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Thinking of Building? What You Must Know About Land Purchase Finding your dream home can be a challenging journey. You may spend countless hours browsing online listings, attending open houses, and exploring neighborhoods, only to come up empty-handed. If your perfect home simply doesn't seem to exist, perhaps it's time to consider building it from the ground up. Purchasing a vacant piece of land might be the ideal solution. However, before you start envisioning your dream home's foundation, it's important to recognize that buying land can present more challenges than purchasing an existing home. From easements and zoning restrictions to environmental conditions, unexpected surprises could turn your dream project into a sizable headache. Whether you're buying vacant land to build your forever home or to make a profitable investment, it's essential to approach the process with care. Here are some key do's and don'ts to guide you: Do's: Work with a Real Estate Agent: An experienced agent can help you find the right piece of land and navigate the complexities of the purchase. Get Your Finances in Order: Make sure your financial situation is solid before moving forward, as land purchases can come with unique costs. Consider the Neighborhood's Value: Research the value of homes in the area to ensure your investment makes sense in the long term. Check Utilities and Road Access: Ensure the land has access to essential utilities and is easily accessible by road. Look into Incentives: Some areas offer incentives for building new homes, which could be beneficial to your budget. Don'ts: Don't Rely on a Traditional Loan: Securing a loan for land purchases can be difficult, so explore alternative financing options. Don't Skip Environmental Tests: Conduct thorough environmental testing to avoid costly issues later. Don't Overlook the Survey: A detailed land survey is crucial to understanding property boundaries and potential issues. Don't Neglect to Talk to Neighbors: Nearby residents can provide valuable insights into the land and the community. Don't Assume You Can Rezone the Property: Zoning laws are often strict, so verify that the land is zoned for your intended use. By following these guidelines, you can make a well-informed decision and avoid buyer’s remorse. Building your dream home on vacant land may be the perfect way to achieve your vision, but it requires careful planning and consideration. When purchasing vacant land, thorough due diligence is crucial to avoid costly surprises and ensure your project’s success. What are the key Due Diligence items? Property Condition Assessment ✔ Plans and Specifications ✔ Flood Map ✔ Seismic Report ✔ Capital Spending Analysis ✔ ADA Compliance ✔ Code Compliance ✔ Engineering Report ✔ Geotechnical Report ✔ Maintenance Logs ✔ Utilities in Place ✔ Area Calculation ✔ Inventory of Personal Property ✔ Parking Analysis Environmental Site Assessment ✔ Historic Phase I Reports ✔ Indoor Air Quality ✔ Water Testing ✔ Phase II, if applicable ✔ Mold Assessment ✔ Lead-based Paint Assessment ✔ On Site Hazardous Materials Legal, Entitlement, Insurance ✔ Zoning Certification ✔ Conveyance Deed ✔ Certificate of Completion ✔ Certificate of Occupancy ✔ AIA Certification ✔ Warranties ✔ List of Legal Actions ✔ List of Insurance Claims ✔ Notices of Condemnation ✔ Survey Review ✔ Title Report ✔ List of Structural Modifications ✔ Service Contracts ✔ Insurance Certificates ✔ SNDA from Major Tenants ✔ Estoppel from Tenants Is Buying Vacant Land Worth It? Purchasing vacant land offers the chance to build your dream home or make a smart investment, but it comes with challenges. Unlike buying a house, where you know what to expect, land can have hidden issues like zoning restrictions, utility access, and building code limitations. To avoid costly surprises, it's crucial to thoroughly research the plot and work with a land expert. A land expert can navigate the complexities, identify potential pitfalls, and ensure that the land meets your needs, making your investment worthwhile. With their guidance, you can confidently move forward with your plans.

