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July 10, 2021 at 11:19 AM in reply to: San Diego drastically outperforms Bay and LA on rents #822428July 9, 2021 at 7:34 PM in reply to: Surgalign Spine Technologies picks socialist heckhole San Diego over capitalist utopias Texas/Utah for new corporate HQ #822417
Escoguy
Participant[quote=sdrealtor]Hey don’t give St George a hard time. They have plenty of large employers like the school system, the hospital system, the government, WalMart, Target, Costco, Red Lobster, Olive Garden, Wendys and Subway.
https://www.growsga.com/washington-county-major-employers-2/%5B/quote%5D
But they still have showers, toilets and drinking water in St George which are key selling points.
“There’s going to be people that are going to have some pain points on this,” Mayor Randall said. “But in the long run? I want to have a shower. I want to have a nice drink of water. I want to flush my toilet, so I’m willing to do my part.”
Participant[quote=gzz]Olegy you had the beat case scenario: no existing structure to work around, no permit fees, no expansion of utilities, and building in a deep recession that hit construction especially hard. And when you add the value for all your labor and no GC markups, you’re still above 200 per sf.
$300/sf might have been possible even in 2018. Not 2021 in San Diego single infill projects.[/quote]
Lumber is coming down some.
In some ways, it does beg the question if a forum like this could turn into an actionable set of options.
I.e. find a lot with buildable lots. I’ve seen a few.Participant[quote=svelte]damn if I could have dinner with scaredy and escoguy I feel as if I would gain life changing insights.
I’m not joking.
I love the way those minds think. I love thinking outside the box.
There is so much more to life than the commonly accepted status quo.
And thanks to the incoming generations. The changes they are bringing are exciting yet a bit scary. To change is difficult. Not to change is fatal.
Happy 4th to you and yours.[/quote]
svelte,
I PM’d you.Participant[quote=scaredyclassic]18 I also said to myself, “As for humans, God tests them so that they may see that they are like the animals. 19 Surely the fate of human beings is like that of the animals; the same fate awaits them both: As one dies, so dies the other. All have the same breath; humans have no advantage over animals. Everything is meaningless. 21 Who knows if the human spirit rises upward and if the spirit of the animal goes down into the earth?” 22 So I saw that there is nothing better for a person than to enjoy their work, because that is their lot. For who can bring them to see what will happen after them?
Ecclesiastes 3:18-19, 21-22 NIVhttps://bible.com/bible/111/ecc.3.18-22.NIV%5B/quote%5D
My father was a Baptist minister in Texas in the 1980s.
When I learned of Ecclesiastes, the word used instead of meaningless was vanity (all is vanity).
A friend of his who grew up in the former USSR, came to me shortly after my mother died when I was 17. He said, “what you father teaches is true and useful”.Needless to say, my life took some odd turns from 1986 to today and I lived in the former GDR (Berlin) for 5 years and 5 former USSR republics for 15 years.
It was a range of projects:
German Ministry of Privatization (energy industry)/liquidation department
World Bank in Moldova
Soros Foundation in Moldova (even met George personally once)/USAID
Built a factory in Ukraine with a German company, did the same in Kyrgyzstan when we traded with Mongolia/Afghanistan (pre 9/11).
Helped launch the first Nasdaq listed company from RussiaLived in SoCal a few years
Round 2 of former USSR: non-proliferation of bioweapons/bio-threat programs in Russia/Azerbaijan
Topped off with a stint in oil field servicesNow back in San Diego, mostly have been working in Oncology as an administrator, now in Orthopedics.
The point of all this: our lives can have an impact, things like the breakup of the USSR and German unification are not daily occurrences, but neither is a cure for cancer/mRNA vaccines.
If our lives are focused too much on our own desires and pleasures, then the phrase of vanity/meaninglessness is relevant.
But good life purpose can be found even if one is well off by finding a path to serve others and make a positive contribution.
Participant[quote=scaredyclassic][quote=flyer]Esco, creating generational wealth for your kids is a good thing, and that is something you are definitely on track to do, should you choose to.
I remember when our parents, and most of the family got into the real estate game. As kids, my wife and I had no idea then, what great decisions they were making, and, at the time, I don’t think they could have realized the full potential of their actions either. Of course, we continued to build on their gains, so it’s worked out well for all of us, just as it should for you and your family.
Interestingly we know many families who have done the same, and most of their stories are very interesting. One involves some good friends of my parents who started out buying tons of fixers and building the portfolio–with Dad and 5 sons doing all of the work themselves–fast forward to an empire that includes mega apartment complexes, shopping centers, etc., etc. Impressive for a guy who moved his family of 12 (10 kids + Mom and Dad) out to San Diego from Wisconsin where he was a milkman:) Sure, over the years they have had to fine-tune their business based upon changing market conditions, but all of them are still doing well.[/quote]
What if he’d moved to Utah? Phew.
