Could be I’m just getting old, but my general barometer for a good movie these days is if I stay awake. “The Founder,” which came out this past spring certainly kept me awake. My favorite “Mr Mom,” Michael Keaton, stars as McDonald’s founder Ray Kroc. In a nut shell, the film chronicles McDonald’s rise from small burger joint in California to the franchise juggernaut it is today. The story is told primarily from the perspective of Kroc who stumbles upon the McDonald brothers and their San Bernardino restaurant in 1955. He witnesses their attention to detail and the incredible “Speedy System” the brothers have created for their kitchen. Kroc then sells them on the idea of franchising and the rest as they say, is history.
I remember reading a review of the film when it was released. It gave me the impression that Kroc was some sort of monster who stole the McDonald’s from the McDonald brothers. At the time, I thought, ‘I’ll pass on that one.’ But a few weeks ago I came across the film at Red Box. (Yes, we still use Red Box. What’s Netflix?)
To my surprise, I found “The Founder” to be really interesting and excellent story telling . And while Kroc is vilified for his ruthless drive, I found myself inspired by his grit and tenaciousness and ‘persistence.’ In spite of everyone, including the McDonald brothers, telling him, “Franchising can’t be done.” He did it. And even more interesting, he was not a young man at this point in his life, he was in his early 50’s, an age when most men are looking to slow down or have slowed down. How many people have their greatest success after 50?
After watching it twice, I tell my wife, “You got to see this movie. Ray Kroc is my new hero.” (I tend to live in hyperbole). So we sit down and watch and when it’s over, she tells me she thinks Ray Kroc is an awful man. ‘What!?!’ Got me thinking though.
The idea here at the 032 is to stay light and leave politics and other hot button issues to other people. But we live in an extremely divisive age. Like a lot of people, my values have been challenged by the politics playing out before us. Maybe when I was younger, before I was married and had kids, I would have been more offended by Kroc and his business practices. Maybe I would have felt worse for the McDonald brothers for having their life’s work swooped out from underneath them. But I don’t. If the McDonald brothers simply wanted to keep their one location and operate it the rest of their lives, they should have kicked Ray Kroc to the curb when he proposed franchising. Moreover, the McDonald brothers were smart guys, they should have looked out for themselves. They were grown men too.
We’re sitting here in this day and age where government continually argues about how it’s going to take care of everyone. Give everyone healthcare, give everyone social security, allow the refugees throughout the world to come here. It sounds good. But guess what? There ain’t enough to go around. Part of the United States ability to play Mother Theresa to the world is partly because of the successes of the Ray Kroc’s. Strong capitalism with economically stable upper and middle classes, and a shrunken lower class. That’s the only way socialistic policies work.
In reality, I relate more to the McDonald brothers. I like systems. I like working on a small scale. The idea of having one restaurant and running it very well is appealing. But that’s probably why I’ll always be small time. Nothing wrong with that. But it doesn’t drive tax dollars, and without some big-time movers and shakers out there, I can’t operate my boutique, mom and pop business. So I’m ok overlooking some ruthlessness. Because to give it away, you first have to have it. And this is how we got it.
I’m not blind, I can see where my wife and reviewers of the film thought Kroc was over the top. He could have, should have, honored his “hand shake” deal with the brothers. Believe people can be successful in business and still be honest. No question. But seeing this portrayal of a guy working his tail-off, selling milk-shake mixers out of the back of his car before finding his greatest success should be nothing more than inspiring and motivating to everyone. And that’s that.
Think we can all agree that the draw of Phoenix is undeniable. Being that we now have the 5th largest population in the country sort of confirms this point. And with all these people spilling in here, Phoenician culture continues to evolve and grow. Even my favorite band Son Volt came this spring. (See Crescent Ball Room). We have arrived.
But here’s the thing. Somewhere in this Valley; there is something for everyone. And there are plenty of people who prefer the outskirts of the Valley. In fact the outskirts of the west and east valley’s have always been a sort of a haven for new residents. Why? 
And yeah, you better like Chilis and other chain restaurants. (Aint nothing wrong with Chilis.
Up in Cave Creek is a little different. Development isn’t quite as far along. And the remaining plots of land that have been skipped over are larger than down in the city. Because of this the builders are still putting houses on them. But this isn’t like 25 years ago when they would build 2500 homes over 4 square miles. The new developments are 60-100 homes packed in whatever space they have, zero lot lines. And sometimes, these new developments don’t always mesh with the existing landscape. You may end up with Sanford and Son living across from the entry of your new development. (Sanford couldn’t be bought out). And we’re not talking entry level pricing here either, these places start at 400k and run up to a million+ in various sub-divisions (rhymes with Boll Truthers).
