Over the holidays we hope you. . . 

Mend a quarrel. Seek out a forgotten Friend. Dismiss suspicion and replace it with trust. Write a love letter. Share some treasure. Give a soft answer. Encourage youth. Manifest your loyalty in word and deed. Keep a promise. Find the time.  Forgo a grudge. Forgive an enemy. Listen.  Apologize if you were wrong. Try to understand. Flout envy. Examine your demands on others. Think first of someone else. Appreciate. Be kind; be gentle.  Laugh a little. Laugh a little more. Deserve confidence. Take up arms against malice. Decry complacency. Express your gratitude. Welcome a stranger. Gladden the heart of a child. Take pleasure in the beauty and wonder of the earth.  Speak your love.  Speak it again.  Speak it still once again.

Best wishes to you and your family from all of us at

Click here for more information and the full article by Northern Nevada Business Weekly.

Fennell & Associates Ron Boles just put 2 fourplex’s into Escrow! The Multi-Family market in Reno is finally priced to sell. Sell. SELL!!

On another Note…”The National Association of Home Builders is reporting that Nationwide housing starts and permits posted substantial gains in June as home builders responded to improved market conditions and the impending expiration of the first-time buyer tax credit. These stats comes from the U.S. Commerce Department.” – Realty Times Staff

Lots of incentives are flooding the market aiding the idea to help investors stimulate the market. Positive signs in both the commercial & residential markets shed light & perk interests. The market is indeed itching for a turnaround!

Aaron Smith with Fennell and Associates has new office space for sale & for lease off Plumb & Arlington. 499 West Plumb Ground Floor is for sale at $775,000 – $265.50 psf.

The Office space is for lease at $3,250/ mo including utilities.

The Building has 450 sf leased & 2455 vacant. The office space parking includes 12 or more spots, available immediately, TI’s are possible, office includes 6 treatment rooms, and a great central location!

Neighbors include The Stone House Cafe, Starbucks, Lodo Loft, and a gaggle of popular stores that inhabit Plumb Gate Plaza.

 Click the Link Below for a Flyer!

 Flyer 499 West Plumb Lane

WHY GROW YOUR BUSINESS IN GREATER RENO-TAHOE?

Some Great information regarding, yet, even more reasons to relocate & grow your business in the Greater Reno- Tahoe Area… from EDAWN’s Website…

Businesses of all sizes are moving to Greater Reno-Tahoe. Here are just a few of their reasons. What will yours be?

Click here for a copy of the Why Do Business in Greater Reno-Tahoe

Click here for Reno-Tahoe International Airport Highlights

Tax Benefits

• NO corporate income tax
• NO personal income tax
• NO franchise tax
• NO unitary tax
• NO inventory tax
• NO inheritance tax
• NO estate tax

Operating Benefits

• Strategic location
• Room for new and expanding companies
• Diverse labor market
• Wide range of financial resources
• Entrepreneurial services and support
• Urban, suburban, rural living options
• Quality of life

Community Benefits

• Emerging new business dynamic
• Strong sense of community
• Four vibrant seasons of recreation, arts and culture
• A balanced life pace

No matter your business, Greater Reno-Tahoe’s tax benefits and business-friendly environment can work for you. And with everything potential employees want – from entertainment options to the beauty of the Sierra Nevada – moving to Greater Reno-Tahoe can attract and retain the right people. Talk about taking the gamble out of making a move!

Bottom line: Greater Reno-Tahoe companies keep more of their profits

 Today we are going to be focusing on REO’s. What are they? Where do they come from? Who buys them?  Most Real Estate Professionals know that REO means “Bank Owned” or “Real Estate Owned” & if they don’t, maybe it’s time to find a new Agent. 

While discussing REO’s in everyday conversation with the general public, I have come across many-a-deer caught in luminously blinding headlights when those 3 simple letters get tossed around. So, I think it’s time to set the record straight and explore the deeper meaning of the ever so mystifying jumble of  “R” + two vowels we call REO.

The Wikipedia, Free Online Encyclopedia’s definition of a REO or Real Estate Owned is “a class of property owned by a lender, typically a bank, after an unsuccessful sale at a foreclosure auction. A bank will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount. If there are no bidders that are interested, then the bank will legally repossess the property. As soon as the bank repossess the property, it is listed on their books as REO – Real Estate Owned – and is categorized as an asset (non-performing).

As soon as a property goes into a distressed status (the borrower/home owner misses mortgage payments) the bank will want to determine the amount of equity that the property has. A popular method to determine the equity is to obtain a Broker Price Opinion BPO or order an appraisal. Based on the amount of equity that is determined from the BPO, the bank will decide to try for a short sale or to allow it to go through the foreclosure process. If the bank is able to sell the property through a short sale or at a foreclosure auction, then the property will not become a REO property.

