How to Do Deals in Texas

Audio-Video-PDF Books and Mentoring with Claude for one Month.

 

OK Claude, but what about Texas ?What about it ?Can I do a Creative real estate there anymore ?That depends on how you define creative real estate and what your goals are.Why did they change everything around ?Good question, what did your representative say when you asked ?I didn’t ask.Claude, I don’t understand the new laws about real estate in Texas.Thats OK neither do the people who wrote it (oh no an opinion and judgement).Questions, many questions and they seem to arrive on a regular basis about the new law initiated in Texas entitled HB 1823. Max use to always say “that when one door closes a bunch of windows open”Texas is a great state with unlimited opportunities in creative real estate . Real estate will always be a commodity, a necessity of life just like food -water and air . Real estate is shelter. In todays economy where money is tight, credit is questionable and conventional methods of purchase there are solutions. Solutions for housing, investment and profitability are always available , even in The great state of Texas.CREATIVE REAL ESTATE FOR THE GREAT STATE OF TEXAS3

 

The Texas Mentoring SessionClaude: Good morning, Bill. With your permission, I would like to tape record this conversation. Is that alright with you, Bill?Bill: Great - that would be fine with me.Claude: I am going to use this for commercial usage and other things too. Anyway, tell me what you are up to, what you been doing?Bill: Okay. Well, I have made a few calls. The calls I have made are mainly off abandoned signs that I have been putting out. I have gotten a few leads off of those. I have gotten my merchant’s account. I told you that I had that and have not used it for a couple of years. I have not used it at all. But I have it set up so I can use my merchant account if necessary.Claude: Okay, I think I know the topic of our conversation - you are in Texas.Bill: Correct.Claude: You have been asking me a lot of questions about the 2005 House Bill 1823. I have been doing a lot of research and stuff on that. God bless law school.Bill: That’s my biggest dilemma from this whole deal here, learning how to do the right contracts in Texas, it seems like.Claude: Well yeah - you want to comply the law. You don’t want to circumvent or violate or break the law. I have done a lot of reading. In my opinion, it is not a well written law. It goes on and on and on. It is not very succinct. It leaves a lot of things not defined and open. It is not a well-written law, so there is so much confusion, and here we are four CREATIVE REAL ESTATE FOR THE GREAT STATE OF TEXAS4

 

years later and people still don’t understand this law. I’m not taking to task the man who you were doing business with there in Texas, but I think from some of the things you said in your emails, I’m a little concerned - he’s telling you basically, what did he say you can do in Texas with options and lease purchasing? You could do subject tos and things like that if I recall, right?.Bill: Right. Well, as I told you, his main focus is subject to, and 99 percent of his deals are subject to. He took a class on lease purchasing also, and what he says is you can buy the property on a lease purchase without any limitations as long as you are not the tenant and, you know, I am not the one that is going to live in the place.Claude: Yeah, I saw that. I did not see anything like that. That is why I asked for the citation. I don’t see any exclusions at to whether you live in the property or not live in the property. Did you see my e-mail?Bill: I don’t know how he gets that. But, when I did ask him about that yesterday, he said that is/was in the very first paragraph of the law. So his understanding was that his understanding was based on the first paragraph.Claude: Well, I don’t see that the law is not based on occupancy. The law is very strongly worded on what they call executory contracts. Is he an attorney?Bill: He is not an attorney, no.Claude: Okay, we need to go back to basics and dissect this Texas Law House Bill 1823. Whether you live in the property or do not live in the property really does not matter here.Bill: Okay.CREATIVE REAL ESTATE FOR THE GREAT STATE OF TEXAS5

 

