Living Bueno

We are all herded sheep, so obsessed with our own meager existence, if you can call it that, that we are unable to focus on anything outside our narrow view of what society says our happiness should be. We fail to realize that we learn and grow the most from those times when we reach our most weak and vulnerable state.

“Pure hell forces action, but anything else can be endured with enough clever rationalization.”

Tim Ferriss

If you haven't stopped reading yet, I thank you for letting me insult the status quo perspective to make an important point. Mediocrity is nothing to aspire too. If you believe it is, please stop reading now. It is not that I think I'm better than you in anyway, we just have the same mindset and you won't get anything of value from reading further.

If your still with me, then you likely believe that you are destined for something more in this life. You are what I define as the Game Changers.
What are the Game Changers you ask? Here are some characteristics of a GC:

• Not accepting of mediocrity, destined for greatness at all costs

• Live life with a never ending curiosity and thirst for knowledge

• Resilient to adversity, with unstoppable drive. Settling for less is not an option.

• A belief that passionate pursuits of self improvement throughout life are vital.

• Values Time and Happiness over bank account balances and the accumulation of possessions

This is just a brief overview, I'll cover GC's in much more depth in a future report.

What these Game Changers know, is that Adversity is what builds character and creates our future successes. The GC's are the polar opposite of the aforementioned sheep.

The sheep on the other hand are overtaken by adversity, they see it as a good time to give up. You likely know many people in your own life with this mentality, I call it the Victim mentality. These individuals con themselves into believing that greatness is unachievable, that the dreamers and doers of the world are reckless, living risky lives. They treasure stability and normalcy over all things. They really would rather live an unfulfilling life, than risk any sort of change. These sheep graze all day within the confining limits of their farm until the day they die within it's mundane boundaries.

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GC's are the proud and the few and they are wolves. They take risk and throw caution to the wind and now and again, fall hard. Their advantage lies in the fire that burns inside of them that cannot be extinguished. They are made differently then the sheep of the world. They understand that adversity and failure are merely precursors to success and happiness and are the catalysts for personal growth and understanding. While the sheep huddle together and hide in uncertain times, the wolves fight to the death and win, they know nothing else.

Anyone who plans on doing anything great in this life will face huge adversity and see colossal failures over and over again. When you hit this point you have only two options. Are you a sheep or a wolf?

If you're a wolf and you have just hit this point, do me a favor and smile in the face of adversity. You are damn lucky. You have now within you what alludes so many of us on a daily basis. You now have Motivation on your side which is basically like adding gasoline-soaked hay bales to your fire. Don't let it go to waste for another second and for damn sure stop your pity party right now. The truth is no one truly cares about your problems, they care how you come out the other side. Channel pain, guilt and sarrow into positive energy and quit being so damn sheep-like.

You are a Game Changer so change the game and play by your own rules. Only let people around you who share your mindset in these times, you can't afford to let the weak minded in. Take some personal time and worry only about yourself for once, if your going to change the game, you need to capitalize on this time to produce fruit in your passionate pursuits.

Remember,

"The greatest barrier to success, is the fear of failure"

Sven Goran Eriksson

Decide that you are the only one who can make the decision to get back up and keep failing, learning and failing again. Your fire cannot be put out and therefore you can never truly fail, but rather move step by step closer to your dreams.

This is your game, and there is no telling when the clock will run out. Never throw in the towel, fight till you die and win...

Photo Credit- Pink Sherbet Photography

"Isn't it amazing how things seem to fall into place when you are working in the direction of your dreams?" I asked. My mom shot a sarcastic, but knowing grin back at me "ya, ya I know'' She replied shaking her head.

I was paraphrasing a quote I use often from The Alchemist by Pablo Coelho which says;

"When a person really desires something, all the universe conspires to help that person to realize his dream."

Close enough I figured.

Since returning from a 3 month trip to South America, I'd spent the following 3 months mercilessly trying to convince my mom to make some much needed changes in her personal and professional life. It wasn't because I thought I was smarter, I had just seen a new way of life and wanted to help the one person who has done more for me than anyone else if I could.

I would try to implement many of the ideas I'd learned from The 4 hour Workweek By Tim Ferriss and give her the tools nessesary to better manage time and run things smoother. That was the plan anyway...

Photo Credit- Eflon

About a week into this experiment I realized I had quite the task in front of myself. My mother was working 60 plus hour weeks and the tips and ideas I had tried to engrain in her everyday activities seemed to be only aggravating her further.

I'd hear a myriad of things such as:

"It's not that Simple Rick.", "You think your so damn smart", or my personal favorite "Why don't you get a job and then give me advice"

3 months later we've learned that, It was that easy, I'm kinda smart and I got myself a fulfilling job. So what gives?

After countless arguments followed by wine nights where we'd reconcile and try and meet in the middle, it became clear that we simply needed to call a truce and try and move forward. It just so happened that we had been tossing the idea of taking a short trip to Arizona and checking it out as a possible place to live and work.

Photo Credit - farleyj

After 2 more weeks of her stubbornness and my nagging, we were on the road to better weather for a week in the sun. One week turned into three and what transpired in the process was amazing.

