Time for lemonade

[On the way up]

First, I am a noob around this forum. Usually I be a part of a forum for awhile before the thought of seeking assistance from its members would enter my mind. However, a member of this forum suggested I come here and present the same situation to you all. So, here goes.

Wow. That is about all I can say really. My wife and I were making my steps to improving my families position after reading Rich Dad, Poor Dad as well as other books. After finding out our biggest "asset" was not much of an asset afterall, we looked into selling our house. At first, it didnt go well. The market was going sour and it didnt look like we could walk away with our shirts intact. So, we waited and decided to focus elsewhere. Seemed to go well, at least at first.

Now matters are worse. We live about 15 miles from foreclosure ground zero. Ok, looks like we will have to sit this one out until the smoke clears. Wrong. My employer laid me off last week and now our source of income went with it. Fortunately, we have a cushion and a severance that will keep my head above water for a few months.

So, it seems like I have some econo-sized lemons and I do believe its time to make lemonade, even though it is going to be some bitter juice. Short sale doesnt look like it will fly due to the enormous inventory going at despirate prices. Foreclosure makes my stomach turn when I say the word. The only sources of income available take me to other states and, unfortunately, it doesnt allow room for two properties.

Ok, so rental. Might take a bath due to the low price of rent right now (obviously not the only person considering rent over foreclosure) but, if done right, seems like the best alternative. So I'm thinking and I recall something I read in one of the Rich Dad books. I tried looking for an exact caption but I recall it being a minor point, more of an example. The section I am referring to was about a husband and wife who owned a rental property of some sort. The husband ended up renting the land to the wife and the wife rented the building to a customer which, in the end, provided them with tax exemptions. Does this sound familiar to anyone? Does this work for rental housing?

If someone has some sugar to add to my lemonade, feel free to share. I'm still working on my angle to get out of the rat race and feel it will come, but I'm sure it doesnt start with me in stranded in an abyss of debt (at least I hope it doesnt).

 

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[Russ H]

At the risk of sounding flip, perhaps you are focusing WAY too much on the lemons.

All of us have lemons in our lives.

But we choose to see everything else-- all of the other opportunities.

The title of your post seems to suggest you're looking for positives. But your tone-- and outlook-- are still very victim-oriented.

This is probably natural, given that you've just been laid off.

I realize you're probably trying to hide your dispair, but it's not working. It's clear you're hurting, in a big way. Your whole post makes you sound like you're already beaten, and out of options.

Like: You can't get a job unless you move to another state? I can get 3 jobs tomorrow, all within walking distance of my house. I'd have to work like a dog for pennies, but I'd have income. Surely you could take a week, instead of a day, and find something that was local and paid more than minimum wage.

Everyone makes mistakes. It's what we *do* with our mistakes that determines whether we go on to become successes, or victims.

If you're not sure where to go next, you may want to go through the process outlined here:

http://thefastlanetomillions.com/showthread.php?t=544

This will give you a starting point, and a direction that will fit who you and your wife are as people.

Being laid off is a crushing blow to many.

But it's the opportunity of a lifetime, if you choose to see it that way.

Work on the positives. Don't worry about the lemons so much-- just make them part of your diet, but don't live on lemonade.

I've been homeless, penniless, and worse (don't ask). All were great opportunities for growth. It wasn't easy, but oftentimes, things that are worth doing aren't easy.

Perhaps reading or listening to some Tony Robbins would help.

Hoping my words are helpful, and not just more lemon juice. :smxB:

-Russ H.

[ame="http://www.youtube.com/watch?v=Cpc-t-Uwv1I"]YouTube - Tony Robbins motivates you in 20 minutes: TEDTalks[/ame]

 

[yveskleinsky]

First off, welcome! I think your attitude is really good all things considered. (Geeze Russ, you really are mellow! If this was me, I would not be so positive as to title this post having anything to do with lemonaide- but more along the lines of "How to eat a shit sandwich?") :smxB:
Second, am I understanding your situation correctly, in that the main motivation for selling your home (initially) was because it was not an income generating asset? My home is not income generating either, but I still own it. ...It's okay to own your own home, just call it what it is.

I gather that now you feel forced to sell as you have no current job. Let's focus on that detail. Okay, so you have no job. ...Just so we can catch everyone up to speed, please repost here everything that you do have going for you in your financial corner- as you have a lot going for you.

Back to the no job- how much do you need to bring in make the payments? Let's brainstorm. There are lots of smart people who, I bet, have dug themselves out of deeper holes.

Hang in there. ...If nothing else, you'll have a great story to tell when you do become financially free! (Was that enough sugar added?)

 

[AroundTheWorld]

Sounds to me as if you've got a little money saved up and therefore a little time.

I look at your situation in 2 distinct areas. 1) survival. You have received a shock and feel that your very security is in jepordy. 2) thriving. Once you feel that your basic needs will in fact be met - you can begin to THRIVE in this new situation you now find yourself.

So.... SURVIVAL.

