Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California

Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California
Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California

Monday, June 24, 2019

An example of one cause of housing crisis. Apartment buildings sell and new owner raises rents. Mary Cummins

436 - 440 W Imperial Ave, El Segundo, California was listed for sale on the MLS and Loopnet for $5,000,000. It sold for $5,000,000 June 9, 2019. It was previously owned by a trust. It looks like the landlord was an elderly person who just didn't raise the rents for years. Tenants were paying $1,100 to $1,400 for a 650 sf two bed one bath unit. The new rent will be $2,100. Tenants were basically saving the difference between market and actual rent all these years.

The property was listed as a "value-add property." It states rents are 35% under market which they are. Cost per unit is $312,500 which is low. LA CPU more like $500K though this building built in 1954 and probably needs kitchen, bath upgrades. Gross rent multiplier is 19 which is very high. It's high because rent is low. It market rent were used it'd be 12 which is about right.

Below is MLS listing.

https://drive.google.com/file/d/1YKMlj4IwqtmtbYe_7WK7E8I926yBBMFo/view?usp=sharing

Below is Loopnet listing.

https://images2.loopnet.com/d2/tEOAoY9dFRSdUIKzJ92ID0Lh2lOrDnRTt8QwUr6xZTg/document.pdf

This has been happening all over Los Angeles County and the state because of the housing rebound. It's one reason for the housing crisis. The current tenants will not be able to find another two bedroom unit for $1,100. They will have to pay $2,100 which is market rent. As the units are all two bedrooms at least two people live in each of them paying half each or $550/month which is insane cheap rent. Time will tell what happens to these tenants. A wise tenant would have realized that cheap rent wouldn't last forever. They should save money and look for a higher paying job. People on fixed income, retired, won't be able to find another place at this rate.

New owner will raise rents, tenants will move, they will renovate unit and re-rent for market rent.

Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the
Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the California Department of Fish and Game and the USDA. Mary Cummins is also a licensed real estate appraiser in Los Angeles, California.


Google+ Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary Cummins-Cobb, Mary, Cummins, Cobb, wildlife, wild, animal, rescue, wildlife rehabilitation, wildlife rehabilitator, fish, game, los angeles, california, united states, squirrel, raccoon, fox, skunk, opossum, coyote, bobcat, manual, instructor, speaker, humane, nuisance, control, pest, trap, exclude, deter, green, non-profit, nonprofit, non, profit, ill, injured, orphaned, exhibit, exhibitor, usda, united states department of agriculture, hsus, humane society, peta, ndart, humane academy, humane officer, animal legal defense fund, animal cruelty, investigation, peace officer, animal, cruelty, abuse, neglect #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit

Thursday, June 20, 2019

Letter in reply to Andre Perry of the Brookings Institute presentation to the U.S. House Committee on Financial Services

I watched the U.S. House Committee on Financial Services meeting today. All the experts were great except one that didn't belong there, namely Andre Perry. He was not in the real estate or finance industry. He works with the Brookings Institute in the Metropolitan Policy Program. He is clueless about real estate, value and finance.

Andre Perry thinks homes owned by black people are under valued by $48,000 by appraisers. He compared similar sized homes in predominantly white and black areas. He determined that real estate appraisers are intentionally reducing the value of the homes owned by black people by $48,000. Did he even stop and consider when these people buy these homes in different areas they are paying different prices because they are worth different amounts because they're in different locations? How did the Brookings Institute let this paper get out? I no longer respect the Brookings Institute if they can release this garbage report.

(Turns out Andre Perry has a book coming out about blacks and value. He's hitting up all the shows and meetings gearing up for his book release.)

In the meeting only one person agreed with Mr. Perry. That person was POC Congresswoman Rashida Tlaib (MI-13). She is a new politician elected in 2019. She needs some education. Why was she put on this Committee when she knows nothing about the subject matter? They should know the basics of an issue before they are put on a Committee.

