Tips To Start Investing In Real Estate

Plan to begin investing in real estate. Get all the pieces organized first.

Learning curve to begin a course of action to invest in real estate is different for everyone.

I suggest you start with researching.

Read books such as:

The Book on Flipping Houses

How to Invest in Real Estate: The Ultimate Beginner’s Guide to Getting Started

Join online groups and ask questions. 

Talk with investors in your area.

Learn Construction Basics by going to the library and checking out several books. Youtube is also wonderful resource on how to rehab, fix a toilet, hang drywall, and just about anything. 

Learn how to search by location's crime, schools, trends, jobs, rents

Get preapproved for a Loan. Learn mortgage terminology. Improve your FICO score. Understand how title insurance works. 

Leveraging you ability to purchase real estate with a mortgage is a common way for real estate investors to purchase properties with less upfront capital. When you leverage a mortgage, you borrow money from a lender to finance the purchase of a property. The amount of money you borrow is typically less than the full purchase price of the property, so you only need to come up with a down payment.

There are several benefits to leveraging a mortgage for real estate investing. First, it allows you to purchase properties that you would not otherwise be able to afford. Second, it can help you to build equity in your properties more quickly. Third, it can provide you with a steady stream of income from rental payments.

However, there are also some risks associated with leveraging a mortgage. If you are unable to make your mortgage payments, you could lose the property to foreclosure. Additionally, if the value of the property decreases, you could end up owing more money on the mortgage than the property is worth.

If you are considering leveraging a mortgage for real estate investing, it is important to carefully consider the risks and benefits involved. You should also make sure that you have a solid financial plan in place to ensure that you can make your mortgage payments on time.

Here are some tips for leveraging a mortgage for real estate investing:

• Do your research. Before you start looking at properties, it is important to do your research and understand the risks and benefits of leveraging a mortgage.
• Get pre-approved for a mortgage. Getting pre-approved for a mortgage will give you an idea of how much money you can borrow and what your monthly payments will be.
• Find a good property. When you are looking for a property to purchase, be sure to find one that is in good condition and that has a strong rental demand. Location is the most important aspect of real estate, it is the one thing you cannot change.
• Make a down payment. The larger your down payment, the less money you will need to borrow and the lower your monthly payments will be.
• Have a solid financial plan. It is important to have a solid financial plan in place to ensure that you can make your mortgage payments on time.

If you follow these tips, you can increase your chances of success when leveraging a mortgage for real estate investing

C G

Caroline Gerardo

NMLS 324982

949 784- 9699

California Eviction Notices

 California Eviction Laws 

and Notice Time Frames

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There are three types of eviction notices that a landlord can give to a tenant in California.

• Rent Demand Notice: This notice is given to a tenant who has not paid rent. The notice gives the tenant three days to pay the rent or move out. If the tenant does not pay the rent or move out within the three days, the landlord can file an eviction lawsuit.  a (Cal. CCP §
• Notice for Lease Violation: This notice is given to a tenant who has violated a lease term. The notice gives the tenant three days to cure the violation or move out. If the tenant does not cure the violation or move out within the three days, the landlord can file an eviction lawsuit.  (Cal. CCP § 1161(3))
• Unconditional Notice to Quit: This notice is given to a tenant who has committed a serious offense, such as damaging the property or using the property for an illegal purpose. The notice gives the tenant three days to move out. If the tenant does not move out within the three days, the landlord can file an eviction lawsuit. (Cal. CCP § 1161(4)).

It is important to note that these are just the general rules for eviction notices in California.

There may be additional requirements or restrictions depending on the specific circumstances. If you are a landlord or tenant who is facing an eviction, it is important to speak with an attorney to get specific advice on your situation.

As an investor in residential rental properties California is one of the most restrictive states

towards landlords and generous towards tenants.

California has some of the highest monthly rentals in the United States.

California Coastal, Bay Area, Orange County, and Los Angeles County also demand

the highest residential real estate valuations.

DSCR Debt Service Ratio mortgage loans

A DSCR loan, or debt service coverage ratio loan, is a type of mortgage loan that is underwritten based on the cash flow from rent payments, rather than the borrower's ability to repay the loan. This makes DSCR loans a good option for real estate investors who do not have a lot of personal income. Some DSCR programs allow for moderate credit or FICO scores when they meet the other requirements. There are a variety of wholesale investors who purchase these loans. These are not hard money lenders. They are called Non QM lenders as the loans are not a Dodd Frank Qualified mortgage.

To qualify for a DSCR loan, the borrower must have a property that is generating enough income to cover the monthly mortgage payments, taxes, insurance, and any other associated costs. The lender will calculate the DSCR by dividing the monthly rent income by the monthly debt service. For example, if a property has a monthly rent income of $2,000 and a monthly debt service of $1,000, the DSCR would be 2.0.

