Monday Deal Review Valueless Lots We are Buying
Jack Butala: Monday Deal Review Valueless Lots We are Buying. Every Single month we give away a property for free. It's super simple to qualify. Two simple steps. Leave us your feedback for this podcast on iTunes and number two, get the free ebook at landacademy.com, you don't even have to read it. Thanks for listening.
Jack Butala: Jack Butala and Jill DeWit
Jill DeWit: Hello.
Jack Butala: Welcome to our show today. In this episode Jill and I talk about ... It's our Monday deal review. It's Monday actually and we talk about buying valueless lots. Great show today Jill, let's take a question posted by one of our members on successplant.com our free online community.
Jill DeWit: Dave asked, "I have a seller whom holds the property in an LLC. If I close via a mobile notary what documentation does he need to show the notary to prove he can sign for the LLC prior to handing him the cashier's check? Is it the operating agreement?" Jack?
Jack Butala: I'll tell you, this is a great question. It's an excellent question. You know, we buy properties and you do or will buy properties from legal entities and LLCs and all that stuff. How do you know the guy is signing or the person signing for the LLC has the authority to sign? The thing about an operating agreement is it's a legal entity that can hold property just like a trust but what's interesting is I don't think it gets as much attention about checking these signatures as let's say a trust does. I know Jill has a standard procedure to make sure that this is okay that goes pretty quickly and I bet it's the exact same procedure as a title agent would use. Right?
Jill DeWit: Probably.
Jack Butala: Go ahead. How do you do it?
Jill DeWit: Well, I do my homework first. Here's the thing Dave. Long before I'm ever even looking at a notary and all of that stuff I would've made sure that the person I'm talking to and making this agreement and everything really is the person, they need to really be the managing member and it's so easy to check this. You can go on to the state board, business board. I don' know what the LLC commission is called, but anyway. I'm trying to think.
Jack Butala: Corporate commission.
Jill DeWit: Thank you. You can easily search by their LLC name or even maybe the member name and it'll pull up and you can see right that that's the right person's.
Jack Butala: That's a good question.
Jill DeWit: Then you can see too if there's other people that are listed, but you want to make sure you have the managing member. If there's a board, and there might be two managing members or something, then they both need to sign. You do that homework ahead of time. Then, I was going to say too, when I'm sending it to my notary, most notaries, that's not their job. Their job is to verify that the person signing is the person named. They're not going to do the homework or even know how to do the homework often to verify if, "Is this the right person that should be signing?" You don't want it to get to that point anyway.
Jack Butala: The job of a notary is just to verify that the person that's actually signing the document is actually that person.
Jill DeWit: Mm-hmm (affirmative).
Jack Butala: Their job is to do nothing other than that.
Jill DeWit: Right. Not supposed to verify they really do work for ABC and whatever.
Jack Butala: They don't eve read this stuff and they shouldn't.
Jill DeWit: Exactly. That's right. I don't need an operating agreement, I have it right there. Maybe there's a couple people listed and there's some questions, but I've never had that situation. I can check it myself.
Jack Butala: Right. In the beginning ... By the way, the country recorder will not check this at all. If it's XYZ LLC an Arizona corporation and John Smith signs for it and John Smith of XYZ corporation was on the vesting deed, that's all they look at.
Jill DeWit: Good point.