LA Loft Loan Problems – Financing Industrial and Commercial Loft Conversions in Downtown Los Angeles
It is the #1 most common disaster that buyers and sellers encounter when transacting a loft condo in LA. — This shocking problem happens most frequently when the buyer and seller both use an out-of-area agent who has no idea about the uniquely challenging financing issues that surround live-work loft conversion. After an often clumsy process of finding the right loft, and then finally getting into escrow, the buyer receives a very unexpected phone call from the lender that goes something like this: “of course we cannot complete the loan as promised… we are a residential lender and you told us you were financing a residential property. This is not a residential building.”
Avoiding this disaster is easy when the buyer has access to the best information about loft financing. Below is a list of loft buildings that may require a loft lender, litigation lender or other special financing.
A free report has been prepared entitled “How to Get the Best Deal on a Downtown Loft Loan” that will help buyers and sellers to complete a live-work loft transaction quickly, smoothly and at the lowest cost, and how to find the right lender for the right loft. To get your free loft lending report, fill out the online form:
How Many Amazing Downtown LA Lofts Will You Miss?
Pocket Listings Provide Plenty of Places to Purchase
How would you like an amazing Downtown Los Angeles loft that more than gains $100,000 in equity in 2 years? How would you like to lose an amazing L.A. loft that could have been a life-changing home and investment? Many of my clients and I have enjoyed experiences closer to the first story, the happy story. At the same time, I have had to see some others experience the second story, the less happy story. What makes the difference between the happy loft story and the not-so-happy story? Of course anyone with $10,000,000 has lots of options. For the rest of us, the most powerful free resource for buyers is knowledge and access to more properties, more information about the properties, and more knowledge about the Downtown loft market.
As more and more buyers try to purchase lofts in Downtown, we are hearing more and more sad stories of buyers who have already been priced out of the market, who wish they would have purchased in 2011 when most were either to broke or too scared to buy a property. Many others have placed offers on a nice loft, only to be outbid or outmaneuvered by another buyer. They lose their dream loft. Still other buyers have searched for a long time, and when they finally placed their offer on the same day of the listing date, the agent completed the paperwork and got it back to them that night. The offer got to the seller the very next morning, but the seller had already accepted another offer. They had seen that happen once before. The best lofts seem to be sold sometimes before they are listed. Are many of the best lofts and condos selling instantly when they are listed or even earlier? This is not our imagination. Many of the best lofts really are sold before they are listed, or shortly thereafter. This is called a “pocket listing.” It is actually a type of unlisted property that is not on the internet and most real estate agents do not have access to them. Some buyers get priority information and privileged access to the pocket listings before they are listed. These lucky and/or smart buyers are called VIP buyers.
One happy buyer — we will call him Jeff Mason to protect his privacy — just sent me an email thanking me for helping him to buy a loft that more than doubled in value in two years, along with a comp listings showing a similar loft that just sold for more than twice what he paid for his loft. How did Jeff do it? Jeff was a VIP buyer.
Another buyer — we will call him Robert Gallagher — was able to place an offer on a resale Barker Block for thousands less than other Barker Block lofts. With only 10% down, he was able to go into escrow with the most desirable loft unit in Downtown with resort-level amenities, low HOA dues, in the coolest neighborhood in the world. He was able to see the property before it was listed on the MLS. How was Robert able to do it? Robert had already lost one unit before. He is a quick learner, and he found out how to become a VIP buyer for free. That’s right!! Believe it or not, it cost him nothing to gain access to these pocket listings, as well ask listings of all agents, including foreclosures, REO, bank owned properties, short sales, distressed properties and raw lofts. Robert got access to the largest number of pocket listings and other unlisted properties. At no cost, Robert joined the VIP buyer program to gain access to the pocket listings. Robert was notified by email and text about a pocket listing in the prized Barker Block building. Robert hear about the property before it was listed to the public, and this time he was the one who was able to see the unit before it was listed, and place an offer before the other buyers were able to. Rob learned how to go from being the guy who watched other buyers steal his dream loft, and even though he only has 10% down, he is now the VIP buyer who was able to buy a dream loft before other buyers ever knew it existed. This time, it was the other buyers who missed out, not Robert.
