Houston is one of the fastest-growing major cities in the U.S., and with a metro area that is bigger than the state of New Jersey, it has room to grow. With 2.2 million residents, Houston is the fourth most populated city in the United States. It’s the largest city in the South and the Southwest and it attracts a wonderful mix of arts, business, pro-sports, and award-winning cuisine. Houston is known for its mild, year-round temperatures and has a lot of culture-filled neighborhoods, gallery spaces, and attractions such as the famous The Lyndon B. Johnson Space Center where human spaceflight training, research, and flight control are conducted. There are also 25 companies on the Fortune 500 list that are located in The Energy Capital of the World, as Houston is known. Houstonians also take barbecue pretty seriously and are known for some big-name BBQ joints as well some no-frill, hole-in-the-wall places.

But let’s talk about real estate trends in Houston considering Texas is quickly becoming the most moved to-state in the US next to Florida according to Life Storage Blog. The blog also notes that living in Houston is much more affordable than many other large cities across the country. All things considered, Houston’s cost of living is very reasonable, but it does fluctuate based on several factors, including where you live, where you shop and what you enjoy doing to occupy your time. In a city like Houston, living close to work can save you money on gas and commute time, but might cost you more in living expenses. Movoto says as the population grows in Houston, so does the younger crowd. The median age in Houston is now 33 and according to Metrodepth, the Real estate market predictions for Houston suggest that home prices will likely continue to rise through 2019. Supply is a big part of the outlook. The Houston housing market is still experiencing a shortage of inventory relative to the demand from buyers in the market because unemployment rates in Houston are down tremendously. As of 2019, the unemployment rate is close to 3.7%. Since low unemployment and housing markets typically go hand in hand, inventory is also low. Metrodepth also reports that according to a January 2019 report from the Houston Association of REALTORS® (HAR), the average home price in Houston rose to $306,314 in December 2018. That was an increase of 4.7% from a year earlier. The median price for a single-family home rose 3.4% to land at $240,000 in December. 

Sharestates has formed many relationships with builders in Houston over the years, and recently funded a handful of exciting properties. The first property is located in a neighborhood called River Oaks. This is a residential neighborhood that is located in a very central part of Houston. This area was named one of the most expensive neighborhoods in Houston. The median home price is over $2.5M. River Oaks has its own police force and River Oaks elementary school was ranked best in Houston.

 

 

 

This property is a 4 bedroom, 5 bathroom house that is a little over 5,000 square feet. Rehab consisted of a new roof, demolition, electrical work, plumbing, new kitchen, and bathroom cabinets, all new appliances and much more.

  • Loan Amount: $2,660,000
  • Loan Type: Purchase
  • Property Type: Residential
  • Rehab Budget: $370,700 
  • LTV: 77%
  • LTC: 79%
  • ARV: 65%

 

 

 

This next property is a commercial property located in the heart of the business district of Houston very close to Minute Maid Park (home of the World Series championship team, the Houston Astros). Property rehab included drywall, appliances, countertops, and interior paint.

  • Loan Amount: $1,950,000
  • Loan Type: Refinance
  • Property Type: Commercial
  • Rehab Budget: $53,500 
  • LTV: 67%
  • LTC: 62%
  • ARV: 63%

 

 

The next property is located in an area called Memorial Village. Memorial Village is made up of 6 small villages each with its own independent charm. This property was a complete “fix & flip”. The total rehab budget was over $500K. Rehab included demolition, a new kitchen, painting, new HVAC system, water & sewer system, drywall & spackle, roofing, and much more.

 

  • Loan Amount: $1,800,000
  • Loan Type: Refinance
  • Property Type: Residential
  • Rehab Budget: $535,000 
  • LTV: 71%
  • LTC: 110%
  • ARV: 64%

 

For more information on properties we have funded or for more information about our loan programs click below.

Homeowner trends from 2002 to 2018 show that fewer people overall own their own homes. Demographically, people are moving from rural areas to urban areas where homeownership levels are generally higher. Also, homeownership among the white population is about 70 percent versus 50 percent for blacks and Hispanics. Homeownership is also lower among people under 35 than for older people. In fact, the stats show that the older a person is, the more likely they are to own their home.

