Monthly Archives: December 2011

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.

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.

Finding Off Market Commercial Real Estate Deals

Please note that we work in the Los Angeles, CA area and are no longer active in sourcing national deals. However, we’re always help with investment advice if warranted. 

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Believe it or not, it’s rough out there for commercial real estate investors. The amount of time some buyers spend analyzing deals is more than they spend at their real jobs. Day after day, I meet more buyers who are absolutely against looking at anything on the market. If it’s already been on LoopNet, they’ve “seen it” and completely disregarded it. There’s the problem, though. They’ve “seen it”…meaning they looked at the price, location, unit mix, read a few words of the description, and MAYBE called the agent and said “DO YOU HAVE ANY OFFERS?!” and once the agent lied and said ‘yes’, they gave up and moved on.

It’s no wonder you have all these brokers running around asking each other for off-market deals or “pocket listings”. When nothing on the market seems reasonable, it’s time to hit up the people who DON’T actively want to sell. That makes sense, right? Nope.

In a perfect world, listing agents who put their listings on sites like LoopNet would 1) price it correctly 2) be descriptive 3) sufficiently inform their clients. Also in a perfect world, someone who claims to be a savvy apartment investor would know that everything is negotiable to a certain extent, including price. I get a kick out of the guys who, no matter how high of a CAP rate they’re getting, will insist on offering $100k less. “Property’s listed at $1m? Deliverable at $900k? I’ll offer $800k.” This isn’t the right way to make strategic investments in multifamily properties.

I’ll use a previous client of mine as a case study to show you how my father and I successfully find deals that make sense for our investors AND sellers. We used all the tools and resources available to give our client the technical data, facts and ideas necessary to make the most educated decision possible.

First, we’ll identify their buying needs: In this example, our client came to us with $2million that he needed to invest. His main objective was to gain cash flow and build equity in an appreciating asset that he can cash out in a few years. He had a steady job, paid off home, and was generally in great financial shape. He saved up this capital over the course of a decade, so he was naturally very careful of any risky investments. He decided real estate was the way to go and even did quite a bit of research on his own…even went so far as to get on LoopNet and start calling on the deals that were on the market in his neighborhood.

Clarify market knowledge: It’s always challenging when a client comes to you reciting things they heard their realtor friends saying about the commercial real estate market. That’s because 99% of it isn’t true. “My sister’s realtor friend told me people are buying apartments  in Montrose for 20 cents on the dollar!” No. “But I read online that you can make 15% on your money in apartment investing.” Hmm.

So, we spent about half an hour bringing him up to speed on market metrics (CAP rates, IRRs, vacancy rates, etc.) and what the current market conditions were like in the area.

Set reasonable goals: We set reasonable goals for the local markets here surrounding Glendale, CA that we would aim to achieve; 7% CAP, 10.5 GRM, 10% IRR, ~$130k/unit. If you don’t know what these metrics mean, well…don’t worry about them. Basically, we wanted to accomplish a reasonably profitable investment rather than try to find a “steal of a deal” and be stuck with problems.

Deal-searching: Yea, he’s seen every apartment building for sale in Glendale, CA  on LoopNet all right. He even knows each on-market property’s address and physical description by heart and he’s not happy about any of them. When we put the LoopNet results page on the screen in front of him for North Hollywood apartment buildings, he started going down the list one by one saying “this one’s great but not worth it, that one looks like a dump, this one’s empty.” We explained to him that the “price” on listings aren’t like price tags on stuff you buy at the store. You can negotiate. In fact, there are quite a few agents out there who specifically over price their listings because they’re used to being low-balled. Also, every property is being sold for a reason. Leveraging that information could be very lucrative in this business.

Naturally, he wasn’t content with what was on the market no matter how low we negotiated some of the deals. We had literally talked each seller down by at least $100k off of each listing. Our stubborn buyer still wanted to see more. We developed a method which would help us target off-market sellers (and yes, I’m totally giving away my secrets by saying this but I must warn you…no one does it quite like we do.)

