REAL ESTATE NEWS (Los Angeles, CA) — How is the California property market affected by the collapse of Silicon Valley, Signature and Silvergate banks? Frighteningly, there are likely more to come, including larger banks, as we will discuss in this article. The collapse of the small banks can have an impact on the property market in a few ways:
Reduced availability of credit: Small banks often provide financing for property purchases, and if they collapse, it can lead to a reduction in the availability of credit for buyers. This can make it more difficult for people to obtain financing to purchase homes or investment properties, which can slow down the property market.
Decreased competition: When small banks collapse, it can lead to a reduction in competition in the banking industry. This can result in higher interest rates and fees, which can make borrowing for property purchases more expensive. Higher borrowing costs can also lead to a slowdown in the property market.
Distressed property sales: If small banks hold a large number of distressed properties, their collapse can lead to an increase in the supply of distressed properties on the market. This can put downward pressure on property prices and lead to a slowdown in the property market.
Uncertainty and fear: The collapse of small banks can create uncertainty and fear in the property market, as buyers and sellers may be hesitant to make decisions in a market that appears unstable. This can lead to a slowdown in the property market as buyers and sellers wait to see how the situation develops.
Sketchy banks linked to FTX or other issues in the media — Here’s the list they don’t want you to know about:
Silicon Valley Bank Signature Bank Silvergate Bank First Republic Bank ( FRC) Credit Suisse BMO Harris Bank Customers Bank Deltec Bank & Trust LendingClub JPMorgan Chase Moonstone Bank Wells Fargo Bank Bank of America Citi Western Alliance ( WAL) PacWest Bancorp ( PACW) …
This list does not necessarily mean that all of these bank have substantial financial difficulties. There may be other banks with a worse financial outlook. The list is not all inclusive.
Overall, the collapse of these small banks can have a negative impact on the property market, particularly in terms of reduced availability of credit and increased uncertainty. The Los Angeles real estate market has already been crashing for several months. Bank failures will likely worsen and prolong the LA. property market downfall.
How can we tell if the economy is severely impacted? There are several indicators that are commonly used to gauge the overall health of an economy. Here are some of the most important ones:
Gross Domestic Product (GDP): GDP measures the value of all goods and services produced within a country’s borders during a specific period of time, usually a quarter or a year. It is considered one of the most important indicators of economic growth.
Unemployment Rate: The unemployment rate is the percentage of people in the labor force who are unemployed but actively seeking work. It is a key indicator of the health of the labor market and can give insight into the overall state of the economy.
Consumer Price Index (CPI): The CPI measures the average change in prices of a basket of goods and services over time. It is used to gauge inflation and can help policymakers make decisions about monetary policy.
Housing Starts: Housing starts refers to the number of new residential construction projects that have begun during a particular time period. It is a leading indicator of economic growth, as new construction often drives job growth and consumer spending.
Stock Market Indexes: Stock market indexes, such as the S&P 500 or the Dow Jones Industrial Average, can give insight into investor sentiment and expectations about the future direction of the economy.
Consumer Confidence Index: The Consumer Confidence Index is a measure of consumers’ attitudes and expectations about the economy. It can be an important indicator of future consumer spending and economic growth.
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Advanced Real Estate: A Comprehensive Guide to Modern Buying and Selling
REAL ESTATE NEWS ( Los Angeles, CA) — The world of real estate has come a long way from traditional methods of buying and selling property. Today, advanced real estate techniques have emerged, providing buyers and sellers with innovative solutions to make transactions easier, faster, and more efficient. Some of these methods require special training, special permission, extra disclosure, extra steps and special paperwork from a highly experience, license broker. Not for beginner agents, we’ll take a closer look at the top advanced real estate methods available today. | MORE
Every Day Open House Gone are the days when buyers had to schedule an appointment to view a property. With the Every Day Open House concept, buyers can visit a property at any time of their convenience, with or without an agent. This system allows potential buyers to tour a property at their own pace and get a better sense of the home and its surroundings.
Guaranteed Sale Sellers who need to sell their home quickly can use the Guaranteed Sale method: This program assures sellers that their home will sell within a certain timeframe or the real estate agent will buy the property themselves. This provides peace of mind for sellers who need to sell their home quickly, but don’t want to compromise on price.
Seller Carry Financing This advanced real estate method is ideal for buyers who have difficulty obtaining traditional financing. With Seller Carry Financing, the seller acts as the lender and finances the property for the buyer. This allows buyers to purchase a home with little or no money down and can be a great option for buyers with poor credit or those who are self-employed. Some cash buyers may pay mostly cash, except for a small portion of the purchase price that is financed by seller carry.
Guaranteed Offer Sellers who want a hassle-free transaction can use the Guaranteed Offer method. This program guarantees that the seller will receive a cash offer for their home within 24-48 hours, eliminating the need for showings, open houses, or negotiations.
Local Agent Network A group of real estate agents who work together to sell properties in a specific area. This network allows agents to share their listings with other agents in the network, increasing exposure for the property and helping it sell faster.
