Trulia wins my heart

I received a Build-a-Bear today with a Trulia button on it. It also has a squeeze hand which when pressed says "You are trulia wonderful" - well that's probably incorrect, but it is close to what is says. The bear was quickly absconded by my daughter. So, I only heard the phrase once. The note christened my a centenarian - I guess I answered over 100 questions on Trulia Voices. Well Trulia, I am listening. If I get to 200 do I get a trip to Las Vegas, perhaps the Wynn Hotel or I'd settle for the Bellagio. $200 worth of gaming chips too. That would be very, very nice:-)

Silicon Valley Rental Rates Climbing

I keep seeing emails through our company intranet asking for rental houses. People are relocating into the valley and looking for high end rental homes. Actually, not high end, just decently located, good condition homes near the work areas of Menlo Park, Palo Alto, Mountain View, Los Altos and Sunnyvale. No issue paying $3,000 to $4,000 per month for a clean 3 and 2. It's not dot com by any means. It's just a strong valley.

Commercial Loan Rates

Ballpark rates from last week for portfolio lenders are given here; 25 year am, possible 30 on newer property, some due in 10, others due in 25 or 30. Some sources will go to 185 bps as margin. Some will underwrite newer properties to 1.15 DCR, otherwise 1.20. I would need property information to develop a no-prepay option, 30 due in 10, fixed for 5 then rolling to another fixed for the second 5 years; this option typically at 1.25 DCR, probably in the range 6.6 to 7.25%.



Program
Index
Index
Rate
Margin
Rates as of
8/14/2007

3 Year Fixed
3 Yr Treasury CMT
4.49%
2.00%
6.49%



5 Year Fixed
5 Yr Treasury CMT
4.57%
2.00%
6.57%



7 Year Fixed
7 Yr Treasury CMT
4.65%
2.00%
6.65%



10 Year Fixed
10 Yr Treasury CMT
4.78%
2.00%
6.78%



15 Year Fixed
10 Yr Treasury CMT
4.78%
2.00%
6.78%

From Dave Singleton of Investors Trust Mortgage Corporation

If you want excellent commercial-investment loan service, call Dave at 831-245-6603.

Bank Owned Properties - REOs - Foreclosures in the Bay Area

ALAMEDA COUNTY

ADDDRESS PRICE BR/BTH/SF

2061 CALHOUN ST., ALAMEDA 687900 3/2;2540
17480 CARDINAL COURT,CV $1,174,550 4/3.5;3255
20958 ELBRIDGE COURT, CV $954,900 4/3;2814
42763 JEFFERSON, FREMONT $524,500 4/1.5;1151
39495 ALBANY CMN UNIT G, FREMONT $339,900 2/1/890
23510 WRIGHT AVE, HAYWARD $536,750 3/1;1153
24982 COPA DEL ORO, #103, HAYWARD $389,900 2/2;958
27505 TAMPA, #31, HAYWARD $400,000 2/1;910
21239 GARY DRIVE, HAYWARD $377,625 2/2/1100
2144 BOCA RATON, HAYWARD $489,900 3/2;1128
755 DOUGLAS ST., HAYWARD $482,000 3/1;1034
1102 HOLMES WAY, HAYWARD $439,900 2/2;1797
24999 2ND STREET, HAYWARD $539,900 3/1;1097
1672 EAST AVENUE, HAYWARD $449,900 2/1;837
380 SMALLEY AVENUE, HAYWARD $490,000 3/2.5;1520
19029 WAVERLY AVENUE, HAYWARD $459,900 3/2;
27411 PORTSMOUTH AVENUE, HAYWARD $499,900 3/2;1128
21178 OCEAN VIEW, HAYWARD $459,900 3/2;1392
24959 KAY AVENUE, HAYWARD $584,900 3/2;1290
2436 CENTINNIAL LN., HAYWARD $749,900 3/2.5;2023
27480 CALAROGA AVENUE, HAYWARD $417,000 3/2;1119
24523 MARGARET DRIVE, HAYWARD (DUPLEX) $499,900
21961 ARBOR AVE, HAYWARD $459,900 2/1/775
1540 PORTOLA AVE., LIVERMORE $349,900 2/1.5;982
820-822 100TH AVENUE, OAKLAND $305,000 4/2;1240
5627 HILTON ST., OAKLAND $404,900 3/2;1512
2850 MACARTHUR BLVD., OAKLAND (TRIPLEX) $560,500 5/4;2335
3826 39TH AVENUE, OAKLAND $314,900 2/1;1214
4929 STACY, OAKLAND $599,950 3/2;1579
812 105TH AVENUE, OAKLAND $319,900 2/1;884
4940 STACY, OAKLAND $680,500 5/3;2200
9841 LAWLOR, OAKLAND $469,900 4/2;1320
6458 OUTLOOK AVE.,OAKLAND $433,125 3/2;1325
840 51ST ST., OAKLAND $459,900 2/1;936
4053 EDWARDS AVE, OAKLAND $454,900 2/1/1119
2610 HIGHLAND AVE, OAKLAND $439,900 3/2/1203
2332 CHURCH ST, OAKLAND $414,900 2/1/1014
2046 81ST STREET, OAKLAND $411,300 DUPLEX
6833 MACARTHUR, OAKLAND $354,000 2/1/1027
5509 LAVERNE, OAKLAND $339,900 2/1;1023
3319 72ND AVENUE, OAKLAND $379,900 4/1/1426
14960 WESTERN, SAN LEANDRO $462,000 3/2;1346
14675 AURELIA, SAN LEANDRO $529,900 3/2;1437
1060 DILLO STREET, SAN LEANDRO $469,000 2/1;1022
15673 ANCHORAGE, SAN LEANDRO $719,900 4/2.5;2013
17041 VIA ALAMITOS, SAN LORENZO $459,900 3/1;1051
642 HACIENDA, SAN LORENZO $479,900 3/1;1068
34187 SOTO DRIVE, UNION CITY $769,900 3/2.5;2000
2274 PEACOCK PL., #2, UNION CITY $319,900 2/1;903

