Small Business Jobs Act enacts new provision: 1099s will be required for 2011 payments

The recently enacted Small Business Jobs Act includes a provision related to reporting requirements of rental property expense payments. After Dec. 31, 2010, the new law requires those who receive rental income from real property to file 1099s with the IRS for service providers such as plumbers, painters and accountants, who receive more than $600 in payments over the course of the year. Even though the 1099 forms will not need to be issued until early in 2012, it will be necessary to begin keeping track of payment information on Jan. 1, 2011, and to collect completed w-9 forms from service providers to obtain their names, addresses and taxpayer identification numbers.   Exceptions are provided for individuals renting their principal residences (including active members of the military), taxpayers whose rental income doesn’t exceed an IRS-determined minimal amount, and those for whom the reporting requirement would create a hardship (under IRS regulations).

Included in the provision is an increase in penalties for failure to file 1099s with the IRS. For further information, contact your tax accountant

The mile long stretch on Wilshire Boulevard between Fairfax and La Brea Avenues receives its name in the 1920’s. The land sat barren with only a few oil rigs to make up its skyline, until founder and developer of Miracle Mile, A.W. Ross came along. Ross purchased the land in 1920, with a vision of a lively banking industry to help the mile get out of its slump. The legendary Desmond Building kick-started the Mile, as is was the first business and retail complex brought to the area.

The section of land Ross purchased was between La Brea and Fairfax along Wilshire, He selected the area because of its close proximity to Los Angeles’s wealthiest residential districts: Westlake, Hollywood, and Beverly Hills. He saw the development of the tract in terms of the automobile, whose popularity had grown greatly during the late teens. Ross was planning to develop a suburban shopping center. At that time, Wilshire Blvd. was a dirt road. It’s most prominent structure was a billboard which read “Wilshire Boulevard Center- A.W. Ross Development”. His friends thought he was crazy but Ross could envision the possibilities. His dream became a reality and within 25 years and mid Wilshire went from barley fields to million dollar properties.

The area became home to styles that are now known as Art Deco, Streamline Moderne, and Spanish Colonial Revival Architecture. Ross’ efforts paid off, as the area quickly became a haven for business and the arts. Boutiques and department stores line the streets and businessmen and families gladly showcased the area’s prosperity, and the area became a landmark in Angeleno culture.

Today, Miracle Mile is home to many well known companies including Spelling Productions, Variety Magazine, E! Entertainment Television, and The Screen Actors Guild. The area is also best known for Museum Row; the cluster of museums that lie on three blocks of Wilshire Boulevard: California Craft & Folk Art Museum (5814 Wilshire Blvd), George C. Page Museum/La Brea Tar Pits (5801 Wilshire Blvd), The Los Angeles County Museum of Art (5905 Wilshire Boulevard), Petersen Automotive Museum (6060 Wilshire Blvd), and Architecture and Design Museum (5900 Wilshire Blvd). The Mile also hosts a number of galleries, complementing a fair share of artistic tastes.

Farmers Market located at the tip of the Miracle Mile on the corner of Fairfax Avenue and 3^rd Street (neighboring The Grove), standing complete with history, shopping, and autumn fun every October. The market came around during the beginning of LA’s reconstruction after the Depression, and offers more than 100 places to shop, eat, and an effortless way to enjoy the surrounding neighborhoods.

The district’s zip codes are 90036 and parts of 90019.

The median sales price for homes in Miracle Mile, Los Angeles for Sep 21 to Nov 21 was $905,000. Compared to the same period one year ago, the median sales price for home was $815,000 and the number of sales increased. Average price per square foot for Miracle Mile is $438.85.

Private Schools:

Westside Jewish Community Center, Shalhevet High School, Yeshiva Ray Isacohn Torath Emeth Academy, Daniel Murphy Catholic High School, Cathedral Chapel School.

Public Schools:

Miracle Mile public schools are zoned to the Los Angeles Unified School District, Board District 4. Hancock Park Elementary School, Third Street Elementary School , Wilshire Crest Elementary School, John Burroughs Middle School, Los Angeles Senior High School.

Feliz is “happy” in Spanish and it is a perfect name for a livable and pleasant area of Los Angeles. It’s hard to be unhappy when you are in walking distance of restaurants, coffee shops, boutiques, theaters, and sidewalk cafes on Vermont Avenue between Franklin and Hollywood, or the Hillhurst corridor between Los Feliz Boulevard and Prospect Avenue. In a city that drives everywhere, this bohemian community definitely stands out. It is home of California’s most tranquil neighborhoods and standout architecture. Los Feliz is also known for its beautiful hilly district where some homes have vast views of Los Angeles. The area of Los Feliz includes the famous Griffith Observatory and Greek Theater.

