URGENT BUYER NEED: California Multifamily 100+ Units

Fellow brokers/investors,

We’re working with a group who is IMMEDIATELY  looking to purchase an apartment complex of 100 units (or more) in California. Here’s some more info:

- 100+ Units

- 8% CAP minimum

- Value-add opportunity preferred

- Max $90k per door preferred

- Working closely with private lender  - approved borrower!

- SEND ALL RELEVANT DEALS! george@verdugoproperties.com

Call George if you think you may have a deal that fits. (818) 400-7557

“Is It Time To Refinance My Apartment Building?”

Here’s a letter we received from our trusted commercial loan expert, Dennis Dishaw of ACI Capital, talking about the favorable conditions for people looking to refinance their apartment buildings:

“Over the last few months we have seen the “Fannie Mae” 10 year fixed rate remain in the 4% range.  That means today (11/30) you can get up to 80% LTV fixed for 10 years at 4.40%.  Want lower?  Take their 7 year rate at 4.13% today.  Currently “Freddie” is offering an ARM as low as 3.10% with a max note rate of 6.5%.  Can it get lower than this?  Your loan has a prepay penalty that doesn’t expire until next year?  Add the fact, that FNMA offers extended rate locks at better pricing now and using this option gets you today’s low rates for a 2012 close.  Loans under $3 million are priced higher but are still in the low 5% range.

We heard the Fed say over the last year, that they would do everything they could to avoid a double dip recession.  They are keeping rates very low for that reason.  Lenders are reading that rents have stabilized for apartment units nationwide as have values in many markets.  A few banks are approaching FNMA pricing also.  This adds up to more confidence for lenders and consequently, lower pricing.

The unspoken benefit of a lower rate is lower payments.  Putting a number to the new payment tells the investor if the time and cost of a new loan is worth the effort.  Even with a 5.5% rate now, a new rate of 4.4% on $4.0 million would reduce the annual debt service by over $32,170.  Smaller loans have slightly higher rates but the effect is similar.  On an existing loan of $1.1 million at 6%; the new payment at 5% would save you $8,200 per year.  One final issue to consider is that interest rates will surely rise in the future.  An existing loan at these rates will be very attractive when it comes time to sell.

One thing is sure.  New loan requests to refinance will not come to the table with a higher rate!  We recommend that you look at your existing portfolio to see if you can maximize your income stream by lowering existing debt service.  ACI is happy to provide a detailed quote in advance to help with this decision.”

Off-Market Buyers’ Criteria

Friends & Colleagues,

Contrary to popular practice, we spend just as much time finding quality investment opportunities for our buy-side clients as we do marketing assets for sale for our sellers. Once we’ve qualified our buyers, we exhaust every resource and method available to dig up the deals that make sense for them.

Here are just a few of the things we’re currently looking for on behalf of our clients:

- Medical Office Building for sale in Santa Monica (90404) up to $2m.

- Apartments in Glendale, CA (6-14 units, above Glenoaks preferred but not required).

- Apartments in North Hollywood, 10-20 units, value-add opportunities, South of Magnolia.

- NNN Fast Food anywhere in the LA area.

Buyers are qualified and ready to move ASAP.

If you or your client have something that might be of interest, please send a quick outline to george@verdugoproperties.com .

Thanks!

Note: This post will be updated with every new development.

The Trustworthiness Of Prospective Tenants

A few days ago I stumbled upon this article in the NY Times and it got me thinking about the different ways some of my clients (and myself) pick the best possible tenants to rent apartments to in the Glendale area.

The article obviously talks about how credit reporting agencies are essentially changing the substance of their reports to better identify low-risk and trustworthy consumers. Now, a person’s rent payments, bounced checks, broken leases and such will have an impact on their credit score.

Why should an apartment owner care?

With the onslaught of foreclosures and bankruptcies that took place over the last couple of years, many former homeowners are left with damaged credit. Most of them were forced to rent somewhere, but had to get “creative” with signing a lease because most landlords won’t accept someone with the amount of debt they have. The changes being made to credit reports now will help landlords identify the good tenants from the bad tenants without wasting much time.

For example, a young lady I recently showed an apartment unit of ours to in Glendale, CA had absolutely terrible credit stacked with delinquent accounts, huge debt and so on. She also mentioned that she’d be breaking out of her lease to rent the unit because her job simply wouldn’t cover her rent there. On the flip side, I had an older gentlemen who had just been foreclosed on and suffered through a tough divorce from his wife of 30 years. His credit score was also butchered, but it was because of his foreclosure and bankruptcy. He had the same decent job for the last 10 years and was making more than enough to cover rent. So, who’s the obvious winner?

We’re going to be dealing with “bad credit tenants” for years to come because of the financial situation. That just means we’ll have to find the honest and trustworthy ones to work with in order to keep our investments in the green.

