In an earlier article, Brian outlined one of the strategies we use to advise our real estate investment clients. Here is the link to Brian's article: Oceanside Investment Properties. There is nothing secret about how we make money for our clients. We are value investors: when we see an asset that is undervalued we recommend that our investors buy it. This is especially true when it comes to "blue chip" assets like beach towns.
When we evaluate an investment, we look at more than just value. We use a number of criteria and one of the basic rules is: know why this is a good investment. Translation: if you know why it is smart to buy now, you will know when it is smart to sell. Another criteria is cash flow. We are always looking for real estate investments that provide a strong, safe cash flow for our clients. So here's a big secret for you from a couple of Wall Street players: the why in this scenario is cash flow. Why will cash flow continue to be strong in Oceanside?
The answer to the question - and one of the reasons we recommend Oceanside to our investors - is simple: Camp Pendleton. There are nearly 40,000 Marines & Sailors and their dependents stationed at Camp Pendleton. This provides a tremendous rental base for the area. Steady supply of renters with steady supply of income equals good investment property.
Applying Wall Street principles to real estate investing is how we increase our clients' wealth. With Oceanside we ask ourselves a simple question: What is our level of confidence that Camp Pendleton will remain in Oceanside? If confidence is high (which it is), we give a buy recommendation. If you see indications that the base is going to move, disappear or significantly shrinking: sell.
