Well 2012 seems to be here and my life did not get sorted out before it arrived. So I'm going to set some goals, though I feel like my life is still unpredictable and might head in wild directions.
Goal 0: Implement CA plan. This is to sell CA, pay off our primary mortgage, CCs, HELOC, lawyer, and find a safe place for the remaining money to rest.
Goal 0A: Get a lawyer to draw up paperwork sorting my inheritance from BB's financial contributions. My inheritance is my money unless I mingle it, which I have by putting so much into real estate, and BB has agreed that we should seperate it on paper to put my mind at ease.
Goal 1: build up a $5k emergency fund for each property we own.
Goal 2: by May 2012, go back to saving $200 month for a replacement BB car.
Goal 3: Start horse riding again.
Goal 4: Start a ROTH IRA for BB so he can save for retirement.
I guess those are my goals. My head is mostly filled with plans and it's hard for me to separate the two, though I do think it is important to create both plans and goals.
I try to look down the road and envision what I want next Christmas to look like, but it's so fuzzy. I'm still wrapping my head around the changes going on. BB retiring from baseball and going head on into a real estate investment career.
But that means good things are on the horizon. BB has found another career hes really passionate about. We just need to do it right.
Viewing the 'Baseball Boy' Category
Well 2012 seems to be here and my life did not get sorted out before it arrived. So I'm going to set some goals, though I feel like my life is still unpredictable and might head in wild directions.
I am posting as a way to organize my thoughts. Actually this is a vent. I need it. I wish I had great news to post, but my luck has not been going in a positive direction lately. Everything is still ok, just not making the progress we were making in the past.
A lot of changes are going on right now. So Iím trying to mentally stay ahead of each step.
The CA condo will be going up for sale in Feb. BB is going out there for 10 days in Jan to get it ready to go on the market.
BB will apply for disability in January. We are meeting a disability lawyer in late Jan to get information and involve him (lawyer) in the process. We were told to apply ourselves on the 1st even though BB will likely get rejected, so no time is wasted.
BB is going to have another back surgery. He went to the Dr a week ago to fill out disability paperwork and the Dr wants to remove the screws that are in the back to try and relieve some pain. This will be a week long recovery and then some rehab, so not a huge surgery, but also not a simple procedure. Especially since the Dr is in FL, so weíll be 6 hrs from home for the surgery and recovery.
BBís parents have been getting a divorce since August. BBís dad has decided to move to GA and restart his life.
BB and his dad have decided to start a real estate business together. This will allow BB to have an income without working if he gets the disability. BB will be an investor and his dad will be the other investor. Together, they are not too handy so they plan to sub out any work that needs to be done. I want to get behind this plan, but Iím just not really on board. They talk about this plan several times a day, but I donít know. Honestly, BB wonít be contributing very much to the company b/c he doesnít have any money to invest. I think his dad feels bad that BB is injured and is facing 30 yrs of not working and is trying to help BB by starting this company.
I think they will be ok- I am hoping they donít go overboard with the leveraging. Right now they want a few rental properties and once they have a steady income, they talk about flipping one house a year. But I just sigh when I think about it.
In the beginning of all this talk, BB was talking about buying properties for ridiculously low prices. $50k for a building and putting in $10k of remodeling to get it renter ready. The only buildings in that price range are falling down. I pointed that out but BB was confident he could find deals. He said he has been on the MLS and there are lots of good properties in that price range. So I let it go.
In the beginning, they were not going to start until the divorce is final so the business does not get dragged into splitting assets.
Guess what? BB has started looking at properties. Guess what? All of them are over $150k. Suddenly these are the good deals and less than $150k costs too much to fix up.
I guess I think this business could go somewhere (there certainly are great deals out there) if BB had some patience and if he was using his own money (which he does not have). He has good intentions. He thinks he can play this game and come out ahead. But every time he finds a property he likes it is ďthe deal of the yearĒ and he is fixated on it and making an offer and not letting it get away. He has no formula to see what price he needs to get it for, guesses at a rental potential, no checklist to see about fix ups. He uses his gut and wonít listen to anything negative about the place.
