The Billionaire, Me and Happiness
| The event was held at my alma mater. I was wearing a suit, aka the costume. A guy in a rumpled suit approached and asked my name, “Michael Holloway,” I replied and asked, “Who are you?” He told me his name and we shook hands. I knew the name.
Post festivities, I said to my wife “The handshake of a billionaire isn’t any different than yours.” (She’s no billionaire.) On my drive home the next day (My new acquaintance flew by private jet to Indy) – I thought about money and happiness. A certain level of income and assets make life comfortable and easier. My sense is the billionaire’s life isn’t any happier or easier than mine and I was reminded of a favorite tale: The author Joseph Heller (“Catch-22”) was at a party and Heller’s friend pointed to a guy across the room. “See that guy. He’s a hedge fund manager and makes more in a day than you make in a year.” Heller replied, “I have something he doesn’t have.” “What’s that?” asked Heller’s friend. Heller replied, “I have enough.”
Recently I saw a “Catch-22” (absurd) example of how a bad-representation decision – an absurd choice on how to spend money – can limit the ability to get enough. Follow along. A home was listed for sale by Sell Fast real estate. The listing agent was Linda Lister. A buyer viewed the home and was represented by a “buyer agent.” The “buyer agent” also worked for Sell Fast. That’s correct, the listing agent and the “buyer agent” worked for the same company. It gets better. I’ve raised the question in the past: How can a “buyer agent” – working in the same firm as the listing agent – represent the buyer? Is the “buyer agent” going to negotiate against his own company? In this instance the “buyer agent” worked in the same company as the listing agent but wait… The listing agent was the “buyer agent’s” sister. The absurd part:
If Kara Swisher can refer to Facebook as Fakebook can I call this type of representation Bogus Buyer Agency? You don’t have to use Homebuyer Associates. I’d like you to use our service because it’s an ethical and fiduciary service, but if you don’t use us, please, please spend time to understand how the real estate system works. Why is this important? It’s about enough. In a perfect world people would save enough for retirement. They’d end up with enough. People don’t. To end up with enough you have to question. The same logic I recommend for real estate can be used to buy a car, invest and obtain a mortgage loan.
It’s about making the correct choice so that you end up with enough pie, not a piece of pie. Thanks for reading, This email was sent to [email address suppressed]. |
Enough: There is a figure that represents enough and allows you to have a comfortable life. It’s hard to get to “enough” if you don’t understand money, the use of money or who works for whom when spending or investing your money. This is true in real estate, car buying, investing and most any matter you spend money on.
How was the purchase price negotiated? Did the buyer pay too much? If the inspection showed defects, how those defects were negotiated on behalf of the buyer matter. How was that done? If a value issue arose as part of the appraisal contingency, how did the “buyer agent” negotiate with his sister…within their own company?
Bought correctly, owning a home is a forced savings account and represents a piece of the enough pie. It’s difficult to buy right if you don’t understand whom the agent truly represents. It’s not about using Uncle Billy’s friend (If you want a friend, get a dog) – who is a real estate agent.