September 23, 2007 at 8:41 AM #10382gracieParticipant
Kind of scary but…we know of a few people who are leaving the real estate/loan business and are now going into the retirement planning business. They are now working for big firms creating and advising people on retirement plans. I did not think they were good or honest in the real estate work and now they are doing 401k retirement plans!September 23, 2007 at 9:36 AM #85605waterboyParticipant
Both Real Estate & Financial Planning have always been filled with people who don’t know what they are talking about and will do anything to earn a quick buck. Large commissions come from big dollars products (homes & annuities/insurance)
I’m done with the sob stories of consumers getting ripped off because most likely that consumer was not patient and didn’t do any due diligence. Why would anyone give a $500k portfolio or a listing of a $500k home to somebody who just started in the industry….Sorry but they aren’t getting my businessSeptember 23, 2007 at 11:10 AM #85612daveljParticipant
I was at the wedding of a friend of mine yesterday. She was a mortgage broker and her firm shut down a couple of months back. She bought a place in 2004 with an ARM and little money down so she’s underwater from an equity standpoint and renting her place out now. She’s now living with her new husband who doesn’t make much money. The cashflow from her condo is negative about $700/month, which isn’t too bad all things considered but she needs to find a job to cover it. They borrowed money for the wedding.
Anyhow, as you’d imagine, a lot of the people at the wedding were in the mortgage industry. One of six that I spoke with still had a job and she wasn’t sure how much longer she’d be employed. One guy – another friend of mine – worked for his father who had built up a mortgage document-related business he started in 1982. For the last 10 years it’s been internet related. They had 60 clients in 2005 and now they’re down to 5. They’re shutting the company down at the end of October. My friend said, “We’ve made it through a couple of these cycles but this one is just too deep. Maybe we’ll bring it back in a few years if things improve.”September 23, 2007 at 11:29 AM #85615HLSParticipant
There was a huge over supply of people in these “sales” jobs. Many really weren’t needed, it was just dividing up the pie into smaller pieces.
The market can function without all of the people that have left. They can look for other sales jobs in different fields and find new victims.
Many people in real estate and mortgage weren’t qualified, able or capable to give average people advice about the largest financial transaction of their lives, but they did.
Most of the mortgage folks only knew that the worse they screwed the borrower, the more they put into their pocket, and they did.
It’s not like we are having a brain drain of highly intelligent, honest, ethical people flee the area.
It was a gravy train for many of them. They were so foolish, they didn’t even realize it and have nothing to show for it today except a pile of debt.September 23, 2007 at 4:27 PM #85634johnnyreParticipant
i have left the RE market ie investor/agent, i now sell used cars on a fairly large lot. I am betting the used car market will explode because of low fico scores and the “Home Sweet Home” atm machines shutting down, for the $60k SUVs………….
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