All Forum Posts by: Carl N.

My two questions on this will affect the market relate to 

Vacation Homes: If you haven't had renters there then could you split the lot and build accordingly? Or even just build one more unit and rent it? 

SFR - MFR: After you split the lot and build, can you immediately sell the non-owner occupied lot? How hard will the city be able to fight this with the exemptions they have? Meaning if you bought a house on a large lot in anticipation of doing this what legal hurdles will you face?

Would be nice to see some precedence set for this to see playbook and potential legal pitfalls.

@Macy Bassler I believe it is either 2 or 3 years that a tenant needs to be present to be considered a rental but you may want to check with an accountant. The repercussions would be a clawback of taxes due I believe. Perhaps you may want to refi(cash out) it while owner occupied, then rent it so you have short term access to funds. From there you can rent it out for the necessary amount of time until you want to/can sell. This info is based on what I remember so definitely check with a pro first. Good luck.

With the passage of SB9 I am curious about potential investment opportunities that may come with it. Would love people's input(especially any CA lawyers) on this hypothetical investment scenario. This would mainly be in a higher priced area(I live in the East Bay of Bay Area).

Find a partner willing to invest and to live in the house(one of the homes) purchased.

Find a home or lot for sale that is big enough to be subdivided while maintaining a good size lot on each parcel. 

Build additional homes on each lot until you reach the 4 unit maximum. This would either be building 3 or 4 new homes depending on whether buying a vacant lot or a lot with an existing home.

Question 1: What percentage would the person living there need to own of this project to qualify as the Owner? 

Question 2: Are you able to sell the home(s) built on the newly split other lot. If so what is the hold period if any? 

Question 3: It states that the local has the ability to block it but what is the likelihood based on what is written in the law.

I am sure that there are questions I forgot or didn't think to ask but would love feedback to vet the feasibility of this thought process.

The new law can be found here for reference. 

Income is good both on properties and personally. Not sure offhand on DTI ratio. Loan amounts on one is under 50% LTV and the other right around 50% most likely.

I have noticed of late that finding cash out refi's on SFR or mulit family units here in Cal to be difficult despite the massive increase in equity. Does anyone have some best practices or lenders that they favor for accomplishing this?

Curious on how this would affect vacation homes as it relates to SB9. Would you be able to accomplish the same things if you don't live there full time?

I need some help identifying the best or available methods(syndications, trusts) for purchasing an apartment complex.

I have a track record in the area and have identified potential investors.

I would invest 33% of total amount needed down and have avenues to raise the rest just not sure on the following:

- How to structure it legally

- How to secure the property before having the money needed

- Suggestions on options for splits when acquired or additional equity granted to the sponsor.

They are asking $7.5M for property

Current gross income $447K. 

@Curtis Green I would love to ask you a few.

I am looking in Northern California and due to the high cost of real estate want to try and do as much due diligence prior to purchasing both business and property.

I am looking at a 6 person residential assisted living facility who is charging around $5400/person. I have not received their cpa certified books but in their bookeeping they did show they listed out $100k in payroll which seems light.

As I am not of a medical background curious on what your weekly expectation of time allotted would be in year one and beyond.

Can you give me some insight into the licensing and transfer concerns I should be aware of. I have reviewed the property for violations already and they are limited in nature.

While I have talked to people about this I don’t know what I don’t know.

Thank you