Done with Golf Trip

I'm done with the golf trip and back home again. Getting back to the everyday routine. Overall, I played OK. I suppose I could have played better, and I could have played worse. Next year, I will go to the driving range a few more times before heading south. Maybe that might have made a difference. Sorry for the short post. It is late and I don't have much to say.

Golf Trip Update

Well, it is Monday evening. We have played 4 out of our 6 days of golf in South Carolina. It is very cold here (but colder at home). It rained on us the entire time on Saturday in 40 degree weather. I was absolutely soaked afterwards. About 40% of the group didn't even play. I ended up shooting a 103 which wasn't bad considering I couldn't feel my hands or feet for most of the day. Sunday, while still cold, was sunny and felt much better. The course was in good shape too, considering all the rain from the day before. But it was still cart path only which added some time to the round. We still got done about halftime of the Patriots-Chargers game.

My son likes the Chargers as well as the Colts. I am sure he was disappointed. It would have been nice to see what they would have done had LT played. Maybe the outcome would have been different, or maybe it wouldn't.

On Sunday, I shot a 98. Not bad, but it could have been better. I had a crow steal a protein bar out of my cart as I was putting on the 10th hole. I saw them milling around the other cart, so I took my half eaten protein bar and wrapped it back up in the package, thinking they couldn't get to it. It turns out the crow picked up the package in his beak and flew off with it. As soon as he got it, about ten others starting chasing him around. He landed and put it down on the fairway, fought some of them off, then picked it back up and flew away with the others in hot pursuit. It was a pretty funny sight.

Today was again sunny but cold. I had 8 penalty strokes since for some reason my typical slice off the tee left and all I had was this nasty hook into the woods. I ended up shooting a 102. Oh well. So much for the PGA.

Finally, today was MLK day. He was killed before I was born, but I am glad that we remember and honor him. He was a great man. I hope that despite the physical and cultural differences that exist between all human beings, we can remember that we are all God's children and treat one another with the respect deserving of God's creation.

Golf Trip in South Carolina

I am with my brother-in-law and 16 other guys for our annual January golf trip in South Carolina. I shot fairly well for me today. I was striking the ball fairly well despite not having played since October. I did go to the driving range on Wednesday. During summers at home, I usually shoot somewhere between 95 and 105. My goal down here is to keep it under 100. Shot 97 today with 4 penalties.

Unfortunately, the weather is a little chilly. Today is likely to be our best weather day with a high of around 50. It was overcast and 40's in the morning but by about 2 pm we did get to see the sun. Tomorrow, we are anticipating mid 40's and rain (up to 1 in). I hope it doesn't rain. The good thing is that my golf game is not affected by the weather since it isn't the greatest anyway. I just hope I can feel my fingers and toes at the end of the day.

The hotel has wireless internet which seems like a major advance considering where we are. This is the first year my brother-in-law hasn't had to step out into the parking lot to get a cellular signal. Right now we are watching 1 vs 100 on the 19-in tube TV. Some guy just risked $250,000 and lost. Ouch. That is worse than 3 putting.

Pleben.com

I am starting a website called Pleben.com. Pleben comes from the Latin term for the common citizenry with an –n tacked on the end (like American). I took a little liberty with the spelling since many domains had already been taken. Pleben.com will be on-line March 1, 2008 and is a social network with a slightly different business model than most, if not all, other social networks.

First, we will charge an annual subscription fee of $25. There are several reasons I selected a fee based social network. First of all, there will be no advertising on Pleben.com so subscriptions will be the only source of revenue for quite some time. We may, from time to time, enter into partnerships or sponsorships for some of our contests, which I will discuss later. I also feel that a subscription will increase the quality of the network. I think it will be unlikely that many will sign up just to have an account without being an active participant. I would also like to think that a subscription will leave a paper trail related to billing and might actually increase security for the site’s users, which might be a concern with free networks.

Secondly, I would like to give back to the users and society to make the virtual world and physical world a better place. I plan on giving between 10 and 20% of revenues to charity. If I can keep costs down, 20% will be the ideal. I would like the members of Pleben.com to become actively involved in philanthropy in their own communities as well. I look forward to being able to discuss these efforts on the site. I plan to give back to the users through contests. A similar portion of revenues, 10 to 20%, will be used as prizes in contests. These contests will be initiated once certain membership levels have been obtained. Of course, not everyone will win, and this isn’t an easy way to make passive income like I am seeing in these “ponzi” social networks. These will be contests like the McDonald’s Monopoly game.