Why pay such a premium? For those that are past the starter home phase or looking to get out of the rat race. Cave Creek is the place to be. Along with having a really cool cowboy town near by, it also has good access to Scottsdale, North Phx and the West Valley. But the main thing that has always been a no brainer about Cave Creek is the fact that it butts up to Tonto National Forrest. This is great if you love boating and the outdoors because the access is right there. But from a real estate perspective it also caps the development moving north. If you go east, west or south in the Valley, sprawl goes on and on. One minute your living at the end of civilization with views of forever, next thing you know your property values have just taken a dive because they started a new housing development across the street and the houses are bigger, but cheaper. Not cool.
Ultimately there are a multitude of great places to live in the Valley. Have even heard people rave about how great Maricopa (the city) is. Will take their word for it, I’ve never been to Maricopa and wouldn’t try to sell anyone on living there. Think for buyers, having these conversations with a Realtor can be very productive and informative. To arrive in this vast valley and think, “I’ll just look everywhere” is probably a little naïve. A person will probably just become more confused by the process. But hey, looking for a home should be fun. Just need to do some homework eh?
Am beginning a 2 part housing series of what and where to buy in the Valley. Wanna say it’s investigative, but it’s not, just my observations from talking to people and driving around hustling a buck. Have watched a lot of Magnum PI though, so I kinda know what I’m doing.
Ok I get it. (I don’t actually, but accept it). People are saying they want new builds with a “Smart Home” component that comes complete with a new roof and a/c. Turn Key? Kinda. To varying degrees the new houses are being built as ‘smart homes’ or in some cases wired up for smart home capabilities that the owner can take advantage of at a later date. And yes they are new.
And how about those houses that were built 40 years ago down in North Phx? The smallish looking ones with low ceilings that many people wont even look at. The ones with block walls that are incredibly energy efficient. They are a tremendous value, and because they are relatively cheap compared to new builds, there maybe extra money for remodeling and landscaping in the budget. And guess what? They are generally located in mature areas of the city that have quite a bit to offer in terms of restaurants and shopping.
What I’m saying is that new houses might look great on the inside, but there are drawbacks. Be aware. The smart technology also requires maintenance and at times have seen it be more of a hassle than a help.
My friend Matthew of the 541 up in Wisconsin sent this over. Our friend Mittens was the source of some great chuckles awhile back. Seems he’s a bigger star than I realized. Apparently he has quite the modeling career going and has been immortalized on this stein from Anheuser Busch.
Bet I know a guy. Wears white sun glasses.
So I go over and take a look at this very old, somewhat dilapidated trailer they had bought. Would describe it as, “One mans trash is another mans treasure.” No matter, they were confident they would be able to transform it into a first class hunting/camping trailer.
Within a month or so they had done their part and rolled it over to my house. For me, this was one of those projects that takes my mind off work and refreshes the brain. Like a lot of people, when it comes to work, when the phone is ringing it’s usually because there are problems. Roll with the punches eh? But it can get tiresome. So how can I get a re-charge? For me it’s usually working with my hands. And since I had agreed to be paid in beer, I felt like I could take my time.
Fast-forward to last week. Got a few hours here and there and knocked it out. Afterward had the boys over to celebrate, recap our journey and pat eachother on the back. Men being men. Kind of like it might have been in the old days, before guys played video games and obsessed over tattoos. Just sayin.
Not trying to be snarky or anything. But to me, it feels like there is more and more a disconnect in society. People are becoming increasingly isolated and less reliant on one another (Selfies? Really??) This project was fun because we collaborated our skills and built something pretty cool. It wasn’t just one guy and there was very limited ego involved. But it took welding, machine work and woodworking to complete. Not many guys versed in all those skills. Takes a village eh?
Along those lines, my mind wonders, “What else can people do to shake themselves up?” Bike riding is really big here in Cave Creek. And recently I saw an article discussing much of this subject by former Phoenix councilman Bill Gates. Gates was instrumental in jump-starting the re-vitalization in North Phx. He hits on a lot of this topic as far as getting out with people and being more ‘communal.’ It doesn’t have to be a building project, just anything that gets people doing things together. And while I am not seeing a ton of usage of the bike lanes on 32nd street, I am hearing of groups of people in North Phx getting together on the weekends and riding. 