Los Feliz, originally known as Rancho Los Feliz, was one of the first land grants in California and was granted to Corporal Jose Vicente Feliz. An old adobe house build in the 1830s by Feliz’s heirs still stands on Crystal Springs Drive in Griffith Park, named for Colonel Griffith, who donated over half of the rancho to the city of Los Angeles. It later became Griffith Park, one of the largest municipal parks with urban wilderness area in the United States. The park is home to the Griffith Observatory, which features an extensive array of space and science-related displays, and the Los Angeles Zoo. The Greek Theatre is also located within Griffith Park. It’s one of L.A’s most historic entertainment venues and has hosted some of the biggest names in entertainment. Griffith Park also houses various children’s play areas, two 18-hole golf courses, a driving range and other sports fields, as well as hiking and equestrian trails. At Travel Town there is a miniature railroad operated by the Los Angeles Live Steamers and a collection of railroad locomotives, passenger cars and streetcars.

Los Feliz has historically been home to many stars, musicians and Hollywood elite. Today, young celebrities like Liv Tyler, Robert Pattinson, Natasha Bedingfield, Eva Mendes, and many more call the area home. It also boasts some of the best-known residential architecture in Los Angeles, including two homes designed by Frank Lloyd Wright: Ennis House and the Hollyhock House in Barnsdall Park.

When it comes to housing, you could end up paying as much as $8 million for a large mansion, or around $300,000 for a neighborhood house. The median home price is around $1,342,500, with average price per square foot of $533.54.

Residents in Los Feliz are assigned to the Los Angeles Unified School District which includes the local John Marshall High School. Private schools include the Lycée International de Los Angeles, a bilingual (French/English) school founded in 1978, and Immaculate Heart High School, a private Catholic high school for girls, established in 1906. Los Feliz Branch of the Los Angeles Public Library is located in Los Feliz Village.

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Here we go again on home prices.

Every time we get this report, we also get all kinds of questions from viewers/readers about why some media outlets report it one way and some another.

So here goes:

The S&P/Case-Shiller Home Price Indices report prices in the top 10 and 20 housing markets monthly, as well as a national number quarterly. The report offers year over year percentage gains and losses, then month to month gains and losses, seasonally adjusted and non-seasonally adjusted.

Why?

In a normal world, which we currently do not inhabit, home prices vary month to month due to the types of buyers. Families generally buy in the Spring, looking to move up to bigger homes and make the move over the summer, so as not to disrupt school. Older or single buyers, also first time buyers, tend to be the majority in the Fall; they buy smaller and less expensive homes, thereby skewing the prices lower, just by virtue of what they’re buying.

This is why I believe year over year is a much better indicator, since you’re comparing absolute apples to apples. The trouble is that in today’s world, the apples are mangled and mashed, thanks to all kinds of government intervention in the housing/mortgage market. The Feds have messed with taxes, mortgage interest rates and foreclosure inventories, which in turn make the usual seasonal shifts irrelevant. That’s why this report began offering the monthly data with and without monthly seasonal adjustments.

In the July report, which came out today, just looking at the 20-city composite, you see prices up 3.2 percent year over year.

This is positive, but less positive than the 4.2 percent annual rise in June. Prices rose 0.6% from June to July, 2010, without a seasonal adjustment, and fell 0.1 percent with a seasonal adjustment.

Pick your poison.

To add to the mess, this report is really a 3-month running average of home prices, so it’s not just July, which means the now-expired home buyer tax credit is still factored in from May and June.

A reader asks an important question: “Wouldn’t the average price of home sales rise no matter how many homes sold as long as they were higher priced homes selling instead of starter homes? Are high volume resale markets of Las Vegas, Orange County, South Florida, and Phoenix shrinking and contributing less to the final figures?”

Answer from S&P’s David Blitzer: “No, not in a repeat sales index done the way S&P/Case-Shiller is done. A repeat sales index looks at all sales of all houses and calculates the annual rate of change for each house from the last sale to the current sale and then averages the rates of change. So in a period where only expensive houses sell, the question is not are the prices higher, but do the prices rise much faster than those of inexpensive houses? Our data show that in the boom it was the inexpensive houses which saw prices sky rocket, probably powered by sub-prime mortgages.

The effect you are concerned about does occur in an index based on the median price.

In that kind of index, if only expensive houses sell, prices will rise because there are fewer cheap houses in the mix.

The index published by the National Association of Realtors is a median price index.The advantage is that much simpler calculation.”

As the iconic Golden Mile of Los Angeles, the Wilshire Corridor consists of high rise condominiums, modest hotels, and Jewish synagogues located near world class shopping and dining of Beverly Hills. Due to dynamic developments, it is now home to a highly successful international elite, young Hollywood, and business moguls. Out of all the desirable condominiums, a few new and notably luxurious high rise homes- The Grand, The Carlyle, and The Californian offer spectacular views, top notch amenities and, generous floor plans.

