Home Buying: Working With The Right Realtors In Bakersfield


Buying a house in Bakersfield can be a major ordeal.  While it is true that anyone can shop for a house, there is still no substitute to experienced Realtors in Bakersfield.

Thanks to the worldwide web, buyers can now do the greater part of the hard work with regards to finding the house they need. However, a realtor may be able to match you with the ideal property much faster. Continue reading “Home Buying: Working With The Right Realtors In Bakersfield”

Homes For Sale In Bakersfield: Don’t Wait To Find Your Next Home


Are you looking for homes for sale in Bakersfield?  If so, have you thought about the features that you may want in your next home?  Have you been pre-qualified?  First-time home buyers should meet with a qualified lender, so they can understand what programs would be available to them when searching for homes in Bakersfield.  For example, there is a closing cost credit grant.  That can take thousands of dollars off of the amount of money needed to purchase your next home. Continue reading “Homes For Sale In Bakersfield: Don’t Wait To Find Your Next Home”

Bakersfield Homes For Sale

Are you searching for Bakersfield homes for sale?  Do you know which homes you are looking for, or what the first step is to start buying?

If you are a seasoned buyer, then you probably know that when searching for Bakersfield homes for sale, you should always start with a pre-qualification.  Why should this be the first step?  For example, if Mr. Buyer tells his agent that he is looking for homes from $400,000 to $500,000, then the agent will go and find properties in that range that are good for the buyer.  After days of showings, the buyer finally finds the house that he wants, and now goes to the lender to get his qualification letter.  After the meeting the lender gives the buyer a pre-qualification for $375,000, but the perfect property was $425,000, and now Mr. Buyer has lost all of this time that he has spent seeing houses, and he will not be able to get the house that he wanted in the first place which makes Mr.  Buyer very irritated.

In order to avoid this, when looking for Bakersfield homes for sale, you should get a qualification letter first.  This will ensure that you will not waste any time when trying to buy a house, and in the market we are in right now, we can definitely not waste any time when purchasing property.

This example, should definitely help the first time buyers looking for Bakersfield homes for sale.  Another thing that can help is knowing which grant programs there are for first time homebuyers.  That can definitely help with some of the upfront cost associated with buying your next home.  A great way to find out about some of these programs is to ask me, your Realtor, and your lender.

Until Next Time,
Sanjeev (Sunny) Advani
– Sales / Management / Investment

Houses For Sale In Bakersfield

Have you been looking for houses for sale in Bakersfield? What type of house are you looking for? Where do you start in the buying process? Should you speak to a lender? What is a first time buyer credit?

These are all questions that people who are looking for houses for sale in Bakersfield would ask. At Synergy, we aim to provide you with a complete customer experience. We will provide you with a road map on how to get through your next real estate transaction without any hiccups.

If you are a first time buyer, we can help you narrow down which houses for sale in Bakersfield you are looking for, and make sure that you are looking at houses that are appropriate for your needs and budget.

The best first step in purchasing is to contact your Realtor (which we would love to be). Once you have contacted your Realtor, and let them know you are looking for houses for sale in Bakersfield, they will go ahead and help you go through some pre-qualifying questions. Some pre-qualifying questions would be:

– Have you checked your credit?
– What is your income?
– How much debt do you have?
– What is your time horizon to buy?
– What part of Bakersfield would you like to buy in?

At Synergy, we aim to get to know our clients looking for houses for sale in Bakersfield, and help them through the transaction so there are as few bumps in the road as possible.

Thanks for your time,

Sanjeev (Sunny) Advani
Investor / Agent / Property Management

Why commercial real estate in Bakersfield?

Looking into other areas around California, you can see that prices have been steadily rising and are seeing pretty good returns in income as well, however, what is the price point for buy in? Are you ready to step into a $10M+ property?  Do you have the capital necessary?

Commercial Real Estate in Bakersfield can provide good returns with a minimal investment, comparatively.  For example, we are working on a development project currently that is going to yield around 15,000 Rentable square footage, and will command about $30,000/month in Rental income to tenants who will pay all other expenses as well.  Total project cost was around $120 per square foot.  This gives a gross yield of 22.5%, not to mention that once the project is completely leased we can go ahead and sell the building at a large profit.  At Synergy, we can provide services to make development easy, from financing to design, build, leasing and sales.  Commercial real estate in Bakersfield is our specialty and we are looking forward to helping you with your projects.

What about just purchasing a building for lease?

Our specialty at Synergy is to help our clients identify, lease, and maximize profits from Commercial real estate in Bakersfield.  We have the ability to give you lease comparables, and cost estimates to rehab buildings so that you have a good idea prior to purchase that you can make a tidy profit on the building.  After leasing the property, we can help maximize your returns by bringing in Property Management to make sure that you are getting the most out of your property and it stays in top condition into the future.  We have helped multiple clients increase not only their revenues from their buildings but also build equity in their buildings to be able to use on their next projects.