3 Reasons Developers/Builders Are Not Concerned 1. California’s Housing Demand Continues to Outpace Supply California, the world’s 5th largest economy, faces an ongoing housing shortage that has persisted for decades. This shortage is driven by a combination of factors, including population growth, a strong economy, and the state’s natural appeal. California’s population continues to grow, increasing the demand for housing in already tight markets. Its robust economy, particularly in industries such as technology and entertainment, makes it a desirable place to live and work. Furthermore, the state’s pleasant climate and breathtaking natural surroundings remain a draw for new residents. However, meeting this demand has proven challenging. California has been slow to build new homes, and the gap between supply and demand has widened significantly. Construction costs have risen due to expensive materials, especially in the wake of the pandemic. A shortage of skilled labor and limited land availability in key areas only add to the difficulty. As a result, California continues to experience rising housing prices and persistent shortages, further highlighting the strength and stability of its housing market. 2. New Building Codes Enhance Fire Safety and Affordability California’s 2024 Fire Codes are transforming the way new homes are built. These updated codes emphasize fire-resistant materials and construction practices, significantly reducing risks associated with wildfires. Builders and insurers alike have embraced these changes, with insurers offering lower rates for homes built under the new standards. This shift is good news for prospective homeowners. New builds will not only be safer but also easier and more affordable to insure compared to older homes. As California continues to implement and enforce these codes, the housing market will benefit from increased confidence and stability. For a detailed look at these fire codes, visit gbdmagazine.com/california-fire-code 3. California’s Swift Insurance Reforms Provide Stability In a landmark move, California has introduced new regulations to stabilize and expand insurance coverage in high-risk areas. Insurance Commissioner Ricardo Lara unveiled reforms aimed at addressing the challenges faced by homeowners in wildfire-prone regions. These regulations require insurers to provide greater coverage in underserved areas while limiting the costs passed on to consumers. Under the new rules, insurance companies must expand their comprehensive coverage in high-risk areas to at least 85% of their statewide market share. This level of commitment ensures that more Californians will have access to reliable insurance options. Additionally, the state now allows insurers to factor reinsurance costs into rate calculations. Reinsurance, which enables insurers to share the risks associated with high-risk properties, is a common practice in other states. By modernizing these regulations, California has created a more resilient insurance market that benefits both providers and homeowners. Governor Gavin Newsom praised the reforms, calling them a critical step in fixing California’s decades-old insurance challenges. These changes, part of the state’s broader “Sustainable Insurance Strategy,” represent the most significant updates to California’s insurance policies in 30 years. A Stronger, Safer Future California’s housing market remains robust, bolstered by high demand, improved building standards, and transformative insurance reforms. These efforts not only address immediate risks but also create a foundation for long-term stability and growth. If you have questions about navigating the housing market or need assistance, feel free to reach out. We’re here to help guide you through the evolving landscape.

Why Smart Investors are Snapping up Land in 2025 In real estate, everything begins with land. Yet, despite being the foundation of every property transaction, land acquisition remains one of the most underutilized investment strategies. As we step into 2025, shifting economic conditions, population trends, and regulatory changes are positioning land as a high-potential asset class for forward-thinking investors. Housing demand is accelerating due to sustained population growth, rapid urbanization, and a persistent housing shortage across the U.S. For instance, the nation currently faces a shortfall of nearly 3.8 million housing units. Cities like New York have expanded their housing stock by 8% in the past decade, while booming metro areas in Texas, such as Houston and Austin, have issued hundreds of thousands of building permits to keep up with growth. Still, the supply is not catching up fast enough, creating a sharp upward pressure on land values—particularly in suburban and regional areas where development is expanding. This demand-driven climate is amplified by significant zoning reforms and government-backed incentives. Municipalities across the country are updating zoning regulations to encourage higher-density and mixed-use developments. A notable example is Charlotte, North Carolina’s Unified Development Ordinance, which permits multifamily housing in previously single-family zones, aligning with broader goals for sustainable growth. At the federal level, updates to the Opportunity Zones program are underway, with renewed efforts to incentivize investments in economically distressed areas. These shifts are transforming previously overlooked or restricted parcels into lucrative development opportunities. By enabling higher-density builds and mixed-use projects, these reforms directly increase land value and potential return on investment. For investors, the takeaway is clear: the land acquisition landscape is evolving rapidly, and those who stay ahead of the curve can unlock substantial value. Monitoring zoning changes, understanding regional growth patterns, and identifying areas benefiting from legislative incentives will be key to capitalizing on this emerging trend. In a market where timing and location are everything, land has reemerged as a powerful and strategic asset class for those ready to invest in the future.

