Posted on September 21, 2009 @ 11:55 am - Written by BawldGuy
This isn’t about keeping something out of your backyard, it’s about whether or not it makes sense for you to invest your hard earned capital into your own area’s real estate. If you live in San Diego as I do, you know what the history of real estate has been. In a nutshell, if you invested and let it be, depending upon the cycle, sooner or later (never real long) your capital grew — big time. That was the case from the 1970’s ’till late 2005 or so.
For the record, San Diego is not, by any stretch of the imagination, the Lone Ranger in this. It’s true for California in general. Look at where you live. Is the median price of a home affordable for the typical family? No? See, it’s a matter of degree. San Diego is ecstatic cuz their median home price is now under $400,000! What’s your region’s median price? If it’s much over $200,000 the regular folk are beginning to be crowded out. If that’s the case, your 1-4 unit residential income properties are already becoming less attractive.
Posted on September 15, 2009 @ 10:32 am - Written by BawldGuy
For upwards of a couple years now I’ve been singing the praises of the Texas market for investment properties — specifically smallish residential income. Here’s a short (7 minutes) video that’s well worth the time. Some of the facts will raise an eyebrow, some will surprise, but in the end, you’ll see what I’ve been talking about here all this time.
Growth is the name of the game, capital growth especially, as it relates to investing in real estate for your retirement. The #1 factor in any region’s economic growth is always about jobs — now and in the foreseeable future. Job growth generates population growth which then becomes a dynamic formula for long term success.
I encourage San Diego income property owners to pay close attention. While watching, mentally compare our investment/business atmosphere to those of Texas. Then ask yourself why you’re not already in the process of moving your equity there.
When you’ve finished watching and pondering, give me a call at 619 889-7100. We’ll figure out if your situation merits a move at this time. Have a good one.
Posted on January 23, 2009 @ 12:06 am - Written by BawldGuy
As regular readers are aware, the pictures published here are for my entertainment. It’s my hope you’ll find ‘em fun too. In the spirit of full disclosure, they have nothin’ nada zilch to do with the content. Just so ya know. If ever you make a connection between pictures and content? Please, keep it to yourself.
Tonight’s post is meant to be a reminder. It’s nothing earth shaking, and I’ll probably wonder a bit. It needs to be said during buyers’ markets. Understand the underlying truth to the message though. There’s nothing worse than buying a stud horse, then learning too late you really have a pig in a poke.
In markets like we’re currently enmeshed (love that word), the siren call of what the investor might perceive as monster discounts are often more like a strong riptide. The warm inviting water, the rollin’ waves, and pretty soon yer 300 yards from shore with no earthly idea how you got there or why — or how to get back to shore. When you head into an area offering those kinda discounts it’s crucial to take a step back to access what you’re really lookin’ at and where it is — and what the fundamentals are screamin’ in a loud and clear voice.
In most regions we’ve seen, there are pockets, often several more or less contiguous neighborhoods seemingly immune to this market correction. That’s true in San Diego. One example is where my aunt ‘n uncle live, in La Costa. The correction has made only a courtesy dent in their home’s value. Not so in most other areas in the county. Read the rest of this entry »
Posted on December 4, 2008 @ 11:18 pm - Written by BawldGuy
This post was inspired by Benn Rosales over at Agent Genius. He was talkin’ about agents, but I was moved to write about what I perceive the difference is between perceptions of regular folk.
No, this isn’t about the glass being full or empty, half or otherwise. It’s about dealing with what is, and making decisions based upon what is, not emotion.
Here’s a totally unrelated example of emotion based pessimism vs the ability to see reality, while effectively probing for avenues of potential success. What? Huh?
There was once a 13 year old playin’ centerfield in an all-star baseball tournament years ago. His team found itself in the position of no outs and bases loaded — in the top of the 1st inning. He was waved in by the manager to get them out of the dilemma. (A pitcher when not an outfielder.) What to do? Since he’d paid attention to the base runners while in the outfield, he’d noticed the runners on 1st and 2nd were both pretty cocky.
To make a long story short, in the next three ‘pitches’ he picked off the runner on 2nd, then the one on 1st. The next batter, lookin’ to make up for this in one swing, feebly popped up. Four pitches, three outs, no runs. The same exact scenario played out the next day. The results were the same, except for one run on a seeing eye 17 hopper through the infield. Six runners, no outs, one run scored. Read the rest of this entry »
Posted on November 24, 2008 @ 11:02 pm - Written by BawldGuy
Though I’ve been toying with the idea of writing about all the latest in current events, what would be the point? When the talking heads can’t agree what time it is, much less why the market’s up 500 points, then down 400, then sideways, then, well, you get it. The real takeaway here is that this is what happens when uncertainty rules the day. Which, of course begs the question.
When there’s a change in leadership, especially the White House, investors have a deeply rooted need to understand what change might be headed their way. Once that information is uncovered or released, it becomes ironically clear the substance revealed had a hand of course, but it was really the ‘not knowing’ that drove the somewhat erratic Wall Street behavior.
