I founded ACF Property Management, Inc. on March 1, 1968.

I submitted five names to the State registrar, but a clerk in Sacramento called to say that none was available. In those days we paid for long-distance telephone calls by the minute. Since the call was placed on the registrar’s dime, I used the time to ask about other possible names, which is how I landed on ACF.

Three or four years later I proposed to my business partner George that we begin to invest in commercial real estate.  We had been sharing profits 50-50 from our law practice, and I proposed the same for the new venture. He was dubious.
“Too much risk,” he said.

“George,” I said, “Between us, our net worth is $15,000. Suppose we take some risk and increase our net worth to a million dollars, and we keep it. That seems to be worth doing. Even if we lose everything, we would only be behind by $15,000.”

He remained dubious.

I went ahead by myself. In retrospect, the year 1968 was a great time to begin investing in Los Angeles real estate. Over several years I accumulated a portfolio of about 90 small Encino Park houses.  I paid about $17,000 for each house, with $2,000 down.

Fast forward a few years. I sold most of the houses to an investor friend of mine, who was happy to pay $51,000 for each house.

To save you the trouble, I’ll do the math. On an investment of $2,000 for each house the profit was about $34,000, for a total profit of slightly more than $3,000,000.

You read that correctly. A very nice profit. But George didn’t reap any of the profit because he refused to take any of the risk.

Twenty years later, by sheer coincidence, George was seated next to me on an airplane flight from Denver back to Los Angeles. Why had he been visiting Denver?  To look for commercial real estate.  Apparently, during the intervening years he realized that practicing law produces an income only when you are at work. An investment in real estate provides an income twenty-four hours a day — even when you’re sleeping.

As far as I’m concerned, we take risks every day. When we ride in an automobile. or accept a new job. A new relationship is a risk. Having a child is a risk.

So I conclude that taking risks is inevitable. That’s why my goal is not to eliminate risk, but to manage it as best I can. Generally, a reasonable risk is okay.

Of course, a little luck also helps, and I consider myself very lucky to have started investing in California real estate in 1968.

But luck only helps if you allow yourself to take a risk in the first place.

Just ask George.

Alan

On Sunday morning of Memorial Day weekend, I was sitting in our family room reading when I was struck by the thought, “What a beautiful day!”

The full panorama of the back yard was in Spring bloom. Blossoms on the Orange trees, new leaves on the Jacarandas, and songbirds fliting from branch to branch.

At that moment it occurred to me that there was nothing in my life that I had to do.   Emphasis on the verb HAD.

I have spent my entire life striving. Striving to socialize (kindergarten was traumatic), trying to keep quiet in boring classes, and always striving to excel in every endeavor.  I fashioned the fabric of my career from the threads of education, desire, and necessity. It has been a roller coaster ride.

I founded my company ACF Property Management, Inc. on March 1, 1968, and we have been in business every day since, though it has been years since I have worked on Saturday or, heaven forbid, on a Sunday. We currently manage more than forty retail shopping centers throughout the United States.  My biggest delight at the office is working with an experienced, talented, and dedicated staff.

And what has my time, education, and hard work created?

Very simply: this moment — the culmination of 85 years of my past, somehow crystallized into a perfect moment of enjoying the beauty of my back yard, untethered from either expectation or obligation.

It’s a pleasure for me to share this moment with you, along with my wish that both our lives are sparked and sparkled with hours of striving, followed by many more hours of enjoying the beauty that is within and all about us today, and every day.

There is beauty in a blade of grass.

Love,

Alan

It isn’t often that a Miss America drops by my office to say “hello.”  It did happen once, however, in the mid 1980’s. Scout’s honor.

“Debra Maffett to see you,” my receptionist announced.

I had no idea who she was, and she hadn’t scheduled an appointment.

But apparently Debra felt she didn’t need an appointment.  She mentioned the name of a mutual friend, David Beaird, a film director, and I agreed to see her.

It was then I remembered he had told me he was referring Miss America to me for financial advice. Even before she walked in, I was tongue-tied. I had never met a Miss America before. But our visit turned out well, because of her, not me. She was beautiful, yes, but she was also intelligent and personable, and she certainly carried the conversation.

I don’t believe she invested with me, but I was impressed with how knowledgeable she was about money. Especially because so many people are not financially literate. It made me realize that we shouldn’t judge people by their looks (or in this case – their beauty) alone.

Why did I just remember this?  Probably because I was watching a TV show on CNN hosted by Eva Longoria. I believe she was also a former beauty pageant winner.  She is certainly personable and intelligent.

But I digress, and that is a lot more fun than progress which involves setting goals and measuring growth (and that sounds too structured and decidedly unfun).

So next time you find yourself spending time with a beauty queen, remember the old adage – beauty is only skin deep. If you look past the pretty face, perhaps you’ll find, as I did, someone who is generous and thoughtful and kind. And aren’t those the attributes we should be celebrating in one another? Isn’t that who we want to encourage our children to grow up to become?

As for Miss America, maybe we should simply crown the woman with the best character. And that is a person who will always be welcome in my office.

Alan