Adam Sachs Blog

1)      Supply and Demand: Suppose you had 3 companies that made Lemonade. Each day these companies produced a total of 1000 glasses.  Let’s say that there where 200 Million people in the US who drank lemonade.  Let’s also say that 50 Million people needed 1 glass a day to function, like a junkie who needs his next fix. What would happen to the price of lemonade? It would skyrocket. You see, the 50 Million people who need it would be willing to pay whatever they could afford for a glass. Only the wealthiest 1000 would get a glass. The remaining 49,999,000 would find alternative ways to get their fix.

2)  Our US Dollar is WORTH LESS than half of what it used to be.  Check this out. GOLD is a constant. Our US dollar fluctuates. When you understand that you will understand why EVERYTHING SEEMS so expensive.  In January of 2000, you could buy an ounce of Gold for $283. In January of 2008 that same ounce of gold cost $900. The Price of gold did not go up the price of the dollar went down.  If the US dollar could buy 1oz of gold today for $283, the cost of a gallon of gasoline would be $1.26 a gallon.

Back in 1989, I started buying a lot of single family and multi family homes. One project consisting of about 60 duplexes, located in Orlando, FL was about 2/3 complete. That is about 40 of these "side A, side B" properties had been completed with lots for about 20 more. The builder was selling the individual sides for $90,000 each. The land of those lots is usually valued at 20% so that would put the building lots at $36,000 ($90,000 X 2 sides X 20% = $36,000).

 Things where humming along for the builder until mid 1990 . You see the US government  was now dealing with a slew of failed savings and loans and tightened up their lending guide lines. "Tightened up" is putting is loosely, It was more like virtually stopped lending money for a while. It became so hard for me to get a loan, that for a period of a year, all I would purchase was owner financed, assumption and lease option deals. You had to get creative man. You had to be persistent. You had to believe that you where getting a real good deal. There where not a lot of people able to buy anything back then. Cash was king. Yet, there where a handful of us investors, who no matter what, persisted in buying when the market was saying "STAY AWAY - DEATH". Buying real estate was looked at as a skull and cross bones - Poison.  I threw away my TV, put in my favorite Zig Ziglar motivational cassette tape - "See you at the top!" and changed my way of thinking. As Zig would say "If your thinkin is stinkin, so are you. Your attitude determines your altitude!" I really love that man.

One of the best deals I did was buying 4 of the home sights for those duplex units at an RTC auction.  Remember they where previously valued at $36,000. I got them for the high bid of $8,000.  Now $32,000 was a lot of money in 1991, at least for me.  I used my father's credit card to pay for them. Oh, I know what your thinking. My dad, formerly known as "Mr. Red-light" had already seen me work my magic with his credit on another deal - a foreclosure where we made $11,143 in 10 days! He was now "Mr Green Light" and trusted my golden horse shoe intuition.  I struggled a bit to make the minimum payments on that $32,000. I think the minimum payment was $300/mo. I already had 6 rental properties that where cash flowing a total of about $600/mo (unless something broke or their was a vacancy).

in mid 1994, approximately 3 years after the RTC auction I sold my 4 lots to a builder for $38,000 each.  Total interest I paid on my dad’s credit card was about $3,600/yr X 3 years = $10,800 +  $220 for 3 yrs of taxes, for a total holding cost of 11,000. So my actual investment was $8,000 + 11,000 = $21,000. Which meant I split with my father $17,000 X 4 = $68,000.

I had just put $34,000 in my dad’s pocket, and put $34,000 in my pocket. Yes, I was an investing genius! Yes, I was born the golden horseshoe.

Now here's my point 2008 is shaping up to be a carbon copy of 1991. There are deals everywhere, yet most people are "afraid to buy." They say things like "Ill buy when my other property sells" Or "Ill wait a few years until the market hits a bottom" or "I'm down to my last $100,000" or ... you get the point. As I have always said, you can make money or you can make excuses, but you can't make both. GET IN THE GAME NOW.  DO NOT SELL RESIDENTIAL PROPERTY NOW. WE BUY LOW SELL HIGH. DO NOT SELL NOW. DO NOT SELL NOW, DO NOT SELL NOW!!!

