But how do you get there?
Updated: May 16, 2018
<------ Yes HERE.
Let’s dream big.
I, or a former version of me, rented this exact home in 2012 **sigh** and it’s still to this day the most stunning home I’ve ever stepped foot in. Forever my own personal benchmark of success to strive for.
The location to start, high above the most beautiful part of blacks beach in San Diego makes you feel like you’re on top of the world ( hello! You are! ). The 25,000 square foot home sits on more than 5 ocean-front acres and boasts an aviary where a collection of rare exotic birds from around the world have a living situation even I would consider. I have to literally cut my synopsis off here because I could go on and on but you can see from the video that this home lacks nothing ( except a cute blonde Realtor to live in it orrrrr list it haha ). #neverstopstriving
Let’s talk money.
9776 La Jolla Farms Road sold for $23,500,000 in 2005 which made it the second highest single parcel home sale in La Jolla’s history at that time. Now worth about $33 million dollars upon market appreciation alone. But what does that mean? It means that by doing absolutely nothing they made $9,500,000. Yep. Don't quit your day job...or do because you're not getting to here by climbing that corporate ladder.
So how do you get there? Where your money is making money while you’re sleeping in it? The place where your home mades just shy of $10 million dollars in 13 years. I believe heaven shall surpass our wildest dreams but I hope God knows this is what I have in mind.
I’m always interested in how really successful people got to where they are and I always ask them. On the lovely street called La Jolla Farms Road, many owners had family money that dated back past the time that we could duplicate their success. They invented Apple or they owned the only avocado farming land. You know the answers that just frustrate the heck out you because the ship has sailed-and now it's a mega yacht. Some did borderline things ( hey, I don’t judge! ) and some just caught a lucky break. But there are those gems that are self-made. The people who were smart with their money and made solid investments. They did the things that we can copy and those are the people I crave conversations with and so should you.
Let’s talk strategy.
Good old Doctor Phil ( yep I’m referencing Dr. Phil ) used to say “You cannot change what you don’t acknowledge” or in my own words, you can’t get to where you’re going if you don’t know where you are. The first thing GPS does is locate your current location, right?And therefore, Step 1 is to step on the scale as I call it or see a lender. It’s super easy to say you want to lose 5 pounds but how are you going to do that ( and celebrate accordingly ) if you don’t know how much you weigh right now? It’s not fun and I’m not going to tell you that it is. It’s scary and tedious and sometimes, especially with the wrong lender, downright degrading, but you have to find out exactly where you are. Think not only stepping on the scale but getting your body mass index tested as well. That’s literally when they tell you what percentage of your body is pure fat. I can’t think of anything I’d rather not do. Believe me I get it. But you need to do it. So just take a day like Monday that kinda sucks anyways and get down to your bank and just do it. Wear NIKE if you must so you keep saying to yourself, “JUST DO IT.” Then go out to dinner and have a glass, no bottle, of wine and toast to the fact that you just made the first step in real estate richness. You did more than you’ve ever done before, you little real estate mogul you!
I was one of the lucky ones. Okay, okay to save the envious eye rolls I’ll give you something. I paid to rent that home for an event I had to cancel. Yep. Non-refundable. Valet permits and furniture movers as well. Now that you still like me, may I continue?
I was lucky in the respect that I did qualify to buy a home. And I was able to do it at a somewhat unstable point in my life without much preparation. Meaning, for people who aren’t quite able to qualify for the price point they wish for, lenders ( should ) put them on a plan to buy. The plan may focus on credit repair, saving more for the down payment necessary to get that to the monthly payment they desire or some other really un-fun task. Thank the good Lord I knew what I could afford monthly based on what the kind of condo I wanted rented for and developed a purchase price that gave me that same monthly. So instead of spending money on rent I wanted to spend the same amount on a mortgage. I figured that was what I’d have to pay anyways so there wasn’t much deliberation. I also figured that if I ever needed to get out of it, I could rent it out to cover my mortgage. This little formula is exactly what I think makes a home purchase fool proof. The only time you lose money in real estate is when you have to sell at a bad time. So, this little fact covers you from that. This is what makes it a solid investment ( in my opinion and experience ).
It wasn’t all rainbows and butterflies. The property I bought was in building litigation. Lawyers look away. That made it very hard to get financing but my idea was to buy a condo that was hard to buy and sell when it went out of litigation, or more people could get financed easier. Well the younger me was right. What a shining star she was, right? Though I endured a long and painful THREE-MONTH escrow, when I sold the property 3 years later I not only made money, I actually broke even for living there. If I had rented I would’ve been out $80,000 after 3 years. But instead, I was up, even after the HOA and the mortgage and the taxes. Well look at me.
Let’s get to the point.
This is what I know. More than the stock market, more than saving money, more than the current cryptocurrency phenomenon, real estate is a proven way to make money. It’s tangible, you actually need it ( as one of the 3 main needs of humans being food, water, shelter ) and it can be improved. Buy a one story with no view, build a second story, sell with a view = cha ching! Buy low, sell high still is the idea but it’s the only ‘stock’ that has basically gone up rather consistently over time - from the beginning of time.
To the skeptics thinking of the crash or the housing bubble ( people read your loan docs! ) pull up your apple stock market feature. Take a look at those jagged lines spiking up and down up and down. Then remember that one or two downward cycles still makes an investment pretty solid. And you know what? The people who didn’t have to sell during that time probably weren’t all that effected.
My hubby is in banking Fintech ( what is that, right? ) and I went on a work trip with him to Hong Kong last year. While completely dazed out in one of his meetings there, I noticed one of his crypto clients thought it was the most genius idea to back their new coin with ( drum roll please ) ... Real Estate! Why? Well because it's considered solid and people can see it. Wait, so a house you live in is more solid than an invisible coin that can't really be used to buy anything yet? Yes, yes that'd be correct friends. So for all you trading on it or really buying stock in anything, put down your Kraken accounts ( trading platform ) and think about why you feel so confident to buy something you cannot even see. It's a belief, right? Like the numbers in your bank account, you trust that it's money. Well I feel like it's super easy to explain why homes are money to me and I like my money where I can sleep in it! Invest and rest - two birds one mortgage haha.
So, I go back to my point that to get from where you are to 9776 La Jolla Farms Road, just buy something. Own something instead of renting. Invest in yourself instead of paying someone else mortgage or car payment or anything else. Put your money towards equity that is yours. Just start where you can. Sell when you can profit. Put yourself in a position where you call the shots and you don’t have to make a move from out of weakness but move only from strength. Just own something.
Until next time, may all your assets appreciate,