Investment Property discussion today–How to calculate Return on Investment

 The “Cap rate” is often quoted as a determining factor in pricing investment properties. I’ve found a great resource on-line which you can go to time and time again to get your investment questions answered when it comes to Real Estate. Just CLICK HERE to go to their page. The web site is called, “CRE Online” and it is just chock full of great investment advice.

Pete Phillippe Joins us on The Real Estate Hour Today to Talk About Investment properties, and Investment Financing

The Real Estate Hour is glad to have veteran guest Pete Phillippe on the show today as we dig a little deeper into Multiple Unit  financing. We’ll be discussing how investors qualify for loans, and how the PROPERTY must also qualify. You’ll hear more about CAP rates, Gross Unit Multipliers, and more.





Peter Phillippe
Loan Consultant
Princeton Capital
707-481-2737 Cell
1-888-305-2473 eFax


A “Honey” of a tale–Ancient tale of the Virgin “White-Bees’!!

The following ancient tale of  the magical effects of bees I pass along courtesy of : “The Guide to Beekeeping for Adults and Kids”

Here’s the link to the site. It’s full of interesting links and information on my favorite subject (besides Real Estate)–BEES!

The tales usually involve a lovely woman–but don’t ALL good tales begin with a love woman!? Enjoy!

There are similar tales in Indonesia. The Bornean version, quoted in The Mythology of All Races (Vol. IX), is as follows:

A man named Rakian was out hunting for honey, when in the top of a
mangis tree he saw many bees’ nests, in one of which were white bees.
(Several Christian legends allude to snow-white bees producing virginal
honey.) Since white bees were a rarity, he carefully removed the nest
and took it home. The next day he was working in his garden and when he
returned to his house in the evening he found a meal cooked for him. He
was surprised because he lived alone. The following day the same thing
occurred, his meal was again cooked. This continued for some time.
Finally he resolved to investigate the mystery.

Continue reading A “Honey” of a tale–Ancient tale of the Virgin “White-Bees’!!

Your PROPERTY IS WANTED!! Recap of Santa Rosa Realtors Networking Meeting

Here in Sonoma County, California–Realtors every Tuesday in Santa Rosa gather to “pitch” their Haves (Properties for Sale) and Wants (Needs of their property Buyers) to their fellow Realtors/Agents with the hopes of finding a property NOT yet on the market or a special property for a BUYER who has seen EVERYTHING! As the long-time moderater of this meeting over some 20 years I’ve seen three different marketing cycles. We are NOW entering one of scarcity of homes for sale, many buyers seeking FEW homes, overbidding and a hopefully “appreciating” marketplace. Since inflation is being held in check, we can’t use that favored vehicles to re-coup some or all of our real estate loses. It will be done the old fashioned way: Market Appreciation. Our concencus last week amongst a veteran group of Realtors/Agents–3 to 4% appreciation this year.

What the MOST in demand property type?  Single family detached dwelling on a traditional sized lot (6,000sqft or bigger), 3 bedrooms, 2 baths, single level and in the NW, NE, or SE areas of Santa Rosa–price point sub $400,000 range with many in the sub $300k price point.

Next? How about $1,000,000+!! Yup! It’s a bizzarro world marketplace. Luxury homes are in demand as money from silicon valley, IPO big bucks techies plus those retiring with a country lifestyle in mind fuel this price segment.

However, our mid range is also picking up with many buyers in the $500-900K range. Single levels are always big!

Fit any of these pricing or property descriptions? Then we’d LOVE to talk to you. We are the Kelly-Norman Team and are two of the hardest working Realtors in Sonoma County. We provide advice to homeowners seeking to down size their homes BUT NOT THEIR LIFESTYLE! Give Allison and call at 707-799-3617 or shoot her an email:

The “Real Estate Hour” team at Quarry Hill Botanicals “Earth-Day” Event-As bee keepers

Sonoma County Bee Keeper’s Association celebrates “Earth-Day” with two booths in Sonoma County. Here Mike and Allison are at the “Quarry Hill Botanical Garden” celebration on Saturday. Sunday, “Earth-Day” our Association also was participating at the big “main-even” downtown Santa Rosa! Saturday was really HOT! This photo, shot at the end of the day, captures our mood and heat index!!

Mike and Alli, end of day and very warm!



