Posted on June 22, 2008 @ 6:16 pm - Written by BawldGuy
Each year that goes by, more and more real estate investors holding San Diego income property are beginning to see the light. Information is so easily obtained these days, it’s hard not to, isn’t it? At what point do ya throw in the towel, asking yourself who to believe? Speaking for myself, I can’t look people in the eye and tell them San Diego is the place for their real estate investment capital. I need my eight hours a night.
Besides, how do ya think they feel when coming across a well located Texas property offering roughly the same income as theirs, but selling for half as much give or take? Not to mention the other property isn’t a fossil yet. In fact, most of what they’re seeing is new to only 5-10 years old. “Geez, I could own 2-4 times what I have now, and not have to manage it myself.” Yep.
Sounds good to me. Take some time and give a listen to some of podcasts here. Then, if the spirit moves ya, get ahold of me and we’ll figure out what your next move might be. Sometimes, even for San Diego income property owners, the next move is no move.
Next time a local guy tries telling you how super San Diego investment property’s gonna be again, think of this, ‘cuz they ain’t tellin’ ya true. Notice how the ‘go-go’ dancers have evolved over the years. Wow.
Posted on June 11, 2008 @ 11:15 pm - Written by BawldGuy
Some of today’s post comes via inspiration from conversations I have sometimes with one of my Starbucks buddies. Our conversations are wide ranging, which at times becomes the catalyst for some serious thought when it comes to real estate investors and investing.
‘Course, since random is the theme today, pictures shall be congruently random also.
Gray Bomb
Though I’ve written here often on what drives my decisions to recommend one property/region over others, it still boils down to the same basics it always has. Jobs, job creation, commerce, etc. The continued migration of large population segments from the north, most of the midwest, and the northeast towards sunbelt regions is still strong and will continue to be. No surprise there.
The phrase Gray Bomb though, will begin to have more and more meaning and impact upon real estate as time does its thing. Boomers are now pretty much graying right in front of us. I know, ‘cuz I are one. Though there’s absolutely no gray on my head. (Thanks Schick) They’re making life decisions regarding their retirements, which are impacting the economy in general, and real estate markets specifically to an ever growing degree.
This isn’t new of course, but it’s beginning to become a much more important factor in how Brown and Brown views data these days. When shrapnel from Gray Grenades land in concentrated bunches, it’s news the real estate investor should follow with real interest. Read the rest of this entry »
Posted on May 30, 2008 @ 12:06 am - Written by BawldGuy
San Diego and (California in general) has been the best girlfriend ever. Loyal, always thinking of just us, enriching our lives almost without fail, and bringing additional commas to our bank accounts. Talk about having it all, we sure did.
She always played our song. Happy days? The status quo. Even when she was down, we knew from experience she’d bounce back — and even more lovable than before. Well, as happens in real life sometimes, that perfect mate has tired of us and left us high and dry. She’s walking away, and she ain’t comin’ back.
People, that’s exactly what’s happened in California. Investment property has taken a different path. The days of buying, holding for a few years, then selling or executing a tax deferred exchange yielding splashy results are gone. I think they’re gone forever. Why?
Glad you asked.
Your property is now worth, after this market correction, 150-300% of competing markets in out of state growth regions. In San Diego for example, a 35 year old duplex in a decent area sells now for $425-525,000 (often more) give or take. Also, in order to break even every month the investor must put down at least 30% and usually 35-45%. In NoCal 40% is considered wicked good leverage — no kiddin’. The Kool-Aid they drink in Palo Alto and the Bay Area in general is phenomenally effective. They’ll realize too late their lovingly loyal maiden has decided they’re not the Knight in shining armor any more.
Surveys show — capital growth rates fall when leverage is severely depressed. (anonymous smart aleck) Read the rest of this entry »
Posted on May 23, 2008 @ 11:23 pm - Written by BawldGuy
I have an appointment Saturday morning, then off for the weekend. When someone flies in from a couple thousand miles away, you make time for ‘em. Being from the Old School, I’ve always kept in mind that it’s about our clients, and not about us. Few things in life are more important than the successful outcome of a client’s Purposeful Plan for retirement. It’s at least on the A-List.
Since the NASDAQ tumble several years ago we see several people a year who’ve finally decided to move forward and make up for lost time and lost savings — sometimes a lifetime’s worth. I empathize with folks facing the challenge of traveling roads they thought they’d never see again. But like the bumper sticker says, (kinda sorta) Life Happens. We can either pick ourselves up, scream at the injustice and win bigger and better than ever, or wave the white flag and slink away.
I’ve met so many good people who’ve raised themselves higher than they were when Murphy struck. The next time out they changed three very important factors.
They created a Purposeful Plan instead of just investing ‘cuz it was better than not investing.
They funded a Sominex Account with a serious attitude of generosity — might’ve saved ‘em last time.
They brought on a knowledgeable, experienced real estate investment pro who’d already seen the movie a few times.
The best part is, we’re nearing the end of this latest market correction to end all market corrections. (Aren’t they all?) Our finds in Texas (Dallas area, Austin) and Kansas City (new stuff maybe) are superb opportunities to build the retirement for which you’ve always planned.
Take the first step toward makin’ that retirement a reality and contact me. Use the widget saying Contact BawldGuy — you can’t miss it. I’ll get back to you and your retirement will be that much closer to becoming the reality you’ve thought it could be — should be.
Meanwhile, back at BawldGuy Ranch, after my appointment tomorrow I’m comin’ home to make one of my famous three-day weekend sandwiches and kickin’ back. First the sandwich then the theme song for the next few days.
Posted on May 16, 2008 @ 11:29 pm - Written by BawldGuy
The phone rings and it’s my favorite Texas builder. (A private guy, so won’t be mentioned here by name or company.) He just dropped one our newest and coolest clients off at the airport in Dallas. Spent the day giving him the tour. ‘Steve’ found everything we said he would and more. He’s apparently very pleased he took the time to schedule the detour during a business trip.
We ensured he was taken care of from airport to grand tour to airport.
Met the management team, saw his properties, met the builder himself, and was chauffeured around the area to get a better feel for what his and our research had shown him. His comment? Paraphrased, and taken from the builder — “I knew through the research how incredibly much Texas was growing, but when you see it — impressive.” Or something similar to that.
He’s on his way, and is excited, as we are for him. Steve is a very smart guy who has a nearly vertical learning curve. When he gets back home we’ll talk. I can’t wait. He’s not done yet, which is really gonna be fun. Read the rest of this entry »
In fact, most of what they’re seeing is new to only 5-10 years old. “Geez, I could own 2-4 times what I have now, and not have to manage it myself.” Yep.
