Real Estate

Apache is functioning normally

Apache is functioning normally

Right next to the Hollywood Walk of Fame, in the beating heart of Hollywood, is a penthouse that transcends the ordinary, and comes with a touch of star-studded allure.

Set in the landmark building known as The Broadway Hollywood at 1645 Vine St, the loft-style condo with soaring ceilings is owned by none other than actor and comedian Danny McBride, best known for his distinctive comedic style and memorable roles in hits like Eastbound & Down and Pineapple Express.

But not for long, as The Righteous Gemstones creator/actor has listed it for sale, asking $1,795,000 for the 2,149-square-foot duplex condo. Deedee Howard of The Agency holds the listing.

The Broadway Hollywood building in Los Angeles. Photo credit: Jason Shaltz courtesy of The Agency

McBride is by no means the only celebrity to live at the Broadway.

The star-studded Broadway Hollywood building was home to countless bold-faced names, including actors Charlize Theron and Jason Statham, Jane’s Addiction guitarist Dave Navarro, and Wilmer Valderrama and his fellow That 70s Show castmate Danny Masterson.

Inside Danny McBride’s penthouse at The Broadway

Photo credit: Jason Shaltz courtesy of The Agency

Recently renovated, McBride’s penthouse is a swanky one-bedroom, two-bath spread with an industrial loft style with exposed ductwork.

From the Hollywood sign to the rolling hills and the iconic Capitol Records building, each view offered by the duplex condo’s sleek glass windows is a cinematic experience.

Key facts & figures

  • Bedrooms: 1
  • Baths: 2
  • Square footage: 2,149 sq. ft.
  • Price: $1,795,000
  • Price/ sq. ft: $1,128
  • Building amenities: newly finished, rooftop pool area with a hot tub, a fitness center, world-class 24-hour staff, secure access, and two parking spaces with 24-hour valet service

Sleek design and lofty spaces

Lofty spaces, gallery walls for art, and soaring ceilings create an inviting ambiance, reflecting McBride’s eclectic tastes and appreciation for aesthetics.

Photo credit: Jason Shaltz courtesy of The Agency
Photo credit: Jason Shaltz courtesy of The Agency
Photo credit: Jason Shaltz courtesy of The Agency
Photo credit: Jason Shaltz courtesy of The Agency
Photo credit: Jason Shaltz courtesy of The Agency

Live/work in style

Beyond its aesthetic appeal, the penthouse is a live/work space that mirrors McBride’s dynamic career.

See also: James Franco’s former West Hollywood digs — Next to the Chateau Marmont

A chic media room with a projector, an open kitchen with high-end Viking appliances, and an industrial staircase leading to the primary ensuite bedroom loft make this space a versatile canvas for both relaxation and creativity.

Photo credit: Jason Shaltz courtesy of The Agency

Lofty living

The primary ensuite bedroom loft, with its walk-in closet, stunning marble bath, and private outdoor terrace with an inviting fireplace, adds to the appeal of this city gem.

Photo credit: Jason Shaltz courtesy of The Agency
Photo credit: Jason Shaltz courtesy of The Agency

Rooftop retreat & private balcony

Residents, including the comedic genius himself, can indulge in sunsets from one of the cabanas at the rooftop pool area. The newly finished space includes a hot tub with breathtaking hillside views and an adjacent fitness center.

The penthouse also has its own private outdoor terrace with a fireplace that’s perfect for enjoying the city’s vibrant nighttime lights.

Photo credit: Jason Shaltz courtesy of The Agency

Upscale living, Hollywood style

World-class 24-hour staff, secure access, and the convenience of two parking spaces with 24-hour valet service add to the appeal, but it’s the location that trumps all other attributes.

Proximity to the Entertainment District places renowned establishments like Katsuya, a vibrant Sunday farmers market, and a Trader Joe’s just steps away.

And let’s not forget that the world’s biggest stars are literally at your feet as soon as you step out of the building, with the Hollywood Walk of Fame right outside its doorsteps.

Photo credit: Jason Shaltz courtesy of The Agency

This property falls under the Mills Act, adding a layer of financial appeal to this Hollywood gem.

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Is it Real? Lucifer’s Lux nightclub and the posh penthouse above it

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Source: fancypantshomes.com

Apache is functioning normally

A typical 20% down payment on a home in a U.S. metropolitan area costs $80,250, based on the median price of a single-family home of $402,600 in the second quarter of 2023.  However, for many first-time homebuyers, the hurdle of making a substantial down payment can seem insurmountable and many can only put down 3-5%, or $12,078 – $20,130.

This is where down payment assistance programs can come into play, offering a lifeline to those aspiring to become homeowners. But, what are they exactly and how can we help our clients utilize them?

What are down payment assistance programs?

Down payment assistance programs (DPAs) are initiatives designed to help first-time homebuyers bridge the gap between their savings and the down payment required to purchase a home. These programs are typically offered by government agencies, nonprofit organizations and occasionally private entities. DPAs can take various forms, such as grants, loans or second mortgages, and they are typically tailored to meet the specific needs of the target demographic.

There are four main types of down payment assistance:

  • Grants: Gifted money that never has to be repaid.
  • Loans: Second mortgages that are paid monthly along with your primary mortgage.
  • Deferred loans: Second mortgages with deferred payments that only have to be paid when you move, sell or refinance.
  • Forgivable loans: Second mortgages that are forgiven over a set number of years (often five, but maybe up to 15 or 20). These only need to be repaid if you move, sell or refinance too early.

Examples of down payment assistance programs

The FHA offers low down payment loans to first-time homebuyers. With an FHA loan, borrowers can put down as little as 3.5% of the home’s purchase price. This low barrier to entry makes homeownership more achievable for those with limited savings.

