Dallas-Fort Worth Real Estate Investor Club

Selling alternatives in Texas

  • 02 Nov 2010 10:14 AM
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    Message # 455608
    Deleted user

    Hey Gang,

    Have been trying to get some definitive information, but haven't really been able to thus far.

    With the state regs making Lease Options virtually impossible, certainly difficult, and the SAFE Act requiring a license for seller financing, how are so many local sellers still owner financing or renting to own their properties?

    What are legal alternatives to seller finance or lease options here in Texas?

     
  • 03 Nov 2010 4:21 AM
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    Reply # 456167 on 455608
    Deleted user

    Brian,

    I am not an attorney and am not giving you legal advice. For that I'd suggest you contact someone like Abid Hussain. That said, many local investors are still doing "old fashioned" owner finance / rent-to-own out of ignorance.

    The new laws don't make it illegal to do owner finance / rent-to-own deals, they just make it VERY difficult. People mistakenly think the new laws make doing these kind of deals illegal. They aren't (under certain circumstances). However, the news laws DO have draconian reporting requirements and HORRIFIC fines.

    Other investors are using wrap notes to accomplish the same things.

    If there is anything else I can help you with, please don't hesitate to let me know.

    -Greg Wilson ("The REI Mentor" - www.reimentor.com)

     
  • 04 Nov 2010 3:08 AM
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    Reply # 456771 on 455608
    Harold Whiteley
    The very reason for the clamp down on using Lease Options or rent to own SFR properties is that there WERE some CROOKS mis-using the methodology, AND taking sales away from Realtors, who surely didn't LIKE loosing those growing in number sales. Thus, here come their lobbists..and bingo bango presto...NEW restricting laws, decrees and mandates placed upon the sales method, which is STILL a very viable method to transfer title from the owner to the buyer. So, get in touch with a good real estate attorney, and look into taking the transference inside a Land TRUST, which will protect everyone within the transaction. Harold Whiteley, Flower Mound, TX 214-872-7071
  • 04 Nov 2010 8:25 AM
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    Reply # 456836 on 456771
    Tim Cook
    Harold Whiteley wrote: The very reason for the clamp down on using Lease Options or rent to own SFR properties is that there WERE some CROOKS mis-using the methodology, AND taking sales away from Realtors, who surely didn't LIKE loosing those growing in number sales. Thus, here come their lobbists..and bingo bango presto...NEW restricting laws, decrees and mandates placed upon the sales method, which is STILL a very viable method to transfer title from the owner to the buyer. So, get in touch with a good real estate attorney, and look into taking the transference inside a Land TRUST, which will protect everyone within the transaction. Harold Whiteley, Flower Mound, TX 214-872-7071


    All,

    First, as Greg said, I am not an attorney and NOT giving legal advise.  Second, this is not a very good forum to have this discusssion as there is alot to address.  I'd like to clarify a couple things already said.  As Greg stated, lease options and owner finance is NOT illegal.  

    HB 1823/SB 629 (the "Act") was passed by the Texas Legislature and signed into law by Governor Perry on
  • 04 Nov 2010 11:57 AM
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    Reply # 456989 on 455608
    Deleted user

    I certainly appreciate the breadth of the subject, and realize there are a number of legal questions to answer, however, not that many of us have lawyers on retainer.  How about some high level option or ideas, so we know what area of knowledge to seek?

    Buy Subj2 into a Land Trust?  Owner finance your buyers by selling the beneficiary interest in that trust?  Double-Wraps?  I believe Greg mentioned before, selling your LLC which owns the property?

    I like to understand from a macro-view, then drill down to specifics.  Money is better spent on lawyers for specifics.

     
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