Posted on January 20, 2008 @ 9:20 pm - Written by BawldGuy
I’m beat, but tomorrow I’ll start writing about what Josh and I inspected, experienced, and ate. Boy did we eat.
The real estate was more than interesting, it was enticing.
It was beyond cold.
KC folks rock. We enjoyed the seminars immensely.
Gimme a chance to sleep awhile, grab some morning coffee, and i’ll start coughin’ up what we saw. By the way, look for a picture of me in front of a real live KC BBQ. Turns out real BBQ doesn’t come from a grill on the patio after all. 
By the way, if you took my advice and took the Chargers and the points, you cleaned up today. Alas, matching touchdowns with field goals is a losing proposition. The Chargers showed themselves to be one of the toughest group of football players around. They’ve gained my everlasting respect, and that of the league I’m sure.
Can’t wait ’till next year.
Posted on January 15, 2008 @ 12:18 am - Written by BawldGuy
Though it’s my policy to keep emails private, those communicating the following to me have personally given me their official Okey Dokey to pass on their thoughts anonymously. The subject was increasing traffic from people expressing an interest in buying/investing in real estate the last 2-3 months.
I’ll boil them down to bullet points.
The number of calls/emails has risen measurably since school started
The percentage of people actually doing something has also risen visibly
It doesn’t seem to be geographically bound either
Arizona, Texas, Oregon, Minnesota, even New England and Canada reported in
Most, but not all said market times have decreased a little bit
Lenders are proactively reaching out — all but one mentioned this
Brian Brady, my go to mortgage guy, said today lenders are bringing back 80% non-owner occupied stated loans. What will they think of next?
Keep in mind — Whatever Bernanke does or doesn’t do with rates is, in his thinking, secondary to money supply. Keep a watch on how much cash he’s continually dumping into the system. It’s been going on for months now, without the appearance of the inflation monster. Many of his harshest critics are now reduced to calling names, cuz he won’t play by their rules. Yet, as much as they complain he doesn’t get it, things have improved. Even his critics now grudgingly admit his mission to add liquidity is having a positive affect. The jury’s still out, but my money is still on Dr. Ben.
This Thursday Josh and I are winging our way to Kansas City. 
We’ll be speaking to a couple small groups of local investors, giving them a better understanding of their current investment options. It’s invitation only, and you must already own investment real estate to attend. Don’t tell anyone, but though I’m excited about speaking to these folks, of equal importance is getting to finally find out first hand about Kansas City BBQ. Our goal is to be able to walk on our own power and fit into the airplane seats on the flight back.
Very soon, you’ll be able to see for yourself the results of what I’ve spent the last three years molding and shaping. The ‘other’ Brown will begin publishing his own stand alone blog. There are a few who’ve met or talked with him, 
but he’s remained pretty much a mystery since replacing me in the part of ‘Son’ in the Brown and Brown movie. I was first cast in the part back in the ’70’s at about his age. We’re looking forward to launching his blog, and will announce it loudly when it’s imminent. It’s past due, but he’s carrying his weight, and has been from Day 1. Being Dad in this sequel has been eye opening. There have been times when I’ve been in conversations with Josh about one thing or another, when it suddenly dawned on me — wow! I’ve had this conversation before, except I was the son, not the ah, elder statesman. Yeah, that’s the ticket.
Meanwhile, back at the ranch — buy low, sell high, and remember to keep yer Sominex Account topped off. Man, I gotta start goin’ to bed earlier.
Posted on December 16, 2007 @ 6:12 am - Written by BawldGuy
Late yesterday morning we held a seminar here in Austin. Those in attendance were friends of our hosts, Benn Rosales and his wife Lani. Our practice is to invite those who wish to join us for lunch after the seminar. Normally about 2-4 people will show up. Today, every single seminar attendee joined us for lunch. That’s a first. It’s simply never happened. Our best was several months ago in one of our Boise seminars when about half of those in attendance ate lunch with us.
Benn made an astute observation last night concerning the responses of those attending the seminar. As he was watching them, gauging their responses to the different concept explanations, he began to notice a common thread in their response pattern.
