Roger's World...

Why Demonize?

It seems like there are so many opinions of how to do things, but more and more, it's being capped off with some hate.  Do people really need to use the term Nazi while describing Obama?  I understand you may have a differing opinion, and that we've got free speech and all, but I wonder how its going to affect us in the future.

I'm a big believer in the power of words - I'll use the word 'challenge' instead of 'problem'.  Or, as opposed to phrasing a question in negative light such as "I don't want to lose my keys", I phrase it as "I want to make sure I keep my keys".  (This is staying away from a 'negative goal'.) 

Some people don't understand the power of words, and it's going to be interesting to see how it will affect our culture in the next decade.  I wonder if, because people are using the terms socialist, Nazi, Communist, etc., that we're really setting ourselves up for those scenarios to reemerge. 

I can safely say that Obama's plan is nothing like Nazi Germany and the 3rd Reich. So do we need to use those words to describe policy that we may not agree with? The demonetization of both the left and right is only going to fuel the fire of hate.  And our country suffers for it.

The questions that each of should be asking are 'How To..." questions: "How can we get this health-care (or economic, or immigration, or whatever) challenged fixed for the greater good of everyone in this country?"  Maybe "How can I help to solve these challenges?" as opposed to "That guy's a scumbag!!!"

We all have an opportunity to make things better, every moment, and every word we utter.  How can we each do more to help the issue at hand, versus cutting down others?  There are millions of brilliant people in the USA.  How can we get them to help us figure these challenges out.  America is the Land of Opportunity - but we must begin to use our resources to accomplish things, not to invent clever ways of spewing hate and vitriol.

I appreciate all the feedback...

Partnerships...

We all have partners in this world.  Sometimes, as in a marriage, they work for a very long time - 30, 40, 50 years or more.  Sometimes, they last for a few weeks, or less.

I've always been fascinated with people that have been able to make relationships last so long. What is the process?  Have they aligned themselves so much with the other person and their values/beliefs/dreams/goals that it just works?  Or have they sacrificed so much of their individual sense of being in order to make it work for such a long time?  Did they get comfortable, give up on their dreams?  Or, have they really figured out some secret that I have yet to understand?  While I do have some very long and very strong friendships lasting a couple of decades, they're not certainly not like a long marriage or business relationship. 

This point was made on several occasions this past week.  One partnership that was several months in development was suddenly cut short by my partner's inability to decide and to act. Fear gripped this man, fear of losing money. So many 'what if's' occupied his thinking, that he was paralyzed from the head down. I saw it coming for a few days, and finally had to cut it off - it was a waste of time. And if I continued to nurture a person gripped by fear, I knew that I, too, would begin to fall into the same trap. So the dissolution comes with a few more lessons learned, and new opportunities unearthed.  For this I'm grateful, and re-energized!

As I continue to build my company, and grow as person, I look forward to all of the lessons that each partnership - the ones lasting a couple of minutes (like meeting people at Starbucks) or ones lasting a lifetime (people I've already known for decades) - will provide - If I'm able to keep an attitude of gratitude, and to continually ask myself the question: "What's GREAT about this??"

Please share your thoughts and insights...

Offers, Offers, Offers....

The last 2 weeks have been pretty busy in terms of the offers I'm sending out.  The big one is a 185 multi-family property near Dallas TX.  If the numbers work out, this might be a great project for me and my investors.  I'll reiterate - it MIGHT be a great project.  The reason for the skepticism is because 1) I don't know that specific area too well; 2) A trusted colleague of my cousin DOES know the area, and the industry very, very well, and was none too impressed with it.  So as I've learned long, long ago - never get emotionally invested in a property.  Ever.  This way, if it works, then great, you'll make money (hopefully!).  If it doesn't work, then the most important word to know is: Next.  Despite what some new investors believe, there is always - ALWAYS another property, and probably better than the one you were looking at.

The other property I put an offer on was another condo in the same little area of Palm Desert CA. Our 6th in this great little area. The condo does need a bit of work, but that's something I've done a bunch of.  My partner and I are very interested in these 'base hits' as my cousin calls them, to help the down time, and to build a bit of working capital for the larger projects like the multi-family units I'm interested in buying.

So in the last 6 weeks, I've put out about 6 offers on various properties - which I feel is not a lot.  But I'm amping it up.  I would ideally, like to submit 3 offers a week on either multi- or single- family properties.  This is a numbers game, and the more you offer, the more get accepted. For the other investors out there - keep it up - keep making those offers.  Something will work and you'll start making more money!

And, once again, we're always looking for partners on these projects, and willing to give up a larger portion of equity on the larger projects. If you're interested send me an email - or visit my site http://JBBHoldings.com to find out more about partnering with me. Yes - I can also help you with your deflated IRA and get it working for you, not working against you. Email me now to find out more!

And  - Keep making offers - its the ONLY way you'll get them accepted!

One of THOSE days...

Yesterday was one of those days.  One of those days that you remember where you were, what you were doing, oh so long ago. The day and place when you found out ‘The News’.  Kennedy (I wasn’t here yet). The space shuttle (each one). 911.


