Los Angeles, CA

Have you thought about buying a house, but worried about further price drops? What if you think the bottom is no where in sight? Or you own property and want a way to protect your equity? This article from Marketwatch addresses the current financial crisis which Robert Schiller describes as " a failure to manage housing risk." This should be required reading for homeowners, and investors alike, for the same reason commodity futures markets were created- to hedge risk.

As I had blogged yesterday, downtown is an area that I am not overly familiar with. Like I've said many times, I am definitely a Westside type of guy (meaning no further east then Hollywood) and typically so are my clients. Yesterday was my first excursion into the world of slick new highrises and urban (but chic) downtown lofts. I have to say, I dug the whole scene much more than I anticipated. A lot of thought and design has been put into these new urban communities that are springing up and if you are willing to try something off the beaten path, there is a whole lot of bang for your buck to be had. Yesterday I tweeted as I went through each property to give you a quick snapshot of what I was looking at, as well as my adventure navigating through downtown. There are two properties in particular that I want to highlight - they are the polar opposites of each other, but each has something unique to offer a buyer:

Ev0-South - This was a property that I was really looking forward to seeing. As most of you know, there are not many full service buildings in Hollywood and West Hollywood that are affordable, nor contemporary in design. Of course you have the uber lux Sierra Towers, Empire West, and Shoreham Towers to name a few, but these buildings are definitely dated and the structures themselves could all use a bit of a face lift. West Hollywood put a moratorium on new construction residential highrises in 1973, so these were the first and last of their kind. Evo South is brand new and is sleek in every sense of the word. Rising 23 stories into the downtown LA skyline, you immediately take notice of this building's presence. The tower is sculpted of glass and metal, containing 311 units. The lobby has the same kind of chic modern design element similar to that of Nobu in West Hollywood or the new BOA Steakhouse/Lounge in the 9200 building on Sunset. The residences themselves feature floor to ceiling windows with expansive views (depending on location), dark hardwood floors, high end appliances, and designer fixtures. The layouts seem very usable, although I only had time to look at a few of their floor plans. Some examples of pricing would be: 1br/1ba (726 sq ft-1158 sq ft) - $385,000-$709,000 and 2br/2ba (1132 sq ft-2057sq ft) - $630,000-$885,000. The HOA fees which include infinity pool, lounge, fitness center, 24 security, concierge, gas, water, trash will run you $479-$555 for a 1 bedroom and $527-$752 for a 2 bedroom. For all my rich kids going to USC, this would be a great place to call home. Listed by The Mark Company

Barker Block Lofts - I am not going to lie to you, as I was driving to Barker Block I was a little sketched out by the neighborhood. This area reminds me of my raver days of the late 90's when we would go to parties in these old, abandoned warehouses. I literally remember seeing a corpse of a homeless man lying in the middle of the sidewalk that ended up being removed by LAPD as we were leaving the party. Fast forward ten years and you have a totally different vibe. Where once stood a junkie asking for some spare change and a cigarette now stands the brand new downtown Urth Cafe. Across the street is the Barker Block Lofts. Located in a quiet industrial section of downtown, Barker Block made a fantastic impression on me. Done by the KOR Group who are also responsible for Broadway Lofts and Eastern Columbia (lofts), their signature high quality stamp is everywhere. What's cool about this area is that while you are in downtown, you are somewhat removed from the highrises, leaving you expansive views of downtown LA from many of the units as well as from the chic pool deck and fitness center. The lofts either have polished concrete floors or dark hardwoods. Hopefully I have the story straight, but Barker was an old industrial warehouse that was converted into these lofts. The developers expanded on the initial building , creating a "block" of live/work spaces. Many of the original features from the warehouse can be seen such as vaulted ceilings with wood beams criss crossing the space. There was just something very relaxed about the building and the residents that I happened to walk by. Again, I was surprised at how well I liked not only the lofts, but the area itself. Maybe not the right fit for some of my BH/WeHo rich kids, but if you are looking to try a bohemian lifestyle with posh amenities, this could be the place for you. Lofts start at $325,900 for 799 sq ft, but you can still get a loft at 1100 sq ft for $399,000! The higher priced units with city views range from $533,900-$749,000. HOA dues range from $355-$554. See photo gallery below of Barker Block.

It is slim pickings this week due to the upcoming 4thof July holiday weekend. Since there is not a whole lot new in West Hollywood (with the exception of The Vue- see below) or Beverly Hills, I am going to make my way downtown to see what's happening with all these new high-rises that are popping up. To be honest, I have never been a huge fan of downtown. In my book, walkability and convenience are huge components to happy living in Los Angeles. Since I have very few clients that work or play in the downtown area, I tend to avoid this place altogether. Conversely, I have heard some positive feedback about some new projects that have just sprung up at very competitive prices. I'll be twittering my thoughts on each property as I see them, so if you happen to be in one of these areas and want to check any of the below out, feel free. Broker's caravan is from 11am-2pm, but many of these high-rises have on site sales centers that hold regular business hours. Without further ado, here's what's on the map for today:

