How to sell your car

There will always come a time when you need a new car.  Whether it's a replacement for a broken car or an upgrade to your current vehicle, selling your car is a very important part of the process.  I have sold 3 vehicles, and traded in 1 vehicle in my lifetime.  Below are some lessons I have learned through this process.

There are several ways of parting with your used car.  You can trade the vehicle in with your dealer when you purchase your new vehicle, you can have the vehicle sold by a 3rd party, or you can sell the vehicle yourself.

Trade-in.  The benefits of trading in your vehicle is there is no hassle.  There is minimal addition paperwork you have to fill out, and you can drive in with your old car and drive out with your new.  Unfortunately, you pay dearly for this hassle free convenience.  I sold my Porsche for $20,000 this past July.  When I initially took my car to the dealer as a trade-in, they were only willing to offer me $13,000. 

Consignment.  There are many boutique dealerships and services willing to sell your car on consignment.  This could be a better way to go for those who are interested in getting more out of their car but dislike the interaction and the hassle of selling the vehicle yourself.  Many consignment partners also offer loans on site, so this is much more convenient for the prospective seller -- and the result of that is a higher close rate.  The seller of the vehicle is taking on all the risk during this process.  The seller is still making the monthly payments, keeping the insurance up to date, as well as any expenses associated with advertising the car.  From my experience, most consignment locations charge you both a fixed and variable cost to selling your car.  The fixed cost (usually around $200-$500 upfront) covers their cost of detailing the vehicle, as well as their advertising costs.  On top of that, they will charge a variable cost as their profit.  Since the dealer themselves do not carry the cost of the vehicle not being sold, they are willing list the vehicle at a high price to maximize their profit.  I tried to sell my Honda S2000 on consignment initially, and was looking to get $24,000 from the sale.  The consignment dealer I worked with tried to charge $28,000 for my car, and the car never sold.  On top of that, I eventually ended up posting on Craigslist.org and selling it myself.  When I went with the buyer to pick up the car, the sales manager was trying to talk him out of buying the car from me telling him there are better deals out there -- pretty sleazy.

Selling the car yourself.  This is probably the best bet for the individual looking to maximize their sale price.  There are many paid services where you can list your vehicles up for sale.  My recommendation is to go with the tried and true, Craigslist.org.  There is enough potential buyers that visit Craigslist on a daily basis that you should not need to go elsewhere.  In addition, you can immediately see what the average price your vehicle may fetch in your geographic region.  I always recommend dealing with a local buyer.

First of all, make sure you clean the car.  First impression is important.  You wouldn't go on a first date dressed in a tank top and flip flops, you probably shouldn't show your car to a prospective buyer covered in gunk. Pay some money to have your vehicle professionally detailed (~$100) or spend the time to do it yourself.  Since you are planning to sell the vehicle quickly, this is probably the only cleaning you will need.

Make your ad short, and to the point.  Make sure to include important information like the options you may have on the car, as well as the miles the car has and the year and model.  Try to use short bullet points. You don't need to write a huge paragraph about why the potential buyer should buy the car -- the buyer cares more about your car than your selling skills.

Don't offer test drives.  I welcome individuals who come and check out the car, and I often take prospective buyers on rides, but I never let them test drive the car.  Because all of my previous cars are manual transmission, there are a lot of things that could go wrong if an inexperience driver gets their hands on the car.  Individuals who are serious about buying your car will appreciate it as well because it shows you take care of the car.  I only let the seller drive the car when they have a deposit in hand.

Have all documents ready.  I keep all of my maintenance records in a organized packet, and show them to prospective sellers when they ask for it.  Since all of my vehicles are dealer maintained, they can call the dealership if they have any questions about the vehicle.  Some buyers will ask for a local mechanic to check out the car -- this is normal.  As the seller, I would not pay for that.  This is something the buyer should pay for.  You don't want to be stuck in a situation with a buyer who's not serious.

Make sure the smog is up to date.  For a vehicle that's over 4 years old, the vehicle has to have passed smog in the last 90 days prior to sale.  This is a cost you will have to pay for out of pocket before you sell the car.  This usually cost ~$60.

Don't reserve a car for anyone.  Although I think of myself as a pretty upstanding guy, most people you will associate with during this process may be from the bottom of the barrel.  I had an individual come check out the car, shook my hand to tell me we had a deal upon an agreed price, have me drive down (over an hour) to meet him, then try to nickle and dime me and get a lower price. Don't deal with the individuals who are looking for a bargain -- they are not really serious buyers and can probably not afford your car to begin with.  In addition, they are just looking for the cheapest they can find, and my guess is if you really took good care of your car, they are not the ones for you.  Be accommodating, but make sure the sellers work around your schedule.  If the seller really loves your car at the price, he/she will work with you to make the deal happen.

Cash is king.  Cashier checks aren't what they used to be.  There are so many stories about fake checks that I would not recommend taking a cashier's check in exchange for the keys to your car.  My recommendation is to go with the buyer to his/her bank and just have them withdrawal the money and give it to you.  This will save them some money, and you will also be assured that the deal is legitimate. 

Be patient.  Eventually you will find that right buyer.  I found the right buyer for the car that came several time on their own to see the car in person (while I was away on business).  When he finally reached out to me, he was ready to buy the car.

My online banking experience

There was a big push back in the early 2004 for banks to go online.  These online only banks offered higher interest rates to attract customers in return for limited branch access and customer service.  Some of these "online only" banks offered rates for their money market and savings account that rivaled the CD rates more traditional banks offered.  Attracted by these high rates, I decided to try out their services.

ING Direct was the first bank I tried, and what to me is still the benchmark that other online only banks are measured against.  The sign up is a very simple process, and they have based on my own experience the fastest bank-to-bank transfers.  Funds transferred usually arrive in 3 days.  There isn't this limbo period where I'm sure the banks are earning interest on my hard earned money.  What made them successful is that they left most of the paperwork traditional banks required behind.  Everything can be done online -- including getting your 1040 tax forms as well as your online statements.  The log in process is very simple and straight forward, and overall I have had great experience with them.

Emigrant Direct was compared to ING Direct probably one of the worst online only banks I have used.  Back in 2004-5, they were one of the few banks offering 5% APR for their savings account.  Because of this, I was willing to try them out.  Although their initial sign up was electronic, I had to fill out quite a bit of paperwork before they opened my account.  In addition, during this period, the funds I initially transferred was "lost".  In more detail, the funds were already withdrawn from my checking account, but it did not show up on the Emigrant Direct account for weeks.  This to me was an example of a traditional bank who tried to play in the online market before they really understood it.  Many of their process and methods were just very arcane, I felt like I was trying to bank remotely with a branch in New York.  I very quickly canceled my account and had my funds returned. I did get a free hat in the process from their "welcome pack".