Finally, if Pleben.com eventually attracts enough attention to warrant private investors or an IPO, I will take 50% of the proceeds over $50 million and begin giving away $1 million prizes at regular intervals. Of course, as subscriptions are renewed or added, additional prize money and charitable contributions will be available.

I am posting this to get the name of the website out prior to the official launch. The website itself is still being developed but should be finished on time and ready on March 1st. I would also appreciate any comments or insight that anybody might have and would be pleased to answer any questions.

Gymnastics and Football -- Redux

Unfortunately, we have two gymnastics meets today in two different locations. We had one yesterday afternoon, and I had to DVR the football games. I was home by 6 pm and was able to catch up to live TV during the Packers game. What a great game in the snow! Brett Favre doesn't have many years left. It would be nice to see him win another SuperBowl if the Colts don't make it there.

Today, however, I will be driving to Chicago for my son's meet. His 2 favorite teams are the Chargers and the Colts. We will be on the road during the game. We will DVR it, but will likely listen to it and know the score before actually seeing it. What a shame the meet is during that time instead of yesterday. Oh well, I just hope I don't get hurt wearing my Bob Sanders jersey in Bear country. Wish me luck.

You Could Win A Car!

I am starting a website (actually paying to have it developed since I don't know enough about that stuff) and plan to give away prizes. There will be more detail as the official launch date of March 1st gets closer. One of the prizes I plan to give away is a car. There will be a special drawing for anyone who reads this blog and puts in a special code on the website.

So, if anyone is interested in this, send your email address to kgcaroffer@gmail.com and, as we get closer to March 1st, I will send more info. Also, share this with your friends and contacts. I am trying to generate interest by word of mouth only. There will be no advertising. Also, I will not sell your email address. Thanks.

Thought This Was Worthwhile

I got this in my email today and thought I'd share. It speaks for itself.


The following was written by Ben Stein and recited by him on CBS Sunday Morning Commentary.

My confession:

I am a Jew, and every single one of my ancestors was Jewish. And it does not bother me even a little bit when people call those beautiful lit up, bejeweled trees Christmas trees. I don't feel threatened. I don't feel discriminated against. That's what they are: Christmas trees.

It doesn't bother me a bit when people say, "Merry Christmas" to me. I don't think they are slighting me or getting ready to put me in a ghetto. In fact, I kind of like it. It shows that we are all brothers and sisters celebrating this happy time of year. It doesn't bother me at all that there is a manger scene on display at a key intersection near my beach house in Malibu. If people want a church, it's just as fine with me as is the Menorah a few hundred yards away.

I don't like getting pushed around for being a Jew, and I don't think Christians like getting pushed around for being Christians. I think people who believe in God are sick and tired of getting pushed around, period. I have no idea where the concept came from that America is an explicitly atheist country. I can't find it in the Constitution and I don't like it being shoved down my throat.

Or maybe I can put it another way: where did the idea come from that we should worship Nick and Jessica and we aren't allowed to worship God as we understand Him? I guess that's a sign that I'm getting old, too. But there are a lot of us who are wondering where Nick and Jessica came from and where is the America we knew go to.

In light of the many jokes we send to one another for a laugh, this is a little different: This is not intended to be a joke; it's not funny, it's intended to get you thinking.

Billy Graham's daughter was interviewed on the Early Show and Jane Clayson asked her "How could God let something like this happen?" (regarding Katrina) Anne Graham gave an extremely profound and insightful response.
She said, "I believe God is deeply saddened by this, just as we are, but for years we've been telling God to get out of our schools, to get out of our government and to get out of our lives. And being the gentleman He is, I believe He has calmly backed out. How can we expect God to give us His blessing and His protection if we demand He leave us alone?"

In light of recent events...terrorists attack, school shootings, etc. I think it started when Madeleine Murray O'Hare (she was murdered, her body found recently) complained she didn't want prayer in our schools, and we said OK.
Then someone said you better not read the Bible in school. The Bible says thou shalt not kill, thou shalt not steal, and love your neighbor as yourself. And we said OK.


Now we're asking ourselves why our children have no conscience, why they don't know right from wrong, and why it doesn't bother them to kill strangers, their classmates, and themselves.

