Some People Have No Business Being in Real Estate


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Some People Have No Business Being in Real Estate

Postby Dave Salcido » Mon Dec 12, 2011 11:27 pm

I make no apologies for being a bit blunt when I say that most real estate agents and investors (and a few NARS members that don't read the Big Book), at least in my personal experience, do not really understand the nuances of real estate and therefore fail to make transactions work. Why? Because most people don't understand the true dynamics of real estate. And because of this failure, they can do home sellers, home buyers and home occupants a disservice. Additionally, most homeowners (investors included) make lousy landlords and make the real estate industry worse, not better.

Let me explain it this way. I liken real estate to bacteria. Having it is either healthly or unhealthy. This is dependent upon how it is used and how it is controlled. For instance, having the right bacteria in the human body, and its careful manipulation is actually necessary and improves the overall quality of life. Conversely, having wrong or uncontrolled bacteria in the system can reduce the quality of life and in some cases can become dangerous or life threatening. Understanding the constant nature of bacterial mutation is also extremely valuable.

People that think that real estate is just about old style buying, selling and renting, and that the process of each remains basically the same are either misinformed, in the Twilight Zone or just plain lazy. Because of modern technology, second by second social media communications, artificial economic manipulations, natural and man made influences, the world of real estate is in a state of constant mutation. These stimuli are just a few of the reasons why property values violently fluctuate up and down, (these days, mostly down). But even amid a sharp decline, some real estate professionals and real estate investors do not have a formula for making real estate perform positively in down markets. NARS members should know better.

How do you sell a house where the value is a hundred thousand dollars less than what is owed? How do you rent out a house where the mortgage payment is twice the fair market rents? How can a selling homeowner compete with bank owned properties that are selling for pennies on the dollar? I know real estate agents that are telling their clients in foreclosure or up to their eyebrows in mortgage debt to either walk away, short sale or claim bankruptcy just so they can get a few extra months of occupancy before being kicked out. You call these real solutions? Phooey! Only a lazy agent with no creativety would give that kind of advice and should be fired. I would also advise them to think about entering another profession.

Once agents and investors know what real estate really is; what it can do; once an agent or investor knows and understands the dynamics of continual real estate mutation; once an agent or investor understands real estate control v. ownership; then and only then can they be considered true transactional "wizards", capable of helping home sellers, home buyers and home occupants to navigate safely through treacherous waters without giving up control or giving in to dangerous and unhealthy so called solutions.

I invite all readers of this post that are short on ideas to at least explore perhaps one of the most unknown and underutilized real estate strategies in today's real estate market; equity sharing using a NARS Equity Holding Trust. I believe that equity sharing may be one of the most appropriate forms of control for the current state of the most unprecedented real estate mutation that we have ever witnessed.
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Dave Salcido
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