HSBC Direct is a pretty decent online bank that offers a variety of services.  They were the only online bank that offered me an ATM card.  In addition, they have very secure security features.  The log in requires both an user name, a log in password, as well as a click in password on a keypad.  There were some rough edges in the beginning but they very quickly worked out the bugs.  Lastly, they have physical branches in Asia as well as Canada (so in theory I can withdrawal money internationally).  So why did I recently close my account with them?  Due to my recent home purchase, I no longer needed to allocate my investments across various banks to meet the FDIC requirements.  Because of this, I decided to consolidate.  A couple marks went against HSBC Direct that led me to choose ING Direct over them.  The first is they take a very long time to transfer any funds to and from my main bank, compared to ING Direct, HSBC Direct usually takes up to a week to transfer my funds.  This is a lot of time where I don't earn interest.  In addition, their site is somewhat hard to navigate.  I usually like to do my taxes early, and HSBC Direct is one of the few accounts I have where for the life of me I can't find a way to get a copy of my 1040 electronically.  The bank itself likes to mail the hard copy to me in April.  I end up having to guess the interest and for my last few tax returns ended up getting dinged because I miscalculated.  

E*trade is probably the company that started it all with their online stock brokerage back in the dot com boom.  I used them in the past back in 2001 for my IRA but ended up canceling the account.  I did not understand investments at the time and would freak out every time my investments would decline.  Long story short, I never quite gotten past that trauma to really make full use of their banking features.  The setup from what I remember was fairly user friendly and easy to use. 

Tips for finding the right car

Now that I'm on my 4th car (2 new, 2 used), I have learned a lot as a consumer about both selling and buying used cars.  In this post I will be discussing tips about finding that next car.  This should help you avoid some of the difficulties I encountered.

1. Always do your research.  Whether you're buying a new car or used, always make sure to do your research.  Understand exactly what options came with the car. There are many online resources for you to find what packages was standard and which of those options cost additional.  These online resources include edmunds.com and kbb.com.  This is especially important for used car purchases.  If possible, go to an used car dealership with a similar model vehicle so you can visually see all of the options.  Because used cars come with various packages, you want to understand what you are paying for.  For example, when I purchase my 911, I did not understand the options list fully, and I may have overpaid for a vehicle that I assumed had options where it did not.
2. Wait for the car you want.  This is true for both new and used car purchases.  There are many cars out there, and you should not settle.  Make sure the car you have decided to purchase has all the options you are looking for.  If not, be willing to "wait it out" until the right one comes along.  Worst case scenario, you end up with a newer model car.  If you are willing to compromise, make sure these are items you will not regret later.  When I purchase my car, I thought I could put up with halogen headlights and black wheels, even though I really wanted xenon headlights and stock turbo wheels.  Ultimately this resulted in me spending several thousand more in addition to the purchase price of my car later on to make those adjustments.  These adjustments do not add any value when you finally sell the car. 
3. Learn the market value of the car.  Kelly Blue Book and Edmunds are great resources to find the benchmark price for the vehicle, but the price of the vehicle is dependent as much on the car itself as it does supply and demand.  Craigslist.org is also a great resource to find market value, but take it with a grain of salt.  Since it is a free service, some individuals on Craigslist tend to overprice their vehicles.  If the economy is poor and there is very little demand for a certain vehicle, but a lot of supply, the price will go down, and vice-versa.  Sports cars and luxury items are affected by economic and seasonal trends even more than bread and butter items.  For example, in this economy, vehicles are selling private party for at or near trade in value (and sometimes even below).  Sports cars also sell cheaper in the winter, as there are more supply (many areas of the country are covered in snow) than demand (only a few areas can you drive your car year round).
4. Work with an auto broker, but beware of the risks.  Auto broker and individuals with a dealer license can go to auto auctions on your behalf and buy vehicles for you at or many times below dealer trade in value.  This secondary market is where all of the dealers go to both buy more vehicles that are "hot" in their area as well as sell their excess used car inventory.  The brokers charge vary from $500 to a $1,000 for their services.  Understand that the vehicles purchased do not contain any warranty (besides the factory).  This is a better route to go than possibly going private party because from what I heard they have to disclose all work done to the vehicle.  As we all know, Carfax does not always reveal all repairs.  Many private party sellers take advantage of that and "fail" to disclose certain items during the sale.  But also understand, at an auto auction, you do not get the opportunity to have a mechanic review the car before you choose to buy.  Everything is sold as-is.  Many dealerships then refurbish the car prior to sale.  I purchased my last car from an auto broker, and the vehicle was amazing.  There were a few items on the car that were questionable, but it comes with buying the car at the cheap price. 
   
5. Buyers beware.  New or used, when you buy the vehicle and sign on the dotted line, the vehicle, along with any skeletons it may have in its closet, is yours.  

Be sure you do your research, have a good mechanic or a certified dealership of the make review the car to make sure it's in good working order. Following these steps, you will end up with a vehicle you love, and should last you for some time to come.

Guide to Buying a Home

Buying a home is one of the biggest personal and financial decisions of your life. It’s important you take the time to research the type of home and the type of loan that are right for you and your family. When buying a home, there are numerous factors to consider, including location, school district, price, layout, and Realtor.

You may have heard the saying location, location, location. When it comes to real estate, location is one of the most important factors. Location will determine how much your home appreciates in price, how conveniently it is located, how safe (or dangerous) it is to live there, and how easy it may be to rent. A good location can lead to appreciation in your home price, even when the general real estate market is declining.

Another factor to consider is the school district the home is part of. Good school districts help a home appreciate significantly and are also important if you have children who will be attending the schools. A good school can add a significant premium to the price of a home. If schools are not important to you, look in areas where schools may not influence the home price as much. In those areas, you can get much more home for your money.

Price is of the utmost importance when purchasing a home. It is important to buy a home you can afford and one that can accommodate your financial commitments. When considering home price, remember to factor in property taxes, home owner association fees, and maintenance costs.

When looking at for a home, think about how you will be living in the home and what you will be using it for. In addition to the number of bedrooms and bathrooms, is it important to have an open floor plan so you can entertain guests? Will you have visitors staying over often and thus have a need for a bedroom with its own full bathroom? Are there crucial aspects of a home such as a kitchen island, laundry room, large backyard, playroom for the kids, or swimming pool that you must have? Think through what you need and what is important in a home before you begin shopping for a house.

Selecting a Realtor to work with is also extremely important when buying your home. It is important to select a Realtor you’re comfortable with, someone who understands your needs, and someone who is knowledgeable about the home buying process and the area in which you’re looking to buy.

Most importantly, although embarking on one of the biggest commitments of your life, enjoy the process of shopping for and buying your new home.

Why you should refinance

Why should a homeowner refinance? One of the best reasons for refinancing is to lock yourself into a lower rate than you anticipate the market will bear in the future, resulting in lower monthly payments. In addition, during the refinance, you can work with your lending institution and/or mortgage broker to change the term of your mortgage. If your home value has increased, refinancing your existing mortgage will allow you to extract some of the equity in your home.

There are several factors you should consider when you are refinancing your mortgage.

•     Am I able to afford the new payments?
•     Would I like to remove some equity from my home?
•     Are interest rates going to drop/climb in the near future?
•     How long will I live there?
  