What other leasing challenges have you faced as an apartment owner/manager?

Verdrugo Properties can Guide you through Apartment Short Sales in Glendale CA

Apartment short sales in Glendale CA can present a challenge to those inexperienced with the process. Given the typical short sale situation, it is a good idea to consult with an experienced real estate team to make sure that the best deal possible is achieved. Verdugo Properties has the experience and expertise to help you navigate short sale complexities, helping to ensure that everything goes as smoothly as possible. After all, they deal with short sales regularly and are more than familiar with procedures and requirements.

Glendale is a bustling place, conveniently located between the San Gabriel and the San Fernando valleys. With the wealth of regional businesses and industries in the area providing numerous employment opportunities, and a well organized public transportation system, Glendale is an attractive residential option for a broad range of people, including those seeking specifically to deal in the apartment short sales market. That helps keep activity in the real estate market moving, despite the difficulties still being experienced in other parts of the state and the nation as a whole.

There are excellent opportunities for both buyer and seller in the specialized market for apartment short sales in Glendale CA. Buyer advantages, aside from local employment opportunities and commuting options, include excellent schools, comfortable climate, regional cultural entertainments, and a host of other quality of life enhancing pleasures and conveniences. And, for sellers, those qualities that draw so many to the area mean interest and activity in the real estate market, which translate into sales potentials. Because homes are in demand, short sales have the opportunity to be not quite as short as they would be other places.

With all the positive potentials of the short sale market in Glendale, there are still pitfalls for those unfamiliar with the short sale market or its processes. Buyers and sellers can both benefit from the experience and expertise offered by local real estate professionals. The Verdrugo Properties real estate team is committed to ensuring that you have access to the best short sale opportunities in the area and that the complexities that sometimes arise in these types of sales are managed as quickly and smoothly as possible.

Fast Food Investment Properties in CA are priced to sell Right Now

Fast food investment properties in CA are attracting attention from all over the state and around the nation. While the struggling economy has had a slowing effect on mid range and high-end restaurant revenues, the value priced fast food industry still enjoys brisk trade. Because of that, these food venues have attracted the attention of investors. Fast food is a business option that offers a sense of security to would be small business owners, appreciating the potentials in today’s market conditions. However, commercial property of this type is best chosen with the assistance of an experienced commercial real estate professional that is familiar with the local market.

That oft stated bit of real estate and business wisdom – “Location, location, location!” – is especially true when considering investing in fast food industry related properties. Take care to research carefully and to double check the experts when you can. Get multiple professional opinions on property values and potentials. Ask questions outside of the commercial real estate realm concerning vehicle and foot traffic in the area and about other details and statistics that could impact business success at the property. The potential for success at the site will certainly affect property value, making these factors important considerations.

Local chamber of commerce organizations can be a valuable source of information to consult when considering which region of California to seek out commercial real estate properties in. When choosing from the various opportunities for fast food investment properties in CA, you’ll want to make sure to include local, community-based real estate professionals in your circle of inquiry, as well as the larger realty companies. Basing your final decision on multiple data inputs and perspectives is smart business, and will help ensure that you find a property that meets your specific investment needs and goals.

Many people are looking to investments that feel safer than the volatile stock market and similar, less tangible types of investment. Property is the classic comfort investment in economically unsure times because it is a tangible, real asset. It’s been that way for years and years, even with market fluctuations. If the time is right for you to consider making an investment in California fast food properties, contacting commercial real estate professionals in the areas you are considering is a great way to start the research process.

Office Buildings in San Fernando Valley offer more than Just a Good View

There are many reasons that office buildings in San Fernando Valley are great commercial real estate options. Naturally, the comfortable climate and the natural beauty of the region attract many to the area, but those are far from the only features that keep the area’s commercial real estate market active. The San Fernando Valley region is home to numerous types of business and industry, and could be considered a regional center of commerce, something that local and regional officials work hard to preserve and maintain.

This business-friendly region makes good use of resources for targeted commercial development, working hard to attract even more businesses to the area. That is a positive for the overall economic health of the region, as well as a plus for San Fernando Valley commercial real estate. Those types of activities help to stimulate movement in the commercial real estate market, offering advantages for both buyers and sellers of commercial real estate. Economic redevelopment efforts make the area an attractive place for business owners and real estate investors to buy.

Office buildings in San Fernando Valley economic development regions do come with opportunities that make it worthwhile to spend some time with local commercial real estate specialists. It is typically the insiders on the local scene that can provide the best information on commercial real estate opportunities. Checking with the local chamber of commerce can also provide information on which commercial areas are most active, offering further insight into the local commercial real estate market. If you’re considering commercial real estate in southern California, the San Fernando Valley region should be among your top areas of interest.