The Affordable Housing Option You Might Already Qualify For In the face of California’s rising housing costs, Below Market Rate (BMR) housing programs offer a meaningful solution. These programs provide affordable homes to individuals and families who meet specific income requirements, often allowing qualified buyers or renters to pay as little as 30% of a home’s retail market price. BMR housing refers to homes that are intentionally priced below market value. These homes are made available through local government programs and are typically aimed at low to moderate-income households. Many cities implement inclusionary zoning ordinances, which require developers to designate a percentage of units in new housing projects as BMR. This ensures that a portion of new construction remains accessible to working families. Eligibility is based on household income, often calculated as a percentage of the Area Median Income (AMI). Those earning between 50% and 120% of the AMI may qualify, depending on the city or county's guidelines. BMR programs can be for rentals or homeownership, and many ownership programs prioritize first-time buyers. Programs such as the City of San Francisco’s BMR Ownership Program help eligible residents purchase homes at below-market prices. These homes remain in the BMR system, meaning they can only be resold at restricted prices to keep them affordable for future qualified buyers. BMR housing represents a powerful and practical approach to addressing California’s affordability crisis. It is designed to help people—educators, healthcare workers, public employees, and others who form the backbone of our communities—put down roots in the places where they work and live. Affordable housing is more than a policy—it's an opportunity to create stability, equity, and lasting impact for families across California. Don’t let the high cost of housing keep you or a loved one from achieving stability and homeownership. Reach out to your local experts to guide you towards the first step toward building a more secure future.

We're Here to Serve Red Day - A Day of Giving at Sacred Heart in San Jose On RED Day, Danielle, Ruth, Sab, and the rest of the KWBAE family joined forces at Sacred Heart to distribute food, clothing, and essential supplies—serving 555 families in a single, powerful day of giving. Seeds of Hope Silicon Valley - Triath-A-Lawn Fundraiser The entire Davenport Real Estate Group proudly represented as the exclusive broker for Seeds of Hope Silicon Valley (501c3). Seeds of Hope is committed to building a supportive housing community where individuals experiencing homelessness can live with dignity—in a safe, connected environment that fosters healing, growth, and a true sense of belonging. Together, we’re not just giving back—we’re helping build the foundation for lasting change. 💙 https://www.seedsofhopesv.org/ Compassion Center Gilroy Danielle has been working with the team to try and secure an easement for a new site. St. Joseph’s Family Center and South County Compassion Center are partnering in a joint vision to alleviate community poverty, diminish food and housing insecurity, strengthen the safety net for the most vulnerable, and provide essential support to the unhoused population. Our goal is to offer fresh opportunities for stability and a pathway to permanent housing, ultimately fostering a thriving community where all residents can enjoy an improved quality of life. https://www.thecompassioncenter.org/

Life Insurance and Retirement Funds In today's evolving financial landscape, savvy investors are exploring alternatives to traditional savings and retirement accounts. Two powerful vehicles gaining attention are Self-Directed IRAs (SDIRAs) and whole life insurance policies. While often overlooked, these tools offer strategic advantages for those looking to build and leverage wealth—particularly within the real estate sector. What is a Self-Directed IRA (SDIRA)? A Self-Directed IRA allows individuals to invest in a broad range of assets beyond stocks and mutual funds, including real estate, precious metals, and private lending. This flexibility enables investors to align their retirement strategies with markets they understand, such as purchasing rental properties or funding real estate developments. It provides tax-advantaged growth while putting the investor in full control of their investment choices. Whole Life Insurance: More Than Just Protection Similarly, whole life insurance has evolved far beyond its traditional role as a death benefit. When structured correctly, it can serve as a powerful financial reserve. These policies accumulate cash value over time, which can be borrowed against without triggering taxes. This makes it an attractive option for investors seeking liquidity to seize time-sensitive real estate opportunities. Rather than turning to banks for financing, policyholders can act as their own lender, funding deals while keeping their money compounding in the background. Using Insurance to Fund Real Estate Opportunities A podcast recently highlighted the smart—and surprisingly underutilized—tactic of using whole life insurance as a tool to store wealth. Not just for protection, these policies can actually act as your own personal bank, allowing you to borrow against the cash value when opportunity strikes, such as purchasing real estate. Check out the podcast  HERE This strategy is especially relevant for those in the real estate world. Why depend solely on mortgage lenders or traditional financing when you can use a whole life policy or an SDIRA to invest in property on your terms? It’s all about making your money work in multiple ways—stacking financial flexibility with long-term growth. Both SDIRAs and whole life insurance policies emphasize control, flexibility, and long-term growth, but they serve slightly different purposes. SDIRAs open the door to a wider array of retirement investments, while whole life insurance offers a dependable and accessible source of capital, free from age restrictions or early withdrawal penalties. A Strategic Combination for Real Estate Investors For real estate investors, the combination of these two strategies can be a game changer. Together, they provide a robust foundation for building wealth, increasing liquidity, and ensuring that financial decisions are driven by opportunity—not limitation. When used wisely, SDIRAs and whole life insurance offer a blueprint for financial freedom and empowered investing.