Sanjeev (Sunny) Advani
Real Estate/ Property Management / Investments

What Rentals Should You Be Looking At?

The hot topic of the rental market right now is the multi family market.  Prices everywhere have increased for multi family units and keep continuing to grow.  For example, in Bakersfield, a ‘C’ neighborhood property used to be available for $50,000 – $60,000/door and now they are selling for close to $100,000/door in some areas.

Part of this is due to investors from low return cities looking to earn a higher return a market that is close to theirs, for example, Los Angeles investors looking in Kern County, but now we are seeing a growth in a different segment of rentals.

The single family rental market has been growing steadily in the recent past and there are some good predictors that shows it could keep growing into the future.  Single family homes represent about 44 million units in the country right now, and of those, a little over 1/3 are used for rentals.  Not only that, but it seems like those numbers will increase into the future because housing prices keep rising, college debts keep rising, and people are waiting longer to have kids.

Although our largest growing sector of productive income earning individuals is the Millenials currently, we are seeing that instead of buying, they are preferring to rent because of the amount of money required for a down payment and the debt payments they have to make because of school, etc.

On top of this, almost half of the investment units owned in the US right now are owned by ‘Mom and Pop’ owners who own just one unit, and with real estate investing increasing in the long term, people are starting to purchase more units to help fund their retirements and have excess cash flow in the future.

The biggest problem with this strategy is possibly the management of these units, because if the units are not taken care of and one out of every three homes starts to lose value, then we can see values start to plummet over time.

Speaking about Bakersfield directly, there are a lot of ‘Mom and Pop’ investors that own less than 3 doors and will also self manage those units.  In that case, most properties seem to be well taken care of, however, there are some management companies that will let the unit deteriorate and the owner will be none the wiser because they are collecting their rent check passively and do not want to be hands on with the property.  This could provide a good opportunity for investors in the future, regardless of the lower pricing of Bakersfield to some other cities in California because people seem to want to rent more than own.

Sanjeev (Sunny) Advani
Realtor/ Property Manager/ Investor

Why Should You Buy Now?

There have been talks about the markets and how they are reaching new highs.  Other experts have said, “We are due for a recession.”  Real estate prices in California are at record highs, and seem to keep climbing.  So why would this be a good time to buy?

According to a survey of Real Estate Professionals across the country, we will continue to see prices increase more widely in the next year.  California is expected to increase in property value between 3-4% next year.  How is this so with market peaks already?

The problem comes down to a supply and demand issue.  If the supply is low, and the demand is high we will see a sellers market, which will mean that buyers are paying more for houses.  Based on 2016 numbers, we saw that a little less than 31% of homes sold at or above the listing price, while in 2017 we have seen that almost   40% of homes sold at or above the listing price.  So why not build more homes?

New construction has been spurred on, and if you look in the Kern County, specifically Bakersfield market, it seems as though there is new construction everywhere.  These houses are selling out quickly, and the builders are able to get premiums for these houses in many cases as well.

The problem is that there are not enough affordable houses being given in areas that are severely over priced with a mass amount of jobs, and in areas that are affordable, there are not enough high paying jobs to keep an influx of people coming in.  On top of this, there is a very lengthy process attached with building in California, and in order to counteract this we are seeing some loosening on regulations for mother-in-law units and additional unit construction on properties in some of the higher value areas.

All of this seems to point to home prices rising, which means that if they continue to rise and buyers wait to purchase then they will be paying more for their homes.  This is the reason why you should buy now.

Get into a home that will earn some appreciation over the next year, and try to get a home that yourself and your family will be happy with for the next 10 years so you can weather out any market corrections that happen in the meantime.

Until next time,
Sanjeev (Sunny) Advani
– Realtor/ Property Manager/ Investor

What is your ideal down payment?

Being in real estate, and helping buyers with their purchases I have been able to see a lot of peoples financial situations over the years.   We know that housing is very important, but in the recent past I have started to see a shift in the type of houses people have wanted to buy.  For example, no too long ago it seemed as though having the nicest house, in the best neighborhood, with the most square footage was the most important.  Now, it seems as if there is a shift.  Instead of going after the most square footage, it seems that families are looking fo the highest quality home they can get with the minimum space needs for their family.  Where putting the least amount of money down was important in the past (3.5% FHA), we are now seeing that people are willing to put more down on their primary residence so they can bring their home payment down.

In a recent study by American Financing, if given the choice between putting 10% – 30% down, the most popular down payment is 10%.   Looking at borrowers under the age of 35, it still seems the most common down payment would be less than 8% on average.  This tells us that people are looking to put down the minimum possible to get into their house, but they may also be willing to a little more down than in the recent past.

The American Financing survey also showed that renting is still less desirable than home ownership, and if people had their rent raised, by as little as $100/month, it would be a trigger to have them start looking at buying.  Also, the survey showed that married couples are more likely to start looking to buy within 2 years, versus single people who would be more likely to wait almost 5 years before purchasing.

