The SECRET Benefit of Failure...

Today, I spent some time thinking back over all of my failures and their lessons. It’s great to fail, in fact with failures in hand we are provided valuable lessons. Every single man, woman and child out there has probably failed at least a few times. I don’t know a single person who went from crawling as an infant to walking on their very first try. I also notice there are very few adults who continue to crawl instead of walk.

For me the failure that to my mind is when I was 15 years old and I decided to go into the sports card business. I was offered a “good deal” from someone that was relocating and wanted to sell the cards at a “deep discount.” Basically, here was a man that was going out of business who was looking for someone to purchase his inventory in bulk. Enter a 15 year old teenager who was bright eyed and bushy tailed. So I purchased tens of thousands of cards of differing values. I was getting a good deal when he showed me how to price out them in the “Beckett” card value guide. Yet, I had no idea that people weren’t really willing to pay the prices in the book nor that demand for sports cards was being replaced.

I ended up selling the majority of cards off in bulk and recovered about half of my money and gave the cards to whoever wanted them. The market for cards was quickly shrinking with the quick growth of the video game industry and Internet. Needless to say, that was my first lesson in business. The lesson I learned was to avoid taking anything at face value and only to buy from those you trust.

The sports card business had been steadily fading out over the last 10 years. It was a fad that had a really great run, but you should always know your market and see what’s coming down the pike in the way of alternatives. I later relearned that in my business classes.

Wishing you Wealth in all its Greatest Forms

‘W’ before ‘H’ in the Financial Alphabet

We all know that the letter “H” comes before “W” in the alphabet. At least I hope you learned that in public school. When it comes to financial planning these days, it seems as if the HOW comes much before the WHY. The HOW can be one of the myriad of financial products that are out there. There are 529 plans to fund college expenses, annuities that may guarantee income streams, and insurance to protect one’s family. Yet, in practice some advisors are familiar with only one product and recommend it to all their clients…putting the “H” before the “W”. The question why needs to be asked. Putting together a college fund for your child? Saving for retirement? Protecting your family? Or it may be a mix of all of them. The key to a Successful financial plan is figuring out the WHY, then the HOW part will be a walk in the park.

When I was growing up, my family doctor was one of the nicest people I ever met. I think I visited him probably 20 times between the age of 5 and 10, but the diagnosis was always the same. “It’s your allergies, take some Claritin.” I think my leg could have been broken and he would have told me to take some Claritin. He was an allergist, but that was his specialty. On a side note, my allergies are much better.

Wishing you wealth in all its greatest forms.

A lesson in perspective

The other night I was in downtown Los Angeles, relatively late in the evening, celebrating a friend’s birthday. For me L.A. always seems to have plenty of homeless people, at least in comparison to what I typically encounter in Orange County. I asked two homeless people, the same question, which was, “How would you describe the City of Angels?” The first man I asked told me that people are sneaky and dishonest and that it’s a miserable world. The second man I asked told me that the city was friendly and helpful. How could two people who were both homeless, wore the same ragged clothing and lived in the same city have such different perspectives on life? I believe this is just another lesson in perspective.

In my life, I have always recognized that I have always found what I am looking for. Meaning, that if I am looking for all the things that are wrong, I will search until I find things that are “wrong” with my life. On the flip side, I have also noticed that when I look for all the beauty and opportunity in this world, I find it. Our expectations are magnetic and whether on a conscious or unconscious level, what you expect, you fulfill.

Wishing You Wealth in all its Greatest Forms.

Real Estate Review for June 2008

Real Estate Report for North Orange County – June 2008

In the last 30 days, the demand for local real estate has relaxed a bit. In visits to local open houses, many agents reported that very few people had been visiting their open houses. These are properties listed at full potential value and not short sales. The majority of the local supply is in short sales since homeowner’s who don’t need to sell will wait for better prices.

For many first time homebuyers, short sales will be the way to go. Properties that were valued well over $550,000 as recently as 12 months ago can be had at prices between $350,000 and $400,000. Much of this has to do with the “foreclosure effect.” Many properties in north Orange County are valued lower due to most recent comparable sales being from auctions or short sales.

Some local homeowner’s are even “upside down” meaning that they owe more than the property is currently worth. Since the homeowner’s wouldn’t be able to fetch a price greater than the loan balance, lenders are making exceptions and allowing them to sell for less than they owe. Reports continue to abound about how property values are decreasing at a dramatic pace. It should be recognized that the majority of properties sold are in the lower price range since financing is easier to obtain and these properties are becoming more affordable at a quicker pace.

There are many properties that will be selling at “discounted” prices, but with foreclosures and short sales, the onus is on the buyers and their agents to investigate the property thoroughly. In representing my buyers, I currently have offers at lenders for properties at $350,000 that sold for $575,000 one year ago. There are many ways to get a good deal in the market, just make sure that you are well prepared.

Wishing You Wealth in all its Greatest Forms.