Posted on May 30, 2008 @ 12:06 am - Written by BawldGuy
San Diego and (California in general) has been the best girlfriend ever. Loyal, always thinking of just us, enriching our lives almost without fail, and bringing additional commas to our bank accounts. Talk about having it all, we sure did.
She always played our song. Happy days? The status quo. Even when she was down, we knew from experience she’d bounce back — and even more lovable than before. Well, as happens in real life sometimes, that perfect mate has tired of us and left us high and dry. She’s walking away, and she ain’t comin’ back.
People, that’s exactly what’s happened in California. Investment property has taken a different path. The days of buying, holding for a few years, then selling or executing a tax deferred exchange yielding splashy results are gone. I think they’re gone forever. Why?
Glad you asked.
Your property is now worth, after this market correction, 150-300% of competing markets in out of state growth regions. In San Diego for example, a 35 year old duplex in a decent area sells now for $425-525,000 (often more) give or take. Also, in order to break even every month the investor must put down at least 30% and usually 35-45%. In NoCal 40% is considered wicked good leverage — no kiddin’. The Kool-Aid they drink in Palo Alto and the Bay Area in general is phenomenally effective. They’ll realize too late their lovingly loyal maiden has decided they’re not the Knight in shining armor any more.
Surveys show — capital growth rates fall when leverage is severely depressed. (anonymous smart aleck) Read the rest of this entry »
Posted on May 28, 2008 @ 9:14 pm - Written by BawldGuy
Among the many key factors in the ultimate success of any real estate investor’s retirement is the ability to remain objective while analyzing opportunities. I know yer wondering why I didn’t add a ‘duh’ at the end of that sentence. There are so many who don’t realize the impact of a biased analytical conclusion. Your Purposeful Plan becomes campfire kindling when relying on subjective analysis.
I’ve been in San Diego since ‘67 and seen the phenomenal changes the area has gone through since. Seriously, compared to today, San Diego circa ‘67 was Mayberry RFD. I remember how excited we all were, when as home agents someone listed a $35,000 home! We all wanted to see up close and personally what a house that expensive looked like. When, in ‘71 Dad sold his home, and combined the net proceeds with proceeds from another small project to buy a home ‘up on the hill’ for $115,000! OMG! Lord knows what it’s worth today, 37 years and a three booms later, even with the market correction.
When I made the switch from homes to investment property in the summer of ‘76 we’d just begun the huge run-up of real estate values. It went from about late ‘75/early ‘76 to the fall of ‘79, when it hit an immovable object at 110 mph. It was ugly. Read the rest of this entry »
Posted on May 23, 2008 @ 11:23 pm - Written by BawldGuy
I have an appointment Saturday morning, then off for the weekend. When someone flies in from a couple thousand miles away, you make time for ‘em. Being from the Old School, I’ve always kept in mind that it’s about our clients, and not about us. Few things in life are more important than the successful outcome of a client’s Purposeful Plan for retirement. It’s at least on the A-List.
Since the NASDAQ tumble several years ago we see several people a year who’ve finally decided to move forward and make up for lost time and lost savings — sometimes a lifetime’s worth. I empathize with folks facing the challenge of traveling roads they thought they’d never see again. But like the bumper sticker says, (kinda sorta) Life Happens. We can either pick ourselves up, scream at the injustice and win bigger and better than ever, or wave the white flag and slink away.
I’ve met so many good people who’ve raised themselves higher than they were when Murphy struck. The next time out they changed three very important factors.
They created a Purposeful Plan instead of just investing ‘cuz it was better than not investing.
They funded a Sominex Account with a serious attitude of generosity — might’ve saved ‘em last time.
They brought on a knowledgeable, experienced real estate investment pro who’d already seen the movie a few times.
The best part is, we’re nearing the end of this latest market correction to end all market corrections. (Aren’t they all?) Our finds in Texas (Dallas area, Austin) and Kansas City (new stuff maybe) are superb opportunities to build the retirement for which you’ve always planned.
Take the first step toward makin’ that retirement a reality and contact me. Use the widget saying Contact BawldGuy — you can’t miss it. I’ll get back to you and your retirement will be that much closer to becoming the reality you’ve thought it could be — should be.
Meanwhile, back at BawldGuy Ranch, after my appointment tomorrow I’m comin’ home to make one of my famous three-day weekend sandwiches and kickin’ back. First the sandwich then the theme song for the next few days.
Posted on May 22, 2008 @ 1:31 am - Written by BawldGuy
Still draggin’ from spending three days in Hell’s Special Oven — more often called Phoenix. You don’t realize the toll taken by all the activity, plus intensity, plus the 198˚ heat. I’m exaggerating, as it never got above 154˚ even once.
As I was saying to some of the Phoenix guys there, “Dry heat my hinie. Ask a baked potato what he thinks of dry heat.”
The momentum is beginning to show as it relates to California real estate equity grabbin’ their spurs and headin’ to the Lone Star state. (Did I really write that sentence? See? I’m really that tired.)
When the average CA investor learns they can increase the value of their portfolio by 3-6 times, they sometimes began channeling Rod Serling, background music and all. Increase their tax shelter by 4-8 times? In no time, the only CA real estate left is where they sleep.
Posted on May 16, 2008 @ 11:29 pm - Written by BawldGuy
The phone rings and it’s my favorite Texas builder. (A private guy, so won’t be mentioned here by name or company.) He just dropped one our newest and coolest clients off at the airport in Dallas. Spent the day giving him the tour. ‘Steve’ found everything we said he would and more. He’s apparently very pleased he took the time to schedule the detour during a business trip.
We ensured he was taken care of from airport to grand tour to airport.
Met the management team, saw his properties, met the builder himself, and was chauffeured around the area to get a better feel for what his and our research had shown him. His comment? Paraphrased, and taken from the builder — “I knew through the research how incredibly much Texas was growing, but when you see it — impressive.” Or something similar to that.
He’s on his way, and is excited, as we are for him. Steve is a very smart guy who has a nearly vertical learning curve. When he gets back home we’ll talk. I can’t wait. He’s not done yet, which is really gonna be fun. Read the rest of this entry »
