Art Fried, a lifelong entrepreneur born in Brooklyn, has faced financial difficulties for the first time in his career due to the economic downturn. He diversified his real estate businesses in Arizona but took some poor advice that nearly led to bankruptcy. The poorly implemented loan modification program also failed to save his businesses. However, he remains optimistic and is committed to repaying his investors, having pledged to make good on his promises using his entrepreneurial spirit and focus on filling needs.
2. Dear Friends, I never thought in a million years I would be sitting here and writing a letter like this. Pride and my Word have always been my benchmarks of success. And for the first time in my life those things are being questioned. If nothing else I am very sad about this and it also upsets me as my motives and approach have not changed in all my years of business. Unfortunately, like many of you, circumstances have caused me to reevaluate “life” and with that my business.
3. As many of you know I was born and raised in Brooklyn, New York. I am the oldest child in a family of 11 children. From an early age I was thrust into a role of leadership and responsibility which I just took in stride and it became the basis for my future approach to life and business. My upbringing was molded by my very devout Jewish parents and I was taught responsibility at an early age.
4. After completing High School I opted to learn business through a series of mentors and skipped the college experience. To this day I have not regretted that decision as I was instilled with an entrepreneurial spirit that still guides me to this day. I was taught by these very wise men that any good solid business is grounded in being honest and helping other people. That became and still is my formula for success today!
5. The other thing they taught me was to look for unique opportunities to fill a need. From the very beginning of my business career I have done this… starting with my first small start up businesses where I went to the school of hard-knocks and made some mistakes. My first big break came when there developed a need in my community for a creative and innovative advertising firm. I saw this and filled that void and for the next 17 years I grew and expanded this business to include such prestigious firms as Tofutti, Pepperidge Farms, Baldwin Pianos and Ethan Allen Furniture to just name a few. When a company wanted something new and fresh… they came to me.
6. During this time ATM’s also hit the scenes and I recognized the need for a a more affordable machine. People wanted to use this convenient form of banking while on the road or in night clubs, yet it was so new that it was difficult at times to find a machine to use. I jumped on this opportunity and over the course of 4 years I filled that void to the betterment of the clients I did business with, their clients and of course, I made money too. That is what business is all about.
7. In 2002 I needed a change and divested myself of my New York businesses and moved to Arizona. I studied the market and like many others saw the tremendous opportunity in real estate. Once again I took a different approach from just buying and selling. My first venture and my first business, WeBuyHomesInAZ, LLC got up and running by buying distressed homes in the historic district of downtown Phoenix and by the time I was done I had completely refurbished and sold dozens of homes in that area. My efforts put dozens of people to work, took distressed properties and turned them into show pieces, and over all improved the neighborhood in terms of safety and value. A win-win situation!
8. From this start I continued to expand and grow and diversify. Three more companies sprang from WeBuyHomesInAZ and I was able to continue to thrive personally, sustain a staff of happy employees and help people all at the same time. Then disaster struck me for the first time in my Arizona business career. I took some poor advice from a trusted associate and purchased several properties that wound up almost breaking me and during that time it got so bad that I was on the verge of bankruptcy and decided to give my personal home back to my lender. It hit me hard and I started doubting my abilities. I had always been an innovative and out-of-the-box thinker and for the first time it failed.
9. I just couldn’t fight the economic problems that struck this country and took us all by surprise. Unemployment soared, income was cut drastically, the housing market tanked and people were in trouble. It took us all by surprise, none more so then me. For once my crystal ball failed me.
10. I got some hope when in early 2009 the government introduced the concept of Loan Modifications and I was one of the first to apply. It failed. But, the good news is that this program gave me hope and even though my own modification was not successful I dove into the process and learned everything I could about this “savior” program, after all I was negotiating for homeowners since 2003, so I felt it was a no-brainer.
11. I was actually able to help some friends get successful Loan Modifications and once again I saw that niche and was off and running, my confidence was restored and I saw another opportunity to make some money AND help others while I did it.
12. I trusted the government and the banks and that was my mistake. I spent countless hours and thousands of dollars trying to master the Loan Modification process and help people. It was so poorly implemented and run at the banks that I didn’t stand a chance. Every time I saw the light at the end of the tunnel… it shut off. I finally gave up and admitted defeat again.
13. Which brings us to today. I still am optimistic about our future and see the potential to once again thrive. I will admit that because of my actions, I was not the only one hurt. Some of my investors and lenders, after years of making chunks of money and timely payments, got hurt as well and this concerns me greatly. In fact I have written to them pledging that I will make good on my promises, if they will only allow me. That has become my goal in life.
14. When all is said and done I still only have my Pride and Word and I will make good on what I have promised. It frustrates me to not to be able to do that immediately but, I will. I have not forgotten the lessons of my youth and I have Faith. Be patient and join me in this new adventure… the world is waiting for us!
