Posted on June 17, 2009 @ 9:41 pm - Written by BawldGuy
Investors who can locate solid growth regions harboring well built rentals will do, in my opinion, exceptionally well over the next several years. There are a few spots on the map that fit that bill. With low interest fixed for the duration, high tenant demand, these neighborhoods are few and far between. Guess what I’m sayin’ is, the low end in excellent locations almost always has legs.
San Diego investors — here’s yer choice: You can buy the 2-4 units down the street that’s older than you are, or you can buy two outa state for the same money — and the rent will be the same as your Smithsonian duplex. 
Your pick,…take yer time…..no hurry.
Again for San Diegans — If you’ve tried and failed to sell your units or rental house/condo, it very well could be ‘cuz it stood out like a sore thumb in a valley full of sore thumbs. The way we list and sell local real estate comes directly from the ‘Take no prisoners’ book of Old School. Give me a call if you’ve recently been frustrated. Read the rest of this entry »
Posted on June 16, 2009 @ 7:23 pm - Written by BawldGuy
I know, I know, too subtle, yes? I love saying this ‘cuz it’s true — some of my best friends are agents specializing in the listing and selling of single family homes, condos, and the like. The first seven years of my career were spent learning the ropes doing just that. After doing something for that long one gets the feeling they pretty much have figured out where the bodies are buried. Though I was pretty good after a few years, it became painfully obvious that those with far more experience did indeed have more knowledge, more and better skill sets, and were categorically better agents.
More simply put, they produced higher quality results, most of the time more quickly than I did. As I put more years behind me, I began to understand what Dad and many of his silver haired agents told me. They said after enough time I’d ‘get it’. Who knows when that really happened, but after about five years, my confidence level seemed to be much higher.
I compare it to umpiring at the Division I level of college baseball. You clearly don’t get to that point without having proven yourself. Watch umpires at any level of baseball and observe their body language. You can tell the grizzled vets, right? They’re always where they’re supposed to be at the right time. I used to help train youth umpires while working for the NCAA, and the rookies were an easy spot. Tentative was their middle name. They were never really sure of where to be, the rules, or sometimes even whose call it was.
It gets worse. Read the rest of this entry »
Posted on June 15, 2009 @ 8:23 pm - Written by BawldGuy
Ever been at a mall you didn’t know as well as you thought? You turned left, certain you’d run into the food court only to see Saks Fifth Avenue looming dead ahead? This is interesting to watch in real time while relaxing with coffee and a couple large oatmeal raisin cookies. You notice almost immediately there are generally two kinds of reactions — folks simply keep wandering around, insisting they’re not mistaken — or they pause and ‘reboot’, either lookin’ for familiar landmarks or someone/something to point the way.
Lay this analogy/template over the concept of real estate investing. We often think we know where we are, and/or where we’re going. This is where I’ll insert an axiom.
BawldGuy Axiom: Everyone’s crystal ball is as cracked as the next guy’s. If you think otherwise, stop reading, you’re beyond any help I’m qualified to offer.
Here’s the point: We’re at the place in the up ‘n down world of economic cycles where folks begin tellin’ the world exactly where we are. Most of ‘em haven’t done sufficient analysis or have enough experience to predict anything but that the sun will set in the west. Here’s an example. Read the rest of this entry »
Posted on June 9, 2009 @ 6:37 pm - Written by BawldGuy
It’s of little import whether you’re a seasoned real estate investor or a rookie in the making — whether the market is boomin’ or bustin’, clichés are spouted like weeds in an untended garden. We all fall prey to it, including me. I try to catch myself when I do it, ‘cuz most of the time the cliché is a building constructed on a foundation of sand, unanchored to any real meaning.
Ah, and there’s the rub. Words mean things. When we invoke clichés, even if in some sort of implied general context, when they’re not anchored to specific contextual facts, they become meaningless. In fact it’s worse than that. So often they’re used to keep the speaker behind the curtain of supposed, but faux expertise. Every time you read or hear someone say something that doesn’t really say much (if anything), ask them to say it in a different way.
Then wait for one of two sounds. Crickets or stuttering.
Before continuing down this road, let’s agree there are usually many viewpoints on most any real estate or general economic subject. The point I’d make here is that whatever position one takes on a given topic, said position should be able to be at least minimally supported by other than mealy mouth clichés. That’s not askin’ too much, is it? Read the rest of this entry »
Posted on May 27, 2009 @ 3:38 pm - Written by BawldGuy
What’d'ya mean why? What an inane question. Maybe — maybe not. When I ask that questions to potential new clients in my office or on the phone, more times than not I get a bit of stuttering or an impersonation of crickets. I’ve surmised over the years that much of the reason for those hesitant reactions is they’ve never been asked to specifically delineate their position.
Whether you’re a current or wannabe investor, how would you answer the question?
These are the most proffered responses — in no particular order. Read the rest of this entry »
Posted on May 26, 2009 @ 7:24 pm - Written by BawldGuy
Here’s a very solid comment with an often asked question posed by Matthew. He was commenting on the post immediately preceding this one.
I know that what you are saying is true overall and the economics work out positively, but I do have one question. It seems that when many real estate agents recommend purchasing property as a tax shelter, they neglect to mention the interest that you are paying the bank over those 30 years. How does the interest paid (vs. buying all cash) figure into the equation? I am just thinking about the approximately $250,000 in interest that they’ll be paying if they get the 50% loans.
Originally, the primary goal of the investors in the example had been retirement income — laudable if before tax income was by definition synonymous with after tax income. Alas, for far too many that’s woefully untrue. I’d advised this retired couple to acquire two properties using 50% down payments. The result, without going through the details was a significant increase in after tax monthly cash flow. Read the rest of this entry »