Probably, if we think about it long and hard enough, we can figure it out. I think it has a great deal to do with "WE REAP WHAT WE SOW."

Funny how simple it is for people to trash God and then wonder why the world's going to hell. Funny how we believe what the newspapers say, but question what the Bible says. Funny how you can send 'jokes' through e-mail and they spread like wildfire but when you start sending messages regarding the Lord, people think twice about sharing. Funny how lewd, crude, vulgar and obscene articles pass freely through cyberspace, but public discussion of God is suppressed in the school and workplace.

Are you laughing?

Funny how when you forward this message, you will not send it to many on your address list because you're not sure what they believe, or what they will think of you for sending it.

Funny how we can be more worried about what other people think of us than what God thinks of us.

Pass it on if you think it has merit. If not then just discard it... no one will know you did. But, if you discard this thought process, don't sit back and complain about what bad shape the world is in. My Best Regards.
Honestly and respectfully,

Ben Stein

Vee and Exercise, Inc

Today was my day to workout with Vee. At weigh-in, I ended up gaining 1 pound during the holidays. Not bad considering all the junk I have been eating. Now that things are getting back to a regular schedule, I should be able to continue losing some weight. My goal will be to get to 200 pounds by the end of January from 204.2. I think it is doable. Today, he had me start on negative chin-ups with 40 lbs. The first few were real good...nice and slow. I did 5 that way and did 2 with just my body weight. Then it was on to chest press. Next it was leg curls. I had been able to do the entire stack of 200 lbs until I hurt my knee while refereeing soccer in the spring. It hurt most of the year. I am just getting back to the point where it doesn't hurt (it used to hurt just driving). I was able to do 180 on that.

Next, I went to the leg press. I was able to do 520 lbs for 1 minute 20 secs. My goal is to do the whole stack of 600 lbs in the next 2-3 years. A lot of it depends on what exercises I have done prior to the leg press. We finished with leg adductors (inner thighs). I was pretty much spent by then.

I mentioned that I would ask Vee about some of his workout history. He has been doing the high intensity in slow motion (I guess superslow has been trademarked--here is a link to the founder Ken Hutchins's site http://www.superslow.com/) exercising for 4 years exclusively now. He used to do the regular type of weight training, but has since gotten bigger and stronger over the past 4 years. I know it has helped me quite a bit. I have included another portion of his work-out...the leg extension.

Coach Roland Dies

I was saddened to learn last night that my college football coach, Dennis Roland, passed away after a battle with non-Hodgkins lymphoma. I never played football until college. We were at a small college and nobody was cut from the team, but Coach Roland allowed me to try my hand at something new. I appreciated that more than I can describe. I never felt as though I was very athletic, although I was fairly quick. I was second quickest on the team behind the starting tailback (I could run a under a 4.4 40 yd dash and had a 36 inch vertical but wasn't very big). I worked hard and ended up on the kickoff coverage team my sophomore year.

Anyway, Coach Roland was a big guy but not profoundly obese. He was tall and wide. He had played offensive lineman in his day. It turns out he was only 11 years older than I am although in college every adult seems somewhat ancient. He had a knack of inspiring people to do their best without being degrading to his players. I think that was his biggest asset. He also surrounded himself with coaches who shared that philosophy of motivation through positive reinforcement. You just wanted to go out and give everything you had because you wanted to do your best for him, not because you were afraid, but you just didn't want to disappoint him.

I had heard he was somewhat ill about a month ago, but didn't realize he had cancer. I regret not having called him. I don't know what it would have done. I like remembering him as young and strong on the football field. I feel like a little part of me has passed with him, but I will always remember. Even though I hadn't seen him in a long time, I will miss him. My prayers will be going out to his family.

Subprime Hits Home

We had agreed to purchase another rental house and had a signed purchase agreement with the seller, but we had not arranged financing. Since we have other rental houses and since we felt that the bust wasn't too bad here in central Indiana, we didn't think financing would be all that different from the last several years. Central Indiana never really participated in the huge increase in home values. Thus, we didn't think there would be a bust.

Well, apparently the tightening of lending standards is hitting everywhere. We had talked to someone from Countrywide and it turns out that many of the loan products are gone. We were being offered products like 11.25% for 40% down on a purchase price between 100,000 and 120,000. Can you believe it? So, I guess we won't be doing anything for awhile except tuning up the personal balance sheet and waiting for the real estate/subprime mess to blow over.

