All Forum Posts by: Mark Vesu

Is the duplex a rental held 50/50 by your sister and friend? I assume the deed is held as a TIC, correct? You really do not need anything sophisticated if the arragement is a 50/50 investment. If one or both intend to live in the duplex, yes, by all means, put an agreement together.

You form a California LLC with your sister and friend as managing members and then quitclaim the property into the LLC. Simple. The California Secretary of State website can walk you through the process. You will need a federal TIN as well.

Thanks for your response. It is 60/40 ownership.

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San Jose, California

Quote from @Account Closed:

Quote from @Mark Vesu:

My sister owns a duplex with a friend of hers and would like to get the groups help on two topics

1. Can someone refer a good lawyer in California to write/review a Tenancy-in Common Agreement? What can she expect to pay for this service?

2. What is the process to put the TiC into an LLC and how much would it cost?

Appreciate your help.

Okay, so a new roof needs to be put on, who pays for that? What if one of you loses their job and can't pay their part of mortgage, taxes & insurance? What if one has a very serious emergency and needs to sell? How is that handled? What if one of you dies and the inheritance goes to a relative that wants to sell or can't afford the mortgage or is hostile or moves in and is very disagreeable or moves in & does drugs and sells drugs?

Just thinking out loud . . . ;-)

Thanks for your response. All the expenses (roof, gardener, prop tax, etc. are split at 60/40)

0 Votes

San Jose, California

When you say attached ADU, do you mean Junior ADU or (JADU)? If you don't mind me asking, if you can't move it around, what is the reason behind ADU on wheels?

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San Jose, California

Quote from @Darius Ogloza:

@Darius Ogloza thank you. It is actually 60/40 and one side has a so so tenant.

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San Jose, California

Quote from @Katie Balatbat:

@Mark Vesu

A written agreement among co-owners is always a good idea. Although they may be on the same page when starting out, so many possible disagreements or unforeseen circumstances could arise. The cost is likely dependent on the level of customization and depth needed. As you mentioned an LLC as well, generally you would either have a TIC Agreement or an LLC as the LLC operating agreement will essentially serve the same function as the TIC Agreement, and ownership would either be held in the LLC or as TICs at any given time.

*this post does not create an attorney-client or CPA-client relationship. Readers are advised to seek professional advice.

@Katie Balatbat Thank you. What would be better? One, the other, or both. Please see my response below. Appreciate your help. Will you be able to recommend a lawyer?

0 Votes

San Jose, California

@Account Closed Since this is within the close friends, no issues on any "common expenses". There could be two issues:

1. One side is fully kept up to date and the other is not (no one knows the inside condition)

2. One side has a good professional tenant and the other is so so (they divorced one year after moving in and the guy had difficulty paying rent during covid). He could be an issue when they try to evict him.

This is the main reason, she wanted to quickly sign the TiC and get the property into LLC as she doesn't want to be liable for other tenant issues.

Thanks

0 Votes

San Jose, California

My sister owns a duplex with a friend of hers and would like to get the groups help on two topics

1. Can someone refer a good lawyer in California to write/review a Tenancy-in Common Agreement? What can she expect to pay for this service?

2. What is the process to put the TiC into an LLC and how much would it cost?

Appreciate your help.

0 Votes

San Jose, California

Hello all, I have a duplex that I can sell now for around $1.6m in San Jose; however, SFH across the street goes for $2.1 (same building square footage - 2000 sq ft, 15 year old building, smaller lot). If I spend $200k, I can easily convert the duplex into a SFH and add another 250 sq ft. Has anyone done this before? Are there any risks involved? Appreciate your feedback. Thanks in advance.

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Thanks for all the information. Can someone recommend a good mortgage broker for cash out refinance? The property is in San Jose, CA and I am thinking of taking 60% out. Appreciate your help. This is 100% rental - I am not living there.

Best.

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Thanks for all your help. These are all valid points to consider. Wrt to duplex, will spending money on quartz countertop, new interior doors, new appliances, new exterior paint, etc. (roughly 15k) get me a good ROI? The property overall is in very good condition and it is in San Jose, CA.

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All Forum Posts by: Mark Vesu

Mark Vesu has started 16 posts and replied 47 times.

Post: Tenancy-in-Common & LLC

Post: Tenancy-in-Common & LLC

Post: Tiny House on Wheels as ADU in San Jose

Post: Tenancy-in-Common & LLC

Post: Tenancy-in-Common & LLC

Post: Tenancy-in-Common & LLC

Post: Tenancy-in-Common & LLC

Post: Duplex to Single family conversion

Post: Is it worthwhile keeping the duplex

Post: Is it worthwhile keeping the duplex