• About Frank

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  • Frank Rizzi manages Bos Commercial in West Covina and has been in real estate since 1988. Since then, he has made millions for his investors over the last decade.

    With his team of experts, he has built a solid reputation as a responsive expert with in-depth market perspective of a local firm coupled with the sophisticated capabilities of a national company.

    BOS Commercial has positioned itself to handle every aspect of your commercial property
    investment whether it be purchases, management, leasing, renovations, or sale of your property.

Anytime Can Be The Right Time to Buy

Do you ever ask yourself, “is now a good time to buy property to make a financial profit?” I think that anytime can be a good time. What it depends on is the property. Some possible investments have been neglected, may need many repairs, or simply needed to be sold for one reason or another. That being said anytime can be a good time.

The real estate market moves in cycles meaning that it never stays too high or too low for a long. With a little research you can understand the real estate market in order to predict if now or later is a good time for you.  The Real Estate investor that always makes money is the one who makes it a habit of buy and hold. While it is true that their money is tied up it is equally true that a sluggish market or slow economy does not do them any harm. They simply have to hold on to the property and eventually when the upside of the cycle comes around they can sell it off. In the meantime they can continue to make money by renting or leasing such property. “Buy and hold” investors are very patient and they usually have more experience watching the market than short-term investors.  Those who choose the latter, are better at predicting the cycles. They know when they can expect peaks and valleys and they can plan their actions accordingly. They are much better at reading the signs and making the right buy or sell decision. Being active in the market for a long time also means that they have a thorough knowledge of what is available where, and they can move in and get working.

The Real Estate market is currently going through a sluggish period all over the world, apart from a few spots like Dubai and some locations in China (King, 2010). The bright side is because some properties are so low it may be the right time to buy! Remember, don’t wait too long if you are looking to buy ownership property instead of investment property then there is no point in looking at the market condition. Just go ahead and buy.

 

 

Take Care of Your Property, So Your Property Can Take Care of You

Whether you have been the property business for years or are just getting started it is important to understand the most basic principle… If you take care of your property so that it maintains value for perspective tenants. Lets look at a few ideas that can help you manage your property in order to avoid a future problem.

1. Raising the Rent

The cost of living goes up, so why shouldn’t it go up for your tenants? Maintaining the property rises and so do the taxes, it makes sense to raise the rent to keep the property in shape. Raising the rent will also bring a bigger cash flow down the road for perspective buyers down the road.

2. Check the Plumbing

Checking the Pluming is like making sure your ticker is beating right. Making sure the pipes in the home or apartment building are good will save you tons of money. Pipes bursting inside of walls, or water leaking, can cause major damage that will require ripping apart walls and doing extensive repairs. Make sure you have a licensed professional look at your pipes to be sure they are up to code.

3. Watch The Foundation

The easiest way to spot possible foundation problems is by looking around for big trees. The bigger a tree is, and the closer it sits to your house, the bigger potential it will invade the foundation. Another way to tell if there are foundational issues is by spending time in the basement. Big cracks in the floor or corners might indicate that the house is in need of some serious work. Let’s just hope it’s not too late.

4. Get Some Help

You can’t do it all by yourself. It is ok to ask for help from professionals, people in the field, and your counter parts. Hiring out to take care of some of the repairs is a concession you will have to learn how to make. You might not think it is cost effective to have someone come in to do the electrical work, but if you aren’t confident enough to do it yourself, then you will be making a smart investment by letting a professional handle it.

5. Keeping The Tenants in Line

Make sure that your tenants are respecting the rules  and are not causing more harm than good. You can never be too sure, or too careful, with your tenants. That’s why it makes sense to have your tenants sign a detailed lease. A good lease will have financial penalties in place for violating rules of the house or apartment.

6. Clean The Gutters

When it rains, the gutters are essential in moving rain away from the house. This keeps the windows and siding in tip-top shape, and it keeps the basement from flooding. This all adds up to great savings.

