The Village Idiot Still Works at AIG

Mid-Day Market News & Commentary by Chris McLaughlin, November 11, 2008
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Now for the latest outrage of the week…

Executives from American International Group (AIG), the insurance conglomerate that was recently bailed out by taxpayers to the tune of $150 billion, held a party back in October that I blogged about.  It cost over $440,000 and was held at the 5-start St. Regis Resort.  They spent over $139,000 on rooms, over $147,000 on banquets, and $3,000 for in room dining.  And because these executives have had a rough few weeks, they spent over $23,000 at the spa.  Yeah, our taxpayer money was going to help support these junkets.

 

Now, our friends at AIG decided the get frugal.  According to Brian Ross of ABC News, instead of wasting $440,000, they decided to meet in secret at the luxurious Pointe Hilton Squaw Peak Resort and waste just $343,000.  But they saved on signage at least: they told the hotel to take all references of AIG down, including all logos and signs, and they instructed staff never to use the word AIG.  Apparently some AIG executives are getting harassed by taxpayers … go figure.

 

Don’t you think some hotel staff member, worried about his or her job in this economy, is going to pick up the phone and rat them out?  Well, that’s exactly what happened.   Who’s the moron that thought they could keep this a secret?  That guy needs to be fired along with the rest of these clowns.

 

I know, I know you say…Chris, you’re always telling us to think positive, live a life of abundance and not of scarcity, and think BIG.  Well these folks certainly thought big alright.  But as I said before, when the village calls and asks where its idiot went, let them know he was at the Squaw Peak Resort working with AIG. 

Ok, now back to the real world most of us live in…

The financial markets were under pressure today after disappointing results reminded investors that consumer confidence is weak.

It was no surprise to those in the housing industry that another homebuilder announced some disappointing news.  Homebuilder Toll Brothers Inc. said that revenue plunged 41% to $691 million, with net signed contracts dropping 27% last year.  Robert I. Toll, Chairman and CEO, said: “Unfortunately, the preliminary signs of stability we had discussed in early September, during our 2008 third quarter earnings call, were upended by the past month’s financial crisis. Results of this crisis — accelerating fears of job losses, a large decline in consumer spending, a significant capital crunch, increased credit market disruption, and plummeting stock market values — all contributed to drive our cancellations up to 233 units.”

There are fewer folks sipping $5 coffee these days.  Starbucks reminded everyone that when a recession hits, folks are just fine with the fat guy from Dunkin Doughnuts making the doughnuts.  Starbucks Corp. announced that there were no bucks coming in over the quarter.  It earned $5.4 million versus the year ago period’s $158.5 million.  .

Now on to our real estate investing education section…

Savvy Short Sale Tips: KISS

Like the old adage KISS – Keep it Simple Stupid – sometimes the best advice is really the easiest to implement especially when it comes to successful short sale strategies. Here is a quick rundown of KISS tips short sale investors would do well to keep in mind…

1.     Enjoy the process. Short sale investing is fun when you allow it to be; get a plan of action together then implement it consistently. A plan and process takes the stress out of the equation while the profits and rewards keep it fun and enjoyable.

2.     Act rather than react. Those in control suffer less stress. Stay in control and work your plan rather than letting it work you.

3.     Put the X-factor back to work. Everyone is fascinated by the extraordinary but few people break away from the day-to-day doldrums long enough to stray far from their safety zone. If you are not continually growing and pushing the limits in your life then it’s time to reassess your strategy; make it a priority to try something a little new or daring every few months. You might be surprised at the results!

4.     Learn from others. Sounds simple enough but pride, fear and a host of other hang-ups keep most people from asking questions. Rather than concentrating on your own specific limitations, make it a priority to find out how short sale investors made their fortunes. Get the nitty-gritty details about what worked – and what didn’t work – then implement it in your own life.

5.     Stay motivated. It’s important to read, learn, share stories and remain inspired. Let’s face it; most people in the world will want to rain on your parade by telling you why it can’t be done. Don’t allow the noise in your life to interfere with success; make a point of surrounding yourself with stories of success instead.

6.     Eliminate negatives. Interviews, applications and other preliminary information is not there to help people make a positive choice – or say “yes” but rather to provide reasons to say “no”. Think like the bank, broker or seller then put together a package that eliminates all negatives. Later you will have the opportunity to present the positives. Successful short sale investors know how to eliminate negatives and other common objections early in the game.

7.     Know your market. Location, location, location. It’s simple advice that holds true for any real estate related transaction.

8.     Use the right tools. Every profession has a set of tools required to get the job done right; know the tools of your trade and then invest in only the best.

9.     Keep a portfolio. Track your own success and failures; what went right? What went wrong? Where did you just get lucky? Make sure the portfolio demonstrates your financial position, growth, trends and other pertinent information.

10.                                                                                                                                                                                                                               Share success. Once you begin to experience your own short sale success make time to share your knowledge and insight with others. Not only does it return the favor but teaching someone refines your own skills and knowledge.

 

More tomorrow…

See you at the top!

 

Chris McLaughlin, J.D., M.B.A.
web: http://www.shortsalesriches.com/welcome.html
e-mail: info@shortsalesriches.com

Phone: (800) 452-7627

 

P.S.: You are going to be on our Webinar tonight aren’t you?  As Jim Rohn said: “If someone is going down the wrong road, he doesn’t need motivation to speed him up.  He needs education to turn him around.”  Get that education now:

https://www2.gotomeeting.com/register/324799291