Claude: It really does not have anything to do with it. The way you can understand these laws is to go back. I am going to give you a little lecture here, I hope you do not mind.Bill: Sure, okay.Claude: I have done a lot of home work and reading on it. The basis of the law was that a lot of people are doing what are called executory contracts. What they are trying to do is stop people who are being abused. Minorities, economically depressed people, maybe intellectually challenged people. People who were buying properties creatively from investors or from owners who did not have clear title on the property. What happened is, a lot of people bought properties paid on them for five, 10 or maybe 20 years. They then tried to make an insurance claim on a property that they thought they owned, and found the title was not in their name. So they never really bought the property and never really owned it. The law involved executory contracts -which involves any non-traditional contract which could be a contract for deed, a land sale contract, a rent to own agreement - they said if you are going to do anything creative, you can do these lease purchases and these others. But, you have to transfer title to this person. If you understand that, you understand the law. Did you read the analysis I sent you? It was done well by a law firm here.Bill: Yes.Claude: I am going to read you one quotation. “Contract for deed or rent to own arrangements or home buying methods that leave the buyer vulnerable to abuse.” Okay? The government wanted to prevent this abuse. I’ll read further. “Since the buyer does not hold the title, the buyer cannot freely refinance or borrow on the value of the house.” This leaves this particular class of homeowners without options. They can’t use their equity. They can’t refinance. These contracts for deed type situations were hurting people so much that Texas law had to do a reform stating that any time a contract for deed was done, or an executory contract, that the title had to transfer also. The only way you can do that is if you own CREATIVE REAL ESTATE FOR THE GREAT STATE OF TEXAS6

 

the property free and clear, or if you have a private lender. Like, I lent you money to buy a house and you went to me and said, Claude I want to sell it to Joe and Mary and I say, okay - you can transfer the loan I have to them and put the title in their name.Bill: Okay.Claude: That way you can do it legally. Now, you use a term I believe you called it subject to?Bill: Correct.Claude: Subject to means a lot of different things legally. What do you and this fellow mean by subject to agreements?Bill: What we mean by subject to agreements is that we take title of the property.Claude: How do you take title? Give me a scenario. If the person owns the home and it has a mortgage on it. Most homes have a mortgage on it, right?Bill: That is correct. The mortgage remains in their name. We have the title but the mortgage remains in their name until our tenant buyer pays it off or cashes out then the mortgage is paid off.Claude: How do you transfer the title without paying off the original primary mortgage that is in the owners’ name?Bill: Well, we just change over everything with the bank, whoever the lender is.Claude: Okay, I am going to slow you down a little. So, if I have a loan with Chase Manhattan for $100,000 and you come to me as an investor and you say you want to take my existing property subject to my existing mortgage.CREATIVE REAL ESTATE FOR THE GREAT STATE OF TEXAS7

 

Bill: Yes, I will take it subject to your existing $100,000 mortgage. I will make the payments, sign it...Claude: I understand that. Normally, when people do a subject to, they don’t record anything - and they can’t change the title, because the bank that lent me the money wants me to be responsible for the payments and they want the title in my name, because I am therefore liable for that mortgage and that payment.Bill: I know what you are getting at. Here is what they do - they put it into a trust.Claude: Okay, okay. Finally, bingo, hit the bulls-eye. They put it in a trust.Bill: It is not clear...Claude: Illegal, illegal, beep beep. Illegal. You can put it into a trust, but – let me put it this way. You can put it into a trust, but the title it still...How are you changing the title? The title cannot be changed.Bill: Yeah, well, but what the trust will say when the title is changed - let’s say it is on Maple street. The title will say...Claude: Well, how are you changing the title? I understand trusts and all that, but how are you changing the title? The title has been held by the mortgagor.Bill: Yeah, yeah.Claude: Chase Manhattan has the $100,000 mortgage and they are holding the mortgage, or they have a bank that is facilitating the collection and theyare holding the title. Excuse me.Bill: Let me see if I can find that title while we are talking.CREATIVE REAL ESTATE FOR THE GREAT STATE OF TEXAS8

 