CONTRA COSTA COUNTY

ADDDRESS PRICE BR/BTH/SF

2051 DANVILLE BLVD., ALAMO 1,389,999 3/2;2823
500 W.10TH ST., ANTIOCH 424,900 2/2:1945
1325 AUGUST WAY, ANTIOCH $369,900 3/1;1230
1741 SAN JOSE DRIVE, ANTIOCH $399,000 4/3;1618
2052 TUPELO WAY, ANTIOCH $614,000 4/2.5;2591
5137 WINTERGLENN, ANTIOCH $460,900 4/3;1787
234 SAN JOAQUIN AVE. ANTIOCH $264,900 2/1;848
141 RAINER LANE, ANTIOCH $299,900 4/1.5;1342
40 E. MADILL, ANTIOCH $339,900 3/1;1082
1612 MARIE AVENUE, ANTIOCH $317,000 2/1;1008
2312 CRYSTAL CT, ANTIOCH $558,550 6/3/2653
413 AZORES CIRCLE, BAY POINT $469,900 3/2/1279
38 CANAL DR, BAY POINT $339,900 3/1/1180
42 HARBOR, BAY POINT $379,900 3/2/981
159 TAMMY CIRCLE, BAY POINT $245,500 2/1/842
1445 EMPRESS LN., BRENTWOOD $599,900 5/3;2996
971 COUNTRY GLENN LN., BRENTWOOD $424,900 3/2;1502
1238 COMICE PKWY, BRENTWOOD $664,500 6/4;3546
2281 KEYSTONE WAY, BRENTWOOD $614,900
2870 HILLTOP, CONCORD $364,900 3/1;1028
2141 NORTHWOOD, CONCORD $299,500 2/1.5;1000
994 OAKGROVE RD., CONCORD $409,000 3/1;1262
1381 SAN JOSE AVE., CONCORD $438,000 3/2;1208
2167 HURON DR., CONCORD $469,900 4/2;1136
1311 ORANGE ST., CONCORD $449,900 3/1;1196
3706 LOS FLORE, CONCORD $419,900 2/1;878
3665 EDMONTON DRIVE, CONCORD $394,900 4/2;1244
5259 LONDONDERRY DRIVE, DUBLIN $819,900
7708 SAN SABANA CT., DUBLIN $614,900 1774
4575 MANGROVE #26, DUBLIN $459,800 2/2;1201
7096 ELBA WAY, DUBLIN $592,500 4/2;1708
4281 CLARINBRIDGE DRIVE, DUBLIN $599,900 2/2.5;1428
787 BALRA DRIVE, EL CERRITO $637,900 3/1;1052
3731 RUSKIN PLACE, FREMONT $609,900
601 DEVONWOOD PKWY, HERCULES $379,000 2/2;1281
235 EMERALD WAY, HERCULES $744,900 5/3/2615
1175 WILLIAMS, HERCULES $612,500 5/3/2188
30 SODARO DR., MARTINEZ $403,500 4/2;1479
1850 GATEWAY DR., OAKLEY $449,900 3/2;1661
284 HAVENWOOD CIR., PITTSBURG $524,900 4/2;1775
1605 NORTON, PITTSBURG $319,900 4/2;1332
30 MEADOWBROOK, PITTSBURG $260,900 2/1/1122
229 W.10TH, PITTSBURG $369,900 3/1;2217
3815 SHASTA CIR., PITTSBURG $304,900 3/1;1434
134 PEPPERMILL, PITTSBURG $289,900 2/2/1082
464 2ND, RICHMOND $351,900 4/2;1569
3117 STONE CLIFF CT, RICHMOND $499,000 3/2;1448
864 10TH ST, RICHMOND $264,300 2/1/846
1159 VIEW POINT, RODEO $509,000 3/2.5;1673
1747 CALIFORNIA, SAN PABLO $299,900 2/1;748
2 MARIA VEGA, SAN PABLO $505,000 4/2;2063
2131 ROAD 20, SAN PABLO $439,900 2/2;1317 1/1;500
1730 PINE AVE., SAN PABLO $314,000 2/1;1058
2600 GIANT #48, SAN PABLO $299,900 2/2/1121

