February 2009

Take Two and Call Me in 2012

We simply do not want to understand the Evolution of the Real Estate Industry nor do we seem to have the resolve to reinvent our out-moded models that are incapable of producing the necessary economic results for Broker-Owners.

Franchisors are powerless without Broker-Owners and the old line franchise arrangements are no longer applicable in the The New Real Estate Economy.

Reality is always a very tough pill to swallow. It goes down, it seems, with the greatest degree of difficulty. Acceptance of reality is the great precursor to popping the pill.

Let me break it to you gently…the way we did business will no longer produce the ROI and sustained profitability required by Broker-Owners for the risks they take.

Tests have been run. X-rays have been taken. MRIs and CAT scans have been completed. The economic blood work has returned from the lab. The diagnosis is in…the party is over…without radical changes in lifestyle and barring miraculous intervenion, we are most likely terminal.

The Way We Were

The primary fuel for traditional brokerage profitability used to be control of property information coupled with free-flowing access to mortgage money. The relationship between brokerage profit and the control of information and lending is being redefined and will become more complex and demanding, creating fewer Brokerage successes but better leveraged and approriately balanced lending portfolios for banks.
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