Claude: Are they just creating a new title, or - how are they changing the title legally if Chase Manhattan is holding it as security for their $100,000?Bill: Right, here is the warranty deed for this property.Claude: That is a warranty deed. That is another piece of paper. But, we are talking about title now.Bill: Yeah, I am trying to find the title to the property we did. That would explain it a little more clearly.Claude: I am very concerned about doing business this way. I am very concerned. I think it is a violation. The title is not being changed. The bank is not giving you the title and changing it in escrow or an attorneys’ office.Bill: No, basically those mortgage payments are continuing to be made.Claude: I understand all of that. I do not want to get off of this title issue. I want to beat this to death. Nobody is changing the title from the original owner who had the loan with Chase Manhattan for $100,000. Mr. Seller we will call him. The title is in the name of Mr. Seller. You guys are not able to change that title.Bill: As far as the bank is concerned, the bank thinks that the original owner still owns the property.Claude: Okay, say that one more time. Real loud for the recording.Bill: As far as the bank is concerned, they do not know the owner has changed.Claude: That is called fraud. You cannot do that. You are just creating another title or contract for deed or other paperwork. You are putting it CREATIVE REAL ESTATE FOR THE GREAT STATE OF TEXAS9

 

in a trust and not notifying the bank of this. You are selling this to the other person subject to telling them you have changed the title, and it’s in a trust, and the owner agreed to all this. But, the bank does not know about it.Bill: Right.Claude: That is fraud.Bill: Okay.Claude: Sorry. To me, I do not want to do anything illegal. That smells to me like fraud. Because if it is not fraud, why don’t you go to the bank and say, Mr. Bank, we just want to change the title and we want to put it into a trust. We are going to do another contract for deed or warranty deed and we want you to change the title even though the original person is responsible for the mortgage. You are not doing that, are you?Bill: No, no that is not happening.Claude: Why not? Because you know that the bank will not agree to it and they can accelerate the loan and call it on the due on sale clause.Bill: The bank could do that. But, the reality is that it hardly ever will happen because..Claude: If they receive payments on time. But, here is the problem: We are talking the difference between civil and criminal now. I do not have a problem with subject to. Subject to is a contract between the investor/buyer and the seller. It basically means we are going to buy the property subject to the existing mortgage staying in place for maybe three, five or 10 years with a balloon - or forever - and we will continue to make the payments even though the mortgage is in your name. So, first of all, you need to find the world’s most desperate or stupidest owner who is willing to sell their house and give the ownership to someone else but still have the liability of the mortgage in their name.CREATIVE REAL ESTATE FOR THE GREAT STATE OF TEXAS10

 

Bill: You are right about that. They have to be very motivated to do this.Claude: I will stay with stay with my definition. Desperate or stupid.Bill: That is why it took me a whole year to do only do four deals like this.Claude: Right. You have to find, your word is motivated. I am not saying you cannot do this. You can do this, it is only a civil violation. Here is the problem, though - here is where we go to the next step, William. Doing this is creating that executory contract that is in violation of Texas state law. I am not an attorney. I am a recovering attorney. I have a law degree from California. I am not a practicing Texas attorney, okay?Bill: Yeah.Claude: But I know how to do research. I have read this bill. I have read other people’s definitions of this law, and to me, to create this constructive agreement with all the fancy terms like trust and everything, is still illegal. And that could be a criminal liability for you. Okay?Bill: I know an attorney that is another guy who teaches stuff like this. He says he does notify the bank when he does his subject to. He also is a realtor he has to make sure he dots his i’s and crosses his t’s.Claude: Okay, but – that’s back to civil again – that’s with banking and money, and that’s civil. Good for him for notifying the bank regardless, and all that. You can do business as a corporation to protect yourself somewhat from personal liability. But once again, we’re coming back to the other side here of criminal violation.Bill: Okay.Claude: I am not arguing about the techniques and the strategies. My biggest concern is violating Texas law.CREATIVE REAL ESTATE FOR THE GREAT STATE OF TEXAS11

 

