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 10, 2010 @ 8:36 pm - Written by BawldGuy
There are times when real estate investors must realize it makes sense to take a bullet in today’s battle, in order to win the long term war. This is especially true in formerly uber-high appreciation markets like San Diego — the west coast in general? Now you’re wonderin’ what I mean by takin’ a bullet, right?
It means — for the most part — takin’ less money for your current units than you might think they’re worth. But, if you think you’re takin’ thousands less than you should, but are gonna increase your benefits big time in the future, why are you sweatin’ it? Relax — breathe deep the gathering…hugely increased retirement income. Read the rest of this entry »
Posted on August 9, 2010 @ 7:56 pm - Written by BawldGuy
Last Tuesday I wrote a post on another blog about a strategy available and attractive to many. This is especially true for those in their 40’s who realize that though they may indeed have a boatload of money in their ‘qualified plan’ at work, they also realize it ain’t gonna be enough when it comes time to retire. This is especially true for those of you who have several hundred grand in your 401(k) — a figure that just a couple years ago was, um, larger by six figures. Ouch.
You realize it can happen again, probably will, and if you’re in your 40’s, the market has 15-20 years to make it happen. Not a happy thought.
Anywho, take a look at the above mentioned post, and don’t forget to read the comments while you’re there.
Tomorrow morning I’ll be publishing a follow-up post inspired by the comments you’ll be able to read in the first post. I’m showing what would happen if 20 years ago you employed the strategy I’m recommending. It’s eye opening, and I suspect many will be nudged to rethink what they’ve been doin’ all these years. Here’s the link to the site. I’m not sure what time it’ll be published.
Meanwhile, gimme a call, as I’m Jonesin’ for a fix. 619 889-7100 will find me. Have a good one.
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 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 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.
I get it — mea culpa. Read the rest of this entry »
Posted on July 7, 2010 @ 12:03 pm - Written by BawldGuy
If you haven’t read yesterday’s post, take some time now to go read it here — A San Diego County Duplex vs Texas Duplex. In it, I show the core rationale for San Diego real estate investors, and really the entire west coast, for Gettin’ Outa Dodge. In it I promised to publish a post today showing what the owner of that La Mesa duplex could accomplish in real life with a tax deferred exchange into Texas. This be that post.
The premise is that the La Mesa duplex investor has owned it since forever, and owes nothing on it. He’ll sell it for $300,000 — netting about $275,000 or so after all sales/closing costs. In fact, let’s make that $270,000 — as it’s no doubt being held in place by all the termites holding hands. Yeah, a cheap shot, but I speak from painful and personal experience. Own San Diego real estate? You have termites. Get over it. Read the rest of this entry »