Just Sold Condo in "The Estates" in Palos Verdes Using the Landed Teacher Assistance Program
My Buyer client just closed escrow on a very large 2 bedroom top floor condo in “The Estates” in Palos Verdes. Zip code is 90274 so some folks consider it to be Rolling Hills Estates but it is also characterized as Palos Verdes Peninsula. This community of townhomes and condos is located off Crenshaw Blvd near the Botanical Gardens as you head up the hill. It was built in the 70’s and definitely has the feel of those communities i.e. Brookside Village in South Redondo Beach. A little over 1100 Sq Ft on the top floor in a great location in an amazing school district for just over $500K. Sounds good to me.
But that’s not what I want to tell you about. I want to tell you about the Landed program which my buyer client used to purchase this property. (Full disclosure - I am approved as an agent to work with teachers using this amazing program.)
Landed offers down payment assistance to Teachers so they can afford to purchase homes in neighborhoods they might not otherwise be able to afford. Or just helps them buy when they don’t quite have the downpayment.
Landed offers up to 10% down payment assistance up to $120,000 to qualified Teachers.
So, if the Teacher has 10% and Landed provides another 10%, a 20% down offer can be made. Great. Here’s where it gets interesting.
You don’t make a payment - interest or principle, on the money Landed provides. They get paid back when the home is sold and they participate in the profit making them in effect a co-investor with the home owner.
Because you are not making a payment on the funds Landed provides, your overall payment is lower making qualifying possible when otherwise it might not. And it increases your cash flow.
When you do sell, Landed gets a percentage of the profit based on their contribution. If the property declines in value, they also share in a percentage of the loss. Wow.
If you are mathematically inclined you can probably figure out the break even point where the payments you would make versus sharing the profit balances out.
Contact me for more information. I am an approved Realtor for this program.