Matt Sweeney

For all you rich kids who are currently in escrow on new construction and don't have a finite close date or for those of you who are still looking for the perfect pad, this extension is the news that you have been looking for. There had been rumors for a while that they would indeed extend the credit, but nothing had been passed until a couple of days ago. What's even more exciting is that there is now a $6500 credit for repeat homebuyers who have owned their home for at lease five years. Here are the details as reported by the Associated Press for MSN:

"WASHINGTON - Senators agreed Wednesday to extend a popular tax creditfor first-time homebuyers and to offer a reduced credit to some repeat buyers.

The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November.

Senators agreed to extend the existing tax credit for first-time homebuyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev. The tax credits would be available to homebuyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes, said a congressional aide, who spoke on condition of anonymity because he was not authorized to publicly discuss the deal. "

Check out this site for more info on the federal housing tax credit. Now get out there and buy!

Rich Kids Real Estate Group is pleased to announce the sale of 7917 Willoughby, PH7 in West Hollywood (2br/2ba - 1701 sq ft) with a purchase price of $875,000. This is one of the most architecturally dynamic units I have ever been in. Designed by famed local architect Lorcan O' Herlihy, the penthouse is a combination of white oak floors, contrasting steel framed windows, and an interior glass atrium contained in an award winning boutique condominium arrangement.

I want to welcome my buyer to the Rich Kids family. Congrats RS! Rich Kids Real Estate Group + Deasy Penner = the slickest properties on the market for the next generation of buyers and sellers.

I get many requests to help friends with leases. Working with an agent on a lease is a win-win situation for you! I do the research, set the appointments, handle all the paperwork, and the landlord pays my fees! That being said, the property available to me in my MLS (multiple listing service - agents use this system to list and find properties for clients) tends to be on the higher end of things. I say that not to be off putting, but if your price range is $1800 or less per month, you will find much better inventory searching my all time favorite (and free) website: www.craigslist.org or the very popular Westside Rentals (the fee is roughly $60 for 6 weeks or so - check with them for exact details): www.westsiderentals.com. Here are some quick tips to leasing

#1 - When You Like It, Take It

When you are purchasing a home, you want to really take your time to make sure that you are making the wisest investment for yourself. This is not the case with leases! I always advise my clients to take the first place that they really like. Leases can run the gamut and the hunt can be just as exhausting as home buying if you let it. Often times a client will take too much time thinking about a place only to have it snatched up when they've decided that they want to take it! Good leases are not always easy to find, so act quickly on the ones that are!

#2 - Good Credit, Fat Bank Account, or Helpful Parents - Your Call

Now more than ever, landlords want to make sure that their perspective tenants are well qualified to make their monthly lease payments. The easiest way for them to establish this is by checking your credit. A FICO (credit score) of 700+ will almost always ensure that you will have no problem renting a place. 650-700 is the gray area and everything below that will be a problem. Should your credit need a little work, another way to appease your landlord is to have proof that there are substantial funds in your bank accounts. Bank statements are easy to get and a great way to get around your credit score. Don't have 100K sitting in your savings account? Quite often my clients have their parents co-sign on the lease to assume responsibility should you default! Remember, your mistakes become their mistakes so make sure you (or they) can afford the monthly payments!

#3 - Security Deposit

On a typical lease, you will pay your first month's rent and a security deposit equal to 1 month's rent (example: $1500/month lease: $1500 for first month's rent + $1500 security deposit = $3000 total move in). However, when you get into higher end leases you will often pay a double security deposit (example: $3500/month lease: $3500 for first month's rent + $7000 security deposit = $10,500 total move in costs). You will get your security deposit back at the end of your lease minus any damages or cleaning fees.

#4 - Breaking Your Lease

If you break a lease, you can be liable for payment regardless of whether you are living there or not. By keeping an amicable relationship with your landlord, you are more likely going to get someone willing to work with you should you face financial hardships or need to terminate your lease early! To summarize - don't piss your landlords off!! Please see my post: Dealing with Shady Landlords for information of how to deal with sticky lessor/lessee relationships.

If you are a rich kid with no limits to what you can spend and want the ultimate in LA chic, than this is the unit and building for you. Sierra Towers is considered to be the most prestigious full service high rise building in Los Angeles. Consisting of 146 units, nestled on the border of Beverly Hills right before you hit the Sunset Strip, this loan tower stands by itself as the epitome of luxury living. The moment you pull up, well dressed valet quickly escort you into the lobby and a front desk concierge attendant is quick to greet you. With no buttons to the elevators, you must check in before you are allowed to even enter the rest of the building. Your every whim will be taken care of whether you need groceries delivered to your unit, your dog walked - basically you name it (well, not that) and they will take care of it for you. You will be paying a premium for such pampering with an HOA bill of $1813 per month.

Once you walk through the doors of today's Hot Prop, you will instantly know why I call it The Orgy Pad. The owner converted one of the bedrooms into a massive bed/couch area that could easily seat 20 and is literally bigger than anything I have ever seen. There are two skull ash trays that are on either side of this lair, perfect for entertaining and fulfilling your most lascivious fantasies. This is definitely one of the most beautiful condos I have been in...ever. There are floor to ceiling windows through out, dark hardwood floors, remote control everything, Poliform kitchen, and beautiful mosaic tile bathrooms with plasma TV's. The views are so spectacular from this unit that you feel almost as if you are hanging off the end of the building. I will let the the pictures speak for themselves. Check out the virtual tour here.