When you look into refinancing your mortgage, you should keep in mind that the total cost of refinancing often runs between 3 percent and 6 percent of the total amount borrowed, and it may take several years to offset these costs even if you lock in a lower interest rate.

If you expect to move soon, the lower interest rate may not offset the costs of processing the new loan. Therefore, a borrower should take into consideration how long he/she will be living in their home after refinancing. In addition, it's important to consider the tax implications of refinancing. The deductibility of interest paid up front as "points" as well as less interest to deduct from your taxes should all play into your considerations.

Things all renters need to know

I have been a renter for a good portion of my life after college (8 years and counting) and a landlord for about 1 year.

Unfortunately, I have had more than my share of bad landlords as well as bad property management.  Here are some items that any renter should watch out for, and questions any renter should ask their landlord before signing on the dotted line.

1. Do your own research about the neighborhood.  Make a couple visits to the area in the evening.  Does the neighborhood look safe?  How is the security of the apartment complex.  If you hear a lot of loud music and or cars with chrome wheels, I'd probably start looking elsewhere.  
2. How are the other tenants like?  This will require you to either talk to a former tenant and/or walk the hallways on the weekends or evenings.  For example, if you find out that a family of 5 live in a junior 1 bedroom down the hall, this may not be the best place for you to reside.  
3. How is the condition of the building?  Is the building well maintained?  If there are shingles missing or falling off that have not been repaired, or locks missing from the security gate, this may be an indication that the management company is not on the ball.
4. Research the management company and apartment complex online.  With our great technology and information revolution, you can pretty much find anything online.  People who are happy with where they are living may not always write about it online, but people who are fed up with the management company definitely would.  Start by doing a general search on Google.com, ApartmentRatings.com, and/or Yelp.com.  Since disgruntled tenants are more likely to post their complaints, take the reviews with a grain of salt.  But they are valuable, nevertheless. 
5. Understand all the costs.  What costs are paid by the owner of the complex, and what costs are shared by the tenants?  Usually tenants will pay for electricity and gas, while the management company will pay for water and garbage.  There are unique situations where tenants share the water bill.  This can add up as most management companies do not have individual meters for water, so they pro-rate the charge among the tenants based on "headcount".  This can be very inaccurate.  In addition, there is no incentive for the management company to conserve water -- they may leave the sprinklers on for an obscene amount of time and let the water waste away into the drain.  A unit that is advertised at $1250/month may end up costing  you $1350/month from these additional expenses.  Considering this, you may just decide to look for a better complex at that higher price point.
6. Make sure to document everything.  Sadly, I believe one of the ways unscrupulous management companies make money is by deducting obscene charges from your security deposit after you move out.  They have no incentive to be "nice" to you since you are no longer their tenant.  Within the first week of move-in, whether they provide you a check list or not, make sure to document every little thing that is wrong with the complex, and either email and/or mail it to them certified.  The reason for this is you want to make sure you have everything documented and time stamped in case there are any discrepancies later. I have personally moved into apartments that were never cleaned, or with broken and worn furnishings, and been blamed during move out that it was my fault.  My guess is that they probably blamed the previous tenant as well, took their money, and just didn't bother fixing it. 
7. Move out inspection.  Make sure to go over the move-out inspection with the manager in detail, and ask for copies of any documentation or checklist the manager may have used during the process.  If they give you a cost estimate, make sure to get it in writing.  I had countless times during the move-out inspection where the manager will tell me that everything is fine, and they will only charge $100 for cleaning, then when I receive my security deposit find out they charged me $600 for a bunch of additional fixes that were never documented in the managers move out inspection.
8. Know your rights.  The management company is required to return the balance of your security deposit within 30 days of you vacating the property.  In addition, they have to provide you detailed, 3rd party itemized receipts of all the work they have deducted from your security deposit to bring your rental unit up to par.  I had rented from a management company before where they deducted large expenses from my security deposit without proper itemized receipts, when pushed, it turns out they decided to remodel my unit and never actually cleaned or fixed any items. I ended up getting most of my security deposit back.

At the end of the day, the management company only really cares about one thing -- profits.  Make sure you take the proper steps to protect yourself as well.

Electronic Check Ledger

It has been some time since I have used my account ledger to keep track of the money in my checking account.

Some of you may not even know what it is -- it's that paper book with a bunch of lines on it that usually comes with the checks from the bank.  Unfortunately, not keeping track of your credits and debts may cause you to accidentally overdraw and write checks you may not have enough money in the account for.  This is especially important if you have multiple accounts where you transfer money to and from.

I have come up with a solution that helps me keep track of both my finances as well as keeps a history of my historical spending.  I can even do some minor forecasting to see where potential bottlenecks/shortfall could be.  I now keep track of my finances with electronically on Excel.   I completely understand there are numerous software out there that can and will do the same thing (e.g. Quicken, Quickbooks, etc), but nothing is better than free.

I essentially created an Excel worksheet that contains the formula "=B531-C531+D530" for the Balance column.  This simple formula takes any credits, subtracts the debits from it, and then add it to the previous balance.  This method has worked very effectively for me, especially keeping track of both checks I have written, ATM withdrawals, electronic transfers, and payments.  I can also very quickly see if I need to transfer money from my investment account back to my checking account ahead of time if there is a potential shortfall.

Sometimes I do get overzealous with my forecasting and cut it close several times, but overall it's been a great tool.

Divino Restaurant

After my gf introduced me to the Yelp page, we were curious why the reviews vary so greatly. We decided to check out the restaurant.  This is a small quaint Italian restaurant located in the downtown area of Burlingame on the intersection of El Camino Real and Ralston.  I have always been a fan of Italian food and loved trying new places.

We ordered the meatball appetizer, spaghetti con vongole, gnocchi, cannoli, and the puff pastry apple tart.

The dipping sauce (olive oil infused with parsley, capers, anchovies) served with the bread was amazing, as well as the meatball appetizer.  I was inspired to make the dipping sauce on my own afterwards.  I proceeded to Safeway across the street and bought a bunch of each of the herbs I mentioned.  I also added fresh garlic to the mix.  When I returned to my apartment, I infused all of the ingredients into my olive oil.  The weather was relatively warm the next few days and although the oil was very fragrant, I noticed it made a "pop" sound every time I opened it.  I was curious what could be producing the carbonation.  I figured out on the 4th day there were white residues on the bottom of the bottle.  Apparently, even items completely infused in oil can spoil.  This will be the last time I try to infuse anything.

The pastas were very authentic and therefore under-seasoned to American palates. The gnocchi was also very authentic, so on the more mushy side. This is solely based on my experiences vacationing in Italy (Sicily and Tuscany). I would recommend ordering a secondi and sharing or skipping the pasta course if you are looking for flavor.

The desserts were amazing--the cannoli was a must have. The appetizer and desserts definitely gave this restaurant a 3 star alone out of 5.

If you are looking more for a sure bet, I would recommend Stella Alpina Osteria in downtown Burlingame.  The cuisine of Stella Alpina originate from Northern Italy, and I believe it suits the American palate much more.  Their food overall is much more flavorful.

