American Idol and Real Estate!

I love to watch the preliminary tryouts for American idol. They are the most entertaining. While most of them do not have the talent, they do have confidence. Some is unfounded, however, I one has to appreciate the courage to go for it. How many more millions of us do not step out into the limelight to see where we stand? How many of you have rented, dreaming of buying, but just stopping short because of fear?

There is a lesson to be learned from American Idol. While the judges, especially Simon, ridicule a bad performance, the action needed to step up on stage is one that makes the difference between being a spectator and reaching one’s true potential.

While the chance to become a star and perform before millions of people is very enticing, the truth is, it is short lived. I am not discouraging the effort, after all, I once pitched infront of 3,000 people at a college baseball game. I am simply saying that sometimes the least sexy things, turn out to be the most rewarding and long lasting.

For me, the opportunity to chase my dream of playing major league baseball, was one I could not pass up. I gave it my best effort, figuring that I could always get a job or go back to school. I made the correct decision and the lessons learned are ones I have used in my real estate investments and sales. So far, they have paid off.

I yearn to pass my lessons to you and help you see through your own eyes, how this is the most sound investment one can make. My favorite areas to invest are Orange County, California, Austin, Texas and the Carolinas. I am sure there are others.

So if you have a dream of building a sound financial future, real estate is the way to go. The two great areas in California I recommend are www.NorthwoodPointeIrvine.com and www.ThePelicanEstates.com.

Visit those sites and send me an e-mail.

Mike
949-533-2581

Posted: February 20th, 2009 under Hot Tips, Uncategorized.
Comments: none

Texas Fireball and Real Estate!

FORT WORTH, Texas, Feb. 17 (UPI) — An astronomer says a fireball seen in the sky over much of Texas and Oklahoma likely was a burning meteor and not a UFO or debris from a satellite collision.The object seen Sunday morning likely was a “classic bolide” — an extremely luminous meteor, said Ron DiLulio, director of astronomy at the University of North Texas.

Now what does this have to do with real estate?  Well according to everyone and their aunt, as far as real estate goes, the sky is falling!  No matter how much we look back on history, people still treat each situation as a first time occurrence. 

This real estate market is a correction and as an investor, you have to be willing to take the good with the bad.  Now, as an investor, you should also know that in the economic climate we are in today, there are many opportunities to take advantage.

For one, here in Southern California, prices have come down enough to where an investor can put 15 to 20% down and get positive cash flow.  At the peak of the market, it required 40% or more to get positive cash flow.

A burning meteor does get attention, but imagine a burning meteor falling thru the sky in 100 A.D. ?  What do you think people would have said then?  I bet you they said: “Ahhhhhhh . . . the Earth is ending!”.  It is all relative and use the experiences of the past to make sound decisions.   Do not make an emotional decision.  weigh the pros and cons and make an educated decision.  If you cannot afford it, buy something smaller. 

Remember the benefit of real estate:  1. Tax deduction, 2. Rental income, 3. Potential for appreciation.

Go to www.MichaelDunn.,com and send me an e-mail to start your way to security.

Mike

Posted: February 18th, 2009 under Hot Tips, Real Estate News.
Comments: none

Alex Rodriguez, Steroids and Real Estate!

On a warm Southern California summer day in 1993, I met Alex Rodriguez and his agent, Scott Boras at a high school batting cage.  I was throwing batting practice to a player in one cage and Scott Boras asks if he and Alex Rodriguez could take some swings in the cage.  Rodriguez was the number one draft pick that year and I said: “Sure go ahead”.

The player I was throwing batting practice to was Dave Angeloni, our starting third baseman and sometimes pitcher.  Dave knew who Alex Rodriguez was and every now and then would stop to watch Rodriguez take some swings.  It was a thrill for Dave to a peer of Rodriguez’s stature.  I could see Dave comparing himself to Rodriguez and gauging here he was on the scale of talent.

As a 33 year old coach, it was a thrill for me as well to appreciate the talent I was watching. 

Fast forward to yesterday when Alex Rodriguez gave his press conference.  Rodriguez did his best to blame his use of performance enhancing drugs on youth and ignorance.  While I believe that some things can be blamed on youth, I know of 25 to 28 year olds who never did any illegal drugs.  There is only one truth . . . and one day everyone knows it.

Rodriguez’s admission is a small part of the global problem we are facing today.  I called it the “Magic Pill Syndrome”.  Everyone wants to take a magic pill and side step hard work.   Whether it be in sports or real estate investing or stock trading. 

What everyone seems to forget is that we were all born with what we need.  Even if you were born in a wheel chair, you were given the will to survive and thrive. 

In real estate, the truth is simple:  buy a property that you can afford, look at it as a long-term investment and keep working at your chosen vocation.  Too many of us are looking for the instant high, the instant gratification.  Everyday we have instant gratification around us.   Just listen to the birds singing, feel the wind draw back your hair, sniff the sweet smell of the flowers or a lady’s perfume, hear the sound of children laughing.  Instant gratification is all around us.

The reason we are in a global economic crisis is due to the fact we all tried taking real estate steroids when our check books could not support the weight.  Our financial tendons snapped and now we are in rehab.  We were over-training.  Time to pay the price.

But do not despair, this is a fleeting moment.  It will return and the next time it returns, if we learn our lessons, we will become more successful.

In the meantime, go to www.MichaelDunn.com and send me a message. 

Mike

Posted: February 18th, 2009 under Hot Tips, Real Estate News.
Comments: none

Lincoln, Darwin and Real Estate!

