Willow Glen Open House June 27th 1:30-4:30

http://tours.altavistavirtualtours.com/5510

This home is wonderful. Come visit tomorrow and be impressed!

Short Sale 4plexes are Gone

The market is improving all around. I cannot say this is our firm bottom by any means. Although, there are a lot of buyers and their agents chasing single family homes, townhouses and condos with multiple offers and going over asking prices. What I found interesting is that this wave has finally come over to the duplex - fourplex market. A few months ago, there were some outstanding short sale opportunities in west San Jose, specifically near Southwest Expressway and San Jose City College. Now those deals are all in escrow - some 3,500+ square foot fourplexes were listed at $650,000-$750,000. My client just bought a fourplex on Leigh Ave - very nice property - Pollack & Gambord style - for $700,000. If that property went on the market now, it would easily be worth $800,000+. We were in a short sale escrow for approximately 3 months and the market moved higher in that timeframe. There are still some deals that are not being chased, but they are becoming fewer. Has the market really turned...? Comments and thoughts please!

Last Year's Bank REO is This Year's Short Sale

It's not this year's Black is the last year's Ecru... Although it is interesting to see that a bank owned condo in the mid-Peninsula in early 2008 is now on the market as a short sale some 15 months later. Yes - all bank deals are not necessarily good deals! And for sure, the banking regulations and scrutiny have become more intense in that period. Good for consumers and banks to have loans decided on their true merits and stability. I also believe that the first wave of bank owned properties last year were the beginning of the slide and many buyers thought otherwise. Most bank properties now are selling quickly in the Peninsula and the South Bay. Some though, especially the higher end homes are sitting and taking price reductions. There are good reasons to not jump in necessarily on a deal just because it is owned by First National Trust and Co, Ltd..

San Francisco Apartment Building Short Sales and REOs

We are tracking a large investor group that is having their apartment acquisitions over the last 5 years liquidated or restructured by their bank partners. Approximately 50 of the 250+ buildings held by the group were given back via Deed in Lieu of Foreclosure. Another 12 buildings are currently being marketed for sale via a mutual agreement of the banks and the owners - essentially a formalized short sale process. 6 of these assets have already gone pending. The properties range from Tenderloin difficult properties to a Marina building ideally located one block from vibrant Chestnut Street to a heart of Chinatown property. All of which are essentially fully occupied properties. This is the best opportunity I have seen since starting the business in 1991 to acquire a solid San Francisco asset at a reasonable down payment and cash flow!

City of San Jose Downpayment Assistance for High Rises

The City of San Jose just opened up the downpayment assistance program to the new high rises in downtown. These will included The 88, City Heights, 360 Residences and Axis. Assistance of $50,000 for one bedroom units and $60,000 for two bedroom units are available. These are no payment loans - the cost of the loan is the pro-rata appreciation of the unit when you sell in the future. Example, if you buy a $400,000 J plan one bedroom at The 88 and use $50,000 from the City for a downpayment, this is 12.5% of the purchase price. When you sell, you would pay back the original $50,000 plus 12.5% of the profit. Very good deal. This paired with some fantastic deals in price that are being offered and you have a great opportunity to buy your first home. Call us for the current best values in downtown.

Technology and Real Estate

I know I've touched on this topic before and I truly believe it has very important investment impact for commercial property owners & investors. Why today though? Well, as a guy who is perhaps on the verge of becoming a relatively young tech dinosaur, this topic is close to my heart. Meeting a friend at Starbucks this morning, she wanted to give me some songs so I could update my Ipod workout playlist. I was handed a microscopic 4meg chip that she easily popped out of her smartphone. My one year old Blackberry had no apparent slot for this media card. I had to open the back plate, pull out the battery and then dig for the media card to take out. Obviously not a new enough smart phone for 2009! Also, today the big media buzz is about the new Palm Pre and the price slash on the 3G Apple IPhone.
My concern over technology and real estate is - not the "what happened to all the retail space taken by travel agencies" but now: What will this freedom and freeflow of information and entertainment do to how we live our lives and where we spend our money? I would like to throw this question out there and ask for ideas on where this will take our need for housing space, retail space and office space. Square feet per occupant has got to go down (just think of all the saved space when the tube tvs and rack stereo systems are replaced by a flatty and an ipod - yes I know this already happened...) and in the workplace everything is shrinking except the size of the employees (think better nutrition). Any thoughts? (See what a tall soy latte is capable of doing?)

Absolute NNN or Ground Lease?

A majority of the single tenant NNN properties that are Ground Leases are marketed at a lower cap rate than traditional NNN leases. The (ir)rationale for this is that the tenant pays for all the improvements built upon the land and the LANDlord has no responsibilities. So, therefore, some would assume that the investment is more valuable and should therefore sell at a higher price/lower cap rate. I disagree...
What the landlord does not get in this scenario is the ability to depreciate the building - this value goes to the tenant. The shift of this financial benefit from landlord to tenant usually is very significant. And to pay a premium for this less-than situation is ridiculous. The far better alternative is the Absolute NNN lease. Whereby the tenant pays for absolutely all costs of the property and the landlord still has technical ownership of the improvements (building) so he can still depreciate the property.

