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Proud to be an American 🇺🇸 – TBG Update 7/2/2023

Proud to be an American 🇺🇸 – TBG Update 7/2/2023

126RossmoreAve

This week we explored how a construction loan will work for an owner user who buys our listing at 126 N Rossmore. The lender finances 65-70% of the purchase price at a rate in the high 5’s/low 6’s and closes the purchase. And then the same lender funds the construction loan with a similar structure, except it’s interest only, for the duration of the remodel project; 65-70% of the construction is financed with the owner putting the remainder down. The remodel money is released from the construction loan much the same way a HELOC works; the owner gets a checkbook and the owner writes checks as construction payments are due. Interest payments only start once the check is written and the money is spent. As soon as the construction is complete, the construction loan rolls over and becomes part of the acquisition loan so that there is just one loan as soon as the house is ready and the owner moves in.

We had two lawyer buyers apply this week for loans at 5.125-5.135% fixed for 30 years with 10% down. There’s a 5-7 business day full approval process and then the preapproval is only subject to an accepted offer, appraisal, and title reports. On the sale we currently have in escrow with this type of loan the appraiser came out almost immediately after acceptance.

For the first time since interest rates went up, we got an offer this week where a buyer filled in a section of the offer titled “financing” asking the seller for a credit of 3% against their loan amount in order to buy down the interest rate so that their payments can be lower. Negotiations on the buy down are part of the counteroffer sent back.

The Los Angeles Wildlife Ordinance got an initial approval on June 20.The L.A. ordinance, with final approval, would limit how much of a homeowner’s property can be covered in structures and requires the use of animal-friendly architecture for new development.The rules wouldapply to hillside communities between Griffith Park and the 405 Freeway, including Sherman Oaks, Hollywood Hills, Bel Air, Laurel Canyon and Beverly Crest. The most controversial aspect is a requirement that proposed new buildings and additions, including basements, cannot total more than 50% of a lot’s square footage. The goal is to preserve natural habitat and ensure there are enough wildlife corridors for mammals such as bobcats and mountain lions to pass through. A buyer who is concerned that a new restriction on basements might one day extend to our local Miracle Mile/Beverly Grove area called us immediately with urgency to find a piece of land where he can build a house with a basement now.

One of my favorite parts of the work I do is navigating multiple offers. I’m grateful that we’re managing multiple interested parties on two properties at the moment. I like to dive deep and explore each offer fully at every stage to figure out which offer is likely to be most lucrative for the sellers upon close. We explore, assess, and strategize at two different points in the deal. The first time is when the initial offers come in and, together with the seller, we choose which offer to accept. At this point, we consider price, all terms, and motivation to purchase. The second time is when the buyer with the accepted offer delivers to the seller a request for repairs and asks for a reduction in the purchase price. We independently research the conditions uncovered on the property to figure out what the house truly needs, and then we give the backup buyers a second shot at negotiating for the house given the house’s condition. Whoever presents the best overall deal to the seller post inspections will get the house, even if it means starting the timetable over on the escrow period because we’re jumping to a new buyer and starting a new transaction. We’re fully committed at every stage to figuring out how we can sell the property to net the seller the most money. In today’s market, given the limited supply, properties that are priced right and primed to sell are getting multiple offers and it’s interesting to concentrate and to navigate it so the seller secures the best deal possible out there. I love trying our absolute hardest to get it right! (I love even more getting it just right :).)

This past week it was extraordinarily fun to do a photo + video shoot with our team to commemorate being named by Real Trends #4 Medium Team in the City of Los Angeles for Transaction Sides and #6 Medium Team in Los Angeles for Sales Volume. I wholeheartedly believe that as a group we’re collectively so much smarter than individually on our own. I love our work family. Collaborating and iterating together to get our service, our process, and our attention to detail the best we can is another one of my favorite parts of work.

I’m counting down the minutes until Dovid, Avigail and Baby Chaim come to visit for the weekend this week! I love having near-in-the-future plans to see the kids and then counting down the seconds until the time arrives! Happy Fourth of July! Even though I love flying all over the world just to visit, I absolutely love even more to live in America!

Have an awesome holiday!!!

Xoxoxoxo,

Sheri

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