Horsin' Around In Phoenix Blog: January 2009

Monday, January 12, 2009

Let's Make Wine in 2009

Yes, well, now you know my latest craze.....winemaking. It all started last Summer when the grapes ripened. I just couldn't bear to think of one grape going to waste. What can you do with a huge bucket of grapes? You can make wine.

Who knows what kind they are! The identification tag was lost sixteen days after they were planted 4 years ago just like everything else around this place. It's either filed somewhere and will never be found until I don't need it anymore, or it's buried under the grape vines where it fell. Anyway, to get to the point, I had a heck of a time trying to decide on a recipe from the Internet but, once I did, proceeded with all the enthusiasm that only a completely clueless person can exude with words like must, carboy, fermentation, and hydrometer rattling around in my head.

The first step was to wash and seed all those grapes, which took me the greater part of 2 days, and then, following my recipe closely, place them into a big stainless steel vat, while congratulating myself on finally finding a use for something bought years ago and, until now, had sat unused under the cabinet in the laundry room.

Sterilization being touted as of utmost importance of every piece of equipment you use in winemaking, everything was scrubbed with soap and water and then doused with a mixture of Potassium Metabisulphite and bottled water. Feeling more like a chemist than a winemaker, the grapes were mixed together with Campden tablets and left to sit over night and then the yeast and sugar was added and enough bottled water to fill up the 3 gallon vat.

Lo and behold, the sugar and yeast did it's little trick and the whole shebang started to bubble and sizzle. No words can describe the thrill you feel with your first batch of homemade hooch, especially when it's from your own grapes. I don't even drink wine, and yet I was absolutely elated at the prospect of making it.

Somewhere along the way an hydrometer was bought although I had no clue how to use it, and the more I read about it, the more confused I became so, every once in a while ,I would draw a little wine out and test it and try to figure out what it all meant, to no avail. Please remember, I am a type A sales personality, Chemistry is the only subject that I almost failed in high school and college, and my disability to understand anything related to it is overshadowed only by my unwillingness to give a hoot.

In about seven days the bubbling and sizzling stopped and it was time to press out the juice. No press!!!! No money to spend on a press!!! So, after much rumination, I decided to use the lid from the next smaller vat which fit right down into the larger vat and made a perfect press if you applied a nice clean, sterilized bare foot to the top of it and shifted all your weight on to it. Voila, the resulting wine was strained into a 3 gal. carboy which I purchased from Better Bottles on the Internet, an airlock was applied and filled with sterile water and it was placed on the counter in the laundry room to age.

This is the hardest part, waiting: but a very necessary part, also. During the aging, the wine clears and all the little particles of grapes sink to the bottom and become something called lees which is what you don't want in your wine. After about 2 weeks you see the cloudy mixture you put in the carboy start to clear up and look like something you could actually drink. I didn't have a clue what it should taste like because I'm not a wine connoisseur or even close, so, at this point I'm thinking,"how am I going to know if it's wine or if it's vinegar".

Stay with me, there's a lot more to come. See you tomorrow.

