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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.

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.

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.

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.

Is the Bay Area Housing Market Cooling? The Bay Area housing market is undergoing a noticeable transition. After years of soaring prices and intense competition, current market conditions suggest a shift toward a more balanced landscape—one that could offer new opportunities for buyers, while prompting sellers and investors to reassess their strategies. While home sales are down compared to last year and inventory levels are on the rise, the market remains mixed across different subregions. In the South Bay and East Bay, home values have continued to climb, fueled by the AI tech boom and growing demand for larger homes with outdoor space. Meanwhile, areas like San Francisco and San Mateo County have seen home values dip in recent months, reflecting localized market corrections. As of May 2025, the average home value in the San Francisco-Oakland-Hayward region stands at $1,180,795—a slight year-over-year increase of 0.6%. The Bay Area’s median home price holds strong at $1.4 million. However, county-level data tells a more varied story: Marin County’s median sold price rose 4.7% to $1,885,000, while Napa saw a 6.8% decline to $920,000. San Francisco home prices jumped 6.6% to $1,801,000, but San Mateo experienced an 8.3% drop, settling at $2.2 million. Santa Clara County posted a 3.4% gain, with a median sold price of $2,171,125. Buyers are taking a bit more time, with the median days to pending now at 14. The unsold inventory index for the region has increased to 2.9 months (up from 1.9 months a year ago), a key sign of loosening market pressure. Rental prices remain high, with average rent in the Bay Area at $3,100 and $3,500 in San Francisco. Looking Ahead: 2025-2026 Forecast Market analysts predict a modest price decline in the coming year. Zillow projects a 5.2% dip in home prices for the San Francisco metro area by April 2026—more pronounced than in other major California markets like Los Angeles and Sacramento. Contributing factors include elevated home values, tech industry fluctuations, and ongoing out-migration. Mortgage rates, currently between 6% and 7%, are expected to ease slightly to 6.0–6.5% by the end of 2025, offering some relief to buyers. By late 2026, the market is expected to stabilize, with prices either leveling off or seeing modest growth. Key Drivers to Watch Several forces continue to shape the Bay Area market. The region’s strong economic foundation, led by the tech sector, attracts a highly skilled workforce and keeps demand relatively steady. However, the ongoing housing shortage—caused by geographical constraints and regulatory hurdles—continues to limit new supply. Remote work has also enabled more residents to seek affordability outside the Bay Area, altering traditional demand patterns. High mortgage rates remain a significant factor, impacting affordability and buyer behavior. At the same time, tech sector performance plays a key role—any instability can ripple through housing demand almost immediately. What This Means for You For buyers, the increase in inventory and a potential decline in prices may open up long-awaited opportunities—though affordability remains a concern due to elevated rates and high home values. Sellers should approach pricing realistically and be prepared for more competition. Meanwhile, investors may still find value in the Bay Area thanks to its strong long-term fundamentals, but local expertise and careful analysis are more critical than ever. In summary, the Bay Area housing market is adjusting. A crash remains unlikely, but the days of aggressive bidding wars and double-digit appreciation may be behind us—for now. Staying informed, working with trusted professionals, and understanding local trends will be key to navigating this new chapter.

