I sold all my real estate in 2016
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I sold all my real estate in 2016

By anonymous following x   2016 Jun 15, 10:54am 18,596 views   102 comments   watch   quote     share    


I know this isn't a real estate website any longer, but it was when I joined years ago and enjoyed the company of the "bears" and "bulls". I thought I'd drop by and let you guys know how my California housing foray went the past 4 years.

As you know in 2012 (by my post history), I purchased a home in Laguna Beach, my primary home. In 2013, I also purchased an investment property in Los Angeles (West LA). I paid $1.2 million for the Laguna Beach home, and $675,000 for the condo in West LA. The West LA condo was rented before I even closed escrow to a personal friend. He stayed in the place for 2 years paying $2700 a month. I also had a tenant afterwards who was paying $3100 a month until I sold the place.

In 2016 I sold my Laguna Beach home for $2.45 million and 3 weeks ago I sold the West LA condo for $1.3. The reason for my sell off is because I am relocating the family to Northern Nevada (Gardnerville). I'm sort of going full-time off-site consultant now, and don't need to be in California any longer.

So after a 4 year journey as a real estate owner in SoCal (I had been a renter for many years before), I came out of my real estate foray with about $1.6 million in profit. I'm not saying I'm some Nostradamus because I never expected to pocket so much cash from real estate, but I will say that I am immensely happy that I didn't stay on the sidelines the past 4 years.

Thanks for all the guys who I exchanged quips with over the years, the Apocalypse guy, the guy who had a duck avatar, and the numerous bears who despite their great advice and knowledge, seem to have been wrong about how real estate would crash immensely (don't worry I considered myself on the bears team for many years and also did not understand how the market could be as such).

#realestate #investing

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63   iwog   ignore (1)   2016 Jun 16, 4:55pm   ↑ like (2)   ↓ dislike (2)     quote      

Just one question.

Goran_K says

Hey genius, that's SCHIFF's entire theory, not mine (though I agree with a lot of what he said). He thinks 1) There will be a crash because of cheap money fueling home prices just like in 2006, AND 2)the crash will be WORSE because of those weak economic factors compared to 2006 (when the economy was relatively stronger). What about his theory do you agree/disagree with?

Unemployment has been high for 4 years, earnings reports are down, and taxes are rising.

Where DO YOU think that puts the housing market's future?

You not only thought there would be a real estate crash back in 2012, you thought it would be WORSE than the 2008-2009 crash.

When precisely did you decide to abandon Schiff, in hindsight probably the worst investor of our age which is why you don't hear about him anymore, and become a real estate BULL instead of defending the crash nuts?

64   ChapulinColorado   ignore (2)   2016 Jun 16, 9:18pm   ↑ like (1)   ↓ dislike (0)     quote      

Meeting would be interesting and maybe even fun with a glass of wine.

65   someone else   ignore (0)   2016 Jun 16, 9:36pm   ↑ like (0)   ↓ dislike (0)     quote      

ah, the glass of wine part got to me. maybe it is about time for a patrick.net meetup.

@turtledove , when are you going to be in san francisco?

66   Goran_K   ignore (0)   2016 Jun 17, 8:30am   ↑ like (1)   ↓ dislike (0)     quote      

BayArea says

Between the real estate investment choices, your approach to finding your political standing, and the methodology you followed in finding your current city, I am thoroughly entertained and even somewhat envious of you lol (and I say that 100% respectfully)

May I ask how old you are and what you did for a living to allow you to purchase your Laguna/LA properties in the first place?

Well thanks man, I don't think I'm doing extraordinary compared to people I worked with earlier in my career but I believe in my heart I made the right decisions to have a good life for me and the family, a life without great struggle. That's all I could ever want or hope for.