She said, "Homes look identical but homes in white areas are worth more? Doesn't make sense. You are working in a broken system. You should be able to change the value based on other things. It's not right that someone with no money can't buy a home. I want to take you home to my district (to Mr. Perry because what he said agrees with her thinking)."

How is Rashida Tlaib on this committee when she knows nothing about property value, buying homes and owning a home? If you were to give a poor person money for a down payment and put them in a home they can't afford, they will lose the home when they can't afford to make mortgage payments. They would be worse off. I've seen it happen. Not everyone in the US needs to own a home especially now that the real estate recession started Q4 2018.

Mary Cummins
645 W 9th St #110-140
Los Angeles, CA 90015

June 20, 2019

Amy Liu, Mark Muro, Alan Berube
Brookings Institute
Metropolitan Policy Program
Via email: MetroMediaRelations@brookings.edu
Members of the U.S. House Committee on Financial Services
Via email: FSCDems@mail.house.gov
RE: "Know Your Price: The Devaluation of Residential Property in Black Neighborhoods," authors Andre Perry and David Rubenstein

June 20, 2019 Andre Perry sat before the U.S. House Committee on Financial Services. He presented the above paper to the Committee linked here https://financialservices.house.gov/uploadedfiles/hhrg-116-ba04-wstate-perrya-20190620.pdf.

Andre Perry stated in his paper, "We sought to understand how much money majority-black  communities are losing in the housing market stemming from racial bias, finding that owner-occupied homes in black neighborhoods are undervalued by $48,000 per home on average, amounting to $156 billion in cumulative losses."

Andre Perry does not understand the basics of home valuation or even value. He inferred in the meeting that real estate appraisers intentionally reduce the value of a home owned by a black family. Mr. Perry said he could see no other reason why the similar homes in different locations were valued differently. Everyone knows real estate is valued by location, location, location. When the audience was asked by a Committee member if they thought appraisers discriminate against black people in arriving at the value Mr. Perry was the only person who raised his hand in a room of real estate valuation experts.

I've been a real estate appraiser, broker, expert witness over 35 years in Los Angeles, California. I will give a brief explanation of the concept of value and how appraisers arrive at the value of a home. There is no adjustment for skin color.

The value of a home is what a willing buyer is willing to pay to a willing seller in an open market. Most of a home's value is location. A 1,500 sf 50 year old home in Detroit will be valued differently than a 1,500 sf 50 year old home in Beverly Hills. Facts are facts. Numbers are numbers. The value is what it is.

All real estate appraisers must comply with the Uniform Standards of Professional Appraisal Practice (USPAP). To appraise an average home the appraiser searches for other similar homes which have sold recently, are currently listed or under contract in the same area. The mathematical formula is to search +/- 15% difference in gross living area, within the last six months and within a half a mile radius of the subject property.  The appraiser then selects the comparables which are most similar to the subject property in terms of age, amenities, modifications... We widen or tighten the search parameters as needed to find proper comps. We must bracket for size, bed/bath count and age. We then generally use the three most similar sold comps, one comp under contract and one current listing.

After we have our comps we make adjustments for the differences among the comps and the subject property. One might be slightly larger, have an extra bedroom, bath, garage, be fully remodeled or a fixer. We adjust for all factors which are different. In a perfect world we will find comps exactly like the subject and never have to adjust.

We don't and can't search for the color of skin of the owner of the comp properties. We don't even know the color of skin of the owner of the subject property unless we see them at the property. We generally meet the agent or the home is vacant and we meet no one. If a person or a portrait of a person is in our photos, we must Photoshop the people out of the photos.

Homes in areas that are predominantly black, Latino are generally though not always valued less than homes in primarily white neighborhoods. There are a few areas in Los Angeles where it's reversed. The correlation is between what the buyers can afford to buy and the price at which the homes are selling. No one is steering certain races to certain areas. People buy homes which they like and can afford.

Racism most certainly exists. Blacks, Latinos make less than whites. Women make less than men. That said real estate appraisers do not value homes owned by black people less than homes owned by whites. We value homes based on size, age, amenities and location.