Good for them. Keep shaking it up! (Here is a link to that article) 
It’s the best.
I go on to tell him how I used to sit out on my back patio at my old place in my underwear and how my neighbor would poke his head over the wall and want to talk. “Sort of a false sense of privacy?” I say, and go on to ‘explain how I would ask my neighbor not to do it anymore, but he still would.’ But the dad is looking at me like I’m nuts. “Why do you need to sit outside in your underwear?” he asks. “Because, I like to! 
Why don’t you like to sit outside in your underwear?” I ask. Tells me I’m crazy. No kidding eh.
Speaking of smart guys, Son Volt Properties picked up a new client last month. He’s an old boy from California who just bought a second home here in Carefree. It was interesting because he hired me while he was still in the process of buying. Usually my clients have waited a couple years before seeking out my services, thinking they could just lock the house up and leave. Usually it takes a few things getting away from them before they realize they need a point man here. Think about it, who wants to show up next season and find the roof leaked during the monsoon? Or to discover the landscapers stopped doing their job once the house had been vacated for the summer.
But the new guy is on it. Said to me when we met, “Got to have a guy down here watching things.” “Roger that, here to be of service.” I say. A day or two after closing, I had my pool guy (Kevin of Black Mountain Pools) and my landscaper (Roberto of RA Landscaping) on the job. Kevin does a first rate job with his business, and Roberto is reasonably priced and does a great job as well. There are also some small electrical projects that I am coordinating with a contractor. No fuss, no muss.
What if my new client had to find these people on his own? I’ve gone through a lot of landscapers and pool company’s and cleaning services and HVAC repair…to arrive at the people I have now. The best people, don’t do much advertising. They can be hard to find. Either way, my client was heading back to California and won’t return for a couple months. He really didn’t have time to deal with it all. No worries, I have everything taken care of. Best part for him, I’ll bet I’m saving the old boy $100-150 a month on vendors. That’s smart.
Along those lines, as more and more people enter into these transactions, it’s important to keep your eyes pealed and your head on a swivel. Just happened on a website by Quicken Loans. Read a passage about ‘closing costs.’ As follows:
The second sentence where it states, “Mortgage closing costs cover expenses…”
Not trying to make trouble here or throw Quicken under the bus, but there are fees all over the purchase of a home, so let’s keep it honest. The inspection will run 300 – 500. Possibly you friendly realtor will take care of that cost (always a courtesy to my clients). Title insurance is about 1000 – 1300. And a buyer can end up owing up to a half year in taxes, 1000 – 2000. On the average 300k transaction, a buyer with financing is looking at 2000 – 3000 in costs in addition to the 3000 – 5000 in closing the loan from the lender.
The other reality, a company like Quicken is going to have extra fees. Their whole marketing campaign is directed toward making the consumer think they are sort of ‘fast forwarding’ through the loan process. Of course that will cost a little extra. But really they aren’t doing anything different than other lenders. Here’s the deal, find an independent mortgage broker who can shop a few lenders and find you a good rate with reasonable closing costs. Done.
Buying a home is not cheap. Even with all the lending incentives available, it’s going to cost 8 – 12k on the front end of the transaction. So get with your friendly realtor and go over everything in advance. The fewer surprises the better eh?
Going back to ‘keeping your head on a swivel.’ With the warm weather descending on us, starting to see some snakes. Saw 2 last week. Think the best rule of thumb is to just sort of pretend they aren’t around and you’ll be fine. You know, ‘hear no evil see no evil.’ Works for me.
Had a chance last weekend to drive up north on Hwy 89 to Hwy 160 east to Colorado. This route runs just south of Southern Utah. Incredibly scenic, great rock formations, good road conditions, the whole deal. Been all over the West the last 25 years, never been up that way. Funny.
Destination: Pagosa Springs Colo. The brother of my wife was getting married. Heard it said, “10 pm in Pogosa is like midnight everywhere else.” Not sure what that means, but it sounds like the place has a reputation. The town sits in the southern end of the state surrounded by the San Juan mountains. It’s known for it’s hot springs. It is quite beautiful.
The weekend was action packed. Dinners and parties all the way. My wife’s family and I all shared a lodge together called Winslow on the Shire. It’s a Tudor style chalet nestled into the Rockies. Place can sleep as many as 30 people. Believe we had 25 or so. Guessing it’s 10-12,000 square feet (couldn’t find out exactly). In fact all the wedding activities took place there. The grooms dinner, wedding and reception. It’s hard to imagine a place that could accommodate such an event. But it worked out well. The sun shined, the mountain beamed, the kids played and we all had some good chuckles.