In 2004, 82 percent of people between 55 and 64 owned their homes, but that level had dropped to 75 percent in 2018. Seventy-seven percent of people 45 to 54 owned their own homes in 2004 versus 70 percent in 2018. Among 35 to 44-year-olds, homeownership dropped from 69 percent in 2004 to 60 percent in 2018. For Americans 35 and under, homeownership peaked at 43 percent in 2004 and had fallen to 36 percent by 2018. These stats may be alarming, but it indicates a growing market for rental properties.

 Builders Should Look to New Construction on Rentals

Single-family rental properties have been the norm in metro areas all across the U.S. But that could be changing as cities and states all across the country are doing away with zoning ordinances that favor single-family only residential areas. That could mean there is about to be a shift to multifamily rental properties from New York to California. If that is the case, then I’d expect a run on commercial financing for these property construction projects.

Millennials have been putting off big decisions in their lives for later than previous ages. That means they tend to rent instead of buying well into their 30s and 40s, which is why we have such a low degree of homeownership. It also means they are a key market for multifamily housing. Builders who want to compete in the urban markets would do well to look toward multifamily.

Single-Family Rentals Aren’t Going Anywhere

While there will likely be a surge in multifamily rental property construction and financing beginning within the next two to five years, single-family rental properties won’t disappear. That’s because institutional investors have been on a buying spree. They’re buying up starter homes and renting them out to young families. As long as there is a rental market for single-family residential units, you can bet institutional investors will hold onto those properties. They won’t sell until the market shifts to accommodate more buyers.

What this means for builders and borrowers is that single-family construction likely won’t be going away just because multifamily picks up. In fact, you might find a lucrative market to build and sell single-family rentals to institutional investors.

 What Kind of Financing Is Available For Rental Construction Projects?

Builders looking to get into single-family or multifamily new construction projects will have to figure out the financing on those projects early in the planning phase. Will you seek traditional bank financing or look for alternative funding channels? Don’t forget there is a new class of private investor with cash in the pocket ready to help you finance your projects. Real estate crowdfunding platforms allow private accredited investors to finance new real estate projects, whether they be single-family or multifamily.

To get access to this investor money, you simply create an account at Sharestates and present your project for review. Using a 34-point underwriting process, your project will be vetted to see if it meets the expectations of our investors. If it does, you can have your new rental construction project funded from more than one funding source. The process is faster than going the traditional money route.

Tampa, Florida, was nicknamed “The Big Guava” by a local newspaper columnist. The name was derived from New York’s Big Apple and a businessman’s unsuccessful quest to find wild guava trees for a tropical fruit packing firm in New York in the 1880’s. It turns out that Tampa was not a good place to grow guava, but New Yorkers have not stopped looking to Florida for real estate ever since. 

Tampa is, in fact, part of a much larger area most commonly referred to as the “Tampa Bay Area”. It’s also part of the Tampa – St. Petersburg-Clearwater Metropolitan Statistical Area. The city of Tampa has a population of roughly 393,000 people. In the late 1950s, the University of South Florida was established in North Tampa and the addition of the university prompted a lot of growth in construction both residential and commercial. Another city also part of the same Metropolitan Statistical Area and the 2nd largest city in the Tampa Bay Area is St Petersburg. St. Petersburg has an estimated 360 days of sunshine each year, which is why it’s commonly called “The Sunshine City”. St. Petersburg has a population of about 263,000 people. In terms of real estate trends, these markets have been sparking conversations. According to Tampa Bay Times, Tampa Bay is seeing similar trends as many other big markets. When you look at the third quarter of 2018, there was a year-over-year price increase of about 8 percent, and the Tampa Bay market is still outperforming many other similarly sized markets including Phoenix, Charlotte, Austin and Nashville. According to Norada Real Estate Tampa is also one of the most affordable in the state with an average home value of $221,500. 

