The Mills Act Hack for High Interest Rates

There are basically only 2 things:

1. Get the Seller to pay for some of your loan points

2. Buy a Mills Act property

The first one is not as easy. A good lender will be able to do some juggling, switching, replacing and adding and subtracting to get you the best rate. But you have to assume the seller will pay for your points, give you closing credits, or some a shave in price to help offset your rate.

Or, you can simply buy a Mills Act property that will cut your annual property taxes by between 60-70% off. Here's the math:

$1M price

Annual property taxes w/o Mills Act: $12,500/year, or $1041/month. Yes, that's like a quarter of your mortage or more.

Annual property taxes w/ Mills Act (assuming 70% off): $3750/year or $312.50/month. Think of all you can do with the $728.50/mo you'll save. Or in a lump sum, that's $8742/year. That's a vacation. Or a new Viking stove. Or nearly all your HOA dues paid for. 

Rates Up, But Prices Still High?

When rates go up, normally, prices start barreling down. But prices haven't gone down much at all. This is because there's not as much housing available to go around. When you see areas that have some more price softening, you'll see that the areas have more housing inventory. 

One thing is for sure, there are some deals to be had out there as the multiple offers are starting to go away, and price drops have increased and days on the market are also increasing about about 10 days compared to the same time last year.

Some interesting deals right now in DTLA based on Price/SF, rare corner, Mills Act, layout, etc:

Cornell Loft #704 - $465K - L-shaped layout, parking, massive windows, Mills Act

https://www.themls.com/mlslistingphoto/listing/slideshow/#/24-374153

Bartlett Loft #1304 - $465K - 14" ceilings, Mills Act, exposed brick, north facing

https://www.themls.com/mlslistingphoto/listing/slideshow/#/24-347225

Eckardt #504 - $489K - Parking, soaring ceilings, Mills Act

https://www.themls.com/mlslistingphoto/listing/slideshow/#/23-313901

Eckardt Loft #403 - $475K - Corner orientation parking, Mills Act

https://www.themls.com/mlslistingphoto/listing/slideshow/#/24-348103

Rowan Loft #816 - $550K - Rare corner with coveted park views, Mills Act

https://www.themls.com/mlslistingphoto/listing/slideshow/#/24-372451

Textile Loft #1002 - $595K - Parking, storage, corner orientation for stunning views, Mills Act

https://www.themls.com/mlslistingphoto/listing/slideshow/#/24-373185

EVO #402 - $599K - 2 bathrooms, luxury amenities, parking

https://www.themls.com/mlslistingphoto/listing/slideshow/#/24-375881

Eastern Columbia #307 - $810K - Massive 14' ceilings, coveted south facing, EV Charger, Mills Act

https://www.themls.com/mlslistingphoto/listing/slideshow/#/24-374437

Eastern Columbia #603 - $900K - Massive double unit, 2250sf, Mills Act, storage unit, parking

https://www.themls.com/mlslistingphoto/listing/slideshow/#/24-372451

Some Amazing Move-in Ready Mills Act Lofts for Sale Right Now

Eastern Columbia Penthouse #1210

2+3, 3320sf

Largest 4-level trophy penthouse! Amazing views, walk out to the pool deck. One owner and finally on the market. - The Agency, Kevin Dees

$3.699M

Eastern Columbia #511

1+2, 1740sf

Spacious and stunningly remodeled corner loft with a Scandi aesthetic. Features a rare private balcony. - Coldwell Banker, Yuri Huxley

$1.475M

Rowan #104

2+2, 1140sf

Fantastic 2-story loft with rare ground level roller door access. Ideal for filming, art studio etc. - Coldwell Banker, Tracy Do

$850K

Textile Loft #901

2+2, 1370sf

Bright and airy corner loft with windows galore. A true historic loft with amazing views. - KW, Peter Buoncore

$795K

Cornell Loft #301

0+1, 800sf

Gorgeous open plan studio loft with tons of natural west-facing light. - The Agency, Alice Cannington

$499K

Cornell Loft #302

1+1, 740sf

Beautifully preserved historic 1 bedroom with massive concrete structural walls. - Coldwell Banker, Yuri Huxley

$459K

COMING SOON - Eastern Columbia Loft - Lux Minimalism

Massive 1740sf loft. Featuring a stunning main bedroom with ensuite that feels like a spa.

