Welcome to Chez Cliff!

In one weekend, I plowed through this booked called "No B.S. Time Management for Entrepreneurs".  Very few books capture my attention and force me to absorb every single word on every page.  This book accomplished that in spades and I recommend it to everyone who happens to glance at this.

If you know me at all, you know that I’m in a constant state of improving myself.  I try to add activities, habits, things, whatever to my life in order that I may enrich it.  With each of these activities, there is always time involved.  Lately, I’ve been feeling that I just don’t have enough time to get everything done.  I’m also forgetting things, which happens with age.  Since I don’t have enough income yet to hire a personal assistant, I have to get along.

The author of this book suggests a few, no-brainer techniques for organizing time.  And one of them reached out and grabbed me.  Of course this technique, I’m told, is popular with Accountants . . . and since I’m not an Accountant by any stretch of the imagination I never even heard of this technique.

It’s called a Tickler File.  The name alone makes me laugh because I wonder what Google searches will bring people to my door with the word "tickler".  In any case, a tickler file is nothing more than the next two or three months organized in one convenient location.  This organization takes place in the form of folders, each identifying a day of the month.  On that day, the file is removed and whatever is in the file is taken care of that day.

Here’s a photo of my box that I purchased at Office-max.  It is just a standard, plastic
box with a high-speed, low drag technologically advanced paper-clip tray for holding . . . you guessed it!  Paper clips!  This particular box happens to be just big enough to hold two months worth of folders.

Opening the box reveals not a long lost Picasso but a varied collection of hanging folders.  I did one set blue, the other red.  Each different color represents a month.  Each tab is numbered 1 through 30, which magically corresponds to the day of the month.  Of course, the box of hanging folders has 25 folders . . . so for the last few days of the month, I doubled up the days.  I didn’t want to buy another box of 25 in order to just get five.  That math doesn’t add up!

As demonstrated by my Vanna White modeling, I put the letter, bill, article, file, or
whatever into the day that it is due.  In this case, I put my mortgage statement into the "1" folder because it’s due on the first.  When the first of the month rolls around, I’ll pull up this file and there will be my bill.  All ready for me to pay it!

I figure this has to be an improvement over my old system, which has seen variations.  In the olden days, I’d put bills on my desk so I wouldn’t lose them.  I’d also put laundry, coffee mugs, computers, books, folders, magazines, etc on my desk.  Of course the bill would disappear and I would resort to finding an old bill so I could copy down the information and pay it.  My first improvement over this method was with a briefcase.  I would tuck letters, bills, etc. into my briefcase so I would always have them with me.  Of course when I’d get ready to pay, I never had my checkbook with me nor any stamps.  Why?  Because they were at home on my desk!  As time went on, the amount of paper in my briefcase could cripple a donkey.

Yes, I kept all the receipts since learning that this is all a tax write-off.  I love this country!

For those that are new, from time to time I break from "improving yourself" type talk.  In it’s place, I offer an article regarding some tasty meal or wine (or both!) that I have experimented with.

Ladies and Gentlemen, I present to you my dish of Crab Bisque!

This last weekend was my annual "Crab Bisque" weekend.  I originally intended on sharing it with friends.  Due to unforeseen circumstances, they had to cancel.  However my heart (and stomach) were set on it so I decided to make it nonetheless.

This time of the year is always good for seafood when, I believe, it’s at it’s freshest.  And thanks to Costco (a version of Sam’s, depending on where you live), crab can be found there on the cheap.  My only problem with the crab was that it was still in the shell and I don’t have the right tools for cracking it open.  So, I grabbed my Home Depot pliers and started working away.  After 15 minutes, I started to wonder if the pliers were going to make it.  But sure enough, the meat was liberated and we could all breath more easily.

If you’re saying to yourself "I can’t make crab bisque.  It’s too complicated!" then you’re probably right.  It takes a tremendous amount of skill and effort to put a bunch of stuff into a pot and boil it for 30 minutes.  Whew! 

But for those that are brave of heart, I offer you the recipe.  If for some reason you can’t view it, contact me and I’ll email it to you.

Bon appetit!

I must be the weirdest person alive.