The biggest secret in Downtown is pocket listings and other unlisted properties. Knowing about unlisted properties is the first step. There are many other advantages that buyers absolutely need in order to get maximum advantage. Buyers need access to the largest number of foreclosures, bank owned, company owned, REO, short sales, fixers, raw lofts and other distressed properties from all agents. To get the lowest price, the buyer should also use a Downtown specialist agent who knows what lofts in the building sold for less than 30 days ago, before it gets listed on the MLS. Downtown buyers need to access boldest, most powerful strategies that are required to help the average buyer beat out wealthy international cash buyers who are trying to buy the same unit. Using an out-of-area agent is just not worth it. It is simply not worth it to use an agent who does not have access to the very largest number of pocket listings and unlisted properties in Downtown. To get every advantage, Buyer’s absolutely must join the VIP buyer’s program to work with the buyer’s agent team with the largest number of pocket listings in Downtown.
Prices have risen. The number of buyers has increased. The number of easy bargains has decreased. The average buyer today is getting crushed by wealthy investors, cash buyers, and VIP buyers who are buying the property before the average buyer sees it. It is no longer effective to be the average buyer. Every buyer must use the most powerful free tools available.
To get the the best investment and best deal on an amazing loft, become a VIP buyer, and gain free access to the largest number of distressed properties and unlisted properties. Those who are not ready to work with an agent can immediately take advantage of the free Downtown real estate information at http://www.LAcondoInfo.com while buyers who are ready for the best deal today should immediately call the buyer’s team with the largest number of Downtown unlisted properties and distressed properties. Call Corey Chambers at (213) 478-0499 and become the VIP buyer who is able to beat out other buyers to the best deals.
Get free access to up to twice as many amazing lofts in Downtown Los Angeles. Fill out my online form:
The #1 Downtown buyer’s agent with 19 successful buyer transactions closed in 2013, Corey Chambers is a Realtor®, and member of the Top 6 award-winning, 5-Star Yelp rated team. J.D. Power Award 2012 – Keller Williams Realty ranked Highest in Overall Satisfaction for Home Buyers and Sellers Among National Full Service Real Estate Firms. DRE#01889449
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Downtown Los Angeles – A new report has just been released which identifies the 6 most common and costly mistakes that homebuyers make before buying a home. Mortgage regulations have changed significantly over the last few years, making your options wider than ever. Subtle changes in the way you approach mortgage shopping, and even small differences in the way you structure your mortgage, can save or cost you literally thousands of dollars and years of expense. Whether you are about to buy your first home, or are planning to make a move to your next home, it is critical that you inform yourself about the factors involved before you buy. In answer to this issue, Industry Insiders have prepared a FREE special report entitled “6 Things You Must Know Before You Buy”. Having the right information before hand can undoubtedly make a major difference in this critical negotiation. To order a FREE Special Report, visit www.BuyerMistakesLA.com or to hear a brief recorded message about how to order your FREE copy of this report call toll-free 1-800-791-4541 and enter 1004 . You can call any time, 24 hours a day, 7 days a week. Get your free special report NOW to find out what you need to know before you buy a home.
What The MLS Doesn’t Want You to Know About Pocket Listings
The MLS recently ran a large ad in the Los Angeles Times entitled something like, “Don’t get SHORTCHANGED by a POCKET LISTING”
The ad gives the impression that basically all properties for sale should be listed on the MLS, and if the home is not listed on the MLS, then the home may sell for less than the market price. A pocket listings is any type of property for sale with a real estate agent who does not post it to a multiple listing service. A multiple listing service (MLS) is a service for cooperation of brokers, sharing and dissemination of property information to foster the transaction of real estate. MLS services are usually local, but web-based, and they are facing increasing competition from ever more powerful national and local real estate websites.
