Buy Loft – Page 14 – LA Loft Blog

What to Do When a Home for Sale has Renters Living There

Some of the best deals in Los Angeles real estate are lofts, condos and houses already occupied with tenants in possession. #tenantinplace #investment

Overlooked properties often represent the best opportunities

These can sometimes offer bargain prices similar to distressed properties or fixers because properties with renters living there can bring down the final sale amount. More than 90% of home buyers are looking to move in soon, so renters in place may look too lived-in, and may not seem appealing to the majority of home buyers — But… Money-savvy buyers should remember that cluttered, unattractive properties in valuable neighborhoods generally present the best return on investment if they can be easily remedied. The right offer can be the instant remedy. Investors, flippers and advanced real estate buyers know that good results are possible by negotiating and doing due diligence. This article will explain how to make tenant-in-place work wonderfully for most any kind of home buyer.

When renters are living there, the prospective buyer usually needs to ask the seller a question about when the tenants will be gone. If the tenants are on a lease agreement, then the buyer needs to know when that lease ends. If the renters are on a month-to-month rental agreement, and they will still be in place at close of escrow, then the buyer must find out as much about the renters as possible. How much rent are they paying; how much is it worth to rent; what are the terms; are they good tenants; do they pay rent on time?

An estoppel agreement is often required to make sure that the tenant and new owner are on the same page. If the tenants will still be living there after close of escrow, then the buyer should send a questionnaire to the tenants asking ages of residents (when was the last rent increase, how much was the increase, what are vehicle license plate numbers?; is there any water filled furniture or pets? are there any new residents not on the original lease contract? Are all safety features still in place and functioning? Has the tenant requested any repairs that have not been performed?.

If the buyer wants to move in soon, then the buyer must either determine if they can hold out for 1-5 months in order to terminate the rental. Or…

The smartest action that buyers and seller may overlook is for the buyer to place an offer contingent on the tenants being gone by close of escrow. That offer encourages the existing owner to take care of the issue early so that the buyer may the right home for the right price, and move in quickly.

Get a free list of distressed lofts. Fill out the online form:

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LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

A tenant-in-place may shave $10,000 to $30,000 off the final sale amount. — Unmade bed can be a boon for the buyer. A messy tenant-in-place may shave $10,000 to $30,000 off the final sale amount.

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.

Want to Get Less Money, Waste More Time, Struggle with More Hassle and End Up with Less Satisfaction? #mistakes

If the answer is no, then keep reading to learn how to avoid the biggest mistakes. Most Downtown home owners are unaware of the down sides of L.A. urban real estate today, which has an alarmingly low success rate.

Downtown L.A. Real Estate’s 73% Failure Rate

Many home sellers don’t know just how often DTLA condos fail to sell as the market has just recently changed to a buyer’s market. Out of 609 recent Downtown listings, only 173 sold. That is a meager 28% success rate.

Don’t Be a Statistic. #loft #failures

Here are the primary obstacles to success — fortunately followed by several tips on how to efficiently overcome them and leap to the greatest success in any Downtown L.A. real estate transaction. First lets be aware of some of the issues that are out of our immediate control, such as the softening real estate market, and the long-term homeless / mental illness problems. The L.A. Loft Blog has done some very powerful posts about investments that will help to overcome any economy dips. Most Downtowners are aware of the homeless issues, and how to avoid or benefit from that big dilemma, so we’ll focus on the most serious problems that have the most concrete solutions.

Let’s start with the biggest and most common problems for Downtown home buyers and sellers: Lawsuits, Litigation and Loft Loans. More than 25% of listings involve buildings that have currently or recently been part of legal issues that home buyers need to know about. The solution for this problem is for buyers and sellers to each use local neighborhood real estate specialists who have completed transactions in the area, and who are familiar with the problems in each building. Also the L.A. Loft Blog provides the most comprehensive and complete news and information on problems and solutions pertaining to each individual buildings in Downtown Los Angeles.

More than half of Downtown condo buildings are industrial or commercial loft conversions, now being used as residences, while they are still on the books as commercial or industrial buildings. The problem arises when lenders always initially OK the building. But then, only later, does the underwriting department take a real thorough look at the building to learn that it is totally commercial or partially commercial, and not listed as “residential”. The lender freaks out and delays or utterly fails to complete the financing after the buyer and seller have spent nearly a month and hundreds or thousands of dollars working on a failed transaction. The way to prevent that problem is by using a loft lender who has successfully completed mortgage loan financing in the building recently.

In addition to the litigation problems and loft lending issues, other common issues that home sellers run into while trying to sell a loft include: poor communication from agents; insufficient knowledge of building, not enough buyers looking at the unit, receiving no offers, insufficient marketing of property, and overall dissatisfaction with the home selling process.

The good news is that many of these issues can be addressed by using loft specialist listings agents, loft specialist lenders, guaranteed sale program, unique consumer programs and satisfaction guarantees.

Which of these common seller mistakes will you make when you sell your home?

http://www.lacondoinfo.com/seller_mistakes

Loft buyers get a free FREE Special Report – 6 Mistakes to Avoid in DTLA. Get this free Downtown real estate report that will inform you about recent mortgage and loft loan changes. It’s called “6 Things You Must Know Before You Buy”. Fill out the online form:

<a href="https://laloft.wufoo.com/forms/pbzkx4b08mhsuz/" target="_blank" rel="noopener noreferrer">Fill out my Wufoo form!</a>

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

Category: Buy Loft

Downtown LA Investment Rentals – Buying or Selling Lofts and Condos with Tenants in Place

Loft Failures – BIGGEST Mistakes Made by Downtown L.A. Home Buyers and Sellers

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