According to Biz Journals, the daily commute from St. Petersburg to Tampa is an easy 24 minutes. Though the congestion seems to be an issue it still makes for a good place to move to while working in Tampa. There are a lot of areas that are also considered suburbs of the Tampa – St. Petersburg-Clearwater Metropolitan Statistical Area. Sharestates has taken a big interest in funding properties in these areas. Some areas that Sharestates has funded properties include New Port Richey,  Holiday, and of course St. Petersburg (also referred to as St. Petes). As reported by City of New Port Richey The City of New Port Richey is a suburb of Tampa, St. Petersburg and Clearwater and is considered part of the Tampa-St. Pete-Clearwater Metropolitan Statistical Area as well. Located on the west coast of Pasco County, the city has direct access to the Gulf of Mexico and Florida’s best beaches. Holiday, Florida is also located in Pasco County. 

This first property was acquired as part of a new development and after completion, the property will be listed for sale.

  • Loan Amount: $265,000
  • Loan Type: Purchase
  • Property Type: Residential
  • Rehab Budget: $80,000 
  • LTV: 75%
  • LTC: 46%
  • ARV: 66%

 

The next 3 properties were acquired as fix & flips. Rehab includes but is not limited to new roofs, kitchen cabinets, appliances, HVAC systems, new hot water heaters, windows, bathrooms and more.  Once rehab is complete on all properties they will be put on the market for sale.

  • Loan Amount: $88,000
  • Loan Type: Purchase
  • Property Type: Residential
  • Rehab Budget: $34,740 
  • LTV: 75%
  • LTC: 71%
  • ARV: 59%

 

  • Loan Amount: $176,000
  • Loan Type: Purchase
  • Property Type: Residential
  • Rehab Budget: $60,000 
  • LTV: 78%
  • LTC: 80%
  • ARV: 57%

 

  • Loan Amount: $172,000
  • Loan Type: Purchase
  • Property Type: Residential
  • Rehab Budget: $56,523 
  • LTV: 78%
  • LTC: 79%
  • ARV: 55%

 

 

For more information on properties we have funded or for more information about our loan programs click below.

In recent years, Austin, Texas has been hot for more reasons that just the weather. One of the biggest draws for tourists and residents alike to this unique city is the live music scene. This city is sometimes referred to as “The Live Music Capital of the World”. According to Forbes, Austin was recently voted as the No. 1 place to live in America for 3 years in a row based on affordability, job prospects and quality of life. Residents are also drawn to the many outdoor spaces and cultural institutions.  

Austin is the capital of Texas and also one of the fastest-growing large cities in the US with about 964,000 people and growing every year. The city is made up of an eclectic group of people which includes government employees, college students, musicians, high-tech workers, blue-collar workers, and a very vibrant LGBTQ community.

As one of the fastest-growing markets, there’s a lot of potential for investment opportunities. According to Norada Real Estate, Austin was recently ranked eighth among the best real estate markets, topping all other big Texas cities because the local economy is growing so rapidly, Austin’s housing market has also been booming since 2018. If you are a home buyer or real estate investor, Austin has a track record of being one of the best long term real estate investments in the U.S. Norada reported that the median home value averages $365,600, which has increased by 7.6% over the past 2 years and is predicted to rise 3.6% through 2020.  

Sharestates is now funding projects in this fast-growing market by starting relationships with borrowers and investors in the area. One of the properties Sharestates recently funded was located in the Walnut Place neighborhood. Walnut Place has a population of about 5,000. According to East Austin is Home, Walnut Place is an established neighborhood in East Austin, located within 15 minutes of downtown. The neighborhood has an almost rural feel to it. The borrower acquired this property as a “fix & flip” and once rehab is complete, the borrower will list the property for sale. Rehab consisted of new kitchen countertops and appliances, a new roof, a hot water tank, plumbing, air conditioning, landscaping and much more.

 

  • Loan Amount: $303,000
  • Loan Type: Purchase
  • Property Type: Residential
  • Rehab Budget: $67,200 
  • LTV: 72%
  • LTC: 84%
  • ARV: 68%

 

For more information on properties we have funded or for more information about our loan programs click below.

In June, the state legislature passed, and Governor Andrew Cuomo signed, new legislation that changes the way rent can be increased, and other benefits for multifamily property owners, moving forward. Unfortunately, instead of these laws sunsetting after a number of years, the new legislation has made them permanent.

The largest percentage of rental units in New York City, 44 percent, are rent-stabilized while only 1 percent are rent-controlled. These are the homes that were the primary target of the regulation and which will be most affected by it.