Bill: Right.Claude: In my personal opinion doing subject to the way you’re doing it right now, you could have legal and criminal and civil consequences in this thing. You don’t want an aggressive district attorney making an example of you.Bill: Okay, alright.Claude: That’s my two cents on it. Now, having said all this. With my research, I have found they kind of threw the baby out with the bathwater. They included lease purchasing and options and contracts for deed. They threw everything in there that said basically, unless you transfer the title - and just writing up a piece of paper and putting it in a trust is not transferring title. I think a judge would see that as circumventing the law and in violation of HB1823.Bill: Okay.Claude: Okay, we’re talking about basically how to do creative real estate without putting a lot of money down, controlling the property and not violating HB1823. In my opinion, HB1823 says you cannot do executory contracts. And that’s just the way it is. And I think that if anybody takes one of these deals that you and I have just talked about and wants to prosecute you or sue you civilly, I think you’d be in a very defensive posture. Because the whole intent was to undermine or circumvent the law.Bill: Okay, all right.Claude: You know, I’m sorry to be such a corny straight shooter here. I’m not saying you can’t do this stuff - but why take the risk if it’s unnecessary?CREATIVE REAL ESTATE FOR THE GREAT STATE OF TEXAS12

 

Bill: Well, I’d rather not take the risk, I’d rather do it the proper way, within the law, that’s what I would like to do.Claude: Okay, and that’s why I came up with my strategy, and that’s why I had you get me some traditional, just sales agreements. I like the short one you sent me, not the Board of Realtor one. You sent me one, it’s just a very nice, simple, three-page agreement. I love this. It says, “Agreement to Sell Real Estate”. And basically, a contract can be written on a bar napkin as long as you have the buyer and the seller, how much to sell, legal description, purchase price, any significant terms, maybe some other clauses about restrictions, easements, prorations, defaults, termite inspections, yada, yada – okay?Bill: Right.Claude: And the beautiful thing about this is the simplicity. See, when you make something simple, people don’t bring in attorneys, they don’t get scared. This is a very nice agreement you sent me. Unless I missed something, I didn’t see anything that restricted you from assigning this, either. So, why not, instead of doing all this loop-de-loop stuff, why not just do a sales agreement that says that we have the right to buy this property and close escrow within the next 12 months or 18 months or 24 months? Does the seller have the right to say to you that I agree to sell you my property for $100,000, and you can buy it as long as we close escrow by November 5, 2010? Don’t they have constitutional property rights?Bill: Yes.Claude: Does it really matter, is there any law that says how long an escrow should be?Bill: Not that I’m aware of.Claude: In my opinion, as long as you set a specific timeframe that is not what the court might consider excessive, you can keep it between one CREATIVE REAL ESTATE FOR THE GREAT STATE OF TEXAS13

 

and two and three years, I don’t think you’ll have an issue here. So all it says is, I can buy your property and close escrow on or before November 5, 2010. Pretty simple, right?Bill: Right.Claude: Let’s talk about the difference between a sales agreement and an option agreement, and all these other things we were talking about. An option is a right, a contractual right, but not an obligation. An option says you have the choice to buy or not to buy the property, just like a sale – and that can be, very simply, the exact same thing as a sales agreement. A sales agreement, however, is defined as an obligation. You can actually go to court, and force somebody - get a court order - to buy the property – although that’s highly unlikely. I can’t even think of an instance where we had to go to court to force someone to sell us the property after we opened escrow and signed contracts. But you see, the difference is that one is an obligation and one is a choice. But, a sales agreement can be structured so that it can act exactly like an option, and you do not have the obligation to buy the property if one of those conditions is not met. Let’s talk about certain conditions. What’s the most obvious one, Bill?Bill: You can’t get a mortgage.Claude: You can’t get a mortgage! Can you force someone to buy the property if the can’t get a loan?Bill: No.Claude: In most contracts, they put in there, I need a loan with 20% down on an 8% fixed, and if the bank wants 30% down at 9.5%, you’re out of the deal, right?Bill: Right.CREATIVE REAL ESTATE FOR THE GREAT STATE OF TEXAS14