The Grand, a division of Crescent Heights, is one of the many prominently prestigious addresses on the block.  As soon as guests step on the Italian marble floors that dominate the elegant lobby assigned with polished woods and contemporary art, the doorman generously gathers guests’ bags and escorts them to their coveted rooms. Concierge and valet  is on call 24 hours to assist guests with their every  whims and fancies.  Adjoining the lobby is the conference center and club room with catering kitchen to entertain the spoiled guests.  In addition, the fitness center features high quality equipment and is connected to a beautifully landscaped and furnished sundeck with a heated pool and whirlpool spa.  Floorplans range from 1850-2000 square feet and features walk-in-closets, wood cabinetry, marble vanity bathrooms, and General Electric appliances.

If that’s not enough, developers of The Plaza Hotel NY bring residences of Beverly Hills a new spin on luxury: The Carlyle Residences.  Not only do guests enjoy the luxury of entering a Fendi Casa two story lobby but also: white glove concierge service and valet 24 hours, a fully equipped fitness center created by Sports Club/LA, a heated pool, out door fireplace surrounded by elaborate landscaping, a private dining room with a butler’s pantry, a climate controlled wine cave, and an entertaining room with a catering kit.  Although floor plans are diverse, each unit features Poggenpohl kitchens with Miele appliances, light filled bathrooms with large tubs, climate control, and amazing ocean and city views. Prices range from $2.9-6.6 mil for  2700-5000 square feet.

A new addition to the Wilshire Corridor family is The Californian.  A two story sophisticated lobby welcomes articulate guests with a fireplace and library along with 24-hour reception services, executive business center, exercise salon, temperature-controlled wine cellar, and a heated lap pool and spa effortlessly immersed in a private garden with poolside cabanas.  Floorplans bestow two to three bedroom units with large living/dining rooms with wooden floors.  Kitchen includes a Carrera marble countertop and  center granite island while private master suite includes generous walk in closets.  Prices range from $2.8-4.7 mil for 2000-4000 square feet of luxury.



Santa Monica is one of California’s most architecturally, culturally, and historically significant communities. It is a city in western Los Angeles County, situated on Santa Monica Bay.

Santa Monica was originally developed as a seaside retreat at the turn of the last century. The railroad owners built the first version of the amusement park on Santa Monica pier as an attraction to fill empty train seats on weekends. Santa Monica grew into an urban, electric, and prosperous beach city whose real estate values are amongst the priciest in the world. Santa Monica is a very desirable city whose people are drawn to its accessibility and its progressiveness as a community. Today, Santa Monica is a mixture of very affluent, single-family neighborhoods, renters drawn by the high quality of life, lifelong surfers, young professionals, and students. There are a lot of hotels and restaurants as well as entertainment options. Santa Monica is located close to major sights like Venice Beach, Malibu, and Beverly Hills. Santa Monica remain sunny almost all the time, with comfortable 75ºF. At sunset, the most thrilling view in town is at the beach, from the top of the solar-powered 130-foot-high Pacific Wheel, the Ferris wheel at the Santa Monica Pier, the city’s iconic symbol.

The Santa Monica-Malibu Unified School District provides public education at the elementary and secondary levels. There are also plenty of prestigious private schools. Notable primary schools include the Carlthorp School and Santa Monica Montessori School. One of the best community colleges in Southern California, Santa Monica College is located in Santa Monica as well.

Places to see in Santa Monica

• California Heritage Museum

• Third Street Promenade

• Santa Monica Pier

• UCLA Discovery Center

• Bergamont Station

• Santa Monica Farmers Market

• Palisades Park

• Montana Avenue

• Santa Monica Place

• Ocean Avenue

Here are some of the real estate gems Santa Monica has to offer:

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The Larchmont Village, between Beverly  Boulevard and 3rd street, is a quaint and peaceful neighborhood and shopping district  located in the oldest and traditionally important  neighborhoods of Los Angeles.  This “small town feeling” neighborhood is surrounded by areas such as Hollywood, downtown, Los Angeles, and Beverly Hills, and functions as a retail shopping district to Hancock Park, Windsor Square, and Paramount Studios.

The abundance of boutiques, charming cafes, mom and pop bookstores, and the Farmers Market on any given Sunday provides Larchmont villagers a delightful place to peacefully dwell.   A few of the many shops and restaurants that inhabit the block are family and communal restaurant Le Pain Quotedien , Mrs. Green’s Natural Market, Crumbs Bakery Shop,  Bricks and Scones Coffee, and Cloth and Paper boutique.  Outside of Larchmont Village, beautifully lies Windsor Park-a garden oasis of broad lawns and ample trees for picnickers who want to enjoy nature.