 What Are The Major Rent Control Reforms?

While the new legislation didn’t go as far as many advocates were hoping for, there are some pretty strict hand-ties for landlords. The legislation did not do away with the major capital improvements loophole, but it does narrow the scope of definition for major capital improvements and limits how much landlords can raise rents to compensate for them to just two percent. This provision of the law will be in effect for the next 30 years.

In addition, the legislation puts an end to the 20 percent vacancy bonus landlords can raise rents by for new tenants when they move in. Landlords can also no longer raise rent from the preferential rent to market rate when tenants renew their leases. Landlords are further capped on how much they can spend on individual apartment improvements. Not only that, but the jurisdiction for the law has been expanded to include Westchester, Rockland, and Nassau counties.

How Might These Reforms Affect Multifamily Development in the Years to Come?

There are two major areas of multifamily development likely to be affected by these rent reforms. The first is the new construction sector. The second is capital improvements.

While many of the laws in the reform are targeted toward landlords who currently manage rental units, that doesn’t mean new construction won’t be affected. It costs money to build apartment complexes. Landlords rely on tenant rents and rent increases to pay for that development. While it could be a number of years before capital improvements are necessary on new developments, the cost of materials and labor will continue to climb. So developers will have to factor in the rising costs of construction and weigh it against flat rent increases. If the math doesn’t work out, in the long run, we will likely see new construction of multifamily developments decrease once market forces for labor and materials no longer make it profitable to build.

On the capital improvements side, landlords will be reluctant to improve apartment complexes if they can’t recoup the costs by raising tenant rents. On the other hand, certain maintenance costs cannot be avoided. This will become a major balancing act for landlords for the next three decades, particularly for landlords of older buildings.

For older complexes where rents are maximized, what could happen is landlords may decide to replace older buildings with new construction, which would allow them to effectively run older tenants out of the building and charge new tenants in new buildings higher rent. The “good cause” law was not included in the new legislation. This clause would prohibit evictions except for good cause. If it becomes too financially restrictive and costly to manage older apartment complexes, landlords may not have another way out other than to replace older buildings with newer constructions.

Rent reform advocates are disappointed the law didn’t go far enough. From a landlord perspective, it’s going to be difficult to manage the regulation financially and could hand strap many landlords in New York City and surrounding counties.

Dallas is the third-largest city in Texas, better known as the Lone Star State, and is considered a modern metropolis located in the northern part of the state. Dallas is also the ninth-largest city in the US with a population of 1.3 million people. It’s broken up into specific neighborhoods known as Central Dallas, East Dallas, and South Dallas.

According to Real Wealth Network Dallas has become a very popular place to invest in buy and hold real estate, which is especially true for investors looking to purchase cash-flowing properties in a rapidly growing market. The median home value in the Dallas/Fort Worth area is about $242,900. According to Zillow home values have grown 5.6% over the past year and Zillow predicts they will rise another 2% over the next year. Another reason the market is healthy and growing is that the job market is growing as well. Department of Numbers reports there are close to 4M jobs available, and in June Dallas added 17,500 jobs according to the CES survey. CES employment records show that jobs are increasing monthly which is great news for the local economy.

Sharestates has been forging new relationships with borrowers in the Dallas metro area and recently funded a few noteworthy projects. Both properties showcased here are residential properties located in the Little Forest Hills neighborhood, which is about 4 miles east of downtown Dallas and has a median home value of $267,996. According to D Magazine, the eclectic mix of both people and houses is its hallmark, but it’s ready proximity to the many attractions of White Rock Lake makes this location hard to beat. For both properties, the borrower had previously acquired and has approved plans to convert the property into additional residential units and square footage. Rehab will consist of new electrical, custom windows & doors, new plumbing, flooring, appliances, carpeting and more. The borrower intends to complete the build-out and either sell at completion/stabilization or refinance into a conventional loan.

 

  • Loan Amount: $401,000
  • Loan Type: Purchase
  • Property Type: Residential
  • Rehab Budget: $421,621 
  • LTV: 50%
  • LTC: 65%
  • ARV: 65%

  • Loan Amount: $364,000
  • Loan Type: Purchase
  • Property Type: Residential
  • Rehab Budget: $322,220
  • LTV: 50%
  • LTC: 70%
  • ARV: 65%

 

For more information on properties we have funded or for more information about our loan programs click below.

