Q3 2011

 

Sandalstone Group, LLC.

Highlights
Overall Market:  Rental markets in East Bay, California have recovered from this time last year.  Rents are being increased as leases expire - 100% Occupancy across all properties going forward* - normal tenant turnover filled in less than a month.

On the asset valuation side, East Bay market has shown bounce off the bottom - foreclosures and tight credit markets still make this an investor market albeit it at lower cap rates (higher prices) compared to two years ago - market mostly sideways - still holding...    
A three day fact finding trip to Las Vegas revealed that it exhibits similar characteristics to East Bay market of two years ago.  The overall take-way is that today Las Vegas offers an opportunity to secure better properties in nicer areas with a higher cap rate than in similar CA markets.  This discovery is leading to more investment in this market going forward.  
We closed on our first property in Las Vegas, and are in contract for TWO more!  Sandalstone also managed a purchase for a client during the Quarter in Las Vegas. 
Additional investment into Sandalstone and Clarameda Fund continued as investors enjoy the steady returns offered by the Company.  In total the Company raised $250,000 in new funds in Q3.  
Clarameda Fund, LLC:

  • Purchased first Single Family House in Las Vegas, NV
    • 3BDR, 2BA - $91,900 purchase price, $105,000 all-in rehab price.
    • Rented for $1050/month within two weeks of purchase
  • In Contract for two more homes with similar Pro-Forma characteristics, expected close November 2011.  
  • Built Operations team consisting of Agents, Property Management and Contractor/Handyman while leveraging existing Sandalstone resources
  • East Bay Operations - *Eviction of non-paying Section 8 tenant finalized, new tenant signed - move-in mid-October - full occupancy going forward.  
  • Continued record of paying 33 straight months of distributions of the Preferred amount to Partners.
  • Seeking additional Partners - check out the new Presentation which more fully describes the opportunity!

Investment Opportunities:

  • Instituted a 3% Note program, whereby investors get paid 3% rate of interest annualized and have the ability to ask for their money back at any time.  Sandalstone blocks off credit line to ensure its ability to pay back this note on demand.  
    • Raised $150,000 during the quarter - contact Biren for more information.   
  • Clarameda Fund is actively seeking new Partners.  This Company pays 6% plus 50% of profits.  Company has paid 33 straight months of distributions (plus Special Distributions which boost distributions in profitable years).  
    • Raised $100,000 in new money this quarter and added 2 new Partners.  

In Summary, this is an exciting time at Sandalstone Group, LLC.  The US Banking system is broken.  It used to be that banks would pay depositors about 3% and charge about 6% for mortgages.  Now banks pay depositors nothing and don’t know or care to make mortgages or loans - instead they buy Treasuries.  They certainly don’t know what to do with all the foreclosed homes in their possession - they are giving them away at dramatically reduced rates.  So what we are doing is filling this void:  

  • Sandalstone’s 3% Note program provides a way to earn a typical interest rate on “deposits”
  • Clarameda’s 6% PLUS profits offers you the chance to take over the mortgage business from banks PLUS make more money when housing markets recover.  

We encourage you to take action and call today to see how you can reasonably grow your investments in this turbulent time by taking advantage of this situation.   
Cheers!
Biren
Biren Talati
Managing Member
Sandalstone Group, LLC
650-799-4447
biren@sandalstone.com

HEADLINES

Smart Money: Has Housing Finally Hit Bottom
http://www.smartmoney.com/spend/real-estate/has-housing-finally-hit-bottom-1315004517071/?grcc=88888&mod=WSJ_hpp_sections_personalfinance

WSJ:  Why It's Time to Buy
http://online.wsj.com/article/SB10001424052702304563104576361522020024248.html
 
WSJ: Linkage in Income, Home Prices Shifts
http://online.wsj.com/article/SB10001424053111904253204576512532609819142.html#project%3DHISTORICMETROPRICE0811%26articleTabs%3Darticle

Zillow's 10 Best Places to Invest List
http://www.zillow.com/blog/research/2011/01/07/zillows-10-best-places-to-invest-list-as-seen-on-cnbc/

Inman: 10 Best Markets for Real Estate Investors
http://www.inman.com/reports/10-markets-invest/index.html