Real estate investors, take note!

Bought the house in 1994 for $200,000. Had it valued the other week... $690,000!

House up the road sold for $600,000 and the owners tore it down to build another house on the land.

Overheard woman talking to her mom about a super-upmarket one bed unit for only $390,000!

Young guy bought a place two years ago for $180,000 and it is now valued at $400,000 and he can't afford the taxes. HA!

Crazy.

Michael Ross


No craziness here

Hi,

Remember how we used to say "Hear about that 17 year old kid that started [whatever].com, and now two months later he's a billionaire? Crazy!"

Now all the dotcoms exploded like the Hindenberg. I for one miss the heady dotcom days.

Soon the RE market is going to explode like the Hindenberg, after which a lot of people will miss the good ol' RE boom days.

Just my educated guess ...

- Boyd

Hi,

Something else that's crazy is the way some Americans live in 4000 square foot homes (bought at the top of the market and big enough to house the average third world village), drive leased luxury cars, sport their Polo shirts and Rolex watches---and are always on the brink of financial disaster even before they lose their jobs.

Man, when the effluent hits the oscillator some of these people are going to become fearsome predators as they seek to defend their egos and their families. I'd be afraid to encounter them in a dark alley.

Just my idiotic opinion as always.

- Boyd

Boyd:

Ben Suarez call it "ornamental magnifiers." Agree with him, I do.

What's really interesting is that even Barnum mentions this behavior in The Art of Money Getting which you greatfully linked to the other day. Of course, in this day we might not think a fake camel hair shawl will impress anyone, but its equivalent might.

If you (as in anyone) is happy to drive an old car and live in an old house or mobile home and live an uncluttered life, no one sees you coming. They leave you alone. You get on with your life making money. Let them buy the depreciating do dads. While you get rich.

HA! One guy I was discussing a business venture with said, "You'll recognise me cause I'll be wearing my Calvin Klein shirt."

OH what a wanker. (Turns out his shirt was an imitation made in Bali shirt - and he was also wearing a fake made in Bali rolex, and hocked up to his eye balls with new car leases and living in an apartment he couldn't afford.) HA!

Know a guy worth about $15mil. Drives an old battered F150, gets around in old shorts and a T, does his own garden work and lives in a non-descript house.

Difference is one guy doesn't care about what you think of him. He just goes about his business. The other guys spends all his money to look the part of something he is not - and that's a game you can never win.

Michael Ross

P.S. I don't think your comments are idiotic.

Hi,

I just wrote and deleted a few paragraphs which boil down to "thank you very much" (and I sincerely mean it).

Best,

- Boyd

I agree with you, in regard to living beneath/below your means. However, the following is ridiculous:

> Know a guy worth about $15mil. Drives an old
> battered F150, gets around in old shorts and
> a T, does his own garden work and lives in a
> non-descript house.

I know a lot of people like this, too. But it begs the question: If you're just going to schluff around like that, then why bother hassling with getting "rich" in the first place?

I also know a lot of very wealthy people who also have the finest cars, houses, clothes and toys. Which would rather be?

Hi,

For what it's worth, if my wife and I ever get independently wealthy we'll keep living like we do now (with the exceptions that we'll upgrade our medical care and outsource more--but not all, by any means--of the grunt work).

Best,

- Boyd

You don't need to be independently wealthy to do that. You just need to focus on making an additional $20K a year.

dno
> You don't need to be independently wealthy
> to do that. You just need to focus on making
> an additional $20K a year.

Check out a book titled, "The Millionaire Next Door". It covers many cases of people who made good on investments, business, and invention, inheritance, or something.

They were content with their home and lifestyle, so why make major changes.

Many of those who are worth millions didn't necessarily kill themselves by work, they made a plan and stuck with it.

You should meet Dick Kaeser, Chairman of Kaeser and Blair. I've been selling for them as an independent agent/dealer for over ten years now.

It cost him a big chunk of change to give the company to his children in advance of the inheritance/estate taxes.

He still goes to work everyday, working at the company that his dad was co-founder of. For the past seven years he was still driving an old second-hand Cadillac he got when he bought his wife a new one. The trade-in value was so low, he kept it for himself.

This past winter he finally got rid of the 20+ year old car and got a pickup that will get him to and from work on the sometimes icy roads around Cincinnati.

He's lived in the same house for years, and saw no reason to change as his fortunes improved. Had no need for all the "trappings" of wealth.

During his time as Chairman, he has seen the company sales increase from less than $6 Million annually to over $61 Million for the past sales year.

He doesn't need to work, but still goes in 7 days per week, and usually arrives before anyone else and turns the lights out after he leaves.

Meet him at the company convention and he'll have time to talk to you and everyone else who wants to visit.

Some people work from necessity. Others work by choice.

I consider myself fortunate to have Dick as a friend and business partner.

Dennis Bevers