I'm in my late 40s, 2 kids, married. A little about me. I graduated from Wharton business, and was recruited directly out of school into Goldman Sachs. got to travel the world in the 90s and early 2000s, spent time in New York, Hong Kong (before the skyline was even littered with skyscrapers), and even fell in love with a woman in Taiwan when I was eventually offered an opportunity in Taipei. I brought her back here to the states and we had a "little Goran". We bought a small home, then I sold that first home in 2003. I never tried to time anything, I only did things that made sense for my personal situation. I probably left some money on the table seeing as housing didn't peak until 2006, but it was a blessing in disguise for me (more on that later). It wasn't a huge home, just a small 3/2 condo starter home I bought with my hard earned W2 paychecks working as a Financial Analyst (then Financial Associate, then Intermediate Associate) at Goldman Sachs, Citigroup, and other financial institutions.

In 2003 after I sold the home, I bought a pretty large stake in Gold based on a suggestion from a co-worker, which I ended up selling in 2010. Again, I left a lot of money on the table selling early, but I count my blessings that I was able to put money from my first home sale into a place where it literally grew nearly 4x (wish I would've waited another year or two). Reason I sold was I was ready to buy, all cash of course, and ready to pull the trigger (which btw lead to me finding Patrick.net so I could research the current market). So that's where I got the bulk of my cash to buy the Laguna Beach home and then the West LA home.

So as you can see, nothing really special, just a lot of luck, opportunity, and the ability to pursue those opportunities. Even buying the home in OC, you can tell in my original post that I wasn't super happy about buying, but for some reason it just worked out.

Just did okay in school, ended up working at good firm with lots of career opportunities. Outside of work, I don't really focus on side gigs or projects like my co-workers did. Just wanted to provide for the family, and be able to afford annual passes and trips to Disneyland. Also, a little prayer/spirituality helps IMO.

67   Goran_K   ignore (0)   2016 Jun 17, 9:08am   ↑ like (0)   ↓ dislike (0)     quote      

iwog says

You not only thought there would be a real estate crash back in 2012, you thought it would be WORSE than the 2008-2009 crash.

When precisely did you decide to abandon Schiff, in hindsight probably the worst investor of our age which is why you don't hear about him anymore, and become a real estate BULL instead of defending the crash nuts?

I actually still believe Schiff's theory was sound, but like me he didn't anticipate the amount of qualified buyers on the sidelines (or overseas) that would push the demand side up. Coupled with a historic low in housing starts from the construction industry, the supply side was depressed for a long time.

If you read my post from 4 years ago, I actually wasn't that enthusiastic about buying either, so I don't know if I can claim to be a bull even at the time I bought. I actually felt sort of like I betrayed the 'bear' cause at the time, but I did what I did for personal reasons, not market reasons.

I eventually became 'bullish' somewhat when I saw my Laguna home, and homes around the neighborhood start to appreciate month to month (which I found astounding). Buying the West LA property was indeed an actual bullish move on my part because I now believed I could profit from appreciation in the near term and it was a sweet deal. So I'd say I made the transition from bear to bull probably in 2013.

Right now, I'm back to bear. So take what you will from that.

68   Goran_K   ignore (0)   2016 Jun 17, 9:14am   ↑ like (1)   ↓ dislike (0)     quote      

Ironworker says

Thank you Goran for braking it up for us. Great strategy! Are you from former Yugoslavia - Croatia, Slovenia. My favorite tennis player ever was Goran Ivanisevic.

I am ethnically serbian and swede (through my mother's side). Good catch.

69   FortWayne   ignore (0)   2016 Jun 17, 9:55am   ↑ like (0)   ↓ dislike (0)     quote      

iwog says

FortWayne says

I thought you were against guns. What's up with that Iwog.

I own lots of guns.

Got a favorite one to fire? Or it's more collecting hobby?

70   iwog   ignore (1)   2016 Jun 17, 10:01am   ↑ like (1)   ↓ dislike (1)     quote      

FortWayne says

Got a favorite one to fire? Or it's more collecting hobby?