  1. Foreclosure Records: filtered and searched through Notice of Default and Notice of Trustee Sale records (or properties that are in foreclosure).
  2. Expired Listings: pulled a list of all properties that match our criteria that were on the market in recent years.
  3. Target Search: went through my database of apartment buildings and found properties that match our criteria but are also owned by elderly retirees and have no debt/depreciation left on them. Why? Because older investors who have managed and dealt with their apartment buildings for decades are going to love the idea of exchanging into a NNN fast food restaurant for more cash flow and no hassle. =)
  4. Contact Property Owners: After all of that, we had 12 off-market properties to work with, all of which were in awesome locations and had great potential to add value. I contacted every single owner directly and had a brief conversation about their investment, told them what I was trying to accomplish and suggested letting us do a property valuation for them, free of charge. Only four of them agreed to have their property valuated by us. One out of four of those owners actually decided she would very much love to get fair market value for her building because her home was also in foreclosure and she needed money fast in order to save it. We put the deal together literally over-night and opened escrow the next day.

Boom! Our picky buyer acheived/surpassed every single one of the target goals and thanked us over and over again. This is what we do for our clients. Sure, some of our clients can probably just do it themselves if they really wanted to. However, the advantage of using Verdugo Properties as your commercial real estate brokers in the areas surrounding Glendale, CA is that we’re extensively trained and experienced in surgically orchestrating and executing transactions just like this. No matter which product type you’re into, we’ll achieve the same result over and over again; success.


Why Glendale CA Commercial Real Estate is the Most Valuable Property in the World

Glendale CA commercial real estate is among the most valuable property in the world for a variety of reasons, with one of the primary reasons being its location. The Los Angeles region attracts investors not just from across the nation, but also from all over the world. Its location affords it an inviting, comfortable climate, which serves to attract a broad range of people to the area, offering a diversely skilled workforce to regional businesses. All in all, commercial real estate in this region holds significant potentials, unlike any other area in the nation.

Glendale, California, is a suburb of the city of Los Angeles that has grown and developed its own identity. Its convenient commuting proximity to Los Angeles is part of what has spurred Glendale’s commercial growth. It is now among the 25 biggest cities in the state, and has a great deal of commercial activity in its own right, in addition to being conveniently located for those who work in the city of Los Angeles but prefer to live somewhere a bit smaller. Those people enjoy having local places to do the business of daily life, a contributing factor to the increase in value of Glendale’s commercial properties through the years.

Southern California has been drawing people to the area for a full century. The state has lived up to its golden opportunity reputation again and again during that time. While property values rise and fall during the short-term, just like the price of gold and other things, when looking from a long-term or historical perspective, Glendale CA commercial real estate retains its value. As an investment for the long-term, commercial real estate in this part of the state has already demonstrated its solid performance and can be expected to do so in the future.

Throughout its history, California has shown its ability to adapt with the times, not just on a social or political level, but also in economic terms. This part of the state has attracted industries that have influenced the world, not the least of which is the entertainment industry. Commercial real estate potentials in this region hold great promise for those who are able to take advantage of the numerous opportunities to be found. Deals abound for those with the necessary liquidity to move fast, and credit qualified individuals will also find lots of great deals in their price range. Ask a specialist in Glendale commercial real estate today about opportunities that are right for you.

You need expert advice to sell Apartments in Burbank CA

As most people know, the real estate market in this region has undergone some significant changes since the housing market boom and bust. Because of that, when trying to sell apartments in Burbank CA, it is best to consult with an expert in local real estate. That expert advice from a person familiar with the ins and outs of the local market can make a real difference in how quickly a sale is made and how good a price is achieved. Indeed, those working in the local real estate market may already have a list of people looking for apartments in Burbank CA.

People seek apartments in Burbank CA for a variety of reasons, such as its proximity to downtown Los Angeles and the broad range of employment opportunities in the local area. In addition to job opportunities, there is also public transportation available to ease the daily commute, for those not enthusiastic about driving in the region’s notorious traffic. Because of these and other local conveniences, there is significant movement in this real estate market, despite the challenges experienced in recent years in the overall market.

According to Realty Times, sales in this area of the state are expected to continue to increase into 2012, though market movement can be expected to occur in stops and starts, rather than in a smooth upward motion. A notable element of the action in the Burbank local real estate market is that the number of cash deals has been increasing, as opposed to those resting on a mortgage. Seeking expert advice to sell apartments in Burbank CA can help you to take the best advantage of these current trends in the local market.

Notable for the number of neighborhoods that still retain that small town feel, even with downtown Los Angeles less than 15 miles away, Burbank has a lot to offer home seekers. The fact remains that, whatever the economic circumstances; people still need places to live. Apartment sellers have an advantage over those seeking to sell houses, and that advantage is cost. Apartments are generally the more cost-efficient option, from buying to maintaining to day-to-day energy costs. Combine those natural selling points with expert knowledge of the local market, and you can expect to soon find the right deal for you.