Monthly Archives: May 2019

Memories of a credit crunch

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2019-05-28 06.43.39I’ve been offline for a bit.

Spending time with my family in Mexico.

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I’m fond of reminding myself that the cost of the status quo is hidden.

I like to take breaks from my “status quo” and pay attention to what I have been missing.

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Since last July, I’ve been pulling the plug on the internet for 5-7 days at a time and writing notes in a memo pad.

Via my breaks, I am able to see the cost of constant connectivity…

….reduced creativity, clarity and cognitive ability!

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It’s tempting to think great opportunities will never come again.

It’s also human nature to forget anything that is further back than about three years.

So I’d like to share memories of what happened coming out of the 2008/2009 credit crisis.

Ancient history in the collective memory!

2019-05-28 13.59.14

In 2010-2012…

  • I bought two buildable lots, one with an older house, for under $300 per sq ft.
  • I then bought a two-unit downtown site for $375 per (very, very old) square foot. This seemed like a stretch. I didn’t expect the deal to show much progress for a long time.
  • I was able to buy Tucson condos at $49 per sq ft. Shouldn’t have furnished these! Sold them early as I was running tight on cash (due to living in a big house with no yield).
  • My last decision was NOT to buy a 5,000 sq ft house in Gunbarrel (City of Boulder) because I was concerned about the “hassle” of cleaning it up. This deal could have been had at $99 per sq ft! What was I thinking! Instead I put everything I had into a well-constructed home at $244 per sq. ft.

Cost to build (excluding land) is now around $400 per sq ft.

The figures above included land and building.

In hindsight, for three years, Mr. Market was giving land away in the City of Boulder.

Are you ready for the next tightening of the credit cycle?

Your Future Self Will Thank You

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2019-05-03 19.25.51-1As a young man, 50 was well beyond the furthest I could imagine. I find myself living in a future I never imagined and it’s pretty good.

This (enjoyable) future is humbling because, on reflection, I had a tremendous amount of bad ideas along the way!

Fortunately, I failed to execute on my worst ideas.

Watching my kids navigate the world, I see bad ideas appear to be universal – at least in our household.

Two things I’m teaching them to help reduce the impact of their impulses:

First idea, not, best idea // it’s just my first idea. It might not be my best idea. I don’t need to act on, or believe in, everything I think.

Change slowly // I’ll use a recent example. I’ve been thinking about moving across town. As I think more and more about moving, I can get myself worked up about the move. The “move” is purely my creation.

Each time I notice the above, in one area of my life, I see how I create stress from forcing myself to execute my (first) ideas quickly (and these ideas might not be good ones!).

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You are much more likely to predict your reaction to future events than the events themselves.

Here’s your crystal ball… Research from your older mentors, friends and family:

What do people like me value when they are older? There is a rich history of people, like each of us, that have walked the path we follow. While my life is completely different than ten years ago, my values are similar.

Invert the question and watch… What do people like me lack when they are older? The easiest way to understand what the psyche lacks, is to listen quietly to what people say.

  • Control (over schedule, over self, over others)
  • Sex, Connection, Intimacy, Release
  • Stability (financial, emotional)
  • Health & Vitality (strength, energy, capacity to execute)

So perhaps you spend 30 years chipping away at:

  • Spend less than I earn
  • Make myself marriage material
  • Get to know my kids

And you arrive at a wonderful middle middle-age, pat yourself on the back and wonder what’s next?

Where to make an effort?

  • Friends
  • Strength
  • Health

Choose wisely.