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With the 10-year yield continuing to move toward the bottom of its recent range, let’s just get into some other things for this week.

Below you will see a link for AREAA’s transportation event; and then also a couple of properties wanted.  Please review both as it pertains to you.

Commercial Real Estate and Effectively using Private Money:

For readers of this blog, I tend to find creative ways to avoid the use of private/hard money.  My goal is always to minimize the cost.  However, sometimes private money is the best and least costly solution.  I want to briefly go over a couple of ways it can and should be utilized.  The purpose here is to provide solutions to some painful problems.

Quick Close Required or an Underperforming Asset:  

Occasionally, depending on the client’s strategy, it is necessary to close quickly on a purchase.  There is such a strong upside to the deal that the client is willing and needs to secure the property quickly.  Then, after acquisition, the strategy can be implemented; and then more permanent financing can be obtained as the strategy dictates.

Examples of such scenarios include:

  • Financing falls apart late; and the client desires to stay in the deal and needs to close in 2 weeks or less roughly.
  • Client buys an under performing asset.  They typically have a game plan to stabilize or renovate the property.

In commercial real estate, problems happen.  Finding solutions to such problems can help you stand out.  Should you find you or your clients in any of these situations, then reach out to me for a strategic discussion.  If the plan is strong enough, then there are usually solutions available in the marketplace.

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

Upcoming Event:

AREAA Silicon Valley Presents Transportation in the Bay Area

For more information on this coming Thursday’s event at the Matrix in San Jose, please click on this link.

Properties Wanted:

Below I have a couple of Broker needs.  If you have your own off-market listing that fits the needs below, then please give me a call.

Articles of Interest:

Curbed reported “Bay Area cities decades—even centuries—behind on affordable housing, say analysts.”

The SJ Mercury News reported “Bay Area job market: Slowdown in view, experts predict.”

The SJ Mercury News also shared “Google buys steel foundry site it needs for downtown San Jose transit village.”

See the table below for approximate interest rates.

Type Rate Fixed Term
Apartments 4.085% – 4.670% 3 to 10 year (30 yr amortization)
Commercial 4.385% – 4.970% 3 to 10 year (25 yr amortization)
SBA Lending Call for Options Call for Options
SV Commercial Lending