Any advice for purchasing condos? I’ve heard they can be a tricky investment, but if you score the right neighborhood you could see profits. Inglewood has a glut of fairly priced condos with relatively low HOA fees. Does the new light rail line help out the value of those North Inglewood condo properties?

By gee714 on 01.06.17 10:28am

Have you been seeing any new creative financing schemes that counter the tighter lending restrictions? It’s been my observation that folks relying on FHA loans for their offers simply can’t compete with all-cash and traditional mortgage offers, so as a former loan officer what would be your advice for people who are interested in buying but don’t look as good on paper? Letter-writing used to work, but now institutional investors have co-opted that tactic so it’s hard to tell a sincere buyer letter from a sham one.

By pdan on 01.06.17 11:06am

Hi pdan!
Relationships are everything. Make sure that you are working with a buyer’s agent who has strong relationships with the agents who are actually listing the properties. Also, your agent should have a strong presence in the neighborhood so that they can vouch for you, even though you might not have as much "skin in the game" as the other offers. There’s nothing wrong with FHA, but you must be willing to come in super strong with your offer price! And don’t lose faith in those "love letters" to the seller—they still work!! Chin up and don’t give up!!
Best of luck,
HP

By hpresha on 01.06.17 1:58pm

A common and extremely broad question: What do you believe are LA’s next up-and-coming neighborhoods?

By GuyOnLACurbed on 01.06.17 11:14am

Hi GuyOnLACurbed…
My top picks are:
Windsor Hills
Inglewood
Park Mesa Heights
Watts (I’m not KIDDING!!)
~HPresha

By hpresha on 01.06.17 2:03pm

Interesting that most of your perceived "Up and Comings" are previously cheaper-largely minority cities, south of the Culver City Mountains East of the 405. Although I guess it makes sense b/c clearly Santa Monica, Venice, Marina Del Ray, Hollywood, WeHo, Los Feliz, Silverlake, EchoPark, Highland Park, ect (the above I 10 cities) are all pretty severely developed/gentrified/whatever synonym one wants to use.

I’m actually highly curious however about your Watts suggestion. I mean isn’t the proximity to housing projects, significant crime and low amenities a detractor on your scale? I use to work in Real Estate Development (5 years ago) and while I wasn’t afraid of being shot simply driving down areas in Watts, I SERIOUSLY would caution walking alone at night…even with a friend and dog.

By USCTrojan90 on 01.06.17 2:38pm

good morning Heather, we have mutual acquaintances from the days of high school in LA, I went to Uni high school, in west LA in the late 80s.
i guess my questions are what are you thoughts for buying distress properties in the area and surrounding area’s you serve? Also,your thoughts on probate properties and short sales. Lastly giving the growing trend of gentrification in certain parts of Jefferson park, leimet park and the border of Inglewood/los angeles, , it is still possible to get an affordable home in theses areas? seems like home prices past west of van ness are going up, yet the price for home east of starting east of western are lower but the areas are a little to be desired. Any advice or thoughts to this would be much appreciated-thanks have a good one.

By Kj J on 01.06.17 11:29am

Hi KJ…
U-Town in the house—hey!! Happy New Year.
Buying a distressed property might not be my best recommendation for a first time buyer unless you’ve got a bag of cash! There are still pockets of South LA where you can buy a home that’s move in ready under $450k but you must be flexible on location. Try to search these zip codes: 90044 and 90047. Also, if you haven’t already—get your pre-approval! Your max approved price will dictate where it will be possible for you to live. Also, don’t rule out buying a condo or townhouse—-that may be your best opportunity to own property in the neighborhood with a better future value!
Stay up,
~HP

By hpresha on 01.06.17 2:12pm

Hi heather-thanks for responding. have happy new year as well
thanks for the zip codes 90047 was definitely one of them i was looking at.
maybe we will bump into each other in leimert park one day after the metro construction is over.
take care keep of the good work.
kj. uni 1989

By Kj J on 01.06.17 2:19pm

Good afternoon. How much do first time buyers purchasing homes around the areas that you cover put down?