Sincerely,

Mary Cummins
Se habla EspaƱol!

https://drive.google.com/file/d/15g-0CdRhvY9WA0-5p2KQoi7dzbMMjK0P/view?usp=sharing

Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the
Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the California Department of Fish and Game and the USDA. Mary Cummins is also a licensed real estate appraiser in Los Angeles, California.


Google+ Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary Cummins-Cobb, Mary, Cummins, Cobb, wildlife, wild, animal, rescue, wildlife rehabilitation, wildlife rehabilitator, fish, game, los angeles, california, united states, squirrel, raccoon, fox, skunk, opossum, coyote, bobcat, manual, instructor, speaker, humane, nuisance, control, pest, trap, exclude, deter, green, non-profit, nonprofit, non, profit, ill, injured, orphaned, exhibit, exhibitor, usda, united states department of agriculture, hsus, humane society, peta, ndart, humane academy, humane officer, animal legal defense fund, animal cruelty, investigation, peace officer, animal, cruelty, abuse, neglect #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit

Tuesday, June 18, 2019

Here is the real cause of increase in homelessness in Los Angeles 2019 - by Mary Cummins

cause of homeless increase in los angeles california is the recovery from the real estate recession, mary cummins, real estate appraiser, appraisal, mayor eric garcetti,
There has been a significant increase in the number of homeless people in Los Angeles and the entire state of California. One of the biggest causes besides stagnant wages and 30 years of not building enough units is the recovery from the real estate recession that began in late 2007. If you look at the chart there is a direct correlation between the rising price of homes, 2-4 units and apartment buildings and homelessness.

I've been a real estate broker, appraiser in Los Angeles since 1983. My specialty is apartment buildings. I have gone through three boom and bust real estate cycles in Los Angeles as a broker, appraiser. While I've always been concerned about the homeless I've never lived in an area with homeless people previously. I'd only see them doing appraisals in South LA or downtown. I now live in an area with homeless people.

The great recession started in the fall of 2007. By 2009 some properties had dropped 35%. Some new DTLA lofts dropped by 50%. HOA were going bankrupt. Entire loft buildings were in foreclosure. During this time people who could afford to hold their property held and rented it out. By 2010 prices started to rise a little. By 2014, 2015 some values were almost close to what they were fall 2007. Some people started to sell in the bull market while prices continued to rise. Prices continued to rise until fall 2018. We are now in the beginning of a real estate recession though apartment buildings are still doing well because of lack of sufficient units.

By 2016, 2017, 2018 people started selling their properties. They sold homes and 2-4 units, apartment buildings. Most of the homeless came from 2-4 units and apartment buildings though some may have come from homes which were group rented. As these properties sold the tenants were evicted for many legal reasons. You can pass through major renovations to tenants. As most landlords were not properly maintaining their units during the recession these properties needed work. They were class C buildings. Class A buildings are luxury new. Class B buildings are renovated and rented for market. The tenants were not able to pay the increase in rents. They became homeless. They couldn't afford to move or store their possessions so they left most of them. Landlords, contractors dumped the items on the street or maybe dumped it a few blocks away. This is where a lot of the trash comes from. You can tell it's eviction trash when it includes mattress, clothing, household items... Construction trash and business trash looks very different.

The best way to make money as a real estate investor in Los Angeles is to buy run down units with below market rents. Get rid of the tenants, renovate the building and re-rent for market rent. This provides the best return on investment. It's just a business deal like buying a car for $5,000, fixing it up for $1,000 and selling it for $7,500. Investors aren't trying to make people homeless. Homelessness is just collateral damage.

I will now focus on an area of which I'm very familiar, the area around USC. Rents around colleges and universities are generally higher than the rest of the city. From 2015 to today I'd say at least four run down apartment buildings per block have been sold, renovated and re-rented for market rent. The rate of sale of these buildings increased drastically since 2013 and mainly 2015. Some of these properties were old large homes converted to units with and without permits back in the 1980's when the area was very run down.

