Acquisition of the property, which happens to be next to the college’s existing South Campus at 950 S. Raymond was made possible through gifts from alumni, according to college President Lorne Buchman.

The college has selected Los Angeles firm Michael Maltzan Architecture, to work with college officials in an effort to “re-imagine” both existing spaces at the college and the design of new buildings planned for the acquired property which is closer to public transportation than the main campus. Full financial terms were not disclosed, but the college said alumni donated $5 million toward the acquisition.

“This is a pivotal moment not only in Art Center’s history, but in art and design education, given the growing impact of the creative professions on the economy and on our world,” Buchman said in a statement. “This new property enables expansion and development of our programs and infrastructure and enhances our capacity for teaching, learning, creating and collaborating.”

Art Center Board of Trustees Chair Robert C. Davidson, Jr., added, “The availability of the property adjacent to the College’s South Campus was serendipitous, and it came on the market just as we finalized our strategic plan. The Board and I are exceedingly proud to be part of setting the vision for Art Center and its leadership at this time of transformation.

Source: http://www.labusinessjournal.com/news/2012/mar/07/art-center-college-design-expand-land-purchase/
http://www.prweb.com/releases/2012/3/prweb9257706.ht

“Based on recent macroeconomic data, paired with the latest round of homebuilder results, we are more bullish on housing and the fundamentals of the homebuilders,” they say in a Friday research note.

The analyst points to the nation’s rental market strength in its optimistic opinion concerning the housing market. Multifamily starts doubled over the past two years (209,000 units) and permit applications continue to move higher, which indicates that a rising swing in multifamily starts will continue.

Barclay’s research expects builders to fare better in 2012 with the market having less competitive rent options and new home inventories at historic lows.

Homebuilders are finding these trends reassuring. They experienced a 22% order growth in the first quarter and are riding a tailwind heading into the second, causing Barclays to see the first signs of price increases coming back to the market. “Not everywhere, but in enough places to matter,” they say.

Stephen Kim, managing director of Barclays’ homebuilding division, said “Phoenix, Denver, Orange County, Calif., Westchester County, N.Y., and even parts of the hard-hit Riverside-San Bernardino, Calif., region is witnessing price comebacks.”

The low base from which housing is starting means that the sector is not likely to contribute significantly to growth as it has in many previous recovery phases, but the fact that housing has stopped falling is a point worth making,” Barclays says.

Source: http://housingwire.com/news/analysts-say-housing-no-longer-drag-us-economy
http://www.housingwire.com/news/homebuilders-see-first-signs-price-increases-2q

One of the first construction projects was to add new stone and tile floors to the Target Court at the Central Avenue entrance. “The renovation will add so many fantastic improvements and aesthetic updates to Glendale Galleria,” says Larry Martin, Senior General Manager of the center.

Renovations also include reconstruction of the Central Avenue Plaza. This new design will result in bringing a unique open-air, gathering and outdoor-dining experience to the area. The entrance from Central Avenue will have an inviting and upscale feel. Even the food court will be revitalized and improved. The east-west escalators will be relocated and those that lead to the east-side parking structure which will result in a pleasing experience and improve the entire space.

“We can tell you that we are committed to making a significant investment in Glendale Galleria that will give our customers an enhanced shopping experience and an exciting and beautiful venue in which to gather,” says Martin.

The new Bloomingdale Store will be located in the former Mervyn’s space. The store is expected to create 175 associate positions. Also, the well-known retailer has plans to produce a variety of shopping experiences that will be specifically tailored to the shopping community and its distinctive customer base of the Glendale Galleria.

Source: http://www.globest.com/news/12_338/losangeles/retail/Renovations-Begin-on-15M-SF-Galleria-320972.html

At his Americana at Brand shopping and residential complex in Glendale,  Rick Caruso is building a new Nordstrom store and adding four apartments to the development's roster of 100 condominiums and 238 apartments, almost fully occupied.

"The opportunity and upside on development is better than it's ever been, especially [compared] to acquisitions," he said.

