Real Estate Opportunities in 2016

Posted September 1, 2016 by technogeek
Categories: assisted living, real estate, Uncategorized

Over the course of the past 8 years, another thing that has grabbed a lot of my time and attention is the study of real estate.

Let me be straightforward. I love real estate.

I think it’s an amazing way to build wealth.

Now, a lot of people who got into real estate and then got hammered after the great recession would argue differently. Not me. I’m still in.

Why do I like real estate so much?

There are lots of ways to make money in real estate. Principally, there are 4 basic ways:

  1. Cash Flow
  2. Appreciation
  3. Amortization
  4. Depreciation

Let’s take a quick minute to walk through each of these.

house-409451_960_720

Cash flow is pretty self explanatory. When you take all of your revenues of the property and subtract all of your expenses, including debt if you are carrying a mortgage, the cash flow is what you have left. For example, is the property renting more than it is worth. If so, you have cash flow.

Next, is appreciation. What is great about real estate is that the value tends to go up (or stay the same, based on how you look at inflation). But historically, over time, in terms of $’s, a real estate market will go up over time. So, if you simply control the real estate (or manage the cash flow), you will make money in that a house today is generally worth more than it was 20 years ago. Now, this depends a lot on each market. But typically across the board, most markets will appreciate.

Amortization. This is simply paying down of a loan. So, your monthly payment goes towards interest and taxes, but part of it also goes towards principal. That is, if you have a renter who is covering your mortgage, each month, some of their dollars are adding to your net worth. Nice. So, how many units do you want?

Depreciation. This is another great one. Basically, this is a “non-cash” expense, which means you get to deduct expenses on your taxes for the property wearing down, even if you didn’t have to pay for any actual accrued expenses that year. This saves you money on your taxes.

I love it. So many ways to make money. Backed by a real asset. I can actually see and touch my investment. It’s not some elusive stock to a company that I have no idea who manages it.

So, what are the opportunities in 2016?

There are always hot residential markets. In the past few years, Texas has been fantastic. How do you know where to look? Follow the jobs. Dallas, Austin, Ft. Worth have all been very hot because they have been growing in population and jobs. Follow the jobs, demand increases, and real estate prices go up.

In the same line of thinking, follow the demographics. The boomers are aging. So, different than your residential, multi-family, or commercial types of investments, there is a lot of money flowing into health care for these seniors.

In particular, there are senior living projects going up all across America. These can range from independent living, to assisted living, memory care and full nursing care. A little sub-niche that has spun out of this that I’ve really had my eye on is residential assisted living. There are little operators all over the country who are opening up smaller senior care homes that actually feel like a home, vs. an institution. Pretty smart.

There are all kinds of ways to make money in real estate. And, I’m going to do some of that right now.

Have a good day!

 

At 8 Year Review of the United States

Posted September 1, 2016 by technogeek
Categories: Uncategorized

Tags: ,

So, it’s been a little while. You know, about 8 years. It’s ok to take a break every now and then, right?

Let’s see … a few things that have happened since 2008.

  • Global financial crisis
  • Obama gets elected
  • Tea party runs wild
  • Michael Jackson dies (2009) – Man, been 7 years on that
  • Deepwater Horizon explodes, massive oil spill in gulf
  • Tornados in flooding in the deep south
  • Bin Laden gets killed
  • Obama gets re-elected
  • Lots of terrorist attacks – Boston and Orlando

Just a few things.

The world has seemed to speed up a lot. All social media. Lots of bickering. Not a lot of communicating. It’s been kind of sad to watch.

In the meantime, I’ve been doing my thing – growing my family, growing my business, learning how to live life. Learning how to love others.

We could all use a little bit more of that.

So, I’ll be writing a bit more on here again. We’ll see how it goes.

Chillin

Posted April 18, 2008 by technogeek
Categories: Uncategorized

Tags: , , , , , , , , , , ,

Today is an absolutely gorgeous day, and I’m just chillin.  There are a few things that I should be doing, like updating my finances and mowing the lawn – but days like these are rare.  These are the days when people take half days for “dentist appointments” and go play 9 before dinner.  These are days when kids get “sick” after lunch and have mom come and get them.  I remember doing that when I was in high school, just dreaming of when I could get out of the cage.

