Situations We Can Help With

Please read below and if you or anyone that you know is in one of these situations, we can help.

1. If you are considering a short sale - we have a team that can sell your property and negotiate with the bank to allow a short sale.
2. If you are in a pre-foreclosure situation - received a Notice of Default or a Notice of Trustee Sale - a sale may still be possible - talk to us and we can see what can be done.
3. You would like to know about Loan Modifications - your adjustable rate mortgage has or will increase - we have a team at Intero Mortgage that specifically deals with loan mods.
4. Investment property issues - negative cash flow, under-water on equity, vacancies, etc. The market has adjusted and perhaps an adjustment in management, tenants, financing or some other change will make your investment property viable again.

My team here at Intero will listen to your situation and provide answers and guidance. Please talk to us as the solutions are available if we act decisively and fast.

- Mario Pinedo
415-269-6249 cell
408-342-3155 office
mario@interorealestate.com

New Homes in Millbrae

Our office just listed this wonderful Millbrae new home development. Views and new luxury homes at very good prices.

Prices released at grand opening March 21st!Millbrae Estates is a once-in-a lifetime collection of thirty-seven extraordinary residences nestled on a hillside above the charming center of Millbrae. In addition to the beauty of the setting, locational advantages include an excellent school system, easy access to major transportation routes, and the pleasures of living in a small town that possesses both charm and sophistication.

Homes sizes range from 2,418 -3120 sq. ft. with 3-5 bedrooms, 2 1/2 - 3 baths and a variety of room options to customize the layout of your home. Hallmarks of the distinctive designs include a turreted entry tower, rich stone treatments, expressive balconies, arched doorways and wrought iron details that are a modern expression of classic design. Some homes offers down stairs bedrooms. Home prices are from the mid-$1,000,000s.

Schools: Meadows Elementary 1101 Helen Dr (650) 583-7590. Taylor Middle 850 Taylor Blvd. (650) 697-4096. Mills High 400 Murchison Dr (650) 558-2599.

Driving Directions:

From SF Take 280S, exit Larkspur Ave, Right on Skyline Blvd. Left on Riverton, Right on Clearfield Drive, Left on Alp Way to model homes

From San Jose Take 280N, exit Millbrae Avenue, Right on Riverton, Right on Clearfield Drive, Left on Alp Way to model homes (7 Estates Dr. is a new street)

Cheap Sublease Space Redwood Shores

Motivated tenant with lease through September 2009 offering 4,100 square feet of prime space near Oracle for sublease at $1.95 per foot full service. Downsizing software company can move right away. Landlord will also negotiate a direct lease from September. Market rate asking price is $2.95 per foot full service. Address is on Twin Dolphin Drive off of Holly.

557 Bank Owned Single Family Homes in San Jose Metro

There are now 557 single family homes on the market (not including those that are in escrow) from South San Jose to Milpitas to Sunnyvale. List prices are from $168,773 for a 1,500 square foot total fixer upper on a very small 1,891 square foot lot in downtown San Jose to $2,144,000 on Lucky Drive in Monte Sereno for 4,900 square feet on a 73,000 square foot lot and everything in between. Sellers of homes complain that the bank owned homes are dragging down the market in their neighborhoods. Reality is that the bank owned homes ARE the market. They are accounting for some 70% of closed transactions in the valley in the last few months. Great time to get a home here, period.

Twitter, Google, Facebook, Real Time Search Engines

I love this valley: http://www.siliconvalley.com/google/ci_11776452?nclick_check=1
And as mind-blowing as this is to read, that there could be yet another usurpation possible with yet another industry giant, it just goes to remind me that this always happens and always will. What is super cool is that we are in the midst of it all. Would you rather be in the heart of the steel industry, the center of the fishing industry, the core of the oil industry, or perhaps in the center of every connected facet of life...?

FNMA investment loans

FNMA has loans for investors with 10% down payments up to 4 unit properties. There are fourplexes in Santa Clara County that can be bought and nearing break even cash flow with such a low downpayment.
Mario Pinedo, CCIM
Intero Real Estate
Office 408-342-3155
Cell 415-269-6249

Buy as an investor sell to owner occupant

There are a lot of homes right now that are perfect mid term flips. Rents are strong, prices are down, especially on the short sale and bank REOs, the right combination for break even cash flow on houses and duplexes. Then in a couple years, take the right exit strategy and sell when the first time buyers are out in droves and move up home buyers are also fueling the market. The strategy is not so much to buy on numbers today, it is to focus on the type of home to buy based on what is easy to sell in the future to that buyer profile. Need help?

2 Bank Owned Duplexes Ripe for the Picking

Blossom Valley - over 2,200 square feet, great configuration of 3 bed, 2 bath and 2 bed, 1 bath units. Separate 1 car garages. Near Westfield Oakridge Mall. Sold for $770,000 in July 2005, now offered at $539,900.