Another Technology Real Estate Death

Near the corner of Stevens Creek at Lawrence Expressway in San Jose is a new for lease sign. It sits in front of the recently closed approx. 4,000 square foot Blockbuster Video store. 10 years ago this would have been a very hot NNN investment property - little did people see how technology would reshape the real estate world. We want to be very forward thinking whem investing in commercial property. What can change in the next 5 or 10 years - the time frame when you may want to sell or exchange. Food is hard to sell on the internet. But cell phones as an example - do they require such an abundance of retail stores? Banks are also significantly shrinking their retail space requirements. All these changes morph strip malls and the investment outlooks behind them. That's what I think while waiting for my haircut at Supercuts.
Mario Pinedo, CCIM
Intero Real Estate
Office 408-342-3155
Cell 415-269-6249

Where to Invest?

Or what to invest in? That was a question just posed to me by a new friend of mine. Big question if you think about it. It all started off by her asking me if I liked Pinkberry frozen yogurt as we were walking through Santana Row. Then the conversation went to the competitors in that marketplace - Red Mango and others. Good or bad for an investor? They are making a volume of sales for sure. Does that make for a good real estate investment? I would say in general no. Starbucks was the industry darling for quite a few years. Everyone wanted a strip center with Starbucks as a tenant. And those single tenant Starbucks and strip centers sold at a premium (lower) cap rate. Now, with Starbucks closing locations, this darling is no longer courted. And owners of these will not be able to sell at the same premium cap rates that they bought. Starbucks was a trend - it didn't seem so at the time - it seemed as if the world economy had shifted to have an endless demand for coffee. Pinkberry is also a trend and trends wane. I'm boring and conservative when it comes to real estate investments - I like unhealthy hamburger and boring drug stores over flash in the pan froyo and grande lattes. And then there is the thing about location...

Estate Quality BANK REO near Silver Creek

Feel like you are on vacation in your own home! Breathtaking views of golf course & city lights from this elegant Ponderosa Ridge home. 6 bedrooms,3 ½ baths with upgrades throughout. Excellent floor plan with marble, hardwood floors, new carpet & paint. Spacious master suite with fireplace, vaulted ceiling, huge spa bathroom. Open kitchen and family room overlooking pool and flagstone patio. 3 car garage. 4,001 square feet on a 15,681 square foot lot. Built in 1999. This is a very well priced bank deal in the Silver Creek area. Just came on the market. Offered at$1,319,900. Call for a tour quickly. I am holding this home open Sunday, May 10 from 1:30-4:30. 4751 Whitetail Lane, San Jose, CA 95138

Investing in Short Sales and Bank Owned REOs seminar

This Thursday at Intero Cupertino we will be holding our investment seminar specifically focused on short sales and bank owned properties. Our manager Jess Wible and Jason Smiley from Intero Mortgage will covering many strategies on how to invest well in this market. Only 6 seats remain for this class. Please email or call me to RSVP. This Thursday, May 7, 2009 6pm-7:30pm.

Warehouse and fenced yard San Jose

Very good deal and excellent location for an industrial warehouse property with parking for trucks or equipment. $1,300,000 is the asking price for this freeway exposure property currently rented by an asphalt paving company. There is over 5,000 square feet of warehouse and dock space. Over 20,000 square foot lot. This parcel is right at the "clover leaf" of North 101 going to South 880. Perfect deal for a construction company that wants to own their own space.

Call me for a tour:

Mario Pinedo, CCIM
415-269-6249

Communications Hills Townhouse Bank REO $425,000

Two bedroom, two and a half bath, modern townhouse built in 2002. 1,264 square feet, end unit model on Communications Hill. Great location. Granite upgrades, Views!, two master suites. Two car garage. Too much to list. Great value! Call me to tour 415-269-6249.

Loan - Purchase Perspective - It's not all about rate

From Yulin Lee of Opes Advisors, Yulin is one of my trusted advisers in the lending world:

Since January we've been seeing historically low conforming loan interest rates. It seems we've almost gotten used to having them around.

Most recently we've been seeing some incredible rates for jumbo loans. This is great news for the high cost Bay Area and it opens up new opportunities for both purchases and refinances.

It's easy to get enamored by great rates. But rates aren't the whole story. The rest of the story includes having the chance to consider the many other variables involved and to reveal opportunities and potential threats that aren't immediately apparent.

In fact, all the buzz about low rates led a client to contact me about a purchase he was considering. Rather than immediately jumping into a rate conversation, I suggested we take a broader look at what he wanted to accomplish.

Taking advantage of Opes' blended expertise of Wealth Management and Mortgage Banking; we looked further into his financial situation and discussed his financial goals. Through this planning, we assessed that increasing his down payment somewhat would enable him to get a considerably lower rate. We were also able to demonstrate that he would be receiving the equivalent of a guaranteed return of 8.25% on the additional down payment money.

