Leona Estates Inc. provides support, knowledge of market trends, and a network of trusted partners to private clients, investors, corporations, and real estate funds for their real estate investment needs. Los Angeles real estate is a top destination for investors due to ROI, location, price appreciation, lease rates, transparency, and safety.
DATA + TECHNOLOGY
We match investment opportunities in commercial and residential real estate through our extensive database that includes access to:
Massive data provider platforms
Data Tree by First American Title
REO properties including Government-sponsored Enterprises (GSE) and other agencies including HUD, VA, USDA, and IRS.
Yet, our capabilities don’t stop there. Advanced predictive analytics technology, combined with property intelligence and “big data,” enables Leona Estates to supply our clients with the most accurate and unique listings.“Predictive analytics” use statistics and modeling techniques to predict future performance and outcomes, plus much more. The system monitors advanced analytic trends for ad-hoc statistics, data mining, optimization, predictive modeling, text analytics, real-time scoring, and more. These tools can help discover data patterns and trends far beyond simply looking at what has happened and what will happen.
These analytics can also be used in commercial real estate to look at trends regarding demographics, sales, consumer spending, and any other factors that can affect how commercial properties are interacted with or transacted.
Leona Estates Inc. will not only identify and analyze each investment property you want to purchase, but after your closing, we can facilitate the rehab or repairs and more. In fact, we will also find you a qualified tenant and manage the property on your behalf, handling daily operations, leasing, maintenance, and reporting.
Whether you are looking for an investment property or relocating to Los Angeles, our expert team makes the process stress-free and rewarding. We provide independent information, expert advice, and comprehensive knowledge to help you understand the market, make the best decision, and secure the ideal property that best suits your expectations and needs.
Real Estate is one of the best investments an individual can make to build generational wealth. It is one of the most reliable wealth-building structures and essential to a well-diversified portfolio. Real estate investing has actually contributed to assisting in developing 90% of the globe’s millionaires. Over the past 10 years, Los Angeles Median home values have appreciated by 130.3%, which is very appealing for those considering investing in LA real estate.
We welcome you to the world of Los Angeles real estate investing! The United States has always provided foreign investors with a stable and welcoming market that features a predictable and transparent legal system, low taxes, outstanding infrastructure, and access to the world’s most lucrative consumer markets. For many decades, foreign investors acquiring residential and commercial real estate properties in the US have accounted for as much as 20% of the total investment activity or $100 billion annually. The critical factor is that all foreign investors are allowed to purchase and fully own any real estate, including buildings or land plots, with the same rights as American citizens.
1. INVESTMENT IN DISTRESSED PROPERTIES
Investors often seek these properties because of the opportunity to buy a home at a serious discount. A distressed property is one that is on the brink of foreclosure or already owned by the bank, which, soon, the bank will place up for auction.
One common reason for a piece of real estate to be classified as a distressed property is that the homeowner couldn’t pay the mortgage, HOA Duties, or property taxes. Hence, a distressed property refers to homes that are either under foreclosure, pre-foreclosure, or control of the lender/bank.
Leona Estates has access to recorded data from the Los Angeles County Clerk’s office, which provides investors with accurate and updated data. Leona L. Usaty is a certified Realtor ® with SFR (Short sale foreclosure) certification.
A property that the homeowner is selling. This is possible when a defaulted homeowner proves financial hardship and obtains permission from the bank or servicer to hold a sale.
DISCLOSURES: Full property disclosure
INSPECTION & APPRAISAL: YES
PAYMENT: Mortgage or Cash (Cash is preferable because homeowners are limited on time by a contract with the lender)
After a statutory period of 90 days, a Notice of Sale is posted on the property. The lender hires an attorney if a borrower cannot bring the account into good standing. The attorney begins a foreclosure action and orders a foreclosure search.
In California, lenders can foreclose on deeds of trust or mortgages using a nonjudicial foreclosure process (outside of court) or a judicial foreclosure process (through the courts). The nonjudicial foreclosure process is used most commonly in our state. Once the paperwork is complete, the foreclosure sale is advertised, and the property is offered for sale to the highest bidder in a public auction at the courthouse.
DISCLOSURES: Statutory Disclosure – The property is sold as-is, where-is
INSPECTION & APPRAISAL: NONE
PAYMENT: CASH ONLY
REO (Real Estate Owned)
REO properties are owned by a lender, such as a bank, and were not successfully sold at a foreclosure auction. A lender—often a bank or quasi-governmental entity such as Fannie Mae or Freddie Mac—takes ownership of a foreclosed property when it fails to sell at the amount sought to cover the loan.
Government-Sponsored Enterprises (GSE) own millions of REO properties. Other government agencies such as HUD, VA, USDA, and lRS also own real estate due to non-payment of loans, non-payment of taxes, and criminal activity. In addition, small and large banks hold real estate portfolios as a result of mortgage defaults. In particular, three large banks – Bank of America, Chase, and Wells Fargo – own the country’s largest REO real estate portfolios. We work with all of these private and government entities.
During this process, the REO property goes to a public auction, where the lender sets a reserve bid and sells it to the highest bidder.
