All Forum Posts by: Max Gradowitz

Did you check every single name within her company?  Did you ask if she works under a broker?  I'm not trying to discourage you from filing a legitimate complaint, but I've had people confidently tell me that their property manager doesn't have a license, only to do more research and find out that they WORK UNDER a licensed broker.  Just make sure this is not the case before you pursue a lot of time and energy in to filing a complaint.  Oftentimes the property management company can provide some broker's name that the company works under.  It's like having a real estate agent: they do all the work, you contact them for everything, but they all work under a broker that you virtually never hear about or hear from unless things go bad with your agent.

With that said, if there is no licensed broker connected to the company, then you can file a complaint and the CBRE/DRE can send a desist and refrain order.  That order is published publicly.  If they do not abide by this order, they are subject to to a large fine and even jail time, and this is made clear in the order.

Every state has specific laws on the repair/deduct arrangement, non-payment of rent, etc.  But, in general I'd recommend having your OWN handyman go there, right away, to make repairs and test any items claimed to not be functional.  YOU should pay for it and have it fixed right away, before they can repair and deduct from the rent.  Why?  Because they may exaggerate the amount of time/work it cost to repair those items, or maybe exaggerating that they are in disrepair at all, possibly making things up, etc.  If your handyman goes out there and fixes everything that needs to be fixed and takes pictures of everything, it's typically a better position to be in rather than letting the tenant dictate the repair/deduct arrangement.

FHA definitely still has credit requirements. I cant remember the exact number, I think its 580 for the 3.5% down payment program. Talk to a local lender about the specific credit requirements for FHA.

Conventional lenders will likely not lend on purchase + rehab (like a FHA 203k type of loan) for a non-owner occupied property. Some hard money lenders will.

Owner occupied rehab loan programs include FHA 203k may in theory work for a multi-unit but keep in mind they are very complex and long processes, require expensive lender-required contractors, and of course you have to live in it. I can imagine most lenders would not want to do such a thing on a multi-unit because underwriting will likely not believe you will really occupy the property.

This may be location specific even within the state, but my understanding is that, without cause to evict (non-payment of rent, etc) 90 days notice is required for Section 8 tenants.  90 days sounds like a lot, but the plus side is that it gives the tenants plenty of time to leave peacefully instead of digging their heels in.  The more time they get, oftentimes the less likely they are to cause issues for the landlord.

Marketing for wholesales in Los Angeles is tough to break into, its a very investor-saturated market.  Consider outlying counties, central CA, etc.

Yes, I rent out 2 bedroom 1 bathroom homes in my market all the time.  But Cali is a pricey market so small homes are common. Definitely depends on the local market.

Rereading OP's post, I would suggest running this arrangement through a loan servicing company that has a licensed mortgage broker experienced with hard money.  Nothing I'm aware of bars attorneys from drafting, reviewing, and advising on promissory notes, but loans used for household purposes typically now require it to be finalized through a licensed broker with specific disclosures.

A local real estate attorney can draft you a note and a security instrument (deed of trust, etc) for this lending arrangement.

It would be good to have a loan servicing company handle calculating/collecting payment for a small fee (like how property management companies manage your rentals for a small fee).

I've been practicing real estate in Bakersfield for 10+ years and have used many different inspectors.  @Gene Hacker is my go to inspector in Bakersfield now.  He's very thorough, uses high tech equipment, and is overall the best I've used.  PM me or him directly if you'd like his contact info.