All Forum Posts by: Wes Blackwell

@Brad Cogswell,

Sounds good. Let me know before you're headed out here and we can grab a coffee and talk shop.

@Matt Leonard,

Condos can make a good rental, but the biggest concern is the HOA. If you have one, which most do, they hold complete control over what you can do with the unit.

If one day the complex changes hands, or someone gets promoted in the HOA and wants to make a name for themselves, all they have to do is decide all units have to be owner occupied and no rental units are allowed, and you're screwed.

Beyond that, they could simply increase the monthly dues and sap all the cash flow out of the deal. I try to advise against condo rentals, especially for beginners, because of these reasons. Too much power over your wallet is placed is someone else's hands.

A lot of people here have recommended smaller towns around Northern CA, but remember that your tenant base will be smaller and the rent checks will most likely be smaller too. You might go a long time between tenants if either side goes vacant, and that will absolutely kill your cash flow for the year and can be the make or break difference.

Buyer beware, and as the other posters suggested wait to save some more money to get into a fourplex or try buying out of state. Best of luck!

Only one listed on Metrolist MLS:

440 Leitch Ave, Sacramento, CA 95815

"INVESTOR SPECIAL for this duplex in need of some repairs/updates, but priced well! Each unit IS 1 BED/1 BATH NOT ATTACHED UNITS. GREAT INCOME POTENTIAL WITH ROOM FOR improvement. This short sale property is located across from the park/bike trail and close to freeways, downtown, and shopping."

:-/

@Chris Music,

A buddy of mine named @Tim Kunz is an investor friendly contractor. Reach out to him and hopefully you two can connect and do some business together. Best of luck!

I have an older client who is about to purchase some rental property in California (a duplex) with another co-owner, and would like to leave her share of the interest in the property (50%) to her 4 year old granddaughter should she pass away unexpectedly.

o_0 

I know right... this will be fun getting set up lol

Anyhoo, looking for what options she has and what's the best way to set this up to take title to the property?

I've researched a little into it and it seems like taking title to the property in a trust is the best option, and the other remaining living owner can be set up as a trustee or property manager to manage the property until the granddaughter reaches adulthood.

It would be easier to leave it to her son who is the granddaughter's father, but he's a total friggin jerkface, so that just flat out ain't gonna happen. She wants him having no control of it whatsoever.

Here are my big unknowns:

• Can the remaining owner sell the property before the granddaughter reaches adulthood? What happens if it burns down or some other radical insurance claim?
• What happens with the rents collected after she dies but before the granddaughter becomes an adult? Who do they belong to? How are they split?
• Do the rents belong to the property manager or other co-owner solely? 
• Or are they split in half and part of the money is stored in an account somewhere to be given to the granddaughter when she reaches adulthood?
• If you're an estate planner or an attorney, how would you recommend setting this up? We will be probably doing this in the next three months so I need to make arrangements.

I know most anything is possible depending on what's arranged within the trust, and ultimately we'll just have to speak with a lawyer, but just trying to get some general guidelines so I know what protections my client has and what are the best options. Thanks!

@Anderson Lioyn,

You'll at least need a business license, and your local city and county might require additional licensing or special permits as well.

This question is better reserved for someone who works for the local and or state Government and can answer your question directly.

I would start at the sites below and poke around until you find an answer or go ahead and give them a call and they should be able to direct you to the appropriate department.

http://business.ca.gov/StartaBusiness/Registeringa...

http://business.ca.gov/StartaBusiness/Registeringa...

https://www.cityofsacramento.org/Community-Develop...

https://www.cityofsacramento.org/Business/Starting...

Plus, since you seem to be at the beginning of your Hotel journey, here are some references for running hotels that may answer all the questions you'll ever have better than we investors and agents can. 

http://www.amazon.com/100-Tips-Hoteliers-Successfu...

http://www.amazon.com/Cornell-School-Hotel-Adminis...

http://www.amazon.com/How-Run-Great-Hotel-Everythi...

Best of luck!

@Anderson Lioyn,

Welcome to the site! You have much to learn and are in the right place to get the right info that will help you reach your dreams of moving to Sacramento (where I'm from) an opening a hospitality business.

There are a couple articles here about the pros and cons of getting your real estate license when investing in real estate. Here they are:

Is a Real Estate License Necessary?

Investors: Should You Get Your Real Estate License?

3 Benefits to Getting a Real Estate Agent License

Having a Real Estate License as an Investor

6 Reasons You Should NOT Get Your Real Estate License

Those articles will tell you everything you need to know to answer your question. Best of luck!

@Eric Odum,

I know that the owner isn't likely to be the occupant, and that I can look them up through the Secretary of State's website, I'm just not sure how to approach the owner...

In residential, the owner might be working with their mortgage company to keep it, sell to an investor, or have me list the property for them to sell on the open market.

I don't work with commercial property, so I'm not familiar with selling that kind of real estate (which I think is the only potential benefit for me reaching out to these leads, although their personal residences might be in trouble too).

Maybe I should team up with another agent in my office who sells commercial real estate and see if we might be able to work out a deal together or be co-agents.

So, I specialize in working with pre-foreclosures, and while 99% of Notice of Defaults are residential properties, every now and then a commercial property comes along.

Auto sales, office building, restaurant... you name it, I've seen it.

But, usually it isn't the name of the business that's in default, it's the property address.

EXAMPLE: 9337 HORTON ST LLC / NINETY THREE THIRTY SEVEN HORTON ST LLC

Which makes me think that it's the building owner that's in default, not the actual business that is operating out of the building.

(But perhaps the business operating out of the location is failing too, and that's why the building owner is in default!)

Was wondering if anyone might have any experience in capitalizing on this sort of scenario. Reach out to building owner and offer to buy it / sell it?