I am very jealous, although I could never have done it and might all be meaningless, I applaud u.[/quote]
As an accountant, I think of equity in two pots (booked and unbooked).
Booked is the amount I think I can plan on regardless of how bad the economy gets etc, unbooked is a reflection of market prices above that.In some ways, I’m still at the casino, no chips have been cashed, the night goes on.
Oddly enough, the ‘success’ doesn’t really change my life that much, I can be more relaxed about things but with good mental training, that is accessible to anyone.
July 1, 2021 at 7:56 PM in reply to: Reminder: People never shut up about crypto gains, never mention the losses #822267ParticipantThis is so true, I have a friend who was constantly texting me about bitcoin for years. So I finally bought in last fall. Fortunately, the timing was good and the 0.27 bitcoin I bought basically doubled in about a month.
I sold half and kept half.
Yes, traded in and out some but have given up about 7K in paper gains.
My intuition told me to sell the week before Musk started his pot stirring.
Holding for now. It’s not even 0.25% of net worth so in some ways like a partial lottery ticket.
Participant[quote=sdrealtor]Nicely done and a great example of the power of time and leverage. Over time those rents will rise and cash flow will improve dramatically over time. That ROE should only get better and better[/quote]
Speaking of leverage, it bothers me that Dave Ramsey is so anti-leverage and that I’ve never heard him make an exception for anyone on his programs. Maybe that’s the ‘advanced seminar’ that they charge more for. LOL
I really think he does his listeners a disservice by always telling them to try and buy investment property in cash.
Given I did have two paid off when I bought the third (which was helpful as my wife never had a W-2 income), but if I had not borrowed, I would have stopped at house number 3 or 4 and foregone at least 1M in appreciation in less than 8 years.
I am a little torn about new money today, part of me would like to pay off one more just to have that peace of mind, but by and large I don’t worry or even think about the debt.
But there is also this part of me that would like to get something closer to the coast if only just for fun.
Participant[quote=trips123]Thanks for your message.
I am trying to assess how much it would cost me as an individual to get a rental home constructed in area like Escondido/Chula Vista/City Heights if I am able to buy a land there. So not a coastal area.
We can assume lumber/steel prices back to normal levels and yes it would need architecture plans.[/quote]A few years ago, a builder told me $80K for permits, $50K for a sewer connection if the line is close.
Participant[quote=gzz]Is the ROE so low for the primary because it isn’t rented?
You got to live there however, so you need to add what the government calls owner’s equivalent rent into the returns there.
Kudos for twice pulling the trigger during the pandemic too.[/quote]
gzz,
Good point, I should add that, my primary would probably go for about $5300/month in this market. At the moment, I didn’t include that but you are correct.
I was fortunate that I received a reasonable inheritance in 2020. I had thought about buying more for a few years but the timing did work out.
The pickup in 92127 made me a little nervous and briefly I thought I may have overpaid but found out quickly I was on the right side of it.
My friend who trades bitcoin/stocks was discouraging me from buying more.
The second house was contracted in August 2020 but only closed this year, it was a BK as the seller had to complete that process which took six months. So kind of a rare situation big picture. But patience paid off.
Participant[quote=flyer]Nice to see more success in real estate investing. As sdr mentioned, and as we’ve seen, you’ll find the ROE will get better and better over time, and your kids will thank you.[/quote]
It’s funny you mention my kids, I do need to pay more attention to them, I’m sure they will be fine, but you know “teenagers”.
Participantblank
Participant[quote=Coronita]You totally rocked this!
Holy fcking shit. Kudos. Great job.I see you picked up 3 in 2013. Nice.
I think think the difference between your transactions and my transactions is yours are an order of magnitude larger, ha ha…[/quote]The three in 2013 were all short sales.
Two rented back and went on to buy again after three years, so I think they did fine in the grander scheme of things.
I was coming in after working out of the country for 10 years and fortunately had held about half my funds in bonds through the 2008 debacle.Participantblank
Participant[quote=Coronita]How the hell did you get a 1.5% loan???[/quote]
The 1.5% is from First Republic Bank, got this in 2016 as 30 year.
It is a variable rate tied to the 11th district cost of funds plus 70 bp.
I think at the time, the bank thought rates would start to rise
The offered a 0.9% back on a primary.
My regret is I could have done all four refis at the rates of 1.5% and 0.9% but trying to “manage risk” I only did one variable.
Needless to say, they don’t offer this anymore.
But they do offer a 2.25% unsecured line of credit but I haven’t had a chance to use that as the term is 7 years. Keep as a backup.
The backstory is, I read how Mark Zuckerberg had a loan with FRB at 0.9% on his primary residence. The article talked about loans for the 1%. -
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