All Forum Posts by: Max Gradowitz

If it's in decent shape and no windows are cracked/broken, and all major systems work, I wouldn't be too worried about it. FHA requires habitability, so broken windows will be a problem, leaking ceiling, obvious plumbing or electrical issues, etc. If there are repairs needed, they rarely rise to the level of thousands of dollars, unless the place is in disrepair.

If you are wholesaling, find a title/escrow company with experience with assignments. Provide them with P&S and assignment contracts (they may prefer the CAR forms, so ask them). They will collect all the funds for the transaction, do the title search, and close escrow and disperse funds to all relevant parties.

It's very common in CA for sellers to list their tenant-occupied property "subject to interior inspection".  Very very common.  All my clients buy multi-family and 95% of tenant-occupied properties are listed this way.  I list my tenant-occupied properties this way.  You don't want to disturb your tenants with showings every day.  If I don't list it subject to interior inspection, I'll have showings every day with no serious offers.  If I DO list it subject to interior inspection, then I'll get no showings until I get a serious qualified offer.  Very smart strategy and extremely common.

Also, don't you have your own agent?  Ask them if you are still weary.  It's their job to explain this stuff to you.

From what I understand, title companies will not issue title insurance until 1 year has elapsed (because there is a 1 year statute of limitations for challenging the sale).  After that 1 year, you should be ok to sell, but each title company may handle this differently so it's best to check with them.  And nothing I know of prevents you from renting it out in the meantime.

Max

What do you need the lawyer for exactly?  Because that will determine what type of lawyer you want to find.

Also, if it's a tax question, ask a CPA.  Lawyers don't know anything more about taxes than the general public.

Consider Central CA.  You can find 5+ units for as low as $300k in my neck of the woods.

Welcome!

The code you cited states that accessory structures can't be rented out.  If a structure on your property is not permitted, the County likely views this as an accessory structure (like a shed, greenhouse, etc that do not require permits). 

Go to the County Assessor's Office (at least that's what it's called in my county) and ask for copies of the records on your property.  If something gets permitted correctly, it should be reflected in these documents (it will include that sq footage, it's drawn on the blueprints, there's an entry of the permit, etc).

What do you mean "investor friendly"?  If you mean one that can do assignments, call and ask a few if they do assignments.  If you mean anything other than wholesales, any will do just fine.  Finding a great escrow officer is more important than the company itself.  You don't call a real estate company to find an investor-friendly Realtor, you find the best Realtor for that no matter what company they work for.  The company is merely a formality - Realtors and escrow officers switch companies every so often.

If you have an LLC, you should know how an LLC protects assets. Accordingly, you should also know why having multiple LLCs is better when you own many properties. If a tenant, contractor, etc slips and falls and sues, they will have to sue the LLC that owns the property. If they win, assuming your LLC was properly formed and managed, the plaintiffs can't reach your personal assets (hooray for LLCs!) and their judgment can only reach what the LLC owns. Now, if your LLC owns 10 properties, they can reach those 10 properties to satisfy the judgment. What if the judgment is really large? If your LLC only owns one property to reach in the event of a judgment against the LLC.... I think you get the idea now.

Plenty of people own multiple properties under the same LLC, but many also choose to go with the added protection of owning only one or two properties per LLC to limit what can be reached. Does it cost more money to have more LLCs? Yeah! More asset protection = more money. Car insurance policies cost more money if you get better coverage with more protections, that's how things work. If you don't want this added protection, don't do it. Simple.