FAQ

a. You probably have a good idea of your home’s worth.  But, the markets fluctuate, so good marketing and a great agent will help you get top dollar for your home.   This is why Shiloh Property Management has teamed up with Bill Ruane, the top Re/Max agent in the South Bay.  Contact us and we will put you in touch.

a. Because you are using your Single-Family Home as a rental, we can avoid Capital Gains taxes when selling by utilizing a 1031 Exchange.  This means paying less in taxes and having more money to invest.  We are well versed in 1031 Exchanges, having done 100+ of these transactions.  Contact us for a personalized analysis of your situation and goals.

a. Commercial Real Estate as defined by most investors includes apartment buildings with 5 or more units, as well as office, retail, industrial buildings, and even undeveloped land.  Simply put, commercial real estate investors collect rent from businesses rather than individuals.  For investors who are trading out of Single-Family Home rentals, we recommend investing in apartment buildings, or well-located Triple Net retail locations.  When we sit down with you, we can review the current market, as well as your personal goals.

a. Absolutely!  If you have substantial equity in your home, you are well placed to reposition that equity to invest.  As you know, rates are at a historic low, so refinancing at a 3% interest rate to earn a 6% return can be a great investment strategy.  Contact us for a personalized analysis of your situation and goals.

a. Anyone can invest in Commercial Real Estate.  There is no special license or investor profile.  But, Commercial Real Estate does require some education so you can invest wisely.  Without a kitchen to fall in love with, Commercial Real Estate transactions are much more “by the numbers.”  Contact us and let us walk through the numbers with you.

a. We are not selling a once-in-a-lifetime opportunity.  On average, the Shiloh Property Management team see’s 90-100 of these properties come on the market each month, both in and out of California.  Finding the right fit for you, however, requires expertise, contacts and a team behind you.  We have refined this process over the last 31 years.  Contact us to take advantage of our hard-won investing experience, and get a personalized analysis of your situation and goals.

a. There are high performing properties available in California and in primary and secondary markets all across the country.  When we sit down with you and understand your investment goals (both short term and long term), we will find a property that fits your goals.  

a. Investing in Commercial Real Estate comes with 5 main benefits:

i. Depreciation – Most owners renting out a Single Family Home are not maximizing depreciation to maximize their cash flow.  

ii. Increased cashflows – If you decide to stop lending to your tenant at a 3% return, we can help you double, or even triple, your cashflow.  And, depreciation will help you keep more of what you earn.

iii. Decreased landlord responsibilities – Most of the properties we are speaking of are national brands, have the credit backing of their corporation, and utilize Triple Net Leases (NNN).  The simple understanding of NNN Leases is that the tenant handles taxes, insurance and maintenance themselves.

iv. Appreciation – Some markets see property values appreciate more, and some markets produce more cash flow.  Investors know that it is the tradeoff.   If you invest $1 million into a property, and in 5 years it goes up in value by 10%, you have added $100,000 in value to your net worth.  

v. Loan Paydown – At the same time you are receiving increased cashflows from your commercial property, your tenant is also paying down your loan for you.  Similar to appreciation, this is a great way to make the bank your business partner, and add to your net worth.

b. We hope this discussion on the 5 main benefits of Commercial Real Estate has peaked your interest.  We would be glad to sit down with you, discuss your goals, and highlight how commercial real estate can help you achieve them.  Contact us today.

a. Most of the properties we highlight utilize a Net, Net, Net Lease, also called a Triple Net Lease or NNN Lease.  This is a shorthand to describe who will be responsible for the Taxes (N), Insurance (N) and Maintenance (N). 

b. A standard Triple Net Lease calls for the tenant to handle all of these expenses themselves, meaning that there are ZERO landlord requirements on a day-to-day basis.  Speaking from personal experience, on average we receive 1 landlord phone call every 3 years from our Triple Net properties.

c. It is common for Triple Net Leases to include regular price increases to offset inflation as well.  We are happy to handle these tenant negotiations on your behalf.

a. To put it simply, yes.  Think about the types of business you personally have visited in the last few months.  Regardless of how much people stay home and shop online there will always be a need and demand for auto part shops, Starbucks, dollar stores and dialysis centers.  These types of businesses were all deemed essential businesses and remained open during the COVID pandemic.

a. Apartment buildings in Southern California have a proven track record of much higher returns than Single Family Rentals.  One of the main reasons for this is taking advantage of economies of scale to reduce expenses.

b. Let me give you an example from our personal experience.  We manage a duplex that needed a new roof.  This cost the owner $11,000.  We also manage a 15-unit apartment building, and when this building needed a new roof it cost $20,000.  On a per-unit basis, the new roof cost the duplex owner $5,500 per unit, while the owner of the larger building’s cost was $1,333 per unit.  This principle is the same for the paint, landscaping, etc.

c. In addition, you can hire Shiloh Property Management to manage the day-to-day operations of your building and avoid the headaches of handing tenants, while dramatically increasing your cashflow and taking advantage of economies of scale.

d. Contact us for a personalized analysis of your situation and goals.