Every week, millions of people tune in as real estate investors with their own TV shows buy a foreclosed property, fix it up, and double their money. While that is an inspiring concept, the television cameras don’t follow these house flipping pros through the legal process of acquiring and selling the property. For Minnesota residents considering this sort of career path, there are a lot of legal aspects that need to be considered.
Finding a realtor
A person who walks into a real estate transaction without a realtor is a lot like an individual who walks into a courtroom with plans of representing themselves. Working with a realtor who is familiar with buying and selling foreclosures is a great first step for anyone who is considering house-flipping as an income source. There are legal steps that a Realtor will know about that will ensure that their client goes through the process the right way.
The main legal aspect of buying, and eventually selling, a foreclosed property is in the process of clearing up any liens on the property. The person who buys the foreclosed property is responsible for clearing up these liens, which are essentially lawsuits in which the property owner is the defendant. Working with a Realtor and a real estate lawyer is the best course of action to ensure that these liens are properly resolved and the property can be sold.
Pay for inspections
Once the changes have been made to the home, it is eligible to be moved into or sold. That is, after the property has undergone an inspection by a licensed home inspector. These inspections can uncover issues that have to be resolved before the home can legally be inhabited.
A Realtor is an important partner for anyone considering real estate investing. In addition to a Realtor, an attorney well-versed in their state’s real estate laws is also an important piece of the puzzle. This attorney can help their client ensure that every aspect of their deal is done legally.