When Sincerity is just not enough Whether In Basketball Or Investing in the Reno-Sparks Real Estate Market and Beyond (part 3 of 3)
About this post: Joe connects his experience in losing a very important basketball game and his losing in the Reno-Sparks Real Estate Market in 2005.
I remember feeling sort of envious (I know. Immature huh?) of our friend who bought their house for $130,000 (2002-2003 price of a new home in Stead) and sold it for $250,000 a year after! So I sat back and thought, "Man, if they can do it, I can too! And If I wait a little longer I might not be able to buy a house."
But we didn't know anything about the real estate market (Nor did the Realtor or loan officer that was helping us. They were as clueless as I was about the real status of the real estate market ) So I determined to talk to a few so called investors before buying the house but basing it from what happened now and from their 'investment advice', they did not know any better either. Much like the people invited to speak on our major news channels.
While 'searching' (more of looking for validation of my uncontrollable impulse to already buy a home) for some signs on whether I should buy a home, I remember reading an article by Robert Kiyosaki. About Booms and Bust of real estate, he was warning people of what he saw as a coming real estate depression. Mind you, this was in November of 2005, Nobody in the main stream media as far as I can remember, nobody was reporting negative things about the real estate market. (disclaimer: I no longer believe everything Robert K. says or the principles he teaches but I still greatly admire him for his way of encouraging people and opening their eyes on the 'rat race') But In this article that Robert wrote he was absolutely right in the Money (the market was indeed about to experience a very deep recession)
but I refused to listen to Robert's advice. The selfish and greedy me ultimately prevailed. The result of this bad decision has been one of the most humbling experiences of my life.
Relating it to basketball, the whole team has been telling my teammate to pass the ball (in the championship game) because he was having a bad game and we needed to involve our other teammates, but he did not listen to us. Before we knew it, we lost by 30 points, GAME OVER.
In moments like this in the game of basketball, you turn around and say "Well, there is always next season" you take that pain in your heart, cradle it for a day or two but move on with your life.
Unfortunately, for some who are now going through troubles, heartaches and pains because of the wrong Real Estate Decisions we made (Two year Arm loans that adjusted and are going too because of lack of information) it is not that easy.
We made a mistake but that doesn't mean we should let it Kill us. We get beat once we stop trying, learn from our mistakes and keep on keeping on.
' Keep on KEEPING on'
I'm humbled to say that because of my losing tens of thousands of dollars in my bad investment, it has opened a whole new perspective and consequently, windows of opportunities that I have never dreamed of before.
And for the next Market Boom- (note to the market) Be afraid. Be very afraid. Because I and many others (including you my dear reader) will bounce back stronger and you can be absolutely,positively sure that we will be TAKING THAT LAST WINNING SHOT OF THE BALLGAME.
ALSO with that team that beat us, I Guarantee you that Next League it will not be THAT EASY.
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This was an interesting story--thank you for sharing.
I agree that no one in the mainstream media was saying negative things about the real estate market in 2005, but didn't you notice the inventory in the MLS rising? This is something that's been bothering me for a long time. I was keeping an eye out for a house during 2005 and 2006, and I noticed early in 2005 that the number of houses available (that popped up on the RGJ search site) was higher each day. Seems to me it started in the 3,000's. Now I think it's more than 9,000. One of the housing bubble blogs I was reading then (yes, way back then) said the way to know when the bubble was going to burst was when the inventory started rising. It seemed to take a long time, but the bubble did burst.
All this time I thought the realtors saw what was going on and were keeping quiet about it to keep the prices up. But you're saying that you didn't see it. Seriously, did you not notice that the inventory was rising in 2005? Maybe you noticed but thought the builders were keeping ahead of demand or something?
Ann,
"All this time I thought the realtors saw what was going on and were keeping quiet about it to keep the prices up. But you're saying that you didn't see it."
Yes, there are some knowledgeable agents out there who knew about the incoming market collapse. But in my opinion the overwhelming majority of us did not know any better. My theory for this is, it's hard to be objective in the market when your mortgage payments depends on the real estate market.
The other thing is we, real estate people(mortgage people, title people the whole nine yards) hang out in clusters, therefore the chances of thinking the same is VERY VERY high- group thinking/mob psychology. This, I realize now is very dangerous.
Ann, you brought up an excellent point in regards to following the housing inventory. Actually, I will now add that to the stats I watch closely.
Thank-you for that suggestion Ann.
What I like about what you and Ian are doing is you are not afraid to admit your mistakes and learn from them. Your readers (myself included) can learn along with you.
Well Sir,
With me being the organizer/captain/player/sponsor of the opposing team that beat the heck out you as well as your first client in your history as a realtor, I must quote the movie "Waterboy", when the guy said" Welivetofightanothaday!" that goes for your investment mistakes as well as your basketball team! You may have fallen, but I know you will get back up and climb higher than you were before, I have no doubt in my mind! Important people like you don't come around often, so I cherish the Friendship and brotherhood we have built throughout the years, I have known you for a long time, and I have seen you shine and fall, but you still shine inside and out! You have a beautiful family, and just know that you have 1 REALLLLLYYYY good friend that is trying to compete with you:) So I tell you again my friend, "Welivetofightanothaday!" You know I am always there for you, so never hesitate to ask me! Continue to stay true and just be you, trust me, you are really good at it!
Mahal Kita Pare,
Kentot
Ann,
Thanks for the kind comment. That's actually our hope. That people can share their own experiences in detail so other people in similar circumstances can learn from them.