My favorite is a 30-30 lever action Marlin that lets me pretend I'm a cowboy. I bought it when I was 17 and it has had a lot of hard use. Here's a picture I took just for you

71   iwog   ignore (1)   2016 Jun 17, 10:09am   ↑ like (0)   ↓ dislike (1)     quote      

This is my hand cannon dating from the 19th century and carried by a family member of mine in WW 1.. That is a genuine original U.S. Cavalry holster.

72   EBGuy   ignore (0)   2016 Jun 17, 12:36pm   ↑ like (0)   ↓ dislike (0)     quote      

Hmmmm... I'm having second thoughts about hopping the fence and using Duckies pool.

73   Goran_K   ignore (0)   2016 Jun 17, 1:13pm   ↑ like (1)   ↓ dislike (0)     quote      

lol why would you hop his fence anyway?

74   Ironworker   ignore (0)   2016 Jun 17, 4:57pm   ↑ like (0)   ↓ dislike (0)     quote      

Iwog, how do you store safely your guns? I understand you have a little boy.

75   turtledove   ignore (0)   2016 Jun 17, 5:27pm   ↑ like (0)   ↓ dislike (0)     quote      

Patrick says

when are you going to be in san francisco?

@Patrick

We're heading up Wed., July 13th. So, getting there that evening and heading back the morning of July 18th.

76   iwog   ignore (1)   2016 Jun 17, 9:47pm   ↑ like (1)   ↓ dislike (2)     quote      

Ironworker says

Iwog, how do you store safely your guns? I understand you have a little boy.

My little boy is living in Santiago.

Anyway I have a fireproof gun vault the size of a car.

77   FortWayne   ignore (0)   2016 Jun 17, 10:02pm   ↑ like (0)   ↓ dislike (1)     quote      

iwog says

This is my hand cannon dating from the 19th century and carried by a family member of mine in WW 1.. That is a genuine original U.S. Cavalry holster.

Thanks for sharing Iwog, that's really old school stuff. You ever fire that thing?

78   iwog   ignore (1)   2016 Jun 17, 10:07pm   ↑ like (0)   ↓ dislike (1)     quote      

FortWayne says

Thanks for sharing Iwog, that's really old school stuff. You ever fire that thing?

Not the revolver. I have a 9mm semi-auto I fire and my skeet shotty.

79   crashtheninvest   ignore (0)   2016 Jun 18, 2:31am   ↑ like (1)   ↓ dislike (0)     quote      

Nice to see someone else who took a chance in 2012 and came out on top. I paid $45.8k for a town home in riverside county that once sold for $238k. That was in March, 2012. Fast forward 4 years and 4 months and were seeing homes similar to mine in the same complex selling for $140k. Not bad equity and I have good tenants paying $1050 a month for almost a year now. Gonna leave everything alone for a while and see what happens next summer.

80   Strategist   ignore (0)   2016 Jun 18, 5:51am   ↑ like (0)   ↓ dislike (0)     quote      

crashtheninvest says

Nice to see someone else who took a chance in 2012 and came out on top. I paid $45.8k for a town home in riverside county that once sold for $238k. That was in March, 2012. Fast forward 4 years and 4 months and were seeing homes similar to mine in the same complex selling for $140k. Not bad equity and I have good tenants paying $1050 a month for almost a year now. Gonna leave everything alone for a while and see what happens next summer.

Nice returns. Very nice. Next few years will also see very strong returns.

81   BlueSardine   ignore (1)   2016 Jun 18, 6:40am   ↑ like (1)   ↓ dislike (0)     quote      

Do you have a favorite tax return? Anything circa 2000's?

iwog says

This is my hand cannon dating from the 19th century and carried by a family member of mine in WW 1.. That is a genuine original U.S. Cavalry holster.

82   Logan Mohtashami   ignore (0)   2016 Jun 19, 6:39am   ↑ like (1)   ↓ dislike (0)     quote      

Speaking of selling we accepted an offer on our parents home over the weekend, so they're out on both residential and commercial property

83   Strategist   ignore (0)   2016 Jun 19, 8:12am   ↑ like (0)   ↓ dislike (0)     quote      

Logan Mohtashami says

Speaking of selling we accepted an offer on our parents home over the weekend, so they're out on both residential and commercial property

Did they get their price?

