All Forum Posts by: Max Gradowitz

The standard forms are used for commercial and residential properties.  The CAR commercial purchase agreement is a little different than the CAR residential ones, but in either case you can use the CAR forms. 

Your agent should have requested a "tenant estoppel certificate" during escrow.  This is a normal and crucial step in virtually every sale of tenant-occupied property.  The landlord/manager and the tenant both sign (in CA at least) and it guarantees the existence of a lease, it's terms, and stops anyone from later claiming any other lease or lease terms exist.  It would NOT be smart to ever purchase a tenant-occupied property without a tenant estoppel certificate signed by the tenant.  These situations are why it's important.  If you don't have a tenant estoppel, then you are likely bound to the current renewed lease terms.

I would suggest finding a real estate attorney that is familiar with drafting custom purchase agreements.  They can draft one up for you entirely.  Or, as you mentioned, if you already have one that you'd like to use, you can ask an attorney to do "doc review" for you.  I do this all the time for investors trying to save money by using their own purchase agreements for off market transactions, and it saves a lot of money because the attorney will simply review it and recommend any changes for a very small fee.

Truth be told, I've noticed that escrow companies prefer the standard CAR form that Realtors use, and I've had troubles with escrow companies trying to interpret custom purchase agreements in the past.  So choose your escrow company wisely if you go with the custom purchase agreement.  I've noticed that it's usually best to find a real estate attorney who can modify the CAR purchase agreement to fit your needs for a small fee.  That way you get the same service done for likely the same low price (much less than a Realtor commission would be), with the additional benefit that everything is easy on the escrow company.

Ask for a copy of the rent records.  That will show you when they pay, and YOU can determine whether that is "on time" or not.  It will show you repair deductions, so you can get an idea of whether the tenants were constantly breaking door knobs, doors, faucets, etc or whether the repairs look more like non-tenant caused problems like electrical or roof issues.  These records provide you a lot of info, and do not require the management company to give you opinions about the tenant that for legal reasons they would not want to give you.

One last thing, they are a private company that, as far as I know, has no legal obligation to provide you with any info at all.  So the fact that they responded at all should be appreciated.  If they are super nice, they may provide you with the rent records, and that is what I would try to get if I were you.

I have several clients that have purchased "turnkey" properties from sellers that buy dilapidated properties and fix them up as cheaply as possible, cutting as many corners as possible, in order to maximize their profits.  When the buyer purchases the property and rents it out, everything starts falling apart.  The tenants complain to the property management company who takes care of it but it eats into the cash flow. This is a very common problem I see - where the landlord doesn't get the first 1 or 2 months of rent because of a negative balance on their account with their management company.

People here are quick to say your property management company is ripping you off.  Because of my experience working for a very reputable property management company in the past, I've seen this before plenty of times.  If you are confident with your property management company, which you SHOULD be if you did your due diligence in choosing them, I wouldn't be too worried about this because I've seen this plenty of times.  If you are really upset, just ask the management company for copies of everything: your account ledger, invoices for repairs performed, etc.  

Under contract.  Still accepting backup offers!

Thanks for the shout out @Aaron K.!  If I understand the question correctly, you are asking whether the existence of a promissory note voids what would otherwise be a "gift" for a loan down payment?  If so, that's more of a lender question than a legal one.  You will have to run this by your lender and see if they will accept a down payment that is a loan in of itself.  I'm not a lender, but my guess is they will NOT accept that.

Although it's a lender question, it COULD be a huge legal problem for you if you lie to the lender and say your deposit money was a "gift", when in fact you know it's a "loan" that has to be paid back.  Google mortgage fraud if you want to know about the dangers of lying in order to obtain a loan.  Tip of the day: don't do that!

Still available

Perfect flip or BRRRR opportunity in Bakersfield, California. 2 bedroom 1 bathroom home in a middle class neighborhood. No major known issues, just needs cosmetics like new flooring, kitchen remodeling, paint, etc. ARV when remodeled = $125k to $135k. Market rent ranges between $750 to $850 a month depending on the extent of the remodeling. Pictures below.

Email me at [email protected] with any questions or offers.  Seller prefers cash offers with a quick close.

If the "last day" is on a Sunday or major holiday, yes you want to wait a day or two to file it until the court is open.