9225 Doheny Rd, Unit 806, West Hollywood, CA 90069 - 2br/2ba, Roughly1845 Sq Ft - $2,695,000

SIERRA TOWERS, THE MOST PRESTIGIOUS AND DESIRED FULL SERVICE HIGH RISE IN LOS ANGELES. GREAT VIEWS OF THE SUNSET STRIP, DOWNTOWN AND THE OCEAN. REBUILT FROM THE GROUND UP, THIS UNIT HAS CRESTRON FULL HOME AUTOMATION, POLIFORM KITCHEN AND THE HIGHEST QUALITY FINISHES. IT DOESN'T GET BETTER THAN THIS. CURRENTLY CONFIGURED AS 1 BED 2 BATH. CAN EASILY BE CONVERTED BACK TO 2 BED Listed by Westside Estate Agency

As a rich kid with a vocabulary that has a tendency to lean towards, let's just say, the less demure end of the language spectrum I do try to keep it pretty subdued in my writings and certainly in the professional world. Lately I have had a lot of agents and buyers alike that are totally confused and frustrated about the buying process in new construction condo developments. For those agents that have never done a deal in new construction, it is a totally different animal than doing a deal on a resale property. It can be even more unsettling for the buyer because if the agent is new to this process, than it makes it all the harder for them to address the questions of their clients.

I am currently representing two new construction projects (The Luminaire - 928 Croft and Metropol - 6001 Carlton Way) as well as resale, so I'd like to provide everyone with a little education that might put you at ease. I have to say that I have been very blessed to work with the most amazing buyers and real estate agents on these projects! As I have said before, I get a lot of enjoyment from working with a cool agent/buyer team. Everyone (no matter how savvy they are) typically have the same questions. I love slick new projects and so do most of my clients, so this post is really to help you navigate through this very different buying process. Brace yourselves - there is a lot of info to digest!

#1 - The Developer Has Their Own Contract Approved by The Department of Real Estate (DRE) and a Typical Purchase Agreement Used in Resale Cannot Be Used (9 times out of 10 at least) - This is a very hard concept for some real estate agents to grasp, as we were never trained in this at Realtor University. My very first deal was in new construction and I had a hard time not following the typical procedures that I was trained in. Developer's contracts can be upwards of 40 pages long, are typically slanted towards the best interests of the seller, and often have language that buries the items most important to the buyers (contingency periods, opt outs, etc). Always have your agent (hopefully me - shameless plug) write a supporting addendum that clearly states what you want out of the deal - closing costs, inspection contingencies, loan contingencies, credits for upgrades (washer/dryer/fridge/closet build outs), and an opt out date if the building is not ready or does not have the reports it needs to close by X date with all monies returned to you (there is always a 3% of the purchase price deposit held in escrow until closing and is deducted from your total down payment).

#2 - What is With This 51% Occupancy Requirement? The Building is Complete and I Want a Traditional 30 Day Escrow Period - In this economy, lenders what to make sure that the projects they are providing loans for are solid and that more than half are in escrow before they will issue loan docs/close the deal. This can be frustrating to the buyer because there is not a finite timeline as to when these occupancy requirements will be reached. When you buy in new construction, always assume it will be longer than sooner before you close. If you need to close within a set time for whatever reason and escrow requirements have not been reached, than you are probably better off sticking to resale. Often the building will have Certificate of Occupancy (C of O - meaning building has been inspected by the city and is deemed inhabitable), but not the final White Report (report needed to close escrows - see #3). Should you be an all cash buyer and the building has both White and C of O, than you can skip the lender's 51% requirements and facilitate an immediate closing.

#3 - Pink, Yellow, and White Reports - There are three reports issued by the city - Pink, Yellow, and White. Pink is typically issued when a building has just been completed or in the final stages of completion and is ready for sale. During this time, a buyer can fill out a Pink Report and place a deposit to hold a unit that they like. During the pink period, the DRE mandates that there is to be no negotiation and no sales contracts written. Putting a deposit down is non binding and basically puts you first in line to negotiate on the sale of the unit. It also gives you first right of refusal. This does not mean that the developer has to accept your offer nor does it mean he cannot be looking at other offers. Pink seems to work best when there are many units to choose from and it basically puts yours on hold until the Yellow Report is issued and you can start negotiating. If there is a lot of potential interest on a unit, submitting pink can often tell a developer you are serious and he may try harder to make the deal happen as he sees that you are committed. As my friend says, it puts you in the "cat bird seat" - I'm not exactly sure what that anology means but seems applicable to this scenario. The Yellow Report means that you can now negotiate a purchase price and enter into a binding escrow. Most buildings that are totally done have Yellow and is the interim report until the elusive White Report is issued. Ahhh, White...you tricky little bastard! Of all the things that agitate both buyer and agent is the recordation of the White Report. The building can be completely in escrow, yet you can't close and all you get from the selling agent's office is, "It looks like it should happen in the next few weeks, but I can't give you an exact time". Nothing is more frustrating than that! Trust me when I say, we are all doing our best to get the White Report. What has to happen is that the city has to record the Tract Map and Preliminary Title Report (basically saying the property is free on liens and encumbrances) before it can issue White. Since we are typically dealing with the City of LA, how fast this happens really depends on how expeditiously all the paperwork makes it through the chain of approval. Anyone can tell you that I am probably the most impatient person on the planet, so trust me, I get it. Once we have white, we then can close all escrows concurrently and everyone is happy!

Did your eyes glaze over reading this? I hope I wrote it in a way that makes sense. Buying new can be a great way to go and by having this education, it will hopefully save you some future headaches and empower you to make the best choices for yourself! Disclaimer - these are the basics of new construction as I know them from experience. Every scenario is a little different as is the developer, so please always read the contracts fully, consult your agent (me) and any other council you see fit.