 

Claude: Okay, how about an inspection of the property, the roof, the foundation, termites? If any of those things – and that’s fairly subjective – if you have an inspector who says you’ve got termites or a leaky roof or something, do you have to buy the property?Bill: No.Claude: Right. What about some other creative conditional clauses? Or, subject-to clauses, you can also call them also – that’s why I asked you for a definition earlier. They’re the same thing, conditional clauses or subject-to clauses – they basically say that if this condition is not met, I do not have to continue in this unilateral contract. So I guess to summarize, a sales agreement can act exactly like an option agreement. Right?Bill: Right.Claude: Are you sure you’re with me?Bill: Yeah, yeah – I’m with you there. What I don’t understand, quite, is how we get the rental and they’re paid on the rent.Claude: Okay.Bill: How you get the tenant buyer in there, how that’s...Claude: Okay, first of all, let’s talk about another really important word. It’s called assignment. An assignment means that you can take the rights that you have negotiated in this unilateral contract with the owner, you can assign or pass on these rights to a third party.Bill: Yes.Claude: Did you ever do a loan with a bank and all of a sudden, you got a letter and you had to start sending the payments to a new address?CREATIVE REAL ESTATE FOR THE GREAT STATE OF TEXAS15

 

Bill: Yes, I have.Claude: That’s called an assignment. Did you ever buy a car at the Honda dealership and they sold your car loan to a third party or somebody else?Bill: Yes.Claude: That is good old American business, isn’t it? And that’s called an assignment. So can we do that with a sales agreement?Bill: Yes.Claude: Absolutely! So now we have a contract to buy the property for $100,000 by November 5, 2010. Can I assign that to a third party?Bill: Yes, yes – you can.Claude: Absolutely. So what is uniquely different about this and an option, first of all?Bill: Well, the option, you don’t have to buy the property, like you were saying. With the sales agreement, you’ve got to have something - like contingent on a mortgage or something - that would get you out of it if you need to.Claude: Okay, or subject to or review by my attorney or – you can put anything in there, basically, that’s reasonable and the two parties agree to. So does the person have to buy the property? No. So it acts exactly the same as an option, as far as that goes. So are we pretty clear on that, that a sales agreement, which totally complies with the laws of the great state of Texas, - anybody can do a sales agreement, right? A buyer and a seller can agree to a price and the escrow can be whatever they want and they can agree on the terms of that sales agreement.Bill: Right.CREATIVE REAL ESTATE FOR THE GREAT STATE OF TEXAS16

 

Claude: Nothing wrong with any of that, and it’s not an executory contract, it’s a regular sales agreement. Okay? And there’s nothing wrong with selling a property, owners of property can rent out their houses and they can sell them. Let’s talk about renting. While that property, we’re waiting for that escrow to close, does the owner have a right also to rent out that property under a separate agreement?Bill: Sure – seems like he would.Claude: Why not? And that’s a traditional lease purchase through a realtor –someone moves into the house and enjoys the house while they’re waiting for the bank to approve the loan.Bill: I’m a little unclear on that. When you buy through a realtor you can’t move into the house until the loan is already approved.Claude: Unless the owner agrees that you want to lease the house and move into it subject to the loan - maybe the loan is going to take 45 days, but you need a place to live now. And maybe you have good credit, that was checked, and you’re putting down a significant amount of money into escrow. Wouldn’t the seller agree to allow you to live in the property subject to the loan being approved, and you can pay a rental fee until that closing?Bill: Okay, that’s something I never thought of, but it seems like you could.Claude: Yeah, and that’s a traditional lease purchase also. So we’ll just do a separate rental agreement, which can coincide at the same time with the sales agreement. So what do we have here now? We have two very simple documents: a rental agreement and a sales agreement. Can we assign these two agreements to somebody else?Bill: Yes. So we could assign the rental agreement to the owner until the buyer gets a mortgage? Am I right on that?CREATIVE REAL ESTATE FOR THE GREAT STATE OF TEXAS17

