The 241 units at Oakwood will range from 832 sf to 1,282 sf, with
rents ranging from $312 to $701 for a two-bedroom apartment, $356 to
$805 for three bedrooms and $465 to $882 for the four-bedroom units.
Financing for the complex includes an allocation of federal low-income
housing tax credits and tax-exempt bonds along with funding from the
City of Moreno Valley.
On the $45.7-million Oakley complex, SHS is acting as the tax credit
investor and the Corporation for Better Housing is the developer of
the complex at 59 Carol Lane. The 208 units will include units from
one to three bedrooms that will range from 551 sf to 1,042 sf.
Rents will range from $748 to $1,265, with all units set aside for
households earning from 50% to 60% of the area median income for
Contra Costa County. Comments Costa, "the Oakley-Antioch area, like
virtually every city in California and elsewhere, struggles with a
shortage of decent, high-quality housing that is affordable for
working families as well as seniors on limited or fixed incomes."
Costa adds that the current project represents the first of three
phases that eventually will also include for-sale townhomes. Financing
for the Oakley Apartments includes an allocation of federal low-income
housing tax credits, local redevelopment agency funds, a grant from
the Affordable Housing Program of the Federal Home Loan Bank of San
Francisco and construction financing arranged through Citibank.
Friday, August 31, 2007
Thursday, August 30, 2007
Commercial Real Estate News
New Simpson Housing Projects Total $167M
LONG BEACH, CA-Simpson Housing Solutions has added $167 million in multifamily projects to its development roster, finishing construction on a 226-unit Bay Area apartment complex and starting two others totaling 449 units, all of them aimed at the affordable housing market. The projects include the newly completed 226-unit Almaden Family Apartments in San Jose, the 241-unit Oakwood Apartments in Moreno Valley and the 208-unit Oakley Apartments in Oakley.
The $74.6-million Almaden complex, at 1501 Almaden Expressway, was designed to meet what Simpson describes as strong demand for "large, hard-to-find three-bedroom apartments" in a multifamily industry in which many developments feature primarily one- and two-bedroom units. The three-bedroom apartments at the Almaden measure nearly 1,200 sf with two bathrooms, while the other units at the complex range from 631 sf to 979 sf.
All of the Almaden apartments have been set aside for households earning a maximum of 50% to 60% of the area median income for Santa Clara County, with monthly rents ranging from $952 to $1,151 for a one-bedroom apartment, from $1,137 to $1,378 for a two-bedroom unit, and $1,310 to $1,586 for three bedrooms. Michael Costa, president of SHS, notes that all of the rents are well below prevailing market-rate rents for comparable apartments in the area.
Costa says that the project was designed "specifically to meet the needs of working families with children.” Amenities include landscaping, a clubhouse and community room, a computer learning center, fitness and business centers, a pool and spa, laundry rooms outdoor BBQ areas and a tot lot.
SHS partnered with the nonprofit Community Housing Developers and the Las Palmas Foundation on the project. It was financed with an allocation of 4% federal low-income housing tax credits, $31.3 million in tax-exempt housing bonds, a loan from the city of $13.8 million and developer equity.
At the $46.3-million Oakwood Apartments complex Moreno Valley, in the Inland Empire, the units will range from two to four bedrooms and all apartments will be set aside for households earning from 30% to 60% of the area median income for Riverside County. The complex is under way at 5168 Perris Blvd.
Please stay tuned for more details.
Wednesday, August 29, 2007
How to Create Marketable Real Estate Notes
Credit scoring is often referred to as a FICO or Empirica credit score. It is generated by analyzing the data in the major credit repositories for an individual and affixing a score that illustrates his pattern of credit use.The higher the score, the lower the risk associated with that prospective borrower; the lower the score, the greater degree of risk.Although far from perfect, more and more funders are relying on these credit scores to ferret out potentially problematic borrowers.As of this writing, when dealing with newly created notes or real estate mortgages, try to look for prospective buyers who have credit scores in excess of 600.Sure you can sell one of your properties to a lower credit score buyer; however you will have to sacrifice a lower tolerance level for any funding for that particular note, or you will have to age or season the note obligation for a period of time to offset the lower credit scores and perceptions of risk.
Tuesday, August 28, 2007
Top 5 Mistakes of Beginning Commercial Real Estate Property (2)
2. Real Estate is a numbers game.
This is not rocket science, but real estate is a numbers game. Value
is dependent on net operating income�gross revenue minus operating
expenses.
That's why it is so important to get the real operating numbers, not a
projection of potential gross income and estimated expenses.
Confirm and verify every element of income and expense. Value the
property based only on present income, not projected income you have
to produce.