These are the questions I would be asking myself in your circumstance:

• Do I have children? (my survival needs are higher when I am responsible for little ones)
• Is there income from any other source? (spouse/current investments?)
• Will rent cover the mortgage if I rent out the house?
• Do I have a skill or knowledge that will allow me to launch a service oriented business - bring in cash as I work on my THRIVE plan (listed below).

I would scale down my expenses BIG time. Rent out the house, move into a cheap little apartment or some other cheap living situation. Cancel cable, sell the TV, only be a one car family - and a little beater at that. I would figure out how long my current cash or credit can carry me. Then, I'd implement phase II - THRIVE - as quickly as possible. If current cash or credit can not carry me into the future enough - I would figure out a way to bring in a little income. Who cares if it is not the field I used to work in. Cash is cash.

THEN - THE FUN PART....

Phase II - THRIVE.

FIRST - WHERE. You need to figure out your direction. Where do you want to be in 5 years? What do you want a day in your life to look like at that point? Where will you be living? Are you stated that you are inspired by the rich dad book.... what quadrant do you want to be in: employee? self-employed? investor? or business owner? This is your GOAL. This is your DREAM.

NEXT - HOW. How will you get to this point? If you want to be an "investor" what will you invest in? Begin to learn all you can about that area. Maybe you want to be a business owner. What business will it be? What need will you fill? Begin to learn all you can about starting a business and about the industry you have decided on. Set benchmarks. Set timelines. This is your PLAN.

NEXT - ACTION. Get going on the PLAN mentioned above. Make a schedule for yourself and march down the path you set out... meet the milestones you laid out along the path to your dream.

Also keep in mind... NO EXCUSES ALLOWED.

Make these changes in your language and your thinking.

:smx6:Not, "I can't"
Rather, "How Can I?"

:smx6:Not, "I don't have the money"
:banana:Rather, "How Will I Get the Money?"

:smx6:Not, "I have so much debt"
:smxG:Rather, "I am building my dream!"

 

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[nomadjanet]

You are an electrical tech? Does this mean an electrician who wires houses & buildings or something else? If you are an electricain there are lots of jobs. Look and see if there are any Mr. Sparkey franchises in your area. They pay really well, usualy based on production (similar to commision based pay). What does your wife do?
What are the immediant needs in your neighborhood? Day Care? Lawn Care? Home maintenance? Money in all three. If your neighborhood allows it you could run a business out of your home which would make money for the payment and help you have a home office write off.

What are the needs of your neighborhood
What are your skills or assets that apply to those needs
If you don't have the skills but you have some other asset you can hire the skills
If you have the skills but not the asset you can rent the asset

 

[yveskleinsky]

If you are thinking relocation, I live in Alamogordo, NM. The cost of living here is really low. Our city electrical inspector just quit. Just a thought.

 

[On the way up]

Wow... overwhelming responses. I will try my best to respond to them.

Russ H: Yeah, your partially correct. I am looking for positives. If I focus on the negatives too much, I'll end up on my face. The negatives are a small motivator to get my arse in gear and come up with a solution. As for the job, I could find a few jobs in my area (the one's that didnt tell me I was overqualified or dont have specific experience) but it wont pay for this house and us. It has to be one or the other. My choice is my family first. So, if I accept a low paying job, I will have to foreclose since I will eventually run out of money in my account. Not acceptable. There has to be something else. I will agree with your point on the new start. This is the second time this is happened (this time its better and its worse), which is why I have started on "educating" myself. I'm rather sick of this scene. No one should be accustomed to this cycle.

yveskleinsky: Hello again . So, at first I wanted to sell. Problem is, it isnt. So, I'm looking for options. Finances are: unemployment (hopefully soon), severance (11 weeks of pay/benefits), and my nest egg (not millions but modest). Between all of those, I have probably 8 to 12 months before I get in trouble, and that will leave me penniless. I'm aiming for 2-3 months since that may put me in a better position than before.

AroundTheWorld: 1) 2 kids and a wife 2) no other income, wife makes enough to pay for daycare and thats about it. No family in the area to watch the kids while she works. 3) No BUT rent will help considerably. With a little cooperation from the bank (80/20 loan, 20 is variable and much higher interest rate. Trying to negotiate for better terms), I should be able to make up the difference and survive in the new area until I sell the house. 4) I have skills, learn new ones all the time. For instance, I taught myself how to rebuild a front suspension on my old Corvette. Never had a single day of automotive training in my life. Granted, that particular ability may not make me a millionaire though its my example on my ability to learn. I have the ability to learn most things (never been good with foreign languages). Not only am I capable but not afraid. Since no one is going to "give" me my chance, I have started makes steps to make my own chance. I been trying to learn how to translate my skills into a business... that is where the training comes in. So, I have the ability for phase II, I just need to learn the "how" part.

nomadjanet: I'm an electronics technician, not an electrician. Funny that you mention that though, one of the jobs I am interview for is for electrician work (long story). Like my profile says: Electronics Tech by trade, jack of all by nature. I have worked on electronics (in every form), electrical, electromechanical, and mechanical ranging from nuclear reactors, gas turbines, satellites, and in the semiconductor field as a repair tech. Trust me when I say, all of these things share some fundamentals but that is about it. Some call me overqualified, others not enough industry specific experience. The others, well, as I explained before they pay enough for house or the family. All except the jobs in other states which pay enough for the family and a rented house.