Merry Christmas

I hope everyone had a Merry Christmas yesterday. We had a ton of chaos in our house with 6 adults, 7 children, and 3 dogs. It was very noisy and chaotic during the opening of presents. Trash was everywhere. I am sure everyone had a good time, though. One of the nicest things about the Thanksgiving and Christmas holidays is getting together with family and just hanging out.

We played lots of games yesterday. Games on the computer, board games, video games. It was nice to relax and forget about the concerns of everyday life for a day. Of course, today it's back to work, pay the bills, get the oil changed in the car, and clean up from yesterday. But, I try to be thankful for everything we have and enjoy while I am able. It won't be long, relatively speaking, and the kids will be grown and out of the house. Then holidays might end up being too quiet. So, here's to noise.

Oldest Daughter

Ok. So my oldest daughter wanted me to write something about her since she felt the rest of the blog was boring. This is the same one who asked us how long the CBS news program "60 minutes" was on. She does know some good blonde jokes, though. Now that I have written about you, you can stop bugging me about it.

In the meantime, I continue to learn a lot about the internet since I am considering a venture in that area. As things get going, I may post more. It is amazing the amount of information that needs to be considered.

Yesterday, I worked out again. Did not lose any weight, but didn't gain any either. I am getting close to my end of year goal but don't think I will quite make it. I am making progress, however. Otherwise, I don't have much to say. I have been quite busy but not with anything very exciting.

Learning on the Internet

It is truly amazing the amount of information that can be found on the internet. Two weeks ago, I had little idea that it was so easy to publish and create a blog on the internet. In doing this, I have also been looking up information about hosting and domain names. I have learned about the registering process and how domain names expire. The best thing is that I am able to do this over a wireless connection while watching Monday Night Football. Minnesota is beating Chicago by a touchdown with 2:45 left in the 4th quarter. It's nice to sit down after a very long day. Maybe tomorrow I will have something more profound.

Butch O'Hare

World War II produced many heroes. One such man was Lieutenant Commander Butch O'Hare. He was a fighter pilot assigned to the aircraft carrier Lexington in the South Pacific. One day his entire squadron was sent on a mission. After he was airborne, he looked at his fuel gauge and realized that someone had forgotten to top off his fuel tank. He would not have enough fuel to complete his mission and get back to his ship. His flight leader told him to return to the carrier. Reluctantly, he dropped out of formation and headed back to the fleet.

As he was returning to the mother ship he saw something that turned his blood cold: a squadron of Japanese aircraft were speeding their way toward the American fleet. The American fighters were gone on a sortie, the fleet was all but defenseless He couldn't reach his squadron and bring them back in time to save the fleet. Nor could he warn the fleet of the approaching danger.

There was only one thing to do . He must somehow divert them from the fleet. Laying aside all thoughts of personal safety, he dove into the formation of Japanese planes. Wing-mounted 50 caliber's blazed as he charged in, attacking one surprised enemy plane and then another. Butch wove in and out of the now broken formation and fired at as many planes as possible until all his ammunition was finally spent. Undaunted, he continued the assault. He dove at the planes, trying to clip a wing or tail in hopes of damaging as many enemy planes as possible and rendering them unfit to fly.

Finally, the exasperated Japanese squadron took off in another direction. Deeply relieved, Butch O'Hare and his tattered fighter limped back to the carrier. Upon arrival, he reported in and related the event surrounding his return. The film from the gun-camera mounted on his plane told the tale. It showed the extent of Butch's daring attempt to protect his fleet. He
had, in fact, destroyed five enemy aircraft.

This took place on February 20, 1942, and for that action Butch became the Navy's first Ace of W.W.II, and the first Naval Aviator to win the Congressional Medal of Honor. A year later Butch was killed in aerial combat at the age of 29.

His home town would not allow the memory of this WW II hero to fade, and today, O'Hare Airport in Chicago is named in tribute to the courage of this great man.

So, the next time you find yourself at O'Hare International, give some thought to visiting Butch's memorial displaying his statue and his Medal of Honor. It's located between Terminals 1 and 2.

SO WHAT DO THESE TWO STORIES HAVE TO DO WITH EACH OTHER?

Butch O'Hare was "Fast Eddie's" son

"Fast Eddie"

I received the following story in my email today:

Many years ago, Al Capone virtually owned Chicago. Capone wasn't famous for anything heroic. He was notorious for enmeshing the windy city in everything from bootlegged booze and prostitution to murder.

