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Op/Ed

Should there be an age limit on the practice of real estate?

When a doctor’s hands get shaky, they can kill a patient. But when a Realtor’s mind gets shaky, a client can lose thousands of dollars. Should there be an age limit on the practice of real estate?

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cloris leachman

I was on the phone yesterday with a lawyer who has aged considerably since we last hired him. I spent nearly 30 minutes explaining how a school calendar works, and that children have three day weekends nearly every month. It took three of us 30 seconds to understand, but nearly 30 minutes for a seasoned lawyer to grasp.

In another instance, I watched an elderly doctor with hands so shaky, he could barely take my family member’s blood pressure, yet they would be performing open heart surgery in under an hour on this same patient under these same circumstances.

In both of these cases, these intelligent professionals should find an exit plan – write a book and go on tour, begin consulting or educating, or retire. What they’re handling is so life-altering, that one slip can change so many lives.

In both cases, their own livelihood is at stake, as is their pride, and stepping down can be crushing not only financially, but emotionally.

Also in both cases, neither party was aware that they’re slipping, and as we all age, it is difficult to tell that we aren’t as sharp as we once were. I’m only 32, but I sure as hell can’t sprint up three flights of stairs like I could at 22, just a decade ago, but that’s so obvious – what is slipping that I can’t even grasp because I’m experiencing it first hand?

This brings me to the practice of real estate

In considering the plight of the lawyer and the doctor, I got to thinking – can’t an aging real estate practitioner slip and cause their client thousands of dollars, just as easily as the doctor can slip and knick an artery? Can’t a loss of faculties cause damage to a transaction, sometimes without the client ever even knowing? Can’t a slowdown cause frustration when communications break down over basic concepts like how to use a fax machine?

I wondered to myself, should there be an age limit on the practice of real estate? Perhaps it should be like drivers’ licenses where at a certain age, basic testing is required. Sure, continuing education is required to keep a license active, but anyone can have their assistant take the internet-based test for them.

Shouldn’t consumers be protected?

There is no real success metric in real estate that can be measured – with lawyers, cases are won or lost, and with doctors, patients survive, or they don’t. In real estate, a transaction can be damaged in immeasurable and typically unseen ways.

Then I thought about Cