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Once again, it was a very quiet week with respect to interest rates.  Lots of concern continues over trade wars, but we saw little movement in the 10-year.  Like many, I suspect the markets enjoyed the holiday week as well.

Reading the Room:

Throughout the years, I often use terms like “Business Dating” and “Uncommon Sense.”  Keeping things simple, I use these terms to help others understand that our business and personal lives have some similarities.  Some get it; and some do not.

We all have witnessed that poor person that is working too hard to try to impress.  They may use some very worn out pick-up lines that make you cringe.  You just know they do not get it.  And, sadly, somewhere along the line, they were convinced that it was far better to be cheesy than to be genuine.

Okay, now let’s take that over to the business world.  Fortunately, I do not witness this too much anymore.  However, I still see some of it occasionally.  And, when I do, I cringe just like it was a bad bar scene.

Pulling back for a moment, I realize we all are selling something to someone.  But, in today’s world, most have progressed to a consultative selling approach.  If a product or service solves a problem, then it is a win-win.  It is important to figure out what is important to a prospective client.  And, then I suggest figuring out how your goods or services help better the client’s situation.

Now back to my bad business bar scene.  I was sitting in a meeting this past week; and the representative really failed to read the room.  Or, this person was so locked into their own agenda, that they did not care.  Even if they had great ways to help the client, it was clear that they cared more about their own needs versus the needs of the client.  This is a great way to NOT create a relationship.

None of us are perfect.  Nevertheless, our approach to others does matter.  If we can feel that someone genuinely wants to better a situation, then we are much more receptive (even if that person stumbles a bit).  The flip side of this is certainly true.  In addition, typically, professionals that take the canned approach are so focused on their own needs that they miss lots of opportunities to help others.

I can go on and on about this specific experience.  My goal here is to have you take a look at how you do business.  Are you genuine?  Are you a virtual partner that over delivers?  Do you respect the time of others? Are you seeing things through the eyes of your clients to make things easier for them?

Clients can feel how you are.  If you keep their interests ahead of your own, then they will welcome you into their world.  Relax and be yourself.  Be better (thank you Lebron for that), help others succeed, and be present enough to know when you have overstayed your welcome.

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 5.25% 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:

Bisnow reported “Investors, Tenants Scramble For Space In Downtown San Jose As ‘Google Effect’ Takes Hold.”

WealthManagement.com shared “These Nine Factors Could Cause a Recession by 2020.”

CNBC reported “San Francisco house prices grew the fastest ever in the first half of 2018 as the tech boom shows no signs of slowing.”

 

See the table below for approximate interest rates.
Type Rate Fixed Term
Apartments 4.385% – 4.850% 3 to 10 year (30 yr amortization)
Commercial 4.695% – 5.150% 3 to 10 year (25 yr amortization)
SBA Lending Call for Options Call for Options
SV Commercial Lending