Many states in the U.S. also offer their own DPA programs to assist local homebuyers. These programs can provide grants, low-interest loans or second mortgages to cover a portion of the down payment and closing costs. The specific details vary from state to state, but they generally aim to make homeownership more accessible.

Some local housing authorities and city governments provide down payment assistance to residents. For instance, the city of Denver has its “metroDPA” assistance program, which is currently helping people throughout the Front Range become homeowners. If you make up to $188,250 a year and have a credit score above 640, metroDPA can help with a home loan and down payment assistance to help you buy a home.

Nonprofit organizations like Habitat for Humanity have been instrumental in promoting homeownership among low-income individuals and families. They offer sweat equity programs and interest-free loans to help prospective homeowners achieve their dreams.

We all know that one of the most significant barriers to homeownership for first-time buyers is the initial down payment. Many people are eager to learn ways they can afford it but feel lost as they try to navigate the landscape of what to do next. 

This is where we as Realtors are ready to educate our buyers with information and help clients find the right path(s) to alleviate financial burdens by providing funds to cover a portion of the down payment. 

Remind clients about demographics for DPAs

First, we educate clients that DPAs often target specific demographics, such as low-income families, veterans or those living in high-cost housing markets. By doing so, these programs broaden the pool of eligible homebuyers and ensure that homeownership is not solely reserved for the well-off. As a result, we should also set expectations for clients so they don’t assume they’ll have DPAs to rely on. 

Explain the different assistance programs available 

Another factor to guide clients on is that DPA programs provide assistance in the form of grants or forgivable loans, though these are harder to lock in. These funds do not need to be repaid if the homeowner stays in the property for a specified period, typically several years. This helps lower the overall cost of homeownership, making monthly mortgage payments more manageable. Be realistic with clients on whether this is a viable option for them and their current financial situation. 

Suggest credit counseling services

Educate clients on where to turn to for credit consulting. For so many, one medical bill or missed payment can take a hammer on credit scores. Clue clients in on places they can turn to in order to help improve their credit scores.

Find a housing counselor

Housing counselors throughout the country can provide advice on buying a home, renting, defaults, forbearances, foreclosures and credit issues. The counseling agencies on this list are approved by the U.S. Department of Housing and Urban Development (HUD) and they can offer independent advice, often at little or no cost to the client.

Over time, homeowners build equity as they pay down their mortgages and as property values appreciate. DPAs set first-time homebuyers on the path to wealth accumulation, enabling them to build a financial foundation for the future.

The resurgence of down payment assistance programs represents a ray of hope for first-time homebuyers, particularly those facing financial constraints. These programs play a pivotal role in reviving the dream of homeownership by reducing the initial financial barrier and making it more attainable for a diverse range of individuals and families.

By offering assistance in various forms, from government-backed loans to nonprofit grants, DPAs allow first-time homebuyers to step onto the property ladder. This not only benefits the homeowners themselves but also strengthens communities and fosters financial stability.

As the popularity of DPAs continues to grow, they hold the promise of expanding homeownership opportunities for countless individuals, ensuring that the American dream remains within reach for all those who aspire to call a house their home and ultimately build generation wealth.

Jessica Reinhardt is the 2022-2023 chair of the Denver Metro Association of Realtors.

Source: housingwire.com

Apache is functioning normally

An adjustable-rate mortgage (also called an ARM) is a mortgage where the interest rate changes. Monthly payments may go up or down.

Borrowers may be looking to save money with this type of mortgage because there’s usually an introductory period where the interest rate is lower than what they could get with a fixed-rate loan. The monthly payment is lower as a result.

Adjustable-rate mortgages can make sense in certain situations, such as when buyers only plan to own a home for a few years or for those looking to buy a home in a high-interest-rate environment. However, they’re not your only option if you’re looking at getting a mortgage in a high-interest-rate environment.

In this article, we’ll cover

•   What exactly is an adjustable-rate mortgage and how do they work?

•   What are the different types of ARMs you can apply for?

•   Pros and cons of an ARM

•   How the variable rate on an ARM is determined

•   How an ARM compares with a fixed-rate mortgage

•   Examples of when it does and doesn’t make sense to get an ARM

What Is an Adjustable-Rate Mortgage (ARM)?

An adjustable-rate mortgage is a type of mortgage loan where the interest rate can change periodically throughout the life of the loan. This means your monthly payment might increase or decrease over time.

They typically come in shorter terms, such as five, seven, or ten years and adjustment periods (how often the interest rate is evaluated and changed) of six months or one year. They may be useful as a financing tool for short-term situations, but there are some things to consider before taking on a mortgage like this.

How Adjustable-Rate Mortgages Work

The terms of an adjustable-rate mortgage are determined at the outset of the loan. You’ll decide on a type of ARM, apply with the lender of your choice, and start making payments once the loan closes.

What’s different about an ARM from other home mortgage loans is the interest rate will adjust periodically and your monthly payment will change. It’s typical to see an introductory period (a number of years) where your interest rate doesn’t change, however.

Types of Adjustable-Rate Mortgages

If you’ve started to look into financing a home purchase, then you’ve probably seen loans labeled with different numerals. Maybe you’re wondering, what is a 5/1 ARM? When you’re choosing mortgage terms, the different types of ARMs you can get correspond to the different terms (with 5, 7, and 10 year ARMs being the most common) and adjustment periods (typically 1 year or six months). An ARM is labeled with two numbers, first with the number of years in the introductory period, followed by the period when the interest rate will reset. A 5/1 ARM, for example, has a 5-year introductory period followed by one adjustment per year to the interest rate.

Here are some other examples:

•   5/6: A five-year term with an adjustment period of six months.

•   7/1: A seven-year term with an adjustment period of one year.

•   7/6: A seven-year term with an adjustment period of six months.