West Hollywood

The Vue - 912 North San Vicente Blvd, West Hollywood, CA 90069 - 3br/2.5ba, Units Range 1709-1830 sq ft, Starting at $1,189,000 to $1,229,000- Newest development in WeHo to hit the market. There are five, 4-story units that feature private rooftop decks providing exploisve views of the city. I have heard a lot of great buzz about this project and am really looking forward to checking these units out. Features include: balcony with fireplace, cathedral ceilings, upstairs loft/office space, lux chef's kitchen and bathrooms. According to the agent, there is already one unit in escrow. The location is amazing between Sunset and SM Blvd. Listed by Coldwell Banker Malibu Colony

Downtown

The Solair- Corner of Wilshire and Western - Prices starting at $800,000-$2,500,000 - From 1300-3000 sq ft - The Solair is not quite downtown, but close enough that I thought I would lump it in. This brand new building features 186 units with most boasting some sort of view. Amenities include 40,000 Sky Deck on 7th floor that features pool, spa, cabanas, indoor reading lounge, and glass walled fitness center. This project was initially marketed almost exclusively to the Eastern demographic, but I've heard the building is looking to really diversify it's residents. Full service with 24 security, concierge, etc. This is the first building of it's kind in this location.

Evo-South- 1155 South Grand Ave, Los Angeles, CA - Priced from mid $400,000-$1,000,000 (these are estimates, don't have an exact price sheet), From 730 sq ft-3500 sq ft - Evo South is part of a three building project, this being the final addition. With over 311 units, this an ambitious project. The building itself is full service, has a fifth floor pool deck, gym, and all the other amenities you'd find in a high rise such as this. Evo prides itself of being the only LEEDS Silver Certified building in LA (meaning it is very "green" and energy efficient). I have seen a lot of advertising for price slashing and deep discounting. This could be a very solid option for the rich kid who wants the downtown experience. I am curious to see how much bang you can get for your buck here. Listed by The Mark Company

Concerto- 900 SouthFigueroa Street, Los Angeles, CA - Varies - There is limited information as far pricing and number of units goes, but from what I can gather from the website there are 33 stories with prices ranging in the mid 300's for an 800 sq ft 1br/1ba and a 2br/2ba with 1184 sq ft going for around$596,000. Feature include salt water pool, tai chi lawn, fitness center. It's obviously still under construction, but I am going to stop by the sales center to get the skinny. Listed by Keller Williams Los Feliz

Barker Block Lofts - 510 SouthHewitt Street, Los Angeles, CA - From $329,000-$729,000, Loft style from 900 sq ft-1331 - I've heard a lot of good things about this project. It was done by the KOR Group who is known for their cutting edge design and vision (Broadway Lofts and Eastern Columbia to name a few). The building has a rooftop pool with amazing views, fitness center, and is in close proximity to Urth Cafe Downtown as well as other "hot spots" for that area. What I thought was cool is that they appear to do a lot of community events like Super Bowl parties, etc. I am curious to see what kind of buyer this building attracts. Listed by The Mark Company

WHAT IS A FORECLOSURE RESCUE SCAM?
A Foreclosure Rescue Scam is when a thief pretends to ‘Help' people in foreclosure, but is really trying to steal their money. There are many different types of scams and there are more scam artists than legitimate counselors. Once you are in foreclosure, your name, address, and the fact that you are desperate to save your home are public information. Scam artists send you a piece of mail or call you and promise to ‘Save you from foreclosure' or to ‘solve your problems.' But, BEWARE! They are out to get what little money that you have left. If you want to stay away from the scam artists, read on!

THE TYPES OF RESCUE SCAMS
The ‘Pretend to help you' scam is where they tell you that they will call your lender for you. All you have to do is give them money and relax. DON'T FALL FOR THIS! You'll know that it's a trick when they tell you to 1) Ignore your lender's phone calls; 2) Ignore any Court date that you have; and 3) Don't try to contact an attorney. You'll know that this is a scam, because they'll ask you to pay them. But hold onto your money! Legitimate housing counselors offer their services for free. Once you are in foreclosure, you need to save your money, in case your lender wants a down-payment. If someone offers to help you out of foreclosure, only if you pay them first - tell them to get lost!

The ‘Let us review your documents for a thousand bucks' scam is where they ask you to send them your mortgage papers to they can "review" them to see if you have any legal claims. Then, they'll send you a very long letter that quotes a lot of law, but isn't worth the paper it's printed on. It is true that an attorney might ask you to send him/her your documents for review. But, there are a few differences that you should look out for. First, an attorney will not ask you to send them money, UNLESS they agree to take your case. Legitimate document reviews are absolutely free. Second, these scam artists are rarely attorneys. Most counseling agencies work with local attorneys to help folks in foreclosure. Call someone local and hold onto your money!

The ‘Deed your house and rent it back' scam is where someone convinces you to sign your deed over to them, so they can save you. "Don't worry," they'll say. "You'll just pay us rent, until your credit is fixed. Then you'll buy the house back." It all sounds good. Until they either borrow a ton of money from another bank (using your house as collateral) or raise the rent quickly and then kick you out. Unless you are selling your house, do NOT sign your deed over to anyone! If you want to keep your house, call a local legitimate counselor and make an appointment.

