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The 10-year yield continued in its trading channel again this past week.  We have been here for a few weeks.  For now, not really much insight to share.

NHORA Conference

This past Thursday, NHORA put on their inaugural regional conference.  Now many groups do a great job organizing these affairs; and I have been to many.  I want to give some credit to these folks as they put on this function in about 62 days!  And, remember, these people still were working in their own respective careers.

So, first, I would like to call out as many of the organizers as I can.  If I have left someone off, then my apologies.

Maria Casillas
Gema Smith
Lupe Silva
Gina Gonzales
Guille Reynoso
Tim Smith
Robert Huibers

This group managed to pull off getting Josh Altman (Million Dollar Listing fame) as their keynote speaker.  In addition, they were able to gain sponsorship for the event to make it fiscally responsible.  And, many speakers volunteered their time to make the event worthwhile for the attendees.

These conferences remind us that there are many ways to succeed in the Real Estate business.  I sat in on a few sessions; and here are some of my observations.

  • Top Producer swears by “Image is Everything”
  • Top Producer ties success to “Being Authentic”

Note that they were on the same panel and both do very well.  My point here is that both approaches work.  For each of us in our own careers, we just have to figure out if either of those feel comfortable.  The key is to figure out what works best and then commit oneself to it.

I also sat in on a session about creating wealth with investment real estate.  Again, there was more than one approach.

  • Invest locally in what you know.  This was shared by more than one of the panelists.
  • Invest for cash flow outside of the area.

Now I am simplifying here a bit.  However, these three gentlemen all worked hard towards creating another stream of income from their investments.  Again, both of these approaches work for different reasons.  Investing locally is fine; and the panelists all wished they would have bought more properties early on.  Now they can help their clients move toward achieving similar results.

These are just a few points from the sessions.  Conferences, like these, are great ways to network with others; and then to get ideas that you may wish to adapt.  Again, congratulations to NHORA for pulling off a successful event in such a short amount of time.

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.

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 “California Super-Commuters Are Transforming Sleepy Suburbs Into Busy Metros.”

The San Jose Mercury News shared “Bay Area cost of living spikes in 2018.

See the table below for approximate interest rates.
Type Rate Fixed Term
Apartments 4.325% – 4.850% 3 to 10 year (30 yr amortization)
Commercial 4.635% – 5.150% 3 to 10 year (25 yr amortization)
SBA Lending Call for Options Call for Options