August 5th marks the sad anniversary of Jeff Porcaro’s passing. You may not know the name, but you’ve heard the drumming. You’ve felt the groove, You’ve heard it since you were young, and not for anything new for 17 years.


I feel the need to elaborate on who this guy was… and still is.

Jeff was one of the finest drummers of the modern age.  Respected by absolutely everyone for his abilities, and they were numerous, he is known as a musician’s musician of the highest caliber. Sony & Cher at 17, Boz Scaggs at 22, Toto, Don Henley, the Bee Gees, Steely Dan… Google him and find out for whom else he played.  You’ll get a small idea of this genius.
 I say a small idea, because if you’re not a musician, or more so, a drummer, some of what makes Jeff’s playing so special might be lost on you.  A young drummer once said that “It was easy to play those songs.  It’s nothing special.”  He hadn’t yet figured out that it has nothing to do with the amount of notes you play, but how you play each note.  And then I started to understand it.  I started to hear what it was all about.  Just about that time, Jeff passed on. He was 38. Just 3 years younger than I am today.  While I was at Berklee, I had the rarest of rare opportunities: to actually play one of His drum sets!  A red Gretsch kit with a 20’ bass drum.  My friend Abe Laboriel Jr. was close to him - Jeff was a teacher/mentor and allowed Abe the use of his kit while at Berklee.  I got to help set it up many times.  It truly was an honor.  I really wish I would’ve been a better player!  Maybe I’ll get another chance someday.


So I’ve been watching him on youtube quite a bit.  Have a listen:


None of us will ever be that good. OK - maybe if you’re Steve Gadd and you’re reading this - but nobody else.  Everyone, and I mean EVERYONE on the planet will agree with that, unless they’re on some drug that alters perception/reality. But they’ll sober up and I hope and pray that they’ll get it.  Just as I did 17 years ago.

Lessons Remembered...

Since moving to Palm Springs in September '08, I've had the joy (and sometime frustration) of playing with the John Stanley King band.  I say sometime frustrating, because of my challenges associated with my arm, and having been away from any steady gig for over 5 years - I've been rusty!!

Having played with JSK and Rob Martinez every week since January, things have come together pretty well, all things considered:  The Arm Thing, not rehearsing or even practicing, and only playing once a week.  We sound pretty good most of the time - with some very inspired 'jams' that take us to some places none of us have been before. Its usually a fun time!

Because John is a 'local celebrity' of sorts, playing with him has afforded me a kind of 'instant acceptance' by a lot of the local musicians.  It's a nice change from having to prove and re-prove over and over... I get to play and get my name out with relative ease.

With this, I was approached by a writer for a local entertainment weekly magazine.  They spotlight various entertainers/musicians each week, and it became my time. We did an interview of about an hour over the phone a couple of weeks ago, and I gave him what I thought was the most important information in my education/career.  And I trusted him with the facts - facts I thought I spelled out clearly enough.  I was wrong.

The article came out today.  I found a copy early this morning, and began to read.   I was mildly amused at some of the things that were focused on. Some of the people I played with, some of the spelling, the chronology of events... those types of things.  But when the writer suggested that I was a 'Investment Broker" I realized that it was all MY fault:  I didn't request to proof the interview to double check the facts.  I learned this lesson a long time ago in Orlando while running my own quintet.  I forgot it, and it has come to bite me once more.

This is the last time!  I say that with humility and graciousness to the interviewer, and hope he understands that a quick proof will hep everyone in the short- and long-term.  I now remember why...

A couple of new offers...

It's been a while, so let's jump into some offers I've submitted.

A broker has sent several projects in the Salt Lake/Provo area, and I made an offer on one in Ogden, UT a few weeks ago.  It's a medium size property with about 150 units.  It has a unit mix that wasn't very appealing: mostly 1beds.  The other trouble with it is that its  got a flat roof, each of which will affect the cash flow (too low) and financing from a bank.  They we're asking $5 million, which I calculated to be about $1.5 million too much.  (This is based on NOI x 10 = Value) They've countered (sort of) for 'somewhere above 4 million..."  Next.

The other offer is on a small condo here in the desert.  Its a 2/1 worth 85k (once fixed up - which will cost 8-10k) and we've offered 40k for it.  We'll know in a few days...  It would be kinda fun to do a very very small rehab. I've taken on a partner to do a few deals like this to see how well we work together.  That'll be in another post.

If anyone wants to learn about investing with us, please contact me.  We'll always have good cash flow, with strong back-ends.  Very conservative numbers...

People's Favorite Topic...

People love to talk about themselves. And as someone that loves people, I like to think of myself as one who asks questions and engages people on what they want to talk about. Except tonight I was told that I talk about myself.  A lot, apparently.

Wow.  It's a tough thing to hear, given the fact that people love to talk about themselves. And I'm lucky that there's someone that knows there is a safe space to communicate what she's seeing/hearing.

So how does someone grow from this?  By being present to the situation/conversation and not feeling the need to fill gaps.  It's going to be a great lesson in humility, patience, and listening.  Gratitude abounds for my friend that has shared this viewpoint.  And the question begs: "Is there not a safe space for communication between other friends to allow them to let me know this?"  So much richness...  :)

So let's all step back and check in to see if it's all about 'us', or all about 'them'.  It might mean the world of difference to all those we relate to.