The poor tenants and their poor friends who stayed with them were all evicted. With some of these properties people were living in garages, carports and patios. In some apartments every room was turned into a bedroom including the living room, dining room, pantry. Some rooms were divided with a hanging sheet into two bedrooms. The tenants appeared to be Latino, some black, a few white day laborers, maids, restaurant workers, construction workers... low wage people. They were not Section 8 tenants.

The rebound of the real estate market happened in Los Angeles alongside the revitalization cycle of real estate of some poorer parts of the city. Some call it gentrification. This causes an increase in renovation and new developments which bring money, tax income, jobs, businesses which help the community, city and state at the cost of an increase in number of homeless. Here is one property which I watched as poor tenants were evicted, their possessions were dumped on the street, property was renovated and they're now trying to rent it. I can give you many more addresses where the same exact thing happened. Most were just poor working people who were evicted.

http://mary--cummins.blogspot.com/2019/06/flop-houses-in-shitty-areas-sold.html

The other causes of the rise in homeless is stagnant wages. Even if you made $15/hr, you still couldn't rent a one bedroom in Los Angeles with your take home pay. You need two people making $15/hr to rent a cheap one bedroom.

The most significant cause of homelessness and the housing crisis in LA is lack of development of housing units over the last 30 years. The cause is/was rise in cost of land, cost of construction, development red tape and NIMBYs. Here are a few ideas from others and some of my own about how to deal with the housing crisis.

http://mary--cummins.blogspot.com/2019/04/ideas-to-help-solve-housing-crisis-here.html

FTR Mayor Eric Garcetti did not cause this problem. He inherited this problem. The rise in homelessness is caused by the rebound from the housing recession, developer red tape, stagnant wages, insufficient development of new units and NIMBYs. Garcetti is doing what he can to try to fix the problem. Instead of trying to house the homeless as a way out of this mess we need to look at the causes. In domestic animal rescue we state you can't adopt your way out of pet over population. You have to work on the causes of pet over population. The same applies here. LA can't afford to build housing for all the homeless. We need to keep people from becoming homeless in the first place. We need to get the homeless back into productive jobs so they can pay for housing on their own.

Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the
Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the California Department of Fish and Game and the USDA. Mary Cummins is also a licensed real estate appraiser in Los Angeles, California.


Google+ Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary Cummins-Cobb, Mary, Cummins, Cobb, wildlife, wild, animal, rescue, wildlife rehabilitation, wildlife rehabilitator, fish, game, los angeles, california, united states, squirrel, raccoon, fox, skunk, opossum, coyote, bobcat, manual, instructor, speaker, humane, nuisance, control, pest, trap, exclude, deter, green, non-profit, nonprofit, non, profit, ill, injured, orphaned, exhibit, exhibitor, usda, united states department of agriculture, hsus, humane society, peta, ndart, humane academy, humane officer, animal legal defense fund, animal cruelty, investigation, peace officer, animal, cruelty, abuse, neglect #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit

Flop houses in shitty areas sold, rehabbed and re-rented as "luxury" rooms in Los Angeles - cause of rise in homeless

1409 1411 w 25th st, los angeles, california, 90007 duplex, slum, dangerous, usc, rental, sale, mary cummins, real estate appraiser, flop house, half way house, homeless, tripalink, high crime area, murder, stabbings, death, shootings, the zoe, tripalink

A flop house owned by "Second Chance" at 1409-1411 W 25th St, Los Angeles, CA 90007 sold late 2018 for $749,000. Months before that it sold for $485K. It was originally owned by a woman who is now elderly or dead. It's located off an alley and behind an auto store right off Vermont across from a Jack in the Box and a liquor store. It was sold as a two unit with four beds, two baths each. It was broken down into eight rooms rented separately to near homeless people. They would panhandle across the street at the Jack in the Box or in the Ralphs parking lot. People were frequently passed out in front of the building or they were smoking pot, doing drugs on the porch. It was built in 1904 and is in a Historic Preservation Overlay Zone. It was a total fixer. Below are some pics of it before. It was boarded up to keep the ex-tenants and homeless out.

