Posted on August 24, 2009 @ 8:25 pm - Written by BawldGuy
I’ve admitted over and over here, that I’m dyed in the wool Old School. When I was encouraged to write about what I know online over three years ago, I thought they were kiddin’. Little did I realize what it would eventually lead to. Ultimately it’s what allowed me to take Brown and Brown Investment Properties more or less nationwide. ‘Course so far there’s only six states in our version of ‘nation’. 
As San Diego prices have fallen, we’ve altered our stand on local property. Though San Diego income property is still not what we’d grade as A+ – it’s now sporting numbers worthy of serious investors. So we’ve decided to reenter the local market, acting as agents for buyers and sellers of investment property as we did from 1977 until 2004.
Here’s how you can help me out. I need your thoughts on websites offering local MLS searches. We’ve been busily researching various ideas as it relates to the San Diego investor — along with those who’d like to explore investing here from outside. One of the tools under consideration is a local MLS search on the site. It would be limited (if possible) to residential income properties, mostly small ones. We don’t wish to confuse traditional homebuyers.
What are your thoughts on trading your email address for the ability to search?
Would it be important to have analytical tools available for your use on properties found using the MLS search?
Also, would videos on various real estate investment topics be of value to you?
I appreciate all you have to say — thanks in advance for your thoughts. Also, if you have an idea I’ve not addressed, please tell me about it.
Call me as always with your real estate investment questions. 619 889-7100 — have a good one.
Posted on February 19, 2009 @ 10:44 pm - Written by BawldGuy
Having been licensed since Moses’ son died, I’ve been through markets tilted towards buyers or sellers a few times. Sometimes it’s kinda sorta pronounced, and sometimes it’s ‘Ya gotta be kiddin’ me’. Ask buyers what it was like in the legendary seller’s markets 1976-79, 1986-89, and the mother of all seller’s markets, 2001ish-2005. Opening offers on half decent properties began at listed price. After the seller was able to stop laughing long enough to counter ‘that callus insult’, the buyer’s E-Ticket ride began in earnest. As a real estate broker, you quickly learn that in any extremely unbalanced real estate market, half the time you’re holding four aces with a king kicker, the other half you find yourself gamely trying to hold your own with a 10 high nothin’. That’s when it comes down to experience, knowledge, and the big one, real expertise. The kinda expertise that produces the only commodity in which savvy investors are really interested — RESULTS.
Investors with income properties in areas like San Diego, and there are a few of those areas around the country, have seen the value of those properties headin’ south for quite some time. It’’s a fact of life these days — being a seller now means you better be one very serious camper. But that begs the question, ignoring the 900 pound gorilla sittin’ in the corner.
Why would an investor choose to sell one or more of their props in a overwhelming buyer’s market?
There’s lots of answers — want ‘em in numerical or alphabetical order? Read the rest of this entry »
Posted on September 4, 2008 @ 12:31 am - Written by BawldGuy
It’s so easy to talk about moving real estate equities from here to there like your rearranging furniture in the living room. In practice it takes real experience, knowledge, and expertise to pull off. Though I’ve ‘captained’ hundreds of tax deferred exchanges (stopped counting), each one has to be executed to near perfection ‘cuz that’s the only thing the IRS understands. It’s not rocket science, which is what so many real estate folk want you to believe. Still, do it with a cocky attitude and you’ll find out in real time what a bad day’s all about.
For the record, Brown & Brown has never, not once, failed to successfully finish a 1031 exchange. How do you know that’s true? ‘Cuz I’m alive, dude! What would you do if an agent messed up your exchange, costing you six figures in capital gains taxes? Exactly.
Let’s talk nuts and bolts first. How do you sell a property in a place like San Diego these days? That’s no walk in the park, as you may have guessed. It’s not like yer able to head over to the parts store like Grandpa used to, when the family jalopy needed work.
Gonna be brief tonight.
When selling property in a buyer’s market, which is also known for it’s relatively high prices, you must be serious. I’ll only talk tonight about the first step, which is simple as pie. Read the rest of this entry »
Posted on August 27, 2008 @ 9:46 pm - Written by BawldGuy
Ironically, pics tonight will be of Durango and Silverton trip. As you might expect however, after this post there’ll be San Diego pics galore just around the corner.
It’s now been almost five years since we begun refusing to sell anyone San Diego investment property to investors. Shortly after Labor Day we’re reentering the San Diego market. Don’t jump to any premature conclusions about this turn of events. We still won’t sell local property to investors. The lone exception is if their Plan is to live there also. Even then, it’ll be a last resort.
