Three Things to Know Before Flipping a California House

property developmentPopular shows on HGTV have made the idea of flipping houses for profit seem like an easy task. However, before you begin investing in property development, it’s important to understand the flipping process, particularly if you have never bought a house before. If you’re serious about renovating houses for profit, begin by seeking out a real estate lawyer or real estate law firm before considering buying a house.

A real estate attorney understands property development laws and laws concerning the area in which you may decide to flip a house. Unbeknownst to you, without the presence of a real estate lawyer you may accidentally purchase a home within a zoning restriction.

Once you’ve found a real estate attorney, it’s time to begin the process of flipping a house. The following are some tips to begin you on your house-flipping journey.

  1. Choose the best area to flip a house
    Potential homebuyers are more likely to choose a house that doesn’t meet all of their wants and needs if it’s in a good neighborhood. Therefore, before you begin looking at houses and property development, get a good feel for the neighborhood. Talk to people about the school systems and do your research on the average crime rate. Looking at the average prices of the houses in the area will also tell you how likely it is you’ll make a profit.

    Unless other houses are also being renovated in the neighborhood and are being given a new face, don’t choose an older neighborhood without much class to do your renovation. There’s a big chance you won’t make a sale.

  3. Know who you’re buying from
    If you’re looking into older properties, there may be a chance that you’ll be buying the house from the California government. Title 10 of the California civil procedures declares properties that have been abandoned as unclaimed. When a property remains unclaimed for three years, the California government then claims the property.

    Therefore, when looking at older properties be sure who it is you’re buying the property from. There may be a chance that you need to purchase the property from the state government itself.

  5. Do inspections
    Your real estate lawyer will urge you to have an inspection done on the property before you decide to purchase it. If you can, have a professional come in and inspect the property for any damage to the flooring, base structure, roof, electric, or water systems. In certain cases, you may not be able to identify particular damage even with an inspection, which is why renovations can be incredibly taxing on one’s budget. However, if the homeowner allows it, an inspection doesn’t hurt to see if the property is really worth your while.

When deciding to go into the business of flipping homes, it’s important to understand the business and real estate side of the process rather than just the design standpoint. A critical mistake such as choosing not to use the assistance of a real estate attorney, buying a home without analyzing the neighborhood, and failing to know who owns the property or failing to perform an inspection can lead to limited sale possibilities if you even manage a sale at all.

Understanding the Eviction Process in the Los Angeles Area

eviction processIt’s important to understand the eviction process in the state of California if you intend to evict your tenants in the Los Angeles area. To begin the eviction process, you must provide your tenants with a series of notices including a 3-Day Notice To Pay Rent or Quit and/or a 30-Day or 60-Day Notice To Vacate.

Los Angeles County is a rent controlled area and therefore it must be known that your 3-Day Notice To Pay Rent may need to be preceded by a Certificate of Registration and a Rent Stabilization Ordinance notice in order to be considered valid.

As a landlord, you are able to file an eviction lawsuit in the form of a Summons and Complaint against your tenant if the tenant does not pay the claimed amount of rent by the end of the 3-Day Notice. However, let it be known a mistake must not be made on the Summons and Complaint by any means. Even the smallest of typographical errors can nullify an eviction notice and cause the landlord to lose the eviction process and case altogether.

When the eviction lawsuit has been filed successfully, the tenant must then be served by the landlord with the Summons and Complaint. After the tenant has been served, a Proof of Service of Summons must be filed by the landlord after which the tenant has five days to answer if personally served and 15 days if they were subserved.

In the event that the tenant has successfully answered the complaint within the established amount of days provided, a Request for a Default may be filed by the landlord. After the default has been filed (two of which must be filed, one on the tenant and the other on others in possession), the landlord must submit a Request For A Clerk’s Judgment followed by a Writ of Attachment.

Over the course of the eviction process, be sure to keep in mind which contracts must be in writing and which can be in print. In the state of California, the Statute of Frauds requires three specific contracts to be in writing: contracts for the sale of real estate leases for more than a year, and any commission agreements between real estate licensees and principals.

Another thing to bear in mind is how the eviction process may differ in the act of foreclosure. Therefore, to ensure you as the landlord are proceeding with the eviction process of your Los Angeles tenants correctly and efficiently, you may consider hiring a California real estate lawyer. A real estate lawyer will be able to catch any typographical errors during the eviction process which may otherwise nullify your eviction and therefore lose your case. Additionally, a real estate lawyer will be able to determine if your tenants’ residence is in a rent controlled area and thus may require ulterior paperwork.

During the eviction process, be sure to keep your tenants informed with the correct notices and to steer clear of any behavior which may otherwise be interpreted as harassment. Any mistake on your behalf may very well result in the loss of your case.