Jon Iannotti goes over the need to have an attorney on hand to review all paperwork and provide legal guidance.
By having an attorney who’s familiar with real estate investing, you’ll be better able to communicate with your buyers/sellers and ensure that you’re being legal and compliant.
Mike: Welcome back to the FlipNerd.com REI Classroom, where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. Now, let’s meet today’s expert host.
John: Hi, John Iannotti here and I’m your host today of REI Classroom. What I want to discuss today was becoming legal and compliant.
Mike: This show is sponsored by PassiveRental.com.
John: This is one of the topics that most of the information marketers out there will not discuss because they don’t want to hurt sales. Well, I’m a little different than that. I want you to become legal and compliant, so that you don’t get in any hot water or into trouble because let’s face it, real estate investing is a very legal and compliant business. If you don’t follow the rules, you can get into some hot water and get in trouble.
Stephanie and I, we do not want anybody getting into hot water, so we always tell everybody, “Let’s get legal and compliant.”
Now that being said, how do we do that? Well, there are a couple of things you need to do.
Number one, you need to get an attorney on board for your team, so that you can have him or her review all your documents and paperwork, all your disclaimers, all your lease options, your leases, everything that you’re going to be using, your attorney reviews and approves because every area, down from the state to the local level, there’s different rules, different regulations.
You need an attorney in your back pocket, actually so that he can or she can review your documents, make sure you’re legal and compliant and that you’re doing things the proper way.
I remember when we first started doing investing many, many, many years ago, we won’t even get into that, but we’re told, “Go out and make a mess of it and we’ll straighten it out later on.” Well, today you do that and you could be in trouble. There are too many laws and regulations to follow.
We want you to become legal and compliant so that every single time you go out and you’re talking with a seller or you’re talking with your funder or your buyer, you know what you’re talking about, number one, because you’re the professional. Number two, everything’s been approved and ran through your attorney. Number three, you’re going to run everything through your attorney, so that they do the paperwork instead of you.
What we teach is keep it simple. You have one simple agreement that you use with every single seller, get it under agreement, and then from that point on, anything that needs created to close the deal, whether it’s a conventional sale or a lease purchase, seller financing, the attorney will draw up a necessary paperwork and get that accomplished legally and to keep you in line.
So once again, legal and compliant is what we like to preach and teach. With our system, that’s what we teach with our re-act team members and you can learn the same thing as well.
So today, that’s the topic and I’m glad we can discuss it today because I really want everybody to understand this is a big thing. It’s not just selling programs and moving on to the next sale. It is doing things properly.
We’re professionals here. We’re real estate investor professionals and let’s act like professionals, and let’s do everything right, legal and compliant.
Once again, John Iannotti your host, REI Classroom. I hope to see you at the top. Take care. Bye-bye.
Mike: PassiveRental.com is your source for turnkey, done-for-you rental properties. If you’d like to be an investor and not a landlord, please visit PassiveRental.com to learn how to purchase cash-flowing, professionally managed rental properties in the hottest rental markets across the country. We can also help connect you with financing for your next property. Invest the easy way today, and get started by visiting PassiveRental.com.
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