SAN MATEO COUNTY

ADDDRESS PRICE BR/BTH/SF

368 IMPERIAL #247, DALY CITY STUDIO 259000 1;468
930 MISSION, #38, SO. SF $515,900 2/2;1060
536 5TH AVENUE, REDWOOD CITY 599900 2/1;730
162 CORONADO AVENUE, SAN CARLOS $889,900 3/2;1990

SANTA CLARA COUNTY

ADDDRESS PRICE BR/BTH/SF

1351 3RD ST, GILROY $710,000 3/2/2036
311 S. 22ND STREET, SAN JOSE $446,500 2/1.5;684
5468 TYHURST WALWAY, #3, SAN JOSE $345,000 2/1;903
101 RANCHO DRIVE, SAN JOSE $344,900 2/1;822
1390 SADDLE RACK, #314, SAN JOSE $493,400 2/2;1258
3025 THREE SPRINGS, SAN JOSE $1,476,900 5/3.5;4553
40 SILCREEK DRIVE, SAN JOSE $459,900 2/2;1313
870 DELAVION WAY, SAN JOSE $700,000 3/2.5;1705
4081 PARTRIDGE DRIVE, SAN JOSE $720,000 3/2;1447
5578 SPINNAKER DRIVE UNIT 1, SAN JOSE $319,900 2/1;810
813 N CAPITOL AVENUE UNIT 1, SAN JOSE $339,900 2/1;810
3626 SPRINKGROOK AVENUE, SAN JOSE $799,900 4/2.5;2124
1940 TRADAN DRIVE, SAN JOSE $379,000 2/2;988
1798 PARKDALE WAY, SAN JOSE $593,000 4/2;1353
4970 GAZANIA DRIVE, SAN JOSE $594,900 3/2;1384
1815 OCALA AVENUE, SAN JOSE $559,900 3/2.5;1410
3266 LANTERN WAY, SAN JOSE $609,900 3/2;1152
53 MILLAR AVE, SAN JOSE $559,900 2/1;1000

SOLANO COUNTY

ADDDRESS PRICE BR/BTH/SF

1306 COOLIDGE, FAIRFIELD $359,900 3/2/1261
1519 HENRY STREE, FAIRFIELD $345,000 3/1;1014
1219 EISENHOWER, FAIRFIELD $309,900 3/2;1097
1941 GRANDE CIR #63, FAIRFIELD $204,500 2/2.5/1080
1624 MARLESTA, PINOLE $439,900 3/1.5;1050
532 SOMMERVILLE, VACAVILLE $349,900 4/2.5;1680
1935 GRIFFIN DR, VALLEJO $422,900 3/2/1793
141 SUNCLIFF PL, VALLEJO $515,500 3/3/1652
3415 EDGEWATER, VALLEJO $689,550 5/3/2565

