skip to Main Content
So, we saw the 10-year yield come up a bit this past week.  With trade wars, the possibility of actual war, and our own continued domestic political drama, I suspect volatility will continue in both the stock and bond markets.

Mindset – What you Believe becomes your Truth

Okay, not to get too metaphysical here, but I felt compelled to bring this up.  For some reason, over the last week, I found myself in conversations with business partners who were so sure they were right that they were missing opportunities all over the place.  This is my mini slap to the back of your head (NCIS reference) to keep an open mind.  Just because you cannot think of a solution does not mean one does not exist.

If you want to be integral to your client’s success, then I suggest you surround yourself with some folks that are problem solvers that can think outside of the normal box.  It is either that or continue to be vulnerable to losing your clients to a competitor.

Top 25 Single Family Rental Growth Markets for 2017

I stumbled across a site last week from Attom Data Solutions.  I found this link that shows  the Top 25 Single Family Rental Growth Markets for 2017. I suggest you take a look at the link and the site to get familiar with the data presented.  I found it quite interesting for those clients wishing to acquire single family rentals at a reasonable price.

It provides a fair amount of data in the analysis (including year over year gross rental growth).  This might be of interest to some of your clients seeking a better understanding of the markets outside of California.  One still needs to do their due diligence, but this is a good starting point.

Investment Opportunities for Problem Solvers

Throughout the years I have often brought up that you can make significant returns by solving problems others cannot.  In the table below, one can notice an “Empty Drug Store.”  This has a very high cap rate due to it being vacant.  However, there is current cash flow from the former tenant who apparently is obligated to continue payments for some time.

If someone knows how to resolve the tenant issue, then I suspect there is a significant return (perhaps a double on your investment or more).

Resolving problems that others cannot is a lucrative approach to any business.  Keep your eyes and ears open to problems you know you or your contacts can solve.  It might provide another avenue for your business.

Investments Opportunities for Purchase with Strong Cash Flow:

Back on the January 15th update, I wrote about “Creating Residential Listings Using Commercial Opportunities.”  Each week,  I am presenting some of those investment opportunities to better educate all on what is actually available.  Note that these are all Single Tenant Net Leased properties that have listed in about the last 10 days.  In addition, I assumed a 5% loan with 50% down.  This is just a small sample of what is actually available.

If you assume investors in the Bay Area are getting a cash flow of 3.5%, then you can see the potential improvement with these properties above.  This approach is great for the investors desiring increased cash flow, an opportunity to get out of daily property management, and/or taking the challenges of rent control off the table.  Should you wish to discuss any of these or others, then give me a call.

That’s it for this week.  As always, feel free to give me a call with any of your strategic financing needs.

Articles of Interest:

MPA reported “Zillow to begin buying, selling homes directly.”

The SJ Mercury News shared “5 ways to solve California’s housing crisis.”

The SJ Mercury News also reported “San Jose office building deal downtown underscores Google bounce.”

See the table below for approximate interest rates.
Type Rate Fixed Term
Apartments 4.335% – 4.870% 3 to 10 year (30 yr amortization)
Commercial 4.655% – 5.170% 3 to 10 year (25 yr amortization)
SBA Lending Call for Options Call for Options