The darling of Southern California development right now, though, is the apartment building.

Several factors are driving demand, said developer Ziv Cohen, chief operating officer of Resmark Apartment Living, a division of L.A.-based Resmark Companies. People reaching their 20s and 30s, known as Generation Y, tend to marry later than previous generations, he said. They are also more mobile in their careers, which tend to be in urban areas. As the economy recovers, they are setting up households of their own.

Some older renters downsized from houses, while others became renters by necessity when they couldn't keep up the mortgage payments on their homes or were priced out of the market, Cohen said.

Developers are being spurred to build by "historically low building costs," including rock-bottom interest rates, Cohen said. The trend of declining homeownership will eventually reverse, he predicted. "We believe the window of opportunity on apartment development will be open over the next 24 months," he said.

Source: http://www.latimes.com/business/realestate/la-fi-commrcomebac20120422,0,5801754.story

The U.S. apartment sector continues to strengthen, making it a compelling investment for opportunistic and value-add strategies, according to national commercial real estate research unit of Marcus & Millichap.

The real estate firm's research unit published their finding recently and was quoted in news  sources such as http://www.cpexecutive.com/ and http://www.multihousingnews.com

Meaningful gains have occurred in 2011 as vacancy rates dropped and rental rates have risen. The report also cites a migration from more expensive units, driving improvements into Class B and C properties from Class A properties.

In their apartment outlook report they note that, "The apartment sector has fully moved into an expansion cycle.” "The closing months of 2011 manifested meaningful increases in productivity, monthly job creation, wage and income growth, consumer confidence, and household formations, forming a powerful alliance of demand drivers."

Capitalization rates and stabilizing operations make the sector a good buy for the right investor, the researchers said. The report is a positive indication that the rental market, especially in the less expensive units is posed for higher rents and occupancy.

Source: http://www.housingwire.com/news/apartment-sector-moves-recovery-expansion
http://www.multihousingnews.com/news/northeast/marcus-millichap-report-predicts-strongest-year-yet-for-rental-market/1004047455.html
http://www.cpexecutive.com/property-types/multi-family/marcus-millichap-rental-market-to-hit-new-levels-in-2012/

''Our priority is designing a solution that helps our customer,'' said Ron Sturzenegger, Legacy Asset Servicing executive at Bank of America in a statement. ''If this evolves from a pilot into a more broadly based program, we also see potential benefits from helping to stabilize housing prices in the surrounding community and curtail neighborhood blight by keeping a portion of distressed properties off the market.''

Bank of America will now offer customers facing foreclosure the option to rent their home, for less money than the mortgage. CNBC's Diana Olick talks about the program, which will be tested in New York, Nevada and Arizona.

The program also relieves the bank of the legal issues that have been plaguing institutions as the homeowners would voluntarily agree to relinquish their title.  In many instances state and federal authorities have slowed the foreclosure process.  This process avoids much of the newly installed red tape.

The results of this program will be examined. Of course, if homeowners choose to stay in their former homes, there could be some indirect impact on the rental prices and availability in the immediate areas, but the number of foreclosures would decrease and the housing markets could stabilize.

Source: http://economywatch.msnbc.msn.com/_news/2012/03/23/10829814-bank-of-america-  renter-program-could-help-its-bottom-line
http://newsroom.blogs.cnn.com/2012/03/23/avoid-foreclosure-by-renting-home/

In order to take advantage of this type of financial vehicle, one must use what is called a self-directed IRA. This type of IRA does carry restrictions according to Diana Olick CNBC Real Estate Reporter in her recent article.  The property must be used purely as an investment, with all the income going directly back into the IRA. The owner may not occupy the home or even use it as a vacation property. The owner can manage the property, doing maintenance and supervising the renting, or can hire a property management company which would be paid for out of the IRA.

“It’s really an account that provides greater flexibility than what a third party administered 401K, for example, would provide,” says Kelly Rordrigues  CEO of PENSCO, which has doubled its assets in the past four years.  Penco acts as custodian of self-directed IRAs, holding the property and dealing with all associated expenses.

