Posted on April 30, 2008 @ 9:25 pm - Written by BawldGuy
Ever had to make up your mind? Pick up on one and leave the other behind? Those words mean nothing to most of those under 40, but those in their 40’s and 50’s are already hummin’ the tune. Sometimes we don’t get to have our cake and eat it too. The decision whether to invest in real estate carries with it just one of those choices.
Should you go for cash flow or capital growth?
Are you inches away from retirement with all your ducks in a row? Cash flow is probably (probably!?) the easy pick. You’ve got quite some time ’till you see yourself quittin’ yer day job? Capital growth is the way to go. Save the purchase of your retirement money tree for uh, retirement.
So where’s the rub you might ask? Come on, really? Human nature insists on at least asking why we can’t have both. I hereby invoke the BawldGuy ‘Cuz Rule. Why can’t you have both? ‘Cuz.
Posted on April 29, 2008 @ 10:10 pm - Written by BawldGuy
Setting up a Purposeful Plan is not a walk in the park — not for us and not for our clients. It takes serious work on both sides. Between podcasts, case studies, white papers, and what I do here on a daily basis, you can pretty much ascertain how much is involved. Being serious isn’t an option, it’s a necessity.
Today let’s explore a potential case study. I’m using numbers obtained by a very experienced and competent pro in the midwest.
We’ll not dwell on the minutia, but instead take a broad view of the before and after. Let’s use an investor’s income property in an area which is probably not gonna grow much, and where the future is fine, but not nearly as promising as solid growth regions we’re now recommending. I say it won’t grow much since it’s averaged less than 2½% a year for what seems like forever — especially to the long suffering investor.
Here’s what we’re working with: Small income property worth around $250,000 — loan balance of around $135,000 — sales costs of around $20,000 or so.
Posted on April 28, 2008 @ 10:48 pm - Written by BawldGuy
Though I touched on Grandpa Economics yesterday, there’s something begging to be added to the mix. This afternoon I had a very interesting conversation with a house agent from the midwest. He told me of an investor who’d retired at 39 after he’d paid of the last of his five local duplexes.
The agent commented he should have done the same thing, and expressed regret he hadn’t. I replied he wouldn’t be even considering that approach if he worked with us, which he is strongly considering. What? Huh? Why not?
Hint: Would you plan on putting yourself between a rock and a hard place on Purpose?
Posted on April 27, 2008 @ 8:41 pm - Written by BawldGuy
Had an invigorating conversation today with a hard working guy from the South. He owns his own business and works incredibly hard, as does his wife, also self employed. I found their situation almost profoundly moving by the time we’d finished fleshing out their current status, as it related to their potential for retiring when and with how much.
Keep reading and ask yourself if you begin seeing your own situation?
He and his wife are 40-something, have three kids, each a year and a half from the next. They’re all about to enter college, one after the other. His business does well, and he loves working, but lately has begun to hear the ticking of his very own unrelenting Big Ben. With less than $60,000 in his 401(k), his savings aren’t providing sweet dreams either. It is nice that between them they earn a little over $150,000 a year. But before you start wailing about how you only make $55,000, let’s be real here for a second.
Tick Tock.
That figure is before taxes. Also, following the Grandpa Economics playbook almost verbatim, they paid off their home’s mortgage via double payments, about six months ago. Wow. Their retirement is shaping up to be Read the rest of this entry »
Posted on April 26, 2008 @ 9:24 pm - Written by BawldGuy
From back in the day, comes one of those memory pingin’ songs — Barbara Ann, by The Beach Boys.
It reminds me of my first Saturday in the business as an 18 year old Know It All who in reality was a Know A Whole Buncha Not Much.
Here in Paradise, it was in the upper 80’s today. The Boss decided Cuban food was in order for dinner. This, after enjoying a lazy afternoon leaving voice mails in Texas and Canada, and reading my latest novel in the satellite office down the street. In wanders a couple of my all time favorite clients. Seems a trip to their New Hampshire condo in the ‘village’ is on next week’s agenda. The two donuts made the day perfect.
Works for me. If there’s a better life than living in San Diego and helpin’ folks retire magnificently, I wouldn’t know what it would be. The cherry on another Saturday in Paradise? Runnin’ across the Barbara Ann, and driftin’ back to that Saturday back in ‘69. Ah, good times.
Sit back and relax, crank yer speakers up a bit, and listen to one of the all time memory pingers.
He and his wife are 40-something, have three kids, each a year and a half from the next. They’re all about to enter college, one after the other. His business does well, and he loves working, but lately has begun to hear the ticking of his very own unrelenting Big Ben. With less than $60,000 in his 401(k), his savings aren’t providing sweet dreams either. It is nice that between them they earn a little over $150,000 a year. But before you start wailing about how you only make $55,000, let’s be real here for a second.