All Forum Posts by: Bryan Zuetel

@Mike Miller, if you are getting a California real estate salesperson license, you will have to hang that license with a broker. When you hang your license with the broker, you bring on certain liability as a salesperson, even if you're not representing any principals. So, you will almost inevitably have to pay certain fees, like insurance, licensing fees, and continuing education fees. As to MLS fees, generally, those fees are rolled in with the fees to join NAR, California Association of Realtors, and local real estate association (although some associations offer MLS only subscriptions). You will have to check your local association as to whether they have a non-MLS membership.

All of that said though, how do you plan to write your own offers on your own rental properties? In other words, what forms or documents will you use for your purchase agreement, disclosures, reports, statements, and all the other complicated documents that go into a California real estate transaction? Because you will not have access to the transaction forms usually used by California Realtors that come with membership in CAR, unless you join NAR, CAR, and the local real estate association. Then, at that point, why not just join the MLS for a few hundred dollars more and have access to comps and tax data?

I'm a California real estate attorney, broker, and investor, and I am not at all surprised by this tenant's actions.  If he truly has a pro bono (for free) attorney to represent him in fighting the eviction, he has no downside.  In California, there is no requirement that you provide a reason for a 60 day notice to vacate (in a non-rent controlled area).  Has the tenant filed an answer (document denying the allegations of your complaint)?  Did he identify the affirmative defenses or reasons why he believes that he is still entitled to possession?

This was a very interesting map that I ran across regarding the forecasted year over year percent change in price by state across the United States.  What does the BP community think?  Would you use this forecast to guide you for future investment properties?

@Aaron Xie, I'm a California real estate attorney, broker, and investor in Orange County and have lived in the OC for almost 15 years.  Where you might want to live depends on what you're looking for and your life stage.  For instance, if you have kids or a family, I would suggest Ladera Ranch, Rancho Santa Margarita, or Mission Viejo (where I live with my family), which is perhaps one of the most family-friendly cities in Orange County.  If you love the beach, I would suggest Newport Beach, Laguna Beach, or parts of Costa Mesa.  If you want slightly older homes that could be rehabbed, I would suggest Huntington Beach, Garden Grove, Fountain Valley, or surrounding cities.  If you want some older homes close to the beach, I would suggest Dana Point, San Clemente, or parts of San Juan Capistrano.  If you want large, sprawling homes, I would suggest Laguna Niguel, parts of Irvine, the Nellie Gail neighborhood of Laguna Hills, and the Covenant Hills neighborhood of Ladera Ranch.  Lots of choices, all dependent on your preferences.

@Ian Russell, I would suggest that you consider another, perhaps more complicated, idea: a combination Section 121 exclusion (generally for a residence lived in for two of the last five years) and a 1031 exchange for the remainder of the gain. This will allow you to potentially get up to $250,000 (if single) of the house gain without taxes and then to exchange the remainder of the gain into another investment property. This plan requires some planning, but can be a great option. I

@Jay Hinrichs, I am very skeptical of those putting homes under contract and then trying to sell the assignment of that contract. However, I have not seen anything under California law that prohibits such activity, if properly disclosed to all parties. I don't think that a marketing fee on the HUD is a proper disclosure though.

I understand the frustration with multiple actors in the transaction.  But, a real estate transaction is just not a simple purchase; there's a reason that so many people are needed to complete the deal.

I agree that part of the job of a Realtor is hand holding and that some closing attorneys charge a flat fee.  However, I think that I have a unique value proposition in that I'm providing the services of a real estate attorney and broker/Realtor at no added cost.  So, I'm acting as an attorney overseeing the transaction and protecting the client, while also helping them buy or sell their property like a regular Realtor does.  It's a very unique proposition, and I've only met a handful of attorney-brokers that do this.

I'm glad to hear that you have involved attorneys on multi-million dollar transactions.  Some people don't even do that and trust the simple Realtor.

There are some great ideas and posts on here, which can certainly be applicable to this situation.  I am going to throw out another, perhaps more complicated, idea: a combination Section 121 exclusion (generally for a residence lived in for two of the last five years) and a 1031 exchange for the remainder of the gain.  This will allow your in-laws to potentially get up to $500,000 of the house gain without taxes and then to exchange the remainder of the gain into another investment property.  This plan requires some planning, but can be a great option.  I previously wrote an article on this strategy posted here: https://www.linkedin.com/pulse/once-delaying-may-your-best-option-bryan-zuetel.

Please remember that there are many different types of "trusts."  There is the simple revocable living trust and then there are all kinds of exotic type trusts.  All of these trusts can have a role in an estate plan, but it depends on the complexity of the estate.

Also, when talking with a CPA, ensure that the CPA is knowledgeable regarding each state's specific rules on LLC's. There are state by state rules that can have different effects on your estate planning and risk mitigation plans.

All of this to say that there could be specific reasons for the recommendations made by your CPA, but we are not privy to your particular circumstances.

As a California real estate attorney, broker, and Realtor, I constantly see real estate agents who have absolutely no idea about the laws, regulations, rules, and requirements for the product (real estate) that they are selling.  And those same laws and regulations are increasing, not decreasing, every year.  Unlike other states, California has this crazy idea that a real estate transaction need not involve an attorney, despite California probably having the most laws, regulations, etc. in the country.  So, to answer the question, yes, I see mere real estate agents becoming less and less relevant, as laws and regulations (that they don't know or understand) increase and increase, unless California and other states mandatorily involve attorneys in the transactions.

@Kenley Law, your C.A.R. standard real estate purchase agreement includes six contingencies for the purchase of a regular residential property: loan, appraisal, physical condition, disclosures, title, and HOA. Within those, there is a lot of room for discretionary disapproval of certain facts discovered during the escrow. Every escrow and property is different, but as long as the contingency is exercised in good faith, it is up to the buyer's discretion and approval for the most part. So, is your agent suggesting that you need to remove all contingencies or just your appraisal contingency? If just the appraisal contingency, you would still have other contingencies that would potentially allow you to cancel the transaction and recover your initial deposit.