We Can't All Be Donald Trump - And That's Okay

When considering the many obstacles on the road to success, you might overlook “perfectionism”, but you shouldn’t. This sneaky stumbling block can stop you from even beginning your journey.

Nancy’s Colasurdo’s excellent article, “We Can’t All be Shakespeare- And That’s Okay”, takes a look at a ‘defeat mechanism’ that can stop us from even trying to accomplish our dreams.  And as we all know, if you don’t begin your journey, you certainly won’t get there.

As a coach Colasurdo has found that clients “often feel that they have to be perfect or aspire to be at the level of someone they feel is at the top of the profession.” Looking at the end game, some feel that such an achievement is impossible for them. They forget the many steps that a leader took to achieve his or her goals.  And they also forget that each one’s way is individual.

How might this apply to real estate investing? What if a would-be investor chose Donald Trump as a model, and said, “What’s the point of buying a small rental property, or two or even three?  That’s nothing to Donald Trump.” 

But just because your journey may be different, that doesn’t mean you shouldn’t take it. When looking at others’ success stories – remember, their starting point may be different, they have a different path to take, but the important factor to emulate is the mindset that looks for opportunities small and big and makes the most of them one by one.

Donald Trump learned the real estate business first hand from his dad, Frederick, a successful developer in Queens and Brooklyn.  When ‘the Donald’ wanted to invest in Manhattan, his dad tried to discourage him. But Trump had a vision of what he could accomplish, he felt he understood the risks, and was determined to go for it.  His mid-70’s transformation of the Commodore Hotel into The Grand Hyatt, not only made him a fortune and set him on a road to tremendous success, but it also completely revitalized a rundown area of Manhattan.

Few of us begin with Trump’s assets or a dad like his for a mentor. Instead, we have to learn the business on our own from the ground up. But we do have the ability to adopt the Trump mindset – the approach of a champion. 

What does it entail? Doing your homework, understanding the finances, taking well-considered risks, planning every step, being prepared for challenges and dealing with them, capitalizing on success, learning from failures.  And to quote Winston Churchill, “Never, never, never, never give up.”

And little by little, step-by-step you will build your real estate business, write your own story, improve neighborhoods and achieve success your way. And you’ll be glad you didn’t wait to become perfect before beginning your journey.

The Pro’s and Con’s of Proposed Principal Reduction Program

In another attempt to fix the ailing housing market, the White House and Congressional Democrats are touting the benefits of a plan under which Fannie Mae and Freddie Mac would adopt a principal reduction program. But one man is questioning the wisdom of this approach. As we weigh the value of this proposal, we examine this man’s objections, because Ed DeMarco is acting director of the Federal Housing Finance Agency, and his opinion matters.

For some time the White House and Democrats in Congress have been urging the adoption of this approach insisting that it will save billions and get the market moving again.  DeMarco has stood his ground.  But he may be wavering.

Writing in Marketwatch on April 10, Steve Goldstein summarized DeMarco’s objections.

It’s costly. Although the Obama Administration claims it will save Freddie and Fannie $1.7 billion but that comes at a significant cost. The Treasury Department would pay out $3.8 billion in incentives for the principal reductions, meaning that taxpayers would foot at $2.1 billion bill. Some who have paid their mortgages on time, and have seen the value of their properties fall because of errant neighbors, may be reluctant to pay additional taxes to keep those neighbors in their homes.

It’s only a band-aid – and a small one at that. This program would help about 691,000 borrowers – out of about 11 million underwater homeowners.

We should use the programs that are already in place such as interest rate reduction and extending the terms of the mortgage instead of scattering our fire.

How this plays out, remains to be seen.

One question we might ask is why are so many government programs aimed at fixing the housing crisis failing so miserably?

Another question: do the politicians just want to look as if they are actually trying to fix the problem in an election year? Or are they really trying to fix the root causes, help underwater homeowners get back on their feet so they can responsibly pay what they owe, stabilize housing prices, and revitalize communities?

Let us know your thoughts on these issues.

Redskins Draft Needs

Now that it is virtually certain that the Redskins will take Heisman Trophy winner Robert Griffin III with their second round draft pick, the question remains what needs will they try to fulfill in the later rounds.  

The Skins used free agency to sign wide receivers Pierre Garcon and Josh Morgan and they used the franchise tag to retain tight end Fred Davis.  So there are less needs for those positions.  Instead they need to shore up the offensive line.  

Filling Holes on the Offensive Line

Options at tackle in the third-round range figure to include Oklahoma’s Donald Stephenson, California’s Mitchell Schwartz, Iowa State’s Kelechi Osemele and Jeff Allen of Illinois.

