Author Archives: Michael Hiatt

Why Buy LA, Today

Los Angeles is a vibrant city seemingly in perpetual renaissance with a Global trajectory. Now more than ever, Los Angeles, the city that declared itself as such in April, 1850, is now the 2nd largest metropolis in the United States by population. Los Angeles continues to grow, and people come to live here for the predictable year-round sunshine and active-lifestyle, as well as  almost limitless talent pool in a spectrum of business, finance, entertainment, education, manufacturing, technology and the list goes on.

Beyond a popular national destination, Los Angeles is fast becoming a Global one. There are roughly 200 ethnicities that call Los Angeles home: Truly a city of global diversity.

Homes and real estate are built on the land and “open space” model, as opposed to a vertical, high rise living. Yes, new construction is changing all that, because global cities of the future will be built around the live, work and cultural center with their unique identities.

On a national scale, Los Angeles is ranked about the 6th highest home price and affordability in the US based on price per sq. ft. Globally, Los Angeles is still a real estate secret and a great global value. There is clearly room to grow in home prices and value here.

The US and Los Angeles home buying opportunities are today…. Don’t hesitate: Interest rates are at a low, inventories are rising, and value buys exist in many neighborhoods.

Consider the scale of the today’s LA Renaissance:

  1. Infrastructure Investment of $120 Billion over 40 years for transportation and expand public transportation.
  2. 28 by’28. The Summer Olympic and Paralympic games in 2028 with 28 designated public projects to be completed. LA Stadium a world class sports and entertainment complex to be completed in 2020 and a host to the Super Bowl in 2021.
  3. San Pedro/Long Beach The # 1 Shipping Port in the Western Hemisphere.
  4. LAX. Los Angeles International Airport. #1 Origin and Destination Airport in the US and 4th Biggest Airport in the world with 87.5 Million passengers served in 2018. $14 Billion + ongoing capital improvement projects.

Windows of opportunity come and go as do fluctuating markets. However, the historical rolling market average in Los Angeles residential real estate out-paces inflation, appreciates over time and you live in a city with the reputation of “stars by day,” and sunshine “365 days a year.” Neither is wholly true, but the experience and lifestyle in Los Angeles will deliver on its investment and global reputation.

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Valentine’s Day in LA With Your Furry Friend

One of the best ways to celebrate Valentine’s Day is with a dog. Cuddle a puppy who will love you unconditionally, never let you down, and always give you lots of kisses. Unlike your last ex, you’ll never kick him/her out the door. A dog will never disappoint you! Following are suggestions on how to spend a lovely time in Los Angeles with your favorite furry significant other:

1. Re-watch Lady and the Tramp

February 13-15, 2019 7 pm
El Capitan Theatre Hollywood
Tickets $10
Call 1.800. DISNEY6 to book

2.  Bark and Rock Out to Live Music in Grand Park, Downtown

3. Grand Park Lovers Rock
Featuring DUB CLUB
February 14, 2019
6-11 PM
Grand Park Olive Court (between Grand and Hill)
Free
All Ages and Breeds Welcome

Groove to the soulful vibes of Lovers Rock reggae with LA’s top ranking reggae selectors of DUB CLUB! Bring your own special picnic dinner or enjoy the food trucks.

Click Here for More Information

4.  Find Momo Pup-Up Gallery Launch Pawty

February 19, 2019 6:30 PM to 8:30 PM
Healthy Spot 6320 Topanga Canyon Blvd., #1635, Los Angeles, CA 91367

Andrew Knapp’s photos from his latest book. which features his travel Momo travel across the world with his dog Momo.  Admission is free. Click Here for More Information

5.  Eat at a Dog Friendly Restaurant:

Don’t leave Fido home when it’s time for dinner. A dog’s gotta eat too! And no matter where you’re headed, there are so manyn great sidewalk cafes, brew pubs, coffee shops, or other eateries that will welcome your pup to join you at an outdoor table. Bone appetit!

Best Dog Friendly Restaurants in LA

6.  Meet Up with Herky the Cavalier at Cavology Pup Up!

CAVOLOGY is an accessories brand designed by dog lovers for dog lovers. Inspired by their two Cavaliers, the brand focuses on providing high quality, stylish accessories that caters to active lifestyles of dog parents. Click Here For More Information

7.  Get a “Bow Wow Workout” In

$15.00
Monday, Wednesday & Friday 6:00 pm 
Runyon Canyon (Fuller entrance)

Spend time with your pooch while losing yours!

Click Here For More Information

8.  Pamper your Best Friend at a Doggie Spa:

You know there is nothing better than a massage, facial, mani/pedi or body treatment.  Doesn’t your precious pet deserve the same?