I hate to be a Debbie Downer, but I find myself going extremely negative on the property trying to get him to come to the centerline and be neutral and objective. His energy and mind gets so pumped up and it causes me to stress and want to cry because he is being so (happy) emotional. I have to step back and retreat because his energy is too overwhelming for me. So I throw up my hands and say that I donít want my name on this plan. But then later I insist on researching and seeing the place because I donít want my husband getting involved in a bad deal and dragging down our future.
He allows himself to get fixated on properties without even going in them. Then when he goes in them and sees the reason why no one else has bought the place, he is so disappointed. I keep telling him ďthere must be something wrong with it, why else has it not been purchased?Ē But he thinks itís because he found it first, not because more experienced people than him have rejected it and itís waiting for a sucker buyer.
And if the property does not work out, (thankfully none of them have), he is crushed. He starts searching the internet again and talks about how disappointed he was about the previous property.
And then he finds a new property to be excited about in a day!
We are going to look at another property today. Itís huge and the outside is beautiful. But itís in a non desirable neighborhood. Itís actually one street away from my 1st house that we bought (that I still love). Now that we currently live in a better neighborhood than that area, I have perspective and can see how that neighborhood is such a big obstacle to overcome when deciding where to live. And I can see how long it takes for neighborhoods to improve. When we bought our first house, I was sure the neighborhood was on its way up and would be a highly desirable area in a few years. Well, itís been about 4 yrs and the neighborhood has gotten worse.
I think it is renter ready (based on the outside and MLS pics). But for the neighborhood, I think it is listed slightly high. Itís a foreclosure, and the previous owner kept selling it back n forth between himself and his company at hugely inflated prices and taking out higher and higher mortgages on it. I think the bank was left with around a $300k debt on it. Itís listed for $190k now.
Even if BB gets it for $30k less than its listed for, which is what he is thinking to offer, I think that will be a solid price for the property. Not a deal and certainly not a steal!
But BB has a lot of emotions running through him. I know thatís whatís spurring all of this. And I donít know how to calm him down.
He wants to be contributing. He is being helpful in his housework but he wants to be making a financial contribution towards the family. Iím doing everything I can to not have him feel this way, but itís not working. He wants an income. Now. Today.
He wants to have a title. A career. He wants to be able to tell people he has properties and have a whole smoke n mirrors thing going that even though itís his Dadís money, he can call it his company. He doesnít want to tell people he is unemployed or on disability.
He wants to be using his time effectively. I am at work all day every day, and he wants to be doing something. Real Estate is something we are both interested in, and he wants to have something to show for his days. He wants a project.
I understand all these things, even though he has not come out and said them. I just donít know how to slow him down. He has a project; itís called our 1st rental property. And he ignores it. Right now itís pretty self sufficient, but it could always use some attention. But attention costs money and he doesnít have any, so he wants to use house money to put his attention elsewhere.
So all I do is keep hoping something is wrong with the properties he is finding. I keep hoping heíll burn out a bit and see this as a job, not something to be sacrificing for and chomping at the bit to do. Then he can get some objectivity.
But heís not going to burn out. Because his dad is all excited too. Itís a new chapter, a new start and his dad is as anxious to get started as BB. So they are on the phone all day keeping each other pumped up.
And the crazy way he and his dad have plans to move the money to avoid violating disability and keep it separate from the divorceÖ.thatís another story that makes me sigh.
Well, like it or not it looks like we are going to be a losing a full time income. Permanently. BB has never really recovered from his back injury and is making plans to go on disability. The surgery worked as well as it can work, but the Dr failed to tell us that all the ďthings that could happen as a result of the surgeryĒ are likely to happen. When a Dr. tells you about paralysis and death, you know they are telling you things to cover themselves, and that makes all the other things seem like stretches as well.
But BB only does have a limited amount of mobilization, and he is in different stages of pain constantly. He can work for a few hours at a time. But not be doing the same thing for those few hrs. If he is on his feet for too long, his back hurts. If he sits for too long, his back hurts. If he jolts his back- he is out for the rest of the day.
And now his body is having a negative reaction to the pain pills. Something about eating through his stomach lining. He canít take more than half his dosage without having severe stomach pains. Last season he was using pain pills regularly and his bile ducts leaked and had to be removed. After the surgery the Dr said he thinks it was caused from the pain pills. Another fact that they warned as a possibility that we didnít think it was a probability. I was kind of disappointed that he was being prescribed the medicine knowing it will lead to a breakdown of his organs.
