Lecture Notes on Real Estate Acquisitions and AOHs

Introduction

• Host: Standing for the lecture, discussing real estate and acquisitions.
• Co-host: Mason, head of acquisitions at REIF.
• Upcoming Events:
  • Maria Acosta coming to discuss real estate, especially flipping and wholesaling.
  • Open Office Mastermind event focusing on underwriting.

Key Topics

Slowing Down to Speed Up Success

• Importance of understanding what it means to get a real estate deal "locked up".
• Discussing messy titles and acquisition strategies.
• Importance of promising to solve sellers' problems.

Marketing and Legal Considerations

• PPC Leads: Example of a lead under contract for a sub two deal.
• Assuming Loans: The misconception around assuming loans, especially regarding interest rates.
• Legal Implications: Discussing legality and correct wording when dealing with sellers.

Acquisition and Underwriting

• Mastermind Topic: Understanding underwriting and how to get deals done.
• Discord Interaction: Mention of Discord for queries and discussions.
• Questionnaire: Importance of using questionnaires to gather necessary information.

Case Study: Sub Two Deals

• Scenario: An old lady in a sub-two deal, confusion over loan assumption.
• Key Issues: Lack of clarity, incorrect terminology, and seller needs not being addressed.
• Solutions Discussed: Legal education for sellers, clarification of terms, and ensuring seller needs are met.

Affidavit of Airships (AOH)

What are AOHs?

• Legal documents used in inheritance and probate deals.
• Essential for clearing up title issues when there are multiple heirs.

When to Use AOHs

• Common in inheritance, probate deals, including land and homes.
• Necessary for accessing certain assets like bank accounts.

The Process

• Gathering Information:
  • Details about the deceased and heirs (DOB, DOD, marital status).
  • Proof through documents like death certificates.
• Affiant Role: Person completing the AOH, not an attorney or escrow agent.
• Witnesses: Requirement of two disinterested witnesses for each AOH.

Challenges in AOH Deals

• Complex Heir Situations: Multiple marriages, children from different partners, and heirs in jail or deceased.
• Negotiating Sales: Handling family dynamics, ensuring fair distribution, and dealing with absentee heirs.
• Pro Tips: Using public records and creative negotiation strategies to manage relationships and expectations.

Conclusion

• Importance of Control: Having control throughout the process, from contact to closing.
• Role of Title Companies: Assisting with legalities but requiring proper documentation.
• Negotiation Skills: Critical in managing complex family situations and ensuring successful deals.
• Focus on Problem Solving: Essential for achieving successful real estate transactions.