Discover Publications, 6797 N. High St.
, #213, Worthington, OH 43085
Inside • JUNE/JULY 2011
BUNKER
HILL
UPS STORE SIMPLY HELP MARKET FIRST & HOPE PRIME GRIND
Listings • Market Stats • Sold Properties • Buyer/Seller Tips & More!
Marriott Announces New
377-Room L.A. Hotel Tower
development partnership in downtown Los
A Angeles has just announced an agreement with
Marriott International Inc. to develop a new 377-
room hotel tower adjacent to L.A. Live. The new hotel
RUSSELL CHAN EVAN FUJII
DRE# 01326223 DRE# 01370718 will serve the vibrant and growing destination known as
L.A. Live, a sports and entertainment district that
includes attractions such as the Staples Center, Nokia
Theatre, Grammy Museum, Los Angeles Convention
Center, numerous residential condominiums, Regal
Cinemas, restaurants and nightclubs.
The 22-story high-rise will be built at the Northwest
corner of Olympic Boulevard and Francisco Street.
Williams/Dame and Associates lead the partnership.
“We are pleased to join with Marriott International,
American Life Inc., Regional Center Management Los
Angeles, and Nomad Ventures LLC in this important
hospitality development that will create new jobs and
vitality in downtown Los Angeles,” said Homer
Williams of Williams/Dame & Associates.
The new hotel project will encompass 377 hotel
rooms and be managed by Marriott International. It will
be convenient for convention and event visitors to L.A.
Live, as well as those doing business in the downtown
area. Construction on the 300,000-square-foot building
Coming Soon is expected to begin in March 2012, with the grand
100 S Alameda St., 1st Floor, 874 S.F.
If your property is listed with another broker, this is not intended as a solicitation. The information available on this publication is not intended to be legal advice.
The reader is advised to consult with a qualified attorney on any legal matters. Information herein deemed realiable but not guaranteed.
PRESORTED
STANDARD
U.S. POSTAGE
PAID
DISCOVER
PUBLICATIONS
Over 5,000 in Circulation
opening slated for March 2014.
The 180 guest rooms at the Courtyard by Marriott
will be designed to provide comfort and functionality,
allowing business travelers the ability to both work and
relax. The brand’s contemporary, open and stylish lob-
bies are bright and welcoming, with areas for guests to
check email, gather with colleagues or simply unwind
over a nightcap.
Guests of the 197-room Residence Inn by Marriott®
will receive personalized service to make them feel wel-
comed and appreciated. Connectivity to home and
office, health and fitness options, and comfortable pub-
lic areas indoors and outdoors will allow travelers to
maintain balance while on the road.
The new Courtyard by Marriott® and Residence Inn
by Marriott® will be directly across the street from and
will rely on the adjacent amenities available at the
award-winning JW Marriott Los Angeles, L.A. Live, and
The Ritz-Carlton hotels. These amenities include meet-
ing and banquet areas and the Ritz-Carlton Spa, as well
as cafe and dining options within the hotels and L.A.
DP # 11330
Live. ■

