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  Off To Phoenix For Unchained — California Real Estate Investors Singing ‘Lie To Me’

  http://www.bawldguy.com/off-to-phoenix-for-unchained-califor...
  112 days ago in BawldGuy Talking · Authority: 98

  I’ll be one of the panel members of Unchained, which is a conference for real estate pros, related venders, and marketing types, both social and otherwise. Sound a tad ambiguous? It’s the best I can do. It’s all about how to be excellent if that helps any. It’s put on by Greg Swann and Brian Brady over at BloodhoundBlog. Greg’s the proud owner, while Brian is a contributing writer, as am I. One of the subjects sure to come up is the economy and real estate specifically. I have some thoughts to offer. Take a deep breath or two and your shock will dissipate. I mentioned earlier this year how historically, in bad real estate times, one of the signs a recovery might be on the way, is the gathering of what I call the Godzillas. I define Godzillas as investors, people or entities, bringing a minimum of $50 Million to the table. I spoke of one such group having raised near $1 Billion. This is now happening in several sectors of the real estate market — both by type and geography. They’re surveying the lender landscape, and like much of what they see. What has given huge encouragement to me personally is what’s emerging from lenders — it appears, one by one, they’re beginning to pull their heads out…(you finish this one). What am I talking about? Many sophisticated real estate investors have been quietly buying bad loans from lenders at impressive discounts. Ironically what makes this encouraging isn’t that they’re being purchased. No — what’s so cool about this is that the lenders are finally facing the music everyone else has been playing. They’re bitin’ the bullet and clearing the shelves of all their rotten apples. This is what’s often referred to as cleansing the market — indeed. And that’s exactly what this will do. I’ve been working on a post regarding this topic for several days, when up pops Sean, a sporadic commenter here. He’s seen this trend surfacing too, wanting to know my thoughts. Good on you Sean. Bottom line? This is an exceptionally good thing. When the banks begin selling their ‘defective merchandise’ at the swapmeets, the cleanse is officially in overdrive. Has the spin cycle begun on this market cleansing? It’s already hit the point where the individuals buying some of these dogs are beginning to lose out to the Godzillas getting their feet wet. See, when they get up to speed these loans will be sold in relatively large batches. Yep, you’ll be saying, ‘back in May of ‘08 the ’spin cycle’ began’. Also, once returned from Phoenix and Unchained, I’ll be having a guest blogger, with impressive expertise in investment grade insurance contracts in for a visit. He’s the real deal and will be talking specifically about what’s known as EIUL’s — a subject near and dear to my Bawld heart, and one I’ve written about here before. You won’t wanna miss it. I’ll be writing on BloodhoundBlog about the differences between the EIUL and 401(k)’s. It’s been my contention for quite awhile that Uncle Sam’s own Purposeful Plan is based upon the Boomers and their heirs saving income tax nickels & dimes so later than can then pay out dollars while retired. The next three days has me booked up to my eyeballs with the conference and all the goings on. If you twitter, I’ll be doing my best to pass on my thoughts. It’s Saturday so can’t miss my weekly plea to San Diego and all of the other California real estate investors out there — Please — You Gotta Get Outa Dodge. We’re at the point where anyone willing to step back and be empirically objective can see clearly — investing in west coast real estate is a losing proposition — and San Diego is among the worst. You can do so much better. Yet you still insist the market lie to you. You want the local press to lie to you. And you want the real estate pros to tell you it’s alright to keep your real estate equity and/or capital here. Turns out there’s a cool song that fits just this scenario.

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