That’s what I’m doing today.  I went to a local park earlier and just sat and people watched.  There were all kind of folks out, some wearing some pretty interesting things like these punk boots.  Others were parading their pets around with their no-choke dog harnesses and fancy collars.  Me, I just took it all in, read me a little Bible and passed the day away.  It’s a good day.

This weekend, I need to head to the ballpark and catch a game.  Nothing like a dog and a beer and the green grass.  The smell, the sounds, and the sights all come alive when you take in a ball game, or at least they do for me.  Hope you get to have a good weekend, and I hope you get to chill.

TX

Posted April 14, 2008 by technogeek
Categories: Uncategorized

Tags: , , , , , , , , , , , , , , ,

I’m leaving Texas and heading back to the Nati.  I spent the weekend there with my friends from college having a great time.  We played a lot of golf, basketball, derby and tennis.  We also went to the Rangers game on Saturday, which was awesome.  Our goal was to get 5 balls in batting practice, and we came away with 9 on the night!  One of those was from my favorite player, Josh Hamilton.  He actually threw me a ball during the game.  I flashed him my Reds jersey, and he threw it up after a catch and the third out of the inning.  It was awesome!!!

The other big news of the weekend was that my friend Ryan and his wife are pregnant with twins.  This is so great because they have been trying for months, and she was getting really discouraged.  I’m so happy for them.  It seems that we are all heading into that idea of having kids, which I’m all about.  We stayed at Wes’ house and he has two cute boys already.  I stayed in their room with the Thomas the Train Bedding, Wiggles Toys, and other fun boy toys.

My wife and I are hoping for a little bit more job security, but we’d like to start trying as soon as possible.  I cannot wait to have a baby.  It will completely change our lives, but I think it will be absolutely amazing.  I pray now that I would be developing into the man I need to be to be a good father.

Puppies

Posted April 3, 2008 by technogeek
Categories: Uncategorized

Tags: , , , , , , ,

Puppies are really, really cute.  I was asking a new friend the other day which she liked better, her dog or her cat.  She was hesitant because she didn’t know how to respond.  To me, that is an insult because my friends need to answer that dogs are better hands down.  They are way more fun.  Way more cute.  And better friends. The only issue you get into with puppies is the training, but this comes with all pets.  Of course there is the potty training, which a few newspapers can fix, but then there is the teething.  It’s very helpful to make sure you have a few durable dog toys lying around.  Otherwise, you may have a few shoes or furniture pieces torn up.  So, shop around for dog toys for aggressive chewers.  I love my dog.  I take care of him and pamper him a bit.  When I go out of town, I even let him stay at a nice place like this.  If you don’t have a dog, you don’t know what you are missing! 

Holiday Toys

Posted December 17, 2007 by technogeek
Categories: Uncategorized

Tags: , , , , , , ,

Every year, there are new holiday toys out there that are the most popular.  Thanks to all the hundreds of thousands of dollars that advertisers spend on commercials and marketing during the year, they get to reap the benefits in the Christmas season if they have won the hearts of little boys and girls.

This year, a few of the winners are Ben 10, Transformers toys, Hannah Montana, and certainly the teeny bopper High School Musical.  Some of them actually scare me.  All of these license owners are holding the winning lottery ticket.  Sales are pouring in and there doesn’t appear to be any sign of slowing down.

If you have anything to do with Ecommerce and these toys, you are loving life right now.  I wish I had my own store, and I would definitely have these products to sell.  People are buying like crazy.

Alaska Cruise

Posted December 17, 2007 by technogeek
Categories: Uncategorized

Tags: , , , ,

I just had some friends get back from a cruise they took in Alaska. I think they booked it from this website. I’m so jealous because they got to see glaciers, whales, dolphins, seals and all kinds of cool stuff. Two of them that went are actually engaged and were talking about how beautiful it would be to have wedding out west. I got curious and went online searching for Portland photography sites. It’s not Alaska, but these guys are close and it looks like they would do a great job.

Once they got back from their trip, they were so excited about the wildlife they saw that they bought an aquarium. So, now they are busy stocking it with the right fish aquarium decor and other supplies. I think it’s hilarious, but I’m sure I’d be as impacted as they were by the trip. It gets me really excited about the trip I’m taking in January to France with some friends.