Capone had a lawyer nicknamed "Fast Eddie." He was his lawyer for a good reason Fast Eddie was very good! In fact, Fast Eddie's skill at legal maneuvering kept Big Al out of jail for a long time.

To show his appreciation, Capone paid him very well. Not only was the money big, but also, Fast Eddie got special dividends. For instance, he and his family occupied a fenced-in mansion with live-in help and all of the conveniences of the day. The estate was so large that it filled an entire Chicago City block.

Fast Eddie lived the high life of the Chicago mob and gave little consideration to the atrocity that went on around him. Fast Eddie did have one soft spot, however. He had a son that he loved dearly. Eddie saw to it that his young son had clothes, cars, and a good education. Nothing was
withheld. Price was no object. And, despite his involvement with organized crime, Fast Eddie even tried to teach him right from wrong. He wanted his son to be a better man than he was. Yet, with all his wealth and influence, there were two things he couldn't give his son; he couldn't pass on a good name or a good example.

One day, Fast Eddie reached a difficult decision. He wanted to rectify wrongs he had done. He decided he would go to the authorities and tell the truth about Al "Scarface" Capone, clean up his tarnished name, and offer his son some semblance of integrity. To do this, he would have to testify against The Mob, and he knew that the cost would be great.

So, he testified.. Within the year, Fast Eddie's life ended in a blaze of gunfire on a lonely Chicago Street. But in his eyes, he had given his son the greatest gift he had to offer, at the greatest price he could ever pay.

Police removed from his pockets a rosary, a crucifix, a religious medallion, and a poem clipped from a magazine. The poem read:

The clock of life is wound but once,
And no man has the power
To tell just when the hands will stop
At late or early hour.
Now is the only time you own.
Live, love, toil with a will.
Place no faith in time.
For the clock may soon be still.

The rest will be posted tomorrow.

Weight Loss

Today was Thursday, the day I exercise with Vee. I think he was trying to prove a point today since I posted his video (see Dec 9--Planks by Vee). He had me start with negative chin-ups after putting 50 pounds on the belt around my waist. I was able to do 2 good ones for about 15 seconds each, then nothing. So, he had me take off the weight and do some more with just my bodyweight. I did two more good ones and that was it. Then it was right to planks again. Ouch again. After that, shoulder press, leg press, inside thighs and lower back rounded out the routine.

The temperature in the exercise area is always kept at 62 or 63 degrees. By the end of the workout, it feels like it is about 75. Then the hallway feels like a sauna and makes me feel like I want to puke. I always drive home with the air conditioning on in the van even in the winter.

Oh, about that weight loss. I weighed in at 203.4 pounds. I started in August of 2006 at 230 lbs and lost down to about 213 by the end of this summer. That's when Vee started weighing me each week before my workout. He also gave me an eating plan (not diet). Well, I'm not always good at following the plan but when I do eat junk, I try to eat less--two slices of pizza instead of four. Anyway, it's nice to have someone to be accountable to (nor do I want to mess with Vee of 2 minute chin up fame). I'll try to drink more water this week, Vee.

Dollar Cost Average into Real Estate

Many people have heard about dollar cost averaging. It is technique where one invests a set amount at regular intervals. Typically, this takes the form of stocks or bonds. For example, one might invest $100 monthly in an S & P 500 index fund. When the fund is up, the $100 buys less shares and when the fund is down, more shares are purchased. Over time, this lowers the overall cost basis of the shares.

But, how many actually invest in real estate in this fashion. One of the things we have tried to do is to purchase a single family home for investment, on average, once each year. Then, when the real estate market is strong, one pays a higher price, but when real estate softens, we can get more for our money. Of course, in central Indiana where there wasn't a huge real estate bubble, it may not make much of a difference. But I believe this can be a potentially useful technique for those who want to buy and hold for investment purposes.

On a side note: I want to thank everyone so far for their support of my blogs so far. Currently, there are two, and I hope to announce some new blogs with specific themes in the near future.

