"Only the man who does not need it is fit to inherit wealth -- the man who would make his own fortune no matter where he started. If an heir is equal to his money, it serves him; if not, it destroys him."
"The verdict you pronounce upon the source of your livelihood is the verdict you pronounce upon your life. If the source is corrupt, you have damned your own existence. Did you get your money by fraud? By pandering to men's vices or men's stupidity? By catering to fools, in the hope of getting more than your ability deserves? By lowering your standards? By doing work you despise for purchasers you scorn? If so, then your money will not give you a moment's or a penny's worth of Joy. Then all things you buy will become, not a tribute to you, but a reproach, not an acheivement, but a reminder of shame."
"When I disagree with a rational man, I let reality be our final arbiter; if I am right, he will learn; if I am wrong, I will. One of us will win, but both of us will profit."
Thursday, October 29, 2009
Wednesday, October 28, 2009
My Challenges
Challenge #1: Get a job with hours during the day time.
Work initially was a mundane evening of ctrl-c and ctrl-v's. They hired a lot of people with real estate experience; however, maybe only 2-3 who actually know how to use excel to any degree beyond "=sum(xxx:xxx)". So for the first week, we were delegated tasks of transcribing account numbers from BPOs (aka, faux-appraisals) and pasting it onto an excel spreadsheet. It was stupid easy...any idiot could do it. In fact, I was somewhat insulted by the work, but any work is good right now, so I copied and pasted.
Until tonight, my job didn't revolve around anything more than copy and pasting. I dare say it was my evening to shine.
Anyhow, I won't go into detail. I translated numbers and my supervisor was happy with me. He mentioned he'd be passing along more of that kind of work to me as it comes along. Perhaps this will translate to a day shift job, but only God knows.
Challenge #2: Meet more people with common interests.
To be honest (as opposed to being normally deceiving? ha), I find it hard to meet people who are still naive enough to cling onto large ambitions. I'm getting older and the 2am business pacts that were formed on the curb of 4th/6th street no longer transpire. Many of my friends are just trying to enjoy life and the novelties they can afford.
It's all about the new electronic blah, the new Xbox blah, the new i-blah and the new i-blah blah 2. It's consumerism run-amok. If it's not consumerism, it's the continual worship of football. I've never really been into sports. Sure I enjoy watching a big game, but let's just say the only reason I browse espn.com is so I have something to say when I have nothing else to say. Sports is the biggest common denominator among guys, and honestly, I'd rather play Counterstrike, than watch the Mavs game. There. I said it.
I want to meet people I can talk 'shop' with, in the same way the rest of my compatriots can talk about fantasy football.
Challenge #3: Pass the Discipline Act of 2009.
My laptop once had the deliberate organization of a Zen garden. Everything had a place and everything was in harmony. Nowadays, it looks like Hiroshima. Defragging estimates push the 4 hour mark.
I'm declaring a holocaust of body fat. After gorging myself on BBQ and Chinese food upon returning stateside, I've put on about 9 pounds... and it aint muscle. I have a pooch that shivers on my metal belt buckle. I can either cheat by wear slimming black clothes like skinny asian girls, or I can practice what I preach and go to the gym.
Work initially was a mundane evening of ctrl-c and ctrl-v's. They hired a lot of people with real estate experience; however, maybe only 2-3 who actually know how to use excel to any degree beyond "=sum(xxx:xxx)". So for the first week, we were delegated tasks of transcribing account numbers from BPOs (aka, faux-appraisals) and pasting it onto an excel spreadsheet. It was stupid easy...any idiot could do it. In fact, I was somewhat insulted by the work, but any work is good right now, so I copied and pasted.
Until tonight, my job didn't revolve around anything more than copy and pasting. I dare say it was my evening to shine.
Anyhow, I won't go into detail. I translated numbers and my supervisor was happy with me. He mentioned he'd be passing along more of that kind of work to me as it comes along. Perhaps this will translate to a day shift job, but only God knows.
Challenge #2: Meet more people with common interests.
To be honest (as opposed to being normally deceiving? ha), I find it hard to meet people who are still naive enough to cling onto large ambitions. I'm getting older and the 2am business pacts that were formed on the curb of 4th/6th street no longer transpire. Many of my friends are just trying to enjoy life and the novelties they can afford.