Out of my head...

Sometimes, when there's a lot going on in our lives, we get inside our heads a bit to much, and get out of the flow. This happened to me last week on a couple of gigs I was doing here in Palm Springs with the John Stanley King Band.

I wasn't focused entirely on the music, and was allowing other things to influence me while I was playing.  This is a very selfish way to act.  I forgot one of the oldest lessons that all pro musicians preach: "Leave your stuff off the bandstand".

Last night however, I was totally immersed, present, and confident. The band sounded great, adding credence to the other old saying: "A band is only as good (or great) as it's drummer".  It felt great for me, the other guys - John and Rob - and the customers at the gig. Even Bill or bartender/friend/supporter suggested that they give me a new nickname: Thor! 

So hopefully, as we go about our days and weeks, we'll remember to stop being selfish, get out of our heads, and be fully immersed, present, and confident.

Thinking... and Writing...

It was recommended that I read a couple of books - E-Myth Mastery by Michael Gerber, and Thinking For A Change, by John C. Maxwell.  They're having a great impact on what's been happening in my head lately, and the premise of each compliment the other very well.

E-Myth has been helping me to understand how to work 'on' my business - the Vision, the Plan, the Objectives.  Writing it down.  Thinking For A Change has been helpful to remember not how to think, but what to think about - the power of a focused mind. Applying that process to my E-Myth lessons has really help to clarify where I want my biz to go, what its focus is and could be, and to, very importantly, write it down!

I've been involved with several start-ups over the years.  Some have done well (for awhile), others have not.  What they all have in common is that none of them had a Business Plan that was alive, impassioned, and most importantly: believed.  The challenge was that the plan was often a static document - one that was only for people that thought a plan was needed - not because they were passionate about the biz or about the plan.  This is my distinction.  The lesson is learned...now it's being put into practice.

So if any of you are starting a biz, or own one now, I highly recommend each of these books.  They'll help you as they're helping me, and the thousands of others that have followed the steps.

Have fun!  Be a little crazy!! But write it down, let it breath and grow...  and let me know how it's going!

Thank you Sandy King, and Marco Sangiorgi for suggesting them...

Dirt Rich, Paper Poor

In this economy, it’s more and more clear that you can't buy a piece of paper to make you rich. Everyone I’ve spoken to over the last 10 months has lost money in the market. That’s obvious.  What interests me is how other people have been making money given these challenging times.

The people I’ve been encountering, the ones still doing well, are investing in real estate.  As you may know, I’ve been espousing this for quite sometime.  My philosophy has always been to buy something with inherent value, such as land, property, or something with an attached asset - like a deed of trust.  Even gold and silver are a much wiser investment than a stock.  Some won’t agree with me on this.  I don’t care. It’s proven itself over and over again. Those of you that disagree - have fun waiting 5 years to get back to where you were a year ago.  Those of you that agree with me, you already know why.

OK - now that we’ve got those people out of here, let me explain a few things.  First  - we need to learn our lessons - sometimes the easy way, sometimes the hard way. And we need to remember that no investment is ever 100% safe. Even T-bills? Not even T-bills, and I can tell you why.

As of today, the long term T-bills rate is somewhere between 2% - 2.17%.  And according to some accounts, the rate of inflation in 2008 was 3.85%.  So if you had $1000 invested in a T-bill last year hoping to earn $20 -$21.70, then you’re a bit sad, because after trying to be safe, your $1000 is now only worth $983.36. (I used the 2.17% to compute)  So those people ‘investing’ in T-bills have lost about $17 for every thousand.  So do you think it's safe?  No, it's Paper Poor...

Where does that leave us?  You need to buy tangible assets. Gold, silver for the smaller investors. Coins - not bullion.  For the larger investor - ones known as accredited investors - you should have diversified your portfolio into several sectors, and real estate should make up the most.  And I’m not speaking of REITs.  Actual property that is making money - positive cashflow - not negative (not a vacant lot that you may want to build a house on someday.  Remember: Cash-flow is KING!)  THIS is how you get yourself out of this economic mess the world is in.  Become Dirt Rich...

There are many avenues to do this.  You can go educate yourself about buying properties with strong cash-flow. You can learn how to find these properties. You can then learn how to make an offer, do the due diligence and study the financials of a property. You can learn which markets in the USA are still doing well.  If you’re lucky enough to find a building and buy it, you can learn to manage it.  Then learn to manage it well.  Hopefully, your money is still yours, and your learning curve hasn’t depleted what you had.

If all of this sounds a little overwhelming, not to worry.  Partner with someone doing it.  I started doing real estate deals in 1996, and have some hard-fought experience under my belt. I’ve been doing all of those things I just listed for quite some time, and have learned many lessons and pitfalls to watch out for in the process. Take your time and read, listen and learn. You'll succeed if you're smart about it.

The last few years have been a challenge for all of us.  But the future can be and should be one of great change - Change that can turn loss into gain!