Where have you been finding those great market yields? Really?
Transcript: Hi this is Jeff Brown the “BawldGuy”. Today, we’re going to talk about understanding what different markets might be giving you. What has always amazed me about San Diego is that single family homes as an investment simply don’t work. When you compare it to other markets, they really look bad; but that’s not the point. The point is you want to find what does work. Now, in San Diego for years, it was two to four units versus the homes. Nothing works in San Diego now. I wouldn’t sell anything to anybody in San Diego, and I’ve thought that for a decade, but there are other states and regions within those states where you’re going to find single families work wonderfully. Then you’re going to go 100 miles down the freeway, and oh, wait, two to four units work a lot better, and the single families don’t; and then you’re going to say, well, wait a minute…I’ve got a single family in the area that you said really didn’t work. Here’s what you’re not letting on; you sacrificed location quality to make those numbers work. That’s going to bite you in the rear end down the road, and you know it. Don’t ever sacrifice location quality in order to make the numbers work. Just take what the market gives you. Try to make things smooth. Don’t try to force things. This is Jeff Brown, the BawldGuy. Thanks for listening today. We’ll see you next time.