Not only are the shops and cafes just darling, but many properties also exhibit a chic European vibe. Properties near Larchmont village such as 1920s California bungalows and grand old estates, are the most well preserved older homes in which the median price falls between $650,000 to $750,000.

One interesting and enchanting piece of property is the Mauretenia condos on Rossmore Blvd.  According to the Larchmont Chronicle, the “10 unit Streamline Modern complex” was created in 1934 by Milton J. Black for Wizard of Oz Tin Man Jack Haley and his family.  The penthouse, measured at 4,000 square feet, was owned by the Haleys and later John F Kennedy in 1960. Certainly, a magical place for Dorothy…..from Larchmont!

When you are ready to explore Larchmont Village real estate give us a call at 323-638-7567

Here are some current listings that we can show you:

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The Federal Housing Administration (FHA) is a mortgage funding program that helps those just starting out who would not normally qualify for a property loan from a bank or other lending company, to be able to buy a home. There are certain guidelines you must adhere to in order to be approved for an FHA loan.  FHA has lower standards than loans that are granted by conventional lending agencies.  These government loans are not direct loans from the government, but they are guaranteed or backed by the Federal Government.  New home buyers can easily qualify for a mortgage due to the way these financing arrangements are structured. One FHA loan requirement is the ability to prove that the home buyer has a good credit score and has made timely payments on their credit accounts. Also, there are several income types, such as Social Security, alimony, and unemployment benefits, that qualify as income for FHA loan requirements. Another good benefit is that only 3% of the cost of the home is needed as a down payment, a home buyer can get his or her home mortgage with a government guarantee. “FHA loans are an excellent vehicle for getting first time home buyers a leg up in home ownership,” says Shawn Kormondy, Real Estate Adviser with Reis Group, Inc. at Keller Williams Realty in Beverly Hills.

Advantages of FHA loan financing

• Lower required down payment
• FHA loans are assumable with a qualified borrower
• Higher qualifying ratios of 29% for housing and 41% for total indebtedness on existing construction; 31% for housing and 43% for total indebtedness on new construction
• Flexible underwriting requirements
• Gift funds for down payment and closing costs are allowed
• Up-front Mortgage Insurance Premium can be financed
• Seller can contribute up to 6% of purchase price toward closing cost and discount points
• Charges on conventional loans such as tax service fees, underwriting fees, copy & courier fees are not allowed to be charged to the buyer with FHA loans
• The FHA ARM has the best features on the market with a 1% annual interest rate cap and a 5% lifetime cap.

In addition, there are new requirements on condominiums as of February 1, 2010. the FHA now requires that an entire condominium project be FHA approved, discontinuing the prior “spot approval” for the sale individual units. Significantly, these regulations preclude FHA financing where 15% or more of the units are delinquent in paying fees and assessments. Additionally, only 50% of the units in a project may receive FHA financing, and that ratio will be reduced to 30% after 2010.

A dual agency exists when a brokerage allows an agent to represent both a buyer and seller in the same transaction.   Different states have different interpretations and limitations on dual agency. California allows dual agency relationships, but are they beneficial?

Disadvantages of dual agency for buyers and/or sellers:

Insufficient information:  A dual agent negotiates for each client while keeping confidential information, which prohibits either buyer or seller to benefit.  Dual agent cannot disclose to seller buyer’s price range and inform buyer the prices seller will accept.

Unfavorable price for buyer: Because an agent retains confidential information and knows of both party’s motives/desires, a dual agency easily allows an agent to sell a home at a higher price than what a buyer wants.  Certainly, a dual agent cannot keep both clients best interest.

Buyer not aware of home defects: Buyers may not be properly informed about home defects or other problems since the realtor is also helping the seller to sell the home.

Buyer not fully informed about better options: Agent may know of better properties that may be of interest to buyer, but fails to inform since agent needs to fulfill seller’s interest to sell their own property.

Informed consent is eliminated: Presumptive written consent replaces informed consent.  If a consumer signs a form in spite of its details, informed consent is assumed with the signature.  Such forms only reveal the brokerage practice, not the agent’s options, liabilities, or benefits.

Like an attorney that cannot represent both parties in a case, a dual agent will face a conflict of interest which is why many states require written agency disclosures for both parties to know who represents whom. Many states do not permit dual agency but a transaction brokerage which gives the buyer and seller limited representation with not fiduciary duty.    In some states such as Maryland, dual agency is allowed as an intra-company in which the same brokerage (and not agent of brokerage) represents both buyer and seller.  Under an intra-company, the agent that represents the buyer works under the same brokerage as the agent representing the seller in the same transaction.  If a state does allow dual agency, the agent must disclose his/her dual representation of both parties, and all parties must agree with written and informed consent.  An agent must remain neutral with buyer and seller and is limited in representing both parties.