•   10/1: A ten-year term with an adjustment period of one year.

•   10/6: A ten-year term with an adjustment period of six months.

Recommended: Is a 10-Year Mortgage A Good Option?

Pros and Cons of Adjustable-Rate Mortgages

If you’re considering an ARM, you’re probably weighing the lower payment against future financial positions you’ll need to take. There are some other pros and cons to consider.

Pros

•   Many different term lengths to choose from

•   Low annual percentage rate

•   May start with a lower monthly payment than a fixed-rate mortgage

•   May be slightly easier to qualify for

Cons

•   Interest rate can change

•   You could end up with a higher monthly payment

•   If you’re unable to afford the higher monthly payment, your home could be in danger of foreclosure

Recommended: Cost of Living by State

How the Variable Rate on ARMs Is Determined

To fully understand how does an adjustable-rate mortgage work, it helps to see what’s going on behind the scenes of an ARM and how the rate is determined. You’ll be looking at these four components:

   1. Index

   2. Margin

   3. Interest rate cap structure

   4. Initial interest rate period

Index

The cost of an ARM is tied to a market index, generally the secured overnight financing rate (SOFR). These can increase when the federal funds rate rises.

Margin

The margin is the percentage points added to the cost of the index. It is disclosed when you apply for the loan and can vary from lender to lender, so be sure to shop around!

The interest rate on your ARM is equal to the index plus the margin.

Interest rate cap structure

There are three types of rate caps: initial, periodic and lifetime. For the initial period, the cap is on how much interest you’ll be charged in the first period of your loan. For example, in a 5/1 ARM, you’ll have an interest rate that stays the same for the initial period of 5 years.

When your initial period is over, you’ll have periodic adjustments. These will have a separate cap for how much your interest rate can increase over the defined period (usually six months or a year).

You’ll also have a cap on how much your interest rate can increase over the life of the loan.

Initial interest rate period

The cost of an ARM is also determined by how long the interest remains constant for the initial period. ARMs with longer initial periods generally have higher rates. A 7/1 ARM will have a higher APR than a 5/1 ARM, for example.

💡 Quick Tip: Generally, the lower your debt-to-income ratio, the better loan terms you’ll be offered. One way to improve your ratio is to increase your income (hello, side hustle!). Another way is to consolidate your debt and lower your monthly debt payments.

Adjustable-Rate Mortgage vs. Fixed-Interest Mortgage

When it comes to fixed-rate vs adjustable-rate mortgages, the mortgages are structured very differently. Here’s a quick breakdown of the major differences:

Adjustable-Rate Mortgage Fixed-Rate Mortgage
Interest rate adjusts Interest rate stays the same
Terms are usually shorter, such as 5 to 7 years Terms are usually longer, such as 15 or 30 years
Loans are often refinanced at a later date Loan can be paid off
May have lower interest rate initially Interest rate does not change
Monthly payment changes Predictable monthly payment
Interest rate you pay is tied to economic conditions Interest rate determined at the origination of the mortgage

The main difference between fixed-rate and adjustable mortgages is in how you pay interest on the loan. With a fixed loan, the interest is paid with regular monthly payments, which are fairly set (except for fluctuations with escrow items). With an adjustable-rate mortgage, the interest you pay can change.

The other major difference between the two types of mortgages is the term length. Fixed mortgages are often financed at 15- or 30-year terms. ARMs are usually held for shorter periods of time.

💡 Quick Tip: A major home purchase may mean a jumbo loan, but it doesn’t have to mean a jumbo down payment. Apply for a jumbo mortgage with SoFi, and you could put as little as 10% down.

Example of When Adjustable-Rate Mortgages Makes Sense

There are a few scenarios where an ARM makes sense.

•   If you’re only planning to keep the home (or keep the mortgage) for a few years.

•   Interest rates are very high.

In each of these situations, borrowers — including first-time homebuyers — don’t plan to hold onto the mortgage long-term. They’re looking to sell the property or refinance at a future date.

However, there are times where an ARM doesn’t make a lot of sense.

Example of When Adjustable-Rate Mortgages Doesn’t Make Sense

An ARM may not make sense when the interest rate for a fixed-rate mortgage is low. This was common just a few years ago, and buyers who have these low-interest, fixed-rate mortgages don’t need to worry about getting another mortgage.

If you’re considering purchasing a home with an ARM, you may also want to look at buying down the interest rate on a fixed-rate mortgage with points, especially if you plan on staying in the home long-term.

Can You Refinance an ARM?

Many borrowers get an ARM with the expectation that they will be able to refinance into a different mortgage at a later date. Refinancing any mortgage, including an ARM, will depend on your ability to qualify for it. If your credit score or income take a serious hit, for example, you may not be able to refinance an ARM to get a more attractive rate. It’s also possible market conditions may change and the property could decline in value to the point that it isn’t a good candidate for a refinance.

Adjustable-Rate Mortgage Tips

To keep your ARM manageable, you may want to consider some of the following tips:

•   Look at the rate cap structure. Make sure you can handle the monthly payment all the way to the cap rate, which is the limit on how much your interest rate will increase.

•   Watch for fees or penalties. If you pay off the ARM early, you may be subject to several thousand dollars in penalties or fees. Be aware of what you could be on the hook for.

•   Shop around for mortgage rates. The interest rate caps and margins will be different from lender to lender. Get a loan estimate to ensure you’re comparing apples to apples.

•   Work with someone you trust. It’s incredibly valuable to work with a lender you trust to give you good advice.

The Takeaway

Many borrowers may be considering an ARM at the moment, but you still need to make sure it’s the right financial tool for you. Adjustable-rate mortgages can increase when interest rates increase and make your monthly mortgage payments unmanageable. However, it is possible that an ARM could be the right solution for buyers who don’t plan on keeping the home long-term, or for those who believe they’ll be able to refinance into a less expensive mortgage in a few years.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

Is it ever a good idea to get an adjustable-rate mortgage?

