If you watch CNN or any news show on television all you will hear about is the problems of the real estate market. Americans are losing their jobs, losing their homes and getting into deep trouble finically. The solutions to their problems include making more money, borrowing more money (good luck with that one) to consolidate debts long term and even foreclosure and or bankruptcy. At the same time the news is promoting money issues on Main Street America the Occupy Movement highlights the fact that the richest people in the country are fighting to get richer and richer. While this trend might be true there are plenty that dabbled with the world of "one percenters" and who have gotten a stiff does of reality especially when it comes to real estate. Its just a story that doesn't get told as often as its easier for the masses to hate the rich for well being rich but they often have the same problems as everyone else.
One of the biggest Hollywood clichés in a town full of famous cliché's is the story of the screenwriter done good. The reality is that there are more than 100,000 people in Hollywood with a story to tell and only a handful or two of studios who can buy those stories. Remember that major studios only make 10 to 12 movies per year thus the chances of selling a script once makes getting a hole in one on the golf course look reasonable. Selling a script once (keyword being once) is more like winning the lottery yet the Greyhound Bus (perhaps a Southwest plane too) keeps showing up with bright-eyed and bushy tailed new screen writers looking to make it in tinsel town. Here's where the cliché gets interesting which is lets say you are a video store junkie with a movie like Reservoir Dogs or Pulp Fiction in you that you have written down, formatted and gotten professionally edited so someone in a position of power will even read your script. Then you have the challenge of meeting a person of power who could potentially do something with your script. This is so unlikely that isn't barely worth mentioning. You could possibly find an agent at a Hollywood agency like CAA or William Morris but then again why would an agent who works on commission take on an unproven screen writer? It happens (favors to a father, other kinds of favors, perhaps the script is just that good) but rarely. If the script is good, the agent knows where to go and has the open doors to go sell it. Its not uncommon for a script to sell for $500,000 to $1,000,000 or more. This is a Hollywood dream come true for the screen writer. Sadly what happens more often than not is that the day after a big celebration dinner at one of Beverly Hills restaurants, the agent will call up someone like Chris Cortazzo, the top producing real estate agent in Malibu, and go looking for a $3,000,000 plus home. Why not, after tax and agent commissions you have $400,000 put down right? The reason why not is that there is no guarantee whatsoever that someone who got lucky selling one script is going to be able to make a living selling scripts however in order to afford a $3,000,000 home with 400k down - you need to sell a script once per year every year for decades to come if that is your sole source of income. The talent agent often doesn't tell you of this and when he or she can't sell your next script in six months the screen writer starts getting angry, worries and or desperate. By a year, payments can be behind and you got it - foreclosure is pending.
Foreclosure isn't just for $95,000 houses in Detroit. Its happens to celebrities, captains of industry and "one percenters". Reality TV show star Kristin Cavallari beautiful family home right by the beach in one of Orange Country's best neighborhoods was recently foreclosed on despite the quick, TMZ-powered reality star fame. The $6,000,000 home was just too much to pay for in the real world of reality TV. Will Chumlee from Pawn Stars lose his 2003 Lamborghini Murcielago? Time will tell but even MC Hammer found a way to blow the $40,000,000 that he made in 1990 by spending a clean $60,000,000 that year. NBA star Allen Iverson, after making a reported $154,000,000 in his career, recently retired from the NBA and immediately filed for bankruptcy. Football wide receiver Terrell Ownes is famous more for his team-destroying renegotiations with the Philadelphia Eagles through his agent Drew Rosenhaus. Today Owens has two luxury condos in Dallas (much to the chagrin of Eagles fans and executives) that he cant pay for and that are in foreclosure. Perhaps Iverson needed 12 fewer blinged-out Mercedes? Perhaps TO should have just said no on the 10 carat D-clarity men's earnings in lieu of an equity payment on his real estate as anybody could have told him that his career would come to an end.
Overall, the financial correction, recession or even "depression" depending on the word that you like to describe the past few years has taught everyone that isn't in Congress that we have to a) earn more and b) spend less. Paying down debt is always a good thing and just because you can borrow enough money out of the equity of your McMansion to buy a Bentley Continental - that doesn't mean that it is a good idea. Freedom is living in your world without waking up and working 25 of 30 days of each month to pay the bank for the money that you spent to go to school, to buy a house, to buy a car and to go on a shopping spree. Increasingly, Americans are getting this point and long term if the nation could become more a nation of savers and smart investors our future looks more bright. Without question there will be fewer real estate foreclosures.