Posted on February 3, 2010 @ 8:46 am - Written by BawldGuy
Early last month I wrote a piece about growing capital and creating solid cash flow, much of it sheltered, while experiencing no appreciation whatsoever. The bottom line was surprising to many. Their capital nearly quintupled — while simultaneously creating reliable retirement income. Regardless of whether the capital grows by a factor of four or five, or less, the result will be far more palatable than a 40% loss a few years before your scheduled retirement, which is what’s happened to so many good people.
BawldGuy Axiom: Figuring return on disappearing capital is oxymoronic. Treating appreciation as anything but a luxury is akin to walkin’ in an unmapped minefield. Read the rest of this entry »
Posted on September 24, 2009 @ 10:11 am - Written by BawldGuy
This is a question taken from the old story of buying in an upcoming but previously ‘grungy’ area compared with buying in the tried and true ‘clean’ locations. I’d ask my client, “Would you rather have a clean $10 or a dirty $20?” Most, if not 90% said they’d rather have the dirty $20 of course.
It amazes me how many times investors opt for local properties when they have empirical evidence showing they’ll do way better in a region a state or two away. It just doesn’t make sense. This is especially true when technology keeps us so informed, usually in real time. Living in Iowa and investing in another state isn’t anything like it was 30 years ago. Back then an investor had the phone and snail mail. Read the rest of this entry »
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 July 29, 2009 @ 4:10 pm - Written by BawldGuy
Depending upon your current status — that is, owning income property in regions like San Diego — the latest bit of reportage from our friends at Case Shiller indicate the latest trend. Let’s first look at a snapshot of what’s happened in both the Dallas, Texas and San Diego real estate markets for the year ending this past May. I’m not an unbridled fan of Case Shiller, but I do respect their work. My only objection to their analytical conclusions is how much weight is given to distress sales in any given market. Markets, being local if nothing else, aren’t interchangeable. But it’s just a quibble on my part, nothing serious.
They found the general area of Dallas doing astoundingly well vs the rest of the country. Counting everything, the year ended in May showed that area of Texas, known locally as the MetroPlex, was the most resilient real estate (housing) market in the nation. Told ya so. Read the rest of this entry »
Posted on July 2, 2009 @ 10:58 pm - Written by BawldGuy
Some thoughts for you which came my way after lunch with Mom. Nothin’ like crazy thick pork chops and veggies after an incredible salad to get the gray cells doin’ their synapse thing. She even sent me home with an extra chop, which I left in Josh’s car when he dropped me off. He was raised right, so I’ll get it back tomorrow. Faith is a wonderful thing, isn’t it?
Think buying income properties, allowing them to grow in value over time, then exchanging them — tax deferred via 1031 — for the next 30-40 years is the ticket to your dream retirement? Think again 1031 Cult Breath. Here’s the wicked little surprise that’ll be awaiting you on the first April 15th upon retirement. 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 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.
