Can your bottom line be affected by a resident manager ?  You bet it can..! Many Landlords place a resident On-site manager in their building and assume as long as the rent is being collected, everthing else is going smoothly as well.  Or perhaps they just don't want to know.  Either way, don't hide your head in the sand and put your investment in someone else's hands unless you know for certain their hands are clean.  

There ae several ways your building can be monetarily affected by on-site staff.  If a tenant is treated rudely, unfairly or made to feel uncomfortable by your resident On-site manager,  they will seek somewhere else to live.  If maintenance requests aren't handled promptly, tenants will eventually get fed up and move.  We can't always escape turnovers and vacancies, but preventing them due to one of the above reasons becomes your responsibility.  

If your manager is not available to answer the phone or to show vacnancies at the applicant's request, ( exactly the way the landlord next door hopes), ther prospective renter will continue down the list until someone willing to answer his/her call.  

Prospective tenants judge your building by your resident on-site manager.  People attract people, if your resinde tmanager is professional and efficient, those are the kind of tenants that will be attracted to your building.  On the same token the flip side often holds true, is proper screening taking place?  Are exception being made?  Are good-paying, long term tenants suddenly deciding to move?  These are all things to factor into your evaluation of your resident on-site manager.

Also, remember that a landlord is liable and legally responsible for all actions of their resident on-site manager.  Improper training and one wrong question by a Fair Housing " shopper" could cost your a bundle.  People are people and anyone can become lag in fulfilling their responsibilities.  They cut corners, express frunstration to maintenance requests or just simply show signs of "burnt-out". It is up to your to nip these things in the rear....!

Delegate but remain in-charge and course.....remember...your are still the LandLord...do what landlord does...supervise your own properties....

What investor need to know about acquiring short sale property.

In recent days, I noticed more and more of inventories are short sale, at the same time more and more of buyers are investors.  Many of the investors are individual base buying as rental property.  However, new law that affect short sale transaction, specifically non-occupy owner.....thing like seller could rescind the property.

Please see below for the update that you need to be aware of when considering a short sale.  With many changes ...it is more than ever you need proper presentation in order to receive the proper protection.

Law Offices of

Vincent MacIsaac

502 West Route 66

Suite 21

Glendora , California   91740

Telephone: (626) 914-4811

Facsimile: (626) 914-7409

macisaaclawoffice@verizon.net

LAW OFFICES OF VINCENT MacISAAC

LEGAL SERVICES PROGRAM

                                                SOME PROTECTION FROM YOUR CLIENT INVESTOR

IN A HOME EQUITY SALES CONTRACT

            The Home Equity Sales Contracts provisions of Civil Code Sections 1695 – 1695.17 subjects the investor/purchaser to a two year potential for rescission of the transaction if the Court finds that the investor/purchaser took unconscionable advantage of the property owner in foreclosure. The Home Equity Sales Contracts provisions apply to residential 1-4 units in which the Seller occupies as his residence, the Buyer does not intend to take occupancy (an investor), and a Notice of Default has been filed.

             Many short sales are in foreclosure.  Agents are representing investors in a number of these transactions. The Selling Agent representing the investor has a fiduciary duty to make the investor aware of the law and its many pitfalls to investors. The two year Right of Rescission based on unconscienability is only one of the pitfalls contained in the law.  C.A.R. has available a Q&A entitled “NOTICE OF DEFAULT INVESTOR – BUYER TRANSACTIONS: HOME EQUITY SALES CONTRACTS”. This should be provided to the investor by the Selling Agent.  Also, the C.A.R. BUYER REPRESENTATION AGREEMENT, form BRNN (Non-Exclusive/Not for Compensation) should be signed by investor and agent.

             Finally, use the attached INDEMNITY ADDENDUM TO BUYER REPRESENTATION AGREEMENT. This document identifies the Selling Agent company on the blank on line 1 and identifies the document as an Addendum to the BUYER REPRESENTATION AGREEMENT. The second paragraph explains that the transaction is subject to THE HOME EQUITY SALES CONTRACTS provisions. The third paragraph contains an acknowledgment of receipt of the above-mentioned C.A.R. Q&A., and advises the investor/buyer to consult with an attorney and tax advisor. The fourth paragraph contains a Release and Indemnity provision in favor of the Selling Agent due to the risks involved as an investor in this type of transaction. Finally, the last paragraph is a standard advisory to have an attorney review this Addendum itself.

- Vince MacIsaac -

                                                INDEMNITY ADDENDUM TO BUYER REPRESENTATION AGREEMENT

1._______________________________________________________________it’s broker and agents, (hereinafter collectively referred to as “AGENT”)represents the undersigned investor (hereinafter BUYER”)pursuant to the BUYER REPRESENTATION AGREEMENT.  This document is an addendum to that Agreement.

     2.  BUYER may be purchasing property in a transaction subject to the law known as THE HOME EQUITY SALES CONTRACTS (Civil Code sections 1695-1695.17(hereinafter “THE ACT”).  A transaction is subject to THE ACT where a seller is selling his/her personal residence, the BUYER is an investor (A person who does not intend to occupy the property as his/her personal residence) and a Notice Of Default has been filed against the property.  THE ACT is legally complex and there are severe penalties to which BUYER is exposed if THE ACT is violated.

     3.  BUYER has received and read the C.A.R. Q&A entitled “NOTICE OF DEFAULT INVESTOR-BUYER TRANSACTIONS: HOME EQUITY SALES CONTRACTS”. AGENT has advised BUYER to review THE ACT and any and all transaction documents for the purchase of any real property with BUYER’S own attorney and tax advisor before signing any transaction documents. BUYER is aware and assumes the risk inherent to a transaction in which BUYER buys property subject to THE ACT.  