 

Claude: No - you used the wrong terms. We can assign the rental agreement to the potential tenant buyer or the future buyer – let’s call him the buyer. We found the deal, we negotiated a sales agreement anda rental agreement with the owner. Two separate issues in contracts. We then, with the permission of the owner, have the right to assign those agreements to the new buyer, or the assignee, we’ll call him. That assignee can move in and rent the property under a normal rental agreement, just like anyone rents an apartment, and they also have the purchase agreement, so they have now entered into a purchase agreement with the owner. So, they can purchase the property in one year, two years, or whatever they negotiate – subject to them getting the financing, of course.Bill: Right, right.Claude: Can we lock in all the price and terms and...you brought up with me in one of your emails the question of rent credit. We can do rent credit, but I would not use that terminology – I would put in the sales agreement a discount.Bill: Okay – are we talking about the discount on the monthly payment if it’s made on time, then, or...?Claude: Yeah, you could do that – that’s one way. Very good. Excellent. Or – could you discount the sales price?Bill: Yes, you could discount the sales price.Claude: If you pay me my $1000 a month on time for 12 months, I will take $500 a month off the $100,000 sales price. Does the owner have the right to do that?Bill: Yes.CREATIVE REAL ESTATE FOR THE GREAT STATE OF TEXAS18

 

Claude: It’s his house. He can do whatever he wants. So he would take $6000 off the price. So if you pay on time, the property price is $94,000. If you don’t pay on time, the property price is $100,000. Can you put that in an addendum or into the contract?Bill: Yes.Claude: And how much easier...let’s talk about the marketing here. I’m going to do a new audio here and talk about the marketing and complying with Texas law.Claude: Lets talk about marketing. When you went under the old method with the subject to, contract for deed and the trusts and everything like that. I think that is a hard sell. To go to a seller, maybe an unsophisticated seller, and start explaining about trusts, contracts for deeds, subject to, reconfigured titles, and warranty deeds and things like that. You have more experience with that in Texas, do you think that is an easy sell?Bill: We never mentioned the trusts or that stuff. We kept it as simple as possible.Claude: They weren’t scared to death? You got to explain something to them.Bill: Well, we explained as much as we could without explaining too much to scare them off.Claude: You must have given them gobs of paperwork. Right?Bill: There is quite a bit of paperwork that they have to sign for the subject to. Yes.Claude: Claude rule: The more paperwork you have in a deal, the less chance that the deal will occur.CREATIVE REAL ESTATE FOR THE GREAT STATE OF TEXAS19

 

Bill: Okay, that is one thing I do not like about it, is that there is so much paperwork involved with it.Claude: There is so much paperwork. In my opinion, the more paperwork, boilerplate, eight and 10 point type print you get in front of people, the more they get scared. Because they do not understand what they are signing. So what do they do next?Bill: They want to ask their attorney or they just do not want to do it at all.Claude: Yeah. So, they do not want to do it at all. To me I am a K.I.S.S. [Keep It Simple, Stupid] method guy. If I put a simple three-page sales agreement in front of someone and say, hey, I want to buy your property in the next two years. I would like to do a sales agreement, and in the interim I will pay you rental for that property. Until we close on it, if we do close on it. How simple is that?Bill: That is very simple.Claude: When it is K.I.S.S. method, people don’t get scared, they don’t get intimidated, they don’t bring in uncle Harry, the real estate agent in Milwaukee, or Johnny Shyster, the attorney down the street.Bill: Right.Claude: One of the reasons my business is successful is that I keep it simple. I keep it reasonable and I comply with the law.Bill: Yeah, I like that idea. Because I really hate all that paperwork. For what I have been doing. I do not like it at all.Claude: Yeah. In my opinion, it is an explosion ready to happen. Do you know what I mean? Bill: Yeah.CREATIVE REAL ESTATE FOR THE GREAT STATE OF TEXAS20

