When I was 8 years old, my dad, my uncle Sam and cousin Howard took me to the race track at Hollywood Park. It was an amazing day for us as we won and won big. I will never forget that they asked me who to bet on. The first horse I ever picked was Celestial Pride, and he won at odds of 15-1! Just to prove to everyone that I was an amazing handicapper, I chose Pink Dust at 45-1 for the next race and he went on to win too! Needless to say, I was hooked. I think if I could drive they would have bought me a new Cadillac.
Over the following years, I become a big fan of horse racing. At Hollywood Park I saw Seattle Slew get beat by Bill Shoemaker riding a small horse named Kennedy Road. At Santa Anita, I watched the greatest horse of our lifetime, John Henry, take on all challengers and win at the ripe old age of 9. That's like Magic Johnson playing basketball at 80!
Who can forget Cigar and Zenyatta! There are so many wonderful memories. These horses had courage and the hearts of a champion. It was a joy to watch them compete. I had the opportunity to meet Joe Masino of Class Racing Stable 12 years ago. He got me interested in becoming a horse owner, so I bought a 25% interest in a race horse. We bought the horse, Monterey Jazz, as a 2 year old from the breeder for $85,000.
Monterey Jazz was a big boy. He did not start out too well. He lost most of his races at 2 and 3 years old. Then something happened. He ran on grass and found a new home. Monterey Jazz won a claiming race going away at Hollywood Park, and thank god no one claimed him. In a claiming race, anyone can buy your horse. Next he ran in a stakes race at Santa Anita called the Sir Beaufort. He won a close race. Next was the race of his career: he ran in the Strub Stakes, named after the founder of the Santa Anita Racetrack. Monterey Jazz won by 8 lengths in 1:45:20, the fastest time in the Strub Stakes in the 1-1/8 mile race.
Jazz had a minor setback in his next race, the Million Dollar Santa Anita Handicap. He went off as the big favorite with a field of 12 horses. The track had been slowed with rain. Jazz, in his typical style, went out in front but went way too fast and the slow surface wore him down. He finished last.
We then put him on a plane and took him to Dallas Texas and Lone Star Park to run in the Texas Mile on the dirt. Jazz and jockey David Flores went out in front and never looked back. He won by 8 lengths without really breaking a sweat. Monterey Jazz would go on in his career to win the American Handicap with the blistering time on the 1-1/8 mile turf of 1:45:3, the fastest of that race. He would wind up running a track record and still holds that record for a mile on the turf at 1:32:2.
Just as sometimes happens in real estate partnerships, we sold Monterey Jazz this week. He will now be running in the southwestern U.S. with new management and ownership. He wound up winning almost $1 Million in purses for our group. I met many great people during my time with horse racing. Many people involved in the real estate business buy horses as a tax shelter for their passive income. You can deduct 50% of the cost of a race horse the first year (consult your tax advisor or check out Joe at www.classracingstable.com).
This year our brokerage business has started out with a bang. We have multiple deals going into escrow and we are getting multiple offers on properties. The action is hot and heavy. SBA loans today are 4-4.5% with 25 year amortization. Not a bad deal. That is very cheap money.
We are listing many apartments, foreclosure properties, Downtown Los Angeles development properties and warehouse facilities, either for sale or lease. I predict that 2012 is going to be a big year for Los Angeles commercial, industrial and multi-family real estate.
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