January 08, 2008

Millions of REIC will lose their jobs during the crash. But are they smart enough to have figured that out yet?

Do you think REALTORS and the REIC are starting to see that it's all over for them? That the good times aren't coming back? Should we care?

Stuck in the housing slump

Real estate has become a tough way to make a living. After some of the stormiest days in recent real estate history, the home sales downturn in San Mateo County is dragging lots of people through the mud.

The steep slide subprime mortgage crunch has tentacles reaching far and wide, well beyond the cuts among real estate agents, home loan companies and mortgage brokers.

The list of victims goes deep: contractors, title companies, termite inspectors, carpet layers, hardware stores, painting contractors and even the cities of the county, which depend on property taxes and home-sale transfer taxes for fire and police protection, libraries and other services.

"There's a lot of people out of business right now," said Geoff Craighead, president of the San Mateo County Association of Realtors. "Lots of people came in to get rich in the last few years, and now they've got to get realjobs."


Tangelo Mozilo said...

I think that the REIC are generally more aware of the magnitude of this crash than are most fat American slobs because they have to deal with it from day to day.

Some of them must be aware that their livelihoods are in danger, but with rising unemployment and job growth at a near standstill, it's probably too late for most of them to do anything about it anyway.

Clotpoll said...

Keith, you and your stooges can crack wise here all you want. None of you has a clue as to how this game works. I get the feeling you're all a bunch of bitter, whining IT guys who see the people you support making more money, getting hotter babes and generally living large.

Of course, in about 4-5 years, all your IT jobs will be outsourced...and you all know it, since every year, your masters force you to work more and more for ever-lower wages. None of you add to the top- or bottom- line, so when it's time to pare the budget, you're the first to get the shaft.

Well, jocko, whether you like it or not: the only way to make serious scratch in this country is to SELL shit...houses, pharma, whatever. Of course, since most of you guys think you're an undiscovered Einstein, superior to plebes like us who can only sell things, this pisses you off to no end. Learn to love it.

This whole housing collapse thing is great. Half my competition gets blown out of the game- forever- and I don't have to lift a finger. In about six months, the seller capitulation/foreclosures/forced sales are gonna drive volume sky-high, and we'll just sit in our boats and let the fish jump in.

You guys, on the other hand, can fix my damn computer...and STF up.

Anonymous said...

"Lots of people came in to get rich in the last few years, and now they've got to get realjobs."

The remaining realtors fortuately wont have to find real jobs.

brokersleaveyoubroke said...

Well, Keith has been saying for a long time that REIC people are going to have to go out and find "real" jobs but I never expected a president of a realtor association to say it.

no bubble here said...

I just found an ex realtor crawling out of the bush this morning.He is camping under a bridge in sacramento.He said he lost everything because of subprime.He fears his life also because past clients are looking for him.I gave hime 2 bucks and this website address.He is looking for work in the bartending arena.Anyone have a job for him?

LauraVella said...

News article on Yahoo...the RE market won't be getting better in 2008...lower sales coming.

I think the realtors already know, but only because the news is everywhere now.

punter said...

Monday afternoon, 1/7/08, the PPT went to work right on schedule at 3:30 to prop the markets. This AM they continued with their interference and sent everything up at opening, even though the financial news is profoundly bearish. What a country!

Boom2Bust.com said...

Since the NAR is telling Realtors the residential real estate market will pick up again soon (recent NAR annual convention), I doubt many are too worried.

Shakster said...

We all will feel this ,and should prepare to eat Ramen,but I will eat Gormet Ramen.
Gold up 14 bucks 875.00 cool.

Shakster said...

Ramen is for Michigan too
GM has closed 200 dealerships,ford 140,Chrysler 138.
In the last two years this has been a non story in the MSM.
Anybody for "Auto dealer Implod-o-meter"

Anonymous said...

Now they got to get realjobs. He actually said that? Gee, maybe you should have thought about that while you and your buddies were selling over priced crap boxes to people who couldn't afford them in the first place.

Anonymous said...

yep. another thing Hpers have been saying for a while now. Not hard to predict.

Morally flexible said...

As a criminal defense attorney, I have noticed a growing number of people coming into the system as defendants who can't pay fines and restitution and say to the judge "I'm in real estate and it's bad right now. I'm not making money." Many of them are in on drug related offenses, which is not a real surprise. All carrer tracks can be a hotbed for such things. The real shocker was the number that are now getting caught, allegedly mind you, cashing forged checks and other negotiable instruments. Will wonders ever cease?

Rordogma said...

I think this is a reflection of a macro-economic reality. All these people were deeply ingrained into a paradigm that no longer is relevant to the progression of our society.

In order to survive, on a base level of instinct, evolution and hopefully, prosperity, they will need to make a drastic shift into another paradigm that will provide value to themselves and to society as a whole. This will be painful, but necessary and definitely possible.

Our country, as a whole, is experiencing the same phenomenon. Our country has lost it's way in terms of adding value to ourselves and the world. We don't manufacture tangible, useful goods anymore...minus bombs and oppressive finance. We don't have a sustainable, fair-trade based agriculture. Our economy is increasingly reliant upon voodoo finance, weapons of war, and exploiting the desperate.

Eventually, and soon perhaps, we will experience a 'reset' of sorts and will be forced to work towards a new paradigm. We will need to learn new skills that add value in new ways. We're all in this, one way or another. It will be wholly traumatic to most, but a boon of opportunity for the strategically placed, smart and lucky.

