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 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 June 16, 2010 @ 7:23 am - Written by BawldGuy
Written By — David Shafer
I learned awhile back that the worst thing you can do is to follow the crowd. This is even more important to remember when it comes to your financial life. But there is a fundamental tension between following the crowd and going your own way. That is what I have been struggling with for the last couple years. I have lived primarily in Florida for the last 15 years. 10 ½ years ago we bought a home here. 12 years ago I changed my financial philosophy away from the crowd [sold my mutual funds and started a very different strategy]. Read the rest of this entry »
Posted on June 10, 2010 @ 4:23 pm - Written by BawldGuy
Live and invest in real estate in places like San Diego or Palo Alto California? Then you know exactly to what today’s title is referring. Living there is Paradise, but your income property? To be kind, it ain’t what it could be. Even after this correction, as persistent as it’s been, your properties still don’t spin off the income they should, given your current net equities.
Then there is the issue of age, a sore subject in many places, but none more so than San Diego County. Residential income construction has been little more than a faint rumor since Regan’s second term in office. In fact, if you don’t count the ultra-elite apartments which have been built on the coast and in Mission Valley, pretty much nothing of even minor consequence has gone up since around 1987. I know, cuz I’ve seen ‘em not go up. 
Read the rest of this entry »
Posted on May 6, 2010 @ 6:10 pm - Written by BawldGuy
I’ve written about real estate vs stocks ’till it’s almost like beatin’ a dead horse, at least from Wall Street’s point of view. Half the time the posts were written when stocks were ridin’ high. Everyone was lookin’ in the mirror seein’ Donald Trump starin’ back at ‘em. Every time I write about it, the stock ‘n bond guys come outa da woodwork to put in their two bits — for what it’s worth.
Look, if stocks are your thing, good on ya. But today’s post, though short and sweet will starkly draw the differences between the two.
Let’s do this the way Socrates might. Read the rest of this entry »
Posted on February 19, 2010 @ 11:15 am - Written by BawldGuy
This blog is an extension of our firm, Brown and Brown Investment Properties, which came into being January of 1977. I’m the dad now, but was the son then. What we do, put as simply as possible, is take our clients from where they are today, to the best retirement we can create together, never leaving their sides ’till that special day arrives. Oh, and we love being invited to any retirement party.
As you’ve noticed the last several weeks, more authors have begun to appear. This isn’t just a trend, it’s a format change. It’s meant to provide even more solid, helpful information for my readers. This blog’s reputation is for staying incredibly focused on your retirement, how to get you there safely, sooner, and with maximum income, as much of it as possible tax sheltered or tax free. (We don’t talk about unrelated topics here, with the occasional exception for Padres and Charger stuff. Oh, and there are the weekend bio-story posts.) Read the rest of this entry »
Posted on November 24, 2009 @ 6:26 pm - Written by BawldGuy
Some random thoughts about what I’ve been hearing/seeing/livin’ recently.
Interest rates have dropped this week. 30 year conforming fixed rates can be had for roughly 4.5-4.62%. So if you’re in the market to buy a home, I’d find one and lock the rate — sometime around 4:30 yesterday afternoon. Investors not ’saddled’ (How stoopid is that?) with four loans will currently pay in the low 5’s. The best fixed rates I’ve seen for investment long term in my 40 years — period. So if you’re contemplating makin’ a move, ya might wanna light a fire under yer booty, cuz it ain’t gonna last. Ya heard it here first. 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.
Enter what appears to be a paradigm shift — in fact two . Read the rest of this entry »