Leaving the ghetto, hello Burlingame!

I honestly have never been so happy in my life before (never been so happy to write out checks for my deposit).  Now that our new landlord accepted us, we are finally on our way out of the ghetto -- hello downtown Burlingame!  We are one of the few duplexes in the neighborhood mainly populated with expensive homes.

In order to give ourselves more time, we decided to have our lease overlap for approximately 2 weeks.  This should be plenty for us to pack, move, and do some minor cleaning.  Overall, this has been quite an experience, and I have learned a lot about my perceived ability of living in a bad neighborhood.

I probably would have done research into moving companies and wrote about that experience, but I am fortunate.  Because I have been very frugal and never really into furniture, the only large items I need help moving would be my dining table, bed frame, mattress, and TV.  I have friends willing to help, and a large truck I can borrow from my parents.  That should pretty much cover the move.  If you're not as fortunate as I am, you can always look up local movers here.

What I did not realize is that although I grew up very poor, the areas I lived (besides the first 6 month of my life in the United States) has followed a very similar formula.  My parents found the most affordable housing they could in the best areas to raise me.  This usually resulted in me living in very run down and poorly maintained apartments (then home) but in usually very upscale areas.  My parents had understood something that because of this experience I only recently have learned to appreciate.

It's good to be back close to friends, and near a vibrant downtown and close to parks.  My commute will be a bit longer, but it's a small price to pay.  I hope they will eventually renovate this area of Belmont -- but I wouldn't hold my breath.

Finally leaving the ghetto (Oxford Manor) and hello Burlingame!

Landmark Education -- the scoop

About almost a year ago, I was convinced by a friend to take the entry level Landmark Education course, The Forum.  Landmark Education claims they can make miracles happen. Here is my experience with the course.

Quite often the Landmark Forum and the seminars they teach are very repetitive.  The main message that was useful to me, and frequently repeated in both the Forum and the free follow up seminar, can be summarized here:

1. What you perceive may not be what actually happened 
2. Keep your word
3. Give up always being right
   
4. What happened in your past should not dictate your future
5. Don't be judgmental -- actually hear what people are saying
   
6. Learn to let go of the skeletons in your closet.

All of these teachings are very straight forward and very Dr. Phil-ish.  The unique aspect of the seminar is the way they teach these ideas.  The seminar is for 3.5 days straight, from 8am to 10+pm.  Students in this course are given very minimal breaks and asked to stay in their seats during this whole period.  During the session, a seminar leader will ask individuals to share their traumatic experiences, as well as offer self directed solutions by asking focused questions.  They request that you let go of all of your judgments and accept the seminar leaders teaching at face value without question, no matter how controversial it may be at times. 

First of all, be aware that there are numerous self help books, seminar, and classes just like this one, but I believe part of the reason many believe this is a cult is mainly due to the caliber of individuals they retain after the initial Forum. This may be because of the relatively cheap entry price ($400 for the forum vs. $1,000+ for Tony Robbins), or the individuals that are solicited.

Many who attend have just been through a traumatic moment in their life: a divorce, death of a loved one, drug habit, cheating partner, loss of a job, events that make them very susceptible to unconventional teachings.  Personally, I would not call these individuals who are fanatical about Landmark a cult.  Moreover, it's an emotional support group for individuals who need that base of support and the feeling of belonging.  One of my friend joked that Landmark is "therapy on the cheap" -- there is some truth to that.  This core group tends to stick together.  Some are asking for attention, while others want to share their pain.  Unfortunately, none of them are actually taking the steps to make that difference.  They take up a large amount of time from the overall course and use the time as their personal "soap box".

These individuals also tend to lack the willpower to resist their uncommon sales tactic.  The only other place I have seen this type of sales tactic is honestly at an used car lot or for a timeshare.  Volunteers are overzealous in encouraging people to participate in its courses.  Many times criticizing the individual who do not wish to pay to participate in the more advanced courses.  In addition, they request their participants to reach out to their friends and family and persistently solicit new members.  Lastly, even in the Forum itself, almost a quarter of each day is dedicated to them "up selling" their advanced courses.

Let's be honest, as much as Landmark wishes to make themselves seem like they are "for the good of the people", they are at the end of the day a for profit organization.  Many volunteers working on behalf of the company claim that all of the money made is used to develop new teaching and as course scholarships for the less fortunate members.  But no one I have talked to when pushed have actually ever seen their P&L and/or Balance Sheet.  As far as I'm concerned, someone is making a lot of money.  Unless they change to a non-profit, there will always be that suspension for many of us that the only goal Landmark has is their bottom line.

This is not to say my time there was wasted.  I had received many valuable lessons both living vicariously through others who shared their experiences as well as through select teachings I have incorporated into my daily life.  I believe Landmark has in it's own way made me a better individual, and people around me can see that change for the better.  Unfortunately, for many of the others, they end up rejecting the teaching completely due to their frustration with the unconventional teaching method, or become so integrated with Landmark that they exhibit both the good and the bad.

Following without thinking thoroughly first what it means can be dangerous in any median (as we have seen throughout history).  I always believed that one should think critically of every teaching, dissect what may be useful, and harmful, for the individual, and only then move forward.  My advice is, if you're interested, do check out Landmark for yourself, but be sure you have a strong mind and will.  Be prepared to say, "no!"

How to build good credit -- part 1

I have always felt fortunate to have a good credit score.  Having a good credit score didn't come easy though. I am in no way a financial writer or a CPA/CFA... whatever.  But I can tell you what I did to help myself get there.

1. Start early.  I got my first credit card at the young age of 18 years old -- and did not have my parents co-sign for me.  The student credit card I received was the LL Bean card from MBNA, with only a $250 credit limit. I went through various other credit cards through college but always made sure to cancel the credit cards I did not use and kept the LL Bean card that I still use today (although MBNA is now owned by the inferior Bank of America).  Don't open too many credit cards, that could actually negatively affect your credit score. 
2. Use often.  I used the credit card for every single purchase I could, especially items I would have normally paid in cash and/or check.  If you don't use your credit card, it's hard to build up a credit history.
3. Pay off the balance in full.  I don't buy the theory that you need to keep a balance on ANY of your credit cards to build credit.  I believe demonstrating your ability to be fiscally responsible by paying off your balance every month is more important.  In addition, you won't really worry about what APR your credit card has assigned you -- cause you will never have to utilize it.  Think of your credit card more as a charge card or a check, don't spend more than you have.
4. It's a marathon, not a sprint.  Building a good credit is a life long process, and requires long term planning and fiscal responsibility.  You can't start today and get a stellar credit score tomorrow.  Be good!

By following these four major steps, you could be on your way to successfully building a good credit score. 

There are other tricks of the trade that I have followed, and I will add to this topic as time goes by.

Rental Update!

So it looks like we're one step closer to possibly being a very long term resident of the residential side of downtown Burlingame.  The other side of the tracks.

It's amazing how much one takes for granted when living in a safe neighborhood.  In addition, I do miss being able to just walk down to Nectar for a glass of wine, and a beer for the dog (although he's now rationed to only 1/4 of a beer cause he can't hold his liquor like a real man).

