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Well, the 10-year yield briefly touched above the 3% level this past week; and the world did not end.  Lots of talking heads out there felt that was a key move.  And then others have been stating it really does not mean much.  For the moment, the second group seems to be the temporary leader.
Why Does a Strategic Mortgage Broker Provide Advice on Many Things vs. Just Giving Rates and Terms?

Okay, this popped up in my head after speaking at a function last week.  I was speaking on ways to help residential and commercial real estate professionals spot ways to help each other (and in turn make money in areas that are often missed).  I received some nice feedback; and I had one person ask me how I make money (clearly my message was a bit confusing).  I stated I make money when I facilitate loans in a commercial deal whether as a purchase or a refinance.
Often, I have written here in this weekly email about doing what you do best.  And, note we all have strengths and weaknesses (including me).  Probably due to my educational background and work history, I have been seen as that guy that has lots of diverse knowledge who is a protector type.  However, I am not one of those that is great at self-promotion.  I would much rather help someone than tell them how wonderful I am.  I am hoping they will figure that out either by hearing about me or with their own instincts.
Thus, I will look for areas of added value all the time.  That is why I write (and occasionally speak) on a variety of subjects   I figure if I can help clients and business partners succeed, then some of them will figure out that I can tie a lot of pieces together for the benefit of many.  
So, being the problem solver as well, my goal when helping others is to make them better.  Again, the technical consultant jumps up and kicks in to help.  My own assessment (and the assessment of some of my closest business partners) is that I would rather make someone else successful rather than focus on myself.  Now is that the greatest business decision?  I would say probably not.
However, fortunately, there are business partners that have figured me out.  It may have taken some time, but they have.  And, they are the ones that have been singing my praises.  They are my “Raving Fans;” who I must thank for making up for my marketing weaknesses.  They know that I am solid at protecting clients’ interests and making sure I provide solutions that minimize the cost of a lack of knowledge.
My role has always been to see things from the challenges of my business partners and/or clients.  Then, when I am called to perform on a commercial loan, I need to make sure things go smoothly and calmly.  I do not take the approach of overwhelming clients to ensure that they use me.  Rather, I want to take all the chaos in a transaction and simplify.  Many understand that I make it look easy when it is anything but.  A lot of people have much to lose if a commercial transaction falls apart.  My role is to keep it together; and work with any and all parties (even outside of my own lending world) to resolve issues to keep things on track.
I want to work with those that appreciate that approach.  They know what I do and why.  And when we are working with clients seeking this very style, then the referrals and introductions follow.  Believe me, this did not occur overnight.  I am just thankful that a few business partners and clients have trusted me enough to figure me out.
My apologies for the length this week.  Just my thanks to all for their continued confidence.

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.

Article of Interest:

The SJ Mercury News shared “Silicon Valley growth spurs huge office, R&D building boom.”

See the table below for approximate interest rates.
Type Rate Fixed Term
Apartments 4.525% – 5.100% 3 to 10 year (30 yr amortization)
Commercial 4.845% – 5.400% 3 to 10 year (25 yr amortization)
SBA Lending Call for Options Call for Options