Lessons in Real EstateWhat Buying & Selling My 1st Home Taught Me -

Good, Bad and Ugly

First Disclaimer

I’m not an expert. These are just my own lessons. You should contact a legal or financial advisor for

your own situation.

How My Journey StartedAsking a Question

What if I bought a house?

..that, of course, led to “how..”

San Diego 1994

Miramar

Headlines for Real Estate 1994

California's real estate slump deepens

Southland home values lead U.S.--Downward

..more Doom & Gloom

San Diego 1994

Rancho Bernardo ● Good Schools

● Good Shopping

● Decent Area

My First Houseat age 26 on junior officer pay

Quick Tour

Bought in 1994

$160,000

Sold in 2004$480,000

Best Part?

I did not actually spend $160,000

Actual Out of Pocket?●Cash at closing -$500

●18 months of payments ~$20,000●5 years of covering expenses $100-200/mo

●Approx. Total - $30,000

(Side note - I think my younger brother spent more time in that house than I did!)

So for

$30,000

I made nearly$450,000

Was a real estate genius?

NO!

Did I discover some millionaire “secret”?

Chinese Saying

Best time to plant a tree?

20 years ago

Second best time?

NOW!

Power of Trends..

graphed outdata

1981-2003

Other Areas..

Noticed something interesting

Texas..

More Stable..

LessSwings

CaliforniaMore

Dramatic Swingsin 10 Year

Cycles

Key Lessons●Buy the cheapest house in the best area

you can afford●Don’t do it all yourself - 8% per month was

best money I spent●Continue to learn and ask questions

Last Thoughts

If you have any comments or suggestions, feel free to share them in the comments. There’s nothing to

buy or sell. I just wanted to share my own observations.