Again, this past week saw the 10-year yield stay in its recent trading channel. Note that it peaked back on February 21st at 2.94%; and then ended Friday at 2.848. It seems the lack of movement is due to the threat of tariffs and FED rate increases looming being offset by the pullback in the German Bund over the last month.
Switching tracks, I read an open note over on LinkedIn from a Realtor Affiliate to Realtors asking what the number one challenge was in the business now. I saw one response that stated “inventory” (no surprise). The Affiliate’s response in return is what surprised me. They stated there was nothing that could be done about the inventory problem.
We all have heard something along the lines of “we are limited by our beliefs.” This Affiliate did a good job of asking an important question. Their response is what I found bothersome. If you are willing to ask the question, then find a way to add some value. I know several strong Realtors who are flourishing right now in spite of this low inventory climate. And, they are not all doing the same thing.
They are playing to their strengths, doing homework to crack the code to their own market, and then taking action to best dominate their unique sliver . As a starting point, feel free to go back and reread some of my weekly blogs (start just with the titles) to get some ideas. Put in the effort, surround yourself with partners that think outside the box (those unwilling to believe that no solutions exist), and then put your action plan into place.
Remember, you do not have to be great at everything. If you care about your clients, then just set up overall review meetings. Feel free to call me as I typically partner with real estate professionals to provide insight in the advisory meetings. This goes a long way towards creating a strategy for your clients; and then leads to additional meetings with their connections who need the same guidance.
Just do not limit yourself by your beliefs. Have a good week.
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.
Articles of Interest:
Forbes shared “How Driverless Cars Could Disrupt The Real Estate Industry.”
NREI shared “Preparing Multifamily Assets for Possible Market Correction.”
CNBC reported “Real estate economist: Home prices are increasing twice as fast as income growth.” This is a national viewpoint. However, it certainly creates a picture of investment opportunities throughout the US.
The NY Post shared “This 3-D-printed house costs $10,000 and can be built in 24 hours.” This is a very interesting concept.
Forbes also reported “Why Real Estate Investors Should Borrow The Checklist Strategy From Doctors And Pilots.” “By releasing these tasks from the brain processing cycle to a documented checklist, you are now free to focus on creative new solutions in other areas in your business. The simple act of the list creation captures documented steps that are stored for easy retrieval.” I strongly suggest you embrace the concept of this article into your business and investment life. I have checklists for all transactions. And, these checklists are living documents that are modified as things change.
The SJ Mercury News reported “Bay Area rents on the rise again after ‘cooling off period,’ real estate data firm reports.”
Type | Rate | Fixed Term |
Apartments | 4.365% – 4.950% | 3 to 10 year (30 yr amortization) |
Commercial | 4.685% – 5.250% | 3 to 10 year (25 yr amortization) |
SBA Lending | Call for Options | Call for Options |