Raoul Amescua

Well it’s up to you and your investment goals…

As we know real estate investors are return and cash flow driven and most investors like to diversify their portfolio. I just heard from a friend of mine who works at a firm that under wrote the latest CA Bond Offering. He says the return is about 1.6% annualized. He also said investment length is approximately 8 months. Granted not a whopping return but for tax free, maybe alright. And that’s really all I know.

I’m not a securities dealer, nor endorsing this investment in any way, but just sharing what I heard. Sort of like if you heard about it at the barber shop or nail salon.

Thought this would be something different and interesting to share, than the usual commercial real estate stuff.

We all know the best way to exist and sustain yourself in the real estate industry is by receiving a steady flow of referrals. Usually a lead from a valued referral source is going to be much better than any cold call lead. You approach the referral lead with more confidence and self-assurance than you do a cold call. It’s just human nature.

Being a commercial real estate broker, I realized that it is an absolute necessity to align myself with solid strategic partners who will bring value to my clients. Since my clients are generally businesses owners or top level executives I have created a team of business to business service providers that range from insurance, pay roll, human resources, IT, telephone and data support, logistics etc. The benefit is that my strategic partners and I can all service the same client and bring enormous value to the client without stepping on each others toes.

For example, I have amazing insurance partner, Patrion Insurance, a full service brokerage that provides all lines of personal and commercial insurance. From home, auto, life health, all forms of business, group health and commercial property insurances They do it all, so if one of my clients, or even a friend or family member ask me about insurance or I get the hint of an insurance need, I automatically refer them to my strategic partner, Patrion Insurance. When they have a client or know of someone who has a commercial real estate need, they send the referral my way. It’s a win-win!

Needless to say they always make me look great to my clients, which puts me a step above my competition. Because who else out of my competition is out there caring enough to bring in a team of valued partners to assess my clients business so that my client can be better set up for success.

Here’s the secret to keep your strategic partners happy so that they work for you… You can’t be selfish. You have to be continually conscience of your strategic partners and send them referrals even if there’s not a deal or payday in it for you.

This benefits you in two ways: 1) the obvious is that your strategic partner sees that you sent them a referral when it wasn’t a transaction you had a financial interest in, so they are more motivated to work hard for you and send referrals your way. 2) the person you referred now realizes that you took the time and energy to really care about their situation. That now makes you a valued resource to them, and their eagerness and willingness to spread the word about you will increase 100 fold.

So think about what kind of strategic partners would be best to connect with, who would bring value to your clients. Remember that your strategic partners have a list of clients that you don’t, who they can send your marketing material out to, or email blast on a regular basis. They will maximize your exposure more than you could ever do and for a fraction of the cost. These are the relationship that will grow your business. And remember it’s a two way street.

I'm sure every agent out there as dealt with more than one buyer and/or investor who wants to a steal a home. They think that they can offer $20,000-100,000 less than the asking price. They say they know of someone who bought a house for a song, but they can never give you enough details so that you can research its varacity.

This is not to say that the professional trust deed buyers or buyers at trustee sales can't or aren't getting good or even great buys, but these are individuals or groups who are solely dedicated to this pursuit. So when the new buyer or casual investor seek out a "steal" they really have no idea that for them it's not to be had.

Today the actual "steal" is in the home price. Currently in most markets home prices are hovering around 2002 pricing. That's a great buy on a home when you consider the massive appreciation that took place between 2003-2007.

Buyer's today have a hard time recognizing and accepting that the discount is reflected in today's home price. Depending on the market, most home prices listed are 35-50% off from what they were at the peak. Buyers think that they are going to get the deals (rather steals) that they heard about in the 90's recession. But what they fail to realize is that level of transparency is much higher today than it was in the last recession.

For instance, the internet was barely coming online and less than 10% of the population had access to it. Today all professionals are online and seeing what is happening with real estate in their market at a moments notice. The speed that information travels helps keep the housing market priced accurately, sort of like the stock market, but not nearly as efficient. So if consumers and even some agents could realize this it would make the offer and acceptance process much easier.

The bottom line... Buyers can't steal homes. They have to pay fair market value just like everyone else.

Best Happy Hour Places: Deals on food and drinks in Glendora, La Verne, and Covina

In the real estate biz most of us are pretty social and we like to enjoy the good life, at least as often as our wallets let us. So here's a few local gems around that offer great deals on food and drinks and they won't break your pocket book. More importantly being an independent contractor I'd rather give my money to another independent business owner than to a chain restaurant.

Next door to my office in Glendora is Clubhouse 66, recently remodeled and formerly Chile Peppers, between 3-6pm you can get 1/2 off the bar menu, I suggest scrumpuous Tijuana Tacos or Margarita Pizza. Drink specials: $2 for Domestic and $3 for Premium draft beers; 1/2 of well drinks; and $2 of wine and premium cocktails. Plus Clubhouse 66 has a huge outdoor patio that is great for kicking back year round.