Land Lease For those who want to purchase land but don’t want to own the property, Land Lease is an advanced real estate option. In this arrangement, the buyer leases the land for a specified period and can build or use the land during that time. This option is ideal for those who want to build a home or business on the land but don’t want to purchase the property outright.
Land Lease or “Ground Lease” also refers to buying a home or other structure in which the land is on a long-term lease, not included in the price of the home. When more typical ownership of the land is included in the price of the home, it’s called “Fee Simple” ownership.
Rent to Own A popular option for those who want to own a home but have difficulty obtaining traditional financing. With Rent to Own, the buyer rents the property for a specified period and has the option to purchase the property at the end of the lease term.
Lofts A type of living space that has become popular in urban areas: These open-concept spaces typically feature high ceilings, large windows, and industrial-style finishes.
Probate Sale When a homeowner passes away, their property may need to be sold through a Probate Sale. This is common if the owner did not have the property in a trust. This process involves selling the property through the court system and can take several months to complete.
Reverse Mortgage Sale For homeowners who need to access the equity in their home, a Reverse Mortgage can be an advanced real estate option. This allows the homeowner to receive a lump sum or regular payments in exchange for some of the equity in their home. When the owner passes away, a Reverse Mortgage Sale can help the inheritor to extract the remaining equity, sometimes more than they might expect.
Short Sale When a homeowner owes more on their mortgage than the home is worth, they may need to sell the property through a Short Sale. This involves negotiating with the lender to accept less than what is owed on the mortgage.
Pre-Foreclosure When a homeowner has missed mortgage payments and is at risk of foreclosure: During this stage, the homeowner can sell the property and pay off the mortgage before the foreclosure process begins.
REO Foreclosure If a property goes into foreclosure and is not sold through a Short Sale or Pre-Foreclosure, it becomes an REO Foreclosure. This means that the property is now owned by the bank and is listed for sale on the market.
FNMA Foreclosures Properties that have been foreclosed on by the Federal National Mortgage Association (FNMA), commonly known as Fannie Mae: These properties are often listed for sale at a discount.
Auction A public sale where a property is sold to the highest bidder. Auctions can be a great way to sell a property quickly and can result in a higher selling price than a traditional sale.
Pocket Listing A property that is not listed on the market, but is available for sale: These properties are typically only available to a select group of buyers and are often sold at a higher price than a traditional listing.
Expired Sale A property that was listed for sale but did not sell before the listing agreement expired: These properties may still be available for sale, but may need to be re-listed with a new agent or at a different price.
FSBO For Sale By Owner, which means that the homeowner is selling their property without the help of a real estate agent: This can be a great way to save money on commission fees, but can also be challenging for homeowners who are not familiar with the real estate market.
FRBO For Rent By Owner means that the homeowner is renting out their property without the help of a property manager or real estate agent. This can be a great way to save money on management fees, but can also be challenging for homeowners who are not familiar with the rental market.
Multi-Unit Buildings with multiple units, such as apartments or condominiums: These properties can be a great investment opportunity for those looking to generate rental income.
Commercial Commercial real estate includes properties used for business purposes, such as office buildings, retail spaces, and warehouses. These properties can be a great investment for buyers looking to generate income from rent or lease agreements.
New Construction New developments, homes or buildings that are being built from scratch: Buyers can purchase these properties before construction is complete, allowing them to customize the home to their liking.
Condominium A type of property ownership where the buyer owns the unit and shares ownership of the common areas with other owners: Condos can be a good option for buyers who want the benefits of homeownership without the maintenance of a single-family home.
Distressed Property Homes that are in poor condition or have other issues, such as foreclosure, bankruptcy or otherwise difficult to sell. These properties can be purchased at a discount but may require significant repairs, renovations, patience or expertise.
Unlisted Properties Properties that are not currently listed for sale but may be available for purchase: Buyers can work with real estate agents to find unlisted properties that match their criteria.
Unclaimed Homes Properties that have been abandoned by the owner and are now owned by the state, or the owner has been otherwise unable to sell the property. These properties can be purchased through a public auction or sold directly to buyers.
Guaranteed Offer in 24 Hours Similar to the Guaranteed Offer method, the Guaranteed Offer in 24 Hours program provides sellers with a cash offer for their property within 24 hours of submitting their information.
Quick Cash Buyer Investors who can purchase properties quickly and with cash: This method can be useful for sellers who need to sell their property quickly or who want to avoid the traditional selling process.
Lease Out Advanced real estate method that allows homeowners to lease out their property to tenants while still retaining ownership of the property. This method can generate rental income for the owner without the need to sell the property. Sometimes a renter tenant can get permission from the owner to sublet the property to another renter, perhaps for a larger rent to generate a profit. This is how some short-term AirBNB style of investors make money without a large capital outlay.
These advanced real estate methods offer buyers and sellers a range of options to buy, sell or generate revenue from a property that may not be available through traditional methods. From distressed properties to unlisted homes and lease out options, advanced real estate methods can help investors and buyers find a property that matches their needs and budget, while sellers and landlords can receive revenue from their property quickly and for a fair price or better. It’s important for buyers and sellers to work with a reputable real estate agent or company who can guide them through the process and ensure that all legal requirements are met. | QUESTIONS OR COMMENTS
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