National Security Risk? The Trump administration has announced a sweeping initiative to prohibit Chinese nationals and other foreign adversaries from owning U.S. farmland, citing national security concerns. Agriculture Secretary Brooke Rollins introduced the “National Farm Security Action Plan” on July 8, standing with Cabinet members, Republican governors, and congressional leaders in Washington, D.C. Rollins stated that the administration will pursue both legislative and executive actions to not only ban future purchases but also reclaim farmland already acquired by entities linked to countries like China. “Farm security is national security,” Rollins declared, emphasizing the growing need to protect the agricultural sector from foreign influence. The seven-part plan outlines a coordinated federal effort, involving agencies such as the Department of Defense, Department of Homeland Security, and the Department of Justice. One major component includes the creation of an online tool that allows farmers and stakeholders to report suspicious or unclear foreign ownership of agricultural land. The administration also intends to tighten biosecurity protocols, prevent misuse of agricultural supply chains for illicit activity, and ensure that foreign governments cannot access USDA funding or research grants. As part of the initiative, Rollins will join the Committee on Foreign Investment in the United States (CFIUS) to help oversee foreign agricultural investments. One high-profile example of foreign ownership includes Smithfield Foods in northern Missouri, acquired in 2013 by China’s WH Group. That operation spans more than 40,000 acres. While Missouri law currently permits foreign ownership of up to 1% of farmland, a new federal ban could force the sale of such properties. At the announcement event, Republican governors expressed strong support for the plan. Arkansas Governor Sarah Huckabee Sanders underscored that a nation must be able to “feed itself, fuel itself, and fight for itself” to maintain independence. Tennessee Governor Bill Lee added, “Our farmland is not just dirt. It is our national security.” The administration’s stance comes amid growing concern about foreign influence over critical infrastructure. While Chinese ownership represents only a fraction of foreign-held U.S. farmland — approximately 276,000 acres, or about 0.02% according to the American Farm Bureau — officials maintain that any level of influence from foreign adversaries poses a risk.

Will Eliminating Capital Gains on Home Sales Unlock the Housing Market? The “No Tax on Home Sales Act,” recently backed by President Trump and introduced in Congress by Rep. Marjorie Taylor Greene, has the real estate world on alert — and for good reason. If passed, it could reshape the housing landscape, particularly in high-cost states like California, New York, and Hawaii. Currently, homeowners who sell their primary residence can exclude up to $250,000 in gains if filing as a single individual or up to $500,000 if married. While these thresholds once covered most sales, home values in many areas have far outpaced them — leaving some longtime owners facing tens, if not hundreds, of thousands in tax liability when they try to sell. In San Francisco, for instance, a home purchased for $300,000 in 2000 may now be worth $1 million. That’s a $700,000 gain — and under today’s rules, at least $200,000 of that could be subject to capital gains tax. For older homeowners looking to downsize, relocate, or simply cash out their equity, this tax burden can be a serious barrier to making a move. It’s not just about taxes. It’s about inventory. The real estate industry has long argued that outdated capital gains exclusions are keeping high-equity homeowners “stuck” in homes they no longer want or need. In tight markets like California, where demand outpaces supply, freeing up this housing stock could inject much-needed inventory. But the implications are broader: unlocking these homes could also increase mobility, reduce reliance on home equity loans, and help retirees transition more easily. Yet not everyone agrees on the ripple effects. Critics warn that such a change could exacerbate affordability issues by flooding the market with affluent buyers competing for smaller, lower-cost homes — the same homes sought by first-time buyers. This unintended consequence could put more pressure on young families and lower-income earners, especially in urban and suburban markets already struggling with affordability. According to Cotality, nearly 30% of California home sales in recent years exceeded the $500,000 gains threshold, compared to less than 5% in 18 other states. The National Association of Realtors estimates about 10% of homeowners across the U.S. are affected — a number that’s rising in step with home values. The bigger question may be: is it time to modernize the tax code? The $500,000 capital gains exclusion for married couples hasn’t changed since 1997. If it had been indexed to inflation, it would be over $1.13 million today. For many in today’s market, you don’t need to be “rich” to own a million-dollar home — especially in the Northeast and on the Pacific Coast. Whether the exemption is eliminated or simply raised, change seems inevitable. And with it, we could witness a dramatic shift: older homeowners finally listing long-held properties, empty nesters downsizing without tax fears, and more inventory hitting a market that desperately needs it. If the bill gains traction, California and similar states could experience a wave of listings from longtime homeowners who’ve been waiting for the right moment to move. For professionals and policymakers alike, understanding these trends will be crucial in preparing for what could be a major reshuffling of the housing market. If you have questions about how your home equity or future plans may be impacted by this proposal, or if you're considering downsizing or selling, now is the time to stay informed. Let’s connect and discuss what this could mean for you.