Los Angeles Prepares for the Recession

Downtown L.A. Gets Ready for Tough Times  #recession #realestate

2- Story 1,700 Sq Ft Live/Work Loft at Alta Lofts Los Angeles
2- Story 1,700 Sq Ft Live/Work Loft at Alta Lofts Los Angeles

Because a very large number people in Downtown and the Greater Los Angeles Area are expecting and preparing themselves for the recession that will be under tremendous Fed influence, we will see two unexpected effects:

  1. The recession will be big, but will be delayed.
  2. The recession will be longer and more shallow.

The next recession (the first signs of which have already appeared) will be quite different from our 2008 recession. Because the U.S. federal government is mimicking the extreme central banking interference that has already been tested by Japan and Europe, our next recession is likely to be long and very slowly drawn out, something reminiscent of the “Lost Decade” (should be called Lost Decades) of Japan and the permanently pathetic slow growth of Europe.  Rather than one huge stock market crash, this recession is likely to go more sideways with more, smaller crashes punctuated by unexciting upticks.

The cooling that we’ve seen in the downtown and L.A. real estate markets are signs of the coming recession, and they are also steps that Angelinos are taking to reduce negative effects while preserving capital for hard times and for taking advantage of future low prices.  What LA residents and investors may not be ready for is the painfully slow duration of the next recession.  Because the Fed has made it abundantly clear that they will interfere to more extreme extents, including near zero interest rates (that will encourage eventual negative interest rates), markets will not be allowed to crash freely any time soon, and thus will not soon be allowed to shake free the extreme inefficiencies caused by the extreme Fed bubble that effects all real estate, including DTLA.

Forbes recently reported on ways that financial industry influencers suggest to prepare for the recession.  The articles points out the abundant talk in the U.S. about an inevitable recession. History shows that recurrent recessions are  indeed inevitable.  They vary and cannot be predicted.  We only know that they come about every 6 years, and it’s already been more than 10 years since the last.  A delayed recession creates pressure for a bigger, more serious financial crisis, or what the L.A. Loft Blog expects: a protracted economic funk. A global economic growth malaise has already been happening for several years.

Who’s Getting Ready for a Recession, and How

Buyers – While most considering buying a property have put plans on hold, a few are already taking advantage of the shifting market by placing several lowball offers to find that one desperate seller who will give the great deal.

Sellers – Home owners who do not have a large reserve of cash, and who don’t have much equity will consider selling early.

Flippers – Flip investors have begun to exit the Los Angeles market as their margins tighten. Flippers must make their purchases, renovations and sales faster, in days instead of months, in order to beat a sudden crash.

Real Estate Agents – With fewer buyers and sellers in the marketplace, there’s growing competition to acquire clients. Real estate agents will have to spend more marketing dollars to attract them.

Forbes says that the answer is to become a cash investor in order to take advantage of the growing number of motivated sellers, and to dominate the market for the best deals.  To build cash, consider selling some current assets, raise capital from investors and build more relationships with more lenders early.  Are you preparing for a recession?   |   COMMENT

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Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449.  We are not associated with the homeowner’s association or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.   |   COMMENT

Corey Chambers Receives Death Threat: Los Angeles Real Estate Agent Threatened with Murder

REAL ESTATE NEWS

Downtown Los Angeles, CA  —  This morning at 8:56 AM Pacific, loft specialist Realtor Corey Chambers received an SMS message from a hitman.  The text reads, “Someone paid me to kill you. If you want me to spare you, I’ll give you two days to pay $5000. If you inform the police or anybody, you will die, I am monitoring you.”  #coreychambers

Corey Chambers receives death threat
Corey Chambers receives death threat

For broker Corey Chambers, a veteran U.S. Air Force information specialist, and modern-day real estate fraud sleuth, the text is easily recognizable as an example of today’s popular illegal fraud scheme called the Hitman Scam.

Scamnet reports that scammers have reached a new low with this vicious scam that threatens to kill people unless they give in to demands and pay thousands of dollars to an alleged assassin.  #deaththreat

Known around the world as the “hitman” scam, it first surfaced in 2007 as an email, and has since evolved to SMS text messages.

The sender claims to be a hitman who has been hired to kill the receiver of the message, but will spare their life if the victim sends them money, typically between $1,000 and $100,000.

The sender claims they are watching the victim, and the fraudster warns not to report the SMS or email to police.

Chambers reminds all internet users to “never believe anything on the internet, email or mobile text message until after it is verified.”  |  VIDEO


What To Do If You Receive A Hitman Scam Death Threat

Don’t be alarmed. The email and SMS are being sent randomly to thousands of harvested email addresses and phone numbers.

Local and overseas police are urging people to ignore it, saying it is an empty threat and their life is not in danger.

Replying to the SMS or email will only alert the scammers that they have a live account and they could escalate the intimidation, and make more threatening demands.

One version of the email scam reads: “I am very sorry for you, is a pity that this is how your life is going to end as soon as you don’t comply. As you can see there is no need of introducing myself to you because I don’t have any business with you, my duty as I am mailing you now is just to KILL you and I have to do it as I have already been paid for that.”

The email goes on to say that a friend “wants you dead” and has paid the hitman a large amount of money. The so-called friend has provided your details and the hitman’s team has tracked you down and are watching you.

The email goes on to warn: “Do not think of contacting the police or even tell anyone because I will know. Remember someone who knows you very well want you dead! I will extend it to your family, incase I notice something funny.”

L.A. real estate professional Corey Chambers received the typical SMS version that reads verbatim: “Someone paid me to kill you…. you will die, I am monitoring you.”

Other text messages may be longer, containing the same or more text, while others are broken up into shorter messages.

Downtown Los Angeles real estate can seem dangerous at times. All DTLA loft and condo buildings have issues that buyers should know about before going to see a unit for sale. Get a free list of downtown loft buildings with litigation, lawsuits and other potential issues. Fill out the online form:

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Killer or clown? Corey receives notice of impending assassination
Killer or clown? Corey receives notice of impending assassination.

Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not associated with the homeowner’s association or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.com  Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.