Source: http://www.cnbc.com/id/46718050

California has twelve markets on the HomeVestors of America and Local Market Monitor first-quarter list of best places for investors interested in buying rentals. The markets are Bakersfield, Fresno, Riverside, Sacramento, Santa Rosa, Thousand Oaks, San Diego, Oakland, Santa Ana, San Jose, Los Angeles, and San Francisco.

In the short term, areas where prices are close to a bottom and the local economy is growing could be wise places to invest, said Hicks. With home prices falling now, but certain to rise in the future, and the cost of renting a home going up, investors are seeing opportunities in many markets throughout the country.

“We think this is the best opportunity for investors to accumulate rentals in the past thirty years,” Hicks said.

Source: http://www.marketwatch.com/story/best-places-to-invest-in-rental-properties-2012-03-09
http://www.homevestors.com/inthenews/news.php?id=372

These investors are actually helping improve the weak home sales market. During the first three quarters of last year over 26% of condominiums and single family homes were purchased by investors. That is a five present increase from 2007, according to John Burns, CEO of John Burns Real Estate.

Incredibly, the United States Government is interested in helping the strong rental market. The US recently began a pilot purchase and rental program for foreclosed home using the giants Freddie Mac, Fannie Mae and the Federal Housing Administration to back the purchases. 

The investors generally have a plan to keep the properties resulting in a buy-and-hold mentality. That buy-and-hold mentality is now common among investors buying homes, says Zillow economist Stan Humphries.  Unlike "flippers", who quickly bought and sold homes for a profit when prices were soaring, the buy-and-hold investors intend to keep properties for years, Humphries says.

Source:http://www.usatoday.com/money/economy/housing/story/2012-02-09/landlord-investors/53098048/1

The National Association of Home Builders/Wells Fargo said that its builder sentiment index rose for a fifth straight month in February 2012 to 29, up from 25 in January 2012. The index has climbed 15 points since September 2011 and is now at its highest level since May 2007.

Home builders are encouraged by the rising interest express in buying a home. This might suggest the housing market could pick up after four weak years. "The story here is that pent-up demand is being freed by much easier mortgage conditions, low rates and rising employment" said Ian Shepherdson, chief U.S. economist for High Frequency Economics.

Struggling to compete with foreclosures, builders have lowered their prices, which in turn have put downward pressure on existing homes. To add to the challenge to sell homes, higher required down payment and tougher loan requirements are limiting the number of potential buyers.

New home sales make up a small portion of housing sales but have the largest impact on the economy. The builder trade group says each new home built creates an average of three jobs a year and generates about $90,000 in taxes.

Source: http://www.usatoday.com/money/economy/housing/story/2012-02-15/homebuilder-sentiment-rising/53102390/1

This historic settlement will provide immediate relief to homeowners – forcing banks to reduce the principal balance on many loans, refinance loans for underwater borrowers, and pay billions of dollars to states and consumers,” said HUD Secretary Shaun Donovan.

The settlement, however, does not preclude the government from pursuing criminal or civil claims outside of the agreement, and borrowers and investors can still pursue individual or class action suits against the banks for robo-signing grievances, according to a statement from Iowa Attorney General Tom Miller, head of the attorney general negotiating committee.

It “preserves extensive claims related to mortgage securitization activities, including the claims that will be the focus of the new Residential Mortgage-Backed Securities Working Group,” Deputy Attorney General Eric Holder stated Thursday.

In addition to the $25 billion, the five servicers have agreed to a new set of servicing standards.

“These new customer service standards are in keeping with the Homeowner Bill of Rights recently announced by President Obama – a single, straightforward set of commonsense rules that families can count on,” Donovan stated Thursday.

The new standards call for an end to robo-signing, proper documentation procedures for foreclosure and loss mitigation, and enhanced communication with borrowers.

