All Forum Posts by: Max Gradowitz

This is why an experienced property management company is worth the small cost they charge. They keep updated with all the current moratorium restrictions (which have been changing every few months) and can serve the proper notices and have connections with attorneys that can start the eviction proceedings if it ends up getting to that point. My understanding is that if you have "cause" to evict, like a breach of the lease terms, you should be able to serve a 3 day notice to cure based on the cat situation. You used to have "good cause" for not paying the full rent amount, but right now the moratorium makes that really complicated. Anyway, if they get rid of all the cats within 3 days, you might be stuck and have to go through a "no cause" which will require a lot longer notice period, but if they don't get rid of the cats in 3 days, then you should have grounds to evict at that point.

Unless you have a good property management company already, I would suggest speaking with a local lawyer that specializes in evictions. They need to be local to the property because they may need to appear in court if it gets that far. But essentially after proper notice is given and not cured, you can file the "unlawful detainer" paperwork, serve that properly on the tenant, go to mediation if your jurisdiction requires that (mine does, it's mandatory and eliminates 90% of cases going to trial), then go to trial if it's not settled and they haven't moved out yet. Most of the time, they'll move out somewhere in the middle of this whole process and you just drop the lawsuit and everybody moves on with their lives. Good luck!

If you plan on buying in CA, are you limited to the OC area? If so, properties there are expensive and oftentimes don't cash flow. If you are more flexible with the location, 2-3 hours north you can find something much more affordable that can cash flow. But in any case, if you own something out of state, definitely use a property manager.

There is a lot more to it than most people take into account. There is a cost to the initial education requirements. I can't remember how much it was to take the salesperson education requirements, I took mine over 10 years ago, but you should look into that. Then, the dues. My local association costs me a couple hundred bucks a quarter, so that's nearly a thousand each year. You can call your local association and ask them what their due costs are. Also, you want to be able to open lockboxes to show yourself properties, right? That's an additional monthly cost (at least with my association). Then, you have to hang your license under a broker in order to use your license. Most agree to a split of your commission when you work under their license, some agree to only a monthly desk fee. If you aren't actually practicing regularly, but only using your license for your own occasional investment purchase, you might end up where the only type of broker that will accept you will be a desk fee type, which is another cost you should account for.

I'm not trying to talk you out of it. Run the numbers and see if it makes sense to you. In fact, like @Nick C. said, you could use this as an opportunity to get into practicing RE as a part time gig, making it financially worth it. All I'm saying is 90% of the time, it doesn't make financial sense to do what you are describing.

LLC? No real benefit that I can think of, and it will be more difficult because most regular loan programs will not lend to LLCs.

1031? You'd have to ask a CPA, but I think you have to hold on to the property for a long time. 1 year I think. Don't quote me on that timeframe.

FHA? Definitely not. FHA requires you to live in the property for at least 1 year. You seem like you don't want to live in the property at all, nor hold on to it for longer than a year. Non-owner occupied (aka I do not intend to live in the property) loans are typically 20% or more down conventional loans.

FSBO? Yes, of course. In fact, I often do this for my clients. Iron out all the terms, have an attorney draft up a purchase agreement for you for a few hundred bucks, and then give it to a title/escrow company and they will take care of the rest.

The law requires you to give a written (not oral or email) 24 hour notice of any entry. Just talk to them, explain the notice requirement to them, and ask them if they are ok with you posting a written notice (so you are abiding by the law) and texting them as well (so they know) 24 hours before any showings while they are on vacation. If they say yes, then just do that. Simple.

Yes, this is correct. Even though the LLC and property are in another state, you live here and therefore CA considers you to be "conducting business" in CA.

It would be good to know where you are located. Do you want to invest exactly where you are at? Within a few hours drive? Or anywhere at all?

Talk to an attorney familiar with JV structures and have them draft up an agreement. Everyone's rights and responsibilities need to be in writing to avoid arguments and confusion.

In my area of California, title and escrow is always handled by one company. Sometimes they are called a title company, sometimes they are called an escrow company, sometimes they are called blah blah blah title and escrow. It's all same either way - a company that handles the transfer of title, provides title insurance, and handles the deposit and distribution of funds.

https://cal.lawsoup.org/legal-...

This is a good article on areas in CA that have bans/restrictions. In general, it seems to be high density cities and popular recreational areas that tend to have restrictions. I would suggest looking into recreational areas (lake towns and mountain/ski areas for example) that don't have these restrictions.