84   Logan Mohtashami   ignore (0)   2016 Jun 19, 8:20am   ↑ like (0)   ↓ dislike (0)     quote      

Strategist says

Did they get their price?

Yes, escrow opens Monday, Once contingency is removed more details can be given, they sold their commercial property with multiple bids

85   Logan Mohtashami   ignore (0)   2016 Jun 19, 8:22am   ↑ like (0)   ↓ dislike (0)     quote      

As you can imagine I have kept great details of the entire process, once the home is sold, I can give you gives a timeline and data report of who, what and at what price was the action at.

86   Strategist   ignore (0)   2016 Jun 19, 8:25am   ↑ like (0)   ↓ dislike (0)     quote      

Logan Mohtashami says

Strategist says

Did they get their price?

Yes, escrow opens Monday, Once contingency is removed more details can be given, they sold their commercial property with multiple bids

Why did they sell all their real estate? Are they expecting a downturn?

87   Logan Mohtashami   ignore (0)   2016 Jun 19, 8:37am   ↑ like (0)   ↓ dislike (0)     quote      

Strategist says

Why did they sell all their real estate? Are they expecting a downturn?

It's not about timing the real estate market, my parents are in their 60's with just them and a dog.

It's a big home, 5,300 sq ft, 5 bedroom and 6 bath, 2 stories and that's what they don't want anymore, they want a one story home only now. That's a very big thing in the market with the older demographics, a one story home. Their front facing neighbor had a one story Nellie Gail Ranch home, it sold for 2.45 million Cash to a Russian Buyer.

So, it's a traditional downsize.

If the home didn't sell, they would have just rented it out because they really want to move, they don't even use any of the upstairs rooms anymore outside the office.

Once it's sold I can give more details and give you a perspective, because last year we used a real estate agent and this year we didn't we sold the home on our own

88   Goran_K   ignore (0)   2016 Jun 20, 8:31am   ↑ like (1)   ↓ dislike (0)     quote      

Looks like a lot of OC people are cashing out their houses to move someplace else.

89   Logan Mohtashami   ignore (0)   2016 Jun 20, 8:33am   ↑ like (0)   ↓ dislike (0)     quote      

Goran_K says

Looks like a lot of OC people are cashing out their houses to move someplace else.

They're making a offer on a home just a few minutes away that is much much smaller today, got to live some where

90   Goran_K   ignore (0)   2016 Jun 20, 8:35am   ↑ like (0)   ↓ dislike (0)     quote      

Logan Mohtashami says

They're making a offer on a home just a few minutes away that is much much smaller today, got to live some where

Is there a reason they are staying in California? Most of the retirees I knew (Laguna beach, Newport, Dana Point etc) who have cashed out took off for Nevada, Texas, Oregon, South Carolina, basically much lower cost living areas.

91   Logan Mohtashami   ignore (0)   2016 Jun 20, 8:37am   ↑ like (0)   ↓ dislike (0)     quote      

Goran_K says

Is there a reason they are staying in California?

The business is here and it's not a business that can be transported, My father is 62, so he is still working

92   B.A.C.A.H.   ignore (0)   2016 Jun 20, 9:27am   ↑ like (0)   ↓ dislike (0)     quote      

Goran, I still get a laugh from thinking about your descriptions of Obnoxious Bay Areans. That post is long gone except some snippets inside my mind.

93   Goran_K   ignore (0)   2016 Jun 20, 10:00am   ↑ like (0)   ↓ dislike (0)     quote      

B.A.C.A.H. says

Goran, I still get a laugh from thinking about your descriptions of Obnoxious Bay Areans. That post is long gone except some snippets inside my mind.

lol, I don't remember that post. What was the context?