Every time I referred to either Purposeful Planning or doing something on purpose, they visibly perked up, many adding to their notebooks. I was of course pleased, but not surprised. Purposeful Planning has always had this affect on investors.
At lunch, a pretty formal affair, held at Fudrucker’s, the atmosphere is relaxed and more one on one. We talked a lot of real estate investment, but the latest in the baseball steroids to-do was brought up, along with all the normal topics.
Everything went as smooth as silk — a direct result of the organizers, Benn and Lani. My job was to show up with my shirt tucked in. Pastry, a couple kinds of burritos, and other cool stuff awaited people as they arrived. Everything those two do is first class then a little bit more. The three of us worked hard this weekend. Our days have started relatively early and ended relatively late. Our brains have slowly morphed into likenesses of the mashed potatoes and gravy we had for dinner with our chicken fried steaks.
Yeah, honey, the healthy diet I’ve been eating went to hell in a hand basket while I’ve been in Texas.
The best thing coming out of this working weekend has been the successful creation of a new language — BawldBennese. Slowly but surely, like mice making fewer and fewer wrong turns in a maze, Benn and I can just about communicate using the new language.
Lani is, how do I put it? Different? She’s different alright — in all the best ways. Smart, gracious, discerning, and possibly the best all around wife/assistant I’ve ever seen in action on the planet. Josh and I need a Lani, but we’d have to pay her six figures. Remember the movies back in the good ol’ days when the powerful exec had an assistant who seemed to make whatever was necessary happen like magic?
That’s Lani. It’s a good thing she’s Benn’s wife, cuz otherwise, he couldn’t afford her. Professionally they’re a well oiled machine and impressive as all get-out.
If it’s Sunday morning, I must be on my way to Dallas. The agenda there is twofold — conclude negotiations with a stellar builder and a good man on a couple dozen duplexes give or take — and hopefully meet Benn’s brother Michael to check out some pretty cool homes nearby. The ambiguity is intentional as we’ve gotta stay under the radar, remember?
A heartfelt thanks to Benn and Lani for a seamlessly executed weekend. Your gracious hospitality, attention to detail, and competence was appreciated — and the coffee cups are very cool. Can’t wait for our visit next month.
Posted on December 14, 2007 @ 11:56 pm - Written by BawldGuy
By being there in person, and forcing the issue today, we were able to walk away from what appeared to be a solid investment opportunity. It still could be if only we’d hear the same story twice in a row from the developer’s mouthpiece. That’s how it is sometimes. Some think they can fool us, but we pay attention.
It’s not that we couldn’t find the pea — we just won’t play. Hide the pea isn’t on our menu.
It was my local guy though who saw through what appears to be some, ah, misinformation put out by the developer’s rep. Details have to be withheld, but suffice to say we were collectively chagrined to learn we’d essentially wasted the last 7-10 days. i say we, which is kinda sorta misleading. Mr. Single Pointe (Benn Rosales — he of agentgenious.com fame.) had documented, hard copy, everything put out by said developer’s spokeswoman. 2 + 2 consistently kept consistently coming up 5.46.
It’s really too bad. There was some pretty solid potential for all concerned, most importantly my clients. This is the way of searching for the next deal. 9 outa 10 fizzle before you hear the fat lady sing. Stellar transactions don’t grow on trees, contrary to what many may believe.
Bottom line — unless we get credible info and a fresh start, we’re walking away.
This is a good thing, though not as cool as successfully concluding our negotiations with them would have been. Our reaction to this turn of events? We retired for the day and ate BBQ at The County Line. We already know where my clients will land. Also, we now know what project is pinging our radar in Texas. No, can’t say where, as remaining under that radar is and remains our best strategy.
Saturday morning finds me giving an investor seminar to a group gathered by Benn and Lani, and Benn’s brother, Michael. Can’t wait. The best part is always, without exception, the question and answer session after I take a breath and stop talking.
Sunday I’m off for Dallas and the conclusion of an agreement to take the remaining inventory of a local builder. His product is high quality, and he, like I am, is old school through and through. What often takes several meetings, conference calls, and two or three false starts, will take this builder and I about 20-30 minutes to get done.