My moms business which she had been bottlenecking and trying to micro manage was forced to run more efficiently without her being around. She ran the business remotely and had orders shipped directly to the customers. Not only did the overall efficiency improve, but clients were getting their orders quicker and writing to thank her for her amazing service.

She began to realize that many of the things she'd been doing back in Seattle had actually been impeding her from being productive and taking away all her free time in the process.

The long days of running 2 businesses and never feeling caught up were replaced with pool side conversations of why we hadn't done this earlier. I could only smile and say I have no idea.

Most importantly of all, she was a different person. The rushed and worried mindset had disappeared to reveal a happy, carefree attitude. Work wasn't a chore but a hobby to fit in between lunch and happy hour.

She was back to being the great mom, successful entrepreneur and go getter that we all know so well. I have to say I don't know too many people more driven than my mother.A few subtle tweaks, I helped with would be paying off for years to come. I'd accomplished one of my goals I'd set upon leaving Buenos Aires and returning to the US, to help simplify my moms hectic life and business.

What's next?

We decided a change was in order in both of our lives and that we love the Scottsdale area. We have both completed our classes to get our Arizona Real Estate licenses and will be making the move down to the valley permanently in less than a week.

Photo Credit- BluEyedA73

And so as the title of this article goes, which happens to be my favorite toast, To New Beginnings and Happy Endings. A new chapter of my Life begins!

Photo Credit- Dru Bloomfield

I am an analytical guy. While I do have a background in Real Estate Sales, I've never been what you would consider the salesman type. My true passion in the business lies in finding great deals and undervalued properties, something I've always had a knack for.

There is no question that the Real Estate market collapse had a devastating impact on many homeowners. With values falling to less than 1/4 of they were in just 2 years, many homeowners have found them selves upside down in their mortgages and facing foreclosure.

This is the news everyone hears, it's no secret.

What I'm going to tell you about today is how you can take advantage of the bad times to build long term passive income.

*I'd like to say that I am not a financial advisor and this information is an opinion, not advice.*

Right now sellers are more desperate than ever to get out of the mess that they are in. For example, one home owner I know is facing a very tough situation.

After buying in 2006, he owed 375,000 on his home which appraised around $400,000. After the market correction, his home is now worth maybe $269,000.

What's worse is he signed up on an adjustable rate mortgage which payment is adjusting from $1,650 per month, to $2,250.

Oh yea an he just had his hours cut from 40 per week to 30 a week and his wife got a pay cut as well.

See a potential problem here?

There are tons of examples just like this that explain further the kind of mess we are in. I know some very experienced real estate investors who are simply sitting on the sidelines right now, not taking any risk as they are unsure of what's coming next.

The flip side of this is that there are many investors in the market currently who are making a whole lot of money each and every day. I spoke with a friend earlier this week who has bought 12 properties already this year and is actively looking for more great deals.

The method to the madness seems to be this:

It seems that right now, property should not be bought based on speculative purposes. It could be argued that it never should be in fact. What this means is property shouldn't be bought with an expectation that it will rise in value.

While I personally think it will see an increase in the coming years in many areas, I will not buy based on speculative purposes alone.

HOW TO BENEFIT FROM A DOWN MARKET

The key in this market seems to be buying based on the income approach to value, or what income the property is able to produce as an investment.

The market today is absolutely flooded with properties that can make you hundreds of dollars a month in positive cash flow. There are investors buying properties that rent for 800-1000 per month that are being bought for as little as $15,000 (that's not a typo) in the Phoenix area.

Now there is a point of contention among many of the people I've talked with recently that I would like to clear up. Phoenix area real estate is poised for a boom, you can quote me on that.

Why you ask?

People in the Seattle area where I live are very bearish on the real estate market and with good reason. While Seattle hasn't seen nearly the drop in prices as many other places, my bet is that the market here is in trouble. While the more optimistic approach here is that our "strong" economy will carry us through the hard times, I have a feeling that a nose dive is in order for the local market.

Photo Credit- respres

Not only are Boeing and Microsoft, the two biggest employers laying people off and outsourcing to cheaper areas (Boeing- Alabama, Microsoft- India and pretty much everywhere else), but the unemployment rate for people under 25 here is said to be one of the highest in the nation.

Economic aspects are always what everyone looks at the most and with good reason. However, there is a hugely important piece state law that many people seem to be overlooking.

You see in the event of a foreclosure the bank issues the order to a trustee to sell the property at auction and collect the money to pay the lien on the property. In recent years with shrinking property values the amount the bank obtains at auction, hasn't been enough to cover what is owed. This leaves a deficiency that the bank can then elect to sue the owner for.

However in certain states, Arizona being one of them, it is illegal to pursue a deficiency judgement. This means that homeowners can simply walk away from their properties with no recourse other than damaged credit and losing their home that they are upside down in.

This has caused a new phenomenon known as strategic foreclosure which has sent prices ridiculously low in the Phoenix area. Owners who bought in 2006 for $300,000 for example may now have the same $2,000 per month payment and yet have a home which has a market value of $120,000. Many of these owners decided to walk and begin the credit repair process immediately.