Click Here for LA Pet Pampering

9.  Walk Your Dog On (Oops, I mean Near) The Beach

If you are doggone determined to walk your dog on the beach, check out Rosie’s Dog Beach in Long Beach, one of the only dog friendly beaches in the LA area.  A great alternative is Palisades Park in Santa Monica.

Click Here for More Information

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The Elite Rental Market Claims the New Palisades Village

If you have not already read or heard, some of the priciest rentals in the Westside are right here in our Palisades Village backyard: In addition to the spectacular Palisades Village retail development, there are now being offered, 8-luxury long term (1-year to 18 months) rental apartments along Sunset and Swarthmore. At this writing, two of the six are already rented. Each unit is exquisitely finished and appointed; private/secure terraces and balconies; the services and amenities of a five-star hotel; and a “100 walking score” to the Palisades Village and… ah… the Palisades Village…. New and original. Floor plans range from one to three bedroom (2 plus, den).
One of my colleagues, a well published, local realtor, was quick to publish in the Palisadian Post recently, “I would be very pleasantly surprised if our local market could support a Sunset-facing apartment at more than $30,000 per month, even if it is three bedrooms and baths, unless other services besides direct access from parking below are included.”
Clearly, the self-service side of this realtor’s quote is only eclipsed by the backward perspective and backhand praise of the evolution of the Palisades, the quality the Palisades Village adds to our community, and our Palisades global market position in a Westside and Los Angeles home market story that still delivers market value pricing:
Comparative Luxury Westside Rentals: Based on published entry level rates
Average price per sf
Palisades Village $11.83 per sf/per month
10000 Santa Monica Blvd. New development, Century City $10.69 per sf/per month
301 Ocean Ave, New Development, Santa Monica $10.69 per sf/ per month
1221 Ocean Ave. Santa Monica, Older residence $9.61 per sf/ per month

Consider: Malibu Beach Inn (per night, January rate) $1,049 per night.
(If the rate were $30K/mo., at 1000sf: $30 per sf/per month)

The Rental Principal; Offering price is to vacancy rate, as failure is to success. We will revisit this elite luxury rental conundrum in a year when the Residences at Palisades Village are 100% rented (a professional prediction from your friendly Palisades Luxury Rental Realtor)

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Charting a Course in a Transitional Market: What First Time Sellers Need to Know

Many a seasoned home owner will agonizingly recount the opportunities that were missed through those wicked “Buyer” markets when values tanked and under-water, cash strapped Sellers needed to sell. Even a Southern California homeowner will tell a story or two of rock bottom prices, painful interest rates and market killer, impossible lending practices. “Doom and gloomers” come and go. The intrinsic long-term values and prices of real estate and home ownership remain.

Over the past several years of a Seller’s Market (not to be confused with the current almost 9-year appreciating market), individual home ownership percentages have actually decreased. As one result, there are statistically fewer first time Sellers. The ramifications of this trend is subject for another time along with addressing of the challenges to our real estate industry.

Here are the opportunities, mind sets and strategies to best advantage the transitional market.

A transitional market, first, is an opportune time to make moves and for many first timers Buyers and Seller to invest/move up and/or “get wet.” I know this is contrary to Sell at the peak and Buy at the bottom. For you wunderkind, keep procrastinating.

Given there are Buy and Sell “deals” in every market. If you question that, read on…. Then call me.

Here are the top 5 ways to prosper and profit in a transitional market. The following are meant for Sellers, who are pursuing purchases in a particular market area (i.e. the Westside)

  1. Define your reason for selling and commit to it: Move-up. Down size. Build long term equity. Move out of area altogether. Alternately, consider keeping your home for investment and commit to managing your asset for fun and profit. The “what if” options can offer creative and exciting changes.
  2. Define realistically, “a deal”. Understand the long term value proposition. In the Los Angeles market that is a relatively high percentage scenario, If you are a flipper, however, you may need to look at different market areas for the short term profits; that is your number one consideration. Transitional markets are uncertain and harder to forecast turnaround time tables and realize ROI.
  3. Make your home move-in ready. Maximize the emotional value. Make the investment to sell, even upgrades should be carefully considered. Buyers will value your care and appreciate the better dollar investment.
  4. Hire a professional agent who clearly understands your goals and can develop a plan to move those real estate objectives forward. As important as the sell-side marketing strategy, is the buy-side strategy to purchase. When your listing agent can’t or won’t manage both sides, find another agent, one who is centered on your goals and can deal with the timing and the intricacies to construct a win-win scenario. Your agent is your fiduciary representative and market expert. More than ever, a transitional market will demand and reward the strong agent/client relationship.
  5. Accept and capitalize on the Sell low/Buy low market cycle. If you are selling for upgrade or Selling to free cash to invest,) now is the time to look at buy opportunities. Pursue the upgrade locations. You will sell and buy “horizontally.” Your home has most likely spiked in value and prices have leveled off or beginning to drop. Accept it: Because so has your neighbors and in those homes in “upgrade” locations. Buy location. Set your sights on better locations. Where do you want to live? Where do you want to invest? Marginal locations (busy streets, less desirable neighborhood and street locations, etc.) will take even steeper price drops.

