Real Estate Investing Through Purposeful Planning
In yesterday’s post, in which I addressed why Texas is the place to put your real estate investment capital, Dave, a reader for some time, apparently, asked a couple questions. They were so good, especially the second one, I thought the answers deserved center stage. So, thanks Dave.
Here’re Dave’s questions, verbatim, with text before and after, edited out. You can still see his comment in its entirety by going to the link above. [Read more...]
This will be short and sweet for a couple reasons. First, tonight’s post is over at BiggerPockets Blog. If you’re not acquainted with it I give my full and energetic endorsement to it. I’ve been writing there for a couple years, or at least in a few weeks. It’s the best membership site for real estate investors in the country.
Anywho, I wrote about an ongoing case study over there this morning. It’s about combining several strategies dynamically to improve your end game results, which is spelled — Retirement Income.
BawldGuy Heads Up: Tomorrow (Wednesday) I’ll be out of touch with the world completely. Gettin’ some dental work done, and they wanna knock me out to do it. Works for me. 
I’ll be available for calls beginning at noon Thursday. ‘Course by then I’ll be Jonesin’ for a fix. You can help me with that by callin’ me at 619 889-7100. Or you can, if you prefer, send me a note using the Contact BawldGuy button up top. Have a good one.
So many of you who come here regularly know my professional opinion when it comes to investing in San Diego real estate long term — DON’T. Same goes for the rest of California and the west coast for that matter. Stayin’ away is your best approach.
Why?
The answer is simple, but multi-faceted. I’ll be brief. (Hey! I heard that snicker in the back.)
1. The vast majority of property out west is relatively older. In San Diego, anything built in the 80′s is called newer. If it makes sense to keep a property for the duration numbers wise, but it’s 40-100 at your retirement, your cash flow will suffer noticeably. [Read more...]
Long time readers know what I think about worshipping at the altar of cash flow — it can wound, even maim what coulda been a magnificently abundant retirement. I’ve written often on the subject. It’s my thinkin’ that the one I wrote a couple years ago was possibly my best effort.
It talks about a couple guys who came into my office quite some time ago. Real folks, in the flesh, with real agendas and money to back ‘em. A father and his son — from different schools. I learned much about human nature from those two.
Anywho, here’s what I really think of cash flow vs capital growth — read and enjoy. I hope ya like it. Better yet, I hope it helps in some small way.
I’d love to talk with you about your retirement goals. Call me at 619 889-7100 — let’s put our heads together. Or, if you’d rather write me first, click on Contact BawldGuy up top, and we’ll start that way. Either way, do it quickly, cuz I need a fix. Have a good one.
BawldGuy Here: I first published this piece about six months ago. I was thinkin’ it was time to put it up top again. Hope it sheds some light for ya.
There are multiple schools of thought related to investing in real estate for retirement. Two dominate.
One says you buy property, holding it forever. When you’ve saved sufficient capital to buy additional property, you do — then hold IT for evermore too. The idea is you allow rental income to pay off debt as quickly as possible, arriving at the point of a debt free cash flow machine. Do this a buncha times and you’ve built the foundation for a nice retirement income stream.
Or so the doctrine goes.
The other school’s doctrine teaches cash flow comes from the yield on capital or equity in an asset. The bigger the capital amount or equity in the asset, the greater the income, measured in dollars. The ‘yield’ itself is expressed in terms of a percentage. For example, 7.5%. This commandment says that since the yield is equal, more or less, for a more substantial or less generous figure, why not arrive at retirement with the largest amount of capital and/or equity possible? [Read more...]
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