Posted on August 4, 2010 @ 6:43 pm - Written by BawldGuy
So much of what concerns you as an investor (Captain Obvious alert!) is return on your capital. Everyone’s lookin’ for the property. You know the one — double digit cap rate, highest quality tenants, location to die for, blah blah. What happens next is the learning curve, right? We all found out where the extra high cap rates hang out — bring yer bodyguard. It swiftly evolves into two intersecting lines. One is a return with which you’d be happy — the other the level of risk it takes to produce said return — one with which you’d be comfortable.
And there’s the rub.
Lip service is given to the intimate relationship between risk and return, but often not much else. What’s worse, both risk and return are just as often misjudged by the investor as a result of their analysis of a given property. Though I used to believe risk was more routinely misunderstood, I’ve come to believe it’s probably the return side of the equation. Read the rest of this entry »
Posted on July 27, 2010 @ 6:09 pm - Written by BawldGuy
So much of what concerns you as an investor (Captain Obvious alert!) is return on your capital. Everyone’s lookin’ for THE property. You know the one — double digit cap rate, highest quality tenants, location to die for, yadda yadda. What happens next is the learning curve? Right, we all found out where the extra high cap rates hang out — bring yer bodyguard. It rapidly evolves into two lines intersecting. One is a return with which you’d be happy — the other the level of risk it takes to produce said return — one with which you’d be — comfortable.
And there’s the rub. Read the rest of this entry »
Posted on June 8, 2010 @ 5:56 pm - Written by BawldGuy
The three links below are worth a second read, especially given their relevance in today’s economic realities. Let me know your thoughts.
7 Expectations of Real Estate Investors — Beware of Potential
10 Ways To Delay or Diminish Your Retirement
The ‘Old Normal’ — Sore Elbows and Adapting
You may get a hold of me by calling 619 889-7100. I’d love to talk with you, as my daily fix is a must. 
Have a good one.
Posted on June 1, 2010 @ 4:03 pm - Written by BawldGuy
My job at the front end of the relationship with a client is to understand, inside and out, their financial picture as it is. It’s surprising how many times I’ve had conversations with folks, only to have them let out a little bitty factoid that changes most of what I woulda told ‘em to do. What may seem humdrum to you today, might make a very happy difference a decade or two down the road.
I never know when that elusive little factoid will show up, but in so many of my initial few conversations with clients, they pop up without warning.
Here are some recent examples. 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 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 April 23, 2010 @ 7:01 am - Written by BawldGuy
Written By — John Park
What Are You Telling Me?!?!
Many a blog and article have been written by this author and others about the benefits associated with a self-directed IRA and 401K. So, that being said, why would this post even begin to state that establishing a self-directed IRA might be the worst mistake you ever made?! Why would the ability to self-direct one’s own retirement assets be a bad thing…let alone the worst mistake an individual may have made?
First, let’s break this down a bit. In general, the title of this article reflects an opinion that most do not hold. The benefits of a well-structured, self-directed IRA account are many. However, here is the rub:
Do you really know what you are doing with your self-directed IRA? Have you, and how do you know, that your investment choices fit the stringent IRS rules regarding prohibited transactions? Read the rest of this entry »