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 July 12, 2010 @ 4:09 pm - Written by BawldGuy
Many of you have repeatedly asked for the occasional case study, something that would illustrate much of what I talk about in my daily posts. As Lani (A RE blog owner herself) said in a comment last week, “I’ve been waiting YEARS for this side by side comparison.” It’s been her contention these comparisons shoulda been part and parcel of this blog all along. Though my clients live these comparisons, I think my reply to Lani hasta be — guilty as charged.
Sometimes we get too close to a thing, and wonder how anybody could look at two things and not see huge differences — if they indeed exist. My mistake, if you’ll allow me to self-diagnos, is (using baseball analogy in Lani’s honor) akin to me constantly makin’ the point that Major League Baseball (MLB) is vastly superior in quality of play than is seen in the Rookie ‘A’ Ball League in East Toilet Seat, Montana. Problem is, if the reader isn’t either a baseball fan, or would like to be but has no context in which to compare, merely reading about it doesn’t quite do the job.
Posted on July 6, 2010 @ 2:30 pm - Written by BawldGuy
The other day I was test driving my newly installed IDX (That’s an app allowing visitors to my company’s website to search for San Diego properties.) when I decided to check out what a duplex goes for in the town in which I live and work, La Mesa. It’s in San Diego’s ‘East County’ and has always been a high demand location for investors in residential income property. Tenants are generally of demonstrably better quality, rents are higher, units easier to rent, and vacancy rates typically lower. Real estate investors have always loved La Mesa.
I found the lowest priced duplex in the zip code (91942), $300,000 — and did some quick, down and dirty numbers. I then compared those bottom line scratchings to what we’re able to offer in various markets in Texas — mostly the Dallas/Fort Worth MetroPlex. Read the rest of this entry »
Posted on March 23, 2010 @ 5:49 pm - Written by BawldGuy
Had a wonderful conversation this morning with a very smart new client. She and her husband have recently come on board, and now have a Purposeful Plan, which has already been at least partially put into play. A good portion of their Plan will be executed via the wife’s self-directed IRA. They already own a rental property which is now on the market, with the intent to effect a tax deferred exchange (1031).
One of the things ‘Connie Marie’ wanted to do, was consult with a financial planner to see how much of her funds might be invested in stocks, mutual funds and the like, and how much in real estate. The point of this quest was to discover if diversification would be an issue. As I said already, Connie is one very smart lady, helped further by her occupation, which is banking. She’s no stranger to financial goings on to say the least.
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.
