Problems...

The real estate industry is going nuts. We all see the news, read the horror stories and witness giants such as CITI and Countrywide scramble while their stock prices tumble and tumble and tumble...
Rust Belt city mayors recently met to discuss the mortgage mess. With all of the media hype, government officials are calling for changes. They are calling for help. The question is... will help arrive?
I hope not. Here is why. The mortgage mess is due to a few factors.

1. Lack of Consumer Education. Borrowers were told two things:
-Your credit will improve. This is true IF you embrace responsible spending.
-Your home will appreciate. Long term, this is always true. Short term, there are no guarantees. This is especially true for borrowers who didn't treat their home as an investment.

2. Greed.
-Wall Street was getting rich. Can you imagine 1% of hundreds of billions of dollars? -Brokers. While Wall Street was getting fatter than fat, individual mortgage brokers seized the opportunity to gouge clients on their loans.
-While 1% of hundreds of billions is hard to imagine, a $10,000 profit on a single closing hits a little closer to home.

3. Government -A president who wants to increase home ownership (Great principle, but the means to this end has proven errant).
-Greenspan. The jury is still out, BUT interest rate cuts made unaffordable homes, very affordable (for the time being).

Looking for solutions? Check out the next post.

It's Not the Shoes!

(I want to preface this article. I'm not a great basketball player. Barely above average and far from great.)

On the way home from work today, I saw an open court. I happened to have a ball in the back seat so I stopped and shot around. I don't suppose I looked like much of a basketball player in running shoes, khaki shorts and a polo. It was a beautiful day and I hadn't played in a few months so I thought I would seize the carp or whatever.

I don't think I'm the only one who didn't think that I looked like a basketball player. A younger kid (later found out he was 19) approached me with a big smile and said, “Wanna hoop?”
“Sure,” I replied.

As the game progressed, a few things were evident.

1. I'm fat and out of shape. I was dying out there playing half court 1 on 1. I need to get on the treadmill!
2. I was a lot better than he was.

After winning three games, I was literally laying on the court. We were talking and the excuses began to pour like rain.
“I didn't have my shoes.”
“I haven't played in a couple of weeks.”
“I usually play against poor competition.”
“I usually don't play 1 on 1.”

If I had played in the past few months, was wearing basketball shoes or felt that I was actually a decent 1 on 1 player, these excuses could have carried a little bit more weight. (Frankly, even if the excuses were legit, I was too tired to care.)

Driving home, I took some time to think and reflect. Here are some of my thoughts:

• What excuses hold me back?
• I'm exhausted.
• Am I looking for reasons not to succeed or am I proactively searching out success?
• I'm exhausted.
• Do I have a plan/goals?
• Am I making these goals a reality?

I would encourage anyone looking to buy a home or invest in real estate to answer a couple of these thoughts and questions. I'm a big believer in personal check ups. If I don't have a direction/purpose/goal, I find myself getting by rather than getting ahead.