You should get in contact with a lender if you’re wondering about whether or not an adjustable-rate mortgage is right for you. Some borrowers find it makes sense if they’re looking for financing that’s geared toward short-term situations.

What is the main downside of an adjustable-rate mortgage?

Adjustable-rate mortgages have interest rates that can rise periodically, either at 6 months or a year. You could end up with a higher mortgage payment.

What is the major risk of an ARM mortgage?

The major risk of an ARM is when it becomes unaffordable after an adjustment period. If a payment can’t be made, the risk is going down the path to foreclosure. This can happen after the introductory period ends or if an adjustment significantly raises the monthly payment.

Photo credit: iStock/Andrii Yalanskyi

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Source: sofi.com

Apache is functioning normally

In the wake of the landmark Sitzer/Burnett commission lawsuit case, the real estate world is in turmoil. As industry players scramble to assess the fallout, there’s a silver lining for the astute – opportunity amidst chaos.

The savvy real estate agents and loan officers see this not a crisis but a golden opportunity. Now is the time to rise as an influencer, a trusted advisor and a beacon of stability in a sea of uncertainty. This is a call to arms for real estate agents and loan officers ready to seize the day.

The distraction advantage

Let’s cut to the chase: Your competitors are distracted. They’re caught in the headlights of
change, poring over legal jargon, worrying about commission structures and losing sight of
the prize – sales.

This is your moment. While they’re busy worrying, you should be busy working. The key is to stay laser-focused on what you do best: selling homes and providing stellar financial advice.

While your peers are entangled in adapting to changes, your clear focus and proactive approach puts you steps ahead. Your competitors’ distraction is your playground. In this environment, those who stay engaged in core sales activities, unswayed by the chaos, will not just survive but thrive.

The power of influence

In times like these, influence is your most potent weapon. It’s about being the voice that cuts
through the noise, the trusted source of information when rumors and confusion are rampant. Personal branding isn’t just about recognition; it’s about establishing authority and trust. Your clients need a guide, and you are poised to be that guiding light.

Scripting the narrative

As you engage with clients, your message should be one of assurance and insight. You need to own the narrative with your clients. Here’s how:

For real estate agents:

  • Script: “While the industry is evolving, my commitment to finding your dream home
    remains steadfast. Let others focus on the noise; we’ll focus on your needs.”
  • Message: Project confidence and deep understanding of market changes. Show
    them that your expertise is their anchor in these turbulent times. That means you’d
    better do your homework!

For loan officers:

  • Script: “Market changes bring new opportunities. I’m here to offer you tailored, up-to-
    date financial advice. Let’s turn these changes into wealth!”
  • Message: Reinforce your role as a guide through uncertain financial landscapes.
    Highlight your adaptability and insight in finding optimal mortgage solutions, regardless
    of market fluctuations.

Presentation skills: A gateway to higher conversion rates

Presentation skills are another crucial element. Storytelling within sales presentations is proven to significantly improve conversion rates. A compelling narrative adds context to numbers, makes data relatable, and fosters deeper connections with clients.

Sales reps must balance stories with hard data to establish trust and enhance customer loyalty. Effective storytelling can also distinguish your brand, forming long-term partnerships and boosting customer retention.

Moreover, the caliber of a sales pitch is directly tied to the salesperson’s skills. Presentation analytics are invaluable in honing these skills. By analyzing factors like presentation duration and the time spent on specific sections, sales managers can identify strengths and weaknesses, enabling targeted coaching to improve performance.

This data-driven approach ensures that every team member can maximize their impact during sales pitches.

Comprehensive strategies for staying ahead and amplifying influence

  1. Enhance client relationships: Trust is your currency. Forge stronger bonds through
    consistent, reliable communication and personalized service.
  2. Educate yourself and clients: Stay abreast of mortgage and real estate industry changes and translate complex information into digestible, actionable advice for your clients.
  3. Leverage social media: Regularly share insights and updates on social media to
    establish yourself as an industry thought leader.
  4. Host informative sessions: Use webinars or community meetings to demonstrate your
    knowledge and reassure clients and prospects.
  5. Network with purpose: Build relationships with like-minded professionals who see
    opportunity as they can support and enhance your influence.
  6. Be visible and vocal: Use every platform available to you to share your perspective and
    insights, reinforcing your status as a go-to housing market expert.
  7. Adapt to market needs: Be quick to adjust your strategies in response to market shifts,
    ensuring your services remain relevant and in demand.

Harness the influencer’s advantage

In these times of industry upheaval, your influence is your capital. Use it to build trust, provide
clarity and lead with confidence. Those who do will emerge not just as survivors of change, but as architects of a new real estate era.

Rene Rodriguez is a best-selling author, keynote speaker, leadership advisor and transformational speaker coach.

Source: housingwire.com

Apache is functioning normally

Beloved YouTube couple Cody Kolodziejzyk (known simply as Cody Ko) and Kelsey Kreppel have had quite the year.

The two content creators kicked off 2023 by tying the knot and soon after announced that they are currently expecting their first baby.

And while the two became famous for podcasting about their lives, they are very mindful of not sharing the most intimate moments of their lives with their hordes of followers.

And there are A LOT of followers keeping tabs on Cody and Kelsey’s updates.

Cody has well over 6 million followers on YouTube alone, with another 2.1 million people following his updates on Instagram. Kelsey Kreppel has over 1 million followers on YouTube, with just as many followers on her Instagram profile.