Your profit is dependent on net income. Net income is the net
operating income minus debt service. If you've overestimated revenue,
underestimated expense, or have too much debt service, your profit
will suffer or turn into a loss.
Understand that risk increases with every assumption made. Do not
assume you can save expenses by cutting corners or that you can raise
rents the day after you take possession.
Anyone who has ever prepared a projection of operations has realized
that by tweaking the assumptions, the bottom line can be manipulated
into whatever will make the deal work.
The problem comes when it's time to make the numbers happen. It's real
cash then�your cash�and when the rents don't go up or the expenses
don't come down as much as the projection called for, you take the
hit.
You might tweak the numbers to make it work on paper, but paper won't
pay the bills, and hope is not a plan.
This is not rocket science, but real estate is a numbers game. Value
is dependent on net operating income�gross revenue minus operating
expenses.
That's why it is so important to get the real operating numbers, not a
projection of potential gross income and estimated expenses.
Confirm and verify every element of income and expense. Value the
property based only on present income, not projected income you have
to produce.
Your profit is dependent on net income. Net income is the net
operating income minus debt service. If you've overestimated revenue,
underestimated expense, or have too much debt service, your profit
will suffer or turn into a loss.
Understand that risk increases with every assumption made. Do not
assume you can save expenses by cutting corners or that you can raise
rents the day after you take possession.
Anyone who has ever prepared a projection of operations has realized
that by tweaking the assumptions, the bottom line can be manipulated
into whatever will make the deal work.
The problem comes when it's time to make the numbers happen. It's real
cash then�your cash�and when the rents don't go up or the expenses
don't come down as much as the projection called for, you take the
hit.
You might tweak the numbers to make it work on paper, but paper won't
pay the bills, and hope is not a plan.
Friday, August 24, 2007
Top 5 Mistakes of Beginning Commercial Real Estate Property(1)
1. Ignoring local market conditions
There are two levels of due diligence required to evaluate a real estate investment--the market and the property. And of the two, local market conditions trump everything else.
A great property in a bad market can be a big loser. A poor property in a great market can be a gold mine. How do you know the difference?
Every market is different, and a deal technique or property type that is profitable in one market it does not mean the same holds true anywhere else.
Analyzing the demographic trends of population growth, income, and employment in the local market will tell you where opportunity lies, or not. It will also show which property types are in demand, or oversupply. Those conditions will make or break your investment.
Investing in an area with declining demographic trends is destined for trouble. So learn your market. Then listen as it tells you how, when, and where to invest.
Please stay tuned for more details.
Thursday, August 23, 2007
Take the risk (2)
the benefits
Aside from being your own boss, having the freedom to travel while
earning profits, increasing your net worth, and having a place of your
own to call home, investing in real estate holds even more benefits.
Cash flow
Cash flow is the difference between your income and your expenses on a
piece of property. You can have a positive or negative cash flow.
Obviously, you'll feel a lot better if the cash flow is positive.
My advice on cash flow is this: Never use all of your positive cash
flow for rapid debt reduction. You will be walking a thin line. By
keeping a strong positive cash flow, you will have more options and
space to maneuver.
Appreciation
Appreciation is the increase in value of a property. There are two
kinds of appreciation. The first is from economic conditions beyond
your control, such as inflation. But you won't gain much from this
type of appreciation since the gain is offset by the higher cost of
living.
The second kind is market appreciation, which you can control. When
you improve a property (through renovations), you force its value
higher. You can purchase a piece of property in need of repairs and
bring it back up to neighborhood standards or slightly higher; this
will give you a property that is much higher in value.
Leverage
Leverage is the ability to borrow a percentage of the value of a piece
of property. Real estate, in comparison to other investments, offers a
very high degree of leverage. In some cases, a couple buying a
single-family home can obtain 95% financing. This allows individuals
to purchase real estate with little, if any, of their own money. What
other investments offer such a high degree of leverage?
Amortization
With leverage, or the use of other people's money, comes a repayment
schedule. Your outstanding balance is reduced with every payment you
make. Part of each payment goes to interest (applied first) and the
rest goes to pay off the principal. The principal reduction is called
amortization -- reducing debt. Hence, amortization can make you
wealthy, slowly and steadily.
Tax advantages
Owning real estate with the goal of making a profit allows you to
deduct interest payments and other expenses come tax time. But don't
be fooled into buying real estate for the tax advantages; rather,
purchase it because it makes economic sense to do so.
Benefits of buying
Owning a real-estate business is a great way to achieve your financial
freedom. What could be more worthwhile than taking up real estate as
either a full-time business or even a hobby? The benefits are
definitely there.
Aside from being your own boss, having the freedom to travel while
earning profits, increasing your net worth, and having a place of your
own to call home, investing in real estate holds even more benefits.