The San Fernando Valley is a thriving region, thanks in part to its diversity, both in terms of population and businesses. Because of this, areas in and around the San Fernando Valley have been more fortunate in terms of overall real estate market activity than other parts of the state and the nation have been. Commercial brokers in San Fernando Valley areas have a positive outlook on the future because of the region’s economic resilience. With that in mind, now seems like a great time to investigate the potentials and possibilities that the San Fernando Valley real estate market holds for you.

Coming Soon: Realtor Falls Into Foreclosure To Understand Its Effects

Okay, I’ve got a confession to make!

I’ve been keeping a little secret for the last year or so and thought it might be time to finally give people a chance to hear this first-hand. In the next couple of weeks, I’ll be releasing bits and pieces of a story that you may find interesting.

My father has been a real estate broker for well over a couple of decades. He’s gone through the different cycles, he’s experienced different market climates, he’s even had rough financial times himself. So, when the focus of both the residential and commercial markets became foreclosures, bank-owned property, REO and so on, we were struggling to find a way to help the people who needed our services desperately. Time and time again we’ve seen friends, clients and sometimes even family members entrust their foreclosure prevention to people who had little or no knowledge of the foreclosure continuum. Ultimately, their homes/properties couldn’t be saved because of the lack of expertise in truly solving foreclosure problems. We wanted to become the best foreclosure and short sale experts in the Glendale, CA area.

So, in an effort to better understand the needs and problems of these potential clients, my father decided to join them in default. It wasn’t too hard considering business was extremely slow at the time and he had no way of acquiring any new prospects. Also, I had just begun working at Marcus & Millichap, where the business was really no different. Slowly (and naturally) he slipped into what has now become the most eye-opening experience of his life.

The story outlines everything from how he struggled financially to how it impacted his personal life with friends and family. It’s a true, uncensored, and down-right raw account of what it’s like going through foreclosure.

We’ll be releasing the story through this blog, but will eventually have a brief video summarizing it all. For the easiest way to be reminded of this when the story is published, please subscribe to our blog through the e-mail field on the right side of this page.

The Advantages of Investing in Non Rent Control Apartments in Burbank CA

Burbank offers many conveniences to potential residents, making it one of the more sought after residential areas of the region. That is part of the reason that the real estate market is making a comeback in this region of the state. Less than 15 miles from downtown Los Angeles, it offers a great location for those working in LA and the surrounding area, whether the daily commute will be made via driving or by using public transportation. The desirability of living in this region is just one of the advantages of investing in non rent control apartments in Burbank CA.

Apartment investments in Burbank CA have the opportunity to offer a solid return on a person’s investment, because there are so many reasons why people seek homes in this area. All of the conveniences of being near a big city are available — employment opportunities, excellent schools, museums and other cultural experiences, fine dining, shopping, high quality medical care, etc. — yet many Burbank neighborhoods have managed to keep a hold of that small town atmosphere. Burbank is a place that people like to come home to at the end of a busy urban day.

People invest their money because they want to earn a reasonable return on their investment. And, the primary advantage to investing in non rent control apartments in Burbank CA is the freedom to determine what that return will be for yourself, rather than being limited by rent control agreements. It’s not at all unreasonable to want to have as much control as possible over your investment and it’s potential. According to recent statistics from the Realty Times, apartment vacancies are decreasing in the area as people continue to flow into the Burbank area looking for places to live.

Another advantage to making an investment in apartments in this area is that many people are choosing to downsize. Older couples, for example, often prefer to sell their homes after the children are grown to free themselves from the costs and hassles associated with home ownership and maintenance. This is just one of several demographic trends towards apartment living that can be of benefit to those making apartment investments in Burbank CA. Talk to an experienced local realtor and see what opportunities Burbank holds for you.

What’s Your Point Of View? | Commercial Real Estate In Los Angeles

Just a quick update…

We’re  in the process of creating a collection of articles, photo-journals, videos, and reports to give our clients and the general public a more in-depth view of the problems, challenges, achievements and opportunities in the real estate investment market here in Los Angeles, CA. Yes, this has been done before. No, it really doesn’t matter to us.

HOW YOU CAN HELP US HELP YOU:

We’re looking for the following:

• Journalists, photographers and film directors: we need people who can help us compile the ridiculous amount of research and information we’ve gathered into valuable content.
• Your Stories: if you or someone you know has an interesting problem, challenge or strange real estate investment deal story they’d like to share, we’re listening.
• Investment Data: if you currently own commercial property (apartments, retail, office, industrial, mobile homes, etc.) we’d be happy to take a look at the performance of your property. In return, we’ll supply you with a detailed investment valuation report showing you what your property is worth in today’s market and why.

 

For more information or submission, please e-mail me at george@verdugoproperties.com . Thanks for reading!