Cody Ko and Kelsey Kreppel at Amazon Prime’s ‘My Policeman’ Premiere on November 01, 2022 in Westwood, CA. Photo credit: DFree / Shutterstock

Ms. Kreppel once told the New York Times that “even though I film our day-to-day life and people know a lot of what’s going on with us, Cody and I are really mindful about what we share and what we keep just for us.”

But one aspect of the YouTube power couple’s life is holding headlines these days: their lovely Malibu house recently hit the market (again), and scores of fans around the world are now rejoicing at the opportunity to peek inside Kelsey Kreppel and Cody Ko’s house.

And we have all the dirt on the couple’s beachfront home in Malibu.

Photo credit: Simon Berlyn courtesy of The Agency

Inside Kelsey Kreppel and Cody Ko’s house in Malibu, now listed for $3.7M

The irony isn’t lost on us. About two years ago, Cody posted a video (one that got him well over two million views) hating on celebrity houses.

And since he’s now a top earner on YouTube, successful podcaster, and a magnet for advertisers looking to tap into his large following, he now too qualifies as a celebrity whose house we want to gawk at.

Especially since the content creators’ Malibu house is rightfully touted as “a secluded oasis on the water” (in the listing held by The Agency’s Eric Haskell and Billy Rose).

With amazing ocean views, the 1,786-square-foot beachfront house comes with access to two pristine sandy beaches — on both sides — and some standout amenities like a half-court for basketball, a pickleball court, and space for four vehicles.

Key facts & figures

  • Bedrooms: 3
  • Baths: 4
  • Square footage: 1,786 sq. ft.
  • Year built: 1970
  • Lot size: 1,989 sq. ft.
  • Amenities: a half-court for basketball, a pickleball court, and space for four vehicles
  • Additional structures: a separate 1-bed, 1-bath guest house
  • Last sold: $4,495,000

Property photos

Photo credit: Simon Berlyn courtesy of The Agency
Photo credit: Simon Berlyn courtesy of The Agency
Photo credit: Simon Berlyn courtesy of The Agency
Photo credit: Simon Berlyn courtesy of The Agency
Photo credit: Simon Berlyn courtesy of The Agency
Photo credit: Simon Berlyn courtesy of The Agency
Photo credit: Simon Berlyn courtesy of The Agency
Photo credit: Simon Berlyn courtesy of The Agency
Photo credit: Simon Berlyn courtesy of The Agency

This isn’t the first time the content creators tried to offload the property

Property records and previous press coverage shows that Kreppel and Kolodziejzyk first listed the property back in March 2023 for $3,950,000.

The 1,786-square-foot beachfront home then had its price readjusted a couple of months later before being taken off the market.

It has now resurfaced as a $3,695,000 listing, with The Agency’s Eric Haskell and Billy Rose in charge of finding a buyer.

And if you think that’s a hefty price, know that one of the neighboring properties is on the market for a whopping $59 million (and that’s the discounted price, as the Ed Niles-designed masterpiece was previously listed for $68.8 million).

Photo credit: Simon Berlyn courtesy of The Agency

Where do Kelsey and Cody Ko live now?

Back in May 2023, the YouTube power couple upgraded to a 1950-built home nestled in the foothills above Zuma Beach in Malibu that was once owned by actress Reese Witherspoon.

Kelsey and Cody Ko paid $7.7 million for their new Malibu abode, a two-acre spread dotted with mature sycamore trees that has a heavily updated 4-bedroom house, a repurposed barn (with billiards area, a kitchen, bedroom, and a living/media room), another building housing a gym and media room, and an Airstream trailer that sleeps four.

So it’s safe to say that the content creators very much enjoy living in Malibu but they simply outgrew their Pacific Coast Highway property.

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More stories

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Hype House: the TikTok Mansion Owned by Some of the Internet’s Biggest Stars

Source: fancypantshomes.com

Apache is functioning normally

Real estate agents are continuing to stay put, moving much less between brokerages than the post-pandemic peak seen in the summer of 2021, according to the latest Relitix Agent Movement Index.

The index shows the relative degree of movement between brokerages by experienced agents and is indexed to the level of mobility in January 2016. The graph shows that, on a trailing 12-month basis, mobility hit its 10-year high in June 2021 at an index value of 109.4.

The most recent trailing 12-month value shows a new low of 89.4, representing a decline in annualized movement of agents of over 18%. This is where the seasonally adjusted values also indicate a new low in the movement of agents between firms.

In October, we called a bottom to the declining trend of agent movement. It now appears that was premature as the decline continues. The combination of slowing movement and fewer active agents means that we can expect a very quiet few months as we enter the slowest two months of the year.

The monthly AMI value finished at 93.1 for September with a seasonally adjusted value of 88.5.

Trends in the relative movement of experienced real estate agents between brokerages is an important strategic consideration for brokerage and franchise leaders. The relative amount of movement fluctuates over time on a seasonal and long-term basis.

Methodology: The AMI is published monthly and features monthly and seasonally adjusted, and 12-month trailing values. The index is calculated using national-level data from a large sample of the nation’s most prominent MLS systems. The agent movement reflects the relative mobility of experienced agents between brokerages. The score is computed by estimating the number of agents who changed brokerages in a given month.

To be counted the agent must be a member of one of the analyzed MLS’s and change to a substantially different office name at a different address. M&A-driven activity and reflags are excluded as are new agents and agents who leave real estate. Efforts are made to exclude out of market agents and those which are MLS system artifacts.

The number of agents changing offices is divided by the number of agents active in the past 12 months in the analyzed market areas. This percentage is normalized to reflect a value of 100 at the level of movement in January 2016 (0.7313%). The seasonally adjusted value divides the monthly result by the average of the same month in prior years.