SAN JOAQUIN COUNTY

ADDDRESS PRICE BR/BTH/SF

767 SAGEWOOD LANE, TRACY $509,900 4/3;2536

Cap Rates Need to Adjust for NNN real estate investments

If interest rates rise due to the higher risk associated with commercial lending, then cap rates need to rise appropriately. This adjustment is not evident in the market yet. Commercial sellers are like gas station owners, eager to raise prices on the rumor of a shortage in gas, and reluctant to lower prices when the cost of oil drops. Eventually there will be a slowdown of sales activity and an increase in commercial inventory. This will prompt realistic, motivated sellers to reduce their prices and raise cap rates. If we all could cooperate sooner, that would be best for everyone.

Good schools drive Milpitas home sales

2149 Calle Vista Verde, Milpitas, townhouse sold within 5 days last week. Asking price $725,000 for 1990 square feet, 15 year old Shapell attached home with 3 bedrooms and 2.5 baths. The market for well located home in Silicon Valley with strong school scores is strong. Today at our listing across the street - 2146 Calle Vista Verde, Milpitas we had over 15 interested families come through. Many neighbors with friends who want to be in the same neighborhood - a very good sign. Most were young families with school age children. Best to buy a house in a good school district than pay rent and possibly private school tuition. Everyone touring today was secure in their tech job and had plans to remain in this vibrant valley.

Retirement changes real estate investment strategy

I just sat down with a client who 4 years ago was in the prime earning years and could afford the negative cash flow of his duplex. Now, after he's retired, the focus changes. He is sitting on a good amount of equity and wants to have that benefit him on a monthly basis. A simple 1031 exchange into a single tenant commercial property will take him from negative $500 to positive $2,000. AND no phone calls from tenants about clogged pipes!

Duplex vs Condo in Sunnyvale or Mountain View

It may take a little more guts and a bit more downpayment to buy a duplex over your first "standard" purchase in Silicon Valley (ie: the condo). A decent 2 bedroom condo in Mountain View will run you $500,000 while a duplex in the same area could be $900,000. For the extra $400,000 you will receive approximately $1800 in rent which wil almost cover your additional debt. The benefits? How about not having to pay monthly homeowners dues, having a private garage, having a backyard, collecting rent, getting tax sheltering from the rental unit, paying less in income taxes, benefiting from a larger appreciation base or getting rent increases? There are many benefits to doing this. I also know that five years from now, you will have a vastly better financial picture than if you had bought a condo.

New Cupertino & San Jose Home Listings

Address City Zip Price Beds Baths Square Feet

11487 LINDY PL Cupertino 95014 $2,395,800 4 2 1/2 3980
1053 JACQUELINE WY San Jose 95129 $1,599,999 4 3 1/2 2500
22438 CUPERTINO RD Cupertino 95014 $1,498,000 3 2 1/2 2450
21912 ALMADEN AV Cupertino 95014 $1,360,000 3 2 1746
18460 FARMINGHAM WY Cupertino 95014 $1,349,950 4 3 2741
10197 FINCH AV Cupertino 95014 $1,098,000 3 2 1691
20077 LA RODA CT Cupertino 95014 $1,089,950 3 2 1564
810 ALDERBROOK LN Cupertino 95014 $974,950 3 2 1201
10022 MOSSY OAK CT Cupertino 95014 $799,000 2 2 1/2 1413
22921 LONGDOWN RD Cupertino 95014 $789,950 3 2 1/2 1500
22661 QUEENS OAK CT Cupertino 95014 $788,000 3 2 1/2 1341
10594 WHITE FIR CT Cupertino 95014 $729,999 3 2 1172
10605 GASCOIGNE DR Cupertino 95014 $729,000 3 1 1048
4772 RASPBERRY PL San Jose 95129 $629,888 4 2 1/2 1408
4813 ALEXANDRIA LN San Jose 95129 $550,000 3 1 1/2 1230
1549 BROOKVALE DR #4 Cupertino 95129 $520,000 2 1 1000
1549 BROOKVALE DR #3 San Jose 95129 $490,000 2 1 895
4671 ALBANY CI #00123 San Jose 95129 $365,900 1 1 813

If you want information on any of these homes, please call Mario at 415-269-6249.
Thanks!