Photo Credit- PrimeImageMedia.com

This has also made finding a place to rent much more difficult. I personally was looking for a place to rent and went to 5 different apartment complexes and was turned away from each one because they had no available apartments. By the way this is also in the slowest time of year in Arizona as the summer is incredibly hot and known as the dead season for rentals.

I decided I might as well just buy a house as it was cheaper anyway. The fact is the prices there just don't make any sense and the rental market is strong despite what people might tell you.

In states like Washington prices have remained more stable as strategic foreclosure is not nearly as advantageous knowing the bank can take you to court for the difference owed after auction. This is also placing pressure on the market however. Homeowners are content to try and keep their homes, even dwindling down their life savings to do so even though they might owe $300,000 on their home which is now worth $210,000.

Photo Credit- Phil Sexton

My point is that while values have crashed very quickly in non deficiency states, they are now recovering and the rent market is rapidly improving. While things got pretty ugly in the Phoenix area, they seem to be stable now and even improving statistically. As soon as the inventory clears from the large amount of foreclosures, prices are poised to rise.

However in Seattle foreclosures have not even come to a peak. With homeowners holding on as long as they can, it seems that a bottom for the market isn't insight any time in the near future. Values should will likely continue to trickle lower and lower. The amount of buyers is low and until some sense of confidence is restored, this shouldn't change.

What you can do now

Look into buying in states that do not allow lenders to pursue a deficiency judgment. These areas are poised to recover much quicker and investor confidence will be stronger in these areas.

The biggest point I want to make however is to buy based solely on cashflow. Buying any home in this market based on the idea that values are going to rise is a huge mistake. It is actually why we are in the mess we are in today. Lenders and buyers thought there was no ceiling to where values could rise too. We learned the hard way that this is false.

Buying based on the income a property can produce and whether this amount is higher than the expenses and debt service on the property is the only way to go right now.

Creating positive cash flow in rental properties is one of the best ways to create long term wealth and in many of these non deficiency areas, this may be the best opportunity you will ever have to buy these positive cash flow properties.

The market is ripe for the picking if you educate yourself and know where to buy. If you have any questions or want my advice, please feel free to e-mail me at anytime at RickAGriffith@hotmail.com.I love to talk real estate and always have an in on deals. It's what I love to do and I am quite good at finding great deals.

Until next time...

I have received a lot of feedback from readers since starting this blog and have started to notice some similarities and common comments. I'd like to say thank you for even reading my blog, I'm honored that you care what I have to say.

Many times comments I read or things people say when they hear of my adventures in person sound something like the following:

• "Wow, your so brave! I would love to do something like that."
• "That sounds amazing, I wish I had the time to do that."
• "Your so spontaneous Rick, want to sleep with me?"

Ok, well maybe I made the last one up...

The truth is however that nothing I've done is something I see as a major risk. While trans versing South America for 3 months or permanently moving to a new state on a whim may seem like a huge risk to many people, the truth is that I am not the true risk taker.

Who is?

Mr 9-5, I can't find time, won't change my perspective and I'll play it safe person, is perhaps the biggest risk taker of all.

Why you might ask?

While many people define themselves based on money or success, we here at LivingBueno live in a pursuit of happiness. We believe that we shouldn't save our happy days for when where old and grey, just because that's the default in the American culture. That our TIME represents a greater value than Money. That laziness and inactivity isn't the pot of gold at the end of a depressing rainbow, but rather enjoying new things, learning constantly and pursuing personal greatness while seeing the world are things we can do and strive toward EVERYDAY.

Cancer kills people, sometimes very quickly. Do you want to hit retirement at 62, having saved as much money your whole life as possible and die one day before that birthday?

I'm being dramatic, but my point is that the future isn't promised and we all have a variable expiration date. Why not live life on your terms now, doing the things that you enjoy.

The fact that I have recently moved to Arizona and I am now working 60+ hour weeks in real estate does NOT in anyway mean that I'm not doing what I want to do. I love looking at tons of homes each day and finding amazing deals, it makes me happier than most things on earth to be very honest.

If you aren't happy and are working yourself into the ground for those illusionary golden years, you my friend are the real risk taker. Social Security may not even be around by the time you "retire".

Living life the way it is meant to be lived is not a risk in my book. It is far from it. Don't trick yourself into believing that you aren't capable of anything you want to get out of this life. It's too damn short anyway, why doubt yourself and waste time.

Do what you love, love what you do, Live Bueno...

Photo Credit seantoyer

So after a week spent in Scottsdale enjoying 100+ degree temperatures and leaving behind the 55-65 degree rainy summer days in Seattle, I have come to the decision that I will be moving to Scottsdale permanently. I already knew this would likely happen as I've been too Scottsdale twice before this trip, but this third venture into the valley absolutely cemented my decision.

Some more big announcements are coming as soon as the details are official. For now I can say that I will be living in North Scottsdale, loving life and working in the real estate industry.

I cannot tell you how excited and eager I am to get things set up here. This is truly an amazing area and a place where I feel I belong.

Much more coming very soon, it looks like I will be Living very Bueno in the near future!!!

P.S. Sorry for slacking on the blog, clearly I've been a bit busy, but you can count on some great content in the near future.