1409 1411 w 25th st, los angeles, california, 90007 duplex, slum, dangerous, usc, rental, sale, mary cummins, real estate appraiser, flop house, half way house, homeless, tripalink, high crime area, murder, stabbings, death, shootings, the zoe, tripalink

1409 1411 w 25th st, los angeles, california, 90007 duplex, slum, dangerous, usc, rental, sale, mary cummins, real estate appraiser, flop house, half way house, homeless, tripalink, high crime area, murder, stabbings, death, shootings, the zoe, tripalink

1409 1411 w 25th st, los angeles, california, 90007 duplex, slum, dangerous, usc, rental, sale, mary cummins, real estate appraiser, flop house, half way house, homeless, tripalink, high crime area, murder, stabbings, death, shootings, the zoe, tripalink

They renovated the place and it's already listed for rent. Here's the ad listing. Mind you it's in a very, very dangerous area where people have been murdered. Someone was murdered at the Jack in the Box across the street. Another person murdered a block up. Within last six months someone murdered two blocks away. A USC couple murdered two blocks to the west. Cars are broken into every night. People steal mail. It's within 500 feet of the 10 freeway which is dangerous for your health. It's also located next to a very, very busy intersection. The air pollution, sound, constant police sirens, police helicopters, people fighting, yelling... The address of the owner is a Marcus & Millichap office. The people who were evicted from there now live on the parkway and still hang out there as they are now homeless. The spelling errors below are not mine. The site seems to be run by Chinese people as it's also in Chinese.

"Enjoy private relaxation and high-quility living experience in this luxury house close to USC and DTLA. This duplex is located in UPC Patrol Areas (DPS patrols) which provides safe and private space for every resident. Situated in a convenient location, surrounding by multiple restaurants, 3 minutes’ walk to Ralphs and 4 minutes to USC by riding. This duplex is equipped with all the amenities needed to feel right at home. Brand new mattress, beddings, and solid wood furniture will be provided to giving you a place for the most comfortable rest and study.With a cozy living room on second floor including sofa, coffee table and carpet."

https://www.tripalink.com/#/cityDetail/36

It's already for re-sale for $1,200,000. It's allegedly master leased to a student housing group. It's actually illegal to rent out the rooms separately as this is not zoned for a boarding house. I wonder if leasing  to a corporation who subleases to individuals gets it out of rent control? The master lease includes 3% increase in rent per year which is Los Angeles City rent control. Do the sublessees have tenant rights since they aren't the main tenant? Maybe this is how they are getting the units out of LA City rent control. Per rent control even if you rent a room in a boarding house for 30 days plus you are covered by rent control. By July 2019 the landlord can increase your rent by 4%.

https://www.loopnet.com/Listing/1409-W-25th-St-Los-Angeles-CA/15814642/

They said they added heat and cooling, new copper plumbing, electrical. They say there are two units with four beds and four baths each. I think only two baths are legal. Everything else was done without permits. They state it was built in 1907. It was built 1904 and moved in 1907.

I pity anyone who rents a room there for $1,400/month. There are eight rooms. You have to rent for 12 months so it's not student housing. The site advertises itself as communal living. It's now called "The Zoe." I bet they paint over graffiti every morning and roll homeless people off the grass. Whoever cleaned out the building just dumped everything on the sidewalk and parkway across the street in front of Jack in the Box. The homeless people didn't do that. The contractor did. This is where all the trash and dumping is coming from. When you evict a poor person they can't afford to rent another place, move, pay for storage so they have to leave everything. Landlord, contractor dumps it on the street and blames the tenants. The tenants wouldn't dump their stuff on the street. They'd just leave it. I've appraised properties like this with evicted poor tenants. They leave almost everything because they can't afford to move it and have no place to move it to.