Staging Your Home in
a Distressed Market
by Ethan Walker
When planning on selling your home in today’s dis-
tressed market, bear in mind that you’re competing
with short sales and/or bank-owned properties that will
be in conditions ranging from poor to decent. The big
thing to remember is that these types of properties can’t
compete with even a decently staged home, much less
a well staged home. However, since these properties
sell at a discount to the market, it is important to keep
your staging costs to a minimum to avoid driving up the
price of your home.
The staging rule of thumb to keep in mind: You are
trying to help potential buyers feel right away that your
home can become their castle. To do this, just remem-
ber the five senses: sight, sound, smell, taste and touch.
SIGHT
Light, bright homes with neutral tones and a few col-
orful accents appeal to more buyers. Bold, vivid colors
may be more you, but remember that you’re trying to
provide more of a blank canvas that a potential buyer
finds attractive now, but can also visualize making
their own.
SOUND
Ever heard the expressions the silence was deafening,
or quiet as a tomb? Well, walking into a totally silent
home can be like that—possibly eerie or oppressive,
RETAIL/COMMERCIAL/OFFICE
$1.06/SF/MONTH
490 N Garfield, Montebello
1 1
+ +
1 1
$1,650/MONTH
121 S Hope, 3rd Floor
If your property is listed with another broker, this is not intended as a solicitation. The information available on this publication is not intended to be legal advice. The reader is advised to consult with a qualified attorney on any legal matters.
Information herein deemed realiable but not guaranteed. The information available on this publication is not and is not intended to be, legal advice. The information is provided as a general reference periodical.
The reader is advised to consult with a qualified attorney on any legal matters. Information herein deemed reliable but not guaranteed.
2
Short Sales
W tiator, Wilshire Metro Realty has a high success
but rarely welcoming. Leave some soft, light music
playing to help provide a tranquil, inviting ambiance.
SMELL
Make sure to avoid any strong aromas. Of course it
makes sense to make sure noxious smells like pet odors,
last night’s fish dinner or poker-game cigars are not the
first thing to hit a potential buyer as they enter your
home—but don’t forget that exotic incense, heavy florals
and even cleanser smells can be offensive to many. Make
sure your home is aired out well, and then provide sim-
ple, clean, subtle aromas with the restrained use of pot-
pourri or air fresheners.
TASTE
Could a plate of fresh-baked cookies entice a buyer?
Maybe, maybe not—but it would certainly make your
home more memorable.
TOUCH
Physical comfort is important. Remember that
Ahhhh! feeling you get when you walk into a cool
building, getting out of the heat of summer? Any
Realtor® showing your home—and any potential
buyer—is going to be much more comfortable in your
home if your AC is set appropriately. Be careful not to
over-cool (or overheat!) but do try to make your home
feel comfortable to visitors. ■
©2011 McClatchy-Tribune Information Services.
2
+ OFT
2
$2,395/MONTH
600 W 9th Street, 3rd Floor
$2,100/MONTH
121 S Hope, 6th Floor
Introduction to
by Evan Fujii DRE #01370718
ith the assistance of an excellent third-party nego-
rate with short sales—helping numerous home-
owners avoid foreclosure and in one short sale transaction
obtaining approval for short sale in less than two weeks.
The California Association of Realtors estimates that only
20% of short sales were successful. In comparison, Wilshire
Metro Realty has a 95% short sale success rate.
What is a short sale?
Short sales are becoming more common throughout the
country, due to lower home prices. Homeowners who wish
to sell their properties, but owe more on them than they are
worth on the market may choose to negotiate with their
lenders in what is called a “short sale,” or selling their prop-
erty for less than market value in order to avoid forclosure
and damaging their credit. Lenders may benefit by avoiding
a long foreclosure and resale process. However, short sales
are not always easy or successful.
What if I am a seller interested in selling a short-sale
property?
Please note that not all lenders will offer a short-sale
option, and not all sellers will qualify for one. If you’re a sell-
er thinking about a short sale, our third-party negotiator can
contact your lender, find out if a short sale is right for you,
and help negotiate the selling price and deficiency judge-
ment. Wilshire Metro Realty can list your property and help
find you a buyer. Contact us today for more information.
What if I am a buyer interested in purchasing a short sale
property?
Buyers need to be careful too, since getting a deal on a
short sale is not as easy as it may sound. Short sales may
require doing some additional homework and assembling
the right paperwork. Wilshire Metro Realty can help you
successfully complete the purchase of a short sale property.
Wilshire Metro Realty represents buyers and sellers for
short sales, new home sales, resales, and bank-owned prop-
erties. Contact us today for all of your new-home and
investment property needs at (213) 629-2530, or visit
www.wilshiremetro.com ■
Wilshire Metro Realty, Inc. is not associated with the government,
and our service is not approved by the government or your lender.
You may stop doing business with us at any time. You may accept or
reject the offer of mortgage assistance we obtain from your lender. If
you reject the offer, you do not have to pay us. If you accept the offer,
you will have to pay us for our services. Even if you accept this offer
and use our service, your lender may not agree to change your loan.
+2
+L
2
$2,495/MONTH
100 S Alameda, 4th Floor
1
+
1
$2,350/MONTH
840 E Green, Pasadena
If your property is listed with another broker, this is not intended as a solicitation. The information available on this publication is not intended to be legal advice.
The reader is advised to consult with a qualified attorney on any legal matters. Information herein deemed realiable but not guaranteed. 3
 r e a l e s t a t e h e a d l i n e s

Retirees Make Next Move: Upside to Sluggish Economy?