The ‘Quick Refinance' Scam is when they promise that they have a lender who can help you out of this, no problem! What they don't tell you is that if a foreclosure has been filed against you, nearly all lenders will refuse to give you a new loan. There is no quick fix for someone in foreclosure. If a fast-talker contacts you and pretends that there is call 2-1-1 for help first!

The ‘Filing Bankruptcy will save your house' scam is where someone convinces you to file bankruptcy, because this will stop the foreclosure; OR they will convince you to deed the house to somebody else so THEY can file bankruptcy and stop the foreclosure case. It is true that a bankruptcy will stop the foreclosure. But, only for the time-being. But, if you file bankruptcy before you meet with a legitimate bankruptcy attorney, the foreclosure will start up again and you will lose your house. Since a bankruptcy will stay on your credit report for 10 years, you should be very careful about whether to file. Before choosing bankruptcy as an option, meet face-to-face with an attorney.

HOW TO PROTECT YOURSELF FROM SCAMS
These simple rules will help protect you from Foreclosure Rescue Scams:

• Only make payments directly to your lender or servicer
  • Do NOT pay a counselor money.
  • Only pay your lender, AFTER you have a written agreement
  • It is OK to pay your lawyer for his/her escrow account
• NEVER sign over your deed. Unless you are selling your house.
  • There is NO reason to sign over your deed to someone else. This will NEVER get you out of foreclosure.
  • It WILL make you lose the house.
• Get promises in writing.
  • Scam artists pretend that they are talking to your lender.
  • Make them show you a written agreement from your lender, before you pay anything
• Do NOT give out personal information.
  • The fact that you are in foreclosure is public information. Some scam artists call people in foreclosure, just to get their personal information.
  • DON'T give anyone who calls you ANY personal information.
• Know what you are signing.
  • Scam artists know that people in foreclosure will sign anything if they think it will help. Don't make this mistake!
  • Refuse to sign, unless a counselor or an attorney can explain it to you.
  • If they won't let you "show it to your attorney" or "think about it overnight," you should refuse to sign!

Courtesy of:
http://www.dontborrowtroublecc.org/en-US/SYN/8850/PageTemplate.aspx

Pleasanton, California's SmartZip, Inc. has announced the public beta launch of its Web site, SmartZip.com, and the introduction of SmartZip Score, analytics-based investment ratings for residential properties, including foreclosures.

Historically, more than 20 percent of all homes purchased in the United States are for investment purposes. SmartZip says its Web site is the first in the industry to offer independent ratings and investment tools expressly for residential real estate investors.

SmartZip.com launches with more than 12 million investment-rated homes in California and Florida, two of today's top markets for real estate investment. Over time, the company says it will roll out its ratings across all 50 states.

Home prices are at historic lows and mortgage rates are still well below the levels of years past, making now an ideal time for investors to get back into the market. In addition, in February, Fannie Mae announced a new policy that allows qualified investors and second home buyers to obtain up to 10 loans, replacing the previous four loan limit.

Tom Glassanos, president and CEO of SmartZip, said, "There is immense pent-up demand from investors looking to capitalize on this opportunity. With [our launch], SmartZip brings transparency to the best investment values in two of the top markets, California and Florida, opening them up to all investors nationwide."

SmartZip explained in a press statement that the new SmartZip Score is the first quantitative property rating to offer a risk-adjusted assessment of the investment potential of residential real estate, by applying proven stock and bond rating analytics to a comprehensive base of real estate investment attributes.

Using a 1-100 scale, SmartZip Score gives investors and homebuyers a tangible method for assessing if a property is really worth buying. Properties are rated two ways: a "growth" score for risk-tolerant investors seeking above-average capital appreciation and an "income" score for risk-averse investors looking for consistent monthly cash flow. Through the company's Web site, users can research and compare markets, then find and confirm top-rated for-sale and foreclosure properties - all based on investor criteria such as SmartZip Score, cash flow, appreciation, and school ratings.

SmartZip says its site and rating tool offer benefits to a range of audiences. Investors can identify the markets and properties that best fit their investment needs. They can compute rental income and expenses, project long-term cash flow and appreciation, and assess how to maximize after-tax returns.

Lenders can use SmartZip Score to determine present and future collateral value of a property, assess the size of potential loss in foreclosure, and simplify the decision of whether to foreclose or modify a mortgage.

For sellers and listing agents, the tool can be used to calculate optimum price for rapid sale, differentiate the value of competing properties, and demonstrate the value of a transaction. The site also allows these users to market their properties to a national buyer pool.

Avi Gupta, VP of research and marketing at SmartZip, commented, "Online real estate sites are focused on what a home costs and not on what it's really worth. SmartZip Score is an independent, disciplined methodology that gets to the fundamentals of property value. In a time of uncertainty, fundamentals, not price, count most."