Posted on May 11, 2008 @ 3:38 pm - Written by BawldGuy
It’s always difficult when such a true blue market finally turns its back on us. But that’s exactly what California income property has done to all of us. Since shortly after the end of WW II, California real estate has been the original Gravy Train Express for investors. Alas, those who’ve turned the page, knowing that train just ain’t runnin’ any more, have gone on to more promising returns.
It’s easy San Diego and California real estate investors — just repeat to yourself until it becomes real — it’s over, it’s over, it’s over…
The days of California investment real estate as our personal ATM machines are no more. Think Texas. Think Kansas City. Think, well, you get it now, don’t you? Just don’t think the Golden State. And if your equity remains here, it’s not too late to get your capital growth train back on the tracks. Yer just a 1031 tax deferred exchange away from hoppin’ on board the new and improved Gravy Train.
Don’t stand by and allow your retirement plans be derailed indefinitely. Allow me to create a Purposeful Plan tailored to your personal goals and retirement income requirements.
Get in touch with me this week, and we’ll figure out how you might proceed. There’s still a Gravy Train for you out there. It’s just not goin’ 300 MPH, and it’s surely not in California.
Roy agrees. The California real estate market doesn’t love the real estate investor any more.
Posted on May 10, 2008 @ 11:36 pm - Written by BawldGuy
If you wanna find out what ‘through thick and thin’ means in terms of application, most moms qualify as role models. I know mine sure does. Having just turned 77 last month she still works out regularly, signs up my local clients when their loan docs are ready, and makes Josh and I lunch on Thursdays. We call it Lunch At Mom’s. We get home cooked meals, get to hear great and sometimes forgotten family tales, and hugs from Mom (Grandma) when leaving.
So often it’s Mom who gets you through those tough spots in life when there’s not much anyone can do. They have that sixth sense mom’s have about what to do and say when their kids need ‘em.
She’s the one whose voice came through the crowd in Little League when, as a pitcher I couldn’t get a break. ‘Calm down’ in the soft, yet strong voice wafted through the din. Immediately calm. Figured a way for me to get my band uniform when, as a freshman I surprised everyone, mostly myself, by making the traveling marching band in a high school known regionally for their band. Oh, not impressed? That year at the Long Beach All Western Parade and band competition we took fifth place — out of all the high school bands in the 11 western states. In a word? We’re were flat out bitchen.
A single mom with kids in the 50’s and 60’s was no walk in the park, but she pulled it off. Looking back as a man with grown kids, I simply have no idea how she did it. She flat took care of business. If there’s ever a role model for true blue, take a bullet for the team, loyal to the end, don’t irritate the mother bear, mom? She’s it.
She’s never wavered in her faith in me, and there have been times when it made the difference. She and Grandma, along with her sisters, incredibly strong women all, are the reason strong women don’t scare me, and never have. I love strong women to death. Married one. You’ve heard her referred to here as The Boss, a term you should take the way it’s intended, which is literally. Upon meeting for the first time she asked me if I was intimidated by strong women. I laughed out loud, then told her I’d remind her she asked me that after she met Mom and her sisters.
My ability to remain calm in the storm while everyone around is running for cover, is a direct result of watching her in real life. The pressures of investment real estate? A joke compared to the pressure under which she consistently performed. Much of what I am today is due to watching her step up to the plate with the game on the line. The difference? It wasn’t a game, it was real life, with two kids depending on Mom comin’ through. Seems she’s been doing that most of her life. We should all have her batting average.
Mom reminds me so much of Grandma.
Happy Mother’s Day, Mom. I love you.
The following is offered as a warning to sons everywhere. If yer gonna have Mom on national live TV, you might wanna ensure you’ve been spending some time with her. Ya think she’ll be on next year?
Posted on May 9, 2008 @ 11:52 pm - Written by BawldGuy
The funny thing about counting on the past as a future predictor is how some will attribute circumstances to history that simply belong in a piece of fiction. Here’s a challenge. Tell me how the last eight years is repeating any part of our San Diego or California real estate history. Take yer time.
Give yourself a break and don’t waste precious weekend time on what amounts to a bar bet. We on the west coast have relied on one common thread, regardless of whatever slowdown was our current reality.
Here’s a speed of light review of the last 30+ years of San Diego real estate history. Read the rest of this entry »
Posted on May 8, 2008 @ 11:13 pm - Written by BawldGuy
Lately some have asked how many of these axioms there are. I don’t know. There’s a bunch though, and many have been taken from Dad and other mentors, some of whom were literally industry giants. I can claim originality on none of them, as they’re time tested over literally centuries — at least most of them. Come to think of it, I’ve been told my paraphrasing on many of them is original.
Here are a few.
BawldGuy Axiom: About the time the farmer trained the ol’ mare to work without eating — she died.
We can fool ourselves all we want when it comes to where, when, how, what, and why we invest in real estate. We can even appear to defy gravity for periods of time. Sooner or later though, Investment Physics win out. The core, or maybe better said, foundational principles of real estate investment are defined as such for a reason. As has gravity. Being a contrarian as I am much of the time, is one thing. But you’ll notice you’ve never seen me jump off a roof expecting to fall sideways. So sure, we can get a starving horse to work for us — until she dies. Then where are we?
BawldGuy Axiom: The words ‘Free & Clear’ have no magical powers. In fact they’re often the central figures in Grandpa Economics’ unintended consequences: Not a retirement supporting the Golden Years, but rather a mind numbingly financial life sentence. (See Grandpa Economics podcast.)
Grandpa retired with a retirement income quadruple his salary when he was 35 and a free and clear home. Read the rest of this entry »
Posted on May 7, 2008 @ 9:27 pm - Written by BawldGuy
Caveat: There’s an old saying that says you shouldn’t buy real estate solely for the tax shelter. I’ve seen some exceptions to that rule. But just a handful, and they tended to prove the rule, not otherwise. Yer gonna get some tax shelter whether you want it or not. Of course, if you don’t want yours, we can talk.
Let’s all get on the same page first. What is tax shelter in real estate terms? Simply put, depreciation is the loss of value of your building. Land isn’t depreciated because it doesn’t wear out. Even better, depreciation shows up on your tax return as a loss — one you didn’t feel, ‘cuz it’s also known as a ‘phantom loss’. Make sense? You didn’t really lose any money — it’s a paper loss only. Yet you get to claim you lost money.
How cool is that? You mean you never got the memo?
This loss saves you money through income taxes you now don’t have to pay. Those are real dollars, and the taxes you aren’t paying are real return. Said another way — these are dollars that but for the depreciation would be leaving your Levi’s and heading towards the IRS. A quick example would be an investor with a $90,000 income from their day job. Read the rest of this entry »