By subaruwrx on 01.06.17 12:02pm

Hi Subaruwrx,
Generally speaking, agents in South LA are well versed in FHA and not hesitant to take your offer if your price is right ($$$)…minimum downpayment for an FHA loan is 3.5%. Make sure to include a letter to the seller about yourself and everything you love about the house and the community—-it works!
Make it happen!
~HP

By hpresha on 01.06.17 2:15pm

Is buying high priced real estate houses or condos near train stations like the Expo Line worth it ? Does their value hold up over time ? Does their value increase when future Metro lines and railways are planned ?

By Whitman Lam on 01.06.17 12:08pm

Hi Whitman Lam…
Absolutely! Investors had been coming through the Crenshaw Community for the past 10 years or so, buying distressed properties because they hear about the prospects of the train being built down Crenshaw Blvd. People want convenience and walkability where they live—if there is a train close by that goes straight to the beach, I don’t see the home values going down ever. Just my two cents though. Hope that helps.
Happy New Year!
~HP

By hpresha on 01.06.17 2:21pm

Hi Heather. I’m 22 years old and as of right now make about 40K a year, no kids, no spouse. I am really interested in buying a home (house, apartment, condo, townhouse, whichever one really). Based on mortgage calculations, I can probably afford a home that costs between $150-200K, which basically doesn’t exist in LA. I work in Santa Monica. Given this information, what is your honest recommendation for me? Is it even possible for me to buy a home (one bedroom apartments are probably my best bet, right?)? Or should I continue to rent? I just feel that I am throwing hundreds of dollars away by renting when I can buy something that will most likely increase in value over time.

By sg789 on 01.06.17 12:24pm

Awww, sg789!
I’m sending you a hug through the computer! I feel for you and hear so many people just like you who want to get into the market but feel defeated because of the prices. Here is what I recommend—find a friend or family member who can go join you in the purchase. I helped Two best friends not too long ago—they had the same frustration as you, so they put their money together and bought a great place in Leimert Park. They are really happy. Make sure that you pick someone you really trust and establish rules/expectations from the beginning—put it on paper! It can work. Also, if you’re down to leave the immediate LA area—check out long Beach condos—-still fairly affordable but you will need a 5% down payment. ALSO—-VERY IMPORTANT…talk directly to a loan officer about how much you can afford. Don’t try to figure it out on your own or use an online calculators—that’s doesn’t work. Everyone’s financial profile is unique. Good luck to you, don’t give up and happy new year!!!
~HP

By hpresha on 01.06.17 2:32pm

As areas like Inglewood get more expensive is that going to increase the prices to the west in areas such as Westchester or El Segundo, or have those areas plateaued in price?

Also now that the stadium is moving along how do you predict Inglewood and cities around are going to transform, in what stages?

By frenemie on 01.06.17 1:52pm

Hi frenemie…
Sorry, I wrote you back earlier but I don’t see my response here. Just in case I will repost:
In my opinion, I wouldn’t say that anything has plateaued in Westchester and El Segundo. Growth is still there in those areas but not as rapid as Inglewood. As I’m sure you know Inglewood values have increased substantially due to the Rams Stadium and development of the Hollywood Park project, which will includes new homes, 800,000sf of retail, 700,000sf of office space, 25acres of recreational park and of course the 80k seat stadium—all not too far from the new metro line. Of course all of this is going to bring more jobs and people will want to be close to their jobs—values will be off the chain! I predict that you will see more and more buyers start looking South and South east past Inglewood into areas like West Athens, Compton and Watts. Let’s see if I’m right. : )
More later…
~HP

By hpresha on 01.06.17 7:36pm

Honestly, do you think LA is in another housing bubble? I grew up in South LA where houses are now start in the 400-500K range, which require a household income of 100K. People in the neighborhood do not make that kind of money. While I make around that money, I don’t think I would buy to stay in the ’hood again. Our economy, while strong, is beginning to slow down. Also, there is the uncertainty surround the president-elect. The rapid appreciation in RE we have seen in the last couple of years cannot sustain itself.

