Posted on July 3, 2008 @ 11:51 pm - Written by BawldGuy
This is a real simple one people. Flippers with at least 2-3 years experience will see themselves here, and nod their heads. They know exactly what’s what when it comes to what they do and what their real estate investor buddies do.
Ya see, even if the flipper does well, he’s paying ordinary income tax rates on his profits. And if not? He’ll get caught soon enough. Seen it too many times. Most flippers though, earn their profits fairly, pay their taxes, then move on to the next one.
‘Course they gotta take out money for themselves before the movin’ on part actually, you know, moves on. After ’bout the third or fourth one, it becomes fairly clear exactly what’s what.
Here’s the dirty little secret flippers won’t bring up while chowin’ down on the BBQ this weekend.
They very rarely retire well at all. They hit 50 or so, then realize the sun is setting quickly their chances for a stellar retirement. It’s not a good feeling. I’ve consulted with several 50-something flippers in the last couple years. It ain’t been pretty.
They’ve discovered all flippin’s got ‘em is a bigger paycheck, higher taxes, harder work, and more liabilities. And they can’t stop, or it’s back to whatever job they hated before they started flippin’ real estate. They’ve built themselves a prison with no doors. Read the rest of this entry »
Posted on July 1, 2008 @ 9:07 pm - Written by BawldGuy
You and I are having a relaxed conversation. You’ve been thinkin’ of contacting me for quite awhile, and finally took the plunge. You’re now pondering the answer to my first question — What do you want your retirement to look like? As surprising as it may be, that question is a poser for lots of folks.
Try not to primarily think in terms of retirement income. Think lifestyle. How much of a traveler do ya wanna be? Wanna be a globe trotter, or are you more a see the grandkids type? What about how you’ll be traveling? Gonna be an ocean goer? Maybe you’ll be staying in the contiguous 48 and takin’ long trips in the cool RV — maybe a $400,000 RV? Hey, it’s your retirement, what do you want? You and I will make it happen. Our #1 weapons? Your vision and my Purposeful Plan.
See what I mean? It’s one thing to randomly think or even talk about your retirement, but try to answer the question concretely and it becomes a different tale altogether. Read the rest of this entry »
Posted on July 1, 2008 @ 12:35 am - Written by BawldGuy
How many times have we been out to breakfast, looking at a menu showing mouth watering pictures of fresh squeezed orange juice? You know the one — a pitcher of juice surrounded by the most perfect oranges the Good Lord ever made? Then while leaving you pass the kitchen and see them mixin’ up another batch, throwing away the frozen concentrate. Hey, those oranges were fresh at some point, right?
It’s all about expectations, isn’t it? I’ve spoken to investment clubs, and the experience generally falls into three categories.
Newish club so mostly newbie investors — great questions, solid response
More mature club, a few ‘leaders’, one of which I inadvertently cross while talking
The ‘1 in 10′ club, interested only in real info, in depth detail, real expertise and advice
After a conversation yesterday with a long time client, I’ve decided what the heck, it might be time to revisit clubs. She recounted a recent trip outa state to her see her brother. They’re both seasoned investors, and he took her a meeting of the local club. She’d told them during a break about how we do things at Brown and Brown, and that we used to speak to clubs like theirs. Read the rest of this entry »
Posted on June 27, 2008 @ 11:10 pm - Written by BawldGuy
There are plenty of things you can do, not the least of which is to recognize the sea change happening in real time before our eyes. I’m worried for your future. You should be too. And no, I don’t think your properties are gonna put you in the poor house, ‘cuz they’re not. This market correction will end, and at some point your properties will not only regain their value, but go higher.
The Problem?
If your real estate investment world begins and ends at San Diego’s borders, you have a big problem. If they don’t, takin’ your equities Outa Dodge will easily mean $1 Million in additional capital growth for most of you in the next decade. And that figure’s a relatively safe one. Talk about the tortoise and the hare. And for the record? It’s only in the fable that the tortoise wins. Where we’ll take you, the hares don’t stop and lollygag. All things being equal, those leaving San Diego with their real estate investment equity/capital will race past those who stay in town.
It’s a no-brainer. Those who leave now, will be working towards another $5,000 a month retirement income in the next 10 years or so, give or take. This isn’t a game. This is your retirement, and I’m serious as a heart attack about this subject. It’s what I do.
Do not invest in San Diego income property now, or keep what you have longer than it takes to sell/tax defer (1031 exchange) your way out. I’ve been tellin’ folks to buy SD property since Carter was in office. I don’t say these things lightly, as I understand the gravity of decisions based upon one’s future retirement income. But it’s the right thing to do. That makes it an easy call.
I’ll be in town this weekend, available by phone and email. I’m pretty good about gettin’ back to folks quickly. So Contact the Hairless One and let’s see what it’s gonna take to get your retirement back in high gear. Oh, and by the way, for clients doing tax deferred exchanges with Brown and Brown, the selling costs will be reduced by $10,000 or more 90% of the time.
Really — wouldn’t kid ya ’bout that.
Now for some kinda sorta on-topic weekend music. (Just go with it, OK?) Have a good one.
Posted on June 27, 2008 @ 11:51 am - Written by BawldGuy
David Shafer and I agree on most things related to the attainment of wealth and a magnificently abundant retirement. Here’s a bonus for my readers today. Wanna know the slam dunk difference between those living a hand to mouth retirement and those for whom the hardest decision is where to travel to next?
BawldGuy Axiom: No wildly successful action ever came from anything but a thought. Thought — thinking, always comes first. Poor thinking = equals poor doing.
A superb retirement comes from Purposeful Planning, doing things on purpose. It doesn’t come from a mental attitude equivalent to rollin’ dice on the Craps table at the casino.
2. You’ll see yourself in all your security driven splendor, then race down the hallway to the door marked ‘DENIAL’.
3. You’ll see yourself, recognize the need for a sea change in your thinking, and begin your new and abundant life.
David and I want everyone to enter retirement with a sense of excited anticipation. If the thought of your retirement makes your palms sweaty, and sleep hard to come by, click the link and read the post. If it changes your thinking it’ll change your life.
Without the right mindset, your retirement might very well end up as a life sentence. When you finish reading David’s stellar post, come back here and take a short listen to the Grandpa Economics podcast. You won’t be sorry.
If you now think you’d like some help with your retirement, Contact Me. I love this stuff. It’s the only reason I keep doin’ it. Let’s figure a Plan just for you.
