All Forum Posts by: Account Closed

A signed, notarized letter (affidavit) from your brother pledging the family loan and attached to it  his VOD (verification of deposit).

VOD is most usually a copy of a recent bank statement.

Proof of Funds nowadays has become a joke as many 'lending partners' are selling them left and right to 'investors'.

Not legal advice, jmo experience.

PS - if you require his approval after you land a deal then you do not have cash available til (contingent!) he approves (which sounds very iffy). 

Good bro, good  luck!

And the CA/CSLB moral of the story is.. if you want to take on a $500 or more project, get a license that authorizes you to do so, Mr. Handyman/wanna-be Contractor! 

As for my lesson learned, many thanks to Manolo! Manolo, I'll be doing work SOLO as builder-owner till my license in this crazy state materializes. Afterall, it is my property, so at least they aren't going to block me from 'paying myself' (saving) whatever it is per job I have been paying Mr. Handyman Jr *just* because I felt sorry for him not getting any work with his dad these days cause his dad continues to masquerade as a (licensed) contractor and quoting 'contractor' prices as if he's insured and everything, when he's not.

If I do not incorporate but just wait for my contractor license to go thru (the business name they require applicants to chose on the CSLB application is in my case, simply my first and last name, as that's how I did biz in NY as a GC) do I still have to pay FTB $800/yr, and even if I dont do business my first year?

Would probably only incorporate if my app never goes thru; I just submitted the additional documentation and its so weird their hotline only seems to allow a caller to talk to a live person ONLY if they are calling to report someone contracting without a license!

Well said, Fred! 

So, requiring large deposits on apartments makes the property more 'secure' while rented, but avails not a penny of the security deposit amount to the landlord in most all of USA. Most states require the landlord to provide a security deposit receipt that lists the name and address of the particular bank the deposit will be held at (it can't be spent). 

Many states impose severe penalties, like if the tenant goes to bank with receipt to make sure the full amount is still in deposit, if it is not the tenant is entitled by law to recover via court order, double or triple the full amount plus attorney and court fees! Of course, this varies from state to state. 

Plus, USA's most densely populated state - NJ - requires all landlords to deliver the interest generated from the security deposit either as credit toward the amount of rent due, or at least annual delivery of the interest money directly back to the tenant. NJ landlords can skip paying at least annual interest only if they occupy the building and it has 2 or less units, other than the landlord's unit, but even in those small owner-occupied rental buildings, tenants must be paid interest at least annually by simply asking for it.

NY also has somewhat similar rules.

It does seem that in most states, landlords can't even use some of the deposit to make repairs or just debit late rent while the tenant still occupies; it requires notice to quit or and other such formal paperwork before landlord can even touch the deposit even though the landlord is holding it 'in good faith', until the moment tenant moves out and even then repairs and deficits must be itemized via written notice. It's all complicated but the long and short of it is that apparently unlike in S Korea, landlords cannot use security deposit for anything until tenant moves out and only with proper notification and itemization of repairs/arrears.

Build credit- - and savings - so you can be approved later on for incrementally bigger loans and smaller down payments, which means more capital to 'invest' widely.

Yep like others may have mentioned above, if there is no language in the contract prohibiting assignment/sublease then you can but you will be held fully liable for 'your' tenants as if they were you!

I don't believe illegal activity is limited to Criminal activity; Civil disobedience can also be illegal.

 Oh, I see. So much for the idea of hiring independent contractors and paying the flat fee they quote per project and having them do it on their *own* schedule and with *no supervision* other than being there to help them not get injured while on one's own property!

So I take it, in California,  an independent contractor that does minor work doesn't really exist then, unless he's 'licensed' by CSLB then he can quote the sky is the limit. Which brings me back to the enigma as to why CSLB even bothers providing for small work under $500 in materials+labor per project o be done by 'unlicensed' - to me it implies they are contractors as long as they are putting a pricetag on the labor as opposed to be asking for a certage hourly wage.

My way of recording and reporting wages paid to independent contractors/laborers has so far always been (for the past decade) to issue a 1099-MISC to anyone who I paid $600 or over in the past year. I've never paid anyone other than per-project, ever. If this method of paying for help around my homes isn't legally sound in CA, I will have to change my ways. 

The easiest way is just do it all myself.

The other option which might be cheaper in the long run is to hire one (only 1) employee to work on my own properties (am a 'builder-owner until CSLB license issued) and pay for WC insurance which I hear is what, $4 per $100 payroll issued?

It would be way cheaper via employee than independent since I'm doing roughly half the work anyway, for example if I had accepted Mr. Handyman's $500 quote for painting house exterior labor only, I would still be doing half the work/painting anyway so why not hire someone with WC, pay them $11/hr and save lots of money that way. I mean, look at all the replies in this thread simply stating $500/labor to paint a house is cheap. It sure is!  But again, CSLB laws REQUIRE that $500 be paid only to a LICENSED contractor, NOT to any body else even if it was the neighbor or the neighbor's adult son that could really use the cash. I can only imagine how much this area's licensed contractors would quote me (a builder owner) just to paint some stucco... $5,000 maybe?

As for this house time, to get out there and start painting by 8am! Neighbors, aren't they awesome! =D

PS- I do think having any worker sign off (like you do) on the project once completed, agreeing they finished and thus no work is no longer left for them is simple and solid. However does it really have a standing at unemployment hearing once the worker claims he/she was given projects one after another for months on end and suddenly they stopped being needed? Sure hope so. 

By the way, isn't even an hourly helper that is 'hired' also under some level of employment 'contract'? 

First thing to check is zoning. Cant turn a SFH in R-1 into a 2 fam, can ya?

Bragging rights, at least. But more and more, to 'teach' in order to build their own 'capital'!

Obviously using their own methods ONLY helps soo much =D

https://www.biggerpockets.com/forums/50/topics/746...

See above. Apparently there are currently no laws in CA prohibiting making ur offer/contract to purchase contingent upon assignment-- assuming that is indeed declared in writing!

Yup what a shame and hopefully lesson learned; as Steve points out, the bare minimum for a PM should be at least a RE license (depends on state though).