May 2010
Community Paper
copyright ©2010 by Community Paper College Park, Inc. All rights reserved.

Real Estate - It’s Not a Terminal Disease
by Mike Derenthal, Derenthal Realty Group

I often get a kick out of the reaction I get from others when discussing what I do for a living. The responses I hear have evolved through the years, depending in large part on the state of the market at any given time.

2000 – 2003: The “You’re Doing What?!?!” Years

When we bought our first rental property 10 years ago, I got a lot of puzzled looks from friends and family. “Why would you want to do that?” was the most common question we’d get. “Who the heck wants to be a landlord?”

This was back when real estate had a lower profile. Back when most folks just bought a house to <YAWN…> live in it. Back when we were all content to watch our property values appreciate at the paltry rate of 3% to 5% per year. Remember those days?

But I enjoyed it. Real estate was the right mix of sales, analysis, and unpredictability to fit my personality. No two days were the same. In 2003 I decided to make a go of it full time. I left a solid job with steady pay to start up my own real estate practice.

My mom was initially devastated. Her son with a degree in chemical engineering, an MBA, a fancy title and a 401k was about to give it all up to become … a real estate agent! Oh, the horror!

2004 – 2006: The “You Got In at the Right Time…” Years

It took me about a year to get established, but I soon found myself in a viable business, and most importantly – loving it. I was building a strong client base, always learning something new, and truly enjoying what I was doing day in and day out.

The comment I would hear from people during this stage was typically something to the effect that I “got in at the right time.” I didn’t care for that comment too much, but found it best to keep my mouth shut. At some point my mom, now in approval of what I was doing, actually started to tell her friends that I was “a visionary”. I still get a kick out of that one. Nothing like a proud mom to boost your hat size, right?

Things were going great. And everyone liked to talk about their real estate, because everyone was making money on their homes. What was there not to like about that?

But few of us heard the air that was starting to seep out of that big ugly bubble. Few realized that we were still on the happy side of what would prove to be the most hyper-inflated real estate market since the Great Depression.

2007 - 2009: The “I’m So sorry…” Years

Once we all realized the market had turned, and that there would in fact be no “soft landing”, I noticed a different reaction from friends and family. It was usually in a hushed tone. They would lower their voice, sometimes place a kind hand on my shoulder, and speak solemnly and slowly…“How ARE you Mike? How’s the business?”

And I’ve put the emphasis on “business” because you could just as easily replace it with “terminal illness”. So many people seemed to think that real estate was something awful. I could feel sincere gut-wrenching sympathy pouring out of their hearts.

Now, please understand – this is not a lack of appreciation for everyone’s concern. Trust me – this business can and does make me feel sick on occasion – but I think that’s the case with anything you do for a living. Overall, from day to day - I love it. Absolutely love it.

And yes, it has not been an easy past couple of years for myself or anyone else in this business for that matter. We often find ourselves playing the roles of financial advisor and grief counselor when dealing with folks who are upside down in their properties. That is definitely not fun. But it has also proven to be extremely rewarding when I can offer up advice on how best to deal with the situation. I’ve found that as the market has worsened in recent years that the bonds I develop with my clients have actually strengthened. Little did I realize when I started out in this business that those personal connections would be the most rewarding aspect of what I do.

2010 and Beyond….

So where are we now? It’s hard to identify a trend until its over. But I’ve definitely noticed a positive shift in the past 6 to 9 months. I don’t seem to receive as many condolences as I used to about what I do for a living. Other agents I speak with tell me similar stories.

I almost get the sense that people are rooting for us now, to hang in there. To keep fighting the good fight. And I’m not just talking real estate either. I think anyone who has been in business for themselves the past couple of years will probably tell you it has felt like a boxing match. They’ve been knocked around the ring quite a bit, but as they keep getting back up, their confidence and desire to succeed only strengthens They figure if they’ve made it through this, they can make it through almost anything.

I guess that analogy could apply to just about all of us actually. Business owners. Home owners. Employees. “Unemployed”ees. It has been a tough few years. Harder on some than others. But at some point things turn around. Things change for the better.

Trust me – I’m a visionary.

Feel free to drop me an email at mike@derenthalrealty.com.

by: Mike Derenthal, Derenthal Realty, www.DerenthalRealty.com
1520 Edgewater Drive, Suite E, Orlando, FL 32804
407-965-1919

See this month's ad by clicking here