4-PLEX in SAN JOSE, CA 3748 Underwood Dr., San Jose, CA 95117
3748 Underwood Underwood Dr., 3748 Jose, San CA 95117 PRICE: $1,675,000 • Unit mix: (4) 2/1
• Property Sq. Ft.: 6579 • Living area: 3201 • Nice commute location • Well maintained • Gross Rent: $92,340
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected] Disclosures
• The information contained in the following Marketing Presentation is proprietary and strictly confidential. It is intended 3748 Underwood Underwood Dr., 3748 Jose, San CA 95117 to be reviewed only by the party receiving it from Losness Group and should not be made available to any other person or entity without the written consent of Losness Group. This Marketing Brochure is intended to be used for the sole purpose of preliminary evaluation.
• This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Losness Group has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property.
• The information contained in this Marketing Presentation has been obtained from sources we believe to be reliable; however, Losness Group has not verified, and will not verify, any of the information contained herein. Losness Group makes no representation or warranty regarding the property, including but not limited to: income, expenses, or financial performance (past, present or future); size, square footage, condition of property. Losness Group has not conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Any potential buyer must independently investigate and verify all information set forth in Marketing Presentation and is solely responsible for all costs and expenses incurred in reviewing the
Marketing Presentation and/or investigating and evaluating the property.
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected] 3748 Underwood Underwood Dr., 3748 Jose, San CA 95117
Property Overview
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected]
Property Profile 3748 Underwood Underwood Dr., 3748 Jose, San CA 95117 Zoning RM Property Address 3748 Underwood Dr. Major Cross Street San Tomas Expy Foundation Concrete Perimeter Parcel Number 299-32-024 Framing Wood Number of Units 4 Exterior Stucco Parking Surface Concrete Number of Buildings 1 Roof Composition Number of Stories 2 Parking Carport Unit Mix (4) 2/1 Metering Separet Gas/Elect Gross Living Area 3201 SF Year Built 1963 Lot Size 6579 SF
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected] Location Overview
• Property is located conveniently for commuters. Hwy 280, 880. 3748 Underwood Underwood Dr., 3748 Jose, San CA 95117 • Tenants are close enough to walk or ride their bike to Starbird Park and Youth Center. • Property is located close to shoping centers and Boynton High School.
• Also Near Lynhaven Elementary School
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected] 3748 Underwood Underwood Dr., 3748 Jose, San CA 95117
Financials
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected] Offering Summary
3748 Underwood Underwood Dr., 3748 Jose, San CA 95117 Address 3748 Underwood Dr.
Price $1,675,000 Parcel Number 299-32-024 Age 1963 Number of units 4 Rentable Sq. Ft. 3,201 Lot Size 6,579 CAP Rate 3.89% Pro-Forma CAP 4.65% GRM 18.14 Pro-Forma GRM 15.86
ROI 3.66% Pro-Forma ROI 4.95% $ Per Unit $418,750 $ Per Sq. Ft. $523
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected]
Income/Expense Statement 3748 Underwood Underwood Dr., 3748 Jose, San CA 95117
INCOME (Annual) Gross Rental Income $92,340 Expenses: $25,675 Laundry/Other Income $1,200 Less Vacancy $2,770 % Expenses: 28.3% Effective Gross Income $90,770 EXPENSES (Annual) Cap Rate: 3.89% Taxes (City) $20,435 Special Assesment (City) $1,899 GRM: 18.14 Insurance (Lender) $1,440 Utilities (owner) $360 Price/Unit: $418,750