Cash flow
Cash flow is the difference between your income and your expenses on a
piece of property. You can have a positive or negative cash flow.
Obviously, you'll feel a lot better if the cash flow is positive.
My advice on cash flow is this: Never use all of your positive cash
flow for rapid debt reduction. You will be walking a thin line. By
keeping a strong positive cash flow, you will have more options and
space to maneuver.
Appreciation
Appreciation is the increase in value of a property. There are two
kinds of appreciation. The first is from economic conditions beyond
your control, such as inflation. But you won't gain much from this
type of appreciation since the gain is offset by the higher cost of
living.
The second kind is market appreciation, which you can control. When
you improve a property (through renovations), you force its value
higher. You can purchase a piece of property in need of repairs and
bring it back up to neighborhood standards or slightly higher; this
will give you a property that is much higher in value.
Leverage
Leverage is the ability to borrow a percentage of the value of a piece
of property. Real estate, in comparison to other investments, offers a
very high degree of leverage. In some cases, a couple buying a
single-family home can obtain 95% financing. This allows individuals
to purchase real estate with little, if any, of their own money. What
other investments offer such a high degree of leverage?
Amortization
With leverage, or the use of other people's money, comes a repayment
schedule. Your outstanding balance is reduced with every payment you
make. Part of each payment goes to interest (applied first) and the
rest goes to pay off the principal. The principal reduction is called
amortization -- reducing debt. Hence, amortization can make you
wealthy, slowly and steadily.
Tax advantages
Owning real estate with the goal of making a profit allows you to
deduct interest payments and other expenses come tax time. But don't
be fooled into buying real estate for the tax advantages; rather,
purchase it because it makes economic sense to do so.
Benefits of buying
Owning a real-estate business is a great way to achieve your financial
freedom. What could be more worthwhile than taking up real estate as
either a full-time business or even a hobby? The benefits are
definitely there.
Wednesday, August 22, 2007
Take the risk
You frequently hear about people who made their fortunes investing in the stock market, but you also hear about investors who lost their shirts playing the same game. You hardly ever hear about real-estate investors who go bankrupt, however; that's because it doesn't happen often.
That's right: Those individuals who invested wisely in real estate many years ago are living a very comfortable lifestyle. Investing in real estate can garner interesting returns, so if you're just getting started or have considered investing in real estate, the information that follows is invaluable.
No one hears about how much money one can make investing in real estate. That's probably because it is a well-kept secret. If everyone knew about it, everyone would be doing it, right?
Wrong. Much like starting your own business, investing in real estate requires entrepreneurial skills and a vision, which is why not everyone is jumping on the real-estate bandwagon.
In fact, most people aren't willing to take the risk that real-estate investing entails; fortunately, these are the same people that will make you rich by renting from you. The little secret is that there are hundreds of individuals who procrastinate for every one individual who has a vision and chooses to take the risk.
That's right: Those individuals who invested wisely in real estate many years ago are living a very comfortable lifestyle. Investing in real estate can garner interesting returns, so if you're just getting started or have considered investing in real estate, the information that follows is invaluable.
No one hears about how much money one can make investing in real estate. That's probably because it is a well-kept secret. If everyone knew about it, everyone would be doing it, right?
Wrong. Much like starting your own business, investing in real estate requires entrepreneurial skills and a vision, which is why not everyone is jumping on the real-estate bandwagon.
In fact, most people aren't willing to take the risk that real-estate investing entails; fortunately, these are the same people that will make you rich by renting from you. The little secret is that there are hundreds of individuals who procrastinate for every one individual who has a vision and chooses to take the risk.
Tuesday, August 21, 2007
Investing in Real Estate Property
Real estate investing runs the gamut in terms of risk and investment success. The first rule of real estate investing, even before location, location, location, is be very careful with whom you are dealing. For some reason, real estate is fraught with unscrupulous characters, many of whom you?ll see on late night television commercials with their "no-money" down methods of becoming millionaires. Only a very small percent of these so-called real estate gurus are legit.
If you are seriously considering investing in real estate property, it means essentially that you will need:
- Investment capital, or a legitimate means of attaining some without putting yourself in debt.
- A good knowledge of the real estate market and the neighborhood in which you are looking to buy property.
- Good management, people and negotiating skills
- The ability to do repair work or access to people who can do it for you.
- The name and number of a property inspector or engineer.
Unless you are able to find, evaluate and buy houses that are either in foreclosure or fixer-uppers, which can be turned around quickly, you will most likely serve as a landlord for the property while it increases in value. Be careful to whom you rent because your property must be well-maintained.