To your success,

Adam Sachs, CEO Green Light Real Estate, LLC

.

Please welcome my little girl, Jolee Gizelle Sachs to the world! She was born March 25th 2008 in our home in Maui. I could go on about this bundle of joy for day's and weeks. For those of you who have children, you know unconditional love. For those of you who don't, borrow a neice or nephew for a while.... Or better yet, volunteer to be a big brother or big sister. It's an amazing feeling and when you see thier beautiful faces, nothing else matters.

Love,

Adam

You deserve the finer things in life, don’t you?

Not one person in the US has deposited regularly for 20 years.

           (source American Bankers Association)     

More 18 year-olds have $100 in the bank that 65 year olds.

           (source: Devey's Economic Tables)

85 out of 100 people at age 65 are not worth $250.

           (source Social Security Administration)

93% of the men at age 65 who failed financially said it was because it was a lack of a plan.

About Americans Over 65
       89% are on Social Security
       45% are partially dependent upon relatives
       30% are partially dependent upon charity
       23% are still working
       ONLY 2% ARE SELF SUSTAINING
(Sources: Social Security Admin. and Managers Magazine)

And if that is not enough to get you fired up...

Results of Stock Trading
       97% lose money
       2% BREAK EVEN
       1% MAKE MONEY

There are still more millionaires made through real estate investing than through any other means.

Foresight is the key to success.

The strong will survive.  When we fail we learn what not to do in the future.  To embrace Failure is what it takes to be hugely successful.

Financial Blue Print: Before you can gain great wealth you must have a blue print as to where you are going.

DO you have a PLAN for success? Is it in writing? If I asked you to show me your top 10 1 year goals in WRITING could you show me those goals right now?

What are you passionate about? How can you take your passion and get paid for it? In my next blog I will show you how to take your passion (no matter what it is) and turn it into the key for success in real estate.

To your success,

Adam Sachs, CEO Green Light, LLC

You know the old adage "buy low sell high." In this down market, we have an excellent opportunity to buy low. There is a ton of inventory on the market. A lot of folks are panicking and selling their investments at a loss. Stay calm, for the real estate market has and always will recover with a vengeance. If you already have property in our portfolios, and don't absolutely need to sell, DONT. Hold on to your properties for you will reap the rewards in the future. Remember real estate investing is not a get rich quick scheme. It is a get wealthy over time. I think this is an excellent time to buy as values may never be this cheap again. I did say cheap. Remember back 10 years ago how you thought properties where to expensive. Look at the prices today. Don't you wish you had bought 10 years ago and still owned those properties today? For those of you who held on to your properties 10 years ago, you are reaping the rewards.

This is my first blog entry. I will attempt to reflect my thoughts about technology and real estate and planning. First off I want to thank the Green Team for putting up this web site and promoting it. Without the youth there would be no future. I like to surround myself with the youth to learn about the technology they are using. The other day I was out with my "little brother" from Big Brothers and Sisters. He used a word in a way that I had never heard. The word was "tight" it sounded like "ty it" when he said it. I asked him what it means. He said that it was like saying something is "super cool".  I'm 42 and I am sure that I am tight! I am doing everything to make sure that I am tight.

Examples include websites like zillow.com where you can get an idea of what things are selling for in your area. Then there is www.rentclicks.com a place to advertise your rentals. Let's not forget about  www.craigslist.net where you can advertise just about anything. I know that some of us take these sites lightly, yet the youth uses these sites, over and over.  If you don't have a http://myspace.com/ account you are living in the dark ages.

Why menton this when this is a site dedicated to your success? Because I want you to succeed. I want you to be around for a very long, long time. That means living a good life. You deserve the finer things in life, don't you? Then you want to stay up with what's working and what's not.  The web and email are going to be around for a long time, so we need to use them to our advantage.