Water/garbage (owner) $1,140
TOTAL EXPENSES $25,675
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected] Rent Roll
3748 Underwood Underwood Dr., 3748 Jose, San CA 95117 # UNIT MIX RENT MARKET $ Below Market % Below Market
1 2bed / 1bath $1,995 $2,200 $205 9.32%
1 2bed / 1bath $1,950 $2,200 $250 11.36%
1 2bed / 1bath $1,700 $2,200 $500 22.73%
6.82% 1 2bed / 1bath $2,050 $2,200 $150
TOTALS $7,695 $8,800 $1,105 12.56%
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected] Estimated Operating Statement
PRICE $1,675,000 PROPOSED FINANCING
Down Payment 60% $1,000,000 Loan Amount $675,000 3748 Underwood Underwood Dr., 3748 Jose, San CA 95117 Number of Units 4 Loan Type 5 Year Fixed Price/Unit $418,750 Interest Rate 4.25% Rentable Square Feet 3,201 Amortization 30 Price/Square Foot $523 Term 7 Current CAP Rate 3.89% Monthly Payment $3,321 Pro Forma CAP Rate 4.65% Debt Coverage Ratio 1.63 Current GRM 18.14 Pro Forma Debt Coverage Ratio 1.96 Pro Forma GRM 15.86 Year Built 1963 ROI 3.66% Lot Size 6,579 Pro Forma ROI 4.95% INCOME Current Pro Forma EXPENSES Current Gross Rental Income $92,340 $105,600 Taxes (City) 1.22% $20,435 Laundry Income $1,200 $1,200 Special Assesment (City) $1,899 Gross Scheduled Income $93,540 $106,800 Insurance (Lender) $1,440 Less Vacancy (5% of GRI) $2,770 $3,168 Utilities (owner) $360 Effective Gross Income $90,770 $103,632 Water/garbage (owner) $1,140 Less Expenses $25,675 $25,675 0 $0 NET OPERATING INCOME $65,095 $77,957 Miant/Repairs $0 Debt Service $39,847 $39,847 Landscaping $400 Net Cash Flow $25,248 $38,110 Management 5% 0% $0 Principal Reduction $11,380 $11,380 Total Expenses $25,675 Total Return $36,628 $49,490 Expenses/Unit $6,419
Expenses/SF $8.02 % of EGI 28.3% RENT ROLL # of Units Bdr/Baths Current Monthly Pro Forma Monthly 1 2/1 $1,995 $1,995 $2,200 $2,200 1 2/1 $1,950 $1,950 $2,200 $2,200 1 3/2 $1,700 $1,700 $2,200 $2,200 1 2/1 $2,050 $2,050 $2,200 $2,200 Monthly Totals $7,695 $8,800
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected] 5 Year Projection - Buyer
3748 Underwood Underwood Dr., 3748 Jose, San CA 95117 5 Year Projection Current YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Units 4 4 4 4 4 4 Price/unit 418,750 445,618 470,936 497,622 5,257 555,391 Future Value $1,675,000 $1,782,472 $1,883,743 $1,990,489 $21,030 $2,221,564 Gross Rental Income 92,340 96,957 101,805 106,895 112,240 117,852 Laundry 1,200 1,200 1,200 1,200 1,200 1,200 Rental Increase 5% 5% 5% 5% 5% Less Vacancy (5%) 2,770 2,909 3,054 3,207 3,367 3,536 Effective Gross Income 90,770 95,248 99,951 104,888 110,073 115,516 Less Expenses 25,675 26,445 27,238 28,055 28,897 29,764 Expense Increase 3% 3% 3% 3% 3% NOI 65,095 68,803 72,712 76,833 81,176 85,752 Selling CAP Rate 3.89% 3.86% 3.86% 3.86% 386.00% 3.86% Debt Service 39,847 39,847 39,847 39,847 39,847 39,847
Net Cash Flow $25,248 $28,956 $32,865 $36,986 $41,328 $45,905 Net Cash Flow % 2.52% 2.90% 3.29% 3.70% 4.13% 4.59% Monthly Cash Flow $2,104 $2,413 $2,739 $3,082 $3,444 $3,825
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected] 5 Year Projection Summary - Buyer
3748 Underwood Underwood Dr., 3748 Jose, San CA 95117 5 Year Equity/Income Projection
** 5 Yr. Gain on Equity 5 Yr. Equity Gain as % $546,564 54.66%
* 5 Yr. Gain from Income 5 Yr. Income Gain as % $211,289 21.13%
Total Equity and Income Gain as % of DP $757,853 75.79%
* 5 Yr. Gain on Income is based on down payment. ** 5 Yr. Gain on Equity is based on Future Value of property at a 3.36 % CAP Rate vs. Down Payment. Principle Reduction Included.