To subtle? We’re comin’ back to help local real estate investors move their SD equities Outa Dodge and into far better areas for capital growth. That is why you invested in the first place, right? You know, grow yer capital so your retirement would be the best you could make it? Thought so. We will not assist folks in the acquisition of local property. The lone exception will be for those few who will be living in the property. Even that exception will be considered a last resort. See? No change of heart whatsoever. We believe with all our hearts San Diego is truly Paradise — as a place in which to live. It’s where real estate investment portfolios go to die though. Just so ya know where we stand. Kinda left subtle in the dust with that one.
BawldGuy Axiom: San Diego (Paradise) is the best place on earth to live, but not the region in which real estate investors should put their capital. San Diego income property is over for the foreseeable future. Read the rest of this entry »
Posted on May 18, 2008 @ 11:38 pm - Written by BawldGuy
As I wrote earlier this week, I’m in Phoenix for Unchained. Though I’m an ‘instructor’ here, their word, not mine, the opportunity to learn is almost overwhelming. I’m not a tech guy by any stretch of the imagination, but some of these folks? If I studied what they did for a year, I still wouldn’t no what they’ve forgotten. You can’t put a value on that, ‘cuz if you did, nobody could afford it.
It affects how I do business and the value I’m able to offer my clients. It’s a huge deal. Already there are folks showing me how to bring Brown and Brown’s service to higher and more effective levels — always a good thing. We’re always looking to improve what we deliver to our clients. Good enough, simply isn’t good enough, know what I mean, Verne?
Our main concern is always measured in terms of end results for our clients. Let’s just say I’m jazzed within an inch of my life after what I’ve seen and heard today. And there are still a couple days left. We’re gonna get even better.
Very cool.
Though I’m on the agenda for Tuesday morning, it pales in comparison to the learning I’ve been afforded here. I’d love to walk away after my turn in the barrel knowing I was at least able to match the Gold Standard set so far.
I don’t know who the smartest person in the room is, but it certainly hasn’t been me. Some of these tech people make me feel like Forrest Gump’s slow little brother. Geez.
Talk with you tomorrow.
Posted on March 28, 2008 @ 11:00 pm - Written by BawldGuy
Greg Swann the owner/operator of BloodhoundBlog, one of the most influential real estate blogs in the country. Full disclosure — I’m a contributor there, and have been almost since Bloodhound started recruiting outside bloggers.
Greg had read a comment I’d made on another contributor’s post, and wanted to talk about it. He decided to post the interview on his blog, but let me put it here too.
I’ll be teaching at a conference put on by both Greg and Brian Brady (another BHB contributor) in Phoenix. It’s called Unchained and has already proven popular based on ticket sales. If you’re a real estate professional, agent/broker, mortgage broker, etc., I strongly recommend you consider attending. Most of these things aren’t worth much except for the exceptional networking opportunities. Unchained will definitely be different. Teaching and learning will be jam packed every day.
Back to the interview.
You can listen to the interview here — it’s short, lasting less than 7 minutes.
There are 3 choices at the end of the post allowing you to listen. They all work quickly and well. The ‘download’ option went directly to my iTunes app.
Meanwhile, have a great weekend, as I plan to sleep in big time.
Posted on March 27, 2008 @ 11:40 pm - Written by BawldGuy
Though we’ve been to Austin, Dallas/Fort Worth, Kansas City, Boise, Phoenix, Palo Alto, and the list goes on, we’ve pretty much ignored San Diego real estate investors for nearly five years. Our plan calls for reentry in April or May. And no, we’re not gonna be tellin’ folks to buy San Diego investment property. It hasn’t made sense for a few years now. In fact, we don’t think it will ever be wise to invest here again.
Why?
Here’s the short version.
Your half million dollar duplex has monthly rents these days of $1,800-2,500 or so. For easily less than half the value of your property,
you can own a duplex (and brand new, not ancient like yours) with monthly income of $2,000-2,400. Does yours offer 3 bedrooms and 2 baths? And an attached 2-Car garage? In a neighborhood you’d allow your 70-something mom live in by herself?
I’d put my mom into these properties to live alone. In Phoenix they started calling it BawldGuy’s Mom Rule. If I wouldn’t put Mom there, don’t tell me about the property. That policy cut out a whole lot of useless conversations.
If your small 1-4 unit residential income property has a net equity of $60-500,000 you’ll be able to move that equity, tax deferred no doubt, to areas in the country allowing for leverage San Diegans can only experience through time travel, or Grandpa’s stories. Your capital growth rate will soar. Oh, you’d rather have a whole bunch of cash flow? How ’bout doubling to quintupling your current cash flow?
San Diego income properties simply cannot compete with other regions. It’s not possible. And if your Plan calls for you to sell your San Diego stuff in the next 3-10 years, here’s something to think about.
