Hotel Bel-Air Reopens

Hotel Bel-Air
701 Stone Canyon Road
Los Angeles, CA

After much anticipation, Hotel Bel-Air reopened earlier this month.  It is simply breathtaking.  Every last detail is taken into consideration resulting in a refined yet gorgeous renovation. It is said that the owner, Hassanal Bolkiah, the Sultan of Brunei, through luxury hotel Dorchester Group, spent $100 million rebuilding this landmark Bel Air hotel. Opening on November 1st is Wolfgang Puck at the Hotel Bel-Air and I look forward to enjoying this new restaurant.

Cities With The Highest Numbers Of Super-Rich: Wealth-X

via Huffington Post
October 20, 2011

#2 Los Angeles

Super-rich and looking for a place to call home? Luckily there's a short-list of possible locations.
The homes of Ultra High Net Worth (UHNWs) individuals, or people who are worth over $30 million, often cluster around specific cities, according to a new report from Wealth-X, a company that assists private wealth firms, luxury brands, and not-for-profit organizations find potential clients.

There are currently 57,860 UHNW individuals in the U.S., Wealth-X finds, and the number of millionaires worldwide reportedly increased by 22 percent last year, indicating that those clusters of wealth might only get more dense.

The true center of the super-rich remains New York City. With 7,270 super-rich residents, the Big Apple has nearly double the number ultra high net worth households than the second-place city, Los Angeles, which is home to 4,350 members of the elite club.
"Certain geographic clusters generate and attract wealth,” Wealth-X Co-Founder David Friedman said in a press release. "While Occupy Wall Street protesters may direct their anger at wealthy, New York bankers, the more relevant question is, ‘What about New York, or any of the other cities, has engendered unique ecosystems of education, risk capital and human capital that result in prosperity[?]'"

The geographic concentration of wealth in New York may be one of the reasons why the movement start in the heart of the city's financial district. Out of a number of grievances, income inequality has surfaced as a dominant issue at Occupy Wall Street. That could be because the world's millionaires now control 35.6 percent of global wealth, even though they account for less than 1 percent of its population, according to Credit Suisse's Global Wealth Report.
Last year, for example, Houston, which ranks sixth on the Wealth-X list, increased it's number of millionaires by 9.6 percent, 24/7 Wall St. reports. The year before that, 2008 to 2009, San Jose's millionaire population increased by 24.5 percent.



#3 San Francisco, California

To read the Report: http://www.wealthx.com/index.php?id=press

www.beverlyhillspalaces.com

An Evening at Bar Pico

Bar Pico
2819 Pico Blvd
Santa Monica,CA 90405

A chic venue on Pico Boulevard between Centinela and Cloverfield where you can enjoy music later in the evening.  It's always enjoyable to try new locations and this smaller space has a wonderful ambiance.

Obama program lets underwater homeowners refinance

via San Francisco Chronicle

Carolyn Said, Chronicle Staff Writer

President Obama threw a lifeline to some underwater homeowners Monday in announcing his administration will revamp a program to refinance homes with mortgages greater than their current values.
"This will help a lot more homeowners refinance at lower rates," Obama said, speaking in a modest neighborhood in Las Vegas, a city walloped by foreclosures. The president said he would do "everything in my power to help stabilize the housing market."
The plan will streamline and expand the existing Home Affordable Refinance Program, or HARP, to make it easier to use with fewer fees, broader eligibility and no limit on how far underwater a home can be. The program so far has helped about 894,000 homeowners, far shy of the projected 5 million when it was rolled out two years ago.
Underwater homeowners who qualify will be able to take advantage of today's bargain-basement interest rates, which are around 4 percent. Since many are now stuck with much higher interest rates, they should save several hundred dollars a month by refinancing.
The expanded plan "is a small but meaningful step forward, particularly for the more hard-pressed areas of the country," said Mark Zandi, chief economist at Moody's Analytics.

1 million homeowners

Not all underwater homeowners will qualify, though. The administration expects to help about 1 million homeowners, a fraction of the 15.3 million nationwide who are underwater. In the nine-county Bay Area, about 250,000 homeowners owe more than their house is worth, according to real estate information service Zillow.
"This is still a targeted refinance program," said Dustin Hobbs, spokesman for the California Mortgage Bankers Association. "The changes are not a silver bullet but are helpful. It's one tool that the servicer has to help borrowers, but it's just been made more useful."
To qualify, loans must be backed by Freddie Mac or Fannie Mae and must have been acquired by them before May 31, 2009. Homeowners must have been current on their last six payments and not have been late on more than one payment in the prior 12 months. Credit history and income generally will not be checked, but lenders will verbally verify borrower's employment. (If new payments will exceed previous payments by 20 percent or more, as could happen for borrowers who shorten their loan's term, income will be considered.)