Senior Housing More Affordable
For a number of retirees, there may be an
upside to a sluggish economy—many active-
adult communities have become more afford-
able.
In fact, analysts say that in some parts of the
country, housing prices are the lowest they
have been in five years, often with interest rates
to match, plus cash incentives and offers of
designer options at lower prices.
Even if price is not a consideration, owning
a home still presents a number of perks to
retired Americans, including tax write-offs on
the mortgage interest paid and the potential
for long-term appreciation. There are also the
less tangible, but often no less important ben-
efits, such as the satisfaction of realizing a
dream to move to a sunny climate and com-
mitting to a more leisurely lifestyle.
Efforts To Avert Foreclosures
Republicans and Democrats on Capitol Hill
agree that the Obama administration’s foreclo-
sure prevention efforts have been ineffective,
but the parties are at odds on whether
Congress should kill the programs.
Rep. Patrick McHenry, R-N.C., said at a
House hearing recently that the Treasury
Department’s Home Affordable Modification
Program should be ended because it was doing
“active harm” to at-risk borrowers by allowing
banks to string them along.
Under the program, a struggling homeown-
er can make temporarily reduced mortgage
payments as part of a trial-loan modification,
while the lender determines whether the mod-
ification can be made permanent. But if a per-
manent modification is rejected, the borrower
is required to make up the difference in pay-
ments and pay late fees, putting the homeown-
er deeper in debt, McHenry said.
But Democrats said the programs should be
Publisher
Evan Fujii, Russell Chan,
Joseph Kang
800 W 1st Street, Suite 400
Los Angeles, CA 90012
213.629.2530 Office
213.617.0384 Fax
www.wilshiremetro.com
fixed, not terminated. you don’t need much lawn at all.
“The question really is: Who do you punish Gardens for homegrown food have been an
if the program isn’t perfect?” said Rep. Al important part of American homes from the
Green, D-Texas. “Do you punish the people early pioneers to World War II Victory gar-
who can benefit from the program by elimi- dens. Now, however, a recent survey has found
nating it?” that food gardens have re-emerged as a new
Republicans have introduced bills to shut technique to increase the sustainability of a
down the Home Affordable Modification home. Nearly one-in-five residential-landscape
Program and three other foreclosure-preven- architects is replacing part or all of traditional 6797 N. High Street, Suite 213
tion initiatives. grass lawns with vegetable gardens, according
Worthington, Ohio 43085
(614) 785-1111
Republicans have long targeted the modifi- to a survey by the American Society of www.DiscoverPublications.com
cation program, but bills to kill it and the Landscape Architects (ASLA).
other initiatives to stem foreclosures are “Not only do you benefit from fresh pro-
unlikely to pass the Senate. Still, Republicans duce, but these gardens offer lower-mainte- Sudoku, Scrabble, etc. distributed by
could try to include such legislation in any nance time and utility costs compared to turf Tribune Media Service.
budget deal they strike with Democrats and grass, while substantially increasing the sus-
the White House. tainability of a home,” said ASLA President © Copyright 2011 by
Gary Scott, FASLA. “Plus, there’s nothing Discover Publications, Inc.
All rights reserved.
Green Alternatives to Lawns more convenient or sustainable than home-
You don’t always need a lush lawn to make grown food.” ■
the neighbors green with envy. Sometimes,

Spare Cash Goes Back Into Homes

®
by Paul Owers

With the economy starting to recover, con-

sumers feel better about spending again—
and that spare cash is going back into their
homes. Home remodeling is on an upswing
The UPS Store TM