Resources for your Farm (Grants, Knowledge, Support) What is an RCD? Established under Division 9 of the California Public Resources Code, Resource Conservation Districts (RCDs) are local entities created to protect and manage natural resources. Their primary focus includes conserving soil and water, managing runoff, preventing erosion, safeguarding water quality, managing watersheds, and supporting water storage and distribution efforts. RCDs are special districts of the State of California, governed locally by independent boards of directors who are either elected or appointed. These districts operate as non-regulatory agencies, working directly with landowners and communities to promote responsible resource management and education on both public and private lands. Serving as crucial connectors between federal, state, and local conservation initiatives, RCDs help coordinate and implement a wide range of resource management activities, including: Water quality protection and enhancement Agricultural land conservation Soil and water management Irrigation management RCDs play a vital role in advancing sustainable practices and building resilient communities through hands-on conservation efforts and collaboration across all levels of government. Feel Free to contact Danielle as she is Board of Director's Vice President of SCC Loma Prieta RCD. Understanding the USDA, FSA, NRCS, and CRP The United States Department of Agriculture (USDA) and its agencies—the Farm Service Agency (FSA) and the Natural Resources Conservation Service (NRCS)—are federal organizations committed to supporting farmers, ranchers, and landowners. These agencies provide vital resources, including grants, technical assistance, and educational programs, to promote agricultural success and sustainability. See some of the organizations below: https://www.usda.gov/ https://www.fsa.usda.gov/ https://www.nrcs.usda.gov/ https://www.fsa.usda.gov/resources/programs/conservation-reserve-program A Primer on CRP The Conservation Reserve Program (CRP), administered by the Farm Service Agency (FSA), is a voluntary program that encourages agricultural producers and landowners to convert highly erodible and other environmentally sensitive acreage to vegetative cover, such as native grasses, trees, and riparian buffers.   By enrolling in CRP, participants receive annual rental payments and cost-share assistance to establish long-term, resource-conserving vegetative covers. The program helps to improve water quality, control soil erosion, and enhance wildlife habitat, contributing to overall environmental health and sustainability.

Offset Ordinary Income and Capital Gains Qualifying for Real Estate Professional Status (REPS) can open the door to substantial tax benefits for real estate investors. Recognized by the IRS, this designation allows individuals to offset rental losses against other forms of income, providing a powerful strategy to significantly reduce overall tax liability. One of the key advantages of achieving REPS is the ability to treat rental losses as non-passive. Typically, rental losses can only offset passive income, but those who qualify for REPS can apply those losses to active income streams such as wages, business income, or investment gains. These losses may arise from mortgage interest, property management fees, maintenance expenses, and depreciation—offering multiple avenues for tax relief. Depreciation, in particular, is a crucial tool in the real estate investor’s arsenal. It enables property owners to deduct the cost of their buildings and improvements over a period of time. For real estate professionals, strategies like Cost Segregation can accelerate these deductions. Cost Segregation involves analyzing and reclassifying property components into shorter depreciation categories, allowing investors to claim more significant deductions in the earlier years of ownership. This method not only enhances early tax savings but also improves long-term cash flow. Another critical benefit of REPS is the requirement for active participation in managing real estate investments. This active involvement provides greater control over property performance, ensuring that decisions made can directly impact profitability while also meeting IRS criteria for the status. For those investing in California, there may be questions about the availability of Cost Segregation within the state’s regulatory framework. The good news is that Cost Segregation is fully accessible across all 50 states, including California. As a state that aligns with federal tax codes, California recognizes and supports the use of Cost Segregation studies. This means that property owners and businesses operating in the Golden State can take full advantage of accelerated depreciation techniques to optimize tax outcomes and enhance liquidity—without stepping outside legal or jurisdictional boundaries. In summary, Real Estate Professional Status combined with a strategic approach like Cost Segregation offers powerful tax planning opportunities. For those looking to maximize the return on their real estate investments, understanding and leveraging these tools can result in significant financial gains—especially when guided by a knowledgeable team of tax professionals.