We just heard back from our prospective future landlord that there were several applicants, but after running my credit check, I came back as a "very strong" candidate.  I'm glad I spent so much effort (since 18) building up my credit score.  More on how to build your credit score in later posts.

Now they are just going to do a final employment verification, and if all goes well,  I'll be out of the hood, and back into the real world where there's normal people.

Paintball -- no longer just for hurting people

Ok, I admit it.  I was a big fan of paintballing when I was in high school.  Where else can you let out your adolescent and teenage anger on society freely without remorse and/or retribution.

Paintball is actually a very expensive sport.  Paintballs run about $50 - $80 per game.  As a poor high school student, I even for a short period joined our local National Guard Explorer program so I can "paintball" with the Army's MILES gear for "free".  MILES is a laser tag system designed to fit over existing Army armament.  An individual would fire blanks at a target with, for example, their M-16 assault rifle, and the repercussion from the blank will initiate a laser beam that will shoot at your opponent.  If the vest of sensors that one wears gets set off by the laser, the person is "hit".

In fact, I was so into the "sport" of paintball I went as far as spending initially $300, but ultimately almost $1,000/each on high end paint markers, the Autococker and Automag.  Paintball markers are a lot like sports cars, there are endless mods you can make to it.  They even created red dot sites specifically for the markers since most fields require goggles and face protection (and highly recommended).  From a couple hundred for a stainless steel barrel to regulators (to control the expansion of the CO2) and most recently Nitrogen bottles  -- they add up quickly.

I find out afterwards from my fellow high school students that a real gun was cheaper -- then again, I don't see the point of a real gun cause you can't really legally shoot someone with it and still have dinner with them later that evening.

As some of you may know, the paintball itself comes in many different neon colors.  These group of guys below came up with a very creative use of it.  A lot of planning went into it and it looks great.  Watch the video:

Subprime Crisis -- Bird and Fortune

As the financial crisis begun, two brilliant British actors joined forces and started this satire of the American investment banker.

Although throughout the whole skit these two individuals are mocking said investment banker, there is a lot of truth in what they are saying. From my experience right out of college, investment banking is part analytics, and mostly voodoo magic and "educated" guesswork. Ultimately, they are high paid pitchmen figuring out new venues for the American investor to spend their hard earned money. Paraphrasing one of my favorite quotes from the movie Wall Street -- they (investment bankers) make money out of nothing.

In essence, American financial institutions did something similar to this with the junk bond market in the 1980s. Take very risky, and sometimes unmarketable investments, repackage them into larger investment vehicles and then give them an attractive name.

History really repeats itself, huh?


"John Bird and John Fortune (the Long Johns) brilliantly, and accurately, describing the mindset of the investment banking community in this satirical interview."

The CIA and ex-bankers

After reading the article below, it got me thinking about my own experiences with them back in 2006.

The CIA's interest in financial professionals is not new.  In fact, back in 2006, when I was looking for an new opportunity after working as a senior financial analyst (for a Fortune 100 company), I was soft recruited for a position that I ultimately did not pursue.

Why would the CIA be interested in financial professionals?  The very reason that even terrorist organizations need to use banks, and frequently conduct money laundering.  The hope is with individuals versed in banking, they can track these illegal transactions.  Ironically, most of the items that become illegal items start out as legitimate components, so one of the key skill set the analyst needs is to understand and track where those items are ultimately going financially.

Because of this, my guess is that they will probably not be soliciting any sales professional or stock brokers, but more so the analysts that worked very closely and understands the many banking instruments that an individual may use to save and hide their money.

The CIA is likely making a bigger push to recruit for these roles now as with the onset of massive layoffs in the financial sector, it's not likely that individuals will find a competing role.  For example, when I was being interviewed, they offered individuals like myself $60,000/year starting.  This is a far cry from what I have been paid previously and what I was paid when I was a banker (post bonus).  They base quite a bit of their salary on your formal qualifications, such as your education and degrees.

Each individual I spoke with during my interview seem to have been there on average at least 5 years.  I fully agree with the article that they must have great benefits, cause from my conversations a lot of individuals who join the CIA become "lifers" of the Company.

The downside of working for Langley is that your daily lives and actions are closely monitored.  They do background checks on your spouses and girlfriends, and you also have to gain approval before traveling on vacation overseas.  Especially after the Aldrich Ames incident, I can understand why they would be so careful.  Lastly, they don't give you an offer right away, there is a 6-month background check conducted by I believe the FBI.  So one will interview for a position, wait 6-month going about their business and current job, then all of the sudden be called up for duty.

I am pretty certain that of the former bankers who apply for a position with the Company, many would be well qualified for the role.  However, I don't have a lot of confidence any will pass the lie detector and background checks.  After all, the banking industry itself is a "dirty" business.

********************************************************
CIA seeks laid-off bankers in N.Y. recruitment drive

By Frederick H. Katayama

NEW YORK (Reuters) - Laid off from Wall Street? The CIA wants you -- as long as you can pass a lie detector test and show that you are motivated by service to your country rather than your wallet.

The Central Intelligence Agency has been advertising for recruits and will be holding interviews on June 22 at a secret location in New York.

"Economics, finance and business professionals, if the quest for the bottom line is just not enough for you, the Central Intelligence Agency has a mission like no other," one radio advertisement for the agency says.

"Join CIA's directorate of intelligence and be a part of our global mission as an economic or financial analyst. Make a difference in your career and for your nation," it says.

Ron Patrick, a spokesman for recruitment and retention at the CIA, told Reuters Television the agency had received several hundred resumes so far from applicants ranging from people just out of graduate school to laid-off bankers.

"It's going to be a very different use of their skill set than perhaps they've used on Wall Street," Patrick said.

Recruits will have to pass rigorous background and medical checks, as well as a polygraph, or lie-detector test.

Starting salaries range from around $60,000 for a new graduate to $100,000 for somebody with more experience, and top out at $160,000. Generous benefits are included.

Patrick said the agency would welcome worthy applicants from Wall Street, whose reputation has been tarnished by the financial crisis and revelations of lavish lifestyles and multi-million dollar bonuses at banks blamed for the meltdown.

"Typically the people that come to the CIA want to serve the government, they want to serve their countries. It's a different mindset perhaps than serving a company or serving profit as a bottom line," he said.

"As long as they can make that attitude switch from profit being the motivator to serving their country, I think they'll fit in very well with us."

Rental Solution!

What a great ending to what started as a crazy and crappy week!

My CHASE representative "Shanda" called me this morning to tell me that they have fixed all the errors associated to my mortgage.  They no longer have me in collections for "ghost" payments, and my online balance no longer reflects that I still owe them over $6,000.  The escrow and insurance issue should also be resolved!  Now I can use my online account to pay for my mortgage again!

