Isabel Marant said it best, “In Los Angeles, you can have the city life but feel like you’re on vacation at the same time”. When I lived in LA I would drive by the beach on my way to work and think to myself, this is paradise. You can stand on the beach in Santa Monica while looking at the snow on the mountain tops in the distance. LA is the most populated city in California and the second most populated city in the country after New York City. LA has so many landmarks that people come from all over to visit: the Hollywood sign, The Capitol Records Building, Grauman’s Chinese Theatre, Griffith Observatory, Hollywood Boulevard, and so many more. LA is also known as the entertainment capital of the world and a place that is known to the world is the Hollywood Walk of Fame where a reported 10 million tourists visit each year.
But let’s talk about the real estate market in LA. As a private lender, LA is a market that gets us very excited. The California housing market is one of the hottest and most profitable in the United States and the Los Angeles housing market is considered to be one of the premier housing markets for investors. While Los Angeles home prices may be increasing slightly over the next year or so, the fact remains that there are many homes available at fair prices. According to LA.cubed.com typical home prices in LA are about 8 times higher than the median income. According to Zillow.com, the median home value is $687,700 which has gone up 2.7% over the past year.
Since LA is such a hot market for real estate, Sharestates has taken a big interest in forming relationships there. Here are a few projects that we have recently funded.
This first property is located in Encino, California. Encino is a neighborhood that is located in the San Fernando Valley region of LA. The median household income is $78,529 and the average household size is 2.3 people. The neighborhood is filled with quiet blocks and big homes but also has apartment building clusters here and there. Encino is considered to be an upper-middle-class historic neighborhood. Residents love its small-town feel with amenities within walking distance. This property is a residential property where the borrower acquired funds for renovations, such as replacing the cabinets in kitchen and bathroom, relocation of all plumbing/gas fixtures, and updates to the existing structure.
Loan Amount: $1,950,000
Loan Type: Refinance
Property Type: Residential
The second property is located in Central LA, close to Hollywood. There are so many great advantages to living in this area. From walking through Hollywood to a short drive to Dodgers Stadium for some baseball to heading to The Grove for the afternoon to get some shopping done. The list of things to do is endless. This property is an 8 unit multi-family property that the borrower acquired with the intention of adding value through renovations. This large project includes adding two additional units making a total of ten units. New stainless steel appliances will be added, all new paint, new bathrooms, central air conditioning, and each unit will receive a washer/dryer.
Loan Amount: $1,463,000
Loan Type: Purchase
Rehab Fund: $218,285
The last property showcased here today is a residential property located in the neighborhood of Westchester. This neighborhood is close to the beach towns such as Santa Monica and Venice beach on one side of LAX (Los Angeles International Airport) and Manhattan Beach and Hermosa Beach on the other side. This home is only about 2 miles from LAX. The borrower acquired this property as a “Fix & Flip”. Rehab will consist of a complete overhaul of the property starting with the foundation all the way to new plumbing, a new HVAC system, new appliances, new roofing, adding in a gas fireplace, windows, flooring, tile, and hardware like cabinets and doors.
Loan Amount: $920,000
Loan Type: Purchase
Rehab Funds: $609,450
To see more of Sharestates recently funded projects or find out how to get funding for your next real estate project click below.