Farms are "Hot"! A unique and potentially rewarding opportunity for investors seeking diversification, long-term growth, and protection against inflation. Yes, farmland is increasingly seen as a "hot" investment, especially in today’s economic climate. A number of key factors contribute to its growing appeal among both individual and institutional investors. ⁣ Farmland provides a compelling way to diversify beyond traditional stocks and bonds, since its value often moves independently of broader market fluctuations. This can make it a more stable and resilient asset, particularly during times of economic uncertainty. Historically, farmland has delivered strong and consistent returns, fueled by both land appreciation and income from rent or crop sales. ⁣ It also acts as a natural hedge against inflation. As the prices of food and agricultural commodities rise, so does the value of the land producing them, helping protect investors’ purchasing power. Global demand for food continues to grow, driven by population increases and limited arable land—factors that push farmland values higher. Meanwhile, the overall supply of productive land is shrinking due to urban development and environmental pressures, further enhancing its value. ⁣ New technologies in agriculture, like precision farming and regenerative practices, are improving yields and making farmland a more attractive and sustainable long-term investment. Institutional investors, such as pension funds and university endowments, are now actively allocating capital to farmland, drawn by its strong performance and low volatility. For individual investors, farmland can also offer consistent cash flow through lease income or direct operations, along with potential tax benefits such as deductions and capital gains deferrals.

Real Estate Faces a Surplus Like Never Before The real estate market is experiencing a significant shift—one that could mark a turning point for buyers and sellers alike. According to a recent Wall Street Journal article, there are now approximately 500,000 more home sellers than buyers nationwide. This is the largest recorded gap since 2013, when this data began being tracked. After years of a seller’s market characterized by bidding wars and soaring prices, the dynamic has officially changed. Many sellers are entering the market due to life transitions, concerns about future price drops, or rising costs associated with owning second homes or investment properties. However, on the buyer side, demand is lagging. Home prices are still high—up more than 50% over the last five years—and mortgage rates continue to hover above 6.5%. Together, these factors are making it harder for many to enter the market. This new reality may offer a window of opportunity for serious buyers. With more homes on the market, buyers are seeing price cuts, closing cost assistance, and fewer bidding wars. Meanwhile, sellers may need to reconsider pricing strategies and be more flexible in negotiations. Whether you're considering buying or selling, it’s worth staying informed and adjusting your strategy accordingly. The tides are turning—and in today’s market, timing and perspective matter more than ever.

Unlock the Hidden Value in your Property with ADUs Did you know that you can add up to eight Accessory Dwelling Units (ADUs) on qualifying multifamily lots—often at a much lower cost per door compared to purchasing new units? In 2025, California introduced significant changes to its ADU (Accessory Dwelling Unit) laws—dramatically increasing the potential for multifamily property owners. Thanks to SB 1211, qualifying multifamily lots can now include up to eight detached ADUs—one per existing living unit, capped at eight. This is a major leap from the previous limit of just two detached ADUs. What makes this even more powerful? The new law mandates that all municipalities must offer pre-approved ADU plans and implement a streamlined approval process . That means faster approvals, fewer bureaucratic headaches, and quicker paths to added value. Even better, the law now makes it easier to legalize previously unpermitted ADUs by providing a checklist of upgrade requirements. And for those thinking about exit strategies, certain jurisdictions now allow ADUs to be sold separately from the primary residence via condominium conversion. Plus, with AB 976 permanently removing owner-occupancy requirements, investors can rent out ADUs without needing to live on the property themselves. I’ve been working closely with Greg Popovich at ADU4life, Inc., exploring strategies to help my multifamily clients capitalize on these powerful updates—and right now, the laws are working in your favor . Together, Greg and I have identified ways to significantly increase your property's equity by building ADUs in underutilized areas—like above carports, in underused land, and other smart, code-compliant locations. This is a rare opportunity to boost both value and cash flow while regulations remain favorable. As a courtesy to my clients, Greg is offering a free initial consultation and strategy session. Just visit www.adu4life.com and fill out the contact form. Be sure to mention you’re a client of mine or received this message—Greg will prioritize your request and get back to you as soon as possible. 🚨 Don’t wait—this window of opportunity won’t stay open forever.