Today’s Show! April 15th–Next big BOOM? Save our Trees, Appraisal Issues-Guest Otto Kobler

Next Meeting: Thursday April 19, 7:00 PM,
Location Change: Bennett Valley Grange Hall, 4145 Grange Road, Santa Rosa (map)

This is the outcome of the PG&E meeting with the  “SOS” folks outcome of their meeting with PG&E regarding cutting of trees in their power-line easement: This Update from Sonoma Mountain homeowner Tom Hauck:

“The March 29th Meeting with PG&E brought out 150 people, Channel 2 news, and generated a Press Democrat article. Bob Bell, Supervising Program Manager from PG&E,  could not promise the cutting of the trees would be stopped. He stated PG&E  can cut down trees in their easement.  A very dissatisfied 150 homeowners and audience. 

A new PG&E letter arrived yesterday (Friday, April 13th,  that did not provide  any new information. They are moving forward and want it all one by May 15th.  They promised that they would communicate with owners prior to work being done. That was the clarification of their “activities”.

Tom Hauck will be on the show this morning to give us further news on the plan for PG&E to remove all trees from their huge swath easement under the major trans-county power lines. Stay Tuned!

Otto Kobler will be on the show and relate to us a recent “lunch and Learn” he put on for Realtors featuring two appraisers. We’ll go over exactly WHAT appraisers are looking for when they examine a home being secured by a loan. He will also relate a very interesting story relating the next possible “BOOM” in the .com field. Should make for an interesting discussion. Hint: it involves purchasing a home for $4,000,000 today BEFORE the market accelerates to the $5 or 6Million range!! Huh?

Otto’s Information: Summit Funding, Inc  “Home Loans Made Simple”–Office: 707-522-6300 Ext 11 or Cell: 707-694-6604 or email:

  Plus I’ll recap some of our stories from the Trenches AND this is the week of our “OPEN HOUSE EXTRAVAGANZA”!! We have THREE homes for sale! But this market is so hot two have SOLD already!! What?! Yup!

  And Allison is back from her weekend off and has all the major “tickles” out of her chest, lungs and throat! Yes, she can TALK AGAIN without coughing like a Teamster!

Foreclosure Process for California, Sonoma County distressed property owners–KNOW THE RULES!

Foreclosure process in California with Milestones

Sonoma County, California, Alli and I have heartbreaking stories with many home owners in “property distress” who DO NOT know the rules or “milestones” associated with the foreclosure process.

First and foremost is ALWAYS open your mail. I know this is daunting when bills are piling up but you COULD have a juicy compromise from the BANK which could stave off foreclosure! Check with top-flight professionals who know the ropes of foreclosure or selling under financial “distress”. We have CPA’s and Attorneys who KNOW the right questions to ask you. And if a “Short-Sale” is a viable alternative then GIVE ALLISON and I a call for a free consultation. Remember, as Realtors we DO NOT charge UPFRONT FEES! We work on a concept known as a “contingent fee” which means basically–we don’t get paid until WE perform and have the OUTCOME you so desire. In the case of a short-sale it would be a successful sale with the banks and all involved lenders allowing you to sell without any further financial consequences for recourse. Talk to us if you are in need! 707-799-3617. Asset preservation–Family preservation!




Next BIG foreclosure market? How about Marvelous Marin?

Here in Sonoma County, California, 50% of all sales are distressed but look what awaits the affluent and upscale Marin County to the south! Some feel the many Pre-foreclosures or those with a big green “P” are the result of strategic walkaways. These are folks who have stellar credit, hardworking but cannot get their lenders to help them out with their “Under-water” nature of the loans secured on their homes. Have they had enough? Is this strategically mass walk-aways? This we will discuss in some lenght tomorrow!

Note all the "P"'s which are Pre-foreclosure--Notice of Default filed--Strategic Walkaways?

No this is NOT an April Fools joke…$60,000 Price Reduction on Sebastopol 4 bedroom NOW $399,900. Open Today 4/01 from 1-4pm

Rare 4 bedroom home and newer construction, built in 2001, plus soaring cathedral ceilings, hardwood flooring, Fresh interior paint. Family room w/ fireplace off Kitchen. Rockin’ chair front porch and cul-de-sac setting make this a rarity in Sebastopol’s tight inventory marketplace. Laundry room UPSTAIRS where the clothes come from, Master with full bathroom, big closet. Mature landscaping,easily managed yard and directly across from Pacific Mkt.

Full Details

Listing Courtesy of Michael Kelly, Keller Williams Realty