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The 10-year yield bounced back up this past week.  I took a look at the chart; and it is now nearing the high from early October.  As always, many factors affect rates.  This time I suggest the stock market was the culprit once more.  The market recovered some of its recent losses; and it appeared that money left the bond market searching for higher returns over in the stock world.

Help Others and In Turn Help Yourself:

About 20 years back, I was in the insurance business.  Like any profession, there were the constant ups and downs.  However, one of my managers always stated to me during slower times “See more people.”  Of course, I would push back a bit as it certainly could not be that simple.  If it was, then I would do it.

Okay, let me bring this back to my thoughts for this week’s note.  Whether you have a handful of great relationships or many, just go find someone to impact in a positive way.  I keep hearing that business is slowing down for a bunch of folks.  A great way to feel better is to meet with your business partners and brainstorm.  Now is everyone good at this?  Nope.

However, just keep trying and see more people.  I have stated in the past to find out what their top two or three challenges are that would most impact their business.  If you discover a way to move them to the next level, then psychologically they will want to help you back.  And, even if they do not reciprocate, you will get plenty of positive vibes regardless.

Just be open, helpful, and perhaps a little vulnerable.  We all have weaknesses.  To provide a little perspective on this, I will let you in on my Friday.  For those that know me well, you are aware I walk my talk in my desire to impact others.  By the way, it is a lot easier to help others than yourself!

Okay, back to my story.  I have lunch with a business partner; and it was my goal to help this person on many levels.  I wanted to make an impact and determine areas where this Realtor had some competitive advantages.  So, I do my thing, make suggestions, and then somehow, I found out she was really good at something I am not.  Poof, now it was all about how we could help each other.  It is early and I do not know how well we will do on this collaboration, but it certainly was extremely encouraging.

The conclusion here is just go find people you know, like and trust.  Be helpful to them.  You might stumble upon ways to help each other even in a market that might be perceived as challenging.

Trust me, I could go on and on about this topic.  There were two other big positives that came my way on Friday.  Remember how I stated it is a lot easier to help others than yourself.  Well, sometimes, all those good deeds go full circle and pay you dividends in ways you have no idea about.  Be patient, be helpful, and be optimistic.  No matter what, you will probably enjoy this approach a lot more than doing nothing!

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 “Identifying Lucrative Value-Add Multifamily Opportunities as the Cycle Lengthens.”

CNBC reported “Here’s the salary you need to afford a home in the 14 biggest US cities.”

Commercial Property Executive reported “San Diego’s Next Role: Tech Hub?

The SJ Mercury News reported “Google grabs big north San Jose office buildings.

See the table below for approximate interest rates.



Type Rate Fixed Term
Apartments 4.635% – 5.260% 3 to 10 year (30 yr amortization)
Commercial 4.945% – 5.560% 3 to 10 year (25 yr amortization)
SBA Lending Call for Options Call for Options
SV Commercial Lending