1409 1411 w 25th st, los angeles, california, 90007 duplex, slum, dangerous, usc, rental, sale, mary cummins, real estate appraiser, flop house, half way house, homeless, tripalink, high crime area, murder, stabbings, death, shootings, the zoe, tripalink
And this is why there was a huge increase in homeless. Investors are buying slum buildings cheap, renovating and re-renting for market rent. This is the real estate cycle of revitalization though some call it gentrification. It's good for the community and city bringing jobs, money, taxes, business but it displaces a few of the poorest people in the city.

I'll post a few more of these that I've seen. Chinese investors are buying up a lot of slum homes, apartments to turn into individual room rentals. When you ask them what are their plans for the building they lie and tell you they are going to move into it ;-)


Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the
Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the California Department of Fish and Game and the USDA. Mary Cummins is also a licensed real estate appraiser in Los Angeles, California.


Google+ Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary Cummins-Cobb, Mary, Cummins, Cobb, wildlife, wild, animal, rescue, wildlife rehabilitation, wildlife rehabilitator, fish, game, los angeles, california, united states, squirrel, raccoon, fox, skunk, opossum, coyote, bobcat, manual, instructor, speaker, humane, nuisance, control, pest, trap, exclude, deter, green, non-profit, nonprofit, non, profit, ill, injured, orphaned, exhibit, exhibitor, usda, united states department of agriculture, hsus, humane society, peta, ndart, humane academy, humane officer, animal legal defense fund, animal cruelty, investigation, peace officer, animal, cruelty, abuse, neglect #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit

Friday, June 14, 2019

Cause of increase in homelessness is lack of Class B, C units for rent. Mary Cummins estate appraiser



This is the cause of the increase in homelessness right here. There are few Class B, C apartments. This is causing rent to increase at double the normal rate. If LA had only built enough units starting 30 years ago, we wouldn't have this problem today. This problem is 30+ years in the making. Land and labor are now so expensive that only luxury units (Class A) make sense to build in Los Angeles.

"Minimal availability among Class B and C apartments is generating above-trend rent growth of mid-4 to low-5 percent, well above the traditional 2-3 percent range observed in prior years."

Another cause is real estate investors buying run down Class B and C buildings, evicting tenants, renovating and turning units into Class A-/B+ units which they rent for market. The stock of cheap apartments is getting smaller and smaller. Investors can make more money buying existing run down building and renovating then renting for market rent than building new.

https://blog.marcusmillichap.com/2019/06/13/tight-labor-market-constrains-job-creation

Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the
Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the California Department of Fish and Game and the USDA. Mary Cummins is also a licensed real estate appraiser in Los Angeles, California.


Google+ Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary Cummins-Cobb, Mary, Cummins, Cobb, wildlife, wild, animal, rescue, wildlife rehabilitation, wildlife rehabilitator, fish, game, los angeles, california, united states, squirrel, raccoon, fox, skunk, opossum, coyote, bobcat, manual, instructor, speaker, humane, nuisance, control, pest, trap, exclude, deter, green, non-profit, nonprofit, non, profit, ill, injured, orphaned, exhibit, exhibitor, usda, united states department of agriculture, hsus, humane society, peta, ndart, humane academy, humane officer, animal legal defense fund, animal cruelty, investigation, peace officer, animal, cruelty, abuse, neglect #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit

Thursday, June 13, 2019

Donald Trump sells his home in Beverly Hills at 809 N Canon Dr, 90210 for $13,500,000

Donald Trump Beverly Hills home house 809 N Canon Drive, California 90210, Beverly Hills Hotel, Mary Cummins, real estate appraiser, appraisal
Donald Trump sold his home at 809 N. Canon Drive, Beverly Hills, California 90210 for $13,500,000. Seller was 809 N Canon LLC,  Trump Tower, 725 5TH AVE #  26THFL, NEW YORK NY 10022, and buyer was Hillcrest Asia Ltd. The home was built in 1927. It is 5,395 sf on a 29,295 lot. It's located on an acute corner with three major streets surrounding it. It has 5 bedrooms, 6 baths and a pool.

Donald Trump bought the property in 2007 for $7,000,000 at the peak of the market six months before the great recession began. Trump appeared to have owned it with no loan. The current owner paid all cash.

