All Forum Posts by: Bryan Zuetel

@Jonathan Taylor, the Los Angeles City rent control scheme does have an exception for an intended, owner-occupied unit to allow for an eviction of that unit.  The process can be complicated and costly but could make sense for the right property.  Most rent-controlled cities or jurisdictions have exceptions or processes for an owner-occupant to evict and occupy one unit.  Search Los Angeles rent control landlord occupancy for more information.  Other than that, you can do an Ellis Act eviction if you intend to take all of the units off the rental market and to offer them for sale.  That process is even more complicated and costly though.

@Jason S., your question is very broad and without context, no one can provide a specific response.  I'm not aware of any law in general that makes it per se illegal in California to use RUBS.  However, RUBS is generally a contractual issue, and additionally, may be limited by local rent control.  You can charge RUBS if RUBS is specified in your lease agreement or made a part of your month to month lease (which is generally not a good idea) and if RUBS is permitted in your local jurisdiction.

@Bryan Cork, this would need to be a discussion with both a real estate attorney and a CPA to navigate the multiple issues that I see here, such as the partnership/corporate structure of the holding entity, potential recalcitrant owner, capital gains taxes vs. 1031 exchange, in-place leases, etc.  Also, I would suggest that you help your parents reconsider the thought that investment properties must be nearby where the investor lives.  If the property is in a good and growing area of Corona (which certainly has good and bad areas) and if they are seeing a positive cash flow on the property, it may make more sense to just collect rental checks and see the property continue to appreciate rather than moving the investment elsewhere.

@Bob Lowry, if you're a California Association of Realtors member, they have a great document titled Banks Offering Broker Trust Accounts.  That document/chart will provide you with all the banks in California that say they are offering broker trust accounts.  I would suggest that you try a business bank for the broker trust account.

@Michael Faudoa This can be as complicated or as simple as you want to make it. I would suggest that you tell your partner/joint venturer that you will do one deal/joint venture together and then evaluate the future of the partnership/joint venture. If you want to continue with that partner, you can set up an LLC or limited partnership. However, always protect yourself with sufficient insurance coverage and good contracts if you're operating as a general partnership/joint venture.

@Philip C. I love Pasadena and grew up around there.  But, I would never invest there, unless I had a large amount of working capital and the desire to flip houses.  However, Pasadena is full of older houses that need some modern amenities and features, like higher ceilings, smooth ceilings, new flooring, double pane windows, modern appliances, modern paint colors, etc.  The easiest way to find examples of improvements to accomplish the 10% increase would be to look at homes in the neighborhood and what features, improvements, and amenities they have and then find a property that doesn't have those.

@Ken Kwok What you've described above is the essence of speculation.  Unless you have some inside knowledge about the anti-development city of Cambria issuing building permits and water rights in the near future, I would suggest that you steer clear.  If you like that area, try finding a moderate rehab single or multi family property in San Luis Obispo.

@Michael Hyche, I'm interested.  Will you please send me the rent roll, P&L, and T-12?  [email protected]

I'm a California real estate attorney, broker, and investor looking for 5-200 unit, value add potential, multifamily properties in the Phoenix area.  I have the team and capital partners, just need the property.  Please let me know if you come across any such deals.

@Matt Popilek maybe I'm missing it, but where is the property located?  Thanks.