Gymnastics and Football

Yesterday, I drove to Kentucky with my son to watch him compete in "Little League" type gymnastics. He competes at Level 5 in the 8 year-old age group. At this level, all the kids do the exact same routine. As the kids improve and are able to add certain types of skills and moves, they move up to the next level. The kids compete based upon the ability to correctly execute the required skills and with good form, etc. However, because they all do the same thing, the competitions aren't the most exciting. It's great to watch your son and see the progress that is occurring. The other great thing about gymnastics at this age is the conditioning and strengthening the kids get. Both of my sons have their 6 packs, while I spend time with Vee working on my 2-liters.

So what does this have to do with football? Two things. First, my oldest loves to watch football and wants to play. I remember being there. He tends to be a little small for his age. We certainly wouldn't discourage him but are trying to explain that the effort he is putting into his gymnastics training is developing his strength and athleticism. We explain that he can always learn many aspects of the game when he is a little older. I didn't play until college (albeit a small college). The second thing is that one of my fondest memories is my dad driving to Iowa from Indiana to watch me play football my freshman year in a JV game. Well, it turns out I didn't get to play, and I was very disappointed. But my dad did eat dinner with me and tried to encourage me. So, I hope someday that even if they aren't the best at what they do, I hope my kids remember that I was there to watch and encourage.

Planks by Vee

What is a plank? And what does someone named after the 22nd letter of the alphabet have to do with it? Well, Vee is my trainer, and he is a good one at that since he practices what he preaches. Vee can be seen in the video (along with Bo, owner of Exercise, Inc.) doing a super-slow chin up. I describe him as Samuel L. Jackson in appearance.

Every Thursday, for 20 minutes, I pay Vee for the privilege of receive a super-slow workout. Don't let the name fool you, however. Super-slow refers to the repetition speed. The idea is to take 10-15 seconds doing a positive movement with the weight and 10-15 seconds for the negative. The slow movement requires an incredible amount of control and works every fiber in the muscle, both the fast twitch and slow twitch fibers. You end up working the muscle to total exhaustion. The slow motion is also safer for your joints, and injuries are rare.

I have been doing this for about three years now and am stronger than when I played football in college. Lately, Vee has been having me step on the scale each week, encouraging me to eat healthier. If any of you lives in the Indianapolis area, Vee works out of Exercise, Inc. There is a facility in Brownsburg and Avon. The sessions are one-on-one and usually private. They are only 20 minutes since that is about all your body can take. It takes about a week to recover for more super-slow, but you still can feel good enough to engage in sports activities.

Oh, what is a plank? Lay on the floor like you were going to do a push-up. Get up on your elbows and toes and keep the rest of your body off the floor and straight like a board (plank). Hold as long as you can. Ouch. Thanks, Vee.


Email me at kgcaroffer@gmail.com to find out how to win a car!

New Phone

I got that new phone today. I went to the Verizon store and picked an LG Chocolate phone in black. It looks really cool. My kids seem to be playing with it more than I have gotten to use it so far. It has song identification software, and they are playing music on the internet and watching it ID the songs. Obviously, I am going to have to spend some time with the manual so I can figure out all the features.

Also, I am working on a new blog reviewing business related books from my bookshelf. As soon as I get a few posts, I will place a link on this blog. If you wish to email me, you can do so at kidgas@gmail.com.

Assets and Liabilities

I enjoy reading a lot and try to take away some useful information from everything that I read.

One of the biggest things that I have been able to get from Robert Kiyosaki and his books relate to his thoughts on assets and liabilities. He defines an asset as "something that puts money in your pocket" and a liability as "something that takes money from your pocket". I think this is a very useful way of looking at investments since cashflow is a major determinant of the financial health of any institution or individual.

So, when looking for my major assets, I see:
- Profession. Despite taking a majority of my time, the majority of my cashflow comes from this part of my life.
- Real estate investments. This is not always true since on occasion cashflow is negative due to repairs, vacancy, etc.
- Stock investments. Dividends can be a nice source of cashflow. Obviously, if I had more dividends, I could spend less time on the profession.
- This blog. It's not making much yet but as people read and click on ads, maybe.

For liabilities, I see:
- Housing and related expenses.
- Transportation and related expenses.
- Taxes...a major expense that I hate.
- Loans, both school and credit, etc.

So, part of the consideration for investing should be: Does this put money in my pocket?

Buy & Hold

The central Indiana real estate market never really did participate in the real estate bubble. When United Airlines went bankrupt, the maintenance center in Indianapolis shed many jobs pushing many of the homeowners on the westside of Indy into foreclosure. There has also been a lot of overbuilding in the area, so buying for appreciation has not been part of our strategy. Instead, our plan has been to buy and hold becoming landlords.