Whew... ok I hope that explains a bit. Thanks for your input, I greatly appreciate it.

 

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[On the way up]

If you are thinking relocation, I live in Alamogordo, NM. The cost of living here is really low. Our city electrical inspector just quit. Just a thought.

Well, one job I have line up is pretty much a definate and its in Phoenix. The other, which is better in some ways, is in Austin, TX. The unemployment doesnt really have me concerned, I can find other work. The house is my real concern.

 

[AroundTheWorld]

oookay.. you are not really concerned about loss of income. It is what to do with your house that is of concern to you... (if you move or if your next income source is less than you are accustomed to)

is that right?

How much equity do you estimate that you have in your house?
If you were to rent it out - how short would you be? (after you pay your mortage, taxes, insurance, maintenance etc.) ?

 

[Sehcill]

wife makes enough to pay for daycare and thats about it.

That...makes no sense. Your wife works so she can pay someone else to watch the children? Have her stay at home, watch the children and learn about something, anything profitable. :smxB:

-Jason

 

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[Russ H]

This is the second time this is happened (this time its better and its worse), which is why I have started on "educating" myself. I'm rather sick of this scene. No one should be accustomed to this cycle.

We've all taken it in the shorts at one time or another.

Just keep learning from the mistakes. That puts you ahead of the folks who get scared and crawl into their shells for safety.

Have you tried the PLAN exercises yet?

Just curious.

-Russ H.

 

[On the way up]

Aroundtheworld: 1) I'm not too concerned about the job because I have two jobs lined up. One is done, waiting for the offer. The second looks very positive and will most likely end up with them making me an offer. The guarantee is a great job in a place I'd rather not live with a really great supervisor. The second job is a good job that I have current experience in a place I really want to live that pays well. So, I'm rather positive the job problem will no longer be a problem in a week. 2) As for equity, there is none. There was equity; however, prices have dropped significantly in the last year. With the 18 month inventory in this area, house prices have a huge range right now (+/- $50k). 3) It really depends. I wont even consider renting it unless the second loan lender will lock the rate. I wont take the chance that the rate will increase to the point I cant afford and creating a breach of contract with my tenant. At the current rate, the spread between the loan and rent will be somewhere between $600 - 800. That doesnt include the $5k property taxes and any sort of upkeep. I spoke with a VP in the lending department of my second loan lender. He is going to look into what can be done. I am not holding my breath but I am going to do what I can before my hand is forced.

Sehcill: She doesnt work, hasnt worked since my first child has been born. That was more of a point why we are a single income family.

Russ H: Which plan, the thrive plan? As I said, I have been working on the "how" part. What skill do I have that translates into something someone wants? Investing also seems good if I can keep my "emotion" out of it. On paper, I have done great. In real life, I didnt do as well and it was because of my emotion. I get that in check (which will come with confidence), I think my real investments will do great as well.

 

[Russ H]

On the way up
Russ H: Which plan, the thrive plan? As I said, I have been working on the "how" part.

This PLAN:

http://thefastlanetomillions.com/showthread.php?t=544

Admitedly, I've only outlined the first few steps. But they take a little bit to work on (you need "marinade" time-- time to let the ideas and questions soak in).

It's easy to set goals and then figure out "how to" get to them.

It's harder when you accomplish a goal and then wonder why you wanted it in the first place! Or as is more common, you achieve what you set out to achieve, but feel empty when you get there, and don't know why.:bgh:

The link above is a step by step process to try and figure out your CORE characteristics.

What makes you tick.

This is an ongoing process-- it seems like the more I do this, the more I gain new insights into what drives me.

It's a journey.

Try it.

-Russ H.

 

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[On the way up]

Sorry about the silence, yesterday was an extremely busy day for me. Seems that some lines of communication went down between my recruiting company and possible future companies. Spent pretty much all afternoon and part of the evening getting the right information to the right people.

Russ, I took a gander at the link. Yes, I have started it but it wasnt this week. Getting to know myself is something I have been working on for awhile. I started looking at "what I am good at", "what am I capable of", and "what I cannot do". The cannot do list is what I have been working at but it takes time to teach yourself new skills without a mentor since you have to make sure your doing it right.

The "what do I want" section I answered first though you had a good point by knowing who you are first before setting a goal. I have quite a few wants, so the list is rather long. Suffice it to say, my ultimate goal will allow me to get some or most of my wants. I am going to work on the "like" and "dislike" lists, I think that is a good idea.

 

[Russ H]

On the way up:

Work on the "WHO AM I" list first.

(your CORE values/traits)

Everything else is meaningless until you do this.

-Russ H.