So BB is going in for another surgery next month. To try and ease the pain for him. But the Dr has already said heíll sign off on disability paperwork to help BBís case.
So from the little data we have gathered so far:
BB must not work for 6 months before he can file.
Because he is young, he will probably get rejected a few times before it is approved. We can expect it to take up to a year and a half before the benefits start.
This is a decision that means BB cannot work at all while on disability. There are some instances where he might be able to do side jobs if he earns less than X per year...but itís up to the judge to set the parameters.
Because BB is young, has not paid much into the system and hasnít earned huge salaries in the past, I think we can expect it to be less than $1000 a month.
BB will get Medicare after he starts getting disability.
If BB ever feels better enough to get a job, he can go off disability, but he will probably never be able to go back on.
And I think I heard that he will get no Social Security benefits when he is retirement age. Something about him getting his SS money now instead of later.
So thatís the newest. We have been dealing with this for a few weeks now, but I am finally starting to get a little familiar with the terms and get my head wrapped around all this.
Wow- I really cried when BB laid it all out for me. I was so selfish for one night and BB was great about letting me have my moment to grieve all the future plans that we would be giving up.
And the details are still really blurry, but I think this is our new reality. Iím slowing allowing it to sink in.
Well, BB was slightly melodramatic when he explained the back surgery to me.
He wont be in the hospital for a MONTH. He will be there 3-4 days. He'll be pretty immobile at the house for 10-14 days until the staples come out. After that he will have pain but can do most average things.
Rehab will be about 3 months but he can do that here in GA.
So we are looking at about 2 weeks in FL for the surgery and recovery and then daily rehab here in GA.
BB is now pretty excited (if you can be excited about major back surgery). He talked to the big league trainer for his team who has rehabbed about a hundred of these surgeries. The trainer said BB will be in pain when he wakes up from surgery- but immediately he will notice that his legs no longer tingle or go numb.
The trainer also said that there are about a dozen players still playing in the big leagues after having undergone the same surgery. BB feels better that they are still able to competitively slide/run/throw with the best talent around- then he should be able to do normal activities like workout and play with his kids. BB is talking about being able to go on walks with me, canoeing with me, bike riding...all things he could not do before.
So now BB is ready for the surgery. He was upfront with his employer and told them what he was thinking. The team boss was cool and told BB to do what he needed to do. They are familiar with the surgery and know he will be ready to coach again next year. So it seems like we have job security but you never know.
BB said last night that he wants to use the Big League trainer for his rehab while he is recovering in FL. The trainer is an employee of the team and does not work through insurance- so BB will have to pay him out of pocket. I am all for BB getting quality rehab, but I was a little irritated when BB just casually stated that he wants to use the trainer and pay him on a per session basis. The guy is the head trainer on a big league payroll. How much money you think he makes an hour? I bet a lot. When we have health insurance that will pay for rehab! I'm going to let BB work that out on his own- I am hoping the team will help out BB and set up something with the trainer.
As for The Impulsive Purchase? Things are up in the air. We'll see.
BB needs back surgery. Major back surgery.
He ruptured 2 disks about 5-6 years ago preparing for spring training and has been gimping along since. He never went in for treatment because no team would take him and the liability of his injury if they suspected they would have to pay for surgery/rehab and maybe disability. So he pretended nothing hurt and downplayed his back injury whenever a team asked about his MRI results.
Now that he is no longer playing, BB went in and had a cartilage shot put in to relieve some of the pain. The shot worked for about 3 days and the pain returned.
This made BB even more sensitive to the pain and now he is almost in agony. He went to a Back Specialist who diagnosed it as Degenerative Disk disease and said there is no option other than surgery. They need to put rods and bungee cords in the back to lift the disks that are crushing each other.
So...this leaves so many questions. BB does not want to get surgery during the baseball season. He is open to the idea of getting it done in the off season but he is very concerned about still getting The Impulsive Purchase renovated in September. I told him to decide what he wants to do with his back and then we will schedule everything around that- but he is still prioritizing The Impulsive Purchase.
I am very confused. I dont know what we should do.