 

While others sit on the sidelines, sell and invest in your future with a contrarian mindset, and a transitional market can be rewarding

 

Connect with me or more strategies on how to Sell and prosper in this transitional market.

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The Delicate Balance Between Home Buyers and Home Sellers

The Delicate Balance Between Home Buyers and Home Sellers; or 5 reasons to Buy or
Sell before year end … and if your still thinking about it, consider before Spring

Wen I came across a blog posting on “5 Reasons to Sell before Spring,” I was compelled to encapsulate, edit, expand and educate those who have not acted upon advice I have been preaching to clients since end of 2nd quarter: Year end is the best time to buy, and 2013 year end maybe the best window of opportunity for some time to come. With serious Buyers in the market, home Sellers need to seize the opportunities, as well. Here are 5 reasons:

  1. SERIOUS BUYERS ARE IN THE MARKET.  Fall and Winter are not usually inviting times to drive or walk and visit homes as a Sunday past time. Yes, as good as Spring and Summer are with shear numbers of Buyers and lookers, Fall and Winter (year-end) have a greater percentage of ready to purchase Buyers. With Holiday past times of visiting Malls or preparing for a long winter, Sellers get your listing ready and be prepared to meet your act-now Buyers.
  2. THERE IS FAR LESS COMPETITION: SUPPLIES ARE SEASONALLY LOW. Those Sellers who wait for the spring are guaranteed to have far greater competition. Consider if you have the best house in the neighborhood, a perfect gem, it may not matter when you put your house on the market. For the 99.9% rest of us, Sellers should consider Buyers have choices, and in the Spring, they have many more.
  3. THERE WILL NEVER BE A BETTER TIME… TO MOVE-UP OR DOWN (SIZE). In most markets, home values have spiked. Through the first half of 2013, prices have recovered their loses, almost overnight, those suffered since 2007. Home values have held steady and projections are home values will appreciate by more than 25% from now through 2018. Consider further interest rates have remained at historical lows and all indications are there is only one      way to go from here… up. Which brings me to the mortgage lenders and getting a “yes” on that loan.
  4. THE PROCESS WILL BE QUICKER… BUT NOT LESS THOROUGH. There is money to lend and the industry is “healthy” and competitive. Lenders have embraced technology and have streamlined the process. Most qualified lending institutions can get a loan approved within 21 days. If they can’t meet those deadlines, I suggest shopping for a new lender. Lenders are      also offering a greater number of lending programs today and expanding the qualified buyer pool such as small business owners and asset based borrowers. Spring and Summer and especially this past first half of 2013, lenders were inundated with both purchase and refinancing loan requests. Both of these have now slowed in the winter facilitating the shorter timelines.
  5. IT’S TIME TO MOVE ON WITH YOUR LIFE. Examine the reasons you decided to sell in the first place and decide whether it is worth waiting. You have the power to take back control of the selling process by pricing your home at market value to guarantee it sells. Stop chasing the      market down and right now, pricing and year-end closings are the Buyer’s triggers.

There are buys to be made right now. Connect and deploy an agent to dig deep and it will happen; a win for all parties to the sale transaction. Much success.

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Morning Loreto Bay: The Evolution of a Community

Morning Loreto Bay

Letters to Loreto

Morning Loreto Bay: The Evolution of a Community

Spectacular shadowed crescent at sunrise looking towards the bell tower of the soon to be hotel centerpiece of the Loreto Baja Golf Resort Spa, once and formerly the jewel, low-key, quaint Loreto Bay Inn. As I watch this day unravel, the realization of a community has at last come. A bold development concept started in early 2000, Loreto Bay will soon realize its highest and best use; an amalgamation of a restless dream, and now a recent hotel and land acquisition of one of the world’s richest men, Mexican multi-billionaire, Carlos Slim.