after the industry’s worst slump since at least

the early 1960s.
Scores of foreclosed properties need a ton
of TLC, prompting buyers to renovate those
NOTARY
tired or tattered spaces. Many other home-
owners want to improve because they don’t
plan to move—either by choice or by cir-
cumstance.
LIVE SCAN-
Some love their homes but say they’d be
more comfortable living there longer if they
had new kitchens and baths.
Others are caught in the housing conun-
FINGERPRINTING
drum, unable to sell and move because they
owe far more than their homes are worth, a
particular problem in areas where housing
boomed, then tanked. As a result, they’re Harvard University’s Joint Center for
SHIPPING
investing in new floors, replacing windows Housing Studies recently issued a report that
and doors, and making other changes as they
wait for home sales and prices to rebound.
“A lot of people are saying, ‘We’re here for
revealed the nation’s home-improvement
market, at nearly $290 billion in 2009, stands
to benefit from a post-recession glow of sorts.
PACKING
the long haul now,’” said Bill Feinberg, pres-
ident of Allied Kitchen & Bath in Fort
Lauderdale. “My showroom has been non-
stop busy. We’re getting big orders on a con-
The report predicted that spending on home
improvements would increase at an average
3.5 percent pace in the next few years.
Residents without equity in their homes
BANNERS
sistent basis.”
An Allied client, Ilana Mosser, recently
completed a renovation to her Coral Springs,
Fla., home she bought in 2002. Mosser said
are raiding their savings accounts and
embarking on more budget-friendly
upgrades, remodelers say.
For many, though, financing remains an
MAIL BOX RENTALS
the house “had good bones to it” but the issue. Banks have been reluctant to lend dur-
decor was dated. So she and her husband,
Ken, gutted the kitchen, ripped up the tile,
renovated a bathroom, removed the popcorn
ing the past few years, preferring instead to
boost capital amid the recession.
But Ward Kellogg, chief executive of Boca
645 West 9th Street, Ste. 110
ceiling and added hurricane-proof windows, Raton, Fla.-based Paradise Bank, said he
among other changes.
Their goal: Make the house an oasis, a place
expects banks to start lending more in the
next year. Low-home appraisals have been the
(on FLOWER before 9th Street)
where they and their 13-year-old daughter, biggest hurdle in qualifying for home-equity
Valerie, would want to stay for 15 years or
longer. “Who’s going anywhere?” said Ilana
Mosser, 44, a headhunter for physicians. “I
loans, Kellogg said. One way to remedy that:
include the value of the improvements in the
appraisal. ■
213.620.0081
www.theupsstore.com/4977.htm
want Valerie to come home someday and say,
‘I want to have an engagement party here.’” ©2011, McClatchy-Tribune Information Services.

If your property is listed with another broker, this is not intended as a solicitation. The information available on this publication is not intended to be legal advice.
4 The reader is advised to consult with a qualified attorney on any legal matters. Information herein deemed realiable but not guaranteed.
 s e l l e r ’ s c o r n e r

Buyers, Sellers Struggle to Reconcile

Perception of Home Values
by Alan J. Heavens “They realized that while they would be that they should be allowed to rise to their er price drops than others, he said: Homes
getting less for their house, they could like- “natural level,” which would allow home selling between $500,000 and $1 million
Whether any given house for sale is ly pay less for the one they were buying,” prices to fall. are down 10 percent from the peak of the
properly priced for the market depends on Duffy said. In 2002, Millinghausen sold a house in housing boom, while houses valued at $1
which side of the trench you are standing. Realistic pricing is the key to getting the Ambler and moved to Lancaster, Pa. When million and above have fallen 20 percent.
Sam Millinghausen of Ambler, Pa., a market moving, Millinghausen said. He he returned in 2005 to start his own law Duffy readily agreed that some agents
lawyer who has been looking to buy for said he believed that many agents set prices firm, he could not believe how much hous- will not tell sellers to ask realistic prices.
two years, said few houses he had seen fell high to keep values up and that the histor- ing prices had risen in three years. “We’ve turned down many listings
into the “properly priced” category. ically low interest rates of the past 10 “I was unwilling to spend $400,000 for because sellers wanted more than what the
In fact, he said, some of what he has seen months or so were not much of a trade-off. a house. I couldn’t because I was starting a market would bear,” he said. “Some of
is beyond belief. Take, for instance, the He also said he thought that interest business,” he said. those houses have remained on the market
house repossessed by a bank after foreclo- rates had been artificially depressed and Certain market segments have seen deep- for three or four years.”
sure that had three feet of standing water in Economist Kevin Gillen, vice president
the basement because the lender had at Econsult Corp. of Philadelphia, did
turned off the electricity—and the sump some mortgage calculations.
pump along with it. The fourth-quarter median price in the
“I didn’t want to even consider buying a Philadelphia metropolitan area was
house with mold issues,” said $200,000, Gillen said. (The median is the
Millinghausen, who has been renting. middle number; some houses sold for more,
Other houses he has seen were just as some for less.) With 20 percent down and a
bad or much worse, with many sellers 30-year rate of 5.05 percent, a buyer could
unwilling to get their properties in shape get a mortgage with a principal of $160,000
for the market. This despite surveys, such and a monthly payment of $864 (insurance
as a recent one by Coldwell Banker of 300 and other costs not included).
online consumers, that showed most If rates rose to 7 percent, to keep the
prospective buyers rank a “move-in ready” payment at $864, the buyer would be
home as important. looking at a mortgage with a principal of
Philadelphia-area broker John Duffy $130,000—meaning, with 20 percent
acknowledged that it was not until 18 down, purchasing a house worth only
months or more after the housing bubble $162,500, or 19 percent lower in value
burst that sellers began to abandon the than the $200,000 median. ■
belief that they could get as much money
for their homes as their neighbors did ©2011 McClatchy-Tribune
when they sold at the top of the market. Information Services.