Analyzed MLS‘s represent over 800,000 members and include: ACTRIS, ARMLS, BAREIS, BeachesMLS, BrightMLS, Canopy, Charleston Trident, CRMLS, GAMLS, GlobalMLS, HAR, LVAR, Metrolist, MLSListings, MLSNow, MLSPIN, MRED, Northstar, NTREIS, NWMLS, OneKey, RealComp, REColorado, SEF, Stellar, Triad, Triangle, and UtahRealEstate.

Rob Keefe is founder of Relitix Data Science.

Source: housingwire.com

Apache is functioning normally

Seemingly forever, the average time between reaching a sales agreement and closing on that property has hovered around 45 days — a month and a half. 

It’s not something consumers think about much when they set out to buy a first home or plan to upsize to accommodate life changes. In fact, if you were to describe the home buying experience solely upon the things we see in advertisements, the process would end with the sales contract and all parties would merrily proceed directly to the handing over of the keys.

Unfortunately, those ads don’t talk much about the next month or six weeks, the period real estate professionals call the “settlement process.” More than a few real estate agents will roll their eyes and sigh when asked by a client, upon the signing of a sales contract, “What’s next?”

There’s an entire industry built upon the “What’s next?” in question. When asked why it takes an average of six to seven weeks to get to closing, there are a lot of complex (and honest) answers. But there’s also room for improvement.

The process of orchestrating the collaboration of lenders, appraisers, home inspectors, one or two real estate agents, a title insurance company and possibly others is complex. It doesn’t lend itself to a 24-hour cycle. And the complex legal and regulatory web that can vary from state to state and even city to city doesn’t invite a quick and smooth passage to the closing. 

Yet more can be done to ease that 45-day average. There are many processes and chokepoints that could be better addressed. The industry is finally recognizing those stubborn, delay-causing entities and processes and starting to address them head-on, giving us all hope that the 45-day close will one day be a relic of the past. 

The chokepoints that the digital transformation hasn’t eliminated …yet

While much is made of the digital transformation that’s swept the title and settlement services industry in recent years, a large portion of that has addressed the core processes of issuing a title insurance policy. Title production platforms are usually the backbone of a digital or partially digital title operation. One would be hard-pressed to find many title agencies that aren’t using some level of technology in that regard.

Other complex and time-consuming tasks addressed by improved technology include title searches, document preparation, lien releases and even the closing itself, as RON and digital closings gain adoption rapidly. The good news is that this trend towards a general adoption of technology seems to be accelerating. 

However, the settlement process varies from client to client, location to location. A form may be required in one county that isn’t in most others. A document might be needed closer to the closing date or as soon as a few days after the start of the process.

With all these nuances, it’s unlikely that a centralized production system developed for nationwide usage can eliminate the need to manually enter, for example, borrower information into a proprietary municipal website. There are dozens, if not hundreds, of similar tasks that, to date, have defied complete automation. 

Take the wide-ranging requirement for addressing clouds on the title. For numerous reasons, the curative department of a title firm likely doesn’t have the technology to procure things like a satisfaction of mortgage or release. Instead, it’s often some combination of specialized technology, an internet search, a few emails or voicemails, a document with manually entered data and the like. 

One significant hurdle to a faster closing process is the complex communication between the various professionals involved. In a typical transaction, a title agency must coordinate with several other parties, often using a mix of emails, phone calls, texts, specialized apps and online portals. This patchwork of communication methods not only makes the process cumbersome but also increases the chances of mistakes and delays.

And then, there’s the process of dealing with the property’s Homeowners Association (HOA) or even simply determining whether one is involved at all. 

Dealing with the HOA — a nightmare for all parties involved

The sheer number of HOAs in the United States and the lack of uniformity involved in almost any element of their role in a real estate transaction is another glaring reason for the 45-day closing.

Nearly half (53%) of the owner-occupied homes in America are represented by some form of HOA, yet there’s no single database or central repository that comprehensively indicates which homes are part of an HOA.

There’s no uniform method of determining if a property management firm represents an HOA and, if so, which firm. There’s no easy-to-access resource advising how to communicate with every HOA or property management firm. There’s no universal means of determining what HOA documents are required in different states or what fees you need to pay the HOA to release the documents.

In addition, it almost seems that each HOA takes pride in sorting and storing that data in a unique way. Of course, HOAs and property managers are busy and have other priorities as well. Requirement by requirement, form by form, it has long fallen to the title agency or escrow company to slog through a number of blind alleys to sort the HOA process. 

Those realities don’t even contemplate the numerous headaches and delays that come with identifying and dealing with multiple HOAs or the project management skills required to coordinate the Realtor, buyer and seller alike.

This is when an otherwise on-track closing is suddenly and indefinitely delayed by the realization that there is an HOA and that it’s not necessarily playing by the timelines of the closing. Even something as simple as obtaining a PDF might take weeks. 

Additionally, almost each HOA in the United States has (and occasionally uses) the ability to change its requirements and documentation with almost no obligation to report these changes to any centralized authority. It quickly becomes apparent that just the process of collecting and exchanging proper HOA documentation is a massive impediment to achieving a faster closing time. 

There is growing hope, however. As more title businesses clamor for new technology or improved service offerings for addressing chokepoints like these, more solutions are coming online. More professionals and firms are offering outsourced services and technology that lead to a more streamlined approach. AI and LLMs (large language models) are increasingly being brought into the fray as well.

Now that the title industry has addressed and begun to adopt the automation of core processes (title production platforms, automated search products), it is collectively putting more resources into addressing some of the more granular but every bit as stubborn obstacles to a cleaner, faster closing. 

New applications are coming to market faster than ever to help process handwritten documents or non-standard forms and input them into searchable PDFs or even directly into a title agent’s production system.

“Stare and compare” is increasingly replaced by more sophisticated OCR and AI applications. Status updates and other routine forms of basic but time-consuming communication or data collection are moving away from voicemail or email toward RPA and AI applications. The list of improvements is growing at an accelerating pace.