 

Claude: Its like, did you ever light a cherry bomb and the fuse went off near the end? Then you went to look at it, and it exploded just as you looked at it. If you want to do some research and find out if they convicted or challenged people under this law...I’m sure that there have been a lot of things settled out of court. But, I’m sure that they have tried to make a few examples under HB1823.Bill: Fortunately, I only own one subject to house 100 % on my own. The other ones I own with this person we were talking about. They are kind of managing our stuff for that. Luckily, I have not gotten too deep into this stuff yet.Claude: Okay. That’s good. Chances are, if the bills are paid on time and nobody does anything funny, there probably is no problem. By the way, I just thought of something. Using that method you were doing before, what is keeping the owner from refinancing the property and / or over financing it? There is really nothing you can do about that if the property went up in value and they wanted to refinance.Bill: They don’t have title anymore, how can they refinance the property?Claude: Well, it is going back to my original argument. The title is still in their name. They filed some paperwork with you, but your paperwork is not recorded.Bill: Okay.Claude: It is not recorded with the bank, at least. It maybe recorded somewhere else, but not with the bank. If I have a deal to sell the property to you for $100,000 and it goes up to $150,000 and I want to pull $10,000 out on a line of credit - a HELOC - the bank is going to say, okay, the title is in Joe’s name. We are holding the title. We will give him a line of credit on the thing against the equity in the property. There is nothing you can do with that at that point.CREATIVE REAL ESTATE FOR THE GREAT STATE OF TEXAS21

 

Bill: Right.Claude: You are wide open to being ripped off here. One of the things we do in a lease purchase, by the way, is legally re-file the lease option. We file what is called the memorandum of the lease option, or we file the entire agreement on the property. We normally only do a memorandum so that we don’t have to reveal all the terms and prices, by the way. But, we can file the contract, too. This creates a cloud on the title. Before doing a loan, the bank will always do a title search, of course. Unless they are crazy. So, that recording at the property records division of that lease option memorandum will come up. So you’re protected with the lease purchase. But, doing subject to, the way you were doing it, with the trust and everything, doesn’t sound like you have the protection.Bill: How about the way I will be doing it with the lease purchase agreement? What we were talking about, the sales agreement?Claude: Okay, if you want to protect yourself, you can open up something called escrow. The escrow instructions are instructions to the bank, the title company, the buyer and the seller, of what they need to do to perform in this unilateral contract. I would venture to say that you can probably record that if you wanted to.Bill: Okay.Claude: Let me put it to you this way: As an investor, you’re just going to assign this contract regardless. Is that your responsibility, by the way? You’re going to take your contract, your sales agreement and your lease agreement, and you are going to sell it.Bill: Right.Claude: Once you are out of the deal, you’re going to get cash. You are going to get what is called an assignment fee.CREATIVE REAL ESTATE FOR THE GREAT STATE OF TEXAS22

 

 

O
Why did they change everything around ?
Good question, what did your representative say when you asked ?
I didn’t ask.
Claude, I don’t understand the new laws about real estate in Texas.
Thats OK neither do the people who wrote it (oh no an opinion and
judgement).
Questions, many questions and they seem to arrive on a regular basis
about the new law initiated in Texas entitled HB 1823.
Max use to always say “
that when one door closes a bunch of windows
open”
Texas is a great state with unlimited opportunities in creative real estate .
Real estate will always be a commodity, a necessity of life just like food
-water and air . Real estate is shelter. In todays economy where money is
tight, credit is questionable and conventional methods of purchase there
are solutions. Solutions for housing, investment and profitability are
always available , even in The great state of Texas.
CREATIVE REAL ESTATE FOR THE GREAT STATE OF TEXAS
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