DISCLOSURES: Statutory Disclosure – The property is sold as-is, where-is. The bank may require the buyer to sign a waiver of the buyer’s rights to receive the disclosure.
INSPECTION & APPRAISAL: NONE
PAYMENT: CASH ONLY
2. LOS ANGELES WHOLESALER REAL ESTATES INVESTING
House flipping typically refers to investors who purchase distressed properties, fix them up, and then resell them for a profit. They typically find these properties via short sale, foreclosures, REO, auction, etc.
The 70% Rule has become an extremely common tool utilized by investors participating in the house flipping business. Following this rule ensures you don’t ever end up paying over 70% of the after-repair value (ARV) for any given property. This value is determined after the cost of necessary repairs is deducted. The main idea behind this rule is that you must initially determine how much you can reasonably spend for the property, including any additional repair or rehabilitation costs that may emerge during the process.
For example, the median average home price is $775,000. If the ARV is determined to be $775,000 and you have to complete about $40,000 worth of repairs to completely renovate the property, you shouldn’t pay more than $570,500 for the initial purchase.
The example calculation is below for your reference:
$775,000 + $40,000 = $815,000
$815,000 x 0.7 = $570,500
3. LONG-TERM STRATEGY INVESTMENTS IN LOS ANGELES THROUGH CAPITAL APPRECIATION AND INCREASING VALUE
Real estate investing is one of the best ways to grow personal wealth. The process is simple – you buy a property and rent it out to short- or long-term tenants. The investment is guaranteed to make money if you can find trustworthy tenants who pay the rent on time and take care of the property. Just keep in mind that buying investment properties is a lot like starting a business; it may take time to turn a profit.
Yet, this is okay because ROI isn’t something that can be calculated at the start of an investment cycle. Typically, the longer you hold an investment, the higher your earnings, and returns. So, it’s essential to understand that real estate investment returns come from capital appreciation or when the home’s market value increases in comparison to its purchase price. Real estate values in Los Angeles increase often, and so will your ROI and appreciation!
4. INVESTING IN COMMERCIAL REAL ESTATE IN LOS ANGELES
Commercial and residential real estate are both great options for those looking to invest. To get the most from your investment, opt for commercial properties as they usually offer higher financial rewards than residential ones.
Commercial properties encompass many options, including apartment buildings (multifamily), warehouses, office buildings, mixed-use complexes, shopping centers, and other industrial buildings. The good news is that all of these options attract many investors in Los Angeles, so there is no wrong choice.
What is the average ROI for commercial properties? Historically, commercial real estate has remained relatively stable and powerful for those looking to diversify their portfolio or grow wealth. Typically, commercial real estate properties have annual returns of between 6% and 12%. However, returns can vary depending on the location, market, economy, and other external factors.
Los Angeles land can be a very lucrative investment. Buying land in Los Angeles also adds diversity to your assets, which is an excellent safety net that can help account for losses in other market sectors.
Investing in raw land can help generate long-term passive income, increase cash flow, and earn large profit margins. However, when investing in Los Angeles land, the most important aspect is location, so choose a property with the correct zoning for your plans, as this factors into the return.
Leona Estates Inc CEO | Founder | Realtor ®
For over 14 years, Leona L. and her team of professional attorneys, tax consultants, lenders, accountants, and other partners assisted investors, buyers & high-net-worth entrepreneurs. Our team will assist you through every step, including targeted property sourcing, due diligence, comprehensive market analysis, cash flow projections, underwriting, CAM reconciliation, report coordination, transaction management, and much more.
Leona and her team are happy to meet with new clients and love building long-lasting relationships, so don’t hesitate to contact the Leona Estates’ office today!
Call/Text: +1 310 228 8046 | Office: 805 387 2505
Leona Estates is ready to provide incredible services for your real estate investment needs.
Leona Estates is committed to constant improvement in serving our clients with a team of talented professionals and using state-of-the-art technology and superior market data to help achieve our client’s maximum results in real estate. Let us utilize our experience, skills, and resources to make your dream a reality. We promise to work hard and become your life-long real estate partner!
The US is one of the world’s most lucrative markets for investing in real estate sectors. In fact, a lot of the world’s capital is invested in the US, making the country 1st for the most received foreign direct investments in the world.
Additionally, the US has one of the biggest populations in the world, with immigration policies ensuring a sustained rate despite low fertility prevailing in the developed world. With its huge population combined with tremendous economic activity, immigration, GDP growth, and innovation, almost all sectors in the country are likely to grow, especially real estate. The country also has one of the world’s strongest social, political, financial, and legal frameworks, ensuring a smooth pace for economic activity.
Los Angeles is one of the most dynamic economies in the world, with a state GSP of $3.4 Trillion. The city features a world-leading creative economy, a fast-growing and immense high-tech industry, and tremendous aerospace and advanced transportation strength. Yet, it’s also the nation’s largest manufacturing base and international trade industry, with a rapidly increasing amount of venture capital investment in startups. Therefore, Los Angeles is an ideal city for real estate investing that offers the highest rate of return with the fastest results and the highest safety of the investment.