DTLA SOLD FROM 3/1/11 TO 5/1/11

ADDRESS BR BA SQ. FT. SOLD PRICE
800 W 1st Street, 31st Floor 1 1.50 1,497 $521,500
880 W 1st Street, 2nd Floor 2 3.00 1,500 $443,000
880 W 1st Street, 1st Floor 2 2.00 1,217 $265,000
108 W 2nd Street, 7th Floor 1 1.00 1,040 $235,000
108 W 2nd Street, 6th Floor 1 1.00 1,040 $240,000
645 W 9th Street, 5th Floor 0 1.00 820 $300,000
645 W 9th Street, 3rd Floor 0 1.00 660 $253,000
600 W 9th Street, 3rd Floor 1 1.00 754 $280,000
600 W 9th Street, 2nd Floor 2 2.00 1,193 $375,000
600 W 9th Street, 6th Floor 2 2.00 1,193 $390,000
645 W 9th Street, 4th Floor 0 1.00 650 $275,000
600 W9th Street, 8th Floor 1 1.00 754 $280,000
600 W 9th Street, 14th Floor 2 2.00 1,621 $570,000
100 S Alameda, 2nd Floor 2 2.00 1,042 $325,000
100 S Alameda, 3rd Floor 2 2.00 1,042 $309,000 RUSSELL CHAN EVAN FUJII
100 S Alameda, 3rd Floor 3 2.00 1,213 $355,000 DRE# 01326223 DRE# 01370718
253 S Broadway, 5th Floor 1 1.00 1,100 $325,000
253 S Broadway, 4th Floor 0 1.00 750 $235,500
1130 S Flower, 1st Floo
1130 S Flower, 4th Floor
2
1
2.00
1.50
1,424
1,221
$389,000
$397,000
ABOUT WILSHIRE METRO REALTY
1130 S Flower, 2nd Floor 1 1.50 0 $342,000 Wilshire Metro Realty, Inc. is a top-producing real
1130 S Flower, 2nd Floor 1 2.00 1,260 $340,000 estate team proudly serving Los Angeles County and
1155 S Grand, 11th Floor 1 2.00 1,090 $455,000
specializing in Downtown Los Angeles.
1100 S Grand, A Level 2 2.00 1,560 $405,000
1155 S Grand, 15th Floor 1 1.00 856 $550,000
Wilshire Metro was founded in 1987 to serve the needs of the
1111 S Grand, 12th Floor 1 1.00 1,020 $365,000 Downtown residential community. In that year there were rough-
1111 S Grand, 6th Floor 1 1.00 970 $255,000 ly 850 condo units within the Downtown business district.
1111 S Grand, 6th Floor 1 1.50 1,200 $415,000
1155 S Grand, 11th Floor 1 1.00 856 $490,000 Today, it is estimated that more than 40,000 residents reside in
1155 S Grand, 13th Floor 1 2.00 1,230 $650,000 the Downtown Los Angeles area. Our years of experience and
1155 S Grand, 4th Floor 1 2.00 1,274 $549,000 knowledge of the existing and up-and-coming developments
1111 S Grand Ave, 9th Floor 1 1.00 1,100 $360,000 in Downtown and Southern California will help you find
1100 S Hope St, 5th Floor 1 1.00 990 $330,000
the place you have wanted in or outside the city.
1100 S Hope St, PH Level 2 3.00 1,920 $910,000
1100 S Hope St, 11th Floor 1 1.00 880 $304,500
© 2011 by Combined L.A./Westside MLS, Inc. Information deemed reliable but not guaranteed. Sales information for 90012, 90015 Zip Code Areas between March 1,
Call us today for your Real Estate Needs!
2011 to May 1, 2011.Broker/Agent does not guarantee the accuracy of the square footage, lot size or other information concerning the conditions or features of the
property provided by the seller or obtained from Public Records or other sources. Buyer is advised to independently verify the accuracy of all information through
personal inspection and with appropriate professionals. © 2011 by Combined L.A./Westside MLS, Inc. Information deemed reliable but not guaranteed.