Over all, remember you have to put time and effort into something if you want to reap its rewares. If you take steps in making sure that the property checks out as a whole you will be saving time and money in the long run. It takes commitment and follow-through. But with the right steps taken you are on the road to a great investment.

 

 

A Few Tips for the Beginning Investor

Property investment has grown as a potential investment opportunity within the recent years. Lenders offering customized mortgage plans have helped increase the growing industry. Profitable investments on various properties have been recently associated with a positive return for past, current and future property investors. Rather than making a profit on the capital you invest, the use of mortgages allows profits to be made on the full property value with comparably minimal capital outlay.  Whatever reason you may have for investing, there are a few things you need to understand.

Depending on your future goals there are two general plans to follow to ensure the greatest outcome.

  1. Buy to Sell – Buying and selling investment property within the short term for profit.
  2. Buy to Let – Buying and letting to achieve a rental income and accumulate equity, normally over the mid to long term (Cowgill, 2010).

You have to make sure and realize which plan is good for you because property investment can be rewarding only with “care and consideration.” Take into account the location of the property you are looking into or invest in a current “hot spot.”

The property price must also be considered. Prices vary with various properties available at all levels of investment. any

A mortgage broker or lender can advise you on how much you can borrow to invest in property, along with any further costs or fees involved.

When you have a property price generated, you can search for suitable properties and undertake the essential research to minimize risk and maximize profit. Research is always a good way to go. There is an enormous amount of information at your fingertips, so use it! Communicate with people who are already in the business, get feedback from agents, consult with current investors to get their expertise and advise. While your doing your research keep track of the time, because while you are reading about the latest duplex, the triplex down the street could be in escrow. Don’t let an opportunity pass you by so keep an eye out.

Remember, this information is just a starting point, gaining a good perspective of your goals and aims and by not deviating from your chosen investment plan, you should form a solid basis for successful property investment.

 

Signs of Improvement for Commercial Space

Despite nagging double-digit unemployment in Southern California, shopping center owners in Los Angeles and San Diego are experiencing some of the lowest retail loan delinquency rates in the nation, according to analytics firm Trepp LLC.

Of the $13 billion in securitized retail loans outstanding in the Los Angeles market, $374 million was in some stage of delinquency in September (New York-based Trepp). The local delinquency rate was 2.88% compared with the national average of 7.13%.

The San Francisco-Oakland, Calif. market has the lowest delinquency rate on securitized retail loans at 2.2%. Trepp considers a loan delinquent when it is 30 days or more past due.

Signs of improvement in the struggling commercial mortgage-backed securities (CMBS) industry have lapped onto the shores of San Diego. Of the $3.1 billion in CMBS retail loans outstanding in San Diego as of September, $147 million was in some stage of delinquency. That puts the retail loan delinquency rate at 4.69% locally, down from 4.84% in August.

The California Employment Development Department found that the Los Angeles unemployment rate stood at an unhealthy 12.6% in September, well above the national 9.6% jobless rate.

Reis reported that after nine consecutive quarters of negative net absorption, community and neighborhood shopping centers in Los Angeles posted 65,000 sq. ft. of positive absorption in the third quarter. The vacancy rate dipped from 6.2% in the second quarter to 6.1% in the third quarter.

In contrast, the retail vacancy rate in San Diego rose slightly from 7.5% in the second quarter to 7.6% in the third quarter. But that rate for the Southern California city is still much healthier than the national average vacancy rate of 10.9%, notes Reis.

 

 

 

Cash Buyers Get the Best Deal in Southern California Real Estate

Southern California’s real estate market is looking pretty good, sales are up 5% over a year ago, and median sale price growth of 14%. Foreclosure resales still account for over a third of sales, and some of the best deals right now are being had by cash buyers (DQNews).

Buyers in Southern California are taking advantage of the low prices and low mortgage interest rates. The market is still skewed toward low-cost distress sales, but not by as much as it’s previous numbers.

