SoCal Real Estate Law

I posted a short blurb on LinkedIn about my last blog post–the Irvine attorney who was arrested for a phony loan modification business.  LinkedIn adds your name before the post so that the post read as:

Laine Wagenseller Cal. lawyer arrested for phony loan modification biz–$1.25M in fees collected, no work done. Read more at my blog (socalrealestatelaw.com)

A friend called me in a panic to say that he had seen the LinkedIn posting about my arrest…  Not to worry!  I do not do loan modifications in any event but the arrested attorney was someone in Irvine.  Social media gone awry!

This (soon to be ex-) lawyer made $1.25 million in fees from phony loan modification cases.  What has now become the biggest issue facing the State Bar led to the first arrest–

     “An Irvine attorney accused of targeting hundreds of distressed homeowners became the first California lawyer arrested for illicit loan modification activities when he was charged with more than 100 felonies last month. Christopher Lee Diener [#187890] faces one count of conspiracy to commit grand theft, 116 counts of grand theft by false pretenses and a perjury charge. He faces up to 70 years in state prison if convicted.”

http://calbar.ca.gov/state/calbar/calbar_cbj.jsp?sCategoryPath=/Home/Attorney%20Resources/California%20Bar%20Journal/March2010&sCatHtmlPath=cbj/2010-03_TH_01_socalattorneyarrested.html&sCatHtmlTitle=Top%20Headlines

“General Growth Properties Inc Wednesday unveiled a bankruptcy exit plan bankrolled by Brookfield Asset Management that would split it in two, as suitors circled the second largest U.S. mall owner.”"General Growth signed non-disclosure agreements with Simon Property Group, the largest U.S. mall owner, and Australia’s Westfield Group, which would give them access to information about its business, according to sources familiar with the matter. The move is usually a precursor to possible bids.”

CNN/Money article:  http://money.cnn.com/news/newsfeeds/articles/reuters/MTFH54930_2010-02-25_01-14-52_N24236703.htm

“The number of commercial real-estate sales rose sharply in December, triggering fresh debate about whether the sector has reached bottom.”

“Property sales, a gauge of market health, rose 75% in December from the prior month, according to Real Capital Analytics. The end of the year traditionally sees an increase in volume. But the recent increase is significant even after adjusting for that, says Neal Elkin, president of REAL, a research firm that analyzed the data.”

Check out this article from the Wall Street Journal:  http://online.wsj.com/article/SB10001424052748703503804575083932444097338.html?mod=WSJ_Commercial_LEFTTopNews

“No one believed me that values were going to go up so soon,” says Dan Fasulo, head of research for Real Capital Analytics. “But there’s enough anecdotal evidence now that we’ve come well up off the bottom already.”

“Home prices are falling, rents are tumbling, and apartment vacancies are rising. So why are thousands of small investors becoming landlords?

Because real-estate prices have fallen much faster than rents, the math of buying a rental has actually improved substantially in most parts of the country. Money invested in an apartment complex today typically generates annual returns of 7% to 8% right off the bat, up from less than 6% at the peak of the housing bubble in 2006.”

See the rest of the Wall Street Journal Article entitled “For Landlords, the Numbers Are Starting To Look Better.”

http://online.wsj.com/article/SB10001424052748703798904575069341576405172.html?mod=WSJ_hpp_sections_personalfinance

Of course, while it may be a good time to buy a property, the ability to fund and finance a purchase is a huge sticking point:

“Being a landlord now isn’t easy. You need good credit and plenty of cash—as much as 50% of the purchase price—because banks are still skittish about lending. You need extra cash for handling repairs and vacancies, and you must have the patience to deal with difficult renters.”