by on October 18, 2011 6 Comments

The Paradox — Why San Diego and California In General Are Terrible Long Term Plays, But Sometimes Golden In the Short Run

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...]

Filed Under: Capital Growth, Purposeful Planning, Retirement Income, San Diego Property Owners
by on October 17, 2011 Leave a Comment

Happy Monday — Or At Least What’s Left of It

So, here I am, having just made it through another boring day in Paradise, better known as San Diego. Never left the office from the morning till about 90 minutes ago. Was able to talk to some very cool folk, including a couple of ‘em who were fixes.

Two in one day, talk about endorphin overload. :)

OK, so what I’m avoiding saying is that I just don’t have a post in me today, and my contributors are busy takin’ care of their own businesses. Still, if ya wanna talk, and are willing to wait till Tuesday, you can reach me at 619 889-7100. Some like sending me a note via the Contact BawldGuy button. We’ll talk about how to get you to the retirement you’ve always thought was yours for the taking. Have a good one.

Filed Under: San Diego Property Owners
by on September 19, 2011 Leave a Comment

Becoming Your Own Phoenix – Rising From Real Estate Investment Ashes II

In the last epispode we left our real estate investor between a rock and an evil place. He owned props in both CA and Florida, and the news wasn’t good. Each market was racin’ the other one down, neither allowing a sale to happen no matter how hard he tried. $3-400,000 in net equity was beginning to look a whole bunch like well under $200,000. In sophisticated real estate investment circles we call that a bitter pill. :) And no, it ain’t funny. Been there, lived that more than once.

Allow me to suggest an alternate title for this piece.

How ’bout — My Name is K-Mart, But My Friends Call me BlueLight.

BawldGuy Axiom: If you’re investing for retirement, and contemplating a significant move/change, it better be a slam dunk no-brainer. Retirement planning isn’t a game. [Read more...]

Filed Under: Purposeful Planning, San Diego Property Owners
by on September 14, 2011 3 Comments

How To Rise From Real Estate Investment Ashes – Be Your Own Phoenix

I speak with investors nearly weekly, and have clients, some currently active, who own income properties where Murphy has settled in. Think Florida — Vegas — two or three states in the Midwest. As a matter of fact, there are folks in my own Golden State of California who’re havin’ serious problems as they do their level best to Get Out Dodge.

Though there are many solid things you can do to enhance the likelihood of sellin’ your properties in loser locations, the one that works virtually every time it’s tried is pricing. As in LOW pricing. Sure, new paint, carpet, sprucin’ up the yards, and makin’ sure everything works well greases the wheels, but if the price doesn’t wow ‘em, they’re on to the next batch of 10 before you can say, but . . . but . . . wait . . .

Assuming your end game is to take whatever net equity you salvage to a better suited, more dynamic market, financing a sale yourself defeats that purpose by definition. Allow me to construct a scenario based upon recent experience and calls. [Read more...]

Filed Under: San Diego Property Owners
by on August 17, 2011 1 Comment

The Age Old Tug of War Between Schools of Thought – Long Term Real Estate Investing

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...]

Filed Under: 1031 Exchanges, Capital Growth, Cash Flow, Depreciation, Retirement Income, San Diego Property Owners
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