San Jose Silicon Valley Commercial Real Estate Very Hot

Office vacancies are down significantly this year. Office rents are rising across the board, even in the larger spaces - last year the move was most significant in under 3,000 square foot spaces. Now larger users are demanding more new space.

Retail rents are very strong and have been for the last few years. Try locating a new restaurant in this Valley - it may be a difficult requirement to fulfill. Household incomes are very high and every retailer wants to be in the Valley.

Warehouse and industrial spaces are in very limited supply. I recently had a moving company looking to move themselves - finding a fenced yard near decent freeway access was a bear.

A lot of defunct industrial buildings are also going the way of mixed-use developments or shiny new townhouse complexes.

Where is the valley that I knew back in 1969 - when I was a tiny 1 year old?

REO - Bank Owned Homes - Foreclosures San Jose Area

This is a partial list of homes already foreclosed on and owned by a bank. If you want information on them, please give me a call or email.

ADDRESS PRICE BR/BTH/SF
1351 3RD ST, GILROY $710,000 3/2/2036
162 CORONADO AVENUE, SAN CARLOS $889,900 3/2;1990
311 S. 22ND STREET, SAN JOSE $446,500 2/1.5;684
5468 TYHURST WALKWAY #3,SAN JOSE $345,000 2/1;903
101 RANCHO DRIVE, SAN JOSE $344,900 2/1;822
1390 SADDLE RACK, #314, SAN JOSE $493,400 2/2;1258
3025 THREE SPRINGS, SAN JOSE $1,476,900 5/3.5;4553
40 SILCREEK DRIVE, SAN JOSE $459,900 2/2;1313
1940 TRADAN DRIVE, SAN JOSE $379,000 2/2;988
1798 PARKDALE WAY, SAN JOSE $593,000 4/2;1353
4970 GAZANIA DRIVE, SAN JOSE $594,900 3/2;1384
1815 OCALA AVENUE, SAN JOSE $559,900 3/2.5;1410
3266 LANTERN WAY, SAN JOSE $609,900 3/2;1152
1464-1466 POMPEY, SAN JOSE $738,900 5/2.5;2180
53 MILLAR AVE, SAN JOSE $559,900 2/1;1000
1382 S.WOLFE ROAD, SUNNYVALE $639,900 2/1;875

Condos in Mountain View, CA - good inventory

It's a great time to be selling a single family home in Mountain View. Quite a different story if you are selling a condo. There are many units on the market and some have been on the market for quite a few weeks, if not months. Very good consideration when rents in Mountain View are quite steep. One bedrooms walking distance to Castro Street and my favorite restaurant Xanh starting at $349,000. This is an excellent price to be in the heart of Yahoo and Google.

Palo Alto Investment Property Rents High

I just got a call back from the leasing agent at www.vrent.com about a 2 bedroom apartment near downtown Palo Alto. I had requested the info because a Trulia.com question came up about renting in PA. $2,500 for a "remodeled" 2 bedroom, 1 bath unit walking distance to University Avenue and all the wonders of Stanford Univesity. Wow! Rents are approaching the dot com days. This is especially true in Palo Alto, Mountain View, Los Altos and Cupertino. The rent vs. buy analysis starts to look very buy favorable.

The Real Estate Bubble

I see this as an opportunity to buy. Why does everyone rush on the bandwagon and buy when everyone else is buying? Does this make any sense? Merril Lynch's defunct ads with the herds of bulls running gave way to their ads with one loan bull confident in his strategy - or his peice of turf. Real estate is a great asset to own. Ask anyone with a memory. The rougher times are better for buying. Rents are up too. Find a way to buy a house and rent it out. You'll be amazed what that one move will do to your fortunes 10 years from now.