Source: http://www.dsnews.com/articles/robo-signing-settlement-finalized-2012-02-09

One in three first-time buyers received either a gift or a loan from their families to help buy a home in 2011, according to the National Association of Realtors.
Parents can step in and lend a hand by giving cash to their children. The Federal Government has a limit on the amount of money you are allowed to give away tax-free in any one year. In 2012, a taxpayer is allowed to give $13,000 to an individual without triggering the so-called gift tax.  Married couples can underwrite a child up to $26,000 a year.

Parents can offer better terms than the bank. The IRS insists that you charge an "applicable federal rate" minimum for various loan  maturities. The minimum interest range as of January is anywhere from .19% for loan terms of three years or less to 2.63% for loan maturities over nine years. The lender still pays income tax on the interest earned.

Experts stress the importance of drawing up a formal promissory note that spells out the terms. If the loan is properly structured as a mortgage and filed, the interest will be tax-deductible for your child. Having a contract also makes estate planning easier. The last thing you want to leave behind is a family squabble over a well-intentioned loan according to an article @ Fortune Magazine by Janice Revell

Source:http://money.cnn.com/2012/01/31/real_estate/mortgage_lending_kids.fortune/

In the article, Schoen quotes Diggle as saying that there has been. " A 33 percent drop fall in home prices, a plunge in mortgage rates and 15 percent rise in rents since the housing crash has evened the scales. Today, the median monthly mortgage payment of about $700 has fallen to about the level of a median monthly rent check. If mortgage rates keep falling and rents keep rising, the equation will tip even further toward owning."

                                         

When you take those factors into account — which Diggle has done with a homegrown “calculator” — someone who plans on staying put for seven years would come out ahead by about $9,000 if they bought a median-priced home rather than being a tenant in a median-priced rental. Diggle’s calculation assumes that rents keep rising by about 3 percent a year and that house prices stay flat in 2012 and 2013 and begin rising in 2014 at about 3 percent a year.

“A large share of the population has dropped out of the pool of potential buyers,” he said. “Given that the choice between owning and renting a home is a luxury that many Americans simply do not have, the fact that this does appear to be the time to buy will have only a minimal effect on actual sales. Accordingly, we expect only a modest housing recovery over the next few years."

Source: http://bottomline.msnbc.msn.com/_news/2012/01/23/10217301-home-buying-could-soon-beat-renting

“The American electorate is sending a clear message that owning a home remains a cornerstone of the American Dream and preserving a federal commitment to homeownership is essential to maintain a thriving middle class and get housing and the economy back on track,” said Neil Newhouse, a partner and co-founder of Public Opinion Strategies.

“With the 2012 election season in full swing, candidates running for the White House and Congress would be wise to heed the will of the American voters, who have expressed broad support for government policies that encourage homeownership and oppose efforts to make it more difficult to get a home loan and to tamper with the mortgage interest deduction,” said Celinda Lake, president of Lake Research Partners.

“Even in a down housing market, homeownership remains a core American value, with the vast majority of citizens who do not currently own a home saying they want to buy a home,” said Bob Nielsen, president of the National Association of Home Builders and a home builder from Reno, Nev. “Those running for office in November need to understand that voters will not look kindly on any candidates who seek to dismantle the nation’s long-term commitment to homeownership.”

Poll results can be downloaded at www.nahb.org/homeownershippoll.
Source:  http://www.nahb.org/news_details.aspx?newsID=14563

Dienhart and Lee surmise that between investors searching for yields and current tight lending standards, cash purchase of homes (especially distressed properties) became even more common in 2011.

Reporters Dienhart and Lee also stated that according to data from Housing IntelligencePro, 38% of homes purchased in 2011 were bought with all cash.  That is up from 34% in 2010 and double the 19% rate in 2006. 

They also note that this trend is likely to continue in the near term, with investors being responsible for an increasing share of home purchases as prior home owners abandon the ownership market and head back to rentals.

Investors have good reasons to purchase a house with all cash.  One of these reasons is that there is no loan processing to slow or stall the transaction. The buyer does not need thirty to forty five days to qualify and obtain a loan.

