or corporation for your real estate endeavor. With consultation, your real estate attorney will assemble information to determine your specific needs to determine what business entity is best for your real estate investment. After having an in-depth conversation about the type of business entity that is best for you and your real estate investment, your experienced real estate attorney will be able to create the business entity in accordance with state law. Once created, your real estate attorney will be able to assist you in securing necessary business licenses so that you can start purchasing real estate in the name of your new business entity.
How do I find real estate to buy for investment purposes?
After you have created your new business entity and secured financing you are ready to start shopping? When you are purchasing property for real estate investment you can acquire property through different means. A real estate investor can purchase property at the local tax auction, at foreclosure sale, for sale by owner, and through a licensed real estate agent. Acquiring property through a local tax auction often requires legal action after the sale to properly transfer ownership of the property to the new legal entity. A well experienced real estate attorney will be able to assist an investor with this process and ensure that the appropriate legal steps are taken to secure ownership. Buying property through tax auction or by foreclosure can also present unique problems. Sometimes, after a tax auction sale or foreclosure, the residents refuse to move out of the property. What does an investor do then? A well-experienced real estate attorney will be able to assist you with removing the squatters on your property by filing a lawsuit called an Unlawful Detainer.
A real estate attorney will be able to guide you through the process and with the assistance of the Court, the attorney will be able to remove all unauthorized people or squatters that remain on the property. When an investor secures real estate through a “for sale by owner” an investor may need assistance with a real estate contract, mandatory discourse, and setting up the closing. A well experienced real estate attorney will be able to assist the investor by preparing a contract for the purchase of the property and assist with the necessary transmittal of documents to the closing company to transfer ownership. In the event that the real estate investor is using a licensed real estate agent, there may be issues of a contract dispute, boundary disputes, creation of easements, or potential breach of contract. What is a real estate investor to do when these problems arise? A savvy real estate investor should contact a well-experienced real estate attorney when these problems arise. Your real estate attorney will be able to navigate these problems with you and help you reach solutions to maximize your real estate investment. No matter which method the real estate investor uses to acquire ownership of investment property, a well experienced real estate attorney on your team is invaluable!
Now that I have the investment property, what next?
After determining your budget and securing financing for your real estate investment property, what should a real estate investor look out for? Choosing the right contractors to complete your renovations and repairs will have a significant impact on the success of your project. A well experienced real estate attorney can help you vet out contractors and review proposals. When hiring contractors and repair people to do work on your property, an investor should be aware of the contracts that are signed and payment obligations. When hiring contractors or repair people, the investor should be aware of the implications of mechanics liens. A well experienced attorney will be able to help you to understand what a mechanics lien is and whether it can be attached to your investment property and under what circumstances mechanics liens would apply. A well experienced real estate attorney will be able to guide you through contract disputes with investors and help you through the bidding and payment process.
Now that the property is remodeled and renovated, what do I do next?
After the property is completely renovated and repaired what should a real estate investor do next? After ensuring that the property’s remodel is in compliance with local county codes and has all the appropriate permits the investor has to determine whether to sell the property or rent it. After careful consideration and discussion with a well experienced real estate attorney, the investor will be able to decide whether or not the property should be sold or rented. A well experienced real estate attorney should be able to guide the investor through the process of retaining a licensed real estate agent or putting the property for sale by the owner. Each option requires that contracts be prepared and/or reviewed by a well experienced real estate attorney. An attorney can review all of the contracts, supporting documents, and listings with the investor to help them make the right choice for the project. From the time of listing through the time of closing, a real estate attorney will provide invaluable support to the investor.
If the investor decides to rent the property, a well experienced real estate attorney will be able to guide the investor on how to rent the property. A well experienced real estate attorney will counsel the investor through the process of renting the home in a manner to ensure compliance with federal and state anti-discrimination laws. A well experienced real estate attorney will be able to provide lease agreements and supporting documents to properly protect the interests of the investor and the property. A well experienced real estate attorney will be able to provide support to the investor throughout the entirety of the tenancy. If there are questions regarding enforcement of the lease agreement, a well experienced real estate attorney will be able to help. In the unfortunate event that a tenant does not pay rent, a well experienced real estate attorney will be able to file the necessary legal documents to evict the tenant and gain possession of the property for the investor.
So, remember when you are watching “Flip or Flop,” “Flipping 101,” or “Property Brothers” investing in real estate is harder than it looks! However, a well experienced real estate attorney can help you through every step of the process. With solid legal advice and good planning, you will be able to maximize your return on investment and develop a long-lasting successful business venture
Hiring a Landlord-Tenant Lawyer
As a landlord you have invested a significant amount of time and money buying, renovating, and maintaining your investment property. Your rental property may secure your retirement, fund your child’s college tuition or it might be your major source of income. In either event, your rental property should be protected! You might not always realize it, but landlords should also put serious consideration and a substantial amount of energy into hiring a landlord-tenant attorney. An experienced landlord-tenant attorney familiar with landlord-tenant law in Missouri is an incredible asset for landlords. When you have questions about handling a legal situation an experienced and knowledgeable landlord-tenant attorney will have the answers you need. Landlords can end up in difficult situations because they do not fully understand the Missouri landlord-tenant law. The best way to avoid this from happening is to form a relationship with an experienced and knowledgeable landlord-tenant attorney who can help to guide you.
An experienced and knowledgeable landlord–tenant attorney can help you with the following legal matters including:
- Landlord-tenant disputes: rent, security deposits, tenant rights, etc.
- Eviction issues: eviction case assistance
- Unlawful Detainers and hold overs
- Lease agreements: writing, checking for loopholes, adding necessary addendums, ensuring Fair Housing Act and other ordinance compliance
- Abandonment of property
- Use of Illegal Drugs and/or illegal substances on rental premise
- Commercial real estate: leases, litigation, business disputes, etc.