If your property is listed with another broker, this is not intended as a solicitation. The information available on this publication is not intended to be legal advice.
The reader is advised to consult with a qualified attorney on any legal matters. Information herein deemed realiable but not guaranteed. 5
 s e l l e r ’ s c o r n e r
Increase Your Home’s Curb Appeal
by Aisha Sultan
pring, with its glorious weather and spirit of renewal, is
S a chance to ramp up your home’s curb appeal. We’ve
compiled a list of the 10 easiest, low-budget ways to
spruce up key elements of your home’s exterior.
1. Landscaping 101. Now is the time to take inventory of
your home’s landscaping. Visually inspect the areas needing
maintenance. Prune overgrown shrubs, bushes, trees and
plants. It’s time to weed flowerbeds, add fresh mulch and
plant flowers to add the vibrancy of color. Even those lacking
a green thumb can create container gardens and use hanging
planters to add interest and dimension to an entryway.
2. Lawn check. Reviving your lawn’s lush green grass will
instantly boost curb appeal. But, even smaller tasks deliver
impact. Get rid of weeds sprouting in the sidewalk.
Removing a tree that is blocking the view can make just as
much of a difference as adding one to liven up a barren land-
scape.
3. Mailbox makeover. A dingy, rusted or beat-up mailbox is
cheap to replace and makes a big difference in setting the
tone for your house’s exterior. If the mailbox is mounted
on a wooden post, consider applying a fresh coat of paint
to freshen its appearance.
4. Squeaky clean siding. The elements take a toll on a
house’s siding, and it may require a power wash to clean
stained or dirty siding. Do-it-yourselfers can get on a lad-
der, sweep away dirt and hose down the walls (or rent a
power washer).
5. Perfect for paint. It may be too ambitious and time-con-
suming to paint the entire exterior of your house, but a
new coat of paint on smaller areas can make a dramatic dif-
ference. Consider painting the trim or wooden shutters if
chipped or discolored.
6. Pay attention to details. It may seem minor, but little
Education provides poor children an opportunity
to change their destiny.
If your property is listed with another broker, this is not intended as a solicitation. The information available on this publication is not intended to be legal advice.
6 The reader is advised to consult with a qualified attorney on any legal matters. Information herein deemed realiable but not guaranteed.
How To Deduct
Costs Of Moving
by Chuck Myers
The cost of relocating to a new city or town has one
benefit that many people might overlook—a tax
deduction.
Certain moving expenses can be deducted on a tax
return, provided the tax filer meets very specific
requirements. Here is a sampling of sites that with
information about claiming moving expenses as a tax
deduction:
Bankrate.com
Three tests to qualify for a deduction.
www.bankrate.com/finance/taxes/deducting-mov-
ing-expenses8-128066.aspx
Internal Revenue Service
touches like new numbers on a house or a new light above Provides guidelines for claiming moving expenses
the door improve the overall aesthetic of your home. and nondeductible expenses.
Something as simple as replacing dirty old garbage cans www.irs.gov/pub/irs-pdf/p521.pdf
will make a difference.
Mover Max
7. Spring cleaning is not limited to a home’s interior. Features detailed deduction rules for claiming moving
It’s also time to clean out the gutters and wash the expenses.
windows. www.movermax.com/moving_guides/moving_expe
nses_and_taxes/moving_expenses_and_taxes.asp
8. Welcoming walkway. Brick or stone can create an elegant
walkway leading up to your home. Smart Money
Serves up the criteria for taking moving expenses
9. Light it up. Adequate lighting at night is a way to add deduction on tax returns.
security, as well as highlight the architectural elements of www.smartmoney.com/personal-
your home. Landscape lighting or solar fixtures can pro- finance/taxes/writing-off-moving-expenses-9565/
vide path lighting along a walkway, while porch lights
1040.com
should illuminate the main entrance.
Identifies qualified moving deductions, as well as
expenses that cannot be deducted.
10. Do the door right. The door is an important focal point www.1040.com/site/FederalTaxes/Deductions/Mo
of the home, and it’s easy to neglect. New hardware to vingExpenses/tabid/159/Default.aspx ■
replace rusted door handles or an outdated lock set also
makes an impact. ■ ©2011 McClatchy-Tribune Information Services.
©2011 McClatchy-Tribune Information Services.
BUNKER HILL MARKET DELI
Downtown L.A.’s Neighborhood Market.
Wide selection of Beer & Liquor
Import & Domestic Wines
Come in for our lunchtime specials
(213) 624 - 1245 - Open Late
800 W 1st Street
(Near 1st & Hope, Park in the rear of 800 W 1st Street Building)

