Real Estate...and Other Things of Value
with Yossi Feigenson
with Yossi Feigenson
Like the rising sun after a long and difficult night, we all have welcomed the New Year; ready to put it all behind us. The financial wounds and scars have all been neatly tucked away as a bad dream; a nightmare from which we awoke. There are, however, remnants of this bad dream that have remained and will have repercussions for years to come. The best thing that can be said about the past year is that it’s behind us and we are here to tell the story. The changing of the calendar gives us an opportunity to, in the least, symbolically turn a new chapter.
Our government did what it felt it had to do. They bailed out the banks and the auto makers. It can be debated if their actions and implementations were correct. Some will argue that they should not have mixed in. I have no intention of talking politics or even suggesting an answer. The true outcome of their actions will only be fully realized several years down the road. But what we have clearly seen, (borrowing an old phrase) the more things change, the more they remain the same. Our brilliant, can’t miss bankers are up to their old tricks again. They got their bailout; they even repaid most of the loans. They are back to “making sure” that our financial markets are in good shape. It is extremely reassuring that our countries’ monetary system is back in the hands of its very destroyers. The other day, one of my Wall Street friends and I were riding the subway and enjoying some friendly banter about the bailouts and stimuli, and he says “our government is morally bankrupt” so I retort, Wall Street is morally bankrupt as well; seemingly perfect bedfellows. Without hesitation or even an inkling of shame he snaps, “But it’s Wall Street’s job to be morally bankrupt.” As you see, nothing changes.
The Real Estate industry is at its own crossroads. There is no one solution to fix the industry. The residential market as currently constituted is operating and functioning on some levels. You definitely need to be far more qualified to purchase a home or condo; and that’s a good thing. Unfortunately, many folks who are upside down on their current mortgage situation (loose translation: they owe more on the house than the current value, AND they can’t afford the monthly payments) will possibly lose their homes and have to figure things out again. In many cases it’s a necessary pain; akin to a divorce; it’s extremely painful but equally as extremely crucial for the continuance and rebuilding of one’s life.
Those in commercial real estate understand that it is all about the debt. If the property is in good shape and not overly levered than most likely it will absorb and withstand. Balance sheet and rent rolls are important, but the more crucial and telling number these days is the level of debt to valuation ratio. Those who bought late in the game, or bought at the height of the market, and thus are under capitalized, may suffer a fate similar to that of their brothers in residential real estate.
Will prudence, old style values or proper business ethics become the new model? I, for one, am not overly optimistic. When leadership of public and private sector are suffering from a severe case of moral bankruptcy, what can be expected from Joe the common man?
So, where does that leave us? That leaves us fending for ourselves; making decisions that will affect ourselves and our families. And we need to be absolutely certain that these decisions going forward are the correct ones and are made with the right information. I’m speaking specifically to those who have had a financial upheaval in the past year or two and have lots to think about. I will leave you with two thoughts:
1) It’s time to actually begin to identify, zero in on and harness what it actually is that you are good at. If being a sales person is your thing, then follow it and you will find success. But if you are not so sales inclined and are only in sales because there is the chance to make “good money”, it may be time to consider what your calling is. I find the secret to success is actually doing what you should be doing. Sounds simple, but I can spend days speaking about this.
2) Develop a strong inner voice. We have all become way too inundated and programmed to think the way “they” want us to think. Too many of us are simply drinking at the fountain of what is being fed to us. It’s crucial to learn how to decipher information and not accept everything at face value. To begin to question the status quo; to actually have an independent thought is paramount for the continued prosperity of our nation as a WHOLE and to each of us and an individual.
As my good friend and fellow author Douglas Castle said to me just the other day; we’re in survivalist mode, and we need to be positive but realistic at the same time. It’s imperative that we put thinking back into our lexicon and culture.
For more information, please visit Yossi's TNNW Bio.
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2 comments:
I find your concluding suggestions to be on the mark. At the same time the path to finding ones mission, or as you phrase it “what your good at”, is to hone in on and then listen to that inner whisper, a whisper that is the one rational voice amongst the irrational shouts .Perhaps step two should come first.
Either way the question that remains is WHY? Why isn’t the obvious path to success the most traveled? If it is because the shouts of monetary gain drown out the whisper of self actualization, then perhaps these times are hard only because our irrational shouts to only pursue the greatest monetary gains are frustrated by the current economic realities. In other words this whole mess should be viewed in a positive light, because, for the first time, the majority of society is forced to listen to the rational whisper “what is your role, where does nature dictate that you will be successful”? If enough of us answer this question correctly then we will be on the road to recovery.
I find your concluding suggestions to be on the mark. At the same time the path to finding ones mission, or as you phrase it “what your good at”, is to hone in on and then listen to that inner whisper, a whisper that is the one rational voice amongst the irrational shouts .Perhaps step two should come first.
Either way the question that remains is WHY? Why isn’t the obvious path to success the most traveled? If it is because the shouts of monetary gain drown out the whisper of self actualization, then perhaps these times are hard only because our irrational shouts to only pursue the greatest monetary gains are frustrated by the current economic realities. In other words this whole mess should be viewed in a positive light, because, for the first time, the majority of society is forced to listen to the rational whisper “what is your role, where does nature dictate that you will be successful”? If enough of us answer this question correctly then we will be on the road to recovery.
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