real estate investing: Silicon Valley Multifamily Rental Properties 2/11/2014 - 02/10/14 11:37 PM
Silicon Valley multifamily rental properties are in great demand these days.  The most significant factor driving demand for housing - employment- is improving everywhere from Redwood City to San Jose.  Whether you're just starting out in residential real estate investment or would like to add units to your portfolio, I've listed below my top five recommendations for Silicon Valley multifamily rental properties currently for sale today.
Click on the Address to see additional photos and details about any of the properties listed below.  Use the appropriate tab to request more information or to schedule a visit.
  Silicon Valley Multifamily Rental Properties  
868-874 S … (0 comments)

real estate investing: Relocating Equity To Improve Rental Real Estate Profits - 12/27/13 07:31 AM
Many factors affect the value and net income of rental property.  Design and condition of the structure usually get the most attention, but savvy investors know that location has the most significant impact on profitability.  When acquiring rental property, we look for neighborhoods where tenants desire to live and will pay the most rent.  But we also know that, over time, some locations lose value for any number of reasons.  When this happens, we might consider relocating equity to improve rental real estate profits.
In the 1979 film “Being There” Peter Sellers plays Chance, a simple-minded young man who grows to middle-age without ever … (0 comments)

real estate investing: Getting Started As A Real Estate Investor - 12/05/13 02:26 AM
I’m often asked “what is the best method for getting started as a real estate investor?”  Most often, as an investor in small residential properties.  Since every potential investor has a unique educational background, skills, strengths, weaknesses and goals, there is no one-size-fits-all answer.  There are almost as many ways to make money through real estate investment as there are different types of investors.  Finding your most profitable – and possibly enjoyable – niche takes a little up-front self-examination and continued growth throughout your real estate journey.
Here are a few basic things to consider if you’re thinking about entering this … (0 comments)

real estate investing: Analyzing The Rental Property Operating Statement – Part 4 - 05/07/11 06:59 AM
In this series, we're analyzing rental property operating statements to find ways to maximize our return on investment.  In Part 1, we looked at ways to maximize revenue.  In Parts 2 and 3, we looked at controlling direct and indirect expenses.  In Part 4, our final installment, we'll look at how operating statements influence common performance measurements.  We'll also look at how those measurements support buy, sell and hold decisions.
Although there are dozens of measurements that can be applied to the financial performance of any business, rental property investors are most commonly concerned with these two:
Capitalization Rate:
    Cap … (0 comments)

real estate investing: Analyzing The Rental Property Operating Statement - Part Two - 04/25/11 04:06 PM
In Part One of this series we discussed how to analyze our rental property operating statement and improve the numbers by maximizing revenue.  In Part Two, we're going to focus on how to control direct expenses so that we can keep more of the revenue that we generate.
"It takes money to make money" is certainly true in the rental property business.  Our product is a well-located, clean and structurally-sound property that has cost us money to buy, maintain and manage.  The property continues to cost us money each month, so we need to find a balance between spending the right … (2 comments)

real estate investing: Screening Criteria For Buying Single Family Rentals - Final Decision - 04/13/11 04:22 AM
Single family homes can be great investments.  They command higher rents than condos and will increase in value better over time.  Single family homes are also easier to sell when the time comes to reposition equity.  In two previous installments, we discussed "basic" and "beyond basic" screening criteria for buying single family rental properties.  As investors in single family homes, many of us have dozens, perhaps hundreds, of homes to screen as potential investments.  We don't have time to research every house on the market, so we develop screening criteria that will us save time and money when we're ready to … (0 comments)

real estate investing: Beyond Basic Screening Criteria For Buying Single Family Rentals - 03/27/11 07:35 AM
Earlier this month I posted "Basic Screening Criteria For Buying Single Family Rentals," a blog that suggested three initial screening criteria for rental purchases:  location, price range, and configuration.  Today, let's go beyond the basics on our journey towards acquiring profitable investment properties.  We'll take a deeper look at properties on our screened list of investment candidates to see if there is one really worth buying.
To recap, we want to buy rental properties that are in neighborhoods that we have determined are good rental markets, and may be good future sale markets, too.  The asking price needs to be within … (1 comments)