Sound Advice for
First-Time Homebuyers
by Elizabeth Dennis
he number one reason for home fore-
T closures in the United States is a sim-
ple one: homeowners took out mort-
gages that they simply could not
afford. It is true that in many cases, the lenders
did not do much to prevent these doomed-to-
fail loans, and in many instances encouraged
them. Ultimately, it is the responsibility of the
homebuyer to know if they can afford a loan
that is offered to them. That said; let us take a
look at how critical it is to respect how much
you can actually, truly afford.
How Much Can You Afford?
A mortgage lender will use a standard calcu-
lation to determine how much he is willing to
lend you. He will gather from your applica-
tion, information about your income, debts,
credit and available down payment. By calcu-
lating what is called a debt-to-income ratio,
your lender will determine how much he can
safely (an extremely subjective term) lend you.
However, you must know the following
about the lender’s calculation:
• Only recurring debt is included, such as
home equity loans, car payments, mini-
mum credit card payments, student loans,
furniture store loans, alimony, child sup-
port, etc.
• Other miscellaneous debts and obliga-
tions such as informal personal loans are
not included
• Other household and living expenses are
not considered. Expenses associated with
your personal life style are not considered
800 W 1ST STREET (NEAR 1ST & HOPE)
Free Parking • Centrally Located
Your Downtown Neighborhood Real Estate Team
If your property is listed with another broker, this is not intended as a solicitation. The information available on this publication is not intended to be legal advice.
The reader is advised to consult with a qualified attorney on any legal matters. Information herein deemed realiable but not guaranteed.
• Future financial demands and plans with
regards to career and family are not con-
sidered
• The ratio is based on your gross income,
not after-tax income
As you can see, with the many debts and
obligations that are excluded in the lender’s
calculation, the amount of money he or she
can offer will most likely be higher than you
would have thought it to be. This is where
the trouble begins for many homebuyers.
Awaken the Responsible
Homebuyer Within
By the nature of the many debts and obli-
gations excluded from the debt-to-income
ratio, it should be obvious that the lender’s
number simply isn’t going to work for you.
This is where personal responsibility comes
into play. Do not ignore the discrepancy
between the lender’s numbers and what you
can truly afford. And don’t be discouraged.
This is your reality; embrace it and adjust.
Look a little harder for a suitable home that
fits your budget or perhaps rent until you
remove other debts or save for a larger down
payment. Do whatever it takes to avoid
becoming house poor or worse yet, foreclos-
ing on your new home.
When to Do Your Own Calculations
You can see the importance of running
your own numbers before you talk with a
lender. Walk into a lender’s office telling
them what you can afford and what you are
comfortable paying. ■
© Distributed By Tribune Media Services, Inc.
WILSHIRE
METRO
REALTY, INC.
DOWNTOWN
BUNKER HILL
OFFICE
b u y e r ’ s
ASK THE REAL ESTATE LAWYER:
How Does IRS Determine Capital Gains?
by Ilyce Glink and Samuel J. Tamkin
Q: On Ilyce’s radio show, I heard her suggest
that if you’re moving to a new location you
should rent for a year before making a house
purchase. This would give the renters the
opportunity to search out different areas and
make a more knowledgeable location decision.
That sounds smart. My question is how
long does a person have before taxes must be
paid on the profit from the sale of the previ-
ous home, and would the IRS consider these
profits capital gains?
Also, if a person rents past that period of
grace, what percentage of tax will be required
from the previous sale? What is your sugges-
tion for parking that sale profit for a few years
before another house purchase?
A: You should know that in general, the sale
of a home is independent of the purchase of a
new home. Years ago, you had to buy a
replacement home to avoid paying capital
gains taxes on the profits from the sale. It was
called the “rollover replacement rule,” and for
some reason, many people still think it exists.
Today, if you sell a home and your profit is
less than $250,000 (if you’re single; less than
$500,000 if you are married), you pay no
taxes on your profits or gains, as long as you’ve
lived in the home as your primary residence
for two of the last five years. If your profits
exceed these limits, you’d owe long-term capi-
tal gains tax if you owned the home for at least
12 months; you’d have to pay taxes at your
marginal tax rate if you own the home for less
than 12 months.
That means you could sell your home and
THE TOP CHOICE FOR DOWNTOWN
REAL ESTATE WILSHIRE METRO REALTY, INC.
DRE 01090146
IF YOU ARE LOOKING FOR SALES OR
LEASING SERVICES, CONTACT US TODAY!
c o r n e r
know immediately whether or not you owe
any taxes. It doesn’t matter what you do after
the sale with the proceeds: You can buy anoth-
er home, rent or move in with someone else.
If you’re in the process of selling a home
now, you should feel free to move forward
with that sale even if you have not found a
new home to move into—especially given the
state of the real estate market these days. The
cost basis of the property is the price you paid
for your home, minus the cost of sale. You
should also adjust that number to include the
costs of capital improvements made to the
home while you lived there.
IRS Publication 523 (available for free at
IRS.gov) gives examples on how to compute
the cost basis for your home.
If you’re selling an investment property, you
should know that you could owe taxes on the
profit from the sale and on the recapture of
depreciation taken over time on the property.
To defer the payment of taxes on the sale of
an investment property, the seller must use a
mechanism called a 1031 exchange on the sale
to then select a replacement property to pur-
chase within a certain amount of time. If you
follow the strict rules of a 1031 exchange, you
will defer paying any taxes on the sale of that
property until any replacement property is
sold and you don’t then defer the taxes again
using a 1031 exchange.
These exchanges are also called like-kind
exchanges or Starker trust exchanges. But
remember, these exchanges are reserved for
investment properties and not for primary res-
idences or second homes. ■
©2011 McClatchy-Tribune Media Services.
7
 108 W 2ND STREET, PENTHOUSE - $359,000