If they’d be ah, ill advised to buy your property today, at it’s lowest value in quite some time, how silly is it gonna be for them to buy it in another decade? It’s ancient now, right? If it’s value goes up in the next 10 years do you believe they’ll pay even more? Really? It’s my professional opinion they won’t — even if they were all the colors of the rainbow.
The bottom line is this: We can get you Outa Dodge — significantly increase your capital growth rate and/or cash flow — plus your tax shelter — while dramatically improving your chances for a magnificently abundant retirement.
Let’s continue with an example of what’s possible.
Let’s use your duplex mentioned above, with loans totaling $250,000 — here’s what you can do.
Your net proceeds from a sale will be more than you might expect because of our new business model. Instead of having sales/closing costs of around $40,000 or so, they’ll be far less. Brown and Brown no longer takes a listing commission of 3%. Tell me that isn’t cool. More on the details later. (Or, here’s an idea — you can contact us and we’ll give you the scoop way before everyone else finds out.)
Even with the normal brokerage fees your net proceeds from a sale will be about $210,000 +/-. With that capital we can tax defer you into $1-1.5 Million of very well located property — brand new too. And that’s not all, not by a long shot. The problem is, most folks don’t know what to do, where to do it, or who can help them get it done. In what direction should they go?
You’ll increase your annual depreciation by over $40,000 — not an insignificant improvement.
The difference is we’ll take your equity from here to there for a whole bunch less — and with way better marketing. We suspect our new model will end up costing our San Diego sellers about 75-90% less on the listing side of the commission. There’s nothing we can do with the buyer’s agent’s cut.
I mentioned marketing. We think those who have been selling small income props have been getting short changed on the quality of marketing. This has resulted in most of these props not selling, or taking forever. We’re gonna change all that — or at least that’s what it says right here.
Back to saving money.
This will result in a savings of well over $10,000 per property at the half million price range.
We’re serious about this.
Are you serious about your retirement plans? Are you seriously counting on San Diego to yield the retirement income you’ll need? If you could safely double, triple, quintuple your retirement income — never mind, silly question.
What are you waiting for? Contact me — we’ll sit down and let you know what’s possible. Most San Diego property owners can make surprisingly significant improvements in their capital growth rate, cash flow, tax shelter, and retirement income.
We’ll be standing by — there’s a pretty convenient Contact BawldGuy button on the upper right side of this page. Says ‘Contact BawldGuy’ and everything.
It works too.
Posted on March 24, 2008 @ 9:45 pm - Written by BawldGuy
So many folks in brokerage end of real estate talk about teams. Investment real estate by necessity brings the concept of a team or teams nearly to an art form. Back in the late ’80’s I was forced into the whole team concept. Getting things done and done right was becoming problematic. This is irritating when representing buyers & sellers with their homes. When it comes to investment properties, problems can escalate beyond irritating faster than your radar gun can track in real time.
20+ years of team building and before you know it, yer kinda good at it.
I’ve always had access to real estate attorneys, as they can not only provide answers to thorny issues arising at exactly the wrong time, but also help you avoid myriad potential disasters 
altogether. See? Purposeful Planning. Asset protection is tossed around at the neighborhood BBQ (that’s BBQ grille for you purists) these days as if it was as easy as falling off a log. Did I say access to real estate attorneys? For Heaven’s sake, back in ‘77 when Brown and Brown opened for its first day of operation, one of the partners had a full head of blonde hair, and the other was not only a real estate broker, but — wait for it — a real estate attorney too.
Protecting assets isn’t, and should never be, an afterthought — au contraire.
David Stejkowski (pronounced however it makes you feel best) is a dirt lawyer. In fact, he’s The Dirt Lawyer — and 
beginning tomorrow will also be a contributor to these pages. He and I have been going back and forth for several months now, and I’m convinced he’s my best find in some years. I’ve been floating around using different real estate attorneys since my all time favorite died some time back.
We’ve also talked about the cost of the average real estate attorney, a subject near and dear to David’s heart. Brown and Brown clients will learn quickly how a The Dirt Lawyer can make things happen without tearing your wallet a new one.
David is the real deal — but I’ll let you decide for yourself.
All he does is investment real estate and related issues. Calling David a specialist is abusing the concept of understatement. I’ve closed millions of dollars of transactions. David? He’s closed billions of dollars in real estate transactions. Right — with a ‘B’.
We’ve already had several conversations, both by phone and email. He’s what I’ve been searching for the last several years. He’s also a principal in a brand new title company — but that’s an entirely different, albeit interesting post.
So look tomorrow for David’s first post — first as in ‘of many’.
Welcome to the team, David.