As for the bride and groom, Kari and Luke. They are as fine of people you’ll ever meet. Wish them the absolute best. They are currently driving (or already there) to North Carolina for their honeymoon. Hope he has a good map. Hear he isn’t very good at directions (see map).
Lastly, find it important to always provide some sort of tip, usually in the realm of property management or real estate, but this time I leave you with some personal hygiene advice. For me Carmex, has been incredibly helpful in battling chapped lips. Growing up in Minnesota, I always had one in my pocket. Find it can be useful in the desert as well, or even this weekend up in Colorado. But here’s the thing: You can use Carmex on anything that is dry or chapped. 
What an ending to the Super Bowl. Incredible game, incredible finish. Began the game rooting for the Falcons, but by the third quarter I was rooting for the Patriots. What can a guy say? Greatest of all time? Think that’s about it.
Joking aside. What stands out about the Patriots is their discipline. Discipline seemly at every level; from ownership, to coaching, to players executing all the way down to the last minute. All hands on deck, everyone pulling in the same direction.
And on the basketball side both Mike Krzyzewski and Bob Knight coached there as well. Anybody ever heard of these guys? It’s pretty much the Mount Rushmore of coaching. Holy cow!
Last thing on the football front. My Friend Tim (formerly of the 331), has been a life-long San Diego Charger fan. Really disappointed for him that they have moved to LA. Just doesn’t seem right. Chargers belong in San Diego, Colts belong in Baltimore, Oilers belong in Houston. Know what I mean? Raiders probably belong in Vegas, but now that’s not going to happen. Oh well. RIP Bolts.
Lastly, on the property front. With all the rain this winter, I am seeing a lot of termite activity at the properties I manage. Not a huge deal if it is treated, but if it’s not, your house may fall down. Just a heads up, eh?
It’s only taken a little over a year and half but ‘the032.me’ just went over 2000 reads. Much appreciation to anyone and everyone who has ever read this bit of goofiness. And I really appreciate those of you that have encouraged me to keep it up. I love it. Thank you, thank you!
At roughly that same time, the 032 started an urban revitalization project. The city began repaving and lining 32nd Street with bicycle lanes as well as several other improvements. In Real Estate we call this ‘addressing the deferred maintenance.’
There has been a lot of change in this community in the last 20 years, namely state route 51. Before that, 32nd Street was the main drag from North Phoenix to Central Phoenix and the community prospered because of all the traffic. But when the 51 was built it created a de-facto bypass. This is the same story as all the small towns on Route 66, but in an urban center. 
And like ol’ Radiator Springs in “Cars” after awhile the place looked like it had seen better days. In this case, the city (not Lightning McQueen) finally came back around and began fixing up main street (urban renewal). The business have followed that lead and started reinvesting in their own places, hoping all the while people would come back and the community would have a sort of renaissance.
The connection between the two zip codes, the 032 and 028, is that the 028 has a nice but modest residential area that sits just south of the 032 and butts up to Paradise Valley. It has been a haven for investors for a long time. Because of this proximity, people living there are going to patronize the business of the 032. It’s convenient. And for potential buyers, the better the 032 looks, the better the 028 looks. (Been yapping about this for awhile now eh?)
So I put my money where my mouth is and gave my client the grand tour. We first stopped for lunch at Casey Jones. Figured the ol’boy would like the trains running around the ceiling, and he did. When finished, we headed east on Bell passing the remodeled AMF Bowling Center, over to 32nd Street south. The north end of 32nd street is still mainly a hodgepodge of mom and pops, but businesses like A to Z Equipment Rental are right there, which can be handy.
As we got south of Greenway there is a nice run of parks and churches as well as a new school being built by Great Hearts Academy just north of Thunderbird. He then noticed the Original Breakfast House on the east side of the road, which he has heard good things about.”Hey, let’s grab lunch there next time” he says. Finally as we approached Cactus, the view of Piestewa Peak and the surrounding mountains are upon us. As we arrive at our destination, before seeing any properties, I turn to him and ask, “Whatya think?” (I’m nervous because of that ‘expressed skepticism.’) But he smiles and says, “Looks pretty good.”
Roger – that.
Son Volt Properties 602.791.8347 