Plus a guest bathroom, a Scandinavian-inspired kitchen, and a corner orientation with a rare balcony. 2 parking space privileges.

A beautiful urban sanctuary. 

Price and showings upon request.

310-869-2655

Cutest 1 Bedroom Loft in the Fashion District! - Cornell Loft #302 - Asking $459K

 

Can we say adorable? 740sf loft, a true 1 bedroom 1 bath with massive closet. The unit features all Bosch appliances throughout the kitchen, plus a Bosch W/D in the bathroom. 1 Parking space include. And Mills Act too. Asking $459K

OPEN HOUSES:

3/25 & 3/26 from 12-3pm

Cornell Loft

746 S. Los Angeles St #302, 90014

Mills Act Lofts for Sale in DTLA

Anyone wanting to save up to 70% off their property taxes per year should look into Mills Act properties. It's one of the best tax loopholes, and there are some fantastic Mills Act lofts for sale right now.

See all available props for sale here and inquire to see what's coming soon here:

https://reinventingdtla.com/mills-act-lofts

Investor Opps in DTLA

Units that get high rents and low price/SF in relation to recent comps. These are interesting opportunities to for investors.

Barker Block #131

$1.595M

2+3 / 2830sf

Arts District Massive industrial split/level loft with multiple living/working areas. Live/work space with a wide audience pool.

Compass, Thomas Atamian

Barker Block #102

$1.349M

2+2 / 2660sf

Arts District Massive industrial split/level loft with multiple living/working areas. Live/work space with a wide audience pool. Distressed sale with court confirmation. Cash preferred.

Coldwell Banker, June Ahn

Flower Street Lofts #123

$726K

1+2 / 1423sf

South Park Massive industrial split/level loft with multiple living/working areas. Live/work space with a wide audience pool. Amazing location within blocks to Crypto.com Arena, The Bloc, Fashion District, Financial District, etc.

Keller Williams, Joseph Iuliucci

Market Lofts #619

$799k

2+2 / 1370sf

South Park spacious 2 bedroom 2 bath loft style condo with front desk security and amenities galore. 

Loftway, Christiano Sampaio

Pan American #307

$599k

1+1 / 1000sf

Historic Core classic loft conversion with separate bedroom area, windows on opposite walls, balcony, Mills Act property tax savings.

KW, Miranti Bornvorsin

Yes, the Building Where Johnny Depp Once Owned Penthouses

The Eastern Columbia building has had some serious exposure lately. It's the building where Johnny and Amber used live. And there are some fabulous lofts for sale there right now. Located right at the south end of the historic core, the building is within a few block from the Museum Building, Ace Hotel, Whole Foods, Fashion District, Proper and Hoxton Hotels, The Bloc, Apple Flagship Store, Paul Smith, Cliftons and more. And did I mention that the building is a Mills Act Cultural Monument?

Loft #603

$2.25M / 2+3 / 2230sf /  2 Parking Space Privileges

Penthouse #4

$1.795M / 1+2 / 1780sf / 2 Parking Space Privileges

Douglas Elliman, Ernie Carswell

Loft #611

$1.495M / 2+2 / 1740sf /  2 Parking Space Privileges

Urban RE, Alex Limandri

Loft #708

$1.395M / 1+2 / 1540sf /  2 Parking Space Privileges / 2 Deeded Storage Units

Coldwell Banker, Yuri Huxley

Loft #701

$1.299M / 2+2 / 1390sf /  2 Parking Space Privileges

Executive Realty Group, Beata Mandel

Loft #902

$925K / 1+1 / 1280sf /  1 Parking Space 

KW, Anh Tran

Loft #202

$895K / 1+1 / 1150sf /  1 Parking Space 

Coldwell Banker, Yuri Huxley

Loft #805

$849K / 1+1 / 890sf /  1 Parking Space 

Compass, Jennifer Gainey

Loft #M7

$785M / 1+1 / 1120sf /  1 Parking Space 

Coldwell Banker, Yuri Huxley