It's all about the new electronic blah, the new Xbox blah, the new i-blah and the new i-blah blah 2. It's consumerism run-amok. If it's not consumerism, it's the continual worship of football. I've never really been into sports. Sure I enjoy watching a big game, but let's just say the only reason I browse espn.com is so I have something to say when I have nothing else to say. Sports is the biggest common denominator among guys, and honestly, I'd rather play Counterstrike, than watch the Mavs game. There. I said it.
I want to meet people I can talk 'shop' with, in the same way the rest of my compatriots can talk about fantasy football.
Challenge #3: Pass the Discipline Act of 2009.
My laptop once had the deliberate organization of a Zen garden. Everything had a place and everything was in harmony. Nowadays, it looks like Hiroshima. Defragging estimates push the 4 hour mark.
I'm declaring a holocaust of body fat. After gorging myself on BBQ and Chinese food upon returning stateside, I've put on about 9 pounds... and it aint muscle. I have a pooch that shivers on my metal belt buckle. I can either cheat by wear slimming black clothes like skinny asian girls, or I can practice what I preach and go to the gym.
Sunday, October 18, 2009
Saturday, October 17, 2009
Three More Interesting Facts
1) Over 40% of healthcare providers today are non-profit.
(Source: Non-profit Healthcare)
2) Health care providers cannot transfer policies across states due to government legislation.(Source: WSJ)
3) Health care insurance companies make profit margins of 3.3%
(Source: Seeking Alpha)
Why aren't the Tea Parties talking about these things? Instead they are intent on regurgitating annoying Glenn Beck. Anyway, these three facts tell us 3 important things.
1) The additional promotion of more non-profit cooperatives won't really improve competition by driving down costs. Non-profits already own a significant portion of the market share. Why?
Medicare pays on average 10% below the cost of the actual service. Since the hospital has to get that money somewhere to avoid going bankrupt, prices go up for those with private insurance.
Secondly, Americans are really unhealthy, and our obesity and overweight numbers are rising.
2) Government legislation that restricts insurance companies from working between states should end, otherwise we will continue to have 50 health care cartels that own their own inefficient monopolies. If Obama wants to encourage competition, let the insurance companies compete nationally. And btw-- the cross-state restriction is a leftist policy made by states who want to mandate lower costs.
3) At such a low profit margin, the industry really isn't making that much. For every $1.03 of service they provide, they get 3 pennies after all business expenses are paid.
(Source: Non-profit Healthcare)
2) Health care providers cannot transfer policies across states due to government legislation.(Source: WSJ)
3) Health care insurance companies make profit margins of 3.3%
(Source: Seeking Alpha)
Why aren't the Tea Parties talking about these things? Instead they are intent on regurgitating annoying Glenn Beck. Anyway, these three facts tell us 3 important things.
1) The additional promotion of more non-profit cooperatives won't really improve competition by driving down costs. Non-profits already own a significant portion of the market share. Why?
Medicare pays on average 10% below the cost of the actual service. Since the hospital has to get that money somewhere to avoid going bankrupt, prices go up for those with private insurance.
Secondly, Americans are really unhealthy, and our obesity and overweight numbers are rising.
2) Government legislation that restricts insurance companies from working between states should end, otherwise we will continue to have 50 health care cartels that own their own inefficient monopolies. If Obama wants to encourage competition, let the insurance companies compete nationally. And btw-- the cross-state restriction is a leftist policy made by states who want to mandate lower costs.
3) At such a low profit margin, the industry really isn't making that much. For every $1.03 of service they provide, they get 3 pennies after all business expenses are paid.
Thursday, October 15, 2009
Hired Limbo
So after 2.5 weeks of annoyance... I've got a job. It's nothing glamorous. I'll be a part-time portfolio analyst for Bank of America as they staff up to drop all their toxic real estate assets. I'll be paid by the hour (taking a pay cut) and the hours are shit (Mon-Sat. 4:30pm-10pm). After all taxes and social justice handouts are deducted, I'll probably make the same as a person taking unemployment insurance each week.
