My friend Kirk Nace is one of the foremost thinkers in the real estate business – he is an esteemed faculty member at Keller Williams University and he is a renowned business coach for real estate agents.
“Kirk Nace became involved in land surveying and development in 1979 and then became an active investor in 1981. In 1991 Kirk became an active realtor. Since THEN, Kirk has BEEN A PART OF, AND ULTIMATELY trained the top ½ of 1% of real estate salespeople and investors in the US and Canada
Kirk HAS OWNED OR WORKED with multiple ERA, COLDWELL BANKER, CENTURY 21 AND REMAX companies; his own private real estate company; mortgage brokerage business; private real estate investment companies; title businesses; property management companies, and his own private business consulting firm.”
Kirk is tough, and his fledgling blogsite “SMASHED FEET” is a testament to his no-holds-barred style of communicating the reality of the real estate market, today.
In conclusion, visit this website if for no other reason than to peruse this list of “questions to consider if you own real estate today.”
Who decided that “The American Dream” is/was home ownership?
Was it the National Association of Realtors?
Any agenda there?
Do they EVER tell the public the truth?
If in most parts of the country today you can live in and enjoy a home for a fraction of the cost of owning, why wouldn’t you?
What will happen to real estate taxes as the revenue received by our state and local governments continues to shrink from fewer real estate transfers, lower market values, less builder and developer profits to tax, higher defaults where taxes aren’t being paid etc?
Will our governments somehow start operating on less?
Will they actually cut back?
Will they attempt to raise taxes?
How will that impact demand?
How about insurance . . . as more and more premiums aren’t being paid for homes in default, what will happen to the rates being charged to those who are actually paying?
As more and more home owners find themselves in trouble, or simply choose to walk away from properties they are struggling to keep, or that they are just upside down in . . . what will happen to the supply of “distressed properties” on the market?
How will that impact prices?
As lenders continue to be forced to tighten standards and credit continues to more and more difficult to find, what will continue to happen to demand?
As supply goes up, and demand continues to stay low, or perhaps lowers further . . . what will happen to prices?
If you don’t believe in, or want to acknowledge, the law of gravity and you jump out of a tree . . . what happens?
Does that happen because the law of gravity applies whether you want it to or not?
Have you ever heard of the law of supply and demand?
Does that law care what you want to believe?
Realistically, which do you see happening first – supply somehow magically disappearing or demand miraculously reappearing without credit being available?
Do you think lenders can go on indefinitely not receiving income on loans that have been made, or do you think that foreclosures are going to have to increase significantly over the next several years?
Did you know that in most parts of the U.S. today that even if demand increased to the insane levels we saw at the peak of the market, current supply numbers would still grow as even that level of demand would not be enough to absorb the supply?
Can you say “too many rooftops?”
What can you do today about the fact that the number of dwelling units in the US was permitted to grow at a pace far in excess of the number of households?
How do you get rid of supply?
Are there options other than natural disaster or allowing the time to pass to absorb the supply?
Could you just burn it down or demolish it?
Do you think that’s a realistic option?
How long do you think it will be before supply is absorbed?
How long do you think it will be before demand returns?
Do you think the media will let us soon forget the pain of millions of distressed homeowners?
How will that impact demand over the next decade, or more?
What if you don’t live in a market where prices appreciated in a ridiculous manner, are you immune to this correction?
Or do the people buying US mortgage backed securities simply say “I’ve had enough and am not willing to provide more capital to buy paper that has a value far less than I was promised and for which I can’t collect on the so called insurance I was promised?”
Go to the website – Kirk just keeps going and going!
…SMASHED FEET is Kirk’s personal crusade for you to get real…