Investors don’t like swimming blind. Real estate? It’s the same, but different. It’s not timed by a stopwatch, nor does it turn into a soap opera if the president gets the flu. It just is. Sure, it endures bad times and surfs through the good times. But in the end, it always has value. It offers shelter, or the opportunity to achieve a better retirement — maybe sooner rather than later. It’s a place in which to operate a business, or manufacture thingies.
Since investment property is built, (mostly) on land, and the Good Lord ain’t makin’ any more of of it (I know this fer sure, ‘cuz Will Rogers said so.), the whole supply & demand thing tends to hold sway — at least in the long run. One of the most critical factors making real estate different than so many other investments, especially stocks, is that it’s simply not universal in nature. That is to say, what makes real estate in Dayton, Ohio act one way, might be the exact same reason it behaves 180˚ differently in Austin, Texas. Read the rest of this entry »
Posted on September 8, 2008 @ 10:29 pm - Written by BawldGuy
Early adapters will be the big winners when it comes to capital growth and investing in outa town real estate. Those who insist on keepin’ their capital here in San Diego will look back a few years from now, realizing they could’ve done much better. In just five years the difference can be far more injurious to your retirement plan than you might imagine. How so?
San Diego (California in general) takes another couple years to stop the decline. Another to stabilize. Two years at 2-5% appreciation. Before ya know it you’ve raised enough to pay for half your sales costs in five years. Let’s party.
OR
You can take yer $100-500,000 into a growth region or three and get 3-7% for the next five years. Even if it’s say 5%, if you executed a tax deferred (1031) exchange into say $1 million of property, your first year you’ve grown by $50,000. Even if your $450,000 duplex or rental home in SD went up 10% you’re still behind — and the gap only widens.
BawldGuy Axiom: Waiting for California (San Diego, Palo Alto) real estate to resume normal capital growth rate is akin to waitin’ for your cat to bark. Definitely not a good use of yer time — or your capital.
This cat wouldn’t bark no matter what drug the vet gave it. Sweet relief from broken leg suffered in three story miscalculation. The bird made a clean getaway.
You might as well be waitin’ for yer cat to bark as wait for the San Diego market to keep your capital on the growth trail. Adapt to the new reality. It’s now almost the same trading to other states as it is staying home. And in the end? Your capital doesn’t know where it is. It does have a need to flourish though. The Boss’s cat wasn’t even gonna
Texas, including Dallas and surrounding areas, Austin, Kansas City, and hopefully soon, the Carolinas and Georgia — all better performing markets than San Diego. Not even a close call.
Oh, and for the record? No matter how long you stare at yer cat, it ain’t gonna bark.
Maybe while yer starin’ at Fluffy, you can send me a quick note. We’ll talk about how a Purposeful Plan will most assuredly make the difference in turbo charging your equity’s growth rate. Have a good one — and thanks Kelley.
Posted on August 1, 2008 @ 11:50 pm - Written by BawldGuy
This weekend take the time to write down all the info ya need to paint a picture of where you are today — financially. Not just assets and liabilities, but what yer doin’ now that maybe isn’t the right thing for you. Also, what’re ya not doin’ that ya know should be happening as a habit?
If the only two things you learn is your net worth and how much yer savin’ each month — or not — the effort will have been easily worth it. I remember one weekend in the mountains with The Boss. I was doodlin’ on a legal pad, and started writing down my known recurring monthly expenses, for both home, and office. When finished I was staggered by the number. I shouldn’t have been, but isn’t that how most of us are?
BawldGuy Axiom: Garbage in, garbage out is just the modern way of sayin’ what Grandma taught me. One of her favorite sayings was, “‘Bout the time the farmer got the old mare to work without eatin’, she died.” Read the rest of this entry »
Posted on July 26, 2008 @ 11:02 pm - Written by BawldGuy
Places like San Diego, Orange County, Palo Alto, and San Francisco are excellent examples of markets having turned from warm and cuddly to cold and prickly. Where are the CA real estate investors headed these days? Lots of places. Several spots in Texas. Austin, Dallas, Ft. Worth, Allen, Weatherford, and many pockets between the MetroPlex and Austin. Kansas City is a very prudent spot on the map for your real estate investment capital and/or equities.
Also, and don’t tell a soul — am headed soon for the Carolinas. And yes, for the record, we’re still closing transactions for clients with 10% down. You have to share Divine DNA proven with blood test, but it happens. Add Purposeful Planning to the mix, and pretty soon you’ll be on yer way to a magnificently abundant retirement.
The first video is just for fun. A certain midwest agent snarked something about my yesteryear choices for music. Well here ya go, Pilgrim. Eat my dust.
The second video was offered up by a friend on twitter.com, where I’m known as, (surprise) @BawldGuy. She said I should put up something by Toby Keith, then got specific. I really liked her choice, ‘cuz it brings back memories. (Don’t ask, not tellin’.) If yer lookin’ for diverse music, these two are about as different as yer gonna get. You can thank Brad Coy for the Arcade Fire song. Jamie Geiger sent in Toby’s piece. Thanks again guys.
