I See Rich Dead People

I like reading obituaries. There’s a common theme among the wealthy dead… real estate. Almost every day, I find 2 or 3 obituaries that include some form of real estate investing, building, and/or selling in their detailed history. And often times, the “real estate” period in their life is what made them rich. Wealthy people usually get the picture and the longer write up. Today was no different. Abe Hirschfeld, 85, died. He was a tycoon that gained fame through his eccentric behavior related to political stunts. Remember the check he tried to write Paula Jones in the Clinton era. Or his hostile attempt to buy the New York Post. Where do you think he got all of his money? He amassed his fortune by building parking garages. He started by buying parking lots and over time he turned these into multi-story parking garages, which became the foundation of his fortune. Smart guy. Nutty son-of-a-bitch they say. But loaded… all because of real estate.

Talented people get write ups with pictures too. And living in LA, there are lots of talented, entertainment-oriented people that die. There’s something to be said about talent. But talent doesn’t lead to riches. Case in point. Right next to the Hirschfeld obituary is the one for Ted Greene, 58, described as the “Living Encyclopedia of Guitar. They rave about his talent, but he died alone in his “rented” apartment in Encino, CA. I’m not being critical of Ted. He wrote four Jazz playing books. And they’re still being used after three decades of publication. But don’t you wonder what he was doing with all the royalty payments. He was buying guitars. A guitar is not an asset. It’s a liability. Liabilities don’t create wealth. Assets create wealth. Parking garages create wealth. I’ll write more on this topic another time.