So, what do you know? How do you add value. What can you do? Take some time and think about what you do professionally and ask yourself what actual value you add to society. More importantly, how functional would you be without the assumed infrastructure around you? If you didn't have your corporation to provide supply and demand, if you didn't have debt and credit to create opportunities, if you didn't have Wal-mart and HEB to provide cheap goods and nutrition, if you didn't have your gasoline powered car to transport your stuff and your family...what would you do? What COULD you do?

As this point, nothing can be assumed. Things can and will be taken away, shifted to others, vaporized as if by magic.

Can you adapt?

Anonymous said...

No. I think they do not believe it at all. I spoke to a realtor today about a home she listed. The listing said the home was in a specific town when in fact is was in a less affluent town right next to it. When I asked about the location, I was told "Oh, for that price you'll never get into the more desireable location".

So, not only do realtors still lie, they still believe 500k is not enough to buy a decent home in a decent area.

I don't understand how it is legal for them to use the "bait and switch" method for listings.

I really, really hate realtors!!!

As far as this realtor was concerned, 500k still buys a piece of crap in a so-so town.

borkafatty said...

Is that a package of open Ramen or is that a realtor's brain removed from it's skull.??...kinda Flat huh!

born to lose said...

I own a small pizza shop in Orlando. For the last six years it was impossible to keep anyone over 18 years old. Now every day I have grown men asking for delivery jobs. All of them have prior experience in construction / reic.
Its amazing how bad it is in Orlando. My best driver is a Realtor.

tom said...

I recommend dropping an egg just before finished boiling, draining the water, then mixing in half the flavor packet. Then add pepper to taste.

Frank@Scottsdale-Sucks.com said...

Today, Mary Elaine's, Phoenix's top restaurant, announced they are closing.

This is only the latest in a long string of shop, restaurant, and business closures. I was last there in November and couldn't believe how formerly busy strip malls were mostly vacant all over Phoenix and Scottsdale. DC Ranch Marketplace is a good 60% vacant, and the big shopping center with California Pizza Kitchen at Scottsdale and Shea was literally over 90% vacant - a ghost town. There were also a ton of vacancies at the Promenade at Scottsdale and Frank Lloyd Wright.

Intero real estate, based in Scottsdale, closed all of their offices, and the area's largest Re/Max franchise went bust and shut down all 13 of their offices.

Yes, I think realtwhores are getting the hint that their "career" is over.

Anonymous said...

Housing news from Santa Fe, NM:

There was a big front page article about the housing slump this past weekend.

One big stat that I picked up on is that Santa Fe Realtors earned $7 million dollars LESS in commissions in 2007 as opposed to 2006.

Ouch! Better get a part time job to make up the difference, realtors!


bickerer said...

Can ramen eating in itself be a profession?

After all, these folks are accustom to being paid for doing pretty much nothing.

Anonymous said...

I know this is probably a dumb question but what is REIC?

Anonymous said...

Deep down inside they know the jig is up. It's just wishful thinking and lies now.

Anonymous said...

Well, jocko, whether you like it or not: the only way to make serious scratch in this country is to SELL shit

Well, jocko, once all the jobs are outsourced, who will you sell your shit to?

Anonymous said...

Its amazing how bad it is in Orlando. My best driver is a Realtor.

They have plenty of practice and should know the neighborhood bery well.

Anonymous said...


Real Estate

Anonymous said...

There are no need for real estate agents in this country anymore because there is no real estate market left. They are useless. The buying and selling of property can be done without them. They provide nothing but lies for their 6 percent. Oh I forgot they do go get the keys so they can open the door to the property you want to look at. Wow 6 percent for opening doors.

Anonymous said...

The bank and lenders were the gas stations that handed out the free gasoline (funny money) and the real estate agents had the matches that lit the fires (promises of riches to losers) during the real estate bubble. They are responsible for this mess.

evildoc said...

---Well, jocko, whether you like it or not: the only way to make serious scratch in this country is to SELL shit...houses, pharma, whatever.----

Yep. And the only way that works is if there are folks who can BUY sh**.

When that fails... well.. there ya go.



Anonymous said...

I like the fact that real estate slobs armed with a college degree now have to get off their fat asses and wash dishes for a living.

I'm very cozy at night thinking about such a joyful situation.

I want to dress up some realtors like babies and feed them cold ramen and rice milk.

See how they like it!

Let 'em eat cake too!

Cad Pill Stool said...

@clotpoll...hey white collar ID10T - ever hear of BPO? That's Business Process Outsourcing - and affects ALL white collar jobs. So, sure, me and my IT brothers may be the first to go - but the rest of the good-paying jobs are coming damn quick after.

So, be careful about gloating so much yourself. Because if fewer customers have money, then that means less sales and - yep, fewer cocky sales jockies.

In your case, that would be a good thing.

On another note, I live in east Bremerton, WA, and saw the first sub 200,000 house in 3 years.

@Bickerer - hilarious comment.

@Keith - any chance housingpanic.blogspot.com will sponsor a Ramen eating contest?

Frank@Scottsdale-Sucks.com said...

Well, jocko, whether you like it or not: the only way to make serious scratch in this country is to SELL shit...houses, pharma, whatever.

Agreed; after all, I'm a bestselling author of sales books so I know this better than anyone ... HOWEVER ... I buy stuff all the time without paying a 6% surcharge on any of it.

The Internet changes everything. The Internet is how I started with nothing and became an international bestseller - I couldn't have done that without the Internet. And guess what - the Internet is about to make realtors a distant memory, just like it did to travel agents.

Jocko, get off your a** and learn an honest trade because your days of scamming 6% from hardworking honest people are OVER.

PS - You might want to look into learning IT, because there will be a lot more computers online soon to replace all of you bankrupt, unemployed realtwhores.