Better for lenders

Several key provisions should make the revamped plan more acceptable to lenders, who previously were reluctant to write loans. Lenders no longer will be responsible for loans that default within a short period of time. Waiving that provision "will help reduce risk and streamline the process," Hobbs said.
Another obstacle was that holders of second mortgages could block refinances. The administration said it had won consent from the nation's largest banks to permit refinances of the primary mortgage when they hold the second mortgage.
Several changes make the program cheaper for homeowners. It will not require appraisals if automated value calculations are available. For homeowners who refinance into a mortgage of 20 years or less, some refi fees will be waived. Fees for other homeowners will be lower than currently, but specifics have not yet been set. Homeowners will be able to continue their existing mortgage insurance policies rather than being forced to accept new ones that would probably be more expensive.
Previously, HARP limited refis to people with a loan-to-value ratio of 125 percent; for instance, owing $500,000 on a home worth $400,000. The new plan has no cap on how underwater a home can be, greatly expanding the universe of people who may qualify.

Some excluded

It does have a floor, though. People with a loan-to-value ratio under 80, - i.e., those who have more equity - are excluded. Richard Redmond, a mortgage adviser with All California Mortgage in Larkspur, said that's a negative because some people with equity still have trouble getting a new loan.
"Qualifying has become much more strict," he said. "A number of self-employed people are having a great difficulty with it, for instance. Why not make this available for them?"
Another huge group excluded are people whose loans are not held by Fannie Mae or Freddie Mac. In pricey areas, such as Marin and San Francisco, many mortgages are too large to be held by those entities, Redmond said.
Some forthcoming plans may allow for refinances on mortgages not held by Fannie and Freddie. State attorneys general are negotiating with big banks to allow refis of underwater loans they hold as part of a settlement over shoddy foreclosure practices known as robo-signing. Knowledgeable sources said that provision is designed to court California Attorney General Kamala Harris, who had withdrawn from those negotiations.
Several experts said the revamped HARP will not make a big dent in foreclosures because most today stem from unemployment.
"This is not a home run," Zandi said. "The administration hit a single today, but they have to do more."
Other changes he'd like to see include amending tax rules to motivate investors to buy bank-owned foreclosures. He'd also like to see a broader option to refinance to adjustable-rate mortgages, which might be as low as 1 percent, given the Federal Reserve's intent to keep interest rates low, and allow some of the savings to go into principal reduction. (The plan allows for ARMs, but only at up to 105 loan to value ratios.)
Still, for those homeowners it is likely to help, the news was welcome.
"It would be great," said Jeanne Bishop, who owes $300,000 on her ranch-style home in Copperopolis (Calaveras County), now worth about $254,000. Her current mortgage is at 6 percent; a refi would save her $300 or $400 a month.
What would she do with the extra cash? "I would save some, spend some on my grandchildren (she has six) and put some money into fixing up the house," she said.
The plan's full details will not be released until Nov. 15. Some lenders could start implementing it as soon as Dec. 1; it will go through 2013. The plan's outline can be found at sfg.ly/uqiA9h.




Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/10/24/BU411LLKLH.DTL#ixzz1cD4S7MqN

330 South Mapleton Drive in Luxury Real Estate

The ultimate luxury estate on the most desirable world famous street in Holmby Hills. 5 minutes to Rodeo Drive indoor/outdoor pools, Spectacular grand foyer. Romantic master bedroom wing on upper level plus 3 bedroom suites, 3 elevators. 2 level library. Staff quarters on lower level, three family rooms. Huge grassy lawn w/gazebo, detached party/theater structure. Guard House etc.