My plan is to save – save -save -save as much for a down payment then buy in around 2019 after the market has stabilized and corrected itself. Hoping that the house now going for 500K will be 300K in 2019. Thoughts?

By greybox86 on 01.06.17 1:53pm

Hi greybox86…
Listen, I know this might sound crazy but I don’t pay attention to the market hype. If someone really wants to buy a home, there is a way to make it happen. It may not come in a box with a bow on it, but at least you will own a piece of property in CA which is what EVERYONE wants!! Here’s what I think you should do—call a loan officer and have them examine your financial profile in detail. Then you can come up with a serious game plan based on real numbers. Having that info will help you make a solid decision on your timeline. Bottom line is the loan is truly the foundation of the entire purchase process….no money, no house. EVERYTHING has got to be dollarized from the beginning and throughout the process. You can do it. Call the loan officer next week to schedule an appointment—don’t wait for 2019 when you might be able to get in the game now or sooner.
Good luck my friend!
~HP

By hpresha on 01.06.17 2:54pm

Hi Heather,

What’s your impression of the pocket listings market right now? Is there substantial inventory off MLS? Why is this and what’s the best way to find these homes and make offers?

By AngeloTransplant on 01.06.17 1:56pm

Hi…
Great question Angelo!
Inventory is area specific, but with regards to the Crenshaw Community and South LA, I can say that I feel like it’s going to open up a bit more about the second quarter of 2017. Sellers who were on the fence before are starting to wake up and see how much their neighbors are getting for their homes. Pocket listing are still around but most sellers want to get maximum exposure/multiple offers by going on the MLS. Either way, best way to find pocket listings is to make sure that you are working with a buyer’s agent who has strong relationships with the agents who are actually listing the properties in the area you want to live. Hope that helps!
Happy New Year!
~HP

By hpresha on 01.06.17 3:04pm

Hi Heather,

Do you have any advice for the 203K Rehab loan process? We’re in escrow now and looking for a 203k HUD-approved consultant and contractor in Los Angeles.

Thanks!

By scarlettegramling on 01.06.17 2:16pm

Hi Scarlett…
Congrats on your escrow! Best thing to do is go to Thumbtack.com or AngiesList.com and submit a request that you need a 203k approved contractor. Then you can interview a few people and see who is the best fit. Be sure to check them out first with regards to licenses and yelp.com review, etc. It’s a long process and you want to make sure that you are hiring the best person for the job.
Good luck with it all!
~HP

By hpresha on 01.06.17 3:20pm

I own an apartment building in the Baldwin Village and there’s significant changes on the horizon. Aside from Kaiser and the Metro Rail, what else is in store for the area?

Additionally, I’m curious how much higher you see property values going?

Thank you in advance

K

By HARDWARE10 on 01.06.17 2:37pm

Hi K…
Lot’s of buyers have asked me about buying a building in Baldwin Village lately—-you are so fortunate to already have one!! Hang on to it! I haven’t heard of anything other that Kaiser being built there as of yet. But, I have heard rumors of a Hotel and office building coming to the east side of the Baldwin Hills Crenshaw Mall. Some homeowners are not too happy with the idea either, so the process has been delayed. You should consider going to the Neighborhood Council meetings. You will hear everything you want to know there and I’m sure they really need more community participation. Here is the link for the site:

With regards to future values in the Crenshaw Community, I don’t see prices going down anytime soon. I hear that they are ahead of schedule on construction for the 2020 Crenshaw Metro Line!!
Best,
~HP

Best,
~HP

By hpresha on 01.06.17 3:47pm