Five Basic Tips for Investing in Real Estate

There are a lot of things to learn in Real Estate before you start investing. In fact, investing in Real Estate is much more complicated than the stocks investing. That is why Real Estate has become the common investing area for many people and thus have become more popular over the years. One needs to have financial and legal knowledge before investing in the Real Estate.

So, here we are providing you five basic tips which helps you to familiarize yourself with the basic concept of Real Estate.

1. Location:

Location Matters which is an old age saying perfectly suits when we think of the investing in Real Estate. The first thing you should make sure while investing in a property or proceeding forward is whether it is located in a good place or not.

If it is the best location, it can be the worst house there, but that doesn’t matter as you can just fix the issues or resell it to someone who wants a house in the best location. This is called as the Fixing and Flipping formulae by the professional Real Estate investors.

2. Wholesale properties:

Being wise is also very much important while investing. You need to follow the Warren Buffet formulae from the stock market investing which says “You need to be greedy, while everyone else is feeling fearful.” You need to look out for the wholesale properties that are being offered at great discounts and thus avoid paying full prices.

Using this technique, you can buy the property at low price and keep the selling price twice the buying price which helps you in maximizing your investment return.

3. Connect with local investors:

Hanging out with the local investors and talking with them about the local Real Estate market will help you in knowing the things better. Ask them to show their properties and take in every single bit of information they give you.

4. Reading helps a lot:

There is a tremendous amount of information available online these days. You can also gain information that you may need regarding the Property field and investing as well. Buy and read books that give you practical knowledge about buying, flipping, renting and selling the properties.

5. Find a good Realtor:

This is the best part. When you are all set and finally ready to invest in some property, then a Realtor is the person who helps you with it. And a good Realtor who understands the concept of investing returns and also have sold a number of properties can be the best choice.

Property investment can offer fabulous returns, but there are also people who are bankrupted after investing in Real Estate. It is all in your hands, so be sure and know everything involved before you invest.

Habitational Insurance for Commercial Vs Residential Property

Multiple residence property owners have the daunting task of monitoring and satisfying the needs of a number of tenants. This comes with a slew of specialized risk management concern as well. Ownership of residential properties such as apartments, condominiums, and student housing creates a series of unique risks. As such, some research may be in order to procure the appropriate insurance for the properties being managed. Because different types of properties have different types of exposures, ensuring adequate limits and proper coverage can be challenging.

In addition, there may also be a need to keep track of multiple projects and policy expiration dates, which can be extremely overwhelming. That’s why it’s important to have a specialist to aid in finding the right types and amounts of insurance.

The basic insurance needs for anyone owning Habitational properties is general liability coverage, in case of tenant injury or losses caused by: fire, wind, storms, theft, and malicious damage or vandalism by the dwelling’s tenants. Additionally, depending on the location, flood insurance is recommended. A well-crafted Habitational and commercial property insurance policy can protect in light of any or all of these risks.

Who should have property management insurance coverage?

Anyone involved in any of the following activities should speak to an expert who understands the unique insurance needs of property managers:

Renting or leasing real estate to others

Managing real estate for others

Selling, buying or renting real estate for others

Commercial properties carry some of the same risk factors as residential properties

If you are a real estate investor, but choose to focus on commercial properties rather than residential properties, you also need properly secured Habitational and commercial property insurance policy that is designed accordingly. Just like residential property, general liability and catastrophic event coverage should be purchased. However, when it comes to commercial property, you need to also look at carrying environmental and/or pollution coverage, commercial automobile coverage, or worker’s compensation coverage.

Whether the owner of only residential property, only commercial property, or some of each, working with a professional  Habitational and commercial property insurance provider to create policies that will cover all areas of risk is sound management. Such professionals can advise as to what coverage options are available, standard limits, and a variety of unique ways in which this coverage can best protect the properties based on its use and location.

The basic insurance needs for anyone owning Habitational properties is general liability coverage, in case of tenant injury or losses caused by: fire, wind, storms, theft, and malicious damage or vandalism by the dwelling’s tenants. Additionally, depending on the location, flood insurance is recommended. A well-crafted Habitational and commercial property insurance policy can protect in light of any or all of these risks.

Appropriate Objections in a Deposition

Have you ever taken a deposition and had your opponent continually assert inappropriate objections? One after the other: “Irrelevant;” “hearsay;” “assumes facts not in evidence,” “calls for an opinion.” Obnoxious, isn’t it?

Or worse yet, an attorney makes speaking objections blatantly designed to coach the witness, such as: “Calculated to mislead the jury into believing his side of the story, i.e., that the cardiologist failed to review the abnormal EKG and focused exclusively on the mucus in the lungs, when in fact the evidence suggests that the EKG was not conducted until after this witness examined the patient. I instruct the witness not to answer on the grounds that doing so would be prejudicial.”

