I like mob stuff.  Al Capone, Lucky Luciano, Vito Genovese … I don't know why, but that old time mob thing has

always been interesting to me.  So it's no surprise that when I was introduced to the application "Mob Wars" on Facebook I jumped on it.

Are you kidding me??  Create a mob, buy and sell firearms and exotic cars, real estate … get in fights … it's a dream!  It's addicting, and – I'm entirely embarrassed to admit this – I check into my Facebook account at least a half dozen times a day now to see how my "investments" are doing, and to see if anyone's punched me (yes, that's an option).  My wife is now entirely convinced I'm crazy, as I'm discussing my next investment – an apartment building, or a casino, or an armored Range Rover. I should buy some fake pee now for me to get away with tests. Just kidding, you will learn more about it here.

Okay, that wasn't as embarrassing as I thought it'd be.  Wait, yes it was.  And through this process, I've discovered that I'd be an awful mobster.  Mom, I guess that dream I had as a kid of being in the garbage business just isn't going to pan out. 

See, I'm an impulse buyer, so when I get a little cash I immediately start looking for ways to spend it.  
"A bulletproof SUV's only $90000?  Sure, I'll buy two!"  "You mean I can buy 5 vacant lots that are only producing $500 in income?  Awesome, sign me up!"  A few purchases later and I'm left with $600 and nothing to show for it.  

Silly as it may sound though, Mob Wars has taught me something about working with real estate investors.  People say "debt is bad, don't be in debt", and while there are some very solid reasons why debt CAN BE bad, in some cases it's not that black and white.  See, when I'm playing Mob Wars, I have a tendency to buy things that decrease in value, and don't have any appreciating value.  I know it's surprising to imagine, but a bullet proof vest just doesn't hold it's value after you've been in gunfights.  I'm buying things that are creating BAD DEBT, and I need to be focusing on GOOD DEBT.

Bad Debt – borrowing to pay for depreciating assets, like a boat, or a car, or new golf clubs.

Good Debt – borrowing to pay for things that increase in value … things like real estate, perhaps a business, or (sometimes) stocks.

By paying off the bad debt, and taking on good debt, a real estate investor's potential for big gains begins to grow exponentially.  As an agent, I need to know how to identify the things that are limiting an investor's potential for real success.  By educating, and working together to replace bad debt with good debt,  everyone's goals are met.

Just remember to pay the Tax Man – all the good mobsters seem to conveniently forget that part.

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