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected] 3748 Underwood Underwood Dr., 3748 Jose, San CA 95117
Maps and Pictures
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected]
Local Map
3748 Underwood Underwood Dr., 3748 Jose, San CA 95117
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected]
Ariel
3748 Underwood Underwood Dr., 3748 Jose, San CA 95117
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected]
Exterior Photos
3748 Underwood Underwood Dr., 3748 Jose, San CA 95117
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected]
Exterior Photos
3748 Underwood Underwood Dr., 3748 Jose, San CA 95117
www.losnessgroup.com
Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected]
Exterior Photos
3748 Underwood Underwood Dr., 3748 Jose, San CA 95117
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected]
Interior Photos
3748 Underwood Underwood Dr., 3748 Jose, San CA 95117
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected]
Interior Photos
3748 Underwood Underwood Dr., 3748 Jose, San CA 95117
www.losnessgroup.com
Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected]
Interior Photos
3748 Underwood Underwood Dr., 3748 Jose, San CA 95117
www.losnessgroup.com
Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected]
Interior Photos
3748 Underwood Underwood Dr., 3748 Jose, San CA 95117
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected] 3748 Underwood Underwood Dr., 3748 Jose, San CA 95117
Sales Comparables
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected] Sales Comparables
1333 Saratoga Avenue, San Jose 95129 3748 Underwood Underwood Dr., 3748 Jose, San CA 95117
Selling Price $1,825,000 Price/Unit: $456,250 # of Units 4 Price/SF: $432 DOM 22 CAP: 3.04% Year Built: 1969 GRM: 18.52
Sq. Ft. 4,223 Lot Size 8,338 NOI $55,406 Gross Rent $98,556
NOTES: (1) 3/2 (2) 2/1 (1) 1/1
840 Di Fiore Drive, San Jose 95128
Selling Price $1,695,000 Price/Unit: $423,750 # of Units 4 Price/SF: $471 DOM 5 CAP: 4.35%
Year Built: 1964 GRM: 18.24 Sq. Ft. 3,597 Lot Size 6,759
NOI $73,767 Gross Rent $92,940
NOTES: (1) 3/2 (2) 2/1 (1) 1/1
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected] Sales Comparables
3664 Greenlee Drive, San Jose 95117 3748 Underwood Underwood Dr., 3748 Jose, San CA 95117 Selling Price $1,600,000 Price/Unit: $400,000 # of Units 4 Price/SF: $394 DOM 58 CAP: 3.79% Year Built: 1968 GRM: 17.76 Sq. Ft. 4,059 Lot Size 9,699
NOI $60,716 Gross Rent $90,072
NOTES: (1) 3/2 (2) 2/1 (1) 1/1
590 Macarthur Avenue, San Jose 95128
Selling Price $1,550,000 Price/Unit: $387,500
# of Units 4 Price/SF: $553 DOM 96 CAP: 2.82%
Year Built: 1951 GRM: 26.63 Sq. Ft. 2,804 Lot Size 9,125
NOI $43,650 Gross Rent $58,200
NOTES: (4) 1/1
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected]
Sales Comparables vs. Subject
3748 Underwood Underwood Dr., 3748 Jose, San CA 95117
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected] Mountain View 5-50 Units Average Price/SF
$350 $338 $336
$300 $281 $261 $256 $248 $251 $250 $221
$200
$150
$100 2006 2007 2008 2009 2010 2011 2012 2013
Projected Equity Return 3748 Underwood Underwood Dr., 3748 Jose, San CA 95117 Projected Equity Return
Likely Sales Price $1,675,000 Loan Balance $110,000 Closing Cost 6% (est.) $100,500 1031 Exchange Funds (Equity) $1,464,500
Maximum Up-leg Purchase Price (30% Down Payment) $4,881,667
Expected Up-Leg Return % / Cash Flow 4.50% $65,903 5.00% $73,225 5.50% $80,548 6.00% $87,870 6.50% $95,193 7.00% $102,515
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected] 3748 Underwood Underwood Dr., 3748 Jose, San CA 95117
Losness Group Resume
and Marketing Plan
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected] About Your Agent and Losness Group
3748 Underwood Underwood Dr., 3748 Jose, San CA 95117 Brent Welsh has been working with the Losness Group for several years. In that short amount of time Brent has displayed a passion for Real Estate. He is always attentive to the client’s needs and will always be sure to stay on track with focus and dedication to all his clients. In addition, Brent has an accomplished background in home remodel and construction, which is very helpful to understanding properties. Brent is also a PGA Golf Professional for over 25 years. You can be confident that you will always be well taken care of with fair and honest dealings.
