Listening To What We Think The Market Should Be Saying Is No Laughing Matter

Posted @ 1:29 pm - Filed under Real Estate Investing, Weekend Thoughts, Selling Income Property, San Diego Property Owners, Real Estate Markets, Cash Flow, Retirement Income, Off The Cuff, Market Correction, Capital Growth, Palo Alto

I hesitated more than a little before publishing this post, as it’s never my intention to make folks feel badly, even if unintentionally. The thoughts in this post come from a good place in my heart. The San Diego (or Palo Alto?) real estate investors owning income property have seen the changes happening in real time. I’ll confess my slowness in seeing the writing on the wall here. Let’s face it — we’ve been spoiled since, well, forever.

What’s been more resilient than California real estate? There are some regions sporting a similar track record, but when the roll is called, it sure doesn’t take very long. We, me included, have been lulled into a false sense of security by decade after decade of solid if not spectacular returns on our investments here.

Still, it’s not that the page has turned, but the book, and therefore the story and its ending has been changed.

This is the weekend, so I’m having some fun at San Diego’s expense, and mine too, to be sure. 20/20 hindsight tells me I was at least a year late in Gettin’ Outa Dodge — and that was the tail end of ‘03. I should’ve known better. So this video is me laughing at myself, and hoping you as a California real estate investor, San Diego especially, will join with me. It beats the alternative.

The lyrics, ‘Laugh laugh, I almost cried’ sure remind me of when I finally faced the music, that’s fer sure — know what I mean, Verne? We all thought we ‘knew’ San Diego’s real estate market would never turn on us, didn’t we? The difference between the video and our own reality, especially those still holding on to their San Diego properties, is that those in that group can still make the decision to adjust to the market’s reality.

You can literally super charge your capital growth rate beyond what you think. Looking for cash flow? There are literally thousands of San Diego income property owners who think their current cash flow is just fine, thank you. Let me offer some food for thought.

I’ve yet to analyze a local property’s cash flow without showing how their cash flow could easily be increased 3-5 times. And the good part is, it’s just not that difficult. Ask yourself one question for capital growth, or if cash flow is your thing now, one question about that.

Capital Growth — How many years before you’re even back to your properties’ ‘05 values? Why stay mired in quicksand on Purpose? Admit it — you wouldn’t buy your property at today’s prices, ‘cuz they just don’t make sense.

Cash Flow — Why would you continue with inferior income when your impressive equity position can produce so much more? Tic Tock. Once you’re retired, most of your options disappear. Your real estate cash flow will be your ace in the hole. Maximize it’s return.

By the way, remember the dancing back then? If that doesn’t take you back, nothing will.

This entry was posted on Saturday, April 12th, 2008 at 1:29 pm and is filed under Real Estate Investing, Weekend Thoughts, Selling Income Property, San Diego Property Owners, Real Estate Markets, Cash Flow, Retirement Income, Off The Cuff, Market Correction, Capital Growth, Palo Alto. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.