Another lineman on the Redskins’ radar seems to be Virginia Tech’s Jaymes Brooks, a mid- to late-round prospect who played guard in the Hokies’ zone-blocking scheme but is believed to have the ability also to play center. 

Picking up Safeties and Cornerbacks

On the defensive side of the ball, the Skins need to be stronger at the safety and cornerback positions.  The team, according to a person with knowledge of the situation, has had contact with Syracuse safety Phillip Thomas, a projected mid-round player. Thomas last season intercepted six passes, which ranked sixth nationally.

Other safeties expected to be available in the third through fifth rounds include Antonio Allen of South Carolina, Michigan State’s Trenton Robinson, Aaron Henry of Wisconsin and Janzen Jackson of McNeese State.

Talented corners are likely to be available for the Redskins, who have a third-round pick, two fourth-rounders, a fifth, a sixth and a seventh. But the question for a team that also has needs at other positions is how long can they afford to wait before taking one.

One third- or fourth-round option could be Arizona State’s Omar Bolden. He established himself as one of college football’s top corners in 2010 after he earned all-Pacific-12 Conference first-team honors. He missed last season with a torn ACL.

Bolden, fully recovered, clocked a 4.51-second 40-yard dash at his school’s pro day last month and possesses the talent of a higher-round pick. But because of his injury history, he isn’t expected to hear his name called until the middle of the draft.

Oklahoma’s Jamell Fleming, Furman’s Ryan Steed, West Virginia’s Keith Tandy, Iowa State’s Leonard Johnson and Texas A&M’s Coryell Judie also lead a group of cornerbacks projected for selection in the middle rounds.

It should be an exciting draft and hopefully these changes can help end the Redskins woeful record under coach Mike Shanahan. 

Why the French Election Matters in the US

As the french go to the polls today for the first round of voting in their presidential election it is fair to say that not many Americans are paying attention.  We ignore what happens in the Gallic state at our peril however.  There's a great piece this weekend in the Washington Post about how the french election could affect the world economy:  http://tinyurl.com/7sfdyxq


Basically if the front-runner, Francois Hollande, wins then France may try to renegotiate the the Eurozone treaty.  In fact, there are major fears that the financial markets will react negatively to the fact of him getting elected.  This is because Germany may lose its partner in making sure that Greece, Italy, and Spain maintain fiscal discipline and avoid default.  We have seen the ripple effect of the Greek's flirting with default throughout the world economy and it has not been positive.  Let's hope that if Hollande is elected he approaches Eurozone questions with deliberation and caution. 

Thomas Jefferson's 10 Rules for Living

Never put off till tomorrow what you can do to-day.

Never trouble another for what you can do yourself.

Never spend your money before you have it.

Never buy what you do not want, because it is cheap; it will be dear to you.

Pride costs us more than hunger, thirst and cold.

We never repent of having eaten too little.

Nothing is troublesome that we do willingly.

How much pain have cost us the evils which have never happened.

Take things always by their smooth handle.

When angry, count ten, before you speak; if very angry, an hundred.

Metro to Boost Fares Up To 15% in July

In case $4 gas wasn't enough for you, the Metro Finance Committee has voted to increase fares by as much as 15% beginning on July 1st:  http://tinyurl.com/c4v3qpl


The largest fare is increasing from $5 one way to a whopping $5.75.  Many of these people also pay for parking which will go up 25 cents a day adding $1.75 to their daily commute. 


The changes are meant to simplify the number of types of fares and help close the $103 million budget deficit.  However, many riders are left wondering whether they are paying more for deficient service. 


Many escalators are broken more often than they are working, trains can be more packed than the Tokyo subway, and repeated mechanical failures and track work snarl traffic. 


Hopefully, Metro will look at ways to reduce their budget and improve service without causing further strain on the wallets of their riders.  

The Nationals Are in First Place???

It's very early in the season but the Nationals are currently atop the National League East with a 7-3 record.  With their $81 million payroll they are beating the Phillies who are loaded with stars and spend $175 million annually.

What's going on?  There are a couple of factors:

1) Phenom pitcher Stephen Strasburg is healthy and pitching well.  He's 1-0 this year with 14 strikeouts and a 0.69 Earned Run Average (ERA).
2)  Manager Davey Johnson has been able to institute his system in the organization since taking over for Jim Riggleman midway through the season.
3)  The whole rotation is pitching great with a combined ERA of 1.99 - Ross Detwiler and Jordan Zimmerman are pitching really strong.
4)  Adam LaRoche, Ian Desmond, and Jayson Werth all have batting averages above .340.
5)  Most importantly they seem to believe in themselves and be having fun.

Let's hope they have a better than .500 winning percentage for the first time and bring some excitement to DC baseball!