The 10-year yield actually dropped this past week.  I believe this interest rate reprieve was due to the stock market taking a few hits.  During the same time-frame as the weekly change in the 10-year yield, the Dow dropped a little over 4%.  It is likely that big money took their gains in the stock market; and then they bought bonds as a flight to safety.  If the demand for bonds increased, then the yield would drop.

Now this does not mean anything further than this past week.  My guess is we will see more volatility.  Trade wars, future anticipated FED increases, and the continuing fear that a recession is looming will all affect rates.  For the most part, the stock market did not hit the so-called correction territory.

The Power of a Good Testimonial:

A couple of weeks ago I wrote about “How Being Reasonable Paid Off.” What follows is what the client’s family wrote in a testimonial.  First, yes, this is indeed self-serving.  However, this transaction was difficult; and I am sharing the testimonial as this client captured what I do for my clients far better than anything I could ever say or write.  Thank you for indulging me on this.

We were lucky enough to have Marty recommended to us from our commercial real estate agent on a fairly challenging 1031 exchange into out of state multi-family property. In addition to just being a challenging deal, our transaction also had a lot of moving pieces with floating deadlines and uncertain close dates and targets. Marty was incredibly professional and a real breath of fresh air to work with. He always had our best interests in mind and did everything possible to protect us and our investments instead of just trying to “make a deal”. He took the time to really understand what our objectives were and how to best reach them. With many of the challenges we were presented with during our transaction, Marty always stayed calm and did a great job at breaking down difficult complex problems and explaining and resolving the situation. He is extremely organized and detail oriented which was something we definitely needed considering the complexity of our deal. Marty really is a wealth of knowledge when it comes to commercial lending and has the contacts to help where needed. For us, Marty wore many different hats and really went way above and beyond what I would have expected out of a loan broker. He at times was taking on the role of the real estate agent, CPA, financial adviser, legal counsel, insurance agent, escrow officer and therapist all at the same time. In addition to all the fantastic work he did for us, he was also able to find one of the most aggressive rates with the right terms that really worked for us and minimized risk. I would not hesitate to recommend Marty and will definitely be using him again for any future transactions.

Cyrus Chen, President

Investments Opportunities for Purchase with Strong Cash Flow:

Back on the January 15^th 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 5.50% 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.