If you've found this blog post you are most likely already interested in the Element Lofts developed by the now bankrupt John Laing homes.
I spent all day saturday 11/28/09 with clients looking at all the different floorplans and learning about how the auction (run by IntelliMarket) is going to be run.
- Intellimarket runs auctions unlike any other Real Estate Auction company. They run a simultaneous auction which means all properties are auctioned at the same time. The entire auction is put on a 4 minute timer, every time a new bid is received the auction clock re starts, the auction isn't over until the 4 minute clock expires with no one bidding. Auction Manager Collen Lakshin said Intellimarket anticipates the auction to last ~ 1.5-2 hours though. But theoretically this auction could be over in 20 minutes. I think this auction format will be very focused and intense, as a buyer you really need to be engaged at all times (I recommend no screwing around bluetoothing your crackberry or shazamming the mood music with your iPhone). I highly reccommend attending one of the educational seminars if you are considering registering for this auction, they are held every weekend, every hour on the hour. Ms. Lakshin shared with us that Intellimarket held another local auction (I believe she said it was in Playa Del Rey) and the overbid above the minimum reserve prices ranged from 4-40%.
- You really need to understand the terms you are purchasing these properties under. All documents are made available to buyers ahead of time on the official auction website: http://auctionelement.com/library.php. If you are interested in having me represent you at the auction I'd be more than happy to sit down with you and answer any questions you may have about these documents or assist in your due diligence by researching answers to questions you may have direct from the company selling the properties or the auction company. You need to understand how this type of AS-IS sale differs from an AS-IS short sale or bank owned REO off the MLS since the properties are being sold out of receivership. You may even want to consult an attorney regarding whether or not the new construction warranties typically associated with new construction in the state of California are valid for this type of property or what would happen if something typically covered by a builder in a new construction scenario needed repair.
- Some of the Auction highlights:
- $2k cashiers check required to attend auction made out to buyers name
- 3% of sales price + auction premium due at end of auction (so buyer must bring checkbook)
- 3 day right of recisscion on all properties (buyer only has 3 days to due any inspection or change mind before deposit goes hard)
- 15 day financing contingency but if you go through BofA, they pre-approve you but can't close your loan at market rates you get your deposit back (still possible to use outside financing, call me for details)
- Seller is receiver, judge appointed custodian of the court to sell property
- HOA is funded and fully functional (so conventional financing should be possible)
- Supposedly BoA is anticipating being able to sell units with FHA financing
- Computer only lets you attach your buyer # to 1 property, investors can get up to 4 numbers
- Cancellations go back on market at retail price, they want people that buy at auction to get best deal
- $5000 minimum bid increments, all bids rounded up to closest $1000
- This is a different type of auction and I think it requires a different type of strategy to purchase successfully at. I've seen all floorplans and know which I like best, but if you are going to buy you should definitely go through yourself and have a look. I think it is crucial to go through and create your top 10-20 units you would consider buying set your max price based of detailed and accurate sales comps research and take brief notes so u remember which units you like and why. I will provide these services for you if allow me to represent you in your purchase. I've been involved with over 500 Residential Real Estate and Real Estate financing transactions so I'm confident I can provide a value added service to your transaction.
- Definitely spend the time to physically go through the building to familiarize yourself with the different layouts and floors and starting pricing
The auction is 12/13/2009 at the Ritz-Carlton in Marina Del Rey 4375 Admiralty Way at 1pm (**check in at 11am).
Forms needed to register for Element Auction in Marina Del Rey 12/13/2009:
- Broker Registration Form
- Bank of America Pre-Qual Form
- Auction Registration Form
- Cashiers Check for $2,000 made out to yourself
- Blank personal check for 3% of your winning purchase price (winning bid + 2%) - $2k cashiers check
I'm not a Real Estate Lawyer but I've been the president of a Condo Home Owners Association for 4+ years so it does make me a little more familiar with potential HOA related issues than a Realtor without that background.
Please contact me via this website or via the info below if you'd like to have someone assist you with strategizing and making sure you understand what your getting yourself into before purchasing one of these properties.
Do you think the minimum prices at the Element Auction are too high or awesome deals you want to keep on the DL so other people don't find out about them and bid them up last minute? Here is a link to compare the prices at Element to everything else that is current active in the Marina Del Rey market. Remember most of the low priced stuff are short sales most likely unapproved or not sellable for some other unknown reason because you can't get in touch with the listing agent. I've personally called on most of them and so I know their status or I haven't been able to get a return call from the listing agent...
I hope to get a chance to work with you, if not, best of luck!!
Post Auction Update: All units sold at auction, prices ranged from the low $400's to approximately ~$800k for the west facing penthouse (some units have come back on the market, call me at 310 874-1278 for more information on how they can be purchased). These units are comparable in price to other los angeles short sales but they are brand new and can be purchased immediately
Posted by Ben Nicolas on