Yes, there are, but the deals are of a different type. When the DTLA market was just starting to pick up again in late 2012, buyers were able to choose from not only standard sales, but short sales and foreclosures. In 2013, the short sales had been mostly snatched up--many by cash buyers and investors. But not all deals are in the form of short sales and foreclosures. These days, the deals to be had are the pocket listings, stale listings and buildings with litigation.
POCKET LISTINGS, often called "secret listings" and "private listings," are those that are not published on the MLS or advertised. Sellers who don't want the world to know they are selling or want their name to be kept private until a sale records is often the reason for these listings. These properties are sold by agents who have a private list of ready and willing buyers, or who have a network of other agents who have ready and willing buyers. The general public will never even know these listings exist. The great thing about pocket listings is that there's usually one bidder, so the chances of your offer getting accepted (or at least countered) is much greater, and without the price inflation which is often the result of multiple offers. More than half of my buyer clients have bought pocket listings, avoiding the multiple offer mess that causes long agonizing waits and oftentimes drives up prices.
STALE LISTINGS are those that have been sitting on the market for more than 90 days. While most DTLA real estate moves quickly, those that have sat for a while because of bad timing, a buyer backing out, or litigation on the building, can be deals in disguise. One of my clients just bought an amazing loft at well under the market rates because the loft had fallen out of escrow due to a lender that couldn't perform. The loft sat for a few more weeks, making it look even less attractive. Upon hearing that this ginormous loft was back on the market, the buyer swooped in and bid 49k below asking and got an accepted offer because the seller was desperate to get into another escrow.
While LITIGATION isn't ideal, the reality is that a LOT of buildings are involved in some form of litigation, oftentimes with the developer. This means that most lenders can't offer a loan for that building due to risk and this tends to drive prices down in a building. While a lawsuit scares most people and lenders away, buyers who can find a lender are getting accepted offers at below market prices. The catch is that you often have to put a higher downpayment in order to get viable financing on the property. The thing is, lawsuits eventually go away, but a good investment can be forever.
Send an email to info@sartparker.com if you'd like to be on the list to receive pocket listings as we get them.