Since legitimate real estate investing means having some money to make money, you need available capital. For this reason, many people go into real estate after coming into a sizable amount of money. For example, empty nesters who sell a large home for $500,000 and buy a smaller condo for $250,000 have money to purchase another property or two.
Monday, August 20, 2007
Retail, Office Projects, Cushion Residential Hit
PHOENIX -- The temperature is above 100 degrees, yet construction crews are busy at work on just about every corner of this city's downtown.
The convention center is being expanded, a light-rail system is coming and several hotels are sprouting up alongside new offices and retail space.
"I really don't see construction slowing down in the foreseeable future," said Troy Hoberg, director of business development at Hunt Construction Group Inc., which built the $400 million downtown stadium for the Arizona Cardinals and is now working on the $600 million convention-center expansion. "We've been so busy we're having trouble finding enough workers."
The volume of commercial construction in Phoenix may help shed some light on a question that has puzzled regional economists: Why do some cities mired in a housing bust continue to enjoy strong economic growth? In Phoenix, the answer appears to be that commercial construction is helping to cushion the fall.
Phoenix led the nation's major employment markets in job growth during 2005 and 2006. But job growth slowed in the second quarter of 2007 to a 1.2% annualized rate, dipping below the national average of 1.3%.
Thursday, August 16, 2007
What Property Bust?
• The Boom: Construction of office towers and other commercial projects remains strong in Phoenix and other parts of the country.
• The Impact: That is cushioning the blow of the housing slowdown, fueling strong regional growth.
• The Caveat: Commercial construction could slow if lenders burned by defaults on home mortgages pull back from other property sectors.
Wednesday, August 15, 2007
Investors attain tax benefits, piece of otherwise unattainable property
When home prices rise, so does demand for TICs
Is the warm weather bringing out more TICs?
Unlike the little pests that bother our pets, these TICs can be helpful options for real estate investors.
"I think the popularity has been the run-up in real estate prices around the country," said Tom Oldfield, a tax-deferred-exchange specialist in Tacoma, Wash. "Sellers wanted to get out of one property and exchange into another, but they found replacement property was far more expensive than what they could afford."
The answer for many taxpayers has been the TIC, or tenancy-in-common, transaction. This strategy allows investors who sell an investment property to buy ownership interests in another property (or properties) instead of buying an entire "like-kind" property to qualify for an exchange and defer capital gains taxes on the sale.
While TICs have been around for years and have been structured by a number of savvy property exchange specialists, they were officially blessed in 2002 when the Internal Revenue Service issued a set of 15 guidelines laying out the ground rules for successful TIC deals. Interest increased immediately, especially from investors who had no easy way of locating other investors who wanted -- or could only afford -- a piece of another property.
Here's how TICs usually work: A "sponsor" such as real estate investor or broker will identify and arrange to purchase an apartment building, shopping center or office building. The sponsor will then make available a TIC purchase opportunity to other investors through friends and other brokers. These potential buyers can either buy a TIC interest outright or transfer the proceeds of a previous property sale in order to qualify as an exchange, which allows them to defer capital gains.
TICs have become popular and some big-name sponsors have entered the niche. This activity offers investors diversification of location and property type.
"Investors need to properly research any TIC offering and understand what they are accepting," Oldfield said. "They need to know how the property is going to be managed, and if the costs include a commission, which is typically paid by the seller, not the buyer."
Oldfield said that many TIC commercial buildings often are leased to one master tenant who is associated with the TIC sponsor. The master tenant then subleases the building and stands to profit the most when rental rates rise. TIC participants are guaranteed a rate of return but typically none of the additional windfall rents.
A tax-deferred exchange (commonly known as IRS Section 1031 Exchange) is really an arms-length sale and purchase. The transaction will proceed just as a sale for you, your real estate agent and parties associated with the deal. However, provided you closely follow the exchange rules, the IRS will "sanction" the transaction and allow you to characterize it as an exchange rather than as a sale. Thus, you are permitted to defer paying the capital gain tax.
An exchange occurs when you trade real property that is other than your home or second residence for other "like kind" real property that you have held for trade, business or investment purposes. The like-kind definition is very broad. You can dispose of and acquire any interest in real property other than a home or a second residence. For example, you can trade raw land for income property, a rental house for a multiplex, or a rental house for a retail property.
Section 1031 specifically requires that an exchange take place. That means that one property must be exchanged for another property, rather than sold for cash. The exchange is what distinguishes a Section 1031 tax-deferred transaction from a sale and purchase. The exchange is created by using an intermediary (or exchange facilitator) and by providing the required exchange documentation.
By pooling the proceeds of investors, TICs combine the tax and estate-planning benefits available to investors through 1031 exchanges with the potential advantages of owning a share of an institutional-quality investment property. Investors receive their monthly distributions (after expenses) while giving up the maintenance and administration chores associated with managing property.