San Jose City College area duplex - 1,680 square feet, 2 bedroom, 1 bath each unit with separate 1 car garages. Each unit has a separate den making it effectively a 3 bedroom on each side. Sold in May 2006 for $770,000 (coincidentally the same price as above). Now asking just under $500,000.

Both of these properties are on strong streets and good neighborhoods. Worthy rental investment properties that will produce income into the future. And... some good price appreciation when the market comes back.

Let me know if you want to see these great opportunities.

Great Development/Retirement Opportunity in Clear Lake

My partner Jinny Ahn and I just listed this wonderful opportunity in Clear Lake, CA. It is a home on 44 acres - custom built approximately 5,000 square feet. The land has already been subdivided into 24 lots ranging from 1 acre to 2+ acres. Asking price is $3,200,000 for the package. With good marketing of the lots over the next couple years - the ending cost of keeping the house would be very, very low. Here is an opportunity for a developer or land banker to fund her retirement and end up in a wonderful community. Website and virtual tour coming soon.

Please Consider Giving to the Leukemia & Lymphoma Society

This year for the second year in a row, I am running the San Diego full marathon with Team in Training to both challenge myself and raise much needed funds for research on cancer treatments.

I understand that times are tough. All I ask is that you click on the link below and read why I am doing this. A donation of any amount is greatly appreciated and will go to very good use. The Leukemia & Lymphoma society, through Team in Training has funded research that has brought forth new and beneficial drugs. This has eased the pain and suffering of our loved ones.

Please do what you can and if there is anything that I can do in return, please ask.

Click here for my page: http://pages.teamintraining.org/sj/rnr09/mpinedo

Thank you!

Silicon Valley, Facebook and Real Estate

I'm not going to go into too deep of an analysis here.... I caught a clip of "Who Wants to be a Millionaire" today. One of the questions was: Which internet giant has a CEO who is 24 years old? A. My Space B. Facebook C. ______ and D. _____ (the last two I can't remember) Answer is B - Facebook - final answer.
Facebook is yet one more internet giant created in our backyard - well actually at Stanford - same difference! The vibrancy of this area continues and will continue for a very long time. Has this affected real estate values - definitely. In fact Palo Alto is UP this year something in the range of 5%.
Google waited forever to go public - a wait lengthened by the Dot Com bust. Facebook probably will do the same - for the better. And as more and more of my 40 year old friends finally fall to the lure of sharing their college and high school pictures with friends they haven't seen in decades, the more valuable will be the FB shares - and the homes in Palo Alto.... OK I know... it's late and I rambled again. Signing off.

(By the way, scroll down to my Facebook button and friend me)

Monte Sereno Los Gatos Stunning Bank REO

$2,144,000 price for 4,700+ square feet on a 73,000 square foot lot. Built in 1990 in a gorgeous area of Monte Sereno, tucked between Los Gatos and Saratoga. This is a wonderful opportunity to buy an estate home in this wonderful area. There are few bank owned REOs in the premier areas of the valley. Call me to tour.

Bank Owned 4plex Just Listed

Was achieving $4,300 per month in rents prior to the bank evicting tenants.
Offered at $541,000 or at 10.48 gross rent multiplier. One 3 bedroom, 2 bath unit and three 1 bedroom units. There is an Owners Association that maintains landscaping throughout the 4plex neighborhood. This is a very good deal for an operator who can manage a 4plex well. Call me for details.

Santa Clara County Home (REO) Stats

5,800 listings for sale on the MLS in Santa Clara County.
*** 48% of those are Bank Owned REO or short sales ***
2,200 homes are in "Pending" status
*** 78% of the Pending homes are Bank Owned REOs or short sales ***

The bank deals ARE the market. This is very clear. Some "normal" sellers will price according to what the banks are selling homes for or they will not attract buyers. Yes, this is not easy to accept, yet that is reality.

Case Study of Duplexes in San Jose

I'm representing a buyer on a very well-priced duplex purchase in San Jose. This little street of 7 properties which were built in the late 1950's rode the roller coaster of boom and bust. Three side-by-side duplexes all sold in mid-2006 between $770,000 - $795,000. Now two of those three units will sell between $500,000 - $530,000. One was a short sale which was in escrow for 4 months, the other a bank REO that should transact quickly. Of the 4 other owners on that street that did not play the real estate game in the last few years, they apparently have been sitting pretty, collecting rents and paying low Prop 13 property taxes. Go conservatives!

Cupertino Schools Bank REO $264,900

Two story condo in Cupertino school district, 2 bedrooms, 1.5 baths, 1099 square feet for only $264,900! Low HOA dues of $295 per month. Great first time buyer home or strong investment property that will rent well. Nice condition, good location near 280 and Saratoga Avenue. Yes, Virginia, there is a Santa Claus - or - Yes, sweetie, there are deals on the west side!