That’s what happens when you’re not playing hide the pea. Old School is where things get done.
Posted on July 16, 2007 @ 9:55 pm - Written by BawldGuy
Meeting with new clients is among my favorite natural highs. I need a fix at least once a week — more if I’m Jonesing. While in Boise last week, I was able to feed this addiction on Friday afternoon by way of a hastily arranged meeting with a new client, who very conveniently happened to live in Boise.
‘Bill’ attended one of my recent Boise seminars hosted by the now famous Jed Galbraith, lending’s answer to Nordstrom’s. Bill was interested in what we said there, and planned I’m sure, to give me a call about getting started. Time passed though, and I hadn’t heard from him.
Turns out he and his wife were a tad busy — adopting their first child, a two year old boy. As it happens with a lot of us, me included, becoming a dad can lend a new sharpness to your focus in life — an understatement if I’ve ever heard one. He contacted me, and when he learned I was going to be in Boise the following week, said he’d do whatever it took to meet with me when I offered.
How can you not love a guy with that attitude?
We met at my favorite coffee house, Rembrandt’s, located in Eagle. It’s a converted church and they did a superb job with the remodel and design. It’s like you’re in a giant living room at your rich aunt’s home. Old, deep cushion chairs and couches that invite you to sit and feel right at home. Trust me, it works.
I set the place for the appointment because everyone seems to like Rembrandt’s. I felt kinda bad though when it dawned on me he worked at Micron which is not the place to be in the afternoon of a workday when you have to take Eagle Road to get to the appointment. Oh, did I mention he’s Mormon? Maybe a coffee house shoulda been on the B-List for potential meeting sites. Ya think?
It didn’t matter because Bill was excited to talk — new fathers are fun.
We talked about his current financial status. He’s one of those guys we all love to hate, as his FICO score begins with an eight. He owns his home with a bunch of equity, much of it gained not only by way of the most recent run-up, but through his hard work fixing and adding. He has some stocks, a significant 401(k) balance, and a great job with good pay. In short, he’s a perfect candidate to begin his real estate investment journey to retirement.
We then discussed my policy of Sominex (Ambien) Accounts. A client without generous cash reserves (stocks, annuities, and bonds count too) is not, and cannot be a client. Bill liked this approach, as he’d had it explained at the seminar. I sometimes use the analogy of squirrels gathering acorns in anticipation of food becoming scarce. Whatever, I explained he had to have adequate liquid reserves — though generous is preferred.
He knows Jed because of the seminar, so I had him contact him to get pre-qualified ASAP. He already has a great 1st loan on his home, and an almost approved line of credit with the same local bank. I advised him to keep his 1st in place as it was fixed and under 6% — Duh. His line of credit will be about 7%, also a pretty good number.
He’ll be able to initially purchase around a million bucks worth of investment property. It’s possible not all of it will be in Boise. He’ll end up with the maximum allowable deprecaition ($25,000) — plus some to offset a portion of his capital gains in the future when he sells.
Part of his Purposeful Plan will include the fact that because of his recent adoption he’s the recipient of a $10,000 tax credit!. That, along with his anticipated $25,000 annual depreciation will allow him to pull out significant cash from his fat (for only 38 years old) 401(k), while paying little or no taxes.
I’m excited for Bill because he’s about to ensure a magnificently abundant retirement.
I was pretty tired going into that meeting. There’d been a day and a half of nearly non-stop appointments phone calls — you know how it goes. But once Bill and I were about 10 minutes into our conversation, it was like he’d given me the magic elixir of boundless enthusiasm and energy. Bill’s excitement and enthusiasm, mostly borne of his new son I’m sure, was contagious. He had me banging the drum for sure.
New daddies often have a more powerfully focused financial agenda. I remember when Josh was born, and overnight I became much more purposeful — so to speak.
Bill’s already been in touch with Jed, and the wheels are turning. The whole trip was worth it because of that 90 minute window. An unexpected fix never hurts.