     4.  For good and valuable consideration received by BUYER, and as part of the terms and conditions of the BUYER REPRESENTATION AGREEMENT, BUYER releases and holds harmless and indemnifies AGENT from any or and all claims, liabilities, damages, actions of any kind, losses, and attorney fees to which AGENT is exposed arising out of a transaction subject to THE ACT or allegedly subject to THE ACT, in which BUYER is represented by AGENT.

 It is further understood and agreed that all rights under Section 1542 of the Civil Code of California are hereby expressly waived by BUYER in favor of AGENT  with respect to any claims related to THE ACT.  Said section reads as follows:

     "1542.  CERTAIN CLAIMS NOT AFFECTED BY GENERAL RELEASE.  A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR."

5.BUYER should consult BUYER’S attorney before signing this Addendum.

BUYER:________________________________     DATE:_____________________

AGENT:________________________________     DATE:_____________________

In my line of work I often make call to my clients current or past to ask for referral….Well that is the bread and butter of any real estate agent, however, another profession also relying for their business on referrals is contractor.  But the strangest thing is that I don’t receive that many phone call from contractor asking me for referral, instead I received many call from my clients and of course..friends of client…asking me if I happen to know of any reliable contractor either for their new purchased home or some remodel work.  The reason many of them don’t call their client or me for referral is that more than often their work were not to satisfaction.  I have seen many client got ripped off and could not do anything about…and at the end often time these contractor also file Mechanic lien on the client home. 

Well that going to change….effecting January 1^st, 2011 the law will change involving the requirement of filing for mechanic lien against property owner.  According to AB 457  requires that a mechanic’s lien and Notice of Mechanic lien must now be served on the owner of the property  ( or on construction lender, or the original contractor if those parties cannot be served.)  If it is not properly served, as described in the statue, the lien is unenforceable.   The Law also requires a proof of service affidavit to be complete and signed by the person serving the Notice of Mechanic’s lien . 

In addition , after the filing of the complaint to foreclosed on the mechanic’s lien, the notice of the pendency of the proceedings must be recorded no more than 20 days after the filing of the mechanic’s lien foreclosure action.  Only from the time of recording the lis pen dens will a purchaser or encumbrancer of the property be deemed to have constructive notice of the pendency of the action.

For more information of this topic please call Tom or email tom at 714-487-8876

Reo and Investment Group

http://www.realestatetomtom.com

TommydNguyen@sbcglobal.net

2415 E Imperial highway

Brea, Ca 92821

714-487-8876 ( Cell )

714-316-1405 ( Fax )

I often put my head down and go to work whenever I have a client to serve.  I truly believed that compensation is an automatic thing in life…if you…bring more value onto the table to your client the benefit just spill onto you by itself.  However, there are many brokers and agents out there walking around with the dollar sign on their forehead instead of focusing on what is important to their clients.  Especially, the first time buyer…the common trend..in today..market…is that…”Let’s go with the listing agent so that we can get a better chance of getting our offer accepted” .  It is not true in many sense, the reality is that most of them not interest in representing you but rather just the commission within in the sale. 

Sincere buyers and sellers often work with reputable agents who work for reliable broker, and you will never have to deal with issue like below……!

See my office manager note;

Two big issues have come up…. Read carefully!

First Issue:

 One of our competitors in the area (an independent discount broker) has decided to create their own rules about Procuring Cause.  They believe they are entitled to a commission if a Buyer comes through their open house, even if the Buyer chooses to work with another agent.  And the Broker is supporting this idea.

Last year, one of their agents sued for Procuring Cause because they were working with Buyer who chose to use a different agent on one of our listings.  And we didn’t even have anything to do with the Buyer!   (What Buyer wouldn’t rather be represented by a major, reputable firm like Prudential rather than a no name independent with no financial strength or stability!)

This particular firm is full of agents who think a 100% commission split is a good idea.  Unfortunately, the majority of them are making 100% of nothing!  So they have resorted to trying to steal other agents hard earned commission.  They are misinformed and completely out of the loop of mainstream real estate.

WARN YOUR BUYERS – they are prey for all kinds of desperate real estate agents and scams.   Give them your business cards to take to open houses.  Get a Buyer Broker agreement.  It’s dangerous to wander out in this market without the protection of a solid agent with a rock solid firm. 

DO NOT GIVE IN TO THEIR THREATS – our Risk Management program provides you with our very, very mean attorneys who will defend you to the death when these agents claim they are entitled to your commission.  I have attached the Procuring Cause Guidelines and I can tell you it’s a case that’s extremely difficult to prove.

Second Issue:

We’re dealing with Escrow companies who have no financial backing, no insurance, and no arms length from the transaction.  Most recently an escrow companies issuing commission checks that are no good.   Last week, we had to track down an escrow company that had closed their doors and taken off with our Buyer’s $15,000 deposit. 

Usually, the Listing agent controls escrow, however, all it takes is one counter on escrow and the listing agent will give it up.  Gettting Escrow is another way to protect your buyers and make sure there are no ugly surprises. 

Now that you’re informed.  Put this crappy stuff out of your head and have a happy weekend! 

Reo and Investment Group

http://www.realestatetomtom.com

TommydNguyen@sbcglobal.net

2415 E Imperial highway

Brea, Ca 92821

714-487-8876 ( Cell )

714-316-1405 ( Fax )