This really makes me wonder if the unemployment insurance is such a good idea. Why am I working when I could be collecting unemployment? Why am I contributing to the economy while somebody out there is vegging about trying to 'find him/her self'? In my job search, I've found tons of jobs out there, but I think we don't apply for a lot of the jobs due to pride. I was ready to apply for a temping position to just get a little bit of cashflow coming in, until this job application came through.
Anyway, I'm coming down my soapbox. I still don't have a start date which is annoying. My friend told me that he had to wait a month after acceptance to begin working. Until then, I'll be applying to more jobs, attending more job fairs, and improving the knowledge base of my craft.
This really makes me wonder if the unemployment insurance is such a good idea. Why am I working when I could be collecting unemployment? Why am I contributing to the economy while somebody out there is vegging about trying to 'find him/her self'? In my job search, I've found tons of jobs out there, but I think we don't apply for a lot of the jobs due to pride. I was ready to apply for a temping position to just get a little bit of cashflow coming in, until this job application came through.
Anyway, I'm coming down my soapbox. I still don't have a start date which is annoying. My friend told me that he had to wait a month after acceptance to begin working. Until then, I'll be applying to more jobs, attending more job fairs, and improving the knowledge base of my craft.
Monday, October 12, 2009
Sunday, October 11, 2009
Presidential Honor
Le Duc Tho, a north Vietnamese negotiator, who worked with Kissinger to end the Vietnam war, is actually the only person to decline the Nobel peace prize in the 108 year history. According to nobelprize.org (which I think is a reliable source on this matter), Le Duc Tho rejected the prize because no peace agreement had been established yet in Vietnam. Kissinger, after accepting the prize, tried to decline it when he realized that he was the schmuck who accepted something he hadn't earned yet.
When I was a kid, I mowed lawns in my neighborhood to make my spending money. One time, a client gave my dad the money in advance since he would be out for the weekend. It was really hot that weekend, and I had only mowed the front before I was completely exhausted. I asked my dad for the money in advance to go see a movie, but he said that I couldn't have it until I finished the job. This was my earliest lesson about getting what you earn.
Contrast Le Duc Tho with Obama who hasn't accomplished anything yet, and you see the difference in personal honor. I truly hate it when people take credit for things they didn't earn. It's a spectacle of phoniness. It's like a lazy trust fund kid who thinks that he has earned the wealth that he's inheriting, or the squandering degenerate who thinks he deserves a slice of the trust fund in the name of 'social justice'.
Liberals have told me that regardless of what Obama does, conservatives will still be against him. I didn't agree with his economic policies before but I still considered him a man worthy of respect. After this debacle, he goes on to enforce why we minorities have such a bad rep for taking things that we haven't earned. It's dishonorable, and he should have followed the lead of Le Duc Tho.
When I was a kid, I mowed lawns in my neighborhood to make my spending money. One time, a client gave my dad the money in advance since he would be out for the weekend. It was really hot that weekend, and I had only mowed the front before I was completely exhausted. I asked my dad for the money in advance to go see a movie, but he said that I couldn't have it until I finished the job. This was my earliest lesson about getting what you earn.
Contrast Le Duc Tho with Obama who hasn't accomplished anything yet, and you see the difference in personal honor. I truly hate it when people take credit for things they didn't earn. It's a spectacle of phoniness. It's like a lazy trust fund kid who thinks that he has earned the wealth that he's inheriting, or the squandering degenerate who thinks he deserves a slice of the trust fund in the name of 'social justice'.
Liberals have told me that regardless of what Obama does, conservatives will still be against him. I didn't agree with his economic policies before but I still considered him a man worthy of respect. After this debacle, he goes on to enforce why we minorities have such a bad rep for taking things that we haven't earned. It's dishonorable, and he should have followed the lead of Le Duc Tho.
Wednesday, October 7, 2009
US Unemployment and the Golden Egg
Around this time last year, I was pushing my conservative agenda with McCain. Although McCain was also a bit too inconsistent for me, he was on the right track when it came to helping the US. Today, I think he would've done a better job than Obama.
McCain wanted to lower the corporate tax rate, make permanent the capital gains cuts, and create an open market for healthcare providers to compete across states. These are all free-market solutions.
I wrote the facebook post a year ago about how democrats are too focused on spending as opposed to creating golden eggs. Almost a year now, and this is proof of it. Obama is focused on how to choke the goose, and how to redistribute the golden eggs. What has he done to increase wealth production? Seriously, let's ask this question, because it's the economy stupid.
