May
16
21 Success Secrets of Self-Made Millionaires
May 16, 2007 | Leave a Comment
by Brian Tracy
The common principles and practices of all men and women who become millionaires in one generation.
1. Dream Big Dreams
2. Develop a Clear Sense of Direction
3. See Yourself As Self-Employed
4. Do What You Love To Do
5. Commit to Excellence
6. Work Longer and Harder
7. Dedicate Yourself to Lifelong Learning
8. Pay Yourself First
9. Learn Every Detail of the Business
10. Dedicate Yourself to Serving Others
11. Be Absolutely Honest With Yourself and Others
12. Set Priorities and Concentrate Single-mindedly
13. Develop a Reputation for Speed and Dependability
14. Be Prepared to Climb From Peak to Peak
15. Practice Self-Discipline In All Things
16. Unlock Your Inborn Creativity
17. Get Around The Right People
18. Take Excellent Care of Your Physical Health
19. Be Decisive and Action Oriented
20. Never Allow Failure To Be An Option
21. Pass the “Persistence Test”
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May
15
By Joanne Kelley, Rocky Mountain News
May 15, 2007
The umbrella group for a Cherry Creek business holding money for tax-deferred real estate exchanges filed for bankruptcy Monday, raising questions about the status of hundreds of millions of dollars belonging to investors here and across the country. The Richmond, Va.-based 1031 Tax Group filed for Chapter 11 protection less than a year after acquiring Denver’s Investment Exchange Group and five other companies around the United States that serve as intermediaries for so-called 1031 transactions.
Bob Nicolls, a real estate investor and an owner of Monarch Ski Area, said he has $700,000 tied up in the company. “We have always been concerned with these companies,” said Nicolls, who characterized the 1031 industry as unregulated. “Federal law makes us place 1031 trade money with an intermediary with no control over the funds whatsoever.” The bankruptcy filing, made in U.S. Bankruptcy Court for the Southern District of New York, follows the company’s announcement two weeks ago “that it is fully operational and has honored all its commitments to customers.”
In a statement released Monday, the company cited “liquidity issues in the decision to file, including the actions taken by several financial institutions in blocking access” to its funds. In the court filing, the company estimates its assets and its liabilities each exceed $100 million. It also estimated money would be available for distribution to hundreds of creditors. A New York attorney listed on the filing did not return two phone calls seeking additional information.
The company’s financial woes follow a news release issued in April by Denver Investment Exchange Group executives, who said they were fired after a confrontation with the parent company over operating practices. The 1031 Tax Group’s owner, Edward Okun, issued a subsequent statement that the executives had walked off the job. Okun did not respond to a phone message left at one of his offices late Monday.
A native of Toronto, Okun became a U.S. citizen three years ago. The Web site of one of his companies, Investment Properties of America, said he has been active in real estate development and property management for more than 30 years. The situation unfolding at IXG and its parent company has raised questions in Denver’s real estate community, which relied heavily on the company for years to hold money from commercial real estate transactions between deals.
“IXG had a reputation among real estate brokers and attorneys that they were a longstanding reputable accommodator,” said Jeffrey Hawks, principal at Apartment Realty Advisors. “Clients of ours over the last 10 years probably deposited half a billion dollars with that firm.” Hawks said current clients have about a total of about $10 million in exchange money at 1031 Tax Group’s Denver operation. The bankruptcy filing listed the top 20 creditors, all of whom had less than $3 million apiece with the company.
One of the top creditors is based in Littleton, with $1.9 million. Last week, at least one local deal did not go through because a real estate investor was unable to tap the funds he had sent to IXG. Ronald Myles, who operates a commercial real estate firm in Denver, said he hoped to close on an investment property last Wednesday. But the deal didn’t happen because roughly $750,000 of his money wasn’t available. Myles and others involved in recent exchange deals said they plan to appear at a related court hearing Friday morning in Denver to find about more about the situation.
What is a 1031 tax-free exchange?
• The practice is named after the section of the tax code and allows commercial real estate investors to defer capital gains taxes. The exchange deals are common among individuals buying houses to fix up and sell.
• To defer capital gains taxes, the Internal Revenue Service requires an investor to deposit money with what’s known as an accommodator between the sale of one property and the purchase of another.
kelleyj@RockyMountainNews.com or 303-954-5068
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