94   B.A.C.A.H.   ignore (0)   2016 Jun 20, 10:31am   ↑ like (1)   ↓ dislike (0)     quote      

Someone from flyover country expressed their opinion that me or someone else here made a remark akin to being/feeling superior to flyover folks.
I responded by saying Californians and Bay Areans in particular can be some of the Worlds Most Obnoxious People.
You wrote a long post, almost an essay, on three different Obnoxious Bay Area PhenoTypes. It was hilarious, more so because rang of truth.
There were arrogant prick types who drove expensive German Sedans; there were folks who only rode public transit and had to shop late at night cause they worked such long hrs at unsuccessful startups, and there were Whole-Foods Hipster Types whose sociology major girlfriends don't shave their pits.

95   CDon   ignore (0)   2016 Jun 20, 3:54pm   ↑ like (2)   ↓ dislike (0)     quote      

Goran - glad to hear things went well for you. With the exception of a few times where you were trying to tweak Roberto or Iwog (a particular house in Concord surrounded on 3 sides by oil refineries and garbage dumps comes to mind), it seemed obvious to me that you were one of the normal people who came for information about the crash but would eventually buy and move on with life. For most posters you can track their first to last post and see nothing but a future life filled with sadness as they missed their chance to buy and likely would be stuck moving away or renting for decades. Its nice to see you return 4 years later with things have worked out in your favor.

96   Strategist   ignore (0)   2016 Jun 20, 4:52pm   ↑ like (1)   ↓ dislike (0)     quote      

Dear Goran,
Invest your newly acquired wealth in home building stocks. By 2020 you will be a very very rich man.

97   Goran_K   ignore (0)   2016 Jun 21, 10:46am   ↑ like (0)   ↓ dislike (0)     quote      

B.A.C.A.H. says

Someone from flyover country expressed their opinion that me or someone else here made a remark akin to being/feeling superior to flyover folks.

I responded by saying Californians and Bay Areans in particular can be some of the Worlds Most Obnoxious People.

You wrote a long post, almost an essay, on three different Obnoxious Bay Area PhenoTypes. It was hilarious, more so because rang of truth.

There were arrogant prick types who drove expensive German Sedans; there were folks who only rode public transit and had to shop late at night cause they worked such long hrs at unsuccessful startups, and there were Whole-Foods Hipster Types whose sociology major girlfriends don't shave their pits.

Dang, I do remember that post. It's gone? I put a lot of effort into that.

98   Goran_K   ignore (0)   2016 Jun 21, 10:47am   ↑ like (0)   ↓ dislike (0)     quote      

CDon says

Goran - glad to hear things went well for you. With the exception of a few times where you were trying to tweak Roberto or Iwog (a particular house in Concord surrounded on 3 sides by oil refineries and garbage dumps comes to mind), it seemed obvious to me that you were one of the normal people who came for information about the crash but would eventually buy and move on with life. For most posters you can track their first to last post and see nothing but a future life filled with sadness as they missed their chance to buy and likely would be stuck moving away or renting for decades. Its nice to see you return 4 years later with things have worked out in your favor.

Thanks man!

99   EBGuy   ignore (0)   2016 Jun 21, 12:49pm   ↑ like (1)   ↓ dislike (0)     quote      

All I can remember is Goran's smelly coworker post. Congrats on the sales. That said, so much for the Prop 13 tax basis/Mediterranean climate. Happy landings.

100   someone else   ignore (0)   2016 Jun 21, 7:43pm   ↑ like (0)   ↓ dislike (0)     quote      

Goran_K says

Dang, I do remember that post. It's gone? I put a lot of effort into that.

@Goran_K no it should not be gone. should pop up in search results if you can remember relevant words in it.

101   Ironworker   ignore (0)   2016 Sep 5, 6:28pm   ↑ like (1)   ↓ dislike (0)     quote      

Goran, how's Gardnerville? Are you guys happy there with family? Can you describe your experience?

Thank you!

102   BlueSardine   ignore (1)   2016 Sep 5, 8:47pm   ↑ like (0)   ↓ dislike (0)     quote      

Lots of illegals with rakes and tomato spikes....

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