The title industry has finally put the foundation in place for a modernized workflow. Now, it is focusing on some of the ancillary processes that have historically clogged the production pipeline. Real estate will look different in 2030, perhaps even in 2024. I am convinced that our industry will finally put the 45 days to close to bed once and for all.

Anton Tonev is the cofounder of InspectHOA.

This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.

To contact the author of this story:
[email protected]

To contact the editor responsible for this story:
Deborah Kearns at [email protected]

Source: housingwire.com

Apache is functioning normally

Jessica Davis, content editor, HousingWire Content Studio.

Perhaps the only predictable thing about the mortgage industry is its unpredictability. We all know the market is cyclical, but no one enjoys seeing the downside, and this year has been a difficult one. Rates have been high, inventory has been low and purchase applications have been down. As a result, the market has been slower, with continued layoffs and some lenders exiting the game. We’re all feeling it.

But with struggle comes opportunity. A lower-volume pipeline means there’s a moment to breathe and assess your current processes and tech stack. While we wait for volumes to ramp back up, now is the ideal time to take a look at your current workflow and adopt new tools to prepare for the inevitable market upturn.

In the pages ahead, you’ll find tech solutions from companies that know exactly what you’re going through. Take a look and consider your options — from ways to improve your eClosing strategy to software to streamline your appraisal management, the products featured in this supplement are designed to meet specific needs across the housing industry.

It may be a hard season for many, but there is hope on the horizon. The down cycle never lasts as long as it feels it will, and there are still opportunities to improve the home-buying and mortgage journey in the meantime. As rates fluctuate, the industry’s drive toward innovation never falters.

Source: housingwire.com

Apache is functioning normally

The third quarter of 2023 shows significant shifts in the performance of teams reflecting both the decline in housing sales activity and the pressure on margins occurring throughout the brokerage business, according to the Streamlined Quarterly Team Benchmarking Report, which looked at the financial performance of more than 200 teams across the nation.

This report covers the period from April 1, 2023, to June 30, 2023. In five of the six size categories of teams both gross profit margins and net income margins declined from the second quarter 2023 results.

Steamlined, based in Arizona, has a roster of hundreds of U.S. real estate teams and individual agents as clients for their accounting and bookkeeping services. The firm confirms actual financial and operational details of these businesses and assemble the data in useful benchmark studies to help their clients assess how effectively they are operating. 

“This is extremely valuable information, not only for teams but also for the brokerage firms with whom they are affiliated,” says Steve Murray, senior advisor to HW Media. “A clearer understanding of the performance of teams helps everyone understand the impact of the growth of the organization and performance of teams.”

The latest financial insights for the residential real estate teams and agents present a picture of resilience and strategic adaptability, even in the face of shifting economic landscapes.

To note, the financial data sets analyzed in Q3, 2023 are the same number of data sets in Q2, 2023. This consistency is a testament to the solid foundational practices that these businesses have established, which is crucial for long-term sustainability. 

Despite the anticipated reconfiguration in revenue streams—with a notable contraction in the number of teams closing between $800,000 to $1.5M in annualized revenue—the broader context remains one of continued activity. This realignment can be viewed as an evolution in market dynamics, with sales dispersing into lower revenue categories (Gross Commission Income), teams and agents are still running profitable companies. For those managing real estate businesses, this signals an environment ripe for strategic repositioning and diversification.

Most teams saw a decrease in gross margin

Teams in five of the six size categories saw a decrease in Gross Margin (GM), with the smallest sized teams (annualized revenues of less than $300,000) having the greatest decline from 83% to 76%. 

Teams with annualized revenue between $800,000 and $1.5 million were the only category that experienced an increase, with their GM rising from 65.1% to 67.2% from the second quarter to the third quarter.

“It is normal to have gross margin decline during the course of a calendar year,” says Steve Murray, founder to RTC Consulting and a senior advisor for HousingWire. “As agents grow their volume during the course of a year, the share of gross revenue paid to them rises under most commission plans. This is also in line with what occurs among brokerage companies, in general. The only category that saw a rise ($800,000 to $1.5 million) is also the category that had a significant decline in the number of teams in the category. 

“We suspect two things may have happened,” says Murray. “Some teams in this category suffered disproportionately from the decline in sales and dropped down in size leaving a smaller group of better run teams.”

On the other side, a number of these teams grew larger and moved into a larger category. “Weaker firms shrank and stronger teams grew faster than the market,” says Murray. “The remaining teams in the category were the strongest of the category.”

Net income declines

In five of the six categories Net Income (NI) declined with the smallest category of teams seeing the largest absolute decline from 49.3% to 40.6%.

In terms of percentage decline, however, both the smallest teams and those teams with annualized revenues of $1.5 million to $3 million had roughly the same decline of approximately 20%.

The correlation seen in the first two quarters of 2023 remains true for the third quarter. The smallest teams have the highest NI percentage while the largest teams have the smallest NI percentage.

“The combination of the decrease of gross margins and the increase in operating costs had the expected impact of lower profit margins for teams in five of the six categories. The decline in annualized existing home sales also had an impact that may have been the biggest impact. 

“The third quarter of a calendar year is normally the highest sales period of the year, but this year, we saw housing sales decline versus both Q2 2023 and Q3 2022,” adds Murray. “Given all these factors it is surprising how durable the results were.”

Shift in teams in each category

One interesting outcome of the Q3 2023 results was the significant shift of the number of teams in each category. For instance, teams in the size category of revenues between $800,000 to $1.5 million declined from 66 in the Q2 2023 to 46 in Q3 2023. Other big movements were that the number of teams with annualized revenue or $300,000 to $550,000 increased by 14, going from 30 to 44. Teams with annualized revenue of $1.5 million to $3 million also increased by eight, going from 45 to 53.