real estate investing: Real Estate Jargon: What is a "Market"? - 03/21/11 10:41 AM
Buyers, sellers, investors, welcome back to another installment of Real Estate Jargon, aka, simple explanations of real estate terms normally not found in nature.
A common question put to real estate people as they run into acquaintances at the local Starbuck's is - "how's the market?"  Not wanting to appear ignorant or pessimistic, the common reply is "great!"  Unless the two people in this conversation are reading each other's minds, no useful information has been exchanged.  Is the question about the national housing market?  Local market conditions?  Whether or not the agent will have to send his daughter to Happy Valley … (0 comments)

real estate investing: Basic Screening Criteria For Buying Single Family Rentals - 03/18/11 04:12 AM
Single family homes are often the property of choice for residential property investors.  Operating margins are generally better than condos and the purchase price is more affordable than multi-family properties.  In many communities, dozens of homes come on the market each month, providing opportunity to begin investing or to add to an existing portfolio.
How, then, does an investor sort through the many available homes to find one that can be operated profitably?  I recommend three primary screening criteria:  location, price range, and configuration. 
Location.  Create geographic "green zones" where you prefer to own property.  These zones could be as large … (1 comments)

real estate investing: Real Estate Jargon: "Broker Compensation From Buyer" - 02/28/11 05:14 AM
Buyers, sellers, investors, welcome back to another installment of Real Estate Jargon, aka, simple explanations of real estate terms not normally found in nature.
Compensation to real estate brokers, seller's broker and buyer's broker, is typically a commission paid by the seller upon completion of a real estate transaction.  However, here in California, the standard California Association of REALTORS® residential listing form (CAR Form RLA) states in Section 29:  "If applicable, upon Close of Escrow, Buyer agrees to pay compensation to Broker as specified in a separate written agreement between Buyer and Broker."  That written agreement is usually a standard form … (1 comments)

real estate investing: Real Estate Jargon: "Non-Refundable" and "Pass-Through" Purchase Deposits - 02/05/11 07:06 AM
Buyers, sellers, investors, welcome back to another installment of Real Estate Jargon, aka, simple explanations of real estate terms normally not found in nature.
Real estate purchase contracts have a lot of moving parts and smart negotiators know how to align those parts to create an offer that stands out from the others.  Even in down markets, some properties receive multiple offers and the winning offer can be tough for a seller to choose.
Today, we'll take a look at making an offer stronger with "non-refundable" and "pass-through" security deposits.
Of the dozen+ features that a buyer might use to make … (1 comments)

real estate investing: Real Estate Jargon: "Tear Down" - 01/23/11 02:24 AM
Buyers, sellers, investors, welcome back to another installment of Real Estate Jargon, aka, simple explanations of real estate terms normally not found in nature.
Ever drive through a neighborhood you really like and see a house that is worn out beyond repair?  Bingo!  You've just landed at the end of the rainbow and found the pot of gold!  Home hunters and investors with a few bucks to spend often look for just this type of property.  Load-bearing walls that sag, front porch with half the floor boards missing, huge holes in the roof, ancient wiring and plumbing that leaks like a … (1 comments)

real estate investing: Real Estate Jargon: "Off Market" Is Not "Off The Market" - 01/09/11 04:46 AM
Buyers, sellers, investors, welcome back to another installment of Real Estate Jargon, aka, simple explanations of real estate terms normally not found in nature.
There are many ways to sell a home here in the good ole USA.  Sellers are free to sell it themselves, to hire a broker to sell it for them, or to not sell at all.  One way to sell is to offer the property "off market."
Unfortunately, even many real estate professionals confuse "off market" with "off the market."  Simply stated, "off the market" means that a property was for sale at one time but is … (0 comments)