Coming Soon! Enjoy the Downtown views from your own huge private rooftop patio. This top-floor penthouse unit is part of a 10-story beaux-arts
styled building. Extra high ceilings, concrete floor on lower floor, wrought-iron staircase leads to loft area and rooftop deck. Extra storage on the
rooftop. Stove, fridge. 24 Hr security. Centrally located by restaurants and shops. Lower property taxes as this building is a Mills Act qualified building.

121 S HOPE STREET, 4TH FLOOR - $329,000

Wonderfully remodeled one-bedroom condo with fountain-courtyard views. Upgrades include: granite entry, upgraded kitchen cabinets, newer fix-
tures, laminate wood floors, fully redone bathroom with full tub and shower, custom closets in hallway and bedroom, and more. Great building
amenities: 24 hr security, gated parking, pool, spa, fitness-gym. Centrally located by the courthouse, concert hall, and financial district.

800 W 1ST STREET, 15TH FLOOR - $269,900

High-floor 1+1 condo unit part of the prestigious Bunker Hill Tower. South-facing skyline/city views, granite countertops, new cabinets,
new fixtures, walk-in closet. Excellent building amenities: guest parking, security, gym, heated pool, spa, sauna, and more.
Centrally located by the courthouse, concert hall, and financial district.

SHORT SALE - 100 S ALAMEDA, 1ST FLOOR - $265,000

Coming Soon! Short Sale. Large 1+1 unit is part of a spectacular collection of luxury condos spanning an entire city block at the heart of
Downtown. Discover an unparalleled “inner-resort” lifestyle built around a series of dramatic private courtyards offering pool, spa,
sculptural gardens and lush landscaping. Porte-cochere circular entry, gated/monitored subterranean parking, fine art displays, sports café,
screening room, library, fitness center, skyline deck with views, and more. Washer/Dryer in unit.

If your property is listed with another broker, this is not intended as a solicitation. The information available on this publication is not intended to be legal advice.
The reader is advised to consult with a qualified attorney on any legal matters. Information herein deemed realiable but not guaranteed.