Whether securing a home loan for a purchase or a refinance through Opes Advisors, we provide our clients key financial advice. And, because comprehensive financial advice is so important to meeting financial objectives, we do this at no additional charge. Here is a link to some of our client case studies.

Please contact me to discuss a specific situation or to review the potential impact of options that are being considered.

Best regards,
Yulin

Union City Pre-Foreclosure Warehouse Condo for Sale

2,452 square feet warehouse condo for sale at 33371 Croation Way, Union City, CA 94587
This is a short sale with financing from a conventional bank and the SBA (Small Business Administration). Seller is facing foreclosure. Looking for an interested buyer who can make an offer subject to obtaining bank and SBA short sale approval.
Ideally located near Hwys 92 and 880.
Call to tour this great property perfect for your business.

Commercial Office Building BANK REO San Jose

New bank REO in a great location of South San Jose near Silver Creek Valley Country Club and Hwys 101 and 85. 6,093 square foot stand alone office building, well built out with 7 perimeter offices, two conference rooms and a break room. Also approximately 60% of the space is open floor plan for cubes or lab/work space. 100% drop ceiling. 8.7 per thousand parking with reciprocal parking agreements. Built in 2006 in a complex of similar office buildings, this deal is very well priced. Offered at $175 per foot for almost new product or $1,066,275. Call me to tour this great opportunity.

Home Buyer Workshop April 21, 2009

Intero Mortgage is hosting their monthly Home Buyer Workshop
Tuesday April 21st, 6pm - 7:30pm
10275 N De Anza Blvd, Cupertino, CA 95014

* Home Purchase Process Step by Step
* Credit Reports Revealed
* Mortgage Options Currently Available
* Jumbo Loans to 2 Million
* Conforming with 5% Down
* FHA with 3.5% Down
* Min Credit Score 620
* Title & Escrow Process
* New Tax Credits From Fed. and CA

Tony and Jason give a very informative talk on how to finance a home in this market. This is well worth the time for anyone looking to buy a home. Please email me or call to RSVP.

7 Bank REOs in Los Gatos

A total of 7 bank owned homes in Los Gatos available now. These are some very nice deals. Call me to get a run down of which would work best for you.

17450 Phillips Avenue - $2,750,000 - gorgeous estate home, gated entry, 5,725 square feet.
15433 Blossom Hill Road - $1,399,900 - 4,324 square feet
101 Via De Tesoros - $949,000 - 3,505 square feet, gorgeous pool, setting, amazing price per square foot in a great area
301 Blossom Valley Drive - $749,000 - 1,602 square feet - very nice house in Los Gatos
16449 Lucky Road - $1,919,000 - Monte Sereno address - 4,913 square feet - modern light filled home. A short drive up the hill from Hwy 9. Spectacular views.
16040 Escobar Avenue - $1,225,000 - 2,096 square feet - very pretty house on nice lot.
15075 Garden Hill Drive - $825,000 - 2,106 square feet on over 19,000 square foot lot - large fixer upper in great Los Gatos schools

Mario Pinedo, CCIM
Intero Real Estate
415-269-6249 c
408-342-3155 office

Mortgage Update April 10, 2009

The big news this week was Wells Fargo announcing that earnings a positive number for the 1st quarter of this year to the tune of 3 billion dollars. The was largely due to high mortgage origination volume and also some profit taking by the bank. The mortgage bonds improved big time this past quarter, and the lenders have dropped rates as a result. But at the same time they are taking fatter profit margins per deal because the demand for loans is so high, they can price in more profit per deal and still have more than enough business. Additionally, a major reason that earnings were higher for them this past quarter is due the change in “Mark to Market” accounting earlier this month. I think we will see a positive trend here with other banks major US Banks as a result of the change in Mark to Market accounting. The bank also went on to say that the Wachovia acquisition is exceeding expectations.

In other news, Initial Jobless Claims were reported at 654,000, still a bad number but better than expectations. The Bank of England left their benchmark interest rate steady at a record low of 0.5% today and said it will continue to buy government bonds in an attempt to keep the UK from falling into a deeper recession. This is more good news for the global financial system.

The market is closed today for Good Friday. We’ll be around this weekend. Gave a good one!

Tony Guaraldi
Mortgage Consultant

Santana Row Loft for RENT

FULLY FURNISHED LOFT FOR LEASE: Perfect location A-2 floorplan loft with a large master bedroom suite upstairs, including stackable washer & dryer, deep soaking tub, walk-in closet, and bonus alcove perfect for an office. Downstairs is a 2nd bedroom area with half-height walls - very nice for guest bedroom or roommate situation. Large 1/2 bath on ground floor, wonderful kitchen with granite counters - views of Santana Row - facing Taryn Rose store and above H&M - very unique additional parking downstairs - one assigned underground parking space plus AN ENCLOSED ONE CAR GARAGE IN THE UNDERGROUND PARKING GARAGE - perfect for tons of storage or to completely secure a high end vehicle. Offered at $2,450. Available June 1, 2009. Call me for an appointment 415-269-6249