Lastly on my Obama rant, why is he still doing nothing about Afghanistan? The top general for the region says that he needs more troops to accomplish his mission. Bush was a tard and didn't send enough soldiers over there, so we saw more loss. After the 'surge' that McCain spearheaded, boom, we a more stable Iraq. Let's do this for Afghanistan and be done with it. But no, Obama is still thinking about it. When he finally comes to a decision, I'd like to read what it was that he was so busy deliberating.
McCain wanted to lower the corporate tax rate, make permanent the capital gains cuts, and create an open market for healthcare providers to compete across states. These are all free-market solutions.
- Lower corporate tax rates allow businesses more flexibility and make them more competitive internationally.
- Lower capital gains tax (ie: stock investment returns, home sales, the death tax) all spur more investment and spending in the economy. Why? What do, we the people, do when they get more money? We... spend, deposit in a bank (which the banks use to loan), or we invest. Either way, it's helping the economy.
- An open market for health care across the states will allow more competition that has been restricted by government regulation. The government doesn't allow cross-state insurance plans. Free-market solution will make these plans more competitive, thus driving down cost and increasing quality.
I wrote the facebook post a year ago about how democrats are too focused on spending as opposed to creating golden eggs. Almost a year now, and this is proof of it. Obama is focused on how to choke the goose, and how to redistribute the golden eggs. What has he done to increase wealth production? Seriously, let's ask this question, because it's the economy stupid.
Lastly on my Obama rant, why is he still doing nothing about Afghanistan? The top general for the region says that he needs more troops to accomplish his mission. Bush was a tard and didn't send enough soldiers over there, so we saw more loss. After the 'surge' that McCain spearheaded, boom, we a more stable Iraq. Let's do this for Afghanistan and be done with it. But no, Obama is still thinking about it. When he finally comes to a decision, I'd like to read what it was that he was so busy deliberating.
Monday, October 5, 2009
17 Resumes later, it's official...
I've applied to every real estate analyst position in Texas.
Now I'm going to canvass NYC and see if I can pique the interest of the big dogs.
For once it feels nice to see these job requirements and actually fit the profile!
Now I'm going to canvass NYC and see if I can pique the interest of the big dogs.
For once it feels nice to see these job requirements and actually fit the profile!
Sunday, October 4, 2009
John Mackey's (Whole Foods Owner-CEO) WSJ Op-Ed
The Whole Foods Alternative to ObamaCare
I keep reading about these solutions which make sense. It isn't conservative fear mongering or liberal heart bleeding. No death panels, no hand picked horror story to guilt empathy. Solutions at places like Whole Foods and SafeWay are probably the best solutions out there; however, neither side of the aisle is doing a good job promoting it.
I keep reading about these solutions which make sense. It isn't conservative fear mongering or liberal heart bleeding. No death panels, no hand picked horror story to guilt empathy. Solutions at places like Whole Foods and SafeWay are probably the best solutions out there; however, neither side of the aisle is doing a good job promoting it.
Night-o-Fun
It's been a while since I've had a solid night of fun. The last time it's been a late evening of fun has been in London with my Iberian buddies.
Tonight started out good. BBQ at my cousin's house with some really great steaks grilled by my older brother. While I still believe that the charcoal grill is superior to the gas grill, J somehow grilled it perfect. Combine that with vitamin beer and my dad's case of Samuel Adam's Oktoberfest, the dinner portion was off to a great start.
After dinner, we took off for our local Fox & Hound. A&M was getting served by Arkansas, so we got involved in a very heated game of darts. 501, 301, cricket, and perhaps the most exciting one, 3 person cutthroat. I get lots of anxiety when playing that game.
To finish off the evening, I went on a bowling spree with the cousin and cousin-in-law. While I never get triple digits, I got it for the first time. I should retire now while I'm ahead. Anyhow, 3 jack and cokes later, we pulled by a Wendy's for some comfort food before calling it an evening. This felt like college all over again. Three guys who haven't set foot on campus since 2005, relishing an evening of whiskey-soaked images of darts and bowling pins.
It's been a while, but it was fun. Three cheers to a good night out!