Many have endured. Some failed miserably. Today it is an oasis. Natural water aquifers are overflowing, and swelling desert land, and turning them green, and people are returning, “treading lightly” back to this world class fishing resort, culturally enriched traditions of the once capital and economic and religious centers of the Californias (when the Spaniards controlled the Pacific coast and north to the Oregon border up until the mid-1800’s).

Loreto Bay was Baja California’s “first” sustainable resort Read More Here. A thumb-nail mandate of “sustainability” is to be environmentally balance (fit into the environment and enhance it in size and design) ecologically balanced (eco-friendly) and socially balanced (improve and support the surrounding community and native people). With these lofty goals a land purchase of over 8,000 acres was transacted with 3,000 devoted to development which included almost a mile of coveted beach front. Lots were drawn and sales of 500 homes were completed by 2005. Construction began on a modern day interpretation of adobe built homes in an old-world style community of tightly knit of houses, casitas and condos centered around plaza style courtyards and walking streets (no cars and few garages) and verdant estuaries and marina for sailing. A new international airport was completed and the promise was on its way to being fulfilled.

Then 2007 happened and world fortunes changed; this part of the globe, this country, this Baja area, this Loreto town (from where the developers and builders had just completed my casita style attached home) and this homeowner, changed as well. I would become a participant on a battlefield of crushed economies, teetering financial institutions, construction debacles, social upheaval, demoralizing press and misunderstood drug wars. Our new home and priceless Loreto Bay development became a war zone; fenced-up, dug-up and messed-up. My wife and I, however, were the lucky ones.

As I write this letter today, Loreto Bay and its adjacent township, known as Nopolo, are poised for sensible expansion with new highway construction, operational airport and increasing flights, emergency treatment center/hospital (partially funded by the original Loreto Bay development’s sustainability commitment), and new homes being finished and people moving-in. A vibrant community is taking shape and in motion with colorful sidewalks and street landscaping of natural stone and indigenous plants, cactus and flowers,  wonderful restaurants and coffee houses among them, the Wine Bar (Wil and Cynthia’s place) and El Corazon (serving bold, full bodied coffee roasted in Vera Cruz principally), a community center, property management and construction companies, Vive Loreto, sport rentals, (and I must mention George at the beach shack renting kayaks and other water sport equipment next to the hotel) Loreto’s most prestigious furniture showroom, Del Sol, run by the talented owner and designer, Gustavo, and a Saturday street scene of vendors on the Loreto Paseo and in-town on Sunday a local flea market…. and coming soon a “5 Star” Ostar’s newest Luxury Hotel property, Loreto Baja Golf Resort & Spa. When in Loreto, however, don’t miss the opportunities to mix in the older, established stops along with the new offerings in Loreto Bay and in town.

Welcome Carlos Slim, there is a wonderful opportunity ahead.

Paseo Loreto

Letters to Loerto is a first in a series of entries about Loreto Bay. If anyone is interested in more information on hotels, housing, places to tour, eateries, shopping or sport, please connect or comment.

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Selling High – Consider A Remodel

Some Professional Advice:

One of the keys to a very successful sale is to tap into your homes highest potential, beauty and value: That often means undertaking a remodel or partial remodel that you have likely thought (or dreamed) about and/or put off. Selling your house is as much an emotional decision as a business one and the investment in a remodel often can pay big dividends. The best remodels incidentally are those that make your home “just perfect” and now you may not want to leave or sell. Most importantly, however, move forward on  it now before you put it on the market and depending on your available cash, budget  or potential to secure a loan, read the following link from an article I think is full of knowledgeable, prudent advice. Pick one or two of the areas to concentrate on and improve. Seek the advice of a professional agent. Secure a good contractor and architect if needed and city permits if required and put your home in high value mode.

My top three:

  1. Make light and bright:  Put a fresh light coat of paint and if your budget can stand it, improve room flow hop over to this website. Wide open spaces that easily flow indoor and outdoor rather than nooks, crannies, hallways, passages and many separate rooms is the market choice today.
  2. Boost curb appeal: Paint, plant, trim add color, flowers, small details have big returns.
  3. Update/modernize kitchens, and older bathrooms, starting with the Master first: Big closets, separate dressing areas and hygiene is the rule today. The move to privacy and coming together in the middle with a two-door, common shower or dual access tub is a romantic, intimate meeting point and a start to a great morning or evening.

Enjoy and much success!

Click on the link below and let me hear your personal thoughts and challenges. I can share with you some personal and financially rewarding stories that might just be the inspiration and direction that will make a difference.

Pro advice about where to put your remodeling dollars for success in selling your home
http://www.houzz.com/ideabooks/17382157/list/The-Latest-Info-on-Renovating-Your-Home-to-Sell

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