San Jose NNN Dollar Tree for Sale

There is a great local NNN investment that just came available. On Story Road at McLaughlin in the heart of very dense retail development and renovation is a single tenant Dollar Tree on a new 10 year NNN lease. Offered at a reasonable 6% cap rate, the asking price is $5,128,000. The future upside is the 39,200 sq ft lot that the building is sitting on. The building was built in 1998 and has 4.59 spaces per 1,000 square feet or 55 parking spaces. If Dollar Tree does not exercise it's option to extend the lease in 10 years, the property will be well positioned to rent to another user. This is the time to get in to the San Jose retail market with a great location and great solid tenant. Call me for info!

Applebee's NNN Investment

3 year old Applebee's (I'm not a big fan of their food, although many people are)

20 year absolute NNN lease

Strong Missouri location adjacent to a Lowe's & Wal-Mart supercenter

54,000 square foot lot

7.75% Cap Rate

$1,185,000 price

These are the kind of strong tenant, great NNN lease term deals that are out there now for 1031 exchanges or straight purchases. Time to trade in the management intensive fourplex for a corporate rent check every month and higher net income.

Loan Update from Tony Guaraldi of Intero Mortgage

Rates are up quite a bit this week as Fannie/Freddie mortgage securities traded lower six days in a row, which lead to higher rates each day. Things are abnormal these days with mortgage rates. Typically rates are influenced most heavily by inflation and demand for bonds. Lately it’s been different. Here’s why.

The lenders spent most of 2008 either going out of business, merging with other banks, or laying off employees to cut costs as business came to a grinding halt. All of a sudden the US Treasury starts buying mortgage securities from Fannie & Freddie at a low 4% coupon, and this action dropped interest rates in the beginning of December. The lenders were instantly slammed with new refinance business, and now are at the point where they can not keep up with work load. So when you have too many loans in your pipeline the best way to slow down the flow of new loans coming in the door is to raise your interest rates! But people are still applying! Raise them again! Let’s take some profits while we’re at it, we can use it!

The second phenomenon in this environment is the lenders are changing the way they price zero point loans. They are strongly encouraging borrowers to pay points to get lower rates by increasing the spread between zero point rates and 1.0 point rates. You will see this on the rate sheet for conforming loans. The reason for this is a buyer/borrower is more likely to keep the loan for a longer period of time if they pay the points to get the loan and have a lower rate. The bank loses money if the borrower keeps the loan for only a few months. To encourage the behavior they desire, they are pricing the 1.0 point rates much better than zero point rates. This is of course the opposite of what the client thinks they need, so it’s our job to educate them on the benefit of paying points and show them the large amount money they will save by investing in lower monthly payments. This is a generalization on the market right now, but there are exceptions to this rule.

The third thing holding back the jumbo/conforming rates from dropping further is the rule created with the 2009 Jumbo/Conforming loans. A given bank is not allowed to have more than 10% of all of its conforming loans be jumbo/conforming. That means that 90% of all their loans must be below 417k and only 10% and go up to 625k. Well there is such a huge demand for jumbo/conforming loans that the lenders maxed out of it in a couple weeks. So most of them have greatly increased the rates on jumbo/conforming to stop the new submissions from coming in. This will hopefully normalize soon as the bundling and selling cycle starts over, and jumbo/conforming will come back down again.

In order to minimize this risk for rate volatility, with Intero Mortgage we are signing up new lenders constantly. This is a big advantage of being a broker, and not just any broker. A broker with some good volume and professional loan officers who submit clean files and act with integrity. The lenders are starting to really realize that not all brokers are good to partner with, and they are being very picky about who they will do business with. This way we have a better chance of having a lender that is not “full” already and can be competitive for rates and turn times.

That’s all for today. Give us a call this weekend if you need anything. We’ll be around! Have a good one!


Tony Guaraldi
Mortgage Consultant

Top Ten Foreclosure Cities

1. Merced, CA

2. Modesto, CA

3. Stockton, CA

4. Riverside, CA

5. Detroit, MI

6. Fort Lauderdale, FL

7. Cape Coral, FL

8. Vallejo, CA

9. Las Vegas, NV

10. Sacramento, CA



Interesting that Merced is the top foreclosure city in the US. Why Merced? Perhaps because it was a hotbed for home investors over the last few years ever since the new University of California campus was chosen there. I saw a lot of people buy there with the expectation that some 30,000 students and faculty would greatly impact the value of real estate in that city. Just buying anything in any market does not guarantee you success. We may all agree that now is a good time to buy. What is more difficult is what location, property type, etc. is best to buy. Following the herd is also not wise. The herd was very present in Las Vegas too as seen by their 9th place ranking. The land of glitter had many non-owner purchases. These being the easiest to let go to foreclosure when times get tough. The strongest markets? - those that have very high owner occupant ratios. Look at the central bay area with ratios as high as 98% for owner occupied single family homes - now that is stability.