Wealth vs. Saving – The Distinction There are many different definitions of wealth. For this purpose I will define wealth as “a durable and perpetual source of significant income”. If you are planning on retiring, income is what you need. Many would consider one million dollars in the bank as wealthy, but let’s think of […]
My Favorite Alternative Investment Media
May 4, 2020 By
Somewhere around 1986 the Fox Network started. Many including myself thought, “Well how is this going to work, we already have 2(CBS), 4(NBC) and 7(ABC)”. Three decades later we have more media choices than we know what to do with. The sad thing is that when you listen to Fox or MSNBC you think you […]
Buying With a Partner When All is NOT Equal
November 10, 2015 By
When you buy a home with a partner or spouse and everything is split 50/50, it is easy. But what happens when what you bring to the table is different? How do you make it equitable for both parties when contributions are not equal? This morning I spoke to a couple that are looking to […]
A Tepid Recovery
July 31, 2014 By
This recovery is very unlike the past two recoveries of 1985 and 1995. In both previous recoveries, prices climbed to new highs and powered forward for 5 – 10 years. The two previous price moves forward were 1985 – 1990 and 1996 – 2006. In both previous recoveries, it was like a light switch was […]
The Future of Real Estate Prices
December 5, 2013 By
The investment world has no shortage of commentary and media on the state of the economy. CNBC runs 24/7 with analysts prognosticating the next boom or bust. Most larger stocks have analysts that follow with baited breath each new earnings report. Real Estate on the other hand, receives no such treatment or following. I just […]
Tips for the New Landlord
August 18, 2012 By
Many moons ago, when I was 23 years old, I purchased my first duplex. The back unit was vacant and I was in a rush to get it rented. Being young and foolish, I just assumed that people were responsible and paid their bills. To make a long story short, one year and lots of […]
Organic Recovery or Fabricated?
July 16, 2012 By
If your personal financial household was experiencing a rough time, and you dipped into your savings or used credit cards to shore up your finances, make purchases or take trips, would you feel good about your newfound economic recovery? Probably not. But if you were the U.S. Bureau of Labor and Statistics you would be […]
Barron’s Says Housing Market “Ready to Rebound”
April 4, 2012 By
I just re-read Barron’s cover story from story from two weekends ago. Barron’s is the only paid subscription newspaper I get, in addition they tend to be conservative or on the bearish side of the coin. While I thought the article was quite lacking in substance, their timing I believe is of value. So here […]
Investors With Cash, the Federal Reserve & the Misallocation of Capital
March 13, 2012 By
What do these items have in common? Well, a lot. I recently met with a general parter of a prospective Real Estate syndication. This general partner said he has investors willing to throw money at him, but having integrity, he didn’t want to accept the money because he wasn’t sure if he could obtain the […]
How to Evaluate a Rental Property Quickly (Video)
February 21, 2012 By
When scanning new listings I use quick rules of thumb. This enables me to know within 20 seconds or less whether a property has the potential to break even, or have a positive cash flow. Is the monthly rent around 75% of the Price (divided by 100)? If this is the case, or close to […]
Inflation or Deflation?
January 15, 2012 By
While I sell Real Estate, I think my natural inclinations are as an investor. And there is literally no place in the investing world where inflation or deflation will cause greater success or havoc, than in the world of Real Estate investment. This is because no other investment allows for such high levels of leverage, […]
The Coming Bottom in Real Estate
March 15, 2011 By
In 1996, Penny and I had dinner at the “upper crusty” Canyon Club in Newport Beach with her great Uncle Bill. The conversation flowed to real estate and at some point great Uncle Bill emphatically stated that “It’s time to buy”. Not only was he right, he nailed it. You see, uncle Bill had been […]
Looking for Value in the Income Property Market
April 1, 2009 By
Last year, we began looking to purchase a piece of income property with a partner. Our search started with the 5+ unit category because this is traditionally where you find the best cash flow. After scouring the market for 6 months, we came across very little inventory, and even less attractive deals. If the Real […]
Is There a Real Estate Bubble?
September 1, 2002 By
As a prospective buyer, if I knew prices were rising rapidly, then I might bid more for a home than it was worth. However if I knew that prices were dropping, then I might bid lower or I might just wait. But buyers don’t know what the future holds, they only think they know based […]