Western Real Estate News

SAN JOSE, Calif. – First Statewide Realty property managers have released a list of common myths owners often believe about self-managing their rental properties. The list of myths, compiled from years of experience in the San Jose area property management business, can help save potential amateur investors the cost and frustration of trying to manage investment properties without the proper experience.

According to Jerry Garrity, owner of First Statewide Realty, the top 3 myths about self-managing investment properties are:

Myth #1: Self-managing investment properties saves money. In fact, numerous studies have shown that professionally managed properties return higher and more consistent cash flow.

Myth #2: Managing investment properties is an evening and weekends only job. In fact, managing rental properties is a full time job, and renters frequently require the attention of a property manager around the clock.

Myth #3: The private homeowner can find tenants just as easily as a property management firm. To the contrary, property managers often have waiting lists of renters and know how to screen for the best ones. This is key to keeping the rental occupied as much as possible.

Natalie McNany, a San Jose Property Manager with First Statewide Realty, says “While managing your own investment property may seem free, it’s certainly not hassle-free. The fact is, not having a professional do it almost always ends up costing owners and investors a lot more money in the long term.”

Property Manager Greg Garrity agrees. He says that most homeowners do not have the time to manage their own investment properties well.

“Between work, family and other responsibilities, the self-managed approach to property management usually ends badly with lost income and frustrated owners and renters alike.”

He says that professionals who work full time managing properties and developing positive relationships with renters are much more effective at retaining good tenants and keeping costs down.

Gayle Sabin, another of First Statewide Realty’s full time Property Managers, agrees.

“Because this is a full-time job for me, I am able to spend the time to build relationships with our clients and tenants. I know the properties, clients’ styles and tenants’ idiosyncrasies. I can anticipate problems and how to resolve them quickly and efficiently.”

As a result, Sabin says she’s been able to dramatically improve the bottom line for her clients’ real estate portfolios.

“Cash flow is king in this business. While homeowners can always self-manage their properties in an attempt to save money, the data show that more often than not, self-management hurts cash flow.”

Jerry Garrity says that his firm offers a free cash flow analysis to prospective clients to find out what their investment can return when managed by professionals.

“We encourage owners who have tried to go it alone to give us a call. We’re a friendly group of professionals and love to help our clients make money.”

About First Statewide Realty

Jerry Garrity’s First Statewide Realty is a seasoned expert in property management whose expertise has been featured in the Wall Street Journal and other publications. His Silicon Valley property management company specializes in managing single family homes, condominiums, townhouses and other investment property. Services are provided for all of Silicon Valley, including San Jose, Sunnyvale, Santa Clara, Campbell, Mountain View, Los Altos, Cupertino, Saratoga rentals, and Los Gatos.

The firm has been in business for over 21 years, and is a member of the Santa Clara County Association of Realtors, Silicon Valley Association of Realtors, National Association of Realtors, California Association of Realtors, Tri-County Apartment Association and National Association of Residential Property Managers.

Jerry Garrity
First Statewide Realty
20045 Stevens Creek Blvd.
Suite 2-D
Cupertino, CA 95014
Tel: 408-253-1000
Lic#: 01036982
Email: investments@firststatewiderealty.com
Website: http://www.firststatewiderealty.com

Los Angeles, Calif. – Albert Shilton and Blake Rogers of Charles Dunn Company’s West Los Angeles office closed a note sale of a 35-unit multifamily property located at 4620 Coliseum St. in Los Angeles, Calif. The 29,718-square-foot apartment building was built in 1954 and is 83 percent leased. The transaction value is undisclosed.

“There were more than 400 code violations on the property at the time of sale,” explained Shilton. “Along with the note, the buyer received a deed in lieu of foreclosure in a simultaneous transaction.”

Shilton and Rogers represented both the buyer, 4620 Coliseum St., LLC, and the seller, Pacific Premier Bank. The transaction was the second note sale with the same lender and buyer.

About Charles Dunn Company

Charles Dunn Company is one of the largest full-service brokerage firms on the West Coast. Established in 1921, the Los Angeles-based company provides a full complement of real estate services. For more information and office locations, please visit www.charlesdunn.com.

