All Forum Posts by: Max Gradowitz

https://www.upcounsel.com/cali...

I have a person who's really good. I'll message you his info.

1. Estimate the current value of your property.

2. I believe the highest LTV requirement for an equity loan is 85%. So you can borrow against the amount of equity you have past that 85%. For a simple math example, if your property is worth 1 million (and therefore 85% of that is $850k), and you still owe $500k on your current mortgage, you can get an equity loan of up to $350k. That's the difference between 85% of your property's current market value and what you currently owe on your mortgage.

Well, this is a complicated question to answer. It could take a few minutes and virtually no cost, or a few months and a few thousand dollars. You absolutely should retain a lawyer for this if you've never done this before, the eviction process is complicated and if you mess up something small you can have to start everything all over again.

I have a similar story, but in reverse. I did RE sales full time until going to law school. After getting my law license, I practiced law full time and did RE on the side for a couple years. Then, I decided to get my RE brokers license and started a small brokerage and a small team. I manage both practices now.

As far as your questions, I think finding a small boutique brokerage that will accept your situation is your best bet. I could be wrong, because I've always worked for small brokerages, but big box places seem to be looking for someone to give them lots of daily training, a desk in the office, etc. I would suggest looking for a small brokerage managed by a broker that will have the time here and there to answer any questions you have. I honestly don't think anyone will find your law license more appealing, they really just want someone who will make the office money. As far as time limitations, I don't think that's a big deal. Most people want to view properties after business hours and on the weekends anyway, but just make sure your clients understand your situation.

Good luck to you however you make this work. Feel free to message me anytime if you have any other questions or want suggestions.

This is correct. I should have clarified, you have to register your out of state LLC as a foreign LLC in CA, and pay the CA LLC tax anyway.

I'm in CA and the most common LLC-related question I get is "I live in CA, I want to buy properties in other states, what state should I open an LLC in so I can save money?"

I don't know what state you live in, but if you live in CA and own rentals anywhere, you have to have a CA LLC. In CA, you are legally required to have a CA LLC if you are "conducting business in CA". Even if you own a property in TX, you are conducting business in CA because you live here, collect the income here, etc. If you do have a TX LLC just to hold a TX property, you still have to register in CA as a foreign LLC, which still means paying the CA LLC tax. So there's no point in having an out of state LLC in that scenario.

I would imagine other states have similar laws, but I do not know for sure. You should consult a business attorney in your state regarding this. But my point is that it's not as simple as just finding the cheapest LLC state and opening an LLC there just to save money. There are no free lunches man.

It needs to be a lawyer licensed in the state that the property is located. They do not have to be local to the Bay Area at all, just licensed to practice within CA. Definitely find one that is familiar with RE transactions.

Ask your lender about low down payment programs. FHA 3 to 3.5% down is popular for house hacking. Then account for an additional few thousand in closing costs. That's the very minimum to purchase, but you should also have some reserves for repairs that you may have to pay for shortly after moving in.

You fill out a purchase agreement, send it to a title company, open escrow, buyer sends EMD to escrow, seller provides all disclosures to buyer as required by law, buyer does their due diligence and eventually releases their contingencies, and eventually both parties sign final docs with escrow company and escrow closes.

If you have to ask about all these procedures, it is best to get assistance. Realtors are experienced in handling all these procedures, that's what you pay them for. If anything, at least pay an attorney a small flat fee to do the paperwork and explain all the procedures and required disclosures to you so you don't end up in a lawsuit down the road.