As a top Realtor who specializes in pocket listings, I will share with you the facts and fallacies of pocket listings. My team has helped more buyers and sellers with more pocket listings in Downtown than any other agents or brokers that we know of. We have been involved with nearly 500 pocket listings over the past 10 years. 45% of our buyers over the past several years have purchased pocket listings because they have been the smart choice nearly half the time.
Like all money matters, when it comes to financial results, buyers, sellers and agents must pay attention to supply and demand. The more buyers who find out about the property for sale, the faster and more money that it will sell for. So the questions is, “Does the MLS attract more buyers or does a pocket listing attract more buyers.” Most agents understand that, in terms of sheer numbers, the MLS will deliver more buyer prospect than a pocket listing without the MLS.
Since the MLS ad basically infers that pocket listings are a better deal for the buyer, it stands to reason that buyers are likely to be happy with pocket listings. And if buyers feel happy with pocket listings, then they are likely to buy the pocket listing property.
As for the agents who take part in pocket listings, they say that there are undeniable benefits of a pocket listing: privacy, exclusivity, excitement, speed, efficiency, profit for the agent, and satisfaction of the buyer and seller. Those are some great reasons to do pocket listings. So the question is: “When should a listing be a pocket listing, and when should the MLS be omitted from the marketing plan.” and “When should a pocket listing not be used?”
The answer may surprise you. While the MLS has recently lost some of its mandate, it is still one of the most important — usually THE most important medium to advertise a property. At the same time, a pocket listing does provide more privacy, more control, more freedom, more flexibility, exclusivity, and often more excitement, speed, efficiency, profit and satisfaction. So the answer is to do something that most agents have not yet figured out… a combination of MLS and pocket listing. Most agents have not yet figured out how, when or even why to do both.
One team has figured it out. The Corey Chambers team offers, “Your Loft Sold GUARANTEED or We Will Buy It” If a property is not sold within the listing term, then Corey Chambers will buy the property at a price agreeable to the seller. A combination of the MLS and pocket listing are part of the guaranteed sale process. This makes sense to take advantage of the distribution of the MLS and also use the power of a pocket listing.
More and more home sellers are taking the safe bet, and choosing to work with a real estate team that has the experience and knowledge to help sellers and buyers take full advantage of the power of the MLS while not missing out on the instant-sale capabilities of a pocket listing for sellers. Most buyers are oblivious to pocket listings, have no idea that they are missing out the unlisted bargain properties for sale. Buyers often notice that the best deals are selling before they have a chance to see them, and they cannot figure out why.
Here’s how buyers and sellers can each take advantage of pocket listings:
A Gap factory store is now under construction on Broadway.
We hear that the Gap plans to open the store in time for the 2014 Christmas shopping season.
The Gap Factory Store is a bit disappointing to some. They ask why Gap would open an outlet store in Downtown Los Angeles. Downtowners would prefer to see a big lagship store to make a bigger statement. Many stores have opened in Downtown to immediately take first place in they entire chain of stores. Ralphs Market is one such instant success. Trader Joes and Whole Foods are just now catching on, each with their own planned Downtown store openings.
Upon thinking about it, most will agree that the Gay Factory Store is still a drastic improvement over the cheap tchatchkies stores that the Gap is replacing.
As for real estate, the Corey Chambers Downtown loft specialist team announced many years ago that Broadway offered an exceptional investment opportunity because its renaissance is just beginning. The owners of the Eastern Columbia loft condominium units are in the prime position to benefit from the renovation of Broadway. The L.A. Loft Blog also has a list of buildings that are most likely to go condo in the neighborhood. L.A. Loft Blog readers can get first chance to be notified when the loft buildings are just coming up for sale in order to get a jump on the competition and beat out other buyers to the best deals.
We hear that the store will be 8,500 square feet, and will be stocked with popular apparel for men, women, and children.