After repossession and the property becomes classified as REO, the bank will go through the process of trying to sell the property on its own. It will remove some of the liens and other expenses on the home and try to resell it to the public, either through future auctions or direct marketing through a real estate broker (REALTOR). Generally speaking, bank REO properties are in poor shape in terms of repairs and maintenance; however, real estate investors will often go after these properties as banks are not in the business of owning homes and so, in some cases, the low price can more than compensate for the condition of the property.

Once a property is REO, the bank or lender will try to get rid of the property by either selling it directly themselves or through an established broker. Many larger banks such as Bank of America and Wells Fargo have REO/asset management departments that will field bids and offers, oversee upkeep and handle sales. The majority of REO properties that are on the open market are listed in MLS by the broker/REALTOR that performed the BPO.”

So, now what we know what an REO is, and that it is actually a positive opportunity for someone looking to make a purchase, we can discuss how REO’s relate to Commercial Real Estate. Just like in Residential Real Estate, REO’s inhabit the Commercial Real Estate world as well. In the Residential world, if a homeowner can’t pay their mortgage, their home usually goes back to the lender or bank where the loan originated from. After the failed auction and repossession take place, the bank has an REO on their hands. This same scenario happens frequently in the Commercial Real Estate world with buildings, land, and anything that isn’t owned outright. A building owner defaults on his or her loan payments, the building goes back to the bank, the bank auctions the property off for the outstanding loan amount, nobody bids, the bank repo’s the property, and it is then labeled an REO. This same pattern is true for land owners. Many times the bank wants to quickly rid themselves of the property. So, for a buyer, this can be a very savvy time to stumble across a deal that might otherwise be nonexistent in a different economic climate.

Fennell and Associates Commercial Real Estate Team has worked closely with many banks & buyers executing many successful REO transactions. Ron Boles, a Commercial Agent here at Fennell and Associates, currently has 3 REO properties listed for sale. Click the link below to view our inventory.

www.fennellandassociates.com

Which comes first, the chicken, or the egg? The age old question that’s left millions pondering since the beginning of time. Some firmly believe in the egg, others’ loyalty lay with the chicken.  So how do we relate this to Commercial Real Estate? Here we go…

The buzz at the water-cooler lately, is that the Reno & National Markets are turning around. With New home prices at an all time low,  short sales/ REO’s getting snatched up in a New York minute, land available for pennies on the dollar, and smart investors getting the itch to finally make their move, some predict an over-correction in the market, soon!

Staying on this Media backed “positive note” regarding the market rebound… Which industry comes first? Housing? Land? Office/Industrial? Retail?

You would think that because of Nevada’s lack of State Tax, Homestead Law, unlimited number of outdoor activities, and an infinite list of additional benefits & attributes that attract potential employees to Nevada, business owners from California & surrounding states would wise up and make the move to Reno. Wouldn’t businesses make the move into offices, industrial buildings, retail space,  or purchase land to build new space? That business would in turn create new jobs, which equal new employees. New employees then create a need for housing, which creates, once again,  a need for land! This pattern is what some would assume, but history proves differently.

The natural order for the Commercial & Residential markets returning after the infamous ”R word “( of which we do not speak of anymore) is past, is this:

1.Housing  2.Land 3.MF  4.Office/Industrial, 5.Retail  This doesn’t mean that office and industrial will not make any deals in the mean time. Right now much of their business is being generated by people downsizing or moving around for a better deal in the marketplace. There are also those lone investors out there snatching up high cap rate buildings since they are currently cash-flowing assets, as opposed to land. But as far as new faces moving into the market place, historically, this has been the natural order of things. Only time will tell.

So, back to the chicken or the egg deal: Will Residential drive Commercial this time? or will Commercial feed Residential?  I would love to hear your feedback Reno!

Aaron Smith, one of our Commercial real estate agents at Fennell & Associates Commercial Real Estate Solutions, & Jen McDonald a residential agent with Dickson Realty have a NEW LISTING,  the Gold Hill Historic Hotel is listed for sale at $2.25 mill. It is the oldest operating lodge in Nevada, with origins dating back to 1862, although, the GH has gone through many additions & remodels throughout the yearsThis lodge is a 14-room, three story, fully operating hotel, with 4 additional  cottages, a restaurant, bar, great room, gift shop, a gazebo, large rock fireplace, fantastic views, & outdoor reception area that can accommodate up to 125 people (Great for Weddings & Large Parties). One interesting tidbit about the Gold Hill Hotel is the rooms are themed in country western & old american decor. This enthralling new lising for Fennell and Associates Commerical Real Estate Solutions offers a unique investment opportunity as well as the chance to revive a piece of Historic Nevada. And, the reason why the owners are selling?? “They’re not getting any younger” said Smith. The Gold Hill is nestled on the steep slopes of the Comstock, just south of Virginia City.  For more information on the Gold Hill Hotel call Aaron Smith at 775.850.3110 & click on the link below!

www.goldhillhotel.net

Gold Hill Flyer