Sunday, June 28, 2009

2 Bedroom TICs Listed For Under $450,000

I haven't seen prices like this since the early 2000s. It looks like some sellers are aggressively pricing TICs to compensate for the ownership structure and higher loan rates. That is the point of TICs in the City - to offer affordable opportunities to middle income buyers. There are good buys out there - just make sure to choose carefully and do appropriate due diligence. Buying now is just like it was in the old days - a long term proposition.

2025 Ofarrell #3 - $399,000
Very Motivated Seller! Delightful 2 Bd/1 Ba unit in a quiet, classic building. Remodeled in 2005, this light-filled home offers coved ceilings, hardwood floors, stainless steel appliances, granite countertops, and beautiful bay windows. This perfect new home also has common laundry and storage. Conveniently located in the center of the city with easy access to public transportation. 6 unit TIC. No parking.

557 Fillmore - $399,000
The semi-detached building where the unit is located was Seismically retrofitted and renovated from the studs out. The Kitchen has custom cabinets, granite counters, Bosch energy-efficient stainless steel appliances. The bathroom has a Villeroy & Boch double sink, & imported Spanish tiles. All new energy efficient systems & laundry hook-up. There is a shared rear yard with a large redwood deck. 6 unit TIC. No parking.

227 Guerrero #A - $439,000
Studs out remodel of 2BR/1BA, top floor view flat in the Valencia Corridor. Custom kitchen w/granite counter, maple cabinets, stainless steel appliances, dishwasher, bath w/subway tile and pedestal sink. Deck off of rear bedroom, landscaped backyard. Independent enclosed parking. Low HOA of $225. No Ellis or evictions! Minimum 10% down. 6 unit TIC.

Friday, June 26, 2009

Lower Fractional Financing Rates?

735 Geary is a new 21-unit TIC that is advertising "Unbeatable fractional financing! 10 year fixed rate at 5.875%, with minimum 10% down payment with West American Mortgage." Not sure who this group is, or what kind of fees and points they charge, but that is the lowest fractional rate that I've seen advertised.

Sunday, June 21, 2009

Just Say No To Partners of Building Partners

The TIC partner who handles our accounting recently started copying the domestic partners and spouses of the TIC building partners on emails about building business. He made this decision unilaterally without consulting the group. In my view, this is wrong. We are a large TIC with seven building partners who are the deed holders and legal signatories to our TIC agreement. Five of those individuals have spouses or domestic partners. By adding these five wives, husbands, what have yous to the discussion of our building business we have gone from trying to come to a consensus with seven people to airing the views and opinions of twelve. Having to listen to the snarky comments of people who have no legal standing is, in my view, a waste of time. It adds to the complexity of managing the building and brings no value in return.

In my opinion, it is up to the legal partner to inform his or her spouse. The legal partner's comments and votes on building matters can reflect any private conversations they have had. But individuals who have no legal standing in the TIC group should not be involved in email dialogues or present at meetings.