Posted on May 22, 2008 @ 1:31 am - Written by BawldGuy
Still draggin’ from spending three days in Hell’s Special Oven — more often called Phoenix. You don’t realize the toll taken by all the activity, plus intensity, plus the 198˚ heat. I’m exaggerating, as it never got above 154˚ even once.
As I was saying to some of the Phoenix guys there, “Dry heat my hinie. Ask a baked potato what he thinks of dry heat.”
The momentum is beginning to show as it relates to California real estate equity grabbin’ their spurs and headin’ to the Lone Star state. (Did I really write that sentence? See? I’m really that tired.)
When the average CA investor learns they can increase the value of their portfolio by 3-6 times, they sometimes began channeling Rod Serling, background music and all. Increase their tax shelter by 4-8 times? In no time, the only CA real estate left is where they sleep.
The math is usually what tips the scales. Read the rest of this entry »
Posted on May 21, 2008 @ 12:20 am - Written by BawldGuy
Been livin’ a good news/bad news joke in real time since Sunday. The good news is that the hi-tech improvements I’ve been wanting to make have now been made easier. The bad news? I actually have to do it.
It’s not just one concept or application, it’s a group of related, and unrelated systems which will, when installed and tested into oblivion, create a synergy of efficiency never before experienced by the likes of the Lord’s creations on Earth.
Sounds good, don’t it? Hey, I went for it.
Anyway, I’m back, and feellin’ two rungs below death on eating a cracker.
The Boss grabbed me from the airport and rolled directly to Indigo whereupon without further delay we shared a forklift sized plate of — listen for it — duck nachos. Kinda takes the edge off, know what I mean, Verne?
So we resume our regularly scheduled program as soon as I get at least six consecutive uninterrupted hours of sleep. It’ll be on at the same BawldTime and the same BawldChannel.
Night.
Posted on May 19, 2008 @ 11:05 pm - Written by BawldGuy
Spoke with several west coast agents today while at Unchained conference in Phoenix. Bay area, L.A., Orange County, LA Beaches, and Oakland were represented. When asked about local real estate investors’ outlook in their areas, they were unanimous in saying local real estate for the most part isn’t on their menus any more. They’ve become fairly disenchanted with local real estate all over the Golden State.
When the stark reality hits you — under no circumstances would you buy your own investment property at the currently reduced prices — that’s when disenchantment finds a home.
Was chatting with a very bright San Marcos (north San Diego county) who said folks simply won’t sell for $50-100,000 less than they would’ve gotten three years ago, when the market correction started. I went on to say that their retirement income wasn’t gonna magically appear just ‘cuz they needed it to. It was gonna take a Purposeful Plan. He then asked for a more in depth explanation. Well, thanks for askin’ podner.
It’s simple as pie. ‘Lose’ $100,000 while netting $400,000 in sale. Exchange (1031) for $3 Million of property in various growth regions. New stuff ‘only’ appreciates a relatively pedestrian 5%. The first year that’s — wait for it — here it comes — $150,000. Or, put another maddening way, they got their ‘lost’ $100,000 back plus an extra $50,000 in a year or so. Plus, they’re Outa Dodge, own 4-8 times the property as before, increased their tax shelter by a factor of 3-10, and instead of owning property older than Grandma Moses, the new stuff is 0-5 years old.
To use a real estate investment ‘technical term’, the above scenario is often referred to as a no-brainer.
And the choir sings…DUH for a count of four beats.
Gotta hit the hay as I’m first up tomorrow morning. What sane person goes somewhere at 8:30 AM to hear a comatose BawldGuy — regardless of what he has to say? Not happy with the scheduler dude. Not one bit. 
Find me and tie me down for a chat on the phone. Use the Contact BawldGuy doohicky — it works every time.
Talk to you tomorrow.
Posted on May 18, 2008 @ 11:38 pm - Written by BawldGuy
As I wrote earlier this week, I’m in Phoenix for Unchained. Though I’m an ‘instructor’ here, their word, not mine, the opportunity to learn is almost overwhelming. I’m not a tech guy by any stretch of the imagination, but some of these folks? If I studied what they did for a year, I still wouldn’t no what they’ve forgotten. You can’t put a value on that, ‘cuz if you did, nobody could afford it.
It affects how I do business and the value I’m able to offer my clients. It’s a huge deal. Already there are folks showing me how to bring Brown and Brown’s service to higher and more effective levels — always a good thing. We’re always looking to improve what we deliver to our clients. Good enough, simply isn’t good enough, know what I mean, Verne?
Our main concern is always measured in terms of end results for our clients. Let’s just say I’m jazzed within an inch of my life after what I’ve seen and heard today. And there are still a couple days left. We’re gonna get even better.
Very cool.
Though I’m on the agenda for Tuesday morning, it pales in comparison to the learning I’ve been afforded here. I’d love to walk away after my turn in the barrel knowing I was at least able to match the Gold Standard set so far.
I don’t know who the smartest person in the room is, but it certainly hasn’t been me. Some of these tech people make me feel like Forrest Gump’s slow little brother. Geez.
Talk with you tomorrow.
Posted on May 18, 2008 @ 12:42 am - Written by BawldGuy
I’ll be one of the panel members of Unchained, which is a conference for real estate pros, related venders, and marketing types, both social and otherwise. Sound a tad ambiguous? It’s the best I can do. It’s all about how to be excellent if that helps any. It’s put on by Greg Swann and Brian Brady over at BloodhoundBlog. Greg’s the proud owner, while Brian is a contributing writer, as am I.
One of the subjects sure to come up is the economy and real estate specifically. I have some thoughts to offer. Take a deep breath or two and your shock will dissipate.
I mentioned earlier this year how historically, in bad real estate times, one of the signs a recovery might be on the way, is the gathering of what I call the Godzillas. I define Godzillas as investors, people or entities, bringing a minimum of $50 Million to the table. I spoke of one such group having raised near $1 Billion. This is now happening in several sectors of the real estate market — both by type and geography. They’re surveying the lender landscape, and like much of what they see.
What has given huge encouragement to me personally is what’s emerging from lenders — it appears, one by one, they’re beginning to pull their heads out…(you finish this one). What am I talking about?
Many sophisticated real estate investors have been quietly buying bad loans from lenders at impressive discounts. Ironically what makes this encouraging isn’t that they’re being purchased. No — what’s so cool about this is that the lenders are finally facing the music everyone else has been playing. They’re bitin’ the bullet and clearing the shelves of all their rotten apples. This is what’s often referred to as cleansing the market — indeed. And that’s exactly what this will do.
I’ve been working on a post regarding this topic for several days, when up pops Sean, a sporadic commenter here. He’s seen this trend surfacing too, wanting to know my thoughts. Good on you Sean.
Bottom line? This is an exceptionally good thing.
When the banks begin selling their ‘defective merchandise’ at the swapmeets, the cleanse is officially in overdrive.
Has the spin cycle begun on this market cleansing? Read the rest of this entry »