DSCR loans typically have higher interest rates than traditional mortgages, but they can be a good option for investors who are unable to qualify for a traditional mortgage. DSCR loans can also be a good option for investors who want to purchase a property with a lower down payment.

Debt Service Ratio mortgage loans

Market rents determined and verified by lease agreement, deposit check at closing and the appraiser's rental survey which borrower pays for are used to compare against principle, interest, taxes, insurance. and HOA bills. Short term rental is not used. Interest only or Adjustable rate payment is adjusted to the full actual payment.

Here are some of the benefits of DSCR loans:

• They can be a good option for investors who do not have a lot of personal income.
• They can be used to purchase properties with only rents to cover the payments
• They can be a good option for investors who want to purchase properties in areas with high rental demand.
• They require less paperwork and headache.
• Long term thirty year loans are offered

Here are some of the drawbacks of DSCR loans:

• They typically have higher interest rates than traditional mortgages.
• They are ONLY for investment property not owner occupied.
• They may require the borrower to make a larger down payment.
• They may require reserves. Borrower has to show in checking, savings, and 60% of stock accounts enough liquid cash to cover ALL their bills for twelve or twenty four months. the amount of reserves is part of the interest rate available
• They are for a single borrower with lots of money but perhaps self employed tax returns that don't work for conventional loan types.

If you are considering a DSCR loan, it is important to speak with a qualified mortgage lender to determine if it is the right option for you. Feel free to call me 949- 784- 9699

This is not a commitment to lend

When you call please advise about:

property type, condition of property

property Class type

location, city, state

market rents

valuation/ sale price

how much cash you have in checking, savings, and stocks broken into different categories.

What you think your FICO score is

HOA Foreclosures and Liens

Homeowner Association Foreclosing

If you are delinquent on your Home Owner Association (also known as HOA) dues in California, the HOA must first offer you a chance to participate in dispute resolution. If you do not want to participate in dispute resolution, or if you are unable to reach an agreement with the HOA, the HOA can then record a lien on your property. The HOA must mail a notice of the lien to all record owners within ten days of recording the lien.

Here are some things to keep in mind if you are facing an HOA lien in California:

• You have the right to participate in dispute resolution with the HOA. This is an option if you believe that the HOA is mistaken about the amount of money you owe. You must provide written evidence in the form of cancelled checks you paid, credit card statements you paid, letters from HOA regarding monthly assessments, HOA legal fees, all correspondence. Create an excel sheet to show amounts due verses monthly payments. It might be useful to provide this information if lengthy a week before the meeting. Understand the HOA does not have to play Let's Make a Deal. You can have an attorney present. 
• You can also request to meet with the HOA board to discuss a payment plan. This may be a decent option if you are unable to pay the full amount of the lien immediately.
• If the HOA records a lien on your property, you will be responsible for paying the costs of recording the lien, legal costs, and interest. The amount will increase.
• The HOA can foreclose on your property if you do not pay the lien. Foreclosure can result in the loss of your home.

Before recording The HOA lien for delinquent assessments, the association has to offer and participate in dispute resolution under the association's "meet and confer" program. This does not mean they have to settle or accept any partial payments. They are just required to talk with you. (Cal. Civ. Code §§ 5900 to 5920, § 5660(e).) Under California law, you may also submit a request to meet with the board to discuss a payment plan. (Cal. Civ. Code § 5665.)

If you come up with a written agreement to catch up on the amounts due, the HOA records a lien on your property. (Cal. Civ. Code § 5675.) A notice must be mailed to all record owners no later than ten calendar days after recording. (Cal. Civ. Code § 5675(e).) This lien has to be paid if you sell or refinance. It grows with time.

The HOA can do a judicial or non judicial foreclosure. In California this is typically non judicial and faster. With a nonjudicial process, the foreclosure is subject to a 90-day right of redemption after the sale. (Cal. Civ. Code § 5715.) To redeem the property, you must pay all assessments in full, interest, attorneys' fees, and possibly the costs of repair. Order payoff and provide lump sum cashier's check or cash to the county recorder/accounting weekdays before the deadline. They are not open on weekends and holidays.  (See case Barry v. OC Residential Properties, LLC, 194 Cal.App.4th 861 (2011).)  https://casetext.com/case/barry-v-oc-residential-properties

With a judicial foreclosure the redemption period is: ninety days if the sale proceeds are sufficient to satisfy the debt (sale of property and costs exceeds the amounts owed). Or a year from sale closing date if the proceeds from the sale are insufficient to satisfy the delinquency. (Cal. Code Civ. Proc. § 729.030(a),(b).)

Your mortgage company might not be paid off. The HOA is in front of the mortgage even though they may have subordinated for you to get your loan.

this variety of pink Cerinthe or Honeywort reseeded from Purple Tear on my porch