Posted on May 20, 2010 @ 10:19 am - Written by BawldGuy
One of my all-time favorite quotes: “In the end it all comes down to talent. You can talk all you want about intangibles, I just don’t know what that means. Talent makes winners, not intangibles. Can nice guys win? Sure, nice guys can win – if they’re nice guys with a lot of talent. Nice guys with a little talent finish fourth and nice guys with no talent finish last.”
Let me know in the comments who you think might’ve said it. Don’t Google it, OK? 
Hint: It was an iconic sports figure.
Folks insisting they can do most things in life themselves are not only doers, but to be admired. On the other hand, it’s amazing sometimes what gets on their ‘most things’ list. Some of us can do things very well that others simply can’t or won’t do. For instance, I don’t design my own office interiors — nor do I paint them myself. Could I? Of course. Should I? Um, not if I want clients to think my IQ has three digits before running into that pesky decimal point. Read the rest of this entry »
Posted on May 19, 2010 @ 6:01 pm - Written by BawldGuy
Today I offer you another of one of my all time favorite subjects — the potential nightmare consequences of not just being short on answers, but not knowing the questions to ask. It’s the answers to those questions that can change your own ‘feel good’ movie into Friday the 13th.
Here’s a real life example of what could’ve happened to an investor family who thought for sure they were doing the right thing. But for a fortuitously timed phone call, their financial lives would’ve been set back more than a bit.
It revolves around what we’ve all experienced at one time or another in life — ya can’t know what ya don’t know. I urge you to read this linked post, while asking yourself what you might be doing currently that could have an ending for which you surely never planned.
Please call me at 619 889-7100 with any questions. Have a good one.
Posted on May 5, 2010 @ 6:30 pm - Written by BawldGuy
You’ve read it here before, but it’s crazy sometimes how a cluster of calls and emails will come in a 3-5 day period, all essentially about the same topic. It’s entirely possible this phenomena happens due to something I’ve written, but sometimes I can’t ferret out a common denominator. This week it’s been real estate investors who’ve done more than reasonably well, or on the cusp of that level. All of them have been smarter than the average bear, and all except one has been decidedly experienced.
Though they may recognize themselves here, I’m gonna change some factoids to give them some cover for privacy.
I’ll be writing next week about what I might recommend they change in their approach, long term. However, make no mistake — they’ve already done better than 98% of real estate investors you may know. Two of the three have generated enough cash flow to retire — one has more or less, kinda sorta semi-retired. One is still havin’ fun, and I quote, ‘…building my empire’. He’s been spectacularly successful with his current strategy, as has the semi-retired guy. The only thing that exceeded his success so far, was the genuine humility he displayed during our conversation. In fact, now that I think about it, they were all unassuming, humble guys. Read the rest of this entry »
Posted on May 4, 2010 @ 6:15 pm - Written by BawldGuy
When I used to teach aspiring real estate investment brokers/agents this side of the business, what they often referred to as ‘The Dark Side’, I’d usually start out with a little talk about what their future clients really wanted. ‘Course, before I began, I’d do the whole teacher thing, (it’s in the book, you can look it up) and ask them for their thoughts on the subject.
The answers followed a predictable path. You know, analysis, research, knowing pertinent tax law — you could probably fill out the rest of the list. They’d start gettin’ itchy as I kept shakin’ my head no. Then, for my own personal entertainment I’d tell ‘em they weren’t even warm — keep tryin’.
Availability, 24/7 etc. Returning phone calls, or now, emails, texting and the like. Nope. Still not close. Read the rest of this entry »
Posted on April 28, 2010 @ 10:04 am - Written by BawldGuy
Yesterday got away from me, so I’ll talk a bit about what I’ve been thinkin’ lately about my local market, San Diego County. Before I start, I sure wish somebody had warned me about how all the women involved in wedding planning go totally nutball crazy — and that it only gets worse as the date approaches. Each week I seem to lose more hours saluting intense looking ladies as I march off to do their bidding.
Anywho, I’ve been toolin’ up for my imminent return to the San Diego investment property market. Ya might wanna get that look of horror off yer face, cuz I still refuse to be a part of any Brown and Brown client investing long term in San Diego — ain’t gonna happen. What will be happening is the orderly migration of local investment property equities to regions better suited to achieving the investor’s original Plan — to retire well. Read the rest of this entry »
Posted on March 31, 2010 @ 5:25 pm - Written by BawldGuy
Ever wonder who writes definitions of any particular industry’s nomenclature? In baseball for instance, a little over half my time umpiring was spent doin’ the ‘dish’. The what? The dish is home plate, where the plate umpire’s main duty is to call balls and strikes. When a hitter’s at the dish lookin’ ‘dead red’, he’s up there lookin’ for nothin’ but a fastball. Ever heard of Louisiana Ball? The hitter just struck out, swingin’ late on a fastball. From the pitcher’s dugout you might hear, “That musta been some Louisiana ball, cuz that one was Bayou!” Baseball lovers know what I’m talkin’ ’bout cuz there are a million of ‘em.
Same happens in real estate investments, though its nomenclature, sadly, isn’t nearly as plentiful or colorful as is baseball’s. Here are a few terms with some plain English definitions. Some of them are formal terms, some slang. Hope this helps. Read the rest of this entry »
Posted on March 30, 2010 @ 4:50 pm - Written by BawldGuy
You’re in your mid-30’s and have, give or take, between $50-60,000 to invest in real estate. Your income allows you to set aside another $500 monthly to augment any Plan you may set in motion. You believe me when I tell ya no Purposeful Plan these days should factor appreciation into the analysis — appreciation is officially a luxury ’till further notice. From where I stand, those who insist on imputing future appreciation into their before and/or after tax cash flow return analysis are playing with fire.
The strategy to be used in this environment is one of conservatism — combined with an ever watchful eye on your originally invested capital. Boring? OK, ya got me there. Will it get ya to your own Point B? It’s far more likely than having faith in appreciation the next few years. Let’s explore how you might grow your capital and create a sweet income stream for your retirement without the luxury of appreciation. Read the rest of this entry »
Posted on March 25, 2010 @ 3:52 pm - Written by BawldGuy
The other day I read about a real life real estate investor who’d been pretty successful, and had decided to step away from the life, and begin their retirement. Sounds good to me. Betcha there’re a lotta folks readin’ this askin’ themselves under their breath, “Where do I sign up?” The article in question was about a guy who’d followed what he’d thought was the tried ‘n true strategy one of his mentors had taught him. Buy property — never EVER get rid of it — refi for more investment cash when prudent and possible — rinse, lather, repeat. It’s not relevant if the agenda was cash flow or capital growth. The ending will be roughly the same.
Though it’s not absolutely necessary, that strategy almost always results in the following relocation for the investor. Between a rock, a hard place, the IRS, and post job existence more analogous to a life sentence than a dream retirement. This presents a thorny problem for those who wish robust second careers requiring much capital, or those for whom after tax cash flow from real estate is paramount to the success of their retirement. Here are some of the details to which you may look forward after following such a rigidly defined investment strategy. Read the rest of this entry »