Creating Your Entourage of Experts – Part 5- Choosing a lawyer
If you missed the previous article – Building your Entourage of Experts – Part 4 – Choosing a Mortgage Broker
A full time Canadian real estate investor needs the best team surrounding them as possible. It is crucial to be able to do many, many types of deals, both conventional and non-conventional. We also need to be able to do deals involving third parties through joint ventures.
Protecting your interests
This is where it is integral to have an excellent real estate lawyer on your team. A lawyer is the person that can facilitate a contract based on your needs. I always like to tell people that when talking with a lawyer about a deal, create an outcome for the deal, then work backwards from there. Get your lawyer to outline the steps that are necessary, thus creating clauses in a contract to protect your interests.
Comfortability is key
Although it is OK to have a lawyer that is local, it is highly recommended that you use lawyers in different cities, particularly if you are doing business in different provinces. The comfortability of a lawyer understanding their own area, being able to fax or courier documents locally, and ability to speak with the another parties local lawyer is important, although not critical.
When interviewing a lawyer, just like any team member, you must be confidant and in control of the situation. Lawyers, although perceived as knowledgeable and on a pedestal, don`t necessarily know everything. Yes, lawyers know the law, but the may not know the law specific to your situation, and they may not be able to create contracts that protect you in the ways that they should.
When interviewing a lawyer, you must ask if they are an investor as well. They must be able to outline all closing costs involved in purchasing a deal conventionally, and ask if their legal assistants have over three years of legal experience. (Typically it is the legal assistant that closes the conventional real estate deal.) The creative, non-conventional real estate deal is usually done by the lawyer.
Your lawyer should be able to structure a venture. This is absolutely critical. In order for you to do more business, joint ventures must be a necessary inclusion. Each joint venture lives and breathes differently from deal to deal.
Your lawyer should also be able to deal with foreclosures and/or power-of-sale properties, whether they are on the MLS or, more importantly, the ones that are not.
Your lawyer should be able to deal with civil matters, such as contract laws or perhaps dealing with general contractors who you may be in civil action with. The lawyer must also be an expert in settling partnership issues, working with other investors, and dealing with evictions.
Move on if necessary
Please ask the lawyer what their experiences have been regarding the aforementioned questions. If they are uncomfortable with any of these areas, please consider moving on and interview another lawyer. You must be comfortable with and not intimidated by your lawyer.
All the best in building your entourage of experts!
Canadian Wealth Builders offers many unique, practical, “out of the box” real estate investor trainings which offers the student hands on, in the trenches style instruction to facilitate both a different mindset as well as a successful and lucrative real estate investment business. To find out more, please go to www.canadianwealthbuilders.com
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