All Forum Posts by: Account Closed

This type of letter from licensing agencies is common when you state that you "have a partner." The agency wants to know if that partner is a licensee, since if he or she is, the content of your letter would have to comply with advertising and solicitation regulations applicable to licensees.

If they're taking bids, there's no reason to wait for the MLS, that's the worst possible scenario (competition). Ask your agent for an explanation.

I use the standard California Association of REALTORS package, which is 6 pages plus another 2 pages for lead paint, smoke detector, carbon monoxide detector and water heater disclosures. I also have one page of "House Rules" that include: don't make noise/smells that bother neighbors, only currently registered vehicles may park on the property, no car repair may be performed on the property, no smoking in bed, no illegal activity, outdoor cookers must be used more than 10 feet from any structure, etc. etc. etc. About 11 or 12 pages total, but the subject matter is more important than the page count. I'd rather have a 20 page lease in 12 point font that covers all the bases cleanly than a 6 page lease with fine print that will most likely not be read and creates a lot of risk.

In CA we have 2 requirements when a lease is about to expire and you won't renew it. One is to make sure the you give sufficient notice (# of days) that the lease won't be extended and the tenant has to vacate by date "X." The other is that the tenant has a right to a pre-move out inspection no sooner than 2 weeks prior to the termination date. The purpose of the inspection is to identify items that must be repaired prior to the tenant leaving or the cost of you doing the repairs will be deducted from their deposit. If you can deliver these notices concurrently and in-person, get a signature on your copy. The green USPS receipt card is great, but if the tenants work during the day when the carrier comes, it could take weeks before they go to the post office to pick up the letter (this has happened to me a lot with fix-it and complaint notices). By then, the notice due date might have passed.

Some once said, "a lock is meant to keep an honest man out." Thieves will always find a way in. If a night guard isn't affordable, always take tools home.

Raymond - There are properties all over the Bay Area that cash flow, but as you point out they take more $$$ to get into. I'm looking for an investor who would like to star with me in a TV show called "Million Dollar Flips." I just made that up, but I'm making the point that there are deals in every value range market, you just have to have the resources to operate at that level. It seems that 99% of Bay Area flippers who contact me asking for help finding properties operate in the $100k to $300k purchase range, but the good flip deals that I come across in mid-peninsula (Palto Alto, Mountain View, Los Altos, etc.) are in the $700k to $1.3M range. The same margins and cap rates are there, investors just have to have BiggerPockets.

Back to reality - I found about a dozen East Bay properties under $400k in the MLS today (Martinez, Pleasant Hill, Alameda).

Micki - CA actually has the same 2 year experience requirement, but it can be waived if the applicant has a 4 year college degree with a major or minor in real estate.

Micki - I'm also trying to recruit investor/agents and investor-friendly agents to join my brokerage. I'm finding that most investors who get licensed do so as a broker, not a salesperson, so they don't need to hang their license with anyone. Best of luck!

How old is the report that you had done when you bought the lot? You may be able to use that one. If you bought without a study, I recommend you have one done and get the boundary corners marked by a surveyor. Roll the cost into the purchase price or else they become potential negotiating points that you don't want.

You probably don't want to hear this... but I recommend against involving friends and family in business deals. When things get tough, and they do from time to time, the strain on these valuable relationships is just not worth the money. Something to consider.