That task sometimes includes chasing down tenants who have tick-infested pets in the heat of summer. Didn't that rental contract stipulate no pets?
Monday, August 13, 2007
Commercial Real Estate Property (Hacienda Hts Land)
Hacienda Hts Land LP: $ 1,499,000
Property Description:
Builders, Developers Opportunist! This Is An Absolute Value! Only $150K Per Paper Lot With An Approved Tentative Tract Map (#54367). Sprawling 2 Acre, 10 Lot Subdivision Nestled In An Established Neighborhood With Mountain View In Unincorporated Area Of Hacienda Heights. Home Sites Range In Size From 6500 Sqr Ft. To 9500 Sqft. With Utilities At The Street. This Property Is Priced To Sell With The Lowest Priced Land Per Foot With Or Without A Map. Property Has Approximately 330 Feet Of Frontage
For more information, please contact Cecilia. Thank you!
| Parcel Size: | 2.02 Acres |
Builders, Developers Opportunist! This Is An Absolute Value! Only $150K Per Paper Lot With An Approved Tentative Tract Map (#54367). Sprawling 2 Acre, 10 Lot Subdivision Nestled In An Established Neighborhood With Mountain View In Unincorporated Area Of Hacienda Heights. Home Sites Range In Size From 6500 Sqr Ft. To 9500 Sqft. With Utilities At The Street. This Property Is Priced To Sell With The Lowest Priced Land Per Foot With Or Without A Map. Property Has Approximately 330 Feet Of Frontage
For more information, please contact Cecilia. Thank you!
Friday, August 10, 2007
Commercial Real Estate Property (Rosemead Multifamily)
Price: $ 1,299,900
Price/Unit $ 129,990.00
Primary Type: Multifamily
Garden/Low-Rise
No. Units: 10
Building Size: 3,896SF
Lot Size: 9,100SF
Cap Rate: 6.62%
Year Built: 1961
Property Description:
Private Gated Apartment.Almost No Vacancy. Rent Is Below Market Price.Owner Take Care Of The Property Very Well. Newer Copper Plumbing (Yr 2006).New 4 Energy-Efficient Coin Dryers And Washers. New Commercial Water Heater. Newer Iron Gate, Newer Roof, Newer Vertical Blinds, Newer Paint,Newer Security Cameras & Monitor Systems...Very Convenient Location.Easy To Manage.
*Please Do Not Disturb Tenants. Drive By Only. Make Offer Subject To Interior Inspection.*
| Financial Summary | Actual |
| Scheduled Gross Income: | $91,320 |
| Studio x 6: | $47,880 |
| 1 Bed x 4: | $39,240 |
| GSI: | $4,200 |
| Operating Expenses: | $5,363 |
| Insurance: | $1,616 |
| Water/Sw: | $1,524 |
| Trash: | $890 |
| Gas: | $717 |
| Total Expenses: | $5,363 |
| Net Operating Income: | $86,057 |
Unit Mix Information
| Studio |
| No. Units: 6 Avg. Mo. Rent: $665 |
| 1 Bedroom |
| No. Units: 4 Avg. Mo. Rent: $817 |
Debt & Equity Information No Debt & Equity Information Provided
Wednesday, August 8, 2007
Commercial Real Estate Property (Hacienda Hts Multifamily)
Hacienda Heights Multifamily LP: 2,245,000
Property Description:
Pride of ownership, upside potential in rent and great owner/user investment.
Financial Summary Actual
Net Operating Income: $96,535
| Primary Type: | Multifamily Duplex/Triplex/Fourplex |
| No. Units: | N/A |
| Building Size: | 7,592 SF |
| Occupancy: | 100.00% |
| Price: | $2,245,000 |
| Cap Rate: | 4.00% |
| Year Built: | 1949 |
Property Description:
Pride of ownership, upside potential in rent and great owner/user investment.
Financial Summary Actual
Net Operating Income: $96,535
Monday, August 6, 2007
Commercial Real Estate Property
Fontana
Land LP: $1,980,000
Parcel Size: 4.5 Acres
Gross Equity: 2-5 Units /Acre
Property Description:
Excellent Developer's Property, 19 Single Houses Have Been Approved By The City, all Archtect Plan Have Been Submitted, Almost Ready To Build. Seller Motivated.
Land LP: $1,980,000
Parcel Size: 4.5 Acres
Gross Equity: 2-5 Units /Acre
Property Description:
Excellent Developer's Property, 19 Single Houses Have Been Approved By The City, all Archtect Plan Have Been Submitted, Almost Ready To Build. Seller Motivated.
