Tuesday, March 28, 2006

Hello friends. I'm sorry for taking so long between posts but I've been enjoying the fruits of my housing labor. I took a week long trip to Egypt. I flew first class, ate at the finest restaurants, and stayed at five star hotels. It was a trip to remember and the nicest part was I was earning money to take this trip. "How so," the confused renter asks? I used my credit cards to pay for the trip and earned a lot of points. Now I'm paying off the credit cards with my home equity line of credit (HELOC for those in the business) and not only do I get the good feeling of once again being debt free, but I also get to deduct the cost of the trip from my taxes (in the form of a mortgage deduction). Ah, being a home owner means living the high life. I get points, tax deductions, and the security of having no debt. As a wise man once said "owning a home is like printing my own money."

While in Egypt I went sailing down the Nile. I discovered that "the nile" is not just a river in Africa. No my friends, it is a state of mind. It is seeing the future stretching out, limitless, before you. Nothing seems impossible when you are in the nile. Next time you see some smart entrepreneur with 8 homes, each one more leveraged than the last, tell yourself this person is in the nile...and you'll know the truth about their success.

Somewhere a village is missing you: Now it is time for today's financial advice: be a contrarian. Look for a property nobody wants. Find one where everyone says only an idiot would buy that house. Become that idiot and buy that house. For soon that "idiot" will have an asset that people will clamor for. Need proof? If I told you 10 years ago that homes in Watts would go up more than any other area of California you would have thought me mad. You would have told me only an idiot would buy a home there. But the idiots were smarter than you. People said only fools would buy large numbers of homes to flip in Las Vegas or Arizona (it is surrounded by desert, scorching hot, etc) and yet the fools are rich and you are still poor. Our society today is built around rewarding risk takers and punishing the cautious. Those who are risk takers will find the entire world will lend them as much cash as they need. Those who are cautious will find their money slowly stolen from them by inflation and taxation. The future is for the bold my fellow nile travelers. Play your cards right and someday you too can be hip deep in the nile.