Charlotte, North Carolina has culture, food, entertainment, and is considered to have some of the friendliest people in the country. In 2018 there was a population of 2,569,213 and was ranked 23rd in the U.S. most populated cities. Charlotte is the home of the Nascar Hall of Fame, Charlotte Motor Speedway, and the 7th Street Public Market which is a market full of home-grown produce. According to US News  at this indoor marketplace, you’ll find a selection of local produce, wines, flowers, and sweet and/or savory treats. Among the vendors selling their local goods is one of the city’s favorite pizza joint, Pure Pizza, known for using ingredients sold right in the market. Also if you stop by in the morning, instead of your usual Starbucks coffee trade it in for the freshly brewed coffee available at Not Just Coffee. Charlotte is also known as a millennial hub, meaning a lot of young people and young families are moving there due to the lower cost of living and a strong job market.

But let’s talk about Charlotte’s real estate trends. According to Zillow, the median home value will rise by 6.1% over the next 12 months which leads us into 2020. Right now the median home value is about $226,000 which is average for the U.S. There has always been a large correlation between job opportunities and booming housing markets. When a city sees that their unemployment rate dropping they also see a drop in housing inventory. Charlotte is a major banking and financial hub. It’s the corporate headquarters for Bank of America and U.S. Trust but also headquarters for companies like Lowes, Family Dollar, and Hanes Brands. This market has seen its unemployment rate drop to 3.4% according to Home Buying Institute, which is a huge difference from the peak in 2010 during the recession when it was 12.9%. This is a big reason a lot of people are looking to Charlotte as their new home base. 

Since Charlotte is a market that is on the real estate rise, Sharestates has taken a big interest there. We recently funded a blanket loan with 10 separate townhomes in the Wessex Square neighborhood in South Charlotte. Wessex Square is in Mecklenburg County and is one of the best places to live in North Carolina. The borrower previously acquired the property as land and then constructed residential townhomes that are now complete and listed for sale by unit. Two loans were taken to fund this property totaling $5,090,000.

  • First loan – 
  • Loan Amount: $2,670,000
  • Loan Type: Refinance 
  • Property Type: Residential 
  • LTV: 70%

 

  • Second Loan –
  • Loan Amount: $2,420,000
  • Loan Type: Refinance
  • Property Type: Residential 
  • LTV: 71%

For more information on loans Sharestates has funded or for more information about our loan programs click below.

Did you know that a Cleveland DJ by the name of Alan Freed was the first person to coin the term rock and roll? It should come as no surprise then that this city, located on the southern shore of Lake Erie, about 60 miles west of the Pennsylvania border, is the home to the famous Rock & Roll Hall of Fame. It’s also home to the world-renowned Cleveland Clinic and Cleveland Orchestra. But it’s Cleveland’s real estate market that is just as interesting as its famous institutions which has our attention.

According to Norada Real Estate in 2018, a forecast for the Cleveland, Ohio housing market suggested that home-price appreciation could begin to slow down, following a year of double-digit gains. Home prices in Cleveland rose steadily and significantly during 2017, and they were expected to continue trending north for the foreseeable future. According to Realtor.com the median list price of homes in Cleveland, OH was $124.9K, trending up 8.6% year-over-year. Downtown Cleveland has also experienced a surge in real estate development over the past 10 years, with an estimated $19 billion in development completed or planned since 2010.

Sharestates made a commitment to funding loans in Cleveland and we have been aggressively forging new relationships there. Here are a  few properties that we’ve funded there to date.

This first property is located in a neighborhood called Ohio City. Ohio City is a trendy area with loads of high-end cocktail bars and beer gardens. Though Ohio City is one of the oldest neighborhoods in Cleveland it has some of the most fashionable and chic bistros, shops, and galleries. This neighborhood has a very urban feel made up of young families and your professionals. The property is a multi-family building with 8 units. The borrower previously acquired the property and will begin rehabilitation. The borrower intends to complete the rehab plans and stabilize the investment. Rehab includes demolition and installation of new kitchens, new plumbing/electrically, new insulation, drywall, and more.

