Real Estate Investors Movin’ Capital From California To Texas

Still draggin’ from spending three days in Hell’s Special Oven — more often called Phoenix. You don’t realize the toll taken by all the activity, plus intensity, plus the 198? heat. I’m exaggerating, as it never got above 154? even once.

As I was saying to some of the Phoenix guys there, “Dry heat my hinie. Ask a baked potato what he thinks of dry heat.”

baked potatoes

The momentum is beginning to show as it relates to California real estate equity grabbin’ their spurs and headin’ to the Lone Star state. (Did I really write that sentence? See? I’m really that tired.)

When the average CA investor learns they can increase the value of their portfolio by 3-6 times, they sometimes began channeling Rod Serling, background music and all. Increase their tax shelter by 4-8 times? In no time, the only CA real estate left is where they sleep.

The math is usually what tips the scales. Staying in CA requires a minimum of 15% annual appreciation just to stay even with 5% on their Texas stuff. OK, put yer hands out palms up. While doing the ‘scale’ thing, ask yourself whether you’d like to bet your retirement on getting 5% or 15% appreciation yearly to hit your goals.

5% of $1.5 Million = 15% of $500,000.

The latest Brown and Brown example will be one of our newest clients preparing to exchange roughly $300,000 equity in San Diego property into Texas. They’ll end up with $2-2.5 Million in well located property in two or three areas not in CA. He’ll increase the value of his holdings 4-5 times. His tax shelter will rocket up by — no foolin’, I’ve done the numbers already — well over 12 times.

We call that Big Time Improvement — BTI — a real estate investment technical term.

5

At 32, and with a projected annual appreciation of only 5% a year — never more, just 5 — he’ll easily be able to retire before 50 — maybe by 45 with a little luck. And the cool kicker is, his retirement income will exceed his best salary year on the job. Most folks, by the way, should be able to retire with an income in excess of their best years on the job. The difference is, they won’t pay as much in income taxes.

BawldGuy Axiom: Tax shelter is a good thing. Excess tax shelter is often more better.

He’s gonna be gettin’ all this done by following the Purposeful Plan created specifically for his financial situation. By the end of the year he’ll be Outa Dodge — having converted his moribund San Diego capital into a turbo charged capital growth machine.

It all started with an email. He clicked on the Contact BawldGuy text, and before long he was about to close his first Purposefully Planned real estate investments.

You can do the same thing — it starts with a decision to improve the status quo — then starting a conversation. I can’t wait to hear from you. Calling is cool too — 619 298-8100.

Hellloooo — click click already.

2 thoughts on “Real Estate Investors Movin’ Capital From California To Texas

  1. David Stejkowski

    It is a fun time to be doing deals, actually. The challenge makes it more exciting. And your clients getting out of Cali right now are, imo, doing the right thing.

    Leverage, leverage, leverage baby — the only miracle almost as good as compound interest is the miracle of other peoples’ money.

    Have a great holiday.

    Reply
  2. BawldGuy Post author

    You too, David. I actually have an office appt. Saturday morning. If a good guy is willing to fly a couple thousand miles, I’ll meet with him.

    Reply

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