All Forum Posts by: Kelly M.

Are interest rates on land loans and loans on home build higher (they would practically have to be) than an inventory home? @Bruce Lynn My wife and I love north DFW and spend a lot of time in Plano and Mckinney, is there any other area you would recommend we look at to buy a lot and build other than Mckinney, Allen, and Fairview (we are not into Frisco and see very little in the way of lots in Prosper).  We checked out Heath and didn't fall in love with it.

I would like to buy land in the DFW area, anywhere from .66 to 1 acre.  I am conflicted about whether to buy now or wait until I am actually planning to build as I do not wish to pay property taxes on the land but I am concerned the few remaining lots in the areas I am interested in (Fairview, Allen, Lucas) will be gone and\or that by the time I am ready to build (in about 18 months from now) I will be priced out of the larger lots and will have to build on something smaller.  I am a bit shocked that in Allen I can get a .3 acre lot for $275K which I think is a lot of money but I can certainly afford it.  I have never built a house before, I have no idea of the lending process of a home build, yet for something reason, I feel an urgency to buy land right now.  Am I over reacting?  Will there be no more lots in a central area in Allen in 12 months or will the $350K for an acre of land in Fairview seem cheap in 12 months?  I would like some thoughts on people with more experienced than myself on this as I do not wish to make a mistake with hundreds of thousands on the line plus being on the hook for about $7K in property taxes per year while I figure things out.

Thank you so much, Kelly, your thoughts are very helpful.  The way I view this is that this is a business transaction and nothing more.  We are talking about a combined total of about $60K in commissions amonst both properties and that is money that will come out my family's pocket.  I don't want to be rude only so much as it could hurt me, not so much out of a desire to avoid being rude because again, this isn't about who is going to pick up the tab on a $100 dinner between friends.   If I feel I may hurt my friend's feelings then I will just work with another agent - its all quite simple to me because I have compartmentalized this as a business transaction and I am a businessperon.  

My question is, if I say I am only willing to offer a 3.5% commission on a property sale in the LA area, will it actually hurt the prospects of getting top dollar for my house?  If the answer is yes, then I will offer the lowest amount I can that will get me top dollar, if it won't then I will go with 3.5% (or even lower).  So the question is, should I expect offering 3.5% commission to be a problem?

What is DOM?

And are you saying that if I am willing to deal with being perceived as a tightwad that I can ask the agents to split 4%? 

I am looking to sell 2 properties right now - both located in Northern Los Angeles (specifically Thousand Oaks).  I am most likely going have friend of mine as my listing agent to sell both homes.  

I have 2 questions:

1. What is the average commission rate to be split amongst agents in the Los Angeles area at the moment?  What are the consequences of offering less than the average amount and is it "rude" to do so?

2. Because I am offering a single agent the opportunity to sell 2 properties simultaneously (one should go for about $600K and the other for about $750K) - is it fair to negotiate a lower commission rate with my listing agent?

I clearly don't wish to be a cheapo jerk but I want the best outcome for myself.  Is it kosher to negotiate these things, if so, what are some guidelines so as to not put people off? 

My rental property is located in California.  I know that the tenant needs to be offered the opportunity to do a pre-move out inspection within the last 2 weeks of the lease AND that the tenant has the right to be present during the inspection.  What about a final move-out inspection?  Does California mandate that the tenant be present for the final move-out inspection?

 I saw that same post but how does that give the tenant enough time to get quotes and fix a problem that is, say, a bit serious, i.e. replacing hardwood floors that the tenant's dog destroyed or other issues that may require more than a 2 week time frame to address?  Just to confirm, you are saying that the pre-move out inspection needs to happen within the last two weeks of the lease?  I would be happy for anyone else to chime in and confirm.

I feel silly about this question because it really shouldn't be so difficult, but here it goes:

In California, the landlord must notify the tenant of their right to a pre-move out inspection and then the "The inspection cannot be scheduled earlier than two weeks before the end of the tenancy or lease term."

I am confused by the use of the word "earlier" in the stipulation that states the "inspection cannot be scheduled earlier than two weeks before the end of the tenancy or lease term."  

• Does that mean that the inspection needs to be done in 2 weeks or LESS from the end of lease, i.e the lease ends on June 30th, therefore, the inspection needs to be held any time from June 15-30th.  
• Or, does that mean the inspection needs to be done 2 weeks or MORE from the end of lease, i.e the lease ends on June 30th, therefore, the inspection needs to be held any time before June 15th. 

Sorry for the silly question but logic tells me that the inspection should be held 2 weeks or MORE from the end of lease so as to give the tenant enough time to fix issues but in reading the law it appears that it should be held less than 2 weeks from the end of the lease.  

Please clear up the confusion for me in plain English.

Thank you!

I live in California and minimizing liability is the name of the game here because the state is so favorable to tenants, even when you go out of your way to do the right thing.  So, I want to put a clause in my lease that limits my liability in the event my tenants need to stay at a hotel due to emergency repairs that make the house uninhabitable.  I would like to limit my liability to 1/30 of the monthly rent per each day that the tenant is out of the property.  What I do not want is a tenant who wants compensation for their inconvenience or any other expense they may claim they are incurring and that they want me to pay.  Can someone please help me with the wording to write a clause that satisfies this limit of liability to no more than 1/30 of their monthly rent for each day they are staying in a hotel?

Thank you in advance.

I understand how an LLC can help shield my asset but how would an LLC shield my legal name when I have to sign the rental agreement?