Over my 25 years of practicing law, mainly in the area of real estate, I have found many individuals who get involved in the area of real estate investing based on what they have learned from a weekend seminar or a book they purchased on Amazon. These are good sources and certainly can be motivating; however, when it comes to the nuts and bolts of real estate investing, having someone who has the legal knowledge to assist an investor can be extremely beneficial.
For many investors, especially those just starting out, keeping initial expenses low is important, they become hesitant about retaining a real estate attorney to assist them in the process. Now, that is where I can be of assistance. Recently I obtained my Texas Real Estate agents license. You may ask yourself why an attorney needs such a license. Well, the law in Texas states a real estate agent can only share their commissions with another licensed real estate agent. So, what does that mean for you?
As a buyer of residential properties, you can list me as your real estate agent, and I will be paid through the commission the seller pays to their real estate agent. Normally, commissions are 6% (though this percentage is by no means mandatory) and the seller's agent is willing to share half of that 6%, which is 3%. You as the buyer then can receive legal counsel in the process and not have the expense of paying legal fees. It is a win/win for you.
For buyers of commercial properties, the process is a little different. Seller brokers/agents in commercial deals do not normally share their commissions. However, when you the buyer submit your letter of intent (“LOI”), you include a provision that your real estate agent is also paid a small commission. This will then allow us to represent you, provide you with legal counsel and reduce your expenses.
As for you sellers, we are always happy to assist you. We will partner up with our broker who can provide the marketing portion of the transaction, while we would provide the legal guidance and assistance.
We believe with this new tool we can provide this important legal counsel to our clients in a manner that is very cost effective. If you are interested, just reach out to us. You can set up a free, 30-minute consultation via our website, thelawfirmmc.com. There you can pick a day, time and format (office, phone or Zoom) for the consultation.