Tonight started out good. BBQ at my cousin's house with some really great steaks grilled by my older brother. While I still believe that the charcoal grill is superior to the gas grill, J somehow grilled it perfect. Combine that with vitamin beer and my dad's case of Samuel Adam's Oktoberfest, the dinner portion was off to a great start.
After dinner, we took off for our local Fox & Hound. A&M was getting served by Arkansas, so we got involved in a very heated game of darts. 501, 301, cricket, and perhaps the most exciting one, 3 person cutthroat. I get lots of anxiety when playing that game.
To finish off the evening, I went on a bowling spree with the cousin and cousin-in-law. While I never get triple digits, I got it for the first time. I should retire now while I'm ahead. Anyhow, 3 jack and cokes later, we pulled by a Wendy's for some comfort food before calling it an evening. This felt like college all over again. Three guys who haven't set foot on campus since 2005, relishing an evening of whiskey-soaked images of darts and bowling pins.
It's been a while, but it was fun. Three cheers to a good night out!
Thursday, October 1, 2009
It's in the genes
Although I never pursued anything resembling the craft of programming, I find myself really interested in it. I'm actually a bit obsessive compulsive over excel financial designs and I'm starting to learn VBA and Macros on my own. Why? Well, it would help in any investment situation.
Over the past week, I've been developing a single-family home investment tool in excel. It's beyond all the shallow conclusions that Robert Kiyosaki and Dolf de Roos proclaim in their get rich quick books. My intention was to apply commercial investment methodologies and apply them to the residential market.
Beginner Investor Scope:
Inputs Considered--
Conclusions Drawn--
10% return! Good investment!
Intermediate investor:
Inputs Considered--
Conclusions look like this--
Rent: $ 1150
6% IO Mortgage: $ (424)
Property Tax: $ (251)
Hazard Ins: $ (45)
Prop Mgr: $ (92)
CASH FLOW: $337/month!!
Advanced Investor Scope (not inclusive of everything though):
Excel Google Document is HERE.
I welcome feedback as I want to build this up to be as beginner-friendly as possible. I don't like it when people throw out terms that nobody understands to boost their own ego. (Note: in my original excel sheet, I have definitions embedded in each category, but google docs has deleted that... boo!)
Over the past week, I've been developing a single-family home investment tool in excel. It's beyond all the shallow conclusions that Robert Kiyosaki and Dolf de Roos proclaim in their get rich quick books. My intention was to apply commercial investment methodologies and apply them to the residential market.
Beginner Investor Scope:
Inputs Considered--
- Home Price: $100,000
- Rental Rate: $1,000/mo
Conclusions Drawn--
10% return! Good investment!
Intermediate investor:
Inputs Considered--
- All the Previous
- Insurance:
- Mortgage:
- Maintenance:
- Tax:
- HOA(If any):
- Property Management:
Conclusions look like this--
Rent: $ 1150
6% IO Mortgage: $ (424)
Property Tax: $ (251)
Hazard Ins: $ (45)
Prop Mgr: $ (92)
CASH FLOW: $337/month!!
Advanced Investor Scope (not inclusive of everything though):
- All the previous
- Vacancy/Credit Loss
- Sensitivity Ratios
- Positive or Negative Gearing (Very important!)
- Debt Service Cover
- Net Present Value/Discounted Cashflow (to account for time value of money, cost of equity, and inflation, etc)
- Internal Rate of Return (to understand the true returns for buy-hold-sell investment strategy)
- Cash on Cash Return
- Leveraged versus no leveraged return
- If positively leveraged then adding more debt will increase returns, if negatively leveraged than adding more debt will decrease returns. What's the threshold?
- With the debt service cover ratios you can understand the upper limit loans you can take out on a property and this includes unrealized capital appreciation
- NPV/DCF permit you to see how much your returns are really worth X number of years down the road.
- IRR allows you to see how much your returns are which includes principal paid off (often not calculated by investors)
- True yields.
Excel Google Document is HERE.
I welcome feedback as I want to build this up to be as beginner-friendly as possible. I don't like it when people throw out terms that nobody understands to boost their own ego. (Note: in my original excel sheet, I have definitions embedded in each category, but google docs has deleted that... boo!)
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