It’s not as if the Bay Area tech industry is going the way of Detroit’s auto industry anytime soon...And, as soon as prop 10 fails to its (deservedly) miserable death, you’ll feel a lot better too!

Usually if there is a listing broker involved a large part of their compensation goes towards your agent so you typically aren't adding much of a line item expense to LL.   3) For the building to be approved for licensing, we need to split the bathroom in the front office into 2 and add a door in the first office into the new bathroom.

Items 1, 2, and 4 will come from the State when you register your LLC or corporation.The resolution for LLCs is usually in the form of an "operating agreement", which is a pretty simple document outlining who owns the company, who can sign documents and enter into contracts, what happens upon the death of an owner, etc.

I'm thinking buying an option from him or setting up a lease-option could be win-win, since (1) he is being forced into being a landlord, and probably doesn't want to deal with being a new landlord on top of dealing with his parents' recent death, (2) he could probably use some cash now to deal with expenses of rehab costs, funeral costs, inheritance taxes, etc., (3) higher monthly cash flow for him from a lease-option, (4) he would have the peace of mind knowing either he will get an offer on the place when it's time to sell, or if not, at least I will have increased the value of the home.  

Hi Mark,So what I gathered was that they were trying to liquidate the property as fast as possible due to some unforeseen circumstances..ex death, divorce, etc...

I'm new to the investing side, so I am speaking as a business person here.Greg is right about any family coming in to overturn the deal, be sure you understand who will swoop in after her death and try to get the property and your deal overturned.If you are in no hurry to get into the property, then maybe you can structure the sale in one of the following ways: (1) possibly a sale at a fair negotiated price, with a leaseback provision, (2) sale at a fair negotiated price, where she carries the financing so you pay her a monthly installment and she can afford the assisted living facility, or (3) have an attorney create an agreement of sale that you and she negotiated a price and if that agreed upon price is at least, say 80% of FMV on the date of death, her heirs must honor the agreement and sell to you at that price, or give you a first right of refusal to purchase the property for say 80%, of FMV on date of death. 

Any wild event in their life like a divorce, death, money trouble, etc, could cause those years of relationship to instantly vanish along with my and my client's money, and so many times there is no recourse even if I were to sue and win.

There is significant equity in the property, that's why I have a death grip on the deal.If buy and I take the defaulted note to trustee sale, someone can over bid my opening bid.

Then I may need you guys to help me find another forum for faking your own death.

It was an unexpected death and so everything is going through probate since there is no will.Because I have siblings, the house will get split three ways with my siblings.