SFX:  Cell Phone Rings
Clifford:  (Driving on the 5 freeway)  "Hey Real Estate Agent!"
Real Estate Agent:  "You’re on your way to get your taxes done?"
Clifford:  "One day, you’ll explain to me how you know all this stuff.  Yes I have a meeting in about 15 minutes."
Real Estate Agent:  "Do you have your closing statement?"
Clifford:  "No.  Is that important?"
Real Estate Agent:  "It’ll be on the fax machine when you get there."
Clifford:  (Grinning like monkey on crack)  "This is fun!!"

My head was bopping to "Pick up the Pieces*", which is still a great song, while I was meandering down the 5 freeway.  I can’t explain why I was happy to get my taxes done but I was.  I think it was more bragging rights than anything.  So far, my luck at assembling a "team" has been pretty good.  Now I was about to bring a new person to the team . . . my tax guy. 

Yes, I’ve had a few people from time to time do my taxes but never, ever have I had my taxes really done.  Not by a professional guy.  Not where I would have a pile of receipts that someone would have to wade through in order to determine what I could write off.  I had the receipts from the yard clean-up, all the interior work on the second house, all the exterior house painting, all the yard-work . . .

After an hour with the Tax Man, he shook his head and said "I’ve never worked with someone who was happy to get their taxes done."

My response:  "This is great!"

I learned a few things while I was there that will help me in the future.

1. Keeping all the receipts is important.  I just have to worry about separating them into a few categories.  One is for the rental house, the other is for the primary residence.  That’s it.  But keep ALL the receipts!  Even the washer and dryer are deductible (for 2006). 
2. I can’t write off the improvements to the primary house at this time.  However because my property is considered investment property, I can write off any improvements once I sell the property.
3. For all you Rich Dad reader’s, this one is for you.  It feels sooooo good to be operating in the B and I quadrants.  All of these write-offs make it definitely worth while.

I am waiting now for the refund to be deposited into my checking account.

Do a little dance;
Make a little love;
Get down tonight!

* – by Average White Band.  Not that Kenny G imposter!

Business Week has an excellent article that, subconsciously, underscores the mentality of home owners in Orange County.

The article is called "A tale of two markets".  The article is a good read and when I can find it on-line, I’ll link it.  There was one paragraph that caught my eye and made me laugh.

"Yale’s Shiller surveyed Orange County residents last year on what they expected home prices to do over the next ten years.  The average expectation was a 23% return – per year!"

That has to be the dumbest thing I’ve ever read.  Having spent many years in the OC, I’ve met some "head in the clouds" people.  But this rate of return is absolutely ridiculous. 

Let’s put this in numerical terms.  A statistic quoted in the article has 7,342 homes selling at more than $1M in 2005 which is up 43% from 2004.  So the expectation is that the value of each home will go up more than a quarter of a million dollars per year for the next ten years. 

Does anyone besides msyelf find that a bit too optimistic?

Apparently they surveyed the homes in the OC with meth-labs in the basement.  C’mon OC people . . . fess up.  You know who you are!

But I will state this.  I cannot ignore the possibility that this could happen.  If you believe in the adage that "There’s a sucker born every minute" then as long as someone is willing to buy at that new price, someone will be willing to sell.

My eyes fell upon the appraiser’s report for my property.

Holy Cow.

My blog has reached certain ears and I’ve been asked not to detail specific numbers.  Which, I concur, is a good thing.  But we can play a game of scenario to give an idea of where I’m at.  The median price of a home in Long Beach is $470,000.  In relation to that, my property value has gone up 23% since I purchased the home.

I am keeping a few things in mind.

1. I got the deal of the century on these houses.  Everyone involved knows I got these houses at a steal.
2. The houses were in bad, bad shape when I first got them.  I’m sure just cleaning the yard and putting new paint made a huge difference.

I’m encouraged by this.  It’s nice to know that I could liquidate right now and be way, way into the black.  Compared to a year ago, I’ve made a lot of progress.

I’m so glad I didn’t listen to the "bubble burst" people when I first purchased these houses.  But then again, they don’t (or haven’t) purchased real estate nor have they made millions.