Next, I was able to negotiate with Michael to release me from my lease at 321 Oxford Way (Oxford Manor) -- I will be leaving that complex in 3 weeks with no penality!  It was a win-win situation as I really did not want to stay in that complex, and the supposed liability of my dog was big enough where MNM Partners would rather allow me to exit my lease early than force me to complete my lease.  I will be reviewing the paperwork with Sammy and hopefully that will be completed soon.

Lastly, my gf and I found this amazing duplex for rent in a very beautiful residential area of downtown Burlingame where the rent is reasonable and they accept my dog (any dog as long as it's trained and friendly -- perfect!).  The area is surrounded by million dollar homes and tree lined street not unlike old Palo Alto.  We'll also be near the tennis courts and local parks.  I'm pretty much ready to sign on the spot and I'm so looking forward to checking out the duplex tomorrow.  I'm really hoping that no one else gets it before me -- but the landlord claims that it's first-come, first-serve, and I'm the first appointment.

I have learned from my experience to never live in a crappy area.  Not worth it.  Especially with apartment living, it's your neighbors that make up most of that living experience.  When your neighbors are unemployed, section 8, and ghetto, the environment just can't get that much better.

I have also learned to appreciate smaller complexes.  These smaller complexes tend to be more closely managed by individual owner/operators.  In addition, they are usually more lax about their rules and regulations, and willing to make exceptions when the situation calls for it.

I'm thinking of starting a small site just so independent owners can post up their listings.  Wouldn't that be wonderful?

How to Survive a Layoff

I saw this great article from Stacy Olivares-Howard that I would like to share:

Proceed with caution!

Each step you take after being laid off can influence your ability to support yourself (and your family). Whether you left on your own terms, or the terms were handed to you, know that your money is your own. You bear the risks and losses, rewards and returns.

Ask yourself 4 questions

1. How do you feel about your company’s future?
2. Who cares more about your savings, you or your ex-firm?
3. How did your 401(k) perform last year?
4. What would you do differently with your 401(k)?

Take these 6 steps
1. Study your severance. Read the fine print of your severance package and compare these with your company’s benefits package. It’s reasonable to ask for time to review the documents before you sign. Better yet, try to negotiate better terms for yourself.
-Tip: Know and care for your severance documents as you would a winning lottery ticket!

2. Figure out your cash flow. Time to re-do your budget, tap all potential income sources and add up your daily, short- and long-term expenses. Will re-financing your home at a lower rate save you extra cash? Can you defer loan payments? Do you have enough insurance?
-Tip: Cash flows can be complex. Check out my website for tools or email me.

3. Stake your claim. Do you pay for car insurance? If a city bus hit you and wrecked your car, would you file a claim with your insurance company? You and your employer paid for unemployment insurance in the event that you had to leave involuntarily. File your claim for unemployment now!
-Tip: Worked in California? Check out http://www.edd.ca.gov.

4. Get rolling. Think about taking your 401(k) with you by rolling it over into an IRA under your control. If you left your 401(k) behind, would you have the same access and options?  Don’t even think about cashing out your 401(k) without first consulting your financial advisor…getting audited by the IRS and owing Uncle Sam can be worse than being unemployed.
-Tip: Your 401(k) is fragile. Roll it over with care.

5. Cover up. Don’t leave yourself exposed. Cover yourself with insurance. How long you are you covered by your employer?Compare the price of insurance under COBRA with what you can buy on your own.
-Tip: Shop insurance life, health and other insurance plans to get the best rates.

6. Learn from Aesop’s fables. As we learned in the Tortoise and the Hare, slow and steady wins the race. Did your stock options leap from $10 to $100 per share, or tank in the other direction? Either way, after leaving your job you still need to know which options are vested/unvested, when these are exercisable or expire, how to access your options online and about restrictions.
-Tip: Manage your expectations and your pace. Get my help to sort out your options.

Tips for First Time Buyers

What is the single most valuable piece of advice you received when you were in the process of buying your home?

Among the great advice in this thread are gems such as:

• Don’t go into debt to furnish your home.
• Get pre-qualified for the mortgage so you know how much you can work with…Then only spend 75% of what you’ve been pre-qualified for.
• Buy the worst house on the best street or neighborhood you can afford.
• Explore the neighborhood. Talk to the neighbors. Ask yourself if this is someplace you could live.
• Take your digital camera with you while touring homes.
• The closing date in the contract is meaningless. Don’t schedule movers or break leases, etc. until the official closing date is set.
• “Make a ridiculously low offer, because you can never negotiate downwards…I made the lowest offer I could bear, which saved us about 10% of the cost of the house.”
• “If you are bidding for a house among other potential buyers, write a one-page letter stating why you would really like to buy the house. The seller of my current home said it swayed his decision (we wrote a cover letter about dreams of raising our daughter with a big backyard).”

I'm on a boat! What happens when you combine Hermes with Wally

I have never been a huge yacht person before.  I frequently get seasick.  Contrary to my mother's belief, making me take sailing classes when I was young did not decrease my susceptibility of getting seasick.  Funny enough, I did learn the different between Port (left) and Starboard (right) side of the boat though.

There was one yacht that caught my eye in the movie "The Island" that after some research I realized was an actual boat.  The price of the boat was a staggering $30M dollars, and only one was made in the world.  This was a 118 ft luxury yacht made completely out of carbon fiber and Kevlar.  The boat is powered by twin turbine engines.  The name: WallyPower 118.  Pictures of this boat was awe inspiring.  The yacht literally looked like a stealth fighter on water.



I heard from a colleague the interior of the vessel is not very well laid out, but come on, even it's toilet seats are carbon fiber!  The design of the exterior is nothing short of breathtaking.  You can see for yourself.  As my girlfriend famously said, "if you had $30M of F U money, you would probably buy it."  I definitely would -- and I'd be on a boat!

Now in an effort to "one up" this masterpiece, Wally and Hermès joined forces to create "WHY" (Wally Hermès Yacht).  I don't even want to contemplate how much this yacht will be.  Basically two of the most famous, and expensive brands got together and decided to create a yacht together.

Wally is known for making ultra luxury and expensive yachts (see the WallyPower 118 above).  Hermès make high end leather goods which includes their Birkin line of handbags that start at $10,000 but can be as much as $200,000 +.

To put it in perspective, imagine trying to make a mansion float.  That's essentially what this new design is -- a mega houseboat.  See for yourself:

Exercising -- the beginning

Throughout my childhood, I spent most of my days watching TV and reading, and not a lot of time outside -- surprise, surprise, that I have always been chunky and sometimes downright obese.

My parents always promoted sports.  I was on the community swim team for most of my childhood, and played sports in high school.  One season of wrestling, 3 years of water polo and 3 years of swim team.  I hated competition/ meets then, and I disliked the feeling that I get when I am nervous.  Ironic now I thrive on that feeling.  The same feeling, I just perceive it differently. But I digress...

I was never fit because my caloric intake always increased proportionally to my level of exercise.  Unfortunately, I did not continue the exercise regimen during "off season" and always had to start back at square one at the beginning of every new season. This yo-yo trend continued through college.

