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Lindie M., Other/Just Looking in Los Angeles, CA

Downtown LA Lofts - Purchase Question

Asked by Lindie M., Los Angeles, CA Mon Oct 29, 2012

Hello,

I've been seriously considering purchasing a downtown loft and have started looking around. I reached out to a realtor who specializes in downtown lofts and was told that unless I could pay in cash or was willing to purchase a 350k loft (with standard financing), he wouldn't be able to help me.

Is this the standard norm in downtown? I know that there are some buildings which are cash only but I'm curious to know whether this is the case for all lofts. I can do the 20% down and while I can afford the mortgage on a 350k loft, I am just not interested in paying that much for now. Eventually, I'd like to buy an actual house and rent out the loft so my goal is not to put that big of a dent on my savings account. I'd like to find a loft that's about 200k or less and based on what I've seen, there are a couple of options though I'm fairly limited if it's cash only.

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Currently most lofts are running over $300,000 in Downtown, but there are some notable exceptions. I have a client who recently purchased an amazing loft with a beautiful view for $250,000. With inventory extremely low today, and so many buyers competing agaings each other, a buyer's chances of success can double when using an agent or team with a large number of unlisted properties called pocket listings. My team has had by far the most pocket listings, about 90 properties in the past 9 months that other agents and buyers generally did not have access to. Half of my buyers were able to take advantage of our pocket listings to nab a Downtown loft before others had a chance to get them. To access the exclusive pocket listings, call for a free buyer consultation.
0 votes Thank Flag Link Mon Aug 5, 2013
Hi Lin,

Christiano is right, and he's a great downtown agent. The competition is fierce downtown and as stated, most sellers would prefer an all cash offer rather than a financed offer. In addition, some buildings have litigation and there is no financing available. Good idea to work with a downtown agent as they know which buildings are in litigation and can save you a lot of time.

Best of luck,
Paula Samuel
Downtown LA Realty
(310) 795-1261
0 votes Thank Flag Link Tue Nov 13, 2012
Dear Lin,
That's an interesting answer from the "downtown realtor". Sellers do love "all cash" apparently but 350 thousand in cash is a big chunk for most buyers. I think you should check with more Realtors and get more opinions about what your money will buy before being discouraged.
0 votes Thank Flag Link Tue Oct 30, 2012
Lin,
The LOFTS in Downtown go anywhere from $150k to over $1 Million. Some of the buildings in the lower price range have lawsuits which affect financing in the building. The good news is that most of the lawsuits are going away and most of the buildings are taking financing again. The bad news is that inventory is very low and although you dont need to pay cash, when there are multiple offers and you are competing with cash buyers you are in disadvantage. That been said you can still find LOFTS around $200k.
You can find all the LOFTS for sale on our website: http://www.loftway.com. Feel free to contact us and We will be happy to help you find your next place.

Christiano Sampaio
Loftway.com
213.254.5638
chris@loftway.com
0 votes Thank Flag Link Mon Oct 29, 2012
Christiano,

Thank you SO much for your response. It was quite helpful. I did read that a number of buildings were in litigation which raised some concerns. What impact does the litigation have on owners?

Also, as I go through some of the listings, there doesn't seem to be any information which indicates whether a building will accept financing and which will not (e.g. 312 W 5TH ST). I am fully aware of the disadvantage that non cash buyers have but given my long term goals, I am not looking to plop a substantial amount of money on a loft.
Flag Mon Oct 29, 2012
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0 votes Thank Flag Link Mon Oct 29, 2012
That Realtor® is correct, and you should continue to work with them. That is a specialized neighborhood and it pays to know the story of each building. I have sold Downtown, and know that many of the buildings will not qualify for loans. You will find a few that do, but the good inventory down there is, like almost everywhere, limited. Listen to that Realtor®. He or she knows what they are talking about.
Web Reference: http://www.homejane.com
0 votes Thank Flag Link Mon Oct 29, 2012
Hey Lin,

Get ready to be bombarded with agents on here! Every agent/broker is different. There is no "standard" per say, but it may be more common. if he isn't willing to help you, then it's not a good fit.

Get with a broker/agent who can guide you in the right direction. As a friend or family for an agent, or just interview a couple. I would be more than help to help you with your decision.

Good luck and let me know if I can be of assistance to you!
0 votes Thank Flag Link Mon Oct 29, 2012
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