Monday, October 25, 2010

San Jose fourplex investments - short sales, REOs or regular sales?

We just toured 7 fourplexes in west San Jose and Campbell - short sales, bank owned and regular sales. The highlights?

1. Best price - $799,000 for 3,984 square feet on a 10,000 square foot lot. Awesome old growth tree landscaping in lieu of tacky patio area.
2. Best location - $770,000 for 2,986 square feet in west San Jose. Corner lot, private access to parking area and a garage for the owner's unit.
3. Worst price - the short sale in Campbell that had the best attributes. Why ask a lofty, over- market price on a short sale that needs to move?
4. Worst comparison - the regular sale identical building $68,000 under the short sale across the street.
5. Best after tour meal - La Pizzeria in downtown Campbell - 4 solid stars on Yelp.

Call us for great deals in the duplex - fourplex market. In San Jose, where there has been sub-prime, low down or no down lending, there is opportunity of short sales and bank owned property.

Wednesday, October 20, 2010

Santana Row Condos for Sale Update - Bank & Short Sales

Wow - there are condo homes to choose from on Santana Row! Amazingly there are homes on the market in an area where there has not been much to choose from in the last couple years. Both the De Forest and Margo buildings have units for sale - studios, one bedroom lofts and a couple larger units. If you want to own a pied-a-terre on the Row, an investment property or a principle residence, call us today to see the rare homes that are now on the market in Santana Row.

Bay Area Investment Real Estate - Mario Pinedo, CCIM Investment Update O...

Investment Property update for Silicon Valley. Single family home sales and commercial investment opportunities from and Intero Real Estate.

Wednesday, October 13, 2010

Bay Area Investment Real Estate - Mario Pinedo, CCIM Investment Update

Foreclosures Halted - Bank of America and Wells Fargo in Review

The current issue of reviewing the legality of banks foreclosing on borrowers is going to be a very long mess to unravel. Bank of America halted their foreclosure activity until they can review their procedures. Wells Fargo Bank is also reviewing all its pending foreclosure properties and those that it recently acquired. Does this mean that Bank of America and Wells Fargo are the only banks with liabilities to review? Heck no! Every bank is scrambling on how to best manage this mega mess. The Title Companies are sweating this too. And the real estate attorneys are salivating.
This will have a major impact on the market because home buyers and investors will not have certainty on a large segment of the housing inventory. This segment - bank owned homes in California - accounted for over 43% of sales in the last year!
A winner in this mess will be new home developers and owners of homes that have not been foreclosed on. The short sellers will also benefit because the banks will give them more time since foreclosure is essentially off the table for now. Short sellers may be cautious too because they will be dealing with banks that have more on their mind than the short selling of one person's particular home.
And this too shall pass, but when, that is to be seen...
What do you think this will do?

Saturday, October 9, 2010

Silicon Valley Apartments - is there an opportunity to invest?

Most Silicon Valley apartment owners are very happy these days - read: not motivated to sell - because their rents are stable or up and their vacancies are down. Why?

1. Banks have foreclosed on many home owners and this makes them new tenants.
2. Many young people who normally would be buying their first homes are still in the rental market because home financing is more difficult than before.
3. Apartment building financing over 4 units has always been based on the building's net cash flow (not on the owner's income). Therefore, most 5 unit building and above have required 40+% down payments which makes the investment properties very stable.
4. Low turn over in apartment building sales in Silicon Valley - so few buildings sold at the peak of prices a few years ago.

This is why we see so few apartment buildings on the market and especially so few good deals.

Ok - then where shall we invest?

1. duplex - fourplex market has had foreclosures and short sales because financing was loose and investors made uninformed decisions in the last 5 years.
2. Secondary markets to Silicon Valley: East Bay, Napa, Sonoma, Solano Counties - softness in the newer built single family homes has put pressure on rents in apartment buildings.
3. Non-performing note sales of buildings that were over-leveraged based on relationship lending. Many smaller banks lent on buildings outside of the traditional 5+ unit financing guidelines.

Where do you see opportunities in Silicon Valley apartment investments?

Friday, October 1, 2010

Should I sell now or next year?

A friend of mine just posed this question to me. Here is my reply:

That is a question that I cannot answer definitively without knowing more info. Aside from that, here are some things that I know:

1. Between Thanksgiving and NYE is the highest historical average sales price percentage of the year for a seller. (August is the lowest)

2. The market is slow in some areas and some price points and is hot in others. I would want to know what you have and where it is.

3. I am seeing a shift in the bank's strategies as to their defaulting home owners - some major banks are pushing more inventory to foreclosure sooner rather than "extend and pretend". This will start to have a negative impact in the 1st quarter of next year.

- the market cannot be defined in a generality. Each home, neighborhood, city, price point has a different selling strategy. More details helps me guide you to what is best for you, your home, your family and your finances. I hope this helps.