via: http://www.luxuryrealestate.com/residential/1730823

The Case Study House Map of Los Angeles

Via Curbed Los Angeles
Thursday, October 27, 2011, by Adrian Glick Kudler



Los Angeles is full of fantastic residential architecture in styles running all over from Spanish Colonial Revival to Streamline Moderne. But the Arts & Architecture-sponsored modernist Case Study Houses are both native to SoCal and particularly emblematic of the region (thank you, photographer Julius Shulman). The CSHes were intended to be relatively affordable, replicable houses for post-War family living, with an emphasis on "new materials and new techniques in house construction," as the magazine's program intro put it. Architects included the still-widely-remembered (Charles Eames, Richard Neutra) and the known-only-to-archinerds (JR Davidson, Thornton Abell). A&A ended up commissioning 36 houses and apartment buildings; a couple dozen were built and about twenty still stand in the greater Los Angeles area (there's also one in San Rafael, a set in La Jolla, and one in Phoenix), although some have been remodeled. Here's a guide to all the houses left to see (but keep in mind that, true to LA form, most are still private residences; the Eames and Stahl Houses are occasionally open to visitors). As for the wonky house numbering, post-1962 A&A publisher David Travers writes that the explanation is "inexplicable, locked in the past."

See Maps: http://la.curbed.com/archives/2011/10/the_case_study_house_map_of_los_angeles_1.php#more

www.beverlyhillspalaces.com

SOLD! 1920'S AUTHENTIC SPANISH HOME IN LARCHMONT VILLAGE!

Three Bedrooms

Two Baths

2,012 Square Feet

108 South Larchmont

$908,000

Legendary boxer Jack Dempsey was one of the great figures in the "Golden Age of Sports", the 1920's. He lovingly purchased this charming Spanish home for his mother.

Ideally located in one of the most historically significant neighborhoods, Larchmont Village, a picturesque haven of sidewalk cafes and shops, this one-story character-rich charmer awaits a loving touch.

Bill would encourage foreigners to buy U.S. homes

The bipartisan Senate bill would allow foreigners who spend at least $500,000 on a residential property to obtain visas allowing them to live in the United States.
Courtesy of The Los Angeles Times

A house in San Marino, where median home prices have risen -- largely because of Asian home buyers and investors -- even as real estate values in the region have declined. (Gary Friedman, Los Angeles Times / January 27, 2011)

By Jim Puzzanghera and Lauren Beale, Los Angeles Times

October 20, 2011, 7:00 p.m.

Reporting from Washington and Los Angeles—

American consumers and the federal government haven't been able to bail out the sinking U.S. real estate market. Now wealthy Chinese, Canadians and other foreign buyers could get their chance.

Two U.S. senators have introduced a bill that would allow foreigners who spend at least $500,000 on residential property to obtain visas allowing them to live in the United States.

The plan could be a boon to California, which has become a popular real estate market for foreigners, particularly those from China.

Nationwide, residential sales to foreigners and recent immigrants totaled $82 billion in the 12-month period ended March 31, up from $66 billion the previous year, according to the National Assn. of Realtors. California accounted for 12% of those sales, second only to Florida.

"Overall, Los Angeles is the perfect place for investors," said YanYan Zhang, an agent with Rodeo Realty in Beverly Hills, who travels to China several times a year to meet potential clients.

Sandra Miller, a broker at Engel & Volkers in Santa Monica, an international real estate firm that caters to foreign clients, said about 10% of the luxury market now is composed of foreign investors. She estimated that offering them U.S. visas would triple that figure, as well as help sales elsewhere.

"California, Florida, New York, Colorado, Hawaii and Texas — those states will see a huge increase in demand," she said. "The whole Westside would certainly benefit."

The bipartisan proposal, part of a package that also would make it easier for international tourists to visit the U.S., is similar to an existing program that puts foreigners on a fast track to a green card if they invest at least $500,000 in an American business that creates at least 10 jobs.

"Many people want to come and live in the United States," said Sen. Charles Schumer (D-N.Y.), who introduced the legislation Thursday along with Sen. Mike Lee (R-Utah). "They will be here spending money and paying taxes, and the most important thing is they'll sop up the extra supply of homes we have right now compared to demand, and that's what's dragging our economy down."

The legislation would create a new homeowner visa that would be renewable every three years, but the proposal would not put them on a path to citizenship. To be eligible, a person would have to buy a primary residence of at least $250,000 and spend a total of $500,000 on residential real estate. The other properties could be rented.

The program would come with several restrictions.

The purchase would have to be in cash, with no mortgage or home equity loan allowed. And the property would have to be bought for more than its most recent appraised value, Schumer said.