Irvine, Calif. – Brandon Case has been promoted at Keystone Pacific Property Management from associate community association manager to community association manager in its Irvine office.
“Brandon’s dedication to his team as well as his position have shown us that he will be a great asset to the communities he manages,” said Denise Bergstrom, vice president of association management of Keystone Pacific Property Management.
As community association manager, Case manages a portfolio of community associations located throughout Orange County.
Case holds a bachelor’s degree in business economics with a minor in sports management from the University of California, Santa Barbara.

A leader in the community association management industry for more than 28 years, Keystone Pacific Property Management specializes exclusively in the management of common interest developments in Southern California. Currently, the firm manages over 46,000 units in master-planned, condominium, townhome, single-family home, mixed-use and commercial common interest developments. Keystone Pacific’s clients receive the best care and resources as the firm is committed to providing superior community association services.

Keystone Pacific is one of the few local property management firms to have earned the Accredited Management Organization (AMO) designation from the Institute of Real Estate Management (IREM). In addition, Keystone Pacific is one of only 14 Accredited Certified Management Firms (ACMF) certified through the California Association of Community Managers (CACM®). Headquartered in Irvine, Calif., Keystone Pacific also maintains offices in Rancho Santa Margarita and Temecula, Calif.

For more information, please contact Keystone Pacific at 1-877-KPPM-INC (577-6462) or visit www.keystonepacific.com.

Los Angeles, Calif. – Bryan Glenn of Charles Dunn Company’s West Los Angeles office has closed the sale of a 24-unit multifamily property located at 916 S. Lake St. in Los Angeles, Calif. The value of the transaction is $1.2 million.

The 10,712-square-foot apartment complex was purchased and sold by private investors. Glenn represented the seller and Connie Kim of Coldwell Banker Commercial represented the buyer. The building was constructed in 1923 and is currently 92% leased.

According to Glenn, the seller was looking to reduce management responsibilities while the buyer found the low gross rent multiplier and attractive cash flow greatly appealing. The buyer plans to hold the property for future investment.

“This is one of a handful of older properties that has traded in this submarket recently based on an attractive price per unit and strong cash flow,” Glenn said.

About Charles Dunn Company

Charles Dunn Company is one of the largest full-service brokerage firms on the West Coast. Established in 1921, the Los Angeles-based company provides a full complement of real estate services. For more information and office locations, please visit www.charlesdunn.com.

The vast majority of land owners in Southern California have never given thought to using San Diego artificial turf as an alterntative to grass for their lawns, but they ought to. Using synthetic lawns can save a lot of moneyfor the average single family home. Larger commercial or institutional properties like churches can save even more.

Property owners in arid climates such as San Diego, California are saving large amounts of cash on water bills by having synthetic San Diego turf installed that doesn’t require water or weekly lawn mowing services. While owners incur a one-time installation and material cost for their investment, the returns are dramatic, with owners sometimes saving thousands of dollars each year on water and lawn care. Water bills often are reduced by 60% with the installation of synthetic grass.

Homeowners often are unsure if artificial San Diego lawns will look as nice as a real grass lawn, the answer is a resounding yes, as a result of the latest advances in artificial turf materials and installation practices. In fact, many times the artificial grass looks better than the real ones, because of its deep green color and natural appearance. With artificial lawns, the appearance of a natural grass lawn is preserved without the cost and hassle of water and maintenance.

There are many types of properties that can make a cost-efficient use of synthetics to reduce costs, like business parks and churches. Play yards are good places to use synthetics also, along with dog runs and putting greens. Property management companies can often suggest the installation of artificial turf to help their clients save money.

Oceanside, Calif. – Lee & Associates, one of the largest national commercial real estate providers with regional expertise, recently closed the sale of a 27.96-acre land parcel in the Ocean Ranch business park in Oceanside, Calif. The transaction is valued at $8.8 million.

Principals Matt Weaver and Rusty Williams along with Founding Principal Patrick Miller of Lee’s San Diego-North office represented the seller U.S. Bank. The buyer, Hamann Companies, was represented by Ross Grano.

