Commercial Short Sales

The commercial short sale market is dramatically different than the residential short sale market. The commercial market is just starting to have negative issues, about a year after the residential market started to slide. What was normal a year ago in the residential market - banks not willing to negotiate short sales and being quick to foreclose - is the way commercial banks are acting now. They have yet to "get it" and will learn the hard way. I am dealing with a short sale in a commercial warehouse condo right now and the banks involved (a major bank and the Small Business Administration as a second lender) are not willing to consider a short sale until the borrower defaults for a few months. Foolish attitude. The residential lenders realized that this did not make sense about 6 months ago and the transactions started to flow. The commercial lenders will have to go through this learning curve too - hopefully not as long - we shall see...

Home Loan Modification Blog

I just started building a blog for home loan modifications. Obviously this is a large and growing aspect of real estate this year and for sure for years to come. Please see what I have offered and let me know what you think. Thanks!

3 Townhouses Milpitas Bank REO under 200k

There are now 3 bank owned REO townhouse style units for sale in Milpitas from $175,000-$196,900. All are two bedroom one bath units, some are two story "townhouse" style floor plans with 1 car garages! Great rental properties in a city with excellent future growth of infrastructure (think Bart, light rail, the Great Mall and condo towers) and schools. Good time to buy these and rent them out.

Foreclosure Statistics Bay Area Counties

These are the tallies so far for the foreclosures in each of our Bay Area counties. Interesting that the very expensive counties (San Francisco, Napa, Marin and San Mateo) have fared quite well. My two cents on that is - these areas did not have many buyers taking option ARM loans with very low down payments - thereby having healthier financials and more ability to weather storms. This doesn't mean that those areas will get by without turmoil, it just may be lighter and later. I (of course) like the fundamentals in the South Bay - jobs in the long run will be here, there is a scarcity of land and we have a lot of foreclosures from which to choose. Now we are even seeing some good deals on the 85 corridor and the west side.

Napa 539
Sonoma 1804
Marin 286
San Francisco 434
San Mateo 1011
Santa Clara 4738
Alameda 5679
Contra Costa 7877
Solano 3816
Santa Cruz 689

San Jose Bank REO 2 Bedroom Condo $139,900

Very nice location in gated complex off Capitol and McKee, 2 bedrooms, 1 bathroom very nicely remodeled, offered at $139,900. 828 square feet of sunny space. Complex is large and has lots of amenities. Interior was well kept and updated. Upstairs unit with balcony. Low association fee of $230. Sold for $355,000 in October 2006! Good deal that won't last. Consider renting this out for $1200 per month or maybe more. Call me for a tour.

Very Nice Bank Owned Fourplex in Cambrian Area

Well priced fourplex just reduced to a very attractive price near Almaden and Blossom Hill. This now bank owned deal sold for $880,000 in 2005! Now offered at 665,280! Two units are vacant - which in this market is not a difficult issue. Rents are up and vacancies are down. The banks tend to vacate buildings that they foreclose on. Fully occupied gross rents should be in the $52,000 range for all 2 bedroom 1 bath units with garages. This was listed at $734,900 and now with the price reduction, it will move. Call me for more info.

List of San Jose Bank REO's Intero has Listed

700 ADELINE AV
Townhouse (Class 2)
4 bed(s) /4+ bath(s)
871 sq ft
San Jose (San Jose)
$603,900

3274 FRONDA DR
Detached Single Family (Class 1)
4 bed(s) /2 bath(s)
6,120 sq ft
San Jose (San Jose)
$495,900

3119 AGATE DR
Detached Single Family (Class 1)
3 bed(s) /1 bath(s)
7,280 sq ft
Santa Clara (Santa Clara)
$374,900

2245 ELLIOTT ST
Detached Single Family (Class 1)
3 bed(s) /2 bath(s)
5,544 sq ft
San Jose (San Jose)
$354,900

1635 NICKEL AV
Detached Single Family (Class 1)
3 bed(s) /2 bath(s)
5,044 sq ft
San Jose (San Jose)
$340,000

3906 MARLETTE DR
Detached Single Family (Class 1)
3 bed(s) /2 bath(s)
3,570 sq ft
San Jose (San Jose)
$315,000

3608 KELTON CT
Detached Single Family (Class 1)
4 bed(s) /1 bath(s)
6,262 sq ft
San Jose (San Jose)
$289,900

1106 WEEPINGGATE LN
Townhouse (Class 2)
3 bed(s) /1 1/2 bath(s)
871 sq ft
San Jose (San Jose)
$255,000

10310 JERILYN CT
Detached Single Family (Class 1)
3 bed(s) /1 bath(s)
4,606 sq ft
San Jose (San Jose)
$240,000

1125 OAKVIEW RD
Detached Single Family (Class 1)
2 bed(s) /1 bath(s)
3,486 sq ft
San Jose (San Jose)
$237,900

1055 N CAPITOL AV #116
Condominium (Class 2)
2 bed(s) /2 bath(s)
1,024 sq ft
San Jose (San Jose)
$195,000

3269 SAGITTARIUS LN
Townhouse (Class 2)
3 bed(s) /1 bath(s)
1,460 sq ft
San Jose (San Jose)
$152,000

259 N CAPITOL AV #201
Condominium (Class 2)
2 bed(s) /1 bath(s)
1,742 sq ft
San Jose (San Jose)
$139,900

All of these are very interesting bank owned foreclosures. Call or email me to tour and write an offer on these good deals.

- Mario 415-269-6249 cell

List of San Jose Bank REO's That I Like.

1412 Joe Dimaggio Court, San Jose $219900
1263 Kiely Blvd., San Jose $442900
681 Anvil Court, San Jose $469900
1101 S. 12th Street, San Jose $207900
235 Washington Street, San Jose $159900
391 N. 13th Street, San Jose $339900
2024 Sonador Common, San Jose $419500
1598 Sawgrass Drive, San Jose $399500
280 Kenbrook Circle, San Jose $142000

Let me know if you want to tour and write offers on these great deals.

Cap Rates on Single Tenant NNNs Higher

Cap rates should naturally float above where financing rates are. This is especially true in small single tenant retail properties - let's call them the Burger Kings as an example of a NNN deal. On the West Coast, these deals would sell at about a 6% cap rate and purchase prices in the $1.0M - $1.3M range. Over the last decade, most of these purchases were tied to a 1031 tax deferred exchange of a typical rental house owner trading into an easy-management single tenant property. But what happened to the single family market lately? Those rental homes lost value and that stemmed the flow of people exchanging up into small single tenant deals. With buyers in that market drying up, motivated sellers of the BKs have had to lower their asking prices (increase their cap rates) to attract the fewer buyers. AND interest rates are low. So, the spread between interest rates and natural cap rates is unnaturally high. Good time to be shopping if you have cash (for a down payment) to do a deal.

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)