What are your thoughts about down payment?  Do you understand how interest rates effect your payments?  Do you understand how Private Mortgage Insurance can effect your payments?

Feel free to ask your questions!

Until next time,

Sanjeev (Sunny) Advani
– Realtor/Property Manager/ Investor

Start Building Wealth By Mistake

Working in Real Estate, specializing in working with investors, I help people create and grow their wealth. Just today, I was speaking to a new investor that had just purchased his first single family income property, and was very excited, admittedly probably too excited.

When we first started digging into the numbers, it seemed apparent that he would end up making about $150-$200/month after paying the mortgage (Step 1), but I had to bring him back down to earth when talking about the other expenses that would be involved (i.e. repairs, maintenance, property management fees, etc.). Not to mention, if the tenant wasn’t up to par! What if they came in and tore up the place, only to leave you high and dry with a rental that needed to be fixed up just to rent out again?

Once adding in these expenses, he quickly realized that this may not have been the best investment to start with, and his Realtor was not as well versed in this topic as another Realtor might be. The magic came when he realized that he was able to find someone who did have the experience and could guide him to finding the right investment for him (Not saying I’m right all the time!).

His current investment might not be a gold mine, but with a little elbow grease and luck, he would be able to get a tenant in the property that would help him pay down the mortgage, thus creating equity, and would only be set back on the path to his real estate empire about 6 months! Once pressed even further to determine what his true real estate goals were, he was able to settle on the fact that he would like to own multi-family residential real estate (i.e. 2-4 unit apartment buildings). We then formulated a plan on how to achieve that goal within the next 6 months, and went on our way.

My goal in writing this is not to say that you should come work with me because I am a great Realtor. My goal in writing this was to show people who are hesitant to take the first step into investing, that you can achieve your goals even if there is a small set back (and there almost always is). I have never met an investor who doesn’t have a dozen horror stories to tell, but it always amazes me that their story always ends up the same.

Persistence – If you make a mistake, try and try again.

Patience – Just because you want it now, doesn’t mean it will happen now.

Education – Learn from your mistakes (AND those around you).

And finally, I would add, build a team.

I think this article is a great example of how having the right team behind you can make a big difference in your success, and timeline to success. If I had met this investor a few weeks earlier, he may have decided not to go with this property, and we may have been able to find him something that was more in line with his investment objectives, with a better return.

But at least he got started, and often times that is half the battle right there!

Until next time,

SanjeevAdvani — Real Estate Agent, Investor, and Property Manager


Freddie Mac V. Hedge Funds

Freddie Mac predictions for the CA real estate market show that we should have a healthy market continuing into 2018.  New home sales are supposed to be the “primary driver” of sales in 2018 and we should see about a 2% increase in sales, across the board.  They are also saying that we should see an increase of 4%+ in value, as compared to 2017 which we saw a 6%+ increase in value, due to the historically low interest rates mostly.  “The economic environment remains favorable for housing and mortgage markets,” says Freddie Mac chief economist Sean Becketti.

Now, on to the real news!

Does anyone see that large hedge funds are buying up real estate in droves?  And, who is able to come up with the downpayment on a $500K plus house (median house price in CA)?!

As a Realtor, I see that the market is on fire within FHA limits right now (<$275,665 for Kern County), but what about the houses above that limit?  There seems to be a lot of foreign money floating around the market right now, which is helping hold prices up.

The question becomes, is this sustainable, and if it is sustainable for now, who is going to own the houses in the future?

The problem isn’t that we are seeing an average increase of house prices around 5%/yr (average), but it is more a question of who is buying those homes?  If hedge funds (Blackstone *cough cough*) keep buying up houses at the rates they have been, they will control the inventory.  He who controls the supply, has all the control.  If they decide to buy these houses assuming that markets will increase, they will be able to rent out those houses to those people who already cannot afford mortgages (isn’t that what we all are on BP trying to do?!) but they will also be able to increase rents which, if done correctly can severely hurt renters ability to purchase homes.  In effect, it will create the renter society which we have been hearing all about.

Now, I understand that Blackstone, and all the hedge funds out there can’t own ALL of the real estate, and therefore the supply will not be totally dependent on them, but if they start raising rents in your area, and you are a landlord who is keen to the market, then why wouldn’t you start increasing rents as well?

For all of us investors, this sounds like a blissful market, and should set us on the track to achieve the goal to own as many doors as possible so we can join the goliath hedge funds of the market, and make the world rent from us!

The biggest problem here becomes: Aren’t we a country that was built on home ownership?

What happens when that key tenet is taken away from our people (mostly the middle class and below)?

Does it matter?

Share your thoughts!

Until next time,
Sanjeev (Sunny) Advani
– Realtor/Property Manager/Investor