I ran some comps +/- 15% GLA, within six months of date of sale properties between Carmelita and Sunset, and Bedford and Alpine. Value $9.5-$10M tops. The location is bad because it's at the intersection of Sunset Blvd and Beverly and Canon. It's a corner lot with a tight angle. Lack of privacy, security and noise, light pollution from Sunset Blvd. You also can't build on most of the lot because of the irregular shape and setbacks.

The previous owner was Thomas C Bowles a real estate investor who died in 1985. His wife Mary Bowles survived then died in March 2006. The trust sold the home to Trump. The home had been in the family since at least the 1960's.

Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the
Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the California Department of Fish and Game and the USDA. Mary Cummins is also a licensed real estate appraiser in Los Angeles, California.


Google+ Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary Cummins-Cobb, Mary, Cummins, Cobb, wildlife, wild, animal, rescue, wildlife rehabilitation, wildlife rehabilitator, fish, game, los angeles, california, united states, squirrel, raccoon, fox, skunk, opossum, coyote, bobcat, manual, instructor, speaker, humane, nuisance, control, pest, trap, exclude, deter, green, non-profit, nonprofit, non, profit, ill, injured, orphaned, exhibit, exhibitor, usda, united states department of agriculture, hsus, humane society, peta, ndart, humane academy, humane officer, animal legal defense fund, animal cruelty, investigation, peace officer, animal, cruelty, abuse, neglect #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit

Sunday, April 21, 2019

Ideas to help solve the housing crisis. Here are a few ideas from others and some of my own. Mary Cummins

How to solve the housing crisis, homeless, eviction, homelessness, house, home,condo, shelter, apartment, building, mary cummins, los angeles, california, ideas, solutions
There is no doubt that California has a Housing Crisis. Not enough units have been built in the last 30 years to keep up with the demand for housing. Insufficient housing has been built because of rising cost of land and construction, miles of red tape in development and  NIMBYs (not in my back yard) to name just a few causes. The article linked below has some good ideas to help solve the housing crisis. I will list all the ideas then add my own.

  • Provide resources and incentives for local governments to pay for their fair share of housing.
  • Integrating housing and transportation planning and investment.
  • Working with locals to reduce regulatory barriers to production.
  • Making state excess property available for affordable housing. 
  • Providing financial assistance to developments to ensure long-term housing affordability.
  • Recognizing that wildfire, climate change, water supplies and quality, environmental protection, efficient transportation and protecting good jobs are all involved. 
  • Change zoning restrictions so multi-family buildings can be built in other zones.
  • Expand tax incentives for below market rate housing construction.
  • Stop adding costs to the home building process with more costly laws and regulations.
  • Roll back some of the out of control building fees.
  • Allow an increase in density along transit corridors.
  • CEQA reform to make it easier and quicker to get projects approved.
  • Guarantee a living wage so wages can keep up with rent increases.
  • Train young people through union apprenticeship programs so they can earn more money.
  • Ensure new buildings are sustainable for the environment.
  • Provide rental assistance to help families secure a home.
  • Protect renters from losing their home and falling into homelessness.
  • Every city in the state must build affordable housing.
  • Allow novel housing options such as micro units, cooperatives, co-living, modular housing.
  • Increase homeowner property tax exemption which hasn't changed since 1974.
  • Reform RHNA process to increase development of homes.
  • Don't allow NIMBYs to use CEQA to stop housing projects for political reasons.
Below are some of my ideas. My basic idea is to have pre-approved plans for standard 2-8 unit two-story buildings on 50' x 100' or 150' lots which NIMBYs can't reject or even have a say in the matter after initial approval. I'm talking about sites already zoned for multi units which only have one old house which are R2+ and other zones which are grandfathered such as C2. The public can have a say in the initial approval of the cookie-cutter units but not after that. This would cut down on the holding costs from permit to occupancy certificate. It would also cut down on the architect, design fees by having the plans be in the public domain. This would make it easier and faster for building and safety inspectors to inspect. 
  • Have pre-approved plans for cookie cutter developments on R2+ standard lots for 2-8 U.
  • Have pre-approved plans for ADUs.
  • Educate poor people about how to work, save money to buy, maintain a home. 
  • Protect poor people from real estate scams. I've seen so many people get ripped off because they didn't speak English, couldn't read or write or just were uneducated and naive.
  • Inventory all vacant properties, underutilized and raw land. Work with owners to make vacant properties habitable, redevelop or sell. Same with vacant land. Other cities have done this with help from cities, developers and non-profits.
Below are some pics of new two and four unit buildings which are cookie cutters. There are a few developers building these on lots with only one old major fixer home. The first is two units, two story. The units are 3 bed, 2 bath which can house an extended family. The ones I've seen have good sized rooms so there could be two beds in each room and/or bunk beds. 