  • Loan Amount: $530,000
  • Rehab Budget: $532,000
  • Property Type: Multi-Family
  • Loan Type: Refinance
  • ARV: 67%
  • LTV: 70%

The next property is located in Downtown Cleveland which is known for Q Arena – Home of the Cleveland Cavaliers, Progressive Field – Home of the Cleveland Indians and The Rock and Roll Hall of Fame, which is home to countless famous instruments played by famous bands and musicians. This property is a mixed-use building with 21 residential & 2 commercial units. The property will be leased out after conversion is complete. Rehab will include demolition, new windows, new kitchens in all units, new bathrooms in all units, plumbing/electrical work and a new HVAC system.

 

 

 

 

  • Loan Amount: $788,000
  • Rehab Budget: $155,610
  • Property Type: Mixed-Use
  • Loan Type: Purchase
  • LTV: 75%
  • ARV: 56%
  • LTC: 80%

The final property is located in a neighborhood called Kamm’s Corners. This neighborhood is located on the west side of Cleveland along the Rocky River. This neighborhood is very family friendly with a suburban feel. Kamm’s Corner, also known as West Park, is full of authentic Irish pubs, hobby shops, and seasonal farmer’s markets. The property is a four-story multi-family apartment building featuring 28 residential units. The borrower is acquiring this property with intentions of adding value by rehabilitation. Rehab will consist of cosmetic updates to all units and plumbing/electrical will be updated. When rehab is complete, the units will be leased out to new tenants.

  • Loan Amount: $845,000
  • Rehab Fund: $166,500
  • Property Type: Multi-Family
  • Loan Type: Purchase
  • LTV: 75%
  • ARV: 66%
  • LTC: 72%

 

For more information on loans Sharestates has funded or for more information about our loan programs click below.

Detroit is a city that goes by many different names: Motor City and Motown just to name a few. Detroit is one of those cities that has a little bit for everyone. There are the obvious car buffs but there also are some art museums, great music venues, lots of history, great sports teams, and of course nightlife. Detroit is also a major port located on the Detroit River and is the second largest regional economy in the midwest behind Chicago.

The real estate market is interesting as well. According to Fortune Builders, Detroit may serve as a testament to the strength of the United States economy. No more than a year ago, Detroit represented a city in decline for the better part of a half a century. However, having made significant improvements over the course of a year, Detroit is positioned to make a remarkable economic resurgence.

For Sharestates Detroit is a market we also see some great potential and are working to forge relationships with borrowers to help build the city back up. One property we funded is located in a neighborhood called Poletown East. The name came from immigrants who originally lived there. Poletown is sometimes used inclusively as slang for Hamtramck, Michigan, probably due to Hamtramck’s strong identification with Polish-Americans. The property is a multifamily property with 24 units. The borrower previously acquired the subject property and is refinancing to obtain construction financing to begin build-out. The borrower intends to complete the build-out and either sell at completion/stabilization or refinance into a conventional loan. Rehab on this property will include demolition, roofing, flooring, new HVAC system, all new plumbing/electrical, new installation of elevators, drywall and much more.

Loan Amount: $2,344,000

Rehab Budget: $2,753,457

LTV: 75%

ARV: 59%

Another property Sharestates recently funded is located in the East Grand Boulevard Historic District. This area includes a few moderate-sized apartment buildings and numerous large homes. During the late 19th century, creating wide, graceful streets was seen as a way to create a beautiful city and this area adopted that feel. Living in this area was considered prestigious at that time. East Grand Boulevard is a thoroughfare in Detroit, running east to west in some parts and north to south in others. The property is a residential multifamily property with 2 units. The borrower previously acquired the subject property and will begin rehab. The borrower intends to complete the rehab plans and market the property for sale. Rehab will consist of cabinetry, drywall, heating/cooling, plumbing/electrical, new hardwood floors, bathroom tiles/shower doors, and new rear porch to name a few.

Loan Amount: $417,000

Rehab Budget: $200,900

LTV: 75%

ARV: 70%

 

To learn more about Sharestates or to apply for a loan to fund your next real estate project click below.

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.