“The significant shift of a large number of teams out of medium-sized teams to both smaller and larger team categories would seem to indicate that not all teams are alike,” says Murray.

“Under the stress of declining home sales and fewer leads at the top of the funnel, some teams owners are as likely to step up their own listings and sales to generate the income to finance their team and their lifestyle. This is not unusual for teams or any real estate agent’s practice.” 

Some teams will prosper in this kind of a downturn and others will seek to optimize profit in the short run by cutting costs and increasing personal production rather than by investing scarcer dollars into growth for growth’s sake.

Teams in all six categories had an increase in their operating costs.    Teams which had the largest increases in costs were those with annualized revenues between $550,000 – $800,000 (costs up 2.8 points from 30.7% cost of operations to 33.5%) and teams with annualized revenues between $1,500,000 – $3,000,000 which saw their operating costs rise from 29.0% to 31.5%)

Strategic financial oversight at play

The trend towards decreased profitability percentages does not overshadow the evident strategic financial oversight at play. Businesses are clearly demonstrating proactive expense management, an essential skill in ensuring business health. This foresight is particularly evident in the way companies have leveraged the scalability of their variable expenses, ensuring they remain positioned to maintain profitability. This ability to pivot and adapt cost structures in response to revenue fluctuations is a hallmark of agile and forward-thinking businesses.

As presented in the data, an increase in operating expense percentages across all tiers is certainly a challenge; however, it also reflects a calculated investment in two critical growth areas: Salaries and Lead Generation.

By maintaining these areas, businesses are investing in their workforce and future sales pipelines, laying the groundwork for future growth and market share expansion.

Moreover, the minimal fluctuations in general and administrative expenses reveal a tight control over the day-to-day running costs, with businesses showing they can keep a lid on the majority of their expenses despite a tougher economic climate.

Overall, the narrative here is not one of decline but of calculated adjustment and strategic realignment. The real estate businesses that are holding their ground in these times are those that are demonstrating agility, financial acumen, and a commitment to investing in their core assets—people and prospects.

With these strategies in place, there’s every reason to be optimistic about the capacity for real estate businesses to navigate current market shifts successfully and emerge even more resilient.

Streamlined, RTC Consulting and HWMedia are teaming up to share this data with our readers to help create transparency in the results of over 200 teams. We will publish these results on a quarterly basis roughly 45 days after the end of each calendar quarter.

David Pittiglio is the CEO of Streamlined Business Solutions.

Source: housingwire.com

Apache is functioning normally

There are many pros and cons to investing in a small town as opposed to a larger town. I have many properties in small towns and larger towns and personally, I think the small towns are overlooked based on the many advantages they have. Some of the major differences in small towns are the taxes, demand, building permits, and more.

Pros of investing in real estate in a small town:

There are many advantages to investing in smaller towns. I have found some great deals in them and there were many advantages I did not think of until I had bought and operated a property in those small towns.

  • Lower property prices: Property prices in small towns are typically lower than in urban areas. This means that you can invest more property for your money. This is because fewer investors are looking at small towns. I have found multifamily and commercial to be much cheaper.
  • Higher rental yields: Rental yields in small towns are often higher than in urban areas. This means that you can generate more income from your rental properties. This rental yield comes from the fact that rents might be a little lower but prices are even lower relative to those rents producing a higher ROI.
  • Lower vacancy rates: Vacancy rates in small towns are typically lower than in urban areas. This means that you are more likely to find tenants for your properties. I have found this to be true as well because there are very few rentals, there are often people waiting for anything to pop up.
  • Stronger appreciation potential: Small towns are often experiencing population growth and economic development. This can lead to stronger appreciation potential for your investment properties. If there is a shortage of homes in the area, you could see huge appreciation if those homes are cheaper than the cost to build.
  • Lower taxes: In my area in Colorado the small towns often have lower property taxes and lower sales taxes. The property taxes can save thousands of dollars a year on larger properties.
  • Less regulations: Some small towns are also much easier to build and remodel in. Each town has different building permit processes and requirements. Some towns could be stricter but some could be very easy to work with.

Cons of investing in real estate in a small town:

  • Limited buyer pool: There is a smaller pool of potential buyers for properties in small towns. This can make it more difficult to sell your properties when you are ready to do so. If the town has a surplus of homes, prices could stay stagnant for many years.
  • Less access to amenities: Small towns may have fewer amenities than urban areas, such as shopping malls, restaurants, and entertainment options. This can make it more difficult to attract tenants and buyers.
  • More difficult to manage properties: It can be more difficult to manage properties in small towns, as there may be fewer qualified property managers available.
  • Less liquidity: Properties in small towns are typically less liquid than properties in urban areas. This means that it may be more difficult to sell your properties quickly if you need to do so.
  • Local politics: Some small towns may be difficult to work with or treat outsiders differently if you do not live there. This is not always the case but I have been told I can’t do certain things with a property and then had someone buy it from me in that small town and do exactly what I asked to do.

Is it worth investing in a small town?

I have had amazing luck investing in small towns. One of the properties I bought was a 4 plex for less than $200k in 2018. That property would have been at least $300k in the larger town 10 miles away. I have also had great luck with commercial property and single-family flips as well. There are challenges and just because there are advantages to investing in a small town, that does not mean it is easy.

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Conclusion

Before you invest in any property, make sure to research the local market and economy. This will help you understand the local roadblocks, rental yields, and surplus or shortages in the area. Talk to the city government, especially the zoning and permit people (they might be one person). Try to see if the population is increasing or decreasing and make sure you have contractors or property managers that will work in the area if you need them!

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Categories Real Estate

Source: investfourmore.com