Sellers will often accept an all cash offer over a higher priced offer, because they know the cash offer is more likely to close.

A faster closing puts the money into the seller's pocket sooner and there are fewer things that can go wrong in a short escrow period.

Source: www.housingintelligence.com/economics/38-of-homes-purchased-with-cash-2.html
http://homebuying.about.com/od/investmentproperties/f/062308_pay-cash.htm

Management companies carry out the duties of the association.  They collect HOA dues, manage maintenance, and handle the owner/tenant complaints as well as evictions.  Good property management companies have a wide range of experience to be able to handle any problem that may come up concerning the property.  Another advantage, the property management company is an independent contractor.  This eliminates the Homeowners Association’s need to hire any employees. 

There are risks in not knowing all the ins and outs of property management.  The management company will have experience dealing with liabilities, paperwork, employment, and the right vendors for maintenance, as well as professionals who know the tax issues, local rules and laws concerning the property.  The Homeowners Association might not have the expertise or may not want to be involved with the many details of hiring and coordinating the services required.

Often it is well worth the fee a property management charges, considering all the duties they perform. Paramount Real Estate & Property Management is here to meet all your Homeowners Associations needs.  We are able to handle the property service requirements so that you can enjoy your home worry free.

Source:http://www.nolo.com/legal-encyclopedia/landlord-hire-property-management-company-29885.html

Despite the challenging economic times the company continues to be rewarded.  Paramount Real Estate and Property Management is delighted with their accomplishments.  Our goal is to continue the upward momentum in both real estate sales and property management business.  2012 looks even more promising than this past year and we continue to be proud of our achievements.

Without the dedication and commitment of our client base and our loyal team this fantastic year would not have been achieved.  Paramount Real Estate and Property Management would like to Thank You for all your continuous assistance, because we could not have been victorious without your support.

On behalf of all of us at Paramount Real Estate and Property Management we would like to wish you a HAPPY AND PROSPEROUS NEW YEAR!

To establish or reestablish credit, the best thing is get a secured credit card from a bank where you have a checking account. Pay your bills on time. Late payments can cause your credit score to drop as much as 100 points.

Maintain 4 to 5 revolving accounts with a zero balance and have no more than 3 accounts with balances of 30% of the high credit. Do not open new accounts unless you have to and do not close accounts. Having two installment loans will help create a good score, any more than that will have a negative effect. Do not co-sign loans. If the co-signer makes a late payment it will end up on your credit report.

A good thing to know, inquiries in a 45 day period for the same industry will only count as 1 inquiry.  So, when shopping for an auto or mortgage loan try to do it within a 45 day period.  When purchasing or refinance your home, hold back on acquiring additional credit card debt until the close of the loan.

Be sure to check your credit report with each of the 3 credit bureaus. Make sure all the information is current and up to date. The credit bureaus will allow you to sign up for a security freeze.  The security freeze cost $5 to open and an additional $5 reinstate.  Once the freeze is put on the account no additional credit can be obtained. The security freeze will help limit your risk to fraud.

Source:  http://www.epropertysites.com/blogs/1283475807/73/How-to-Maintain-and-Create-a-Good-Credit-Score.html

Distressed property sales accounted for 52.5% of the Southland resale market last month, up from 50.8% in September but down from 53.7% a year earlier. Nearly one out of three homes resold last month was a foreclosure, while roughly one in five was a “short sale” according to DataQuick , a real estate information service.

Indicators of market distress continue to move in different directions. Foreclosure activity remains high by historical standards but is lower than peak levels reached over the last few years. Financing with multiple mortgages is very low and down payment size are stable, DataQuick reports.

“For a few months now, lower prices and amazingly low mortgage rates have kept resale activity slightly ahead of last year,” said John Walsh, DataQuick president.

Source: http://www.dqnews.com/Articles/2011/News/California/Southern-CA/RRSCA111115.aspx
 http://pacificpalisades.patch.com/articles /los-angeles-county-home-sales-jump-prices-dip-in-october-back-up-story-71097c26