In college, my level of exercise continued to decrease, and my junk food intake increased dramatically.  After all, I went to a college known for their dining service, and heck, it was a buffet!  I entered freshman year at 165 lbs, but at the beginning of my senior year in college I stepped back on the scale and realized that I was pushing 215 lbs.  Determined, and with the help of my roommates, I started scaling back my eating habits.  Having people around you daily that's willing to support you and "harass" you into healthy habits is very important.  This is especially true if they live with you.

Here is the theory I operated under for my weight loss, as un-politically correct as it sounds, "If there are no fat people in Ethiopia, and it's because they don't have enough to eat, if I eat less, I should get skinny too."

For the first three months from October to December I would eat only a fraction of the food I usually ate.  I was very picky on what I ate and mainly only ate canned tuna and vegetables (even today I have an aversion to cooked canned tuna).  I would not eat meals after 6pm and focused mainly eating (until I'm no longer hungry, not until I'm stuffed) breakfast and lunch.  When I returned home during the Christmas holidays I had lost 40 lbs, based only on limiting my food intake and changing my diet.  In fact, my parents could not recognize me when I got off the plane. 

I was able to successfully continue my diet through all the Christmas festivities and returned to school in January.  My weight loss through changing only my diet had plateaued, so I decided to incorporate exercise into my daily regimen.

Early on I decided I will base my exercise on "time" and not distance.  I started working out by doing 55 minutes on the exercise bike and 5 minutes on the treadmill, and slowly as my endurance build up I over time biased my exercise to where I would be running for the full hour.  I started on the exercise bike because it has a much lower impact on my body and helps stress and train my body to get used to the amount of workout I will eventually be doing.  In addition, I also chose to take a modern dance course to help me exercise even more (that and the class had a guy-to-girl ratio of 1 to 12, which helps).

Here was my exercise schedule: Monday, Wednesday, Friday, I would concentrate on cardio.  Tuesday, Thursday weights.  I would never exercise more than a hour, but I would instead push myself to run harder, faster, do more weights every session.

By spring break in March, I had lost an additional 30 lbs and was down to 145 lbs.  Although at first glance this weight loss does not seem as impressive, especially considering the amount of additional work required, keep in mind during this time much of my body has been replaced by muscle, which is much denser and heavier.  I was able to run 7 miles in a hour, and my waist went from 36" to 29".

I have never been that fit and skinny in my life.  When I returned to San Francisco during my spring break, even my best friend from since Junior High could not recognize me.  It was a very proud moment for me when he walked out of his office to meet me and walked right by me without recognizing me.  I had succeeded.

I am in no way a trained exercise professional.  But I have been excessively overweight most of my life and these are the steps I took to help me loose weight.  Here is a summary of my exercise and diet routine:

1. Eat only lean protein and vegetables.  Avoid empty calories from starch and oils.
2. Once you get used to the food intake, exercise for 60 mins/day, 5 days a week-- 3 days cardio and 2 days weight.  You need to give yourself the weekends to take a break and relax.  This is also the time that your body is recovering.
3. Surround yourself with people that can help you along.  Whether by keeping you honest, or helping you continue to exercise -- like a running club.  
4. Treat yourself to things you like, but in moderation.

I realized now that with a healthy body, many of the voids I had used food to fill I no longer needed.  This is not to say I don't enjoy the occasional Drumstick ice cream, but I don't need to consume five of them.   Once the ball is rolling, it is very easy to continue the routing but the same applies when you're first getting in the groove.  When I was first starting to work out, it was much more tempting to just sit on my ass and do nothing than have to walk to the gym.

Unfortunately, dramatic events in life can cause shifts in this mentality.  About a year out of college, I was diagnosed with mono and forced to go easy for the following 3-4 months.  When I finally recovered, I got lazy and slowly did less and less in terms of diligently working out and eating right.  It was easier just to be lazy and cheat.  I had numerous excuses for myself.  When I was consulting I told myself it was easier to just eat unhealthy with the group than having to focus on eating healthy alone.  I worked long hours but I did not make time to work out.

Eventually, my weight slowly climbed back.

In 3 years my weight increased up to 165 lbs, and eventually back to 210+.  My waist gradually increased from 30" to 34" to 36", and now 37".  The interesting thing I noticed was it actually took quite some time for me to start gaining weight noticeably, but once that happened I gained weight very quickly.  I believe this is because in the beginning, I still had my lean muscles that would burn some of the excess calories, and eventually when those were gone there was nothing to stop the downhill fall.  

It's been difficult to hop back on the exercise bandwagon, but I have come to the point in my life, again, where I know I need to make a change.  It has begun.

MNM Partners, LLC -- part 2

In a surprising, and refreshing change of pace, the executive team of MNM Partners is very responsive.  From all of my previous experiences dealing with MNM Partners (who manages 321 Oxford Way (Oxford Manor) in Belmont), I did not have high hopes that anything was going to result from my angry email last night.

The tenant downstairs, I found out later, was an unemployed electrician who does nothing all day and just smokes out and parties.  I constantly overhear him complain while he is out on his patio about how he was wronged and how he doesn't have a job and how the world is against him.  Seriously, if you're a convicted ex-felon, who can't manage your own money (again, two massive flat-screen TV and a Camero, but can't pay rent), or keep a job.  I don't think it's society's fault -- and it sure as hell isn't my fault.  I feel like these are the exact individuals they should parade kids in front of, as an example of a drain on society and who not to be when they grow up.

The guy has absolutely no respect for his neighbors and actually replied, "if you don't shut up I'll turn the music up."  This is of course after I reached out nicely to said neighbor in response to him turning his music so loud at 11 pm during the weeknight that my floors (and his ceiling) was vibrating from his music.  My girlfriend very calmly and intelligently reminded me I had more to loose.  I decided it would be better for me not to return and take a crowbar to the side of his head.  Sadly, this isn't an uncommon occurrence as there are quite a few "bad apples" that ended up in this complex -- needless to say their previous tenant screening process wasn't very strict.

Instead, I wrote a long email to the management, detailing the concerns I have, my frustrations with the condition of the unit, as well as the neighbor downstairs.  The options I have laid out was, (1) allow me to break my lease with a full refund of my deposit, (2) move me to a different unit for the remainder of my lease, (3) get rid of the guy below (which I admit in the email is both the least probable and least reasonable -- but I was angry at the time).  Lastly, if all of that failed, I was prepared for it to get ugly.  Based on my prior experience with their employees, I was not expecting much to happen.  I grumpily went to bed.

This morning I received a call from one of the managing partners, Michael.   Amazingly, Michael was extremely courteous and straight forward.  I enjoy dealing with professionals and not second class citizens with a chip on their shoulder.  Michael explained that the previous manager of the property, although a very nice and kind fellow, did not execute and left things to deteriorate.  They trusted the management of the property to them and because no one complained to the management company, they did not know the conditions that 321 Oxford Way was left in.  The new manager was given the task to rescue a sinking ship, so he has been doing the best that he can.