Famous Quotes

"The darkest hour is that before the dawn." - Euripides
The Death of Real Estate Is Greatly Exaggerated, Again By Justin Ford
Like it or not, we are entering a time when a growing number of properties will be unloaded at bargain-basement prices and a handful of investors will make a fortune. Let me explain... The last time real estate died was in the late '80s. The Tax Reform Act of 1986 took away tax shelters that had been key drivers of investment. Accelerated depreciation was gone, capital gains tax rates became (usually higher) income tax rates, and passive income losses (such as from rental income) could no longer be used without limit to offset active income (such as wages from your job). Suddenly, many investors stopped buying, others dumped properties at bargain prices, foreclosures rose, and a bear market in real estate began that, in some categories and markets, would last almost the next 10 years. The late '80s and early '90s were particularly tough on office space and apartments. Overbuilding took place in many markets in the first half of the '80s thanks to the 1981 Tax Act, a big incentive for builders. So the 1986 Act - taking away many incentives - was a major flip flop. As a result, some landlords offered "concessions" of 25 percent or more of the nominal lease... just so they could show lenders they were getting the rents needed for comfortable debt coverage. In reality, they were getting far less, and foreclosures rose in the commercial sector too. In the words of Sam Zell (CEO of some of the largest real estate investment trusts in the country), the goal for real estate companies was to "survive to '95." In residential real estate, there was no nationwide bear market, but markets flat-lined in much of the country. In some markets, aggravating factors led to prolonged slumps. The plunge of oil prices in the second half of the '80s led to a 21 percent drop in Houston residential real estate in three years. In New York City, housing prices fell after the stock market crash of 1987. They wouldn't surpass their pre-crash levels for good until 1998. In Los Angeles, big employment cuts in the aerospace and defense industries in Southern California led to a 21 percent decline between 1989 and 1997. Adjusted for inflation, the fall was about 40 percent There are lessons to be learned from this period - both of caution and of opportunity. On the cautionary side, never listen to anyone who says real estate always goes up. Markets can fall, and bubble markets can fall hard. So always buy cash flow, always buy value, and always buy with a large margin of safety - so that your expected income could fall 20 percent or more and you wouldn't be forced to sell. Never forget that real estate is local. Even while markets like LA, NYC, and Houston were hurting, other markets continued to post steady appreciation. That especially applies to today, where many formerly hot markets are deflating and many value markets are experiencing strong demand and steady price appreciation. Finally, whenever bubble markets do implode, there is plenty of opportunity for value investors. Remember the Resolution Trust Corporation (RTC)? The government agency was formed to dispose of nearly a half-trillion dollars of distressed assets in the wake of the failure of many Savings & Loans. Much of what was sold were the distressed loans themselves, but it also included over 300,000 pieces of real estate. And many investors made fortunes as many properties were sold for 50-60 cents on the dollar or less. Similar events are unfolding today. A rising number of mortgage loans are in arrears and foreclosures are on the rise across the country. You may end up helping to pay for some of these problem properties even if you don't buy them. That's if the government opts for another taxpayer-funded bailout of loose-money lenders as it did in the late '80s and early '90s. So you might as well consider buying some of these properties before they end up on the courthouse steps, save a property owner from foreclosure, and pick up some cash-flow properties at good prices in the process. I happen to live in one of the worst bubble markets in the country, South Florida. Not only did prices practically go vertical in the first half of this decade, but property taxes have soared as grasping government officials are now assessing at full "market value." At the same time, insurance has skyrocketed in the wake of a record number of hurricanes in 2005 and 2006. Yet because I never "chased the market" and insisted instead on buying undervalued, deep-cash-flow properties, my properties are doing fine. More important, in the coming year, I expect to uncover some extraordinary opportunities even in this market. At the same time, I continue to invest outside my area - in select value markets in the west, southeast, and mid-Atlantic states. In fact, these markets are benefiting from an exodus of investors and homeowners from the bubble markets. And, given a growing number of telecommuter-friendly jobs and a steadily rising pool of baby boomer retirees, this flight from expensive to affordable should be a strong one for decades to come. When the going gets rough, smart investors know now is precisely the time you'll find diamonds in the rough.

When you look at the world through the fog of your own worries, your anger, your frustration and impatience, many valuable things will just pass you by, completely unnoticed. Imagine driving through town while someone is holding a gun to your head. Are you gong to notice the new flower shop on the corner? Probably not. Your focus will be on that gun.
Are you holding a gun to your own head, by constantly focusing on what’s wrong with your life? Are you so obsessed with your own problems that you don’t see the opportunities all around you? Your attention can be effectively focused on only one thing at a time. Sure you have problems and challenges. Yet what is the point, what is the value of agonizing over them? Pay attention to what’s good about your life. Rather than worrying about what you don’t have, seek to make the best of all the good things you do have. There are a lot of things right with your life. Give your attention to them and they will grow. - RALPH S. MARSTON, JR.