As today is first day of 2017, like in the past I usually write a short summary to remind myself what I did wrong from the previous year.....
2016 was started promising but toward the end of the year, I begin to feel the softness of the market, we may still ending the year with record collections but I foreseeing a downtrend from here..
Our plan for 2016 was just a continuance of 2015, get us in position and to prepare for the survival of next RE down cycle, we want to able to survive on 70% collection rate if market goes deep south, so we continue to pay down our mortgage balances and was able refi our primary home, today we are close to 35% LTV on our overall portfolio.
Now the series of possible mistakes I made this year............
1. the acquisition of Mulberry Apartments under TZLC Flag, this project was promising but the delay is unbearable, the city is tough to negotiate, so far we still in a limbo....
2. I took over operation of the family restaurant, which is killing about 30% of my time, this can not be continue in 2017.
3. The opening of the 2nd restaurant, it burned about 65k of my cash reserve and most likely it will end up as a lost.
4. The lost of several key employees, Carlos in Autumnwoods apartment, Randy in Country Club Apartment, had drag the performance down on TZLC properties.
5. I position John in Autumnwoods after Carlos, and this maybe a mistake, as John been with me over 13 years and he is not happy there and I must rethink about this....
...............................
2017-01-01 14:34
It has been more than 4 years since we started
our first group project. So far we have 12 projects, more than 1000
units. It is time for consolidation and reposition ourselves for next
cycle, including adjusting our strategies. Yes, cash is the king!
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