Personally, I took that explanation with a grain of salt.  Although I trust my employees, I would have thought they would periodically drive out and just check out the condition of the apartment.  In addition, they made it fairly difficult for individuals to reach the management team with a complaint.  I had to do a little research online myself to figure out who owned and managed this property, and my guess is the majority of the residents felt/thought the manager was the only individual they can complain to. Lastly, the team that had been maintaining the property (who are mainly from what I can see a bunch of kids) are still there.

Regardless, he was actually very accommodating and reasonable.  Michael offered to speak with the tenant downstairs regardless if I stay or not (turns out he actually works part time for MNM Partners, go figure), and gave me the first two options I offered up.  I can either stay in a new unit (but with no guarantees that the tenants around me won't be crazy ex-felons with a chip on their shoulder) or move out with a full refund of my complete deposit. 

Turns out Michael is actually relieved if I do decide to end my lease early.  Because of the breed of my dog, it's a large liability for rental companies (i.e. apartments) to take on.  My guess is that Michael did the math and decided that it's financially better for him to give up the deposit than to retain the liability of my dog. Unfortunate for him, I was smart enough to have the specific breed of my dog written into the contract.  I guess he's proposing to buy me out.

Michael does have a good point, as you can see from my previous post, it's very difficult to rent an apartment with a dog that's considered a dangerous breed.  There is a possibility I can "donate" my dog to my parents, but I am uncertain if he'll survive in the wilderness of Portola Valley.  Contrary to popular belief, my "dangerous" doberman is actually pretty useless except for licking and petting.

Now I have decisions I need to make... and a new place to find.

Budgeting for Home Ownership

If you’re a new homeowner or looking to buy a new home, it can be easy to get in over your head. As we discussed earlier, homeowners don’t often factor in the costs of additional items such as HOA fees, property taxes, utilities, and other expenses in addition to the base mortgage. As a result, many new homeowners find themselves in over their heads from a financial perspective.

When budgeting for home ownership, make sure to factor in all the costs associated. This includes the items mentioned above, as well as appliances, maintenance, savings for the “rainy day” fund, furniture, and landscaping. It’s easy to overlook some of these smaller expenses, but they all add up very quickly. It’s also easy to underestimate the cost of home items.

As a rule of thumb, set aside 10% – 15% of your mortgage and property tax for additional home expenses, If you don’t have this much to work with, it’s time to really dig down into your budget to make sure you can afford the home. This is also a good time to see how you can trim unnecessary expenses and identify areas for savings.

Ban the deed, not the breed

After rescuing a doberman pincher from the shelter, I couldn't agree with this more.  I went immediately from one of the privileged and a landlord's wet dream (well to do individual, with a great credit score, and always pay on time with minimal complaints) to having great difficulty finding an apartment that will accept my dog.

Generalizing that a breed is dangerous is like going out and banning all sport utility vehicles ("SUV") because they kill more people than a Vespa scooter.  I wholeheartedly agree that breeds such as a German Shepard or a Doberman can cause more damage to a bystander than a chihuahua or westie terrier.  The parallel is that a SUV can cause more damage than a Vespa.  This has nothing to do with how dangerous the breed is, but is solely because of the size of the dog.  What makes the SUV dangerous is the driver, not the car itself.

Once we understand that, the next step is to realize the breed isn't what makes a dog dangerous, but the individual who is raising the dog (a.k.a. the owner).  Dogs, in many ways, are a lot like people.  I strongly believe that the environment, not the genes, dictate a majority of the dog's (and the individual's) personality and actions.

A family that gives the dog a lot of attention, makes sure the dog is property trained, obedient, and sets the proper boundaries, will raise dog that will be very little risk to others. 

On the other hand, an individual who is negligent and abuses the dog, like an individual from a broken home, will create a dog that is dangerous regardless of size. 

How often do you come across a small dog that is extremely aggressive and likes to bite?  This is the result of a negligent owner.  The only reason it is ok is because the damage that could be cause by such a small dog is minimal.

MNM Partners, LLC

I'm still in awe about how poorly some management companies could be run.  A great example is the management company that currently manages the apartment building I live in.  I did some research and found out the building was managed by MNM Partners, LLC, claiming to be the first TIC Sponsor Investment company out here in Northern California.  Based on the prospectus I found, it looks like they have been looking for investors since 2006.  From their website, it looks like they manage two properties: 301-321 Oxford Way (Oxford Manor) and 1100 Village Drive, Belmont CA.

My favorate quote from their prospectus is, "MNM will manage the building massaging rents to maximize cash flow".  They definitely were trying to maximize cash flow. MNM Partners seems to be operating under the business model of cut as much cost as possible to make it appear you are making money in the short term -- even though there may be long term repercussions. 

We initially moved in because this was the only complex without breed restrictions during the short period we had to find living arrangements. The apartment was not cleaned when we moved in and many parts were broken, even though we were promised everything will be refurbished prior to the move-in date. The counter was scratched up and we have a significant hole/dry rot on our balcony. We have a fridge in our unit that leaks water from the freezer unit.  Never mind that, if you inspect the outside of the complex, you will find that the weeds are overgrowing at 301 Oxford Way (Oxford Manor), and the wood shingles on the side of the building are either in the process of falling off or missing altogether.  The carpets in the hallways are stained with pet urine, the parking lot area scattered with dog feces.  It is VERY apparent that many of the tenants have no respect for the property or much of anything else.

Although they claim not have a high vacancy (but currently it looks like they do based on just a scan of our neighbors units and how many of them are empty), they definitely have an extremely high turnover rate.  People don't stay in the complex very long, many that leave have the same feeling I do -- they got suckered. 

Although some of the neighbors are hard working individuals and overall nice people. Many are rude, disrespectful, and have parties frequently during the weekdays, weekday evenings, and weekends until 3 or 4 am.  The noise levels are unacceptable.  For example, many times the whole floor shakes and vibrates and I can hear the lyrics of my downstairs neighbor's music VERY clearly from our apartment upstairs, even in the bedroom and bathroom.

Many also clearly disrespect the Belmont law that prohibits smoking in shared living units such as apartments, townhouses, and condos. They smoke heavily in both their unit as well as in and around the complex, including patios. Cigarette butts are scattered everywhere around the complex.  The management wasn't even aware of this law (which was passed over a year before I arrived) until I notified them, then they finally put up signs but do nothing to enforce the law.  This is likely because based on my experience, over half of the residents smoke.

Most of the individuals who do live in this complex are pretty much uneducated, ignorant, "redneck", 2nd class citizens.  Many are unemployed and deadbeats, and frankly I believe they live here because no other complex will accept them because of either their income or credit score.  From conversations I overhear, it also seems like the new manager of this complex is having trouble collecting rent from a lot of their tenants.  Something is wrong when a tenant can have two 60" flat screen TV, a sports car, obviously a nice and very loud stereo system, but can't afford to pay rent.  Police cars also frequent the complex, which is never a good sign.

To summarize, as a tenant living in the complex, I would highly recommend not investing in this complex, nor do I have high hopes for their other investment property on Village Drive. MNM Partners are essentially slum lords, trying to make a quick buck on a degrading apartment complex while trying to solicit outside investors so they can exit before the "deck of cards" collapse.