The buyer would have to live in the home for at least 180 days each year, which would require paying U.S. income taxes on any foreign earnings. Buyers would no longer be eligible for the temporary visa if the property were sold.

The buyer would be able to bring a spouse and minor children to live in the U.S. but would need to apply for a work visa to hold a job. Neither the buyer nor dependents would be eligible to receive Medicaid, Medicare or Social Security benefits.

"The bill does not limit people from being productive," Schumer said. "It simply prevents them from coming here and taking jobs that otherwise would go to Americans."

Billionaire investor Warren Buffett and others have advocated boosting the U.S. economy by attracting foreign investment.

The Visa Improvements to Stimulate International Tourism to the United States of America Act, or VISIT-USA Act, aims to do that by also making several other changes to visa policies.

Among them are allowing Chinese tourists to receive a five-year visa that permits multiple visits. They now must apply for a new visa every year. Canadians would be allowed to stay in the U.S. for more than 180 days without having to obtain a visa.

Schumer and Lee have lined up support from the U.S. Chamber of Commerce, the U.S. Travel Assn. and the American Hotel & Lodging Assn. Schumer said he was working to get the backing of the Obama administration, which received the bill's details Thursday.

"For too long, we have created barriers, and too many hoops and hurdles, which act to deter visitors from other countries coming to the United States to spend their money and create jobs," said Chamber of Commerce President Thomas Donohue. "This is a loss we can ill afford in today's economy."

Robert Toll, executive chairman of Toll Brothers Inc., a Pennsylvania builder of luxury homes, joined Schumer on a conference call with reporters to back the foreign home-buyer proposal. He said it was no different from tax breaks designed to attract businesses.

Lee described it as a free-market way to boost demand in the real estate market after "big-government programs have failed to work."

jim.puzzanghera@latimes.com

lauren.beale@latimes.com

Reverse 1031 Exchange: Another Tool in the Real Estate Professional's Toolbox

In a typical 1031 Exchange, property is sold and then replacement property is acquired. On occasion however, it may be advantageous to do the opposite; acquire property first and then sell. This can be accomplished with a Reverse 1031 Exchange. Although not as common as a “forward” 1031 Exchange, investors have been using the Reverse Exchange for years. Reasons for utilizing the Reverse 1031 Exchange generally fall into the following categories:

• Seize the Moment – You’ve stumbled upon the deal of a lifetime and you don’t want to miss out. You place an offer, which gets accepted, but you realize in order to make it all work, you’ll need to dispose of another property in your portfolio. No problem, purchase the new property and utilize the Reverse Exchange to later sell the property in your portfolio.

• Insurance Policy – Although not as common a reason for conducting a Reverse Exchange in today’s market, having an insurance policy in an exchange 7 years ago at the height of the real estate market was very helpful. In an over-heated market, many investors were fearful of being able to find quality replacement property within the specified 1031 Exchange timeframe (45 days to identify and 180 days to close). So instead of competing for replacement property on a strict timeframe many investors utilize the Reverse Exchange as an insurance policy to lock up their replacement property prior to selling.

• Change in Plans – The most common reason for conducting a Reverse Exchange seems to be a change in plans. Many investors find themselves in a situation where their property hasn’t sold as quickly as they thought it would, and they already made an offer on a replacement property. Instead of backing out of the purchase, the Reverse Exchange can be an effective tool for getting the transaction done tax-free.

Acquiring replacement property first in a Reverse 1031 Exchange does present a few difficulties however. First of all, funds will need to be available for the down payment on the acquisition property (keep in mind nothing has been sold yet).

Second, the properties involved in an exchange cannot be owned at the same time. In theory, an exchange is going from one property to another—so title to the new property and the old property can not be held at the same time. To properly structure a Reverse Exchange Asset Exchange Company will generally act as straw-buyer for the replacement property, which provides time for the client to sell the relinquished property.

Third, adherence to the 1031 Exchange timeframe is still required. What this means in a Reverse Exchange is that the property that will be sold to complete the exchange must be named by day 45 and it must close escrow on or before day 180.

FLORENCE MATTAR
Estate Specialist
Coldwell Banker
Previews International
301 N. Canon Drive, Suite E
Beverly Hills, CA 90210

Office: 310-777-6294
Mobile: 310-927-2777
Fax: 310-248-5387
www.BeverlyHillsPalaces.com
DRE#00777136