The Losness Group was founded in 2006 by three Silicon Valley-based brothers. We are a full service commercial brokerage firm specializing in apartment brokerage. We are apartment specialists with a proven record of improving clients portfolio's and we are dedicated to providing expert guidance
through every step of the real estate transaction. Our specialization in the local apartment economy creates unparalleled expertise. We are committed to continually assisting in your real estate investment needs, visions, and goals, and applying our resources to meet those requirements.
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected] Marketing
3748 Underwood Underwood Dr., 3748 Jose, San CA 95117 Losness Group believes that the more we market, the better price and terms we will get for your property. We believe that “no stone shall be left unturned” when it comes to our marketing platform. Our office and agents spend thousands of dollars on every listing to ensure the highest possible exposure for your property.
Losness Group also functions as a team, which means you don’t just get one agent working to sell your property, like all other real estate companies. When you list your property with Losness Group you get our entire staff out there talking about your property and generating interest
Marketing Resources
•Our office averages 1,500 calls per week, dedicated to talking about your property to investors •We will put of between 2,500 to 5,000 postcards to local apartment owners. •We pay additional fees to Showcase your property on LoopNet. •Multiple Listing Service (MLS). •Losness Group is Chairman of the Board for the Bay Area Brokers Forum (BABF), and we will discuss your property at each meeting to make sure all the top apartment brokers know about your property. •We will discuss your property at every seminar we attend.
•When necessary, we will advertise in local newspapers like the Mercury News and The Wall Street Journal. •Losness Group utilizes all major electronic media like: Realtor.com, Redfin, Neighbor City and more.
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected]
Tips for a Successful Sale 3748 Underwood Underwood Dr., 3748 Jose, San CA 95117 Reports and Inspections Conducting our own reports on the property like Roof, Termite, HVAC, Electrical and Property Inspections are highly recommended prior to going to the market. Properties that do not have any reports are more regularly subjected to price changes and credits to the buyer during escrow. Having these reports before going to the market shows buyers we have already taken into consideration the known defaults of the property and allows us to be firm with our pricing. Reports are a minimal cost compared to high credits associated with the unknowns of a property.
Repairs and Upgrades Losness Group highly discourages owners putting money into the property just before listing your asset. In the current market, it is unknown if any money put into the property will actually get you a better price. The market is so strong that any upgrades or repairs may not have any influence on the final selling price. We would rather see you keep your money where it belongs, in your bank.
Open House Most investment real estate will sell “Subject to Inspection”, which means buyers do not see the inside of the property until after pricing and terms have been agreed upon by both Buyer and Seller. Losness Group highly recommends allowing a least
one day where we can show a couple of units to investors and brokers. Open houses create a sense of competition and urgency among investors which leads to better offers.
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected] Tips for a Successful Sale
During Escrow 3748 Underwood Underwood Dr., 3748 Jose, San CA 95117 It is important to continue to run/manage the property during escrow as if you do not intend to sell. Please do not make any changes to the leases or tenants during escrow unless absolutely necessary.
Tenants It is almost impossible to hide the fact that you are selling your property from the tenants. At some point, they almost always find out. Furthermore, our experience tells us that owners who keep the tenant's informed have a better results when it comes time for inspections, open houses and appraisals.
Exterior of the Property Please do your best to keep the exterior of the property presentable during the initial marketing stage. Many investors and brokers will be driving by the property and the first impression is vital. If your property is in need of a fresh coat of paint, Losness Group has painters who can get the job done quickly and below cost of most contractors. In some cases Losness Group may elect to help pay for a portion of the painting to ensure the highest degree of success. Please ask your agent for details.
Commission
Although there is no set commission rate for real estate, it is important to place a commission on the property that is consistent with the marketplace. After all, commission is the bait used to get other brokers and agents involved in your building. Assets with very low commissions get less activity than those with commissions consistent with the market. The more people Losness Group can get involved in your property, the better we can negotiate on your behalf. In most cases, the difference between the commission you saved by getting a discounted rate nets you less money than deals with stronger commissions.
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected]
Resume 3748 Underwood Underwood Dr., 3748 Jose, San CA 95117
Type of Asset # of Total # of Total Price Transactions Units
Apartment 140 1,163 $188,830,670 NNN 5 5 $15,888,379 SFR 27 27 $16,061,100 CONDO 8 8 $3,046,000
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Brent R. Welsh 3131 S. Bascom Ave. Realtor / Apartment Specialist Campbell, Ca. 95008 Tel (408) 637-4729 BRE No. 02023171 [email protected]