A total of 20,476 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 33.3 percent from 15,359 in February, and up 5.0 percent from 19,506 in March 2009 (MDA DataQuick of San Diego).

“It’s a reflection of just how grim things got, that we’ve now had almost two years of sales gains and we’re still 18 percent below the sales average. The market won’t rebalance until mortgage-lending patterns normalize, and that’s just not happening yet. Some of the best deals out there right now are happening when the buyer comes in with cash,” said John Walsh, MDA DataQuick president.

In the mean time, lending for many low-to mid-priced homes is still readily available; Government-insured FHA loans accounts for 38.6% of all mortgages used to purchase property in Southern California (DQNews).

All this does not mean that foreclosure activity is low, it is still high compared to historical standards but it is overall lower than peak levels. Overall, financing with multiple mortgages is low, down payment sizes are stable, and non-owner occupied buying is above average, MDA DataQuick reported.

For those looking to make an investment in residential real estate, now would be the perfect time to invest.  We haven’t seen buying opportunities like this since 1994.

 

 

Inland Empire Market Improves

Due to more employment opportunities in the Inland Empire, vacancies have improved this year since 2004 (Marcus & Millichap). Multifamily vacancy is projected to decrease 50 basis points to 7.5%, following a 100 basis point jump in 2009.

Communities far from major employment centers will continue to struggle with high vacancy rates. These communities will continue to offer concessions. Still, as renters reduce their living expenses by moving into the discounted complexes, apartment vacancy rates to the east and in the high desert region are expected to flatten in the coming year. Because of past financial downturn owners have not been able to operate their investments to their optimum potential.

Smaller, opportunistic buyers continue to explore outlying areas, where rent rolls have been slow to stabilize and owners cannot meet debt obligations. “Over the last 12 months, assets containing more than 100 units accounted for 11% of sales, compared with less than 4% a year ago. With the median price for larger buildings falling 20% during the past year, more major cash investors will emerge in search of attractive deals” (NREI).

Economists are reporting that more than 160,000 positions were cut locally over the past three years. Now it seems as though employers will be increasing payrolls in the coming year by at least 0.4%, or 4,300 workers, which should definitely shed some light on individuals who are still expecting concessions.

 

 

Typical Problems of HOAs

Are you advised ahead of time that an HOA meeting is coming up? Do you receive financial statements which explain how the assessments you pay are being spent? Are repairs neglected or is the building falling apart? Or is there a nuisance being created by your neighbor that is allowed to continue? Are some owners being preferred over others?

At times there are homeowners who become involved in the weekly operations of an HOA that have a certain personality; at times they begin to control groups of people. Once on the board, sometimes these owners feel like they are doing something special by running the HOA. They will often bond closely with the management company representative and even listen more to the management company then other homeowners. This can be a big sign of trouble.

The management companies are just that, companies that manage your investments. If you don’t find the right manager it can end up creating a conflict of interest between themselves and the property owners. Sometimes a management company will proceed to find homeowners that are willingly to pay fines, and routinely find problems with the state of their dwelling. This in turn aids to more costs and more money out of your pocket.  Some homeowners complain, but you have to remember the board decides and the management company basically listens to the board. You have to make sure that your management company has your best interests in mind. Granted the management company does have a financial incentive in the managing of your property, but that doesn’t mean that they cannot also take your questions, comments, and concerns into their decision making and overall management of your property. Remember it is YOUR property.

Being up to date with meetings, finical statements, reporting repairs that need to be assessed, and having a good line of communication with your property manager will facilitate a good relationship that will be more about both parties being happy then just one. Remember, if you feel like something is wrong or you may need some clarification on what is going on with your property, you have all the right to become more active with your property manager. In sum, the biggest problem is not being informed, not staying up to date with information, and keeping your mouth shut! So speak up and make sure that you trust who you’ve got to manage your property.