Across the street from clubhouse 66 there's the local classic, the Golden Spur Steakhouse that just underwent remodeling. They even offer escargot during Happy Hour from 3-6pm.

Ladies you will love this place... In Uptown Glendora, check out The Parlour if you want a more intimate and swankier vibe. They have a huge wine selection and great collection of european beers, and the food is out of sight! Happy Hour is from 4-6pm.

In downtown La Verne on 3rd Street, Caffe Allegro is a fantastic date place. Great food, intimate lighting and setting. Guys if you take your girlfriends or wives here the mood will be set, since the place feels like your dining in a european cafe. Happy Hour is from 4-7pm where you can get half of beer, wine and appetizers. Try the Clams & Mussels in red wine sauce or the baked artichoke stuffed with shrimp and cheese with a touch of alfredo sauce. FYI - During the Holidays and winter months you have to try the butternut squash soup... You'll thank me later.

Azo Vino Wine Bar in downtown Covina is one of my favorite places for too many reasons to list. Check them out on Thursday nights when they do their wine tasting flight nights. For $15 you get 5-6 tastings, plus a cheese plate that comes with crackers, grapes and other snack stuff. The owner, Galen Metz, is always there and is an amazing guy, he'll give you first class treatment, while you lounge in his 4,000SF of wine bar, bottle room and art gallery. You can also bring in outside food if want. Hopefully I'll see you there on any given Thursday!

If you want to get the most bang for your buck, in downtown Covina on Citrus Ave you can to the legendary Rude Dog Bar & Grill. Happy Hour is from 4-6pm and starts back up at 9pm. The Rude Dog or RD for short has been recently remodeled and expanded, so when you walk in you'll find a huge "U" shaped bar, plenty of flat screen TV's, and a great jukebox. The Draft Beers are huge, the drinks are stiff, and as far as bar food goes it's second to none. Stick to the domestic draft beers and world's best patty melt. You'll leave feeling full and happy for under $20.

So go check out some of these spots and hopefully we'll run into each other. Bring your colleagues and friends and maybe you'll get to network too, enjoy!

Businesses Taking Advantage

Granted the ecomony is in the tank, job growth is pretty much non-existent and we all know how the real estate market is, but in every down economy there are always those who prosper. Right now commercial real estate buying and leasing rates are at bottom. Most economists and industry experts say that the commercial real estate market has hit the bottom of the trough. With buying and leasing rates being at or below historic lows it's hard to think pricing will drop much more.

Believe it or not, there are a lot of healthy businesses out there, who have a significant amount of cash on their balance sheets. Many of these companies tightened their belts by downsizing, streamlining expenses and pulling back on marketing, and all the while still maintained a steady stream of income. So despite the economy their are still a number of well positioned businesses and individuals out there.

With Commercial Real Estate fundamentals slowly coming back into the market, right now is a perfect time to take advantage of commercial real estate pricing. There are several ways businesses can take advatage of these opportunities and improve their bottom line. We can look at indusrtial properties, like warehouse/distribution and logistic facilites as an example. Currently in Southern California there is 10's of millions of vacant SF of industrail property space. Meaning there's an abudant supply of space, and not enough demand.

So a healthy business, like a distribution or manufacturing company can lock in a long term lease (5-10 years) and save a bundle now, and over the long run especially when the lease rates go up back to historic norms. Today a industrial property lease rates are at approximately $0.33/SF +/-. A significant discount from four years ago, when these industrail lease rates were around $0.75/SF +/- or higher in certain markets. Do the math on 100,000SF or 500,000SF, that's an enormous savings. Even a smaller business can take on space in the 5,000-25,000SF range for around $.40/SF +/-, and compare that to what they pay now. And at these rates you can get the cream of the crop industrial properties.

Now comes the question of quality... because that can have an direct impact on your business. Is your industrial property located in an strategic logistical area for your company's neeeds, does it have enough yard space, is it efficient, is athestically pleasing, and in an area your customers and/or vendors will feel comfortable visting? Because today for almost nothing you put your business in an industrail property that is best in class.

Being in close proximity to major highways and streets is important and can have a significant impact on decreasing your fuel costs. Does your builing offer optimal ceiling height? Because you pay for SF on horizontal plane, not the vertical. With modern racking systems and ideal ceiling height a business can optimize its need for industrial property space. For Example, a company that currently occupies a 100,000SF property with a ceiling height of 21FT, can use a building with 35FT of ceiling height and only need 80,000SF. Even in today's market that's a substantial savings.

The message: Businesses if you plan on being profitable and having long term presence, now is the time to take adavatage and secure your future.