Posted on March 4, 2010 @ 8:43 pm - Written by BawldGuy
BawldGuy Axiom: When the farmer plants corn in the spring after proper preparation, tends his fields diligently, fertilizes as needed, and adjusts to any bumps in the road, he’s not surprised when he’s harvesting corn in the fall.
A robust harvest was his end game. He had a Plan — executed it — adjusted to any unscheduled visits by Murphy, Though probably not the perfect analogy, it gets the message across.
Here are 10 ways folks investing in real estate for retirement can delay and/or diminish their retirement. Read the rest of this entry »
Posted on March 2, 2010 @ 5:22 pm - Written by BawldGuy
BawldGuy Note: Cuz Max Whitmore’s computer needs are so rare, (some pretty intense and sophisticated software/analysis) he’ll be unable to post until the specially designed machine he’s ordered is delivered, probably by this Friday. (Fingers/Toes crossed.) Which leads us to:
BawldGuy Axiom: When life is boiled down to its essence, logistics rule us all. 
Max and I thank you for your patience.
This conversation happens a few times a year. Got a call recently from a very nice house agent, who was concerned one of her clients/friends was entering into a tax deferred exchange. I asked why the concern? Doing an exchange is common, just do ‘em right. Apparently the transaction was being done as a result of the advice of a recently retained local accountant. She’d feel better if I’d talk with them — would I please humor her? Not a problem. Read the rest of this entry »
Posted on February 24, 2010 @ 8:01 am - Written by BawldGuy
Cash flow is sooooo sexy, isn’t it? Even the phrase itself flows through our minds generating rivers of soothing endorphins. All cash flow ain’t equal of course, as many real estate investors will readily attest. A client once told me, fire almost pouring like lava from her eyes, that she felt she was making half of minimum wage just to get the so-called ‘crazy good’ cash flow her properties were ‘generously’ disgorging every month. She always did have a way with words. Oh, how she resented those units. I made the mistake of laughing — just once though — as she finished one of her rants. Her husband told me later it was OK to laugh, as he too thought it was Grade A standup material.
San Diego income property owners are acutely aware of what I’m talkin’ about here. Many of ‘em aren’t laughin’. It’s past time most of them shift into forward gear and begin the process of moving their equities to better performing regions. The same could be said for areas like Palo Alto, CA.
Resent cash flow? Really? Are you thinkin’, ‘I’d love a chance to resent some ‘crazy good’ cash flow. Please, gimme the chance.’ Read the rest of this entry »
Posted on February 19, 2010 @ 11:15 am - Written by BawldGuy
This blog is an extension of our firm, Brown and Brown Investment Properties, which came into being January of 1977. I’m the dad now, but was the son then. What we do, put as simply as possible, is take our clients from where they are today, to the best retirement we can create together, never leaving their sides ’till that special day arrives. Oh, and we love being invited to any retirement party.
As you’ve noticed the last several weeks, more authors have begun to appear. This isn’t just a trend, it’s a format change. It’s meant to provide even more solid, helpful information for my readers. This blog’s reputation is for staying incredibly focused on your retirement, how to get you there safely, sooner, and with maximum income, as much of it as possible tax sheltered or tax free. (We don’t talk about unrelated topics here, with the occasional exception for Padres and Charger stuff. Oh, and there are the weekend bio-story posts.) Read the rest of this entry »
Posted on February 5, 2010 @ 4:00 am - Written by BawldGuy
Ever walked into a movie you’d really been lookin’ forward to, only to learn they’d totally mislead you with the trailers? We all have, and with an exception or two here and there, it rarely turns out to be a movie we like. Don’t ya hate it when the happens? For me, the worst time was when I went to what I thought was a comedy, which sadly turned out not only NOT a comedy, but a chick flick to boot. How it got past my ChickFlickRadar™ I’ll never know.
This is one of those nuts ‘n bolts things every real estate investor should know. The IRS doesn’t usually buy the whole ‘dog ate my homework’ — ‘I had no idea’ type of excuse when it comes to unintentionally recognized capital gains. So, heads up. Read the rest of this entry »
Posted on January 28, 2010 @ 6:00 pm - Written by BawldGuy
Many aren’t aware of the new rule allowing conversion to a Roth IRA from a traditional IRA. — regardless of either your income tax filing status or your income. Income? Yeah, those makin’ over $100,000 annually used to be restricted from creating Roths. That rule has now been eliminated for good. It became effective the first of the year. You’ll be happy to learn it also allows you to spread the conversion’s tax hit over three years — AND — you’ll be able to skip 2010 totally. This makes it possible to split the tax between 2011 and 2012. This tax split is only available this year. As you might imagine, this bundle of carrots offered to taxpayers has generated a buncha IRA owners to dive into the conversion pool.
Here’re a few other facts you should know about converting to a Roth IRA Read the rest of this entry »
Posted on January 7, 2010 @ 5:27 pm - Written by BawldGuy
One of the things this blog is known for, is how focused it is. It’s about investing in real estate for a magnificently abundant retirement. Sure, there are one or two other vehicles I recommend from time to time, but only as part of your particular Purposeful Plan.
Also, it’s been my aim, and I think successfully, to make this blog open to honest debate, but while using the manners most of us were taught as kids. This isn’t Tombstone, this is Mayberry, so to speak. I don’t cultivate false controversy or drama here. This blog is to generate business for me, sure, but by way of education, enlightenment, and helpin’ those who would like to learn without the trauma of making real life mistakes. Read the rest of this entry »
Posted on December 22, 2009 @ 10:51 am - Written by BawldGuy
This is a long post — it should be. Follow the progression and the numbers closely. At some point you’ll be reminded of someone in your past (present?) who followed Grandpa’s strategy and is now locked into their own life sentence.
There are many schools of thought when it comes to investing in real estate for retirement. Two of them dominate.
One says you buy property and hold it forever. When you’ve saved up enough to buy another one you do — and hold IT forever. The idea is you allow rental income to pay off debt as quickly as possible, arriving at the point of a free and clear cash flow machine. Do this more than once and you have the basis for a nice retirement income stream. Or so the story goes.
The other says cash flow comes from the yield on either capital or equity in an asset. The larger the capital amount or equity in the asset, the larger the income in terms of dollars. The ‘yield’ itself is expressed in terms of a percentage. For example, 8%. This school says that since the yield is the same, more or less, for a larger figure or a smaller figure, why not arrive at retirement with the largest amount of capital and/or equity possible?
The ‘Buy & Hold’ school (BHS) gets you there. But in what condition, and how much cash flow relative to the ‘Capital Growth First’ school (CGF)?
Buy and Hold Read the rest of this entry »