Cupertino Real Estate Homes for Sale

Address City Zip Price Beds Baths Square Feet
22031 RAE LN Cupertino 95014 $2,350,000 5 4+ 4727
10670 LARRY WY Cupertino 95014 $1,700,000 6+ 4+ 3200
1031 CRAIG DR San Jose 95129 $1,598,000 5 3 1/2 3022
10200 BYERLY CT Cupertino 95014 $1,495,000 3 2 1/2 2252
10895 DRYDEN AV Cupertino 95014 $1,450,000 3 2 2480
11171 BUBB RD Cupertino 95014 $1,399,000 4 3 2248
18650 CRABTREE AV Cupertino 95014 $1,395,000 4 2 1/2 2600
10620 S TANTAU AV Cupertino 95014 $1,268,888 4 3 1/2 2400
1779 LARK LN Cupertino 94087 $1,100,000 4 2 2168
10205 PASADENA AV Cupertino 95014 $998,000 3 1 1092
1141 FAIRFORD WY San Jose 95129 $998,000 4 2 1540
1168 SCOTLAND DR Cupertino 95014 $988,000 3 2 1190
17300 STEVENS CANYON RD Cupertino 95014 $950,000 1 1 786
807 SPRINGWOOD DR San Jose 95129 $889,000 3 2 1456
922 BROOKGROVE LN Cupertino 95014 $879,000 4 2 1432
18868 HUNTER WY Cupertino 95014 $799,000 3 1 1/2 932

These single family homes just came on the market in West San Jose and Cupertino. If you want any help with these or the rest of the market, please call or email me.
Thanks!

Trulia.com vs. Zillow.com

The head to head real estate titan clash of the year is about to erupt! Inman is having their annual conference on real estate in San Francisco this Wednesday. The real battle is the night before in SOMA (South of Market Area). In the first corner is Zillow with "Beer with Bloggers" at Thirsty Bear at 5pm - 7pm. This is the official Inman drink-a-thon sponsored by Zillow. Then Trulia answers from the second corner with "Tinis with Trulia" from 7pm to 9pm at John Collins just a short stumble away. My early odds are on Trulia. Martini's - come on man, that's way more hip than beer AND I heard the swag at Trulia will be very cool. Want an evite...?

Starbucks, Panda Express & Verizon

I just taught a real estate practices class at De Anza College and the above example came up. On the corner of Stelling and Stevens Creek Blvd in Cupertino there stood a Warehouse Records store of approximately 5,000 sqft. Nice hard corner, great demographics. Unfortunately for the owner Warehouse succumbed to technology and declared bankruptcy. The building owner then tried in vain to lease the space to another tenant although no one was biting on the 5,000 square feet. Along came an investor group that offered to buy the building for approximately $200 per foot. She agreed to the sale. They then demised the space into three and brought in Starbucks, Panda Express and Verizon. Then were able to sell the building for approximately $700 per foot within a year. Nice profit! Lesson to be learned - hire competent Realtors to advise you on what your best strategy is. In my humble opinion!

One Rincon Hill Condos - Prices Rising

All the two bedroom units in the first tower are in escrow. Only units left are junior one bedrooms and a three bedroom unit. There will be some fall out - and there is a waiting list forming - though the project is a financial success. 2 bedroom units - if they come back on the market will be from $1.1M - $1.5M with decent views. This is a few hundred thousand more than when they were released. The second tower will be priced 15% higher due to demand and also higher construction costs. The fear of a glut of condos in San Francisco is unwarranted. Developments like this will spur demand and quality. Waiting list for the 2nd tower in early 2008.

Capital Gains

The capital gains exclusion for a married couple is $500,000 ($250,000 for a single person)if they have lived in the home two out of the last five years. In many expensive neighborhoods of the San Francisco Bay Area, this still leaves someone with a large capital gains bill. A solution is to convert the property into a rental for at least a year. Then, sell the property, take the exclusion and 1031 exchange the rest. This shelters all of the capital gains that remain and with the right planning, you can avoid the gains in the future too.

FICO credit scores and how to improve them

I just answered a question on Trulia.com about FICO credit scores:

"There are many ways to raise your credit score if you know what the formulas are that calculate FICO. One valuation is based on what your total debt is compared to your total credit lines on credit cards. If her aggregate credit line is $10,000 and she owes $10,000 then she's at 100% debt - which does not rate well. If she can request a credit line increase to $20,000. She quickly goes to 50% debt - which is a much more favorable FICO score."

My guru on credit scores and how to improve them is Robert Childs in the city of Walnut Creek in the San Francisco Bay Area. His website is www.ProFamilyFinancial.com
For some reason the link is not going through tonight. He can also be reached at 925-551-4990.