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    in a new area that has potential for appreciation. So the key is to find this new area. They just have to talk to someone who knows this new area. It could be Bakersfield or Sacramento or Fresno. Alternatively, investors can put money in commercial properties: retail strips, shopping ce
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    Most people in Northern CA started investing in real estate by buying their own homes. And most have made money as real estate in Northern CA has continued to appreciate in value. So when they move up, they decide to rent out their first homes. And then they acquire a few more homes. They know they have negative cash flow but make a profit because of appreciation. This is the typical story how most real estate investors invest in residential properties. So far luck has been on their side.

    As the interest rates have gone up gradually in the last 12-24 months while the rents in the Bay Area remain very much flat, the negative cash flow gap is widening. The risk for investing in residential properties is increasing. The same old formula of investing may not work anymore. In the best case, investors may still make money but not as much in term of percentage since the value of real estate is pretty high already. In the worst case, investors may lose money as residential real estate may remain flat or even decline in value. Is there a solution for real estate investors in Northern CA? Of course, these investors can use the same old formula in a new area that has potential for appreciation. So the key is to find this new area. They just have to talk to someone who knows this new area. It could be Bakersfield or Sacramento or Fresno. Alternatively, investors can put money in commercial properties: retail strips, shopping cen

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    As the interest rates have gone up gradually in the last 12-24 months while the rents in the Bay Area remain very much flat, the negative cash flow gap is widening. The risk for investing in residential properties is increasing. The same old formula of investing may not work anymore. In the best case, investors may still make money but not as much in term of percentage since the value of real estate is pretty high already. In the worst case, investors may lose money as residential real estate may remain flat or even decline in value. Is there a solution for real estate investors in Northern CA? Of course, these investors can use the same old formula in a new area that has potential for appreciation. So the key is to find this new area. They just have to talk to someone who knows this new area. It could be Bakersfield or Sacramento or Fresno. Alternatively, investors can put money in commercial properties: retail strips, shopping ce

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    rents in the Bay Area remain very much flat, the negative cash flow gap is widening. The risk for investing in residential properties is increasing. The same old formula of investing may not work anymore. In the best case, investors may still make money but not as much in term of percentage since the value of real estate is pretty high already. In the worst case, investors may lose money as residential real estate may remain flat or even decline in value. Is there a solution for real estate investors in Northern CA? Of course, these investors can use the same old formula in a new area that has potential for appreciation. So the key is to find this new area. They just have to talk to someone who knows this new area. It could be Bakersfield or Sacramento or Fresno. Alternatively, investors can put money in commercial properties: retail strips, shopping ce
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    ge since the value of real estate is pretty high already. In the worst case, investors may lose money as residential real estate may remain flat or even decline in value. Is there a solution for real estate investors in Northern CA? Of course, these investors can use the same old formula in a new area that has potential for appreciation. So the key is to find this new area. They just have to talk to someone who knows this new area. It could be Bakersfield or Sacramento or Fresno. Alternatively, investors can put money in commercial properties: retail strips, shopping ce
    Go Unplugged with Makita Power Tools
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    in a new area that has potential for appreciation. So the key is to find this new area. They just have to talk to someone who knows this new area. It could be Bakersfield or Sacramento or Fresno. Alternatively, investors can put money in commercial properties: retail strips, shopping centers, medical office buildings. Let’s just explore this paradigm shift to see if it makes investment sense.

    1. Income: commercial properties generate 50 to 200% more rental income compared to residential properties in the Bay Area. In addition, there is no rent control for commercial properties. So landlords can charge your tenants as much as the market permits.

    2. Leases: in general commercial real estate leases are more favorable to landlord compared to residential leases. Besides the base rent, tenants also have to pay landlord for property taxes, insurance and all maintenance expenses. These leases are called Triple Net or NNN leases. Because of this type of lease, commercial properties are better maintained than residential properties. Besides, the NNN leases also take away a lot of risks from the landlord as maintenance costs are unpredictable. On the other hand, landlords tend to defer maintenance on residential properties to reduce the cost. Consequently, the deferred maintenance will have negative impact on the value of the properties.

    3. Better Tenants: tenants for commercial properties are fina

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