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Okay, we definitely are seeing some volatility from the stock market as it continues its downward trend.  As investors were selling off some of their stock holdings, money flowed into the bond market looking for safer footing.  The 10-year yield dropped again in response this past week.  Even though future rate increases are on the horizon, interest rates felt more pressure to the downside from the falling stock market and the perceived weakness in the economy expected due to tariffs.

Let’s take a quick look where we are at.  Real estate prices are starting to fall, the stock market is correcting, and folks are getting nervous as their 401k balances are going down.  In the SF Bay Area, inventory in the residential market continues to expand.  Buyers are sitting more on the sideline hoping that prices will continue to decrease.

Realtors are concerned that transaction volume will continue the downward trend as well.  In some ways, all of this can be a self-fulfilling prophecy.  One can easily buy into all of this information on to a conclusion that the sky is falling.

Now let’s all take a deep breath.  Real estate (like the stock market) is all about a willing buyer and a willing seller.  Wait, so does that mean deals are still getting done?  Of course!

Depending on what role you professionally have, there is business to get done.  Just to help, I am listing some of the deals that I am working on.  Has business slowed down in my world? That would be a no.

So here is a partial list.  Take a look at it and see if any of it gives you ideas on what you can be doing with your own clients.

  • Hotel Construction financing deals
  • Refinancing of expensive SBA debt
  • Several Multi-Family purchases
  • Owner-User building purchases
  • Service Station refinance
  • Out of state Investment Property Purchases
  • Value-add investment purchases

Get organized and meet with your existing clients.  Many will have needs with their real estate wealth building objectives.  You do not need to have all the answers; just be their resource to getting connected with the right professionals.  Some clients will want to sell to lock in gains achieved through the years.  For those clients that want to move their money out of the local area, feel free to give me a call as I have resources all over the US.

Keep things in perspective as the true professionals will always be assisting clients and getting their fair share of the business being done.  If you want to bounce around some ideas, then let’s set up a time to sit down.

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 5.50% 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:

NREI reported “Cap Rates Inch Higher for San Francisco Apartment Buildings.”

Reuters reported “Tariffs begin to take bite out of U.S. corporate earnings growth.”

NREI also reported “Attractive Yields Keep Investors Interested in Secondary Markets, But Is a Shift Coming?

NREI shared “Risk Discipline in CRE Investing: Staying Cool When Others Are Losing Their Heads.”  Although the article looks at this topic through the lens of an asset manager, there are good solid tips that any investor should follow.

Bisnow shared “JPMorgan Bets Big On Silicon Valley With Plans To Build New Fintech Campus.”

The SJ Mercury News reported “It’s official: California’s housing market experiencing shift.” For most of us, this has been known for some time.

The Mercury News also reported “Bay Area tops U.S. in new office space, but lags in housing starts.”

See the table below for approximate interest rates.



Type Rate Fixed Term
Apartments 4.625% – 5.230% 3 to 10 year (30 yr amortization)
Commercial 4.925% – 5.530% 3 to 10 year (25 yr amortization)
SBA Lending Call for Options Call for Options
SV Commercial Lending