Below is a four unit building. These are plain buildings that meet strict city of Los Angeles building and safety building codes. There should be one plan for properties with an alley which has parking in the rear and properties which don't have an alley and will need a driveway to garages in rear.  

I also believe the city, county, state should do an analysis of the current housing stock. It should include a list of vacant land suitable for housing, under developed properties and properties with inhabitable structures. Plans should be made to give the owners incentives to rehab, develop or rehab the properties. Other cities such as South Bend, Indiana has done this with success.

Government should also look at the various properties and their zones. Perhaps some non-residential zoned land could be used to build multi-family. Maybe some areas zoned R1 which already have some multi-family can be rezoned for R1.5 or R2 uses. Perhaps people with R1 properties should be allowed to legally rent out the individual rooms to different individuals. People are already doing this illegally. If it were legal, there could be regulations to make sure the housing is safe and the tenant is protected. Generally if you share a kitchen in a home, you're not a tenant. You could be evicted with no notice. I'm sure there are many more ideas out there. I welcome a multi-prong approach to help solve the housing crisis.

Let me add a list of things that won't help the housing crisis. In fact these things have caused and made the housing crisis much worse.

  • Rent control. This will cause landlords to remove units from the market. It will cause developers to buy run down buildings, either demolish or do major renovations, pass that through to the tenant who can't afford it and tenant will have to leave. Rent control makes things worse. Developers won't build if they think the buildings could have rent control. As rents rise so do landlords property tax, insurance, supplies, labor, permits, maintenance...
  • Yelling "gentrification" and attacking developers, development as "evil" because the rent has risen for some tenants in some buildings. "Gentrification" is actually a real estate cycle called "revitalization." It's not a dirty word. I wrote an article about it here. If you don't revitalize the area, you create slums. Revitalization creates jobs, causes wages to increase, adds living units, improves the neighborhood, increases value of real estate, increases revenue to businesses, the city, county, state and federal government. More jobs, more homes are created for each tenant who must leave a building for redevelopment. The tenant gets relocation fees in the thousands. Notice property owners are fine with property values increasing. It's only the tenants who are not. Notice offices, retail stores, restaurants have to move. They realize it's just economics and move. DTLA artists moved from those artist lofts to lofts in Long Beach. When Long Beach became more expensive they move to lofts in Santa Ana. If you want low rent, you have to live in a low rent area. 
  • Building condo units for poor people to buy under market value. When the value of the unit increases, they will want to sell for profit. Some don't allow the owners to sell for profit. When they don't, the owners refinance all of the equity out of the property. Most end up in foreclosure because they can't sell the condo for market i.e. more than their new loan. These people didn't have enough money or income to buy a home. They are set up to fail and lose their home. I've seen this happen repeatedly. The owners also stop paying HOA dues as the complexes fall apart. This is one of Bernie Sanders ideas so is rent control and yelling "gentrification." He needs a real estate consultant because all of his ideas fail in real life. I've been in real estate since 1983, over 35 years. I watched rent control in BH, WH, SM and LA. It failed. 

https://www.sacbee.com/opinion/opinion-influencers/article229271379.html

Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the
Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the California Department of Fish and Game and the USDA. Mary Cummins is also a licensed real estate appraiser in Los Angeles, California.


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