Foreign Buyers Reshape California's Housing Landscape In recent years, foreign purchases of California homes have become a powerful force shaping the state’s real estate market. While once seen as a niche segment, international investors now play a central role in influencing housing demand, pricing trends, architectural preferences, and even cultural dynamics. With California’s global appeal—especially in cities like Los Angeles, San Francisco, and Irvine—it’s no surprise that its housing market continues to attract deep pockets from abroad. The Rise of the All-Cash Buyer All-cash offers, long considered a marker of foreign buyers, now stem from diverse sources. Wealthy individuals, retirees liquidating assets, and private investment firms are increasingly bypassing traditional financing. At the height of the foreclosure crisis, over one-third of homes in California were purchased with all cash—many by institutional investors. But today, experts suggest foreign buyers are having an even greater impact on the market, particularly in the rise of single-family rentals. Still, hard data on foreign ownership remains elusive. California property deeds don’t require citizenship disclosure, so analysts use proxies—such as tax addresses outside California and cash purchases—to estimate foreign involvement. The California Association of Realtors (CAR) estimates 3% of last year’s purchases went to international buyers, though this is likely undercounted due to language and timing barriers in surveys. Who Are These Buyers—and Where Are They From? Chinese investors, often associated with the EB-5 visa program, have shown particular interest in California. In fact, 40% of all Chinese home purchases in the U.S. occur in the Golden State. Though Canadians historically outpaced Chinese buyers nationwide, Chinese buyers dominate in California, representing 71% of foreign transactions compared to 14% from Latin America. While some homes are used as primary residences, many serve as investment vehicles, vacation homes, or student accommodations. Even as China tightens capital controls, industry insiders like Lin He believe buyers will continue finding creative ways to move money into U.S. real estate. The motivations are clear—compared to Beijing, California homes are often seen as a “bargain,” with the added bonus of political and financial stability. Vancouver’s Example: Can California Follow Suit? British Columbia’s response to foreign ownership offers a cautionary tale. After requiring citizenship disclosure and implementing a 15% foreign buyer tax, Vancouver saw home prices drop 20%—albeit temporarily. While foreign investment declined, prices eventually rebounded, suggesting that taxes alone aren’t a silver bullet. California has yet to implement a similar tax. Partly, this is due to a lack of concrete data. But it’s also a reflection of California’s diverse and globally connected population—many of whom straddle the line between "foreign" and "new American." Policy solutions must therefore be nuanced, targeting speculative investment without penalizing legitimate migration and community-building. Managing Market Volatility Foreign capital flows can amplify market volatility. While this can benefit investors riding an upswing, it creates uncertainty for long-term residents and middle-class buyers. Strategic risk management—from diversified portfolios to hedging strategies—is now a must for serious investors navigating California’s complex housing terrain. For policymakers and stakeholders, this underscores the urgency of developing targeted regulations that promote both market stability and fair access to housing. A Market in Motion Foreign investment is reshaping California real estate from every angle—economic, cultural, and architectural. It has become a double-edged sword: a source of opportunity and growth, but also a trigger for housing affordability crises and social tension. For California to thrive, state leaders, industry players, and community advocates must come together to craft policies that balance global investment with local well-being. Only through inclusive, data-informed, and forward-looking strategies can California remain both a magnet for international capital and a livable home for all its residents.