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This past week, the 10-year yield stayed pretty much the same.  However, the volatility in both the stock and bond markets continued.  Depending on who one listens to, fear of increased inflation seems to be looming.  However, it is difficult to figure out whether the 10-year yield will shoot past 3.0%.  It could just as easily pull back as global investors may see that number as a buying opportunity.  If that demand comes in, then rates will pull back once more.

 

Partnering:

Each week, I attempt to offer some thoughts that could be helpful.  One idea that I push is a lot of us could partner much more effectively.  We just need to take the time to see where the opportunities exist.

I have had several meetings with that approach.  There are many ways for each of us to use skills to complement business partners.  For an example, one of my business partners has lots of major opportunities that provide great returns, but he cannot give each opportunity the attention needed.  We want to sit down to see if we can somehow partner up for the benefit of all.

It really comes down to what things (if solved) would bring a large return.  For those that know the answer to that, then it is matching that need with the appropriate partners.  Anyway, this can be one area that I hope some of you can utilize to improve your own bottom-line this year.

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% loan with 50% down.  This is just a small sample of what is actually available (for a larger version of the list, click here).


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:

Bisnow reported “Tech Giants Like Facebook, Google Are Building Homes To Assuage Housing Concerns. Will Amazon Do The Same?

The Registry reported “San Jose Approves Sale of Land to Google for $67MM.

See the table below for approximate interest rates.
Type Rate Fixed Term
Apartments 4.420% – 5.115% 3 to 10 year (30 yr amortization)
Commercial 4.750% – 5.415% 3 to 10 year (25 yr amortization)
SBA Lending Call for Options Call for Options