Category Archives: Career

George Muller, the book from 1873

Career, Family, Life

In 1988, we bought four restaurants and I made the worst financial stumble of my life. By 1990 we were so badly in debt I really could not see my way out of the financial disaster I had created. Our financial situation had literally brought us to the point of filing for bankruptcy. We ultimately choose not to but were at the point where that looked like the only option.

As a side note- If anyone ever wants to open their own restaurant, I have three words of advice: “Don’t do it.”

It was Thanksgiving that year, and we were at my mom and dad’s house in Virginia for the holiday weekend. At the time my mom was working for the Fredericksburg Bible Institute in Fredericksburg, Virginia and there was an elderly gentleman that had passed away and left his book collection to the Bible Institute. My mom was looking through the collection and saw a very old book by George Muller printed in the 1873. She wanted to look at the book a little closer and happened to bring it home that weekend we were there.

Listen to me here. God always has a plan for your life if you will just ask him and then trust him.

So, we were in Virginia with my parents for that Thanksgiving weekend, and Mom shows me this old book she brought home. I had never heard of George Muller and knew nothing about his life, but I opened that book and was just going to skim a few pages and look it over. When I started reading, I understood the book was his story and his daily and sometimes weekly memoirs. George Muller had felt led by God to start a children’s home in Bristol England for the growing population of homeless children. As he tells his story, he didn’t want to do it and in fact, he told God he wasn’t going to do it. Finally, God got through to him and he agreed to do it with one stipulation.

Imagine right here, having a prayer life so strong that it is like having a dialogue or conversation with God. That is the way it was with George Muller.

The stipulation was that he would do his part if God provided all the resources and expenses for the children’s home. Think of the audacity George Muller had to actually call God on his promise and put God to the test. He told God he would never borrow money for the children’s home and never put any amount on credit. He told God he would literally trust him to provide every dollar because he never wanted to have any individual or banks get the credit instead of God. The book was his periodic diary of how much money they had and what they needed for that day or that week to survive. It gave almost a daily detail of how much money he called on God to provide down to the dollars and cents. Without fail, God did his part in George’s life. By the time George Muller died, he had founded many children’s homes that looked like college campuses that were completely paid for. The homes served as an example to a country ravished by poverty of what God could do though one man.

The book literally changed my life.

I went back home and began to imitate what George did; I wrote a daily diary of the debts, payments due, and how much money I needed for that day, that week or that month. My deal with God was that I would tithe every dollar he allowed me to make, and I would always point to him as the source and the reason how we got out of debt and salvaged our financial life. Long story short, at about that time, I had begun to sell hotels and we did not file for bankruptcy, but rather we chose to pay all the money back. I met with all the creditors and told them my plan; it took us eight years, but we paid it all back. God saved us from financial disaster.

Every situation is different, and every cause is different but in my life at that moment, it was what I believed God wanted me to do.

Many years have passed since this period in my life, but even today, I can pick up that diary I wrote during that period and I cannot read it without crying because it is so raw, it takes me right back to those moments when I didn’t know how we would survive. When I read it, the emotions rise within me, and I know it was God that did it all.

Mom got the Bible Institute to sell her that book and she gave it to me a couple years later. I still have that book today in a very safe place. Should our home ever catch fire, after all the ones I love are safely out of the house, I will be going back into the house to get that book. KT

Highest, Biggest and Worst

Career, Life

Within the last 30 days we have witnessed three of the biggest financial swings in US history. Nothing like this has ever been seen before. It not only has never happened before, no one ever thought it possible.

30 days ago, the stock market was literally at the highest peak of all time. The Dow, S&P. Nasdaq etc. All were at the highest level they had ever been. March 16th, 2020 was the single day greatest point drop decline in history and this week saw the greatest single day point increase is history.

You ask, how is this possible? I don’t know. You could go for decades and not have one of these events. We have had all three in the last 30 days.

God created several (probably more) type personalities when it comes to money. People say things and tweet things and give opinions they would never do in their own life. Its for show and influence. When a person is deciding about their own money, all that goes bull goes out the window. It could be 500 dollars or 5 million dollars, the decision still comes down to what you are the most comfortable with.

