Just another WordPress site
I’ve heard that if you buy using an entity, you don’t have to pay some great, big witholding tax (from California)?
Questions regarding tax should be directed to your tax person, or attorney. I do not give legal tax advice.
http://www.ftb.ca.gov/forms/06_forms/06_593bk.pdf
When a house has an unpermitted room or addition, does one still purchase it and how does one handle this situation?
This is a complicated issue. Typically, you’d want all the square footage in the home to be permitted. However, it has to do with the quality of construction, compliance with building codes, if it’s structurally sound and safe, how it will affect your financing such as, whether your intention is to keep it and rent it and refinance it in the near future or whether your exit strategy is to flip it immediately and expect the buyer to get new financing, and whether the code enforcement office has already red tagged your house and wants you to tear down the illegal addition or if illegal additions are typical for your market.
Does the original owner reserve any rights of regaining ownership?
-Student
Whether an Owner/Seller has actually reserved any rights has to do with how the actual sale was consummated and whether the law was violated in the process. The law that governs how to approach a seller in default in California is extremely specific and detailed and if you intend on pursuing sellers in default I strongly urge you speak with an Attorney who specializes in this area before attempting to do this on your own. The California Association of Realtors CAR) has a purchase offer form called, “The Notice of Default Purchase Agreement” which highlights the items that must be addressed. Also Tuesday Forms sells a an offer form that is also customized for this specific use.
Having said all of THAT, I must warn you, this is a highly sensitive area of real estate especially inside this real estate storm we are experiencing. government agencies, as well as, lenders are extremely sensitive to protecting Homeowners’ rights because it is being perceived as being politically correct. Their regulations, restrictions and (protectionist) laws are going way beyond anything we’ve ever seen before in the real estate industry. Keep in mind that just because something is legal, it may not be perceived as fair and prudent by controlling government agencies or by the courts.
-TA
Since you are a Licensed Realtor, are you restricted in any way when you are flipping and profiting from a property that is a Foreclosure or Short Sale?
-Student
This question is somewhat difficult to answer because it’s a lot of questions in one. So I will break this down as best I can.
The first part of your question assumes that I function as a licensed realtor. First of all, I’m not a realtor. Not all agents and brokers are realtors. The title realtor simply means you belong to an association, such as The California Association of Realtors (CAR), and agree to follow certain guidelines and code of ethics that are recognized as being somewhat more strict than the norm. While I do hold a broker’s license in the state of California, I have never represented any other individual or entity except those controlled by me. Therefore, the question of potential conflict of interest is moot.
I am only required to disclose that I am a licensed broker in the state, in addition, I include that I am purchasing the property as an investor with the intent for profit.
Typically, real estate agents and brokers functioning in that capacity (representing buyers and sellers) are restricted from buying their own listings or participating in profiting from a seller in distress as they owe that seller a fiduciary obligation. This is a highly sensitive area in the real estate business, especially in today’s volatile market with such a high number of individual owners in default.
-TA