Wishin’ & Hopin’ Ain’t Gonna Get It San Diego (California) Real Estate Investors

Posted @ 12:06 am - Filed under 1031 Exchanges, Purposeful Planning, Retirement, San Diego Property Owners, Real Estate Markets, Cash Flow, Retirement Income, Market Correction, Leverage, Capital Growth, Dallas, Austin, Kansas City, Goals, Palo Alto, Texas

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)

Imagine…

Massive improvement of your capital growth rate in real terms in real time.

Increasing your tax shelter by 2-10 times what you currently enjoy — really.

Owning 2-5 times the property you own now in terms of dollar value.

Reaching retirement with annual income surpassing your best years on the job.

You can turn imagination into reality via your own Purposeful Plan — but it has to start with you. You must make the decision to see what the new San Diego/California reality is and will be, then take action.

Wishin’ and hopin’ for the cycle to return to ‘normal’ isn’t gonna make it so. She’s not comin’ back and that’s the new reality for all of us. We all need to learn the lesson that if she doesn’t want us, we should go find a new one who does.

I heartily recommend several possibilities. How ’bout just north or south of the MetroPlex in Dallas/Fort Worth? Or Kansas City? Austin will soon be smiling at us again. (And Sshhhh! Don’t tell anyone, but a little birdie has shown me a cool little pocket in a new area for which we’ve studiously avoided for years. Details as it develops.) Those are just two options with many different locations of opportunity among them. 2-4 times the leverage while maintaining the same or better cash flow. Try as little as 10% down while breaking even — before taxes. (income, that is) 20% yields more income than Californians would know how to handle.

She’s not comin’ back, ‘cuz she doesn’t love us any more. We need to get used to it. It’s a reality that isn’t gonna change. What we need to do is show our retirement plans that we love them, and we care. (Doesn’t make sense for you? Wait — there’s a video )

Seriously? What’s at stake for us is our retirement. The #2 factor (#1 being our health.) in the quality of our retirement is the size, reliability, and taxation of our income at that juncture in our lives. And the most critical factor in the development of our retirement income is the long term and protected growth of our invested capital. San Diego/California investment properties, once magnificently turbo charged engines of capital growth, are officially outa gas — and the pumps are closed forever.

Moving your capital and/or property equities to regions acting like San Diego/California used to is the answer to stalled growth. Not doing so will significantly degrade your retirement. I realize that’s a harsh concept to swallow. Chew on it awhile. Let it become real in your own time.

But let it become real — ‘cuz wishin’ and hopin’ will find you falling short of your retirement goals/plans if you don’t. This is where Purposeful Planning makes a difference. Let us Plan your move to much better performing regions. By contacting me, the Hairless One, you’ll be taking your first step to securing the retirement for which you’ve been striving.

Dusty has a message for you.

This entry was posted on Friday, May 30th, 2008 at 12:06 am and is filed under 1031 Exchanges, Purposeful Planning, Retirement, San Diego Property Owners, Real Estate Markets, Cash Flow, Retirement Income, Market Correction, Leverage, Capital Growth, Dallas, Austin, Kansas City, Goals, Palo Alto, Texas. 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.