This week is an interesting week.  President Abraham Lincoln’s 200th birthday and the 200th anniversary of Charles Darwin’s theory of evolution.  One more interesting event this week is the Economic Stimulus Package vote.

What do these three have in common?  The three ingredients of human existence: Compassion, Adapatbility and Hope.  These three ingredients are what make the world go around.  Lincoln freed the salves and opened up a new opportunities.  Darwin noticed that certain animals had adaptations that helped them to not only survive, but thrive.  The Economic Stimulus Package is designed to give consumers and investors hope that the future will bring more certainty.

The bottom line is this week is a microcosm of the current economic situation.  You have pundints against any Compassion (The government bailout) and who advocate the Darwin theory of survival of the fittest.  You have others who say this is a critical time and we need to help those who cannot help themselves.  Still others want a combination of the three.

For me, I do not trust the government.  Frankly, the politicians lied, still lie and will continue to lie.  Not only that, but they never assume responsibility.  The description of a leader, per Webster’s, is: (1): a person who directs a military force or unit (2): a person who has commanding authority

In a military operation the goal is clear cut and everyone knows the plan.  In a political operation, which this is, the goal is announced publicly, but the private reality is a power struggle to gain more.

Here is the bottom line:  If you are serious about your financial future, depend only on your abilities.  What are your abilities?

First and fore most, you have the ability to make sound decisions based on an educated analysis of the situation.  This is your greatest asset, no matter how much or how little money you have to invest.

Secondly, you must have the ability to take action.  Many people ask friends about investment properties and rely on only the negative stories of tenants not paying rent or destroying property. 

Out of my 8 properties, only once did the tenant cut out early from the lease and I have never had a problem with repairs.

As long as you keep your focus on the longterm and make sure the rents cover your mortgage, you will have smooth sailing.

Mike

949-533-2581

Posted: February 16th, 2009 under Hot Tips, Real Estate News.
Comments: none

Economic stimulus plan and Real Estate!

The latest update on the economic stimulus plans is as follows:

1. Congress is debating, adding and subtracting, and feverishly trying to come to an agreement.

Be aware of the work feverishly.  Whenever you see, hear, smell and yes . . . “feel” something feverish, either pop 5000 Mg’s of Vitamin C or run to extremely high ground!  People are huddled around their TV sets watching what is next as if it is a season ending episode of 24, the ‘ol Dallas soap and Days of Our Lives COMBINED!

Do you want the diamond studded golden nugget for the day?  Or as Paul Harvey would say “the rest of the story”?  Here is comes . . . LIVE WITHIN YOUR MEANS and . . . BUY REAL ESTATE!

Millions of people made millions of dollars during the real estate run up and million of people are going to make millions of dollars on the downhill side.  Here are a few examples:

 I have a client who bought a $350,000 house in 1998 and in 2003 paid it off.  The value peaked at $1,250,000 and has now settled around $1,025,000.  So they have around $1M available to invest.  They could juts rent theirs out for around $4,000 per month.  Since prices have dropped about 25% and will most likely drop another 10% this year, they have some great opportunities open to them.  No matter what kind of stimulus plan the government passes, these people have protected themselves.

This is my point, protect yours let DO NOT RELY on the government.  Right now is the time to invest.  I know, I know, I can hear you say:” But Mike, we have no equity in our home how can we do this?” 

In 1991 investors in Southern California sold off their properties because they were upside down.  One builder I spoke with wished he had rented them out because when the market came back (and it always does) he would have tripled his profits.  So, you may consider buying a bank owned home and rent your other home out until the market comes back.

When you are looking for investments, start looking to invest on the Irvine Ranch in Southern California.  Prices are now to a point where you can put 20% down and still have positive cash flow. 

So go out and keep striving to do your best in your chosen field and invest only in appreciating assets . . . REAL ESTATE.  if you do this, the world will turn.

Call me at 949-533-2581 immediately!

Mike

Posted: February 11th, 2009 under Hot Tips, Real Estate News.
Comments: none

Super Bowl and Real Estate!

Well another fantastic finish to a Super Bowl.  There were so many story lines of young versus veteran, defense versus offense, legacy versus history. 

I was rooting for Kurt Warner and the Cardinals.  It is amazing how a game can hinge on a few inches.  Take the interception return for a touchdown with no time left in the first half.  Had James Harrison been tackled one yard closer, it is a whole different ball game.

What does this have to do with real estate?  Well, in real estate an inch on a purchase contract can mean the difference between  healthy happy retirement and no retirement.

In today’s uncertain and sometimes volatile market, uneducated decisions can make a large impact on our financial legacy.  The good news is that in real estate, unlike stocks, you have a safety net - the renter!

As I can attest, when the m,market goes down, you have the help of a tenant to help your investment grow.  There are numerous builders I have interviewed who wished they had rented their properties instead of dumping them for a loss in the early 1990’s.  had they just rented them out for the next 10 years, they would have tripled their initial investments.

Remember this, real estate is the Super Bowl of investments.  And if you invest correctly and you learn to be patient and resist the urge for the quick dollar, you will reap the ultimate reward later - Super Real estate Champion.

Live within your means and your real estate investment will treat you well.

if you want to get started, call me at 949-533-2581 or send an e-mail to Mike@MichaelDunn.com.

Happy invetsing.

Mike

Posted: February 1st, 2009 under Hot Tips, Real Estate News.
Comments: none