Posted on June 24, 2009 @ 7:21 pm - Written by BawldGuy
Hey AI — Let’s apply your Devil’s Advocate take to San Diego. AI’s thoughts can be found in the comment section of yesterday’s post.
Here are Another Investor’s Devil’s Advocate positions, followed by my thoughts. For the record, AI is one smart cookie. A very experienced investor with a keen analytical mind. Talking with AI is one of my new favorite things to do. So, here we go — AI’s point by point Devil’s advocate position — and my answers.
1. People want to live in SD. Read the rest of this entry »
Posted on June 23, 2009 @ 7:08 pm - Written by BawldGuy
In a conversation the other day, I was talking with a local retired investor, about how folks will analyze properties into submission while missing the basic reason why one is easily the better choice. I used to believe it was merely an indicator of human nature — folks will use analysis sometimes to back up their bias for one property over others. But now? Not so much.
It’s not that investors don’t want the best possible results for their capital. It’s almost always the meshing of objective and subjective gears — easier said than done, right? In areas like San Diego, Palo Alto, San Mateo, San Francisco, and much of L.A. and Orange County, the bias for local property over clearly superior options is still present. I’ll use San Diego as an example. Read the rest of this entry »
Posted on June 18, 2009 @ 8:25 pm - Written by BawldGuy
For so long now I’ve used the ‘Journey to Retirement’ as a metaphor for the real estate investor’s Purposeful Plan. It’s worked well. Sometimes the trip from A to B is a relatively uninterrupted straight line, sometimes, um, not so much. Highway 1031 can be the right road to take now, but the future may tell us something entirely different. The key is always the arrival at point B, right?
Here’s the thing though. All maps are not equal. Let that resonate with you awhile. Imagine your GPS tells you to take a road temporarily closed to traffic. Simple right? You ask for a reroute. But what if your particular GPS isn’t programmed with every road on the map? Furthermore, what if you’re not aware of that minor detail?
Oops.
As an investor your ‘GPS’ is how much you know — about what’s involved at any given point in your journey. That’s a huge pile of knowledge. What’s the #1 lesson learned by all investors, no exceptions? That’s an easy one. Read the rest of this entry »
Posted on June 17, 2009 @ 9:41 pm - Written by BawldGuy
Investors who can locate solid growth regions harboring well built rentals will do, in my opinion, exceptionally well over the next several years. There are a few spots on the map that fit that bill. With low interest fixed for the duration, high tenant demand, these neighborhoods are few and far between. Guess what I’m sayin’ is, the low end in excellent locations almost always has legs.
San Diego investors — here’s yer choice: You can buy the 2-4 units down the street that’s older than you are, or you can buy two outa state for the same money — and the rent will be the same as your Smithsonian duplex. 
Your pick,…take yer time…..no hurry.
Again for San Diegans — If you’ve tried and failed to sell your units or rental house/condo, it very well could be ‘cuz it stood out like a sore thumb in a valley full of sore thumbs. The way we list and sell local real estate comes directly from the ‘Take no prisoners’ book of Old School. Give me a call if you’ve recently been frustrated. Read the rest of this entry »
Posted on June 15, 2009 @ 8:23 pm - Written by BawldGuy
Ever been at a mall you didn’t know as well as you thought? You turned left, certain you’d run into the food court only to see Saks Fifth Avenue looming dead ahead? This is interesting to watch in real time while relaxing with coffee and a couple large oatmeal raisin cookies. You notice almost immediately there are generally two kinds of reactions — folks simply keep wandering around, insisting they’re not mistaken — or they pause and ‘reboot’, either lookin’ for familiar landmarks or someone/something to point the way.
Lay this analogy/template over the concept of real estate investing. We often think we know where we are, and/or where we’re going. This is where I’ll insert an axiom.
BawldGuy Axiom: Everyone’s crystal ball is as cracked as the next guy’s. If you think otherwise, stop reading, you’re beyond any help I’m qualified to offer.
Here’s the point: We’re at the place in the up ‘n down world of economic cycles where folks begin tellin’ the world exactly where we are. Most of ‘em haven’t done sufficient analysis or have enough experience to predict anything but that the sun will set in the west. Here’s an example. Read the rest of this entry »
Posted on June 9, 2009 @ 6:37 pm - Written by BawldGuy
It’s of little import whether you’re a seasoned real estate investor or a rookie in the making — whether the market is boomin’ or bustin’, clichés are spouted like weeds in an untended garden. We all fall prey to it, including me. I try to catch myself when I do it, ‘cuz most of the time the cliché is a building constructed on a foundation of sand, unanchored to any real meaning.
Ah, and there’s the rub. Words mean things. When we invoke clichés, even if in some sort of implied general context, when they’re not anchored to specific contextual facts, they become meaningless. In fact it’s worse than that. So often they’re used to keep the speaker behind the curtain of supposed, but faux expertise. Every time you read or hear someone say something that doesn’t really say much (if anything), ask them to say it in a different way.
Then wait for one of two sounds. Crickets or stuttering.
Before continuing down this road, let’s agree there are usually many viewpoints on most any real estate or general economic subject. The point I’d make here is that whatever position one takes on a given topic, said position should be able to be at least minimally supported by other than mealy mouth clichés. That’s not askin’ too much, is it? Read the rest of this entry »