Commercial Real Estate Property,
West Covina Shopping Center LP: $3,575,000
| Property Use Type: | Vacant/Owner-User |
| Primary Type: | Retail Free Standing Bldg |
| Building Size: | 9,018 SF |
| Lot Size: | 27,722 SF |
| Price: | $3,575,000 |
| Price/SF: | $396.43 |
| Year Built: | 1985 |
| • | Perfect for Owner/User or Investor |
Rare Opportunity to Own Prime Property off of I-10
Property Description: Perfect for Owner/User or Investor Property Seen by Over 312,000 Cars Per Day on I-10 Freeway Maximum Visibility & Exposure Free Advertising along I-10 Freeway Total Lot Size: 27,722 sq . ft. Building Size: 1st floor ±7,018 sq. ft. 2nd floor ±2,000 sq. ft. Total ±9,018 sq. ft. 12' - 24' Ceilings in Some Areas Includes Private Offices on 2nd Floor Large Lot- 33 parking spaces At Close of Escrow: Vacant Building OR Possible Sale/Leaseback Opportunity for Short Term Building in the Middle of Renovations Strong Demographics: Over $63,000 within 1 mile radius and over 246,000 peope within 3 mile radius |
Commercial Real Estate Property. Upland, $255,000
| Primary Type: | Retail Retail (Other) |
| Building Size: | 756 SF |
| Price: | $255,000 |
| Price/SF: | $337.30 |
| Year Built: | 1980 |
Property Description:
Zoned for Retail^Office^Commercial
Ground Floor Space
Attractive Interior
Extra Plumbing In Place
Large Parking Lot
Fed-Ex, UPS, U.S. Post Box, DHL All on site
Central Heat/Air HVAC
Good Signage
Established Address
Freeway Off-Ramp Identity on 10 Frwy and 60 Frwy
| Additional Types: | Office-Business Park | Parking Ratio: | 3 / 1,000 SF |
| Strip Center |
| Financial Summary | Actual |
|
Friday, August 3, 2007
West Covina Commercial Real Estate Property
| Primary Type: | Multifamily Garden/Low-Rise |
| No. Units: | 14 |
| Building Size: | 10,376 SF |
| Lot Size: | 14,934 SF |
| Occupancy: | 98.00% |
| Price: | $2,410,000 |
| Price/Unit: | $172,142.86 |
| GRM: | 11.50 |
| Cap Rate: | 5.80% |
| Cash On Cash: | 2.10% |
| Year Built: | 1959 |
| Financial Summary | Proforma |
| Year: | 1959 |
| Scheduled Gross Income: | $189,462 |
| Vacancy: | $3,120 |
| Garages: | $18,066 |
| Laundry: | $3,600 |
| Effective Gross Income: | $208,008 |
| Maintenance: | $10,700 |
| Taxes: | $30,125 |
| Insurance: | $3,600 |
| Other Expenses: | $20,590 |
| Total Expenses: | $65,015 |
| Net Operating Income: | $139,873 |
| Debt Service: | $124,656 |
| Pre-Tax Cash Flow: | $15,217 |
| Expenses/Unit: | $4,643.00 |
| Expenses/SF: | $5.70 |
Unit Mix Information
| 2 Bedroom 1 Bath |
| No. Units: 8 SF: 832 Avg. Mo. Rent: $1,250 |
| 1 Bedroom 1 Bath |
| No. Units: 6 SF: 620 Avg. Mo. Rent: $985 |
Property Description:
Well maintained, attractive, garden style apartment buildings with two seperate parcel numbers. Eight 2bdr/2bth units and Six 1bdr/1th units. 8 Garages, 4 carports. All individually metered.
14 Units West Covina LP: $2,410,000
Commercial Real Estate Property West Covina
7 Units West Covina LP: 1,205,000
Unit Mix Information
| For Sale | Active |
| Primary Type: | Multifamily Garden/Low-Rise |
| No. Units: | 7 |
| Building Size: | 5,696 SF |
| Lot Size: | 7,462 SF |
| Occupancy: | 98.00% |
| Price: | $1,205,000 |
| Price/Unit: | $172,142.86 |
| GRM: | 11.50 |
| Cap Rate: | 6.00% |
| Cash On Cash: | 3.60% |
| Year Built: | 1959 |
| Financial Summary | Proforma |
| Year: | 2007 |
| Scheduled Gross Income: | $102,704 |
| Vacancy: | $1,560 |
| Laundry: | $1,800 |
| Garages: | $1,060 |
| Effective Gross Income: | $104,004 |
| Operating Expenses: | $8,393 |
| Maintenance: | $5,400 |
| Taxes: | $15,602 |
| Insurance: | $1,800 |
| Total Expenses: | $31,195 |
| Net Operating Income: | $71,249 |
| Debt Service: | $62,328 |
| Pre-Tax Cash Flow: | $8,921 |
| Expenses/Unit: | $4,456.00 |
| Expenses/SF: | $6.01 |
Unit Mix Information
| 2 Bedroom 1 Bath |
| No. Units: 4 SF: 832 Avg. Mo. Rent: $1,250 |
| 1 Bedroom 1 Bath |
| No. Units: 3 SF: 620 Avg. Mo. Rent: $985 |
Property Description:
Pima Gardens is a two story garden style apartment complex. All units face outward toward a beautifully landscaped apartment garden. The complex includes four large 2 bedroom 1 bath units and three large 1 bedroom 1 bath units. The complex includes 4 garages and 2 carports. All units are individually metered for gas and electricity.
