There is an area in the greater Phoenix area called “Queen’s Creek.” It’s too far from the center of town for me, but it’s a very nicely developed area. There are great schools, parks, good (but chain) restaurants and new houses. About 1 1/2 years ago when the market around here was exploding, a nice house there went for about $400,000. But, there was a “wink, wink” provision. The homeowner ended up getting $100,000 back by claiming they were a landscaper or contractor and that the money would be used for extras such as putting in a backyard or pool or something like that.
So the house was really worth $300,000, but now had a $400,000 mortgage. Then the market went down. And as happens, there are people who have life incidents so they can’t hang on to the properties. So, the $300,000 house with the $400,000 mortgage is now selling for $200,000 - $250,000. And I’ve even heard of some short sales that went for around $150,000. Now we’re getting to the point where the price is ridiculously low. AND that is hurting them even more.
(Great reference here is Robert Cialdini’s book “Influence”. Prices can be too low to make a sale)
I was on the plane from San Diego to Phoenix a few weeks ago and sat next to newly minted college grad who was going to Phoenix for the first time for a new job. She’d been in San Diego for training and had never set foot in Phoenix before. She had a week to buy a car and find a house to rent. She showed me the ads she’d circled to check out for houses. I saw she’d crossed off all of the Queen’s Creek houses although they were geographically the best placed. Her comment was that there must be something wrong. There’s no way you could get a 3500 SF, beautifully landscaped, for less than $1000 per month. I told her to check it out. It was probably right!
This all leads though to something that Aaron Van Trojen (Morgan Financial) said to me. He said, “In 10 years, there will be millionaires who say they made their money all because they bought 10 houses in Queen’s Creek in 2008.”
I loved that quote and have used it myself. But I was thinking about how it applies to the businesses we are starting now. For many of us, the economic conditions are affecting our current models and so we’re having to think outside the box for new ways to build our companies and create cash flow. Right now it might feel like basic survival, but the fact is the things we do now will likely still be around 10 years from now.
Just like the house worth $300K that you got for half price or the monetized blog you started or the Internet affiliate program you began or the new niche you started for your business or the MLM that you got involved in for quick cash, if you really follow through, where will you be 10 years from now?
It’s quite possible that 2008 might be the year that changed everything for our financial lives. It was the year when we examined what was most important to us and had the time away from the frantic busy-ness of over-the-top business to chart our course. It was a blessing, a time for some reflection.
What will you say 10 years from now?
June 28th, 2008 at 10:01 am
I am going to say I am glad I went to a seminar in San Diego. My wife and I will be sitting on a beach enjoying the sunset talking about all the people we have met that started from that seminar.
2008 is the year that opened the doors for us.
I won’t have to wait 10 years to say that.
June 28th, 2008 at 12:17 pm
Thanks for the post Mark. I love doing seminars for a lot of reasons. For me, it’s a chance to see what’s going on for other people. I know I have a tendency to get too focussed and think what’s going on in my life and in Phoenix is true for the whole country, and of course, that’s not true. I also try out ideas and see what other people can grab hold of. And, bottomline, I love to teach information in a way that empowers people. That’s the huge win for me.
The reason I attend seminars (and my family goes to a lot of other people’s) is (1) for the information and (2) THE BIGGEST REASON for people we’re going to meet. In fact, I might go to a seminar where I couldn’t even care less about the subject matter, but I want to meet the people who would be drawn to it. The relationships are what are critical.
RobF from TaxLoopholes Forum used a phrase that I’ve adopted as my own, “The more high tech we get, the more high touch that people crave.”
A lot of us are building models based on the Internet in some fashion and as we move away from the social interaction, social networking is growing.
People still want/need a personal touch - a phone call, a birthday card - whatever. I think combining those in the most leveraged way you can (phone calls, for example, could consume your time quickly if you do them one-on-one) with the Internet will be the new way of doing business.
June 28th, 2008 at 12:39 pm
Oh, oh, oh!– now we’re talking one of the biggest trends I see continuing… social isolation and the need for human contact.
isolation in living environments + computer age = opportunity
June 28th, 2008 at 2:22 pm
Does anyone remember the short story from years ago called “The Machine Stops”? I read it probably 35 years ago. It was the unbelievable science fiction scenario where everyone just stays in their little living spaces all day long and interacts via computers.
In the story, human contact is repulsive. That’s the part I don’t believe. We are social animals. For the most part, we crave each other…at least in small enough doses.
I agree Beta J - opportunity for human contact maybe one of the next biggest trends.
June 28th, 2008 at 3:42 pm
What’s really interesting about niches like this in terms of IM, is that they’re wiggly to try to capture… most people don’t want to think of themselves as deficient or defective, so they don’t enter the real problem into a search engine.
Most people wouldn’t search terms like ‘I have bad breath’ or ‘I’m too difficult to get along with,’ at least til the problem got too big to ignore.
June 29th, 2008 at 6:59 am
This is a very interesting topic for me.
In the past I used to question why my dad didn’t do any of those things that mad a difference and why others did. How come that he did not see what was coming when all the signs were probably out there. Suddenly it hit me. I was my dad, just 40 years later. There are many signs out there. If I pay attention then I will notice what is different and what trends are happening and I’ve started looking at how to profit from them.
So, thanks to spend time thinking about this I’ve come to the conclusion that 2008 is my year of making a big difference in my life and be able to remember later that 2008 was *the* year when things really started going from good to great for me and my family.
I may be wrong, but I’ve made a personal decision of seeing this year as the one where tings are great and when many opportunities are realized.
June 29th, 2008 at 7:06 am
I reserved this. Hopefully it’s the same one you mentioned.
- The eternal moment, and other stories
Forster, E. M. (Edward Morgan), 1879-1970.
A collection that explores the human spirit through a series of fantasy vignettes, including “The Machine Stops,” “The Point of It,” “Mr. Andrews,” “Co-ordination,” “The Story of the Siren,” and the title story. Publisher: Harcourt Brace Jovanovich, Pub date: [1970], c1928.
June 29th, 2008 at 4:21 pm
Sometimes I find it a good idea to see how far I’ve come. Like looking “back” for ten years.
I have a lot of territory I want to cover in the next few - 10 years, and it is pretty daunting until I see how much I have accomplished in the prior 10 years. Even in the last one year, I would not have believed how far I could go.
It’s nice to know I have it in me!