3 Acres in Middleton Tract, 45 minutes from Woodside

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Silicon Valley Real Estate Newsletter

The Problems are the Path: FED calls interests rates Wednesday January 31

On Wednesday the FED will tell what the tendency is for lowering interest rates.  If you readers just rely on CNBC, Bloomberg or some Social Media Site, I suggest you get on the St. Louis Federal Reserve Bank's mailing list.   Add to the Wall Street Journal and the U.S.  Census Department.  With those three sources you will not find yourself being jerked around by Media promotions and investment banks and advisors promoting their positions.   The Wall Street Journal had a list of the four new members of the Federal Reserve Voting Panel.  All four say too soon to cut rates.  The Federal Reserve so indicted the same.  The U.S.  Census reports showed slight declines in inflation with nothing near 2% annual rates.  The Census also stated POSITIVE growth in the US Economy.  All quite good for high interest rates.  It would appear to me why cut rates if the economy is doing so well?  The next issue the FED Governors must be looking at are housing prices and rents.  The Gen Z cannot affor
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The problems are the Path: Recession, SBA Loans for Income Property

 As I look at the commentary from Media I am reminded of the research articles while in the investment business.  If the Firm had a good relationship in investment banking the Stock Brokerage firm involved never had a bad commentary. They had a hold or accumulate.  Never a Sell was issued unless the firm were no longer investment banking clients.   To me the same is true for real estate commentary.  When one looks at the various papers that service a local market will never have anything negative.  One can only look at the advertisements and find the dominance of realtor adds.  To say the least, keep the clients happy! With the advent of internet news and the various services that provide us with updates and commentaries we now get some news that puts a true light on our real estate market.  Now, that is not to say that real estate is not a good investment or should be looked at as a negative for home residential purposes.  It only means that sellers need to become aware of the real va
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The Problems are the Path: Opportunities in Commercial Real Estate

Year end pressure to sell is compounded by high interest rates and the desire to eliminate costly unprofitable investments appear in the large commercial projects and the smaller projects.  It takes some research to find an opportunity among the offerings.  Hedge Funds, the so called Smart Money of sophisticated investors, have expanded on their bets that interest rates will go higher than they are now.  That bet is levied via short positions in Government Bonds.  A short mean they sold something that they bet will go down in value as interest rates go up. That bet will be a financial reward to hedge funds, but will turn to be a liability and loss to Commercial investors who own commercial property with variable rates or mortgages that are maturing within a short time frame, say 6-months or less. It is well publicized the Billions of dollars in debt that will mature next year for the Office building across America.  There is little in the news that deals with all the smaller transactio
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