It is about risk, anxiety, peace and sleep. I have a good friend who just loves, loves, loves to trade stocks every day with all the ups and downs. Then I have friends that only earn set interest at the bank. I will tell you though that the person who is getting 2% fixed interest on his saving account, to some people, might have look a little silly 30 days ago. Well, 11 days ago that same person looked like an investment genius.

The point I am making is to really ask yourself which approach will bring you the most peace and that is the way you should go. If trading stocks helps you sleep better, go be mister wall street. However, if is the slow and steady approach that helps you stay more comfortable, that is what you should do. Choose well. KT

Ready, Willing and Able

Career

In real estate, we were always taught that the most important thing is a ready, willing and able buyer. With commercial real estate / hotels it is the opposite. The most important thing is a ready, willing and able seller.

I am writing this blog post March 24, 2020, four weeks after the start of the COVID-19 crisis.

In terms of hospitality market value, the past four weeks have been breathtaking. The speed and severity of value decline in the hospitality industry has simply never happened before. After 30 years in the business, I have been through some downturns and recessions, but nothing prepared me for this. It’s a funny thing, in that when people can’t be around other people, the travel & tourism economy almost stops.

There are several good things that have come out of this downturn. First and foremost is that for the last several years, many owners were holding out for every,,,, last dollar of value. They have disappeared. There are no conversations about why a hotel should be worth more next year and why a buyer should be willing to ‘pay up’. In short, the reluctant seller is now an aggressive seller. They all recognize that maybe, they should have taken that offer last year.

Over the past couple of years, many sellers have been arrogant and unbending, thinking that the hospitality economy will just keep getting stronger the longer they own the hotels. Well, that ship has sailed and now we have a new normal.

Second thing that has happened is that the sellers no longer argue about our fees. Third and lastly, everyone now know we are clearly in a recession. There are no opposing opinions now.

Therefore, what we have today is a new world market and a new economy where if an owner wants to sell, he now knows he needs to be ready, willing and hopefully,,,, able. KT

When the tide goes down, you can see who is wearing clothes

Career, Life

Yes Siree Bob, if you were at the beach watching a bunch of people swimming, when the tide drops, you can see who has pants on. That is what is going on in the stock market.

In the greater stock market and in hotel stocks particularly, the tide just dropped, and half the people are naked. All the big talkers that three weeks ago were wearing five thousand suits and big smile, today are just wearing the smile. Everything else is exposed. I mean really exposed.

What has happened to hotel stocks in the last three weeks is nothing short of breathtaking. I have never seen anything like it or never thought I would. One day (three weeks ago) the world was right, people were doing well, construction was at an all-time high, houses were selling in several days, new buildings were under construction, banks were lending, and the stock market was roaring. That was 21 days ago. Today, the world has changed and for the most part, fear has paralyzed the US economy.

I told my wife last night that this whole situation drives home the point that regardless of what we may believe, we are not really in control. It also drives home the fact that if you are going to go swimming in the investment ocean, may sure you are wearing a swimsuit. KT

Bulls, Bears and the Wolf

Career

Over the past several decades we have all become familiar with terms, bull market or bear market as it relates to the stock market in general. If the stock market is rising, it is referred to as a bull market and if the stock market is in decline, it is referred to as a bear market. Bulls charge and bears hibernate or hide.

Ever heard of the term wolf market?  A wolf market is defined as any two consecutive, 10%+ downward corrections with no increase in price from the trough of the first correction to the trough of the second correction. That is what we have today. No one seriously saw the past three weeks coming.

Wolf markets are characterized by volatile/sideways stock prices. My simplistic viewpoint on the differences is that you can hear bulls and bears running toward you, but a wolf sneaks up quietly and all you hear is its growl before it attacks.

In my opinion, within the past 25 years we have only had one other true wolf market and that was after 911. It was tragic and many people lost their lives and its memory will forever live with each of us. Economically, because it happened so sudden, quick and deep, markets were able to come back at almost the same inverted curve as it went down. This is our hope for this Wolf market.

Throughout history, there is one consistent component that will never change. God is in control. KT