Commercial Real Estate Property
Choosing Your Real Estate Appraiser
If you have been thinking about purchasing a real estate property for personal use or as an investment, you’ll need to hire the services of a real estate investor. If you play to finance your home through a bank or other lender, you’ll more than likely need to get the property appraised first. Banks and most lenders want to know the value of the home for your protection, as well as make sure that the home they are financing is worth the total amount that you take on the loan.
In most cases, the appraisal indicates that the home does indeed meet or exceed the asking price. In some cases however, the appraisal will come back saying that the home is worth less than the selling price. If this is the case, the buyer normally has to either drop the deal or try to negotiate with the seller to get a price that meets the appraisal.
For those very reasons, a real estate appraiser is very important. When you are dealing with a home, one appraisal can make a deal or break it. Even though you may not be financing your purchase through a lender or the bank, you should still make an effort to get the home appraised and find out the true value. You should also make a point to find the best appraiser that you can afford. If you hire an appraiser who isn’t that experienced, you’ll pay for it later when you discover that the property isn’t worth what you paid for it.
A real estate appraiser will go through the home performing an evaluation, and then provide you with a written evaluation after he has gathered all necessary information. Appraisers will also taken into consideration the replacement costs as well. Also, they will have to very land descriptions as well. There is a lot of work involved with appraisals, which is why it’s so very important that each step of the process is performed correctly by a qualified real estate appraiser.
If you have a real estate agent, he or she will more than likely be able to make a recommendation. Keep in mind that this doesn’t mean the recommendation is the best; it’s just someone who your agent works with. To ensure that you get the right appraisal on your home you’ll need to find yourself an appraiser who is capable of completing the job.
When you look for your real estate appraiser, you should look for someone who comes highly recommended. You can ask family and friends for their opinions, or search local papers, even the Internet. If you take your time and search for the best real estate appraiser that you can find – you’ll normally get an appraisal that is right on target.
If you have been thinking about purchasing a real estate property for personal use or as an investment, you’ll need to hire the services of a real estate investor. If you play to finance your home through a bank or other lender, you’ll more than likely need to get the property appraised first. Banks and most lenders want to know the value of the home for your protection, as well as make sure that the home they are financing is worth the total amount that you take on the loan.
In most cases, the appraisal indicates that the home does indeed meet or exceed the asking price. In some cases however, the appraisal will come back saying that the home is worth less than the selling price. If this is the case, the buyer normally has to either drop the deal or try to negotiate with the seller to get a price that meets the appraisal.
For those very reasons, a real estate appraiser is very important. When you are dealing with a home, one appraisal can make a deal or break it. Even though you may not be financing your purchase through a lender or the bank, you should still make an effort to get the home appraised and find out the true value. You should also make a point to find the best appraiser that you can afford. If you hire an appraiser who isn’t that experienced, you’ll pay for it later when you discover that the property isn’t worth what you paid for it.
A real estate appraiser will go through the home performing an evaluation, and then provide you with a written evaluation after he has gathered all necessary information. Appraisers will also taken into consideration the replacement costs as well. Also, they will have to very land descriptions as well. There is a lot of work involved with appraisals, which is why it’s so very important that each step of the process is performed correctly by a qualified real estate appraiser.
If you have a real estate agent, he or she will more than likely be able to make a recommendation. Keep in mind that this doesn’t mean the recommendation is the best; it’s just someone who your agent works with. To ensure that you get the right appraisal on your home you’ll need to find yourself an appraiser who is capable of completing the job.
When you look for your real estate appraiser, you should look for someone who comes highly recommended. You can ask family and friends for their opinions, or search local papers, even the Internet. If you take your time and search for the best real estate appraiser that you can find – you’ll normally get an appraisal that is right on target.
