Mishmash – February
Micro Steps of Progress Can Be Inspired by Micro Information!
Mishmash is a (generally monthly) summary of small stuff which comes across my desk or forms in my head, which might be the key to unlock much bigger issues our readers are facing.
And, at least, it is a way to clear out my files and stuff which has gotten stuck in my head!
FORGIVENESS
American tend to forgive (and most forget quickly). Life is not about being perfect. President Clinton (eventually) apologized, and he survived. President Nixon never acknowledged his errors; his own party ran him out of office. Others knowing you admit when you are wrong builds a level of trust and support.
UNCERTAINTY
Smart leaders in business and government adjust quickly to a new cost structure. Adam Hersh, senior economist from the Economic Policy Institute, notes, “What’s nearly impossible to adjust to is the uncertainty.”
FAKE IT TILL YOU MAKE IT
Remember 2010, when everyone wanted to do deals, but no one knew the path to close anything. Consider micro deals (ala micro steps) you can close no matter the economy. Another option is to remain visible. While at UDR and FPO, when we could not raise equity due to uncertainty in the NYSE, we continued to receive, review, and make offers on properties…at a price substantially below the likely strike price but above insulting. The brokers looked good—they were (at least) producing offers from established buyers—and occasionally, down the line when the property did not sell to anyone, the owner would reach back out to us to discuss alternative ways to consummate a transaction.
ACTUAL VS. PROJECTED
Brokers are great authors of fiction. Beyond the first year of a real estate acquisition, income no longer grows 2x the rate of expenses! A business with a new owner is not going to successfully open 10 new locations without running out of capital to feed the operation!
FOCUS ON PAST PERFORMANCE
While past may not be an absolute prologue, I love when a broker (e.g., Jeannie Keen at Sunbeltroanokeva.com) recalls the good AND bad in a case study of a business sale. How Jeannie and Mike faced together a potential disaster, pivoted to a better path, and brought the owner to a successful sale has the making of a great mini-series for cable TV!
MENTOR SUCCESS
“Business owners look for people just like themselves and expect them to be driven the same way”—Steve Preda. “Most people you hire will be less resilient. Your job is to build them up—mentor and express confidence that they can do great things." Unless you had a great mentor, consider learning the “how to” from someone who has “been there, done that” (amazon.com/author/stevepreda).
LOOK ELSEWHERE FOR INSPIRATION
Sometimes insight and inspiration come when you move yourself away from your day-to-day. MARVEL movies show how to overcome the impossible when there is no other choice. The book THE WOMEN explores the life of Army nurses in Vietnam, when chaos was constant, trying to help the wounded heal, while their own survival was under constant challenge. Bob Lefsetz (https://lefsetz.com/wordpress) is a great music critic…and comments about EVERYTHING happening in the world. He will entertain and often infuriate the reader.
BOTTOM LINE
Thank you, loyal readers. Please introduce us to others who might enjoy our insights on realty and business and how both are impacted by the economy and politics.