Posted on August 31, 2010 @ 5:54 pm - Written by BawldGuy
Much is said about retirement plans at social and/or family gatherings. It’s sometimes an uncomfortable conversation considering the current context of the economy the last few years. Long time readers know what I think about 401Ks/IRAs — they don’t make sense no matter how ya look at ‘em. ‘Course, if you have one, or three, and can’t quite make yourself bail out, given the taxes and penalty you’d shoulder, I understand. It’s still the best thing for most folks to do — but I empathize with their thinking. Heck, I have clients with self-directed plans who I’ve helped invest in real estate. It’s my job to do the best I can with the cards my clients deal me.
I write on a couple other real estate related blogs, one of which I’m gonna link to tonight. There are a couple posts — one in which I directly address the issue of gutting your 401K/IRA. The other builds on that one, in the sense that I demonstrated that what I tell you and my clients to do, is the same thing I just told my own daughter and her new husband.
I encourage you to read those posts at your leisure — and in the order in which I linked them. Digest what was said, read any comments and replies, then come back here, if the spirit moves ya, and let me know your thoughts. After reading them you’ll know one thing for sure — I’m consistent. 
Meanwhile, back at BawldGuy Ranch — gimme a call, will ya? For Heaven’s sake, where ya been? Let’s see what’s possible in your specific situation. Besides, I need a fix. Go ahead — enable me. 619 -889-7100 will do the job. Have a good one.
Posted on August 30, 2010 @ 7:54 pm - Written by BawldGuy
Today I thought it’d be cool to post a buncha pics showing one of the premier Texas developments I’ve been using as stellar examples of what’s possible. Though the pics are smallish, you can click on ‘em and get full screen views.
This is located in the North Dallas area. Each side has 3 bedrooms and 2 bathrooms. You can see the garages. 20% down will yield, give or take, about 6-9.5% cash on cash — given today’s interest rates. Most are in such demand — Investors and tenants — that they frequently sell before they’re even built. They’re just as frequently rented before the dust clears after escrow closes. Sweet, eh? Read the rest of this entry »
Posted on August 26, 2010 @ 7:09 pm - Written by BawldGuy
So far this month there’s been a renewal of callers wishing to talk about locations offering appreciation in value. They couch it in amorphous language, but when the smoke clears, long term or not, they’re wanting to buy properties that’ll go up in value.
I wanna be a 23 years old major league pitcher with an indestructible right arm capable of throwing 140 pitches every fifth day at roughly 97 mph. Oh, and I wanna be able to have pinpoint control with not only my fastball, but my killer curve, and my virtually un-hitable sinking change-up.
I know, I’m bein’ a first degree smart-aleck. But you get the gist, right? Nobody — well, almost nobody, is sayin’ that appreciation can’t or won’t ever become reality again. But there are a couple lines here that’ll need to cross. The line that stretches down the road year after year ’till appreciation returns — and the line dictating when you shuffle off this mortal coil. Read the rest of this entry »
Posted on August 17, 2010 @ 6:27 pm - Written by BawldGuy
Back in the day my mentors would regale me with real estate investment stories about the early 1950’s. Having been born in the summer of ‘51 I was all ears. I heard a common thread in most of their tales, until that is, we hit the end of 1975 or so. The ‘way it always was’ began to change — radically. They began to notice not so subtle changes in the local market, and they didn’t like it one bit. No siree.
Prices started rising in what would be the first of a long cycle of up a bunch, down a bit, up a bunch more, etc. I’m not sure it was indeed a paradigm shift as a matter of fact, but to them that’s exactly what it was. One of ‘em was so put out by what he saw through the rest of the 70’s he retired earlier than planned, headin’ back home to Wyoming. Read the rest of this entry »
Posted on August 5, 2010 @ 7:32 pm - Written by BawldGuy
This week has been informative to say the least. I’ve heard from several (4) income property owners in markets much like San Diego, including one actually in my town. Though their situations varied a bit here and there, there was a common thread when it came to the reason they contacted me.
They all said one of two things — one of ‘em said both.
“As one of your posts challenged us to do, we looked all over our local market for something into which we could exchange our equity(s). It’s been ‘X’ months (fill in the blank) and there’s just nothing worth trading for.”
OR
“Your post askin’ us if we’d now buy the units we’ve owned for quite some time, even for what they’re worth after this market correction? No! As in, not in this or any other lifetime.” Read the rest of this entry »
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 28, 2010 @ 7:24 pm - Written by BawldGuy
Everybody wants a retirement with more than ‘enough’ income, stability, more than a little tax shelter — all while knowing their capital is relatively safe. That’s a huge order for one reason — great return, heck any return on your capital, is a distant second to the preservation of that capital.
The assessment of risk is one thing. Even if you’ve convinced yourself the inherent risk in a particular real estate investment fits your comfort zone, the analysis isn’t over — not by a long shot.
Let’s pause here for a reality check. Has it ever really hit you between the eyes why it’s called risk capital? It’s cuz your capital is — at — risk. 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 »
