Posted on February 24, 2010 @ 8:01 am - Written by BawldGuy
Cash flow is sooooo sexy, isn’t it? Even the phrase itself flows through our minds generating rivers of soothing endorphins. All cash flow ain’t equal of course, as many real estate investors will readily attest. A client once told me, fire almost pouring like lava from her eyes, that she felt she was making half of minimum wage just to get the so-called ‘crazy good’ cash flow her properties were ‘generously’ disgorging every month. She always did have a way with words. Oh, how she resented those units. I made the mistake of laughing — just once though — as she finished one of her rants. Her husband told me later it was OK to laugh, as he too thought it was Grade A standup material.
San Diego income property owners are acutely aware of what I’m talkin’ about here. Many of ‘em aren’t laughin’. It’s past time most of them shift into forward gear and begin the process of moving their equities to better performing regions. The same could be said for areas like Palo Alto, CA.
Resent cash flow? Really? Are you thinkin’, ‘I’d love a chance to resent some ‘crazy good’ cash flow. Please, gimme the chance.’ Read the rest of this entry »
Posted on February 17, 2010 @ 4:00 am - Written by BawldGuy
My parents and grandparents, more so with the latter of course, imbued me with a deep respect and understanding of the economic/financial ‘normal’ which permeated their lives. Even when some of the paradigm shifts radically changed the landscape, post WWII, their mindset for the most part wavered not an inch. I’ll confess to being the typical Boomer, in that my early adult years demonstrated a combination of ignorance and a certain self assuredness not supported by either empirical evidence or personal experience.
Put more succinctly, I was the typical 20-something know-it-all whose real life lack of experience, expertise, and knowledge was nearly immeasurable.
Then several ’storms’ converged to enlighten me. Read the rest of this entry »
Posted on January 28, 2010 @ 5:00 am - Written by BawldGuy
Been a busy BawldDude lately. The transition to a multiple author format is one I’ve taken very seriously. Anyone I choose to write here must be, to use a highly technical term, a slam dunk expert in their field. So far, Wall Street trader icon Max Whitmore, the first such contributor, has been incredible. Understand though, as soon as our subscription site is up, he’ll be writing there only.
David Shafer is the man when it comes to the EIUL. David Stejkowski is the most experienced real estate attorney (DirtLawyer) I’ve ever met. Anyone who’s closed over a billion dollars in transaction has my attention.
Soon, I’m hoping I’ll be able to persuade Tom Vanderwell to join us too. He’s one of the two or three lenders I’ve met who know which way is north on the map — and in a big way. The guy is the real thing. Read the rest of this entry »
Posted on January 7, 2010 @ 5:27 pm - Written by BawldGuy
One of the things this blog is known for, is how focused it is. It’s about investing in real estate for a magnificently abundant retirement. Sure, there are one or two other vehicles I recommend from time to time, but only as part of your particular Purposeful Plan.
Also, it’s been my aim, and I think successfully, to make this blog open to honest debate, but while using the manners most of us were taught as kids. This isn’t Tombstone, this is Mayberry, so to speak. I don’t cultivate false controversy or drama here. This blog is to generate business for me, sure, but by way of education, enlightenment, and helpin’ those who would like to learn without the trauma of making real life mistakes. Read the rest of this entry »
Posted on December 15, 2009 @ 3:48 pm - Written by BawldGuy
When any particular resourse we have is finite in nature, trading it for something on our menu means, by definition, there’s something for which we didn’t trade. Though we chose ‘A’ over ‘B’, part of the cost of choosing ‘A’ was passin’ on ‘B’. Much of the time we learn what that exact cost was by way of hindsight. Best case scenario is that cost being, more or less, about what we thought in the first place.
This concept is called opportunity cost — the economic consequences of choosing one thing over another. Sometimes the cost isn’t just economic. For example, did you attend college? Did you have a wide choice? Years later, are you happy with the one you chose? Opportunity cost. Read the rest of this entry »
Posted on December 14, 2009 @ 4:18 pm - Written by BawldGuy
BawldGuy Axiom: The farmer who plows and plants in spring is never shocked to be harvesting bountiful crops in autumn. (How’s that for openin’ up a big ol’ can of Duh!?)
What comes before constructing a Purposeful Plan?
What comes before buying low and selling high?
What must come before anything you and I choose to do or accomplish?
What precedes a college diploma?
A decision must be made. Read the rest of this entry »
Posted on October 29, 2009 @ 8:21 pm - Written by BawldGuy
I often mentor agents around the country wishing to speed up their learning curve on what many call ‘the dark side’ — investment real estate. Almost always, they ask what one thing would I tell them they may not have already suspected about what we do. The answer surprises most, but I’ve found it to be true wherever I’ve done business.
I’ve learned that more often than not, my job is to dissuade folks from either doing what they’ve set out to do, or in doing anything at all.
Professional advice should be just that — professional. The majority of the time either the facts aren’t what the investor seeking advice perceives, or they are, but their conclusion is erroneous. Over half the time it either makes more sense to stand pat or to do something different than planned — sometimes very different. Read the rest of this entry »
Posted on October 13, 2009 @ 8:47 pm - Written by BawldGuy
Consider this the first of many, (Lord only knows how many) posts on Self Directed IRAs/401Ks — along with acquisition of real estate using them as a tax deferred vehicle. Geez, just reread that sentence, and it sounded like one of the talkin’ heads on CNBC’s many financial shows. 
Anywho, let’s get started.
Let’s start with the answers to a buncha basic questions.
Just what is a Self Directed IRA?
In a nutshell it means you’re in charge of what investments will be made. But there’s a caveat. Not all are created equally. Some say you’re in charge yet limit what’s on your investment menu. Pick your ‘custodian’ carefully, as there are many ways a high quality custodian can be worth their weight in gold. More on custodians later. Read the rest of this entry »