Here are the facts:
If BB gets back surgery- he will be in the hospital for about a month lying flat on his back. The Back Specialist is in FL and that's the guy we would use. He's the Back Specialist for all the baseball teams up and down the east coast. BB's father has offered to come down to FL to be there for BB because his Dad works from home and can work from FL.
I would still be in GA working and use my vacation days to travel to see him. There might be a possibility I could go on some sort of Disability? to care for him? I don't know if that is an option. There is also a possibility I could work from FL because everything I do is through the computer and phone anyways. That would be complicated and I don't think my work would like that idea. More than likely I would have to stay in GA if I wanted to keep my job.
After a month- BB would go through 3-4 months of rehab. He can do that here in GA. He would need to travel flat on his back which would be a little complicated but we could manage. During the 3-4 months BB would not be working obviously. Not a big deal as long as his MLB team renews his coaching contract. His contracts are only a year long. As long as they renew his contract he will continue to get paid year round. If they do not renew it then his paychecks will run out in December and we would have to rely on pitching lesson money- which would be difficult to get since he only had 1 client last year. He was planning to build up his client base this off season- but that wouldn't work out with the surgery.
And now we come to The Impulsive Purchase. We were planning to start renovations in September. That means we would ask the tenants to leave and we would carry the mortgage ourself. BB still wants to do the renovations even if he has back surgery. I don't feel comfortable taking on the additional $1300 a month debt plus $40k renovation debt when he is getting surgery and we don't know how it will turn out. (I forgot to mention that the doctor told BB its a 50/50 chance that the surgery will help relieve his pain.)
We could put off the renovations till after BB is back from Surgery...in October. I just don't really want to take on all of this at once. I don't want to work 40 hrs a week, care for BB and monitor a renovation. And BB knows this- so he is saying that he wants to come home in September to start the renovation. He wants to oversee the project and then get the back surgery. But that's not really enough time for him to complete rehab before the next baseball season starts in February (Assuming his contract will be renewed).
I feel like this is a tricky situation. We are going to have to be delicate in the decisions we make so that we don't get into financial trouble.
I erased this entry because if you are quitting the immature beauty contest then you are defeating the purpose when you write a long ass blog about feeling ugly because you are naturally getting older.
Time to save some space for some real problems.
I might have mentioned this before- but BB was able to go back to the FL baseball school he worked at for the last few years and re-negotiated his payment for providing baseball lessons. He still splits the lesson money 50/50 with the school, but now charges $100 an hour rather than $50 (which personally I think is highway robbery- but people pay it!).
BB knew this would decrease the lesson load- but with his full time coaching job he no longer needs or has time for a big client base.
He just called me to tell me that while he was working today the baseball school set him up for 4 1/2hr lessons tonight!
I am very happy for him. He gets paid by the school 1x a month so he has to wait for the paycheck to come in, and then gets taxed on the lessons- but it's still pretty exciting that he is able to earn so much money.
Here in Savannah BB was charging $50 an hour and only got 1 client out of it. (I admit our advertising was lacking.) I knew for the Savannah economy $50 an hour is a premium price to pay- but in FL the baseball culture is much more competitive and extreme. With spring training, and nice weather year round, and pro athletes living nearby- baseball seems to be taken much more seriously by the parents and getting on JV, Varsity teams is very competitive. (And I'm not saying that's a good thing!)
But the 1 Savannah client BB taught this season was very reliable and his father emailed BB this week requesting tickets to a spring training game! The family is going to go down for a long weekend and wants to see a game against the Braves. BB gets tickets for free so he is happy to give them to the family. The child was in his first game of the season last week and did well enough for the father to email BB a happy report. We are hoping to get more Savannah students next off season through word of mouth from his current client.
Anyways- BB also told me he had to throw batting practice to a few very expensive players and the top "brass" (managers/scouts/coaches)were all behind home plate watching the players intently. He said he felt the old rush as if he was the one being evaluated. I asked him if he regrets retiring and he said "No way." His body is too achey to permorm anymore and like the Tobey Kieth song "I'm not as good as I once was- but I'm ALMOST as good ONCE as I ever was." That wouldnt cut it as a player so BB is happy to no longer worry about pains and injuries. He said he's happy to be on the coaching side now.
I'm relieved. It was a long time to get to this point. BB and I went through some rough spots- but he was able to live out his dream and now we can let that dream go to someone else.