Hamann plans to hold the bank REO property for future development as a built-to-suit or potentially for industrial spec buildings in the future. Lee & Associates generated significant interest and activity for the property, including eight offers, despite a depressed industrial market in San Diego County.

“Hamann controls most of the competing industrial land in Oceanside so this property fits perfectly into their portfolio,” said Matt Weaver. “We hope this is a sign for positive news ahead in 2011.”

About Lee & Associates

Celebrating 32 years of leadership excellence in commercial real estate, Lee & Associates is the largest broker-owned firm in the nation, with 41 locations across the nation including California, Arizona, Georgia, Idaho, Illinois, Indiana, Michigan, Missouri, New Jersey, Nevada, Texas and Wisconsin. With a roster of more than 600 expert brokers, Lee & Associates provides a wide range of specialized commercial real estate services. Additional information is available at www.lee-associates.com.

San Jose, Calif. – First Statewide Realty, a Santa Clara property management firm whose focus is serving San Jose, Cupertino, and other Silicon Valley real estate investors, consults with clients to help them retain positive cash flow on their rental properties through the recession.

Many property owners in the Silicon Valley have lost their real estate investments to foreclosure when renters in one or more of their properties moves out or stops paying rent. Jerry Garrity, Owner of First Statewide Realty, says that losing investment properties to the bank can often be avoided through more diligent property management.

He says the true expertise of a property manager shows most during a recession, because that’s when it’s most important to pinch pennies and squeeze as much cash flow out of an investment property as possible.

“Many San Jose property management companies were formed during good times, and they haven’t experienced an extended down market. What that means is that the investor is probably not getting the tight control over costs, pre-vacancy planning, vacancy avoidance, and other services that an experienced PM can provide.”

Garrity, whose investment real estate management business of over 21 years has weathered many different market conditions, says that his previous experience with down markets has played a large role in his clients’ positive cash flow.

“We pride ourselves on a very high-quality tenant screening process that experience has show gives us better tenants for our clients properties than other firms. As a result, our tenants stay longer, take care of the property better, and make their payments in a more timely manner.”

A property manger’s attention to detail during a recession becomes even more important than in other markets, because mistakes and inadequate oversight of a property can have serious consequences for the owner.

“We’ve seen properties go into foreclosure that could likely have been avoided with better property management oversight. So much of this business involves keeping a tight control on costs and being able to keep properties occupied with good tenants.”

He says that when property managers are lax in controlling costs, collecting rent, and keeping a property occupied and in good condition, the owner risks losing the investment to the bank when times get tough.

“Our job is to manage our clients’ properties to help them weather the uncertain financial storms.”

About First Statewide Realty

First Statewide Realty is a professional San Jose property management company specializing in quality single family homes, condominiums, town houses and other investment property in the greater San Jose metropolitan area. The Cupertino property management firm has been in business for over 21 years, and is a member of the Santa Clara County Association of Realtors, Silicon Valley Association of Realtors, National Association of Realtors, California Association of Realtors, Tri-County Apartment Association and National Association of Residential Property Managers.

Contact:

Jerry Garrity

First Statewide Realty
20045 Stevens Creek Blvd.
Suite 2-D
Cupertino, CA 95014
Tel: 408-253-1000
Lic#: 01036982

Email: investments@firststatewiderealty.com
http://www.firststatewiderealty.com

A lot of people talk about buying foreclosures when they consider the investment opportunities in the current market, but there is another largely unnoticed investment option that sometimes goes under the radar. It is the rental market.

What do foreclosures have to do with rentals? A lot, according to one San Jose property management company, but I’ll narrow it down to two major points here: Purchase price and rental price.

First, foreclosures affect the price of homes, which affects those homes’ investment potential. Second, foreclosures put former homeowners out into the rental market, which creates demand for rentals. These factors combined are bringing savvy investors out of the woodwork to participate in the investment opportunities that abound.

Few rental markets in the country are suffering, and that’s because more people than ever are needing to rent because they couldn’t afford the home they bought in 2005 at the peak of the last real estate boom. As a result, longtime San Jose property management company First Statewide Realty, in business since 1988, is saying that vacancy rates have decreased since 2010. This would appear to be good news for investors as the market seeks to correct itself from the bubble days.