I will try to outline a few of our investing philosophies. The first thing we look at is our intended demographic. We try to look for people who might not quite be able to afford a home but would otherwise live in one. This includes young couples with children who might be starting out. We also frequently rent to people who are building a house after moving to the area but need a rental during that process. The houses that we tend to look for have 3 bedrooms and 2 bathrooms. This would be large for an apartment but represents a quality starter home.

Another consideration is that we do not rent anything that we would not be willing to live in ourselves. I think this creates a feeling of mutual respect between ourselves as landlords and our tenants. This means we have clean, well-cared-for properties. We also tend to rent at or slightly below market. This gives us a ready supply of potential tenants when one of our houses becomes available. We rarely have vacancies lasting longer than a week or two. That is despite the fact that we don't show a property until the previous tenant has moved out. This gives us time to have the place cleaned for sure and painted if needed. There is nothing like a fresh coat of paint to make a place look good. We have heard many times that our houses are the nicest and cleanest ones people have seen. All our houses are also in neighborhoods which makes them family friendly. We try to keep them looking nice to maintain property values as well.

Those are just some of the things we do since we can't count on rapid appreciation and don't have the time to engage in a large remodel and flip project.

Accidental Landlords

In this post, I hope to convey some of my experience in real estate investing. I will post from time to time on related topics as well.

My wife and I are what I have seen referred to as “accidental landlords” . Essentially what this means is that, when we outgrew our first house, we were unable to sell and ended up having to rent it out to show income to the mortgage company since we couldn’t carry two mortgages. We ended up renting it out to some acquaintances, but did not do a credit check. Well, things worked out OK for a while but then rent started coming in a few days late, then a few more days late, then a week or two late. I’m sure you get the picture. Eventually, we sent a notice that we would evict, and the family moved out on their own. We had to clean out the place, repaint everything, and replace carpet. It cost about $3000 to get back into rental condition. From this experience, we learned the following:

- Try to rent to strangers (we did rent to some good friends later and that worked out OK, although we were hesitant and explained that to them)

- No late rent. I have a short fuse now for putting up the eviction notices and have been to court to evict one other time.

- Always check credit. Nice people aren’t necessarily responsible people.

Despite the rough start, my wife and I actually enjoy our landlord experience now. We have gotten better at selecting tenants through reviewing credit, personal references, and personal interaction. We also have declined to rent to people that caused us concern.

I will post more info on real estate investing in the future. Please feel free to comment.

Good News and Bad News

First, the good news. My sister-in-law had a follow-up ultrasound today to look at the baby's heart. There was some question after an ultrasound two weeks ago. Well, everything is OK. The second bit of good news is that I was able to get AdSense approved, up and running, and the little bots ran over my blog. Now they are putting out some good ads. I even made $1.72 so far. This is great. As soon as I am able to make some more and get a check from Google, I will start to implement a good idea that I have for a website.

I want to thank everyone who has come by to visit and hope that you will continue to check in periodically. I plan on posting some useful information about investing. I also plan to detail some of what I am learning about blogging as well.

Now for the bad news. I slipped on the ice while taking out the trash cans and landing right on my phone. Needless to say, I need to get a new phone now. There goes all that $1.72 I have made.

New Computer

I bought a new computer at Wal-Mart yesterday. It is a Toshiba laptop to replace my current laptop which happens to be dying and turning totally black at random. I am not sure why this is happening. It has been a great computer. It is a Compaq Presario 900 with an AMD processor. I bought it in 2002, so I have gotten plenty of use out of it. But I am somewhat saddened. It is like saying goodbye to a trusted friend knowing that you will never see each other again. I was able to get many of my files onto a memory stick the other day and will put those on the new computer. Hopefully, this thing will survive long enough to double check everything to see if I got what I need in the future.

I plan to work on getting the AdSense up and running as well. It looks complicated to me, but I am sure that it is simpler than it first appears. I am excited about the prospects. I have a few ideas for websites that I think are good. I want to use this blog to learn my way around the computer a little better. I have been able to set up a wireless network at home. Of course, it took some time on the Linksys help line. They were very helpful. I appreciated their customer service and would recommend their products to anybody. Well time to post this and start working on getting some ads to pay for it. Once I start making some money, I plan to use that to fund my website ideas. Wish me luck.