Thursday, August 2, 2007
Commercial Real Estate Property
Pomona, CA 91768 LP:$1,580,000| Property Use Type: | Investment |
| Primary Type: | Shopping Center Strip Center |
| GLA: | 6,660 SF |
| Lot Size: | 19,436 SF |
| Occupancy: | 100.00% |
| Price/SF: | $238.44 | ||||||||||||||||||
| Cap Rate: | 5.28% | ||||||||||||||||||
Year Built:
Property Description: | 1981 |
Commercial Real Estate Property
Pomona, CA 91768
| Primary Type: | Shopping Center Strip Center |
| GLA: | 6,000 SF |
| Lot Size: | 0.43 Acres |
| Occupancy: | 0.00% |
| Price: | $1,800,000 |
| Price/SF: | $300.00 |
| Year Built: | 2006 |
A brand new retail building with 18 feet high ceiling in the city of Pomona, This building is perfect for an owner/user or an investor.
Wednesday, August 1, 2007
Commercial Real Estate Property
We know what you are Looking For
You are looking for a bubble proof real estate market. You're sick of wondering and worrying about overvalued markets. You're looking for an undervalued market with potential hyper-growth indicators.
Real estate investing and emerging trends in real estate growth We think we've found the market you're looking for. Forbes, the Wall Street Journal, Smart Money Magazine, Money Magazine, Business 2.0, Fortune and literally dozens of other industry sources are unanimous that the market we've found is the rare convergence of undervalued prices, tightening vacancy trends, explosive growth of retirement and other populations, a strong, growing, and diverse economy, massive new infrastructure changes: in short, virtually all the indicators of an emerging hyper-growth area. What's more, we think we've found an incredible value for individual real estate investors who want to own in this unique area. Where is this market? And what are we suggesting you may want to own? Read on, and we'll share our research, including sources, and our conclusions with you. You can decide for yourself. So we agree. The first rule of real estate investing is to buy in an undervalued market. How do you find it? How do you find the next real estate growth area? How do you know if a hot market is protected from a bursting real estate bubble? Where is the next location where the next hyper grown real estate value may occur? What indicators make a city one of the top real estate investment markets?
Successful investors understand that real estate is a game of probabilities, not certainties, and that is why you need to look for probabilities converging before you buy in an area. Taking action as an investor is the most important step. It is also the most difficult. Knowing that all the stars are lining up makes it that much easier. If they are not, don't pull the trigger.What elements and probabilities do you look for? 1. You look for an area of strong demographic growth 2. You look for a strong, growing, and diverse economy 3. You look for an area of growing retirement population 4. You look for new and substantial infrastructure changes 5. You only move into undervalued markets 6. You always acquire a property with strong potential for appreciation 7. You look for tightening vacancy trends 8. You always provide the rental renters prefer
So,I would appreciate having the opportunity to discuss this property with you if you are still interested in selling your property, please call me so that we can arrange a meeting to see how you can achieve your dream of wealth.
You are looking for a bubble proof real estate market. You're sick of wondering and worrying about overvalued markets. You're looking for an undervalued market with potential hyper-growth indicators.
Real estate investing and emerging trends in real estate growth We think we've found the market you're looking for. Forbes, the Wall Street Journal, Smart Money Magazine, Money Magazine, Business 2.0, Fortune and literally dozens of other industry sources are unanimous that the market we've found is the rare convergence of undervalued prices, tightening vacancy trends, explosive growth of retirement and other populations, a strong, growing, and diverse economy, massive new infrastructure changes: in short, virtually all the indicators of an emerging hyper-growth area. What's more, we think we've found an incredible value for individual real estate investors who want to own in this unique area. Where is this market? And what are we suggesting you may want to own? Read on, and we'll share our research, including sources, and our conclusions with you. You can decide for yourself. So we agree. The first rule of real estate investing is to buy in an undervalued market. How do you find it? How do you find the next real estate growth area? How do you know if a hot market is protected from a bursting real estate bubble? Where is the next location where the next hyper grown real estate value may occur? What indicators make a city one of the top real estate investment markets?
Successful investors understand that real estate is a game of probabilities, not certainties, and that is why you need to look for probabilities converging before you buy in an area. Taking action as an investor is the most important step. It is also the most difficult. Knowing that all the stars are lining up makes it that much easier. If they are not, don't pull the trigger.What elements and probabilities do you look for? 1. You look for an area of strong demographic growth 2. You look for a strong, growing, and diverse economy 3. You look for an area of growing retirement population 4. You look for new and substantial infrastructure changes 5. You only move into undervalued markets 6. You always acquire a property with strong potential for appreciation 7. You look for tightening vacancy trends 8. You always provide the rental renters prefer
So,I would appreciate having the opportunity to discuss this property with you if you are still interested in selling your property, please call me so that we can arrange a meeting to see how you can achieve your dream of wealth.
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