Considering that depositions cost a thousand dollars or more to take and sometimes require weeks or months to convene, inappropriate objections can be pretty infuriating. This begs the question: Which objections are appropriate in a deposition?

The first thing to remember is that depositions are for conducting discovery. And the scope of permissible discovery includes “any matter not privileged, that is relevant to the subject matter involved . . . [that is] itself admissible in evidence or appears reasonably calculated to lead to the discovery of admissible evidence.” Code of Civil Procedure §2017.010.

Therefore, at all times during a deposition, be attuned for questions that seek information that is privileged, not relevant to the subject matter or that are not reasonably calculated to the discovery of admissible evidence. Objections to such questions, if well-taken, are most likely to be proper.

Privileges are fairly easy to grasp and “not reasonably calculated” questions are those questions that could only logically uncover inadmissible matter. The harder concept to understand is “not relevant to the subject matter.” This is not the same thing as “relevancy” as a test for “admissibility,” as used in Evidence Code §350. Rather, “relevant to the subject matter” for purposes of discovery is best thought of as helpful for evaluating the case, preparing for trial or facilitating settlement. Gonzalez v. Superior Court (City of San Fernando) (1995) 33 Cal. App.4th 1539, 1546.) Also, there is a balance that comes into play when probing into irrelevant matter. Courts consider whether the benefit of allowing the discovery outweighs the burden. See, Bridgestone/Firestone v. Superior Court (Rios) (1992) 7 Cal.App.4th 1384, 1391.

The main thing to remember is that the scope of permissible discovery is very broad. “Reasonably calculated to lead to the discovery of admissible evidence” means that you are allowed to probe into areas that may themselves not be admissible, if doing so would shed light on other evidence that is admissible. See, Greyhound Corp. v. Superior Court (Clay) (1961) 56 Cal.2d 355, 384. Therefore, the scope of proper grounds for objecting to questions in a deposition is narrower than at trial.

For example, it is permissible to ask a deponent questions that call for hearsay, information that might itself be technically irrelevant to an issue or that calls for an opinion, even from a lay witness. The answers to those questions might be inadmissible at trial, but might lead to follow-up questions that uncover admissible evidence. Thus, objections such as “hearsay,” “irrelevant” and “calls for an opinion” are generally improper in a deposition.

Case law specifically allows asking questions that call for hearsay in a deposition because it might lead to other admissible evidence. Smith v. Superior Court (Alfred) (1961) 189 Cal.App.2d 6, 11-12. Likewise, it is permissible to seek information that is cumulative, so an objection on that ground would be improper. TBG Ins. Services v. Superior Court (Zieminski) (2002) 96 Cal.App.4th 443, 448. The one exception to this general rule involves discovery taken from non-parties, against whom fishing excursions far afield of the issues are not likely to be permitted.

Asserting a privilege is a proper objection in a deposition. Such privilege objections include attorney-client (Evid. Code §950), doctor-patient (Evid. Code §990), psychotherapist-patient (Evid. Code §1010), clergy-penitent (Evid. Code §1030), slef-incrimination (Evid. Code §940), spousal communications (Evid. Code §980), trade secrets (Evid. Code §1060), tax returns (Webb v. Standard Oil (1957) 49 Cal.2d 509, 513-514), matters discussed in mediation (Evid. Code §1152), and others.

The next group of proper objections in a deposition involve objections to the form of the question. Under Code of Civil Procedure §2025.460, subdivision (b), unless objections to the form of a question are raised in the deposition, they are waived. Such objections include assertions that the question is ambiguous, confusing, compound, calls for an undue narrative, calls for speculation, is argumentative or leading.

These objections need not be controversial. If your opponent objects to the form of your questions, do not butt heads about whether the objection was proper or not. Simply rephrase your question and move on.

I have seen defense attorneys intimidate plaintiffs and inexperienced plaintiffs’ attorneys in depositions by taking out a copy of the complaint and asking the plaintiff to explain the legal contentions. These are improper questions in a deposition and objections to them would be well-taken. See, Rifkind v. Superior Court (Good) (1994) 22 Cal.App.4th 1255, 1259. Asking the plaintiff questions about factual contentions from the complaint, however, is permissible.

I have also seen attorneys instruct their clients not to answer questions following objections. This is only proper if the objection involves a privilege. Indeed, Code of Civil Procedure §2025.460, subdivision (a) actually requires you to object to a question and instruct your client not to answer in order to preserve the privilege objection or it is waived.

But instructing a witness not to answer a question on any other grounds is improper. Stewart v. Colonial Western Agency (2001) 87 Cal.App.4th 1006, 1015. It is also annoying, since it impedes the flow of information and tends to embolden the witness to look to the lawyer for a side door any time the questions get tough.

Other proper grounds for objection in a deposition include objections to defects in the deposition notice, defects regarding the oath or affirmation, and objections involving misconduct by a party, an attorney for a party or the court reporter.

BRIAN MALLASCH
COLDWELL BANKER COMMERCIAL