real estate investing: Bay Area Market ... Multi-Family Properties in Mountain View and Sunnyvale, California - 12/29/10 01:17 AM
Mountain View and Sunnyvale are located in the heart of Silicon Valley, convenient to shopping, airports, and most of the major high tech business parks.  Prices for multi-family properties (5 units or more) have dropped significantly over the past three years, creating opportunity for both new and experienced residential investors to add multi-family properties to their portfolio.
Here are multi-family properties currently on the market in Mountain View and Sunnyvale for $2M and under:
S = Studio   SFR = single family home
To receive updates on multi-family and other income properties in the Bay Area, give me a call or shoot … (0 comments)

real estate investing: A Real Estate Investor Story: "This Place Looks Awful - I've Got To Have It!" - 11/18/10 11:41 AM
Real estate agents spend endless hours and lots of $$$ to make a property look good as it goes on the market.  Exterior upgrades, landscaping, interior de-cluttering, window coverings, fresh paint, and even staging.  Glossy color flyers, booklets and print advertising.  Video tours, photo galleries, property web sites and open houses.  Maximum effort to make the property as attractive as possible to increase its perceived value and raise the price.
Are these tactics effective in getting investment buyers to pay more?  I certainly hope not.
Some time ago, an investor asked to see a single family home that she thought would … (2 comments)

real estate investing: Take Time To Read Everything - Protect Yourself in Every Transaction - 11/13/10 08:31 AM
The mountain of paperwork involved in buying or selling real estate can be intimidating.  From the presentations we review to pick a broker to the final transfer deeds, just a list of the documents that will be read and signed could fill a few pages.
Is it really necessary to read everything?  Yes.
Is it OK to delegate review of some of those documents to our broker?  Never.
As the buyer or seller, you have a unique perspective in a real estate transaction.  No one knows more about the property than you.  No one cares as much about the property as … (2 comments)

real estate investing: Buyer Strategy: Don't Pay Broker Commissions At Closing - 07/19/10 12:43 PM
Buyers, you can work with a broker to buy a property without paying any commission at closing.  Do I have your attention?  Read on...
Ok, I admit that anyone who hires someone to do a job should pay them.  I'm often heard saying "this is the real estate business, not real estate friends."  Everyone who does a job expects to be paid.  Most agents and brokers have bills to pay and their only source of income is commissions, so they appreciate a check when transactions close.
But there are some brokers who have the flexibility to accept alternate forms of payment … (3 comments)

real estate investing: Real Estate Jargon: Is "Condotel" Ownership for You? - 07/07/10 02:20 AM
Buyers, sellers, investors, welcome back to another installment of Real Estate Jargon, aka, simple explanations of real estate terms not normally found in nature.  Today we're looking at "condotel."  Condotel is a hybrid term that is applied to properties that are part hotel and part condo.  You may have seen condotels offered for sale, but it's good to know about the complexities of condotel ownership before considering a purchase.
Condotels are typically suites hotels that allow individual ownership of each unit.  They are frequently located in resort areas that attract vacation renters, but may be a seasonal home for the owner.  … (0 comments)

real estate investing: Investment Strategies "Buying For Potential" - 06/30/10 04:51 AM
Home buyers are often asked by their agent to look past the current condition of a property and consider its potential.  New carpet, some paint, a little landscaping.  The highest potential value of many properties is often hidden beneath poor decorating choices, worn out furnishings, a poorly maintained structure, and lawns covered with weeds.  Rather than passing on a home that needs help to realize its full potential, buyers may consider a strategy that turns the condition of the property into negotiating leverage.
A similar approach can be used by investors acquiring rental property.  The seller will often set a sale … (0 comments)

real estate investing: Real Estate Jargon: "Supplemental Taxes" - 06/18/10 04:04 AM
Buyers, sellers, investors, welcome back to another installment of Real Estate Jargon, aka, simple explanations of real estate terms not normally found in nature.
Today we're going to talk about supplemental taxes in California, that little surprise bill that homeowners receive a few months after buying a property.  In short, supplemental taxes are the difference between the amount of property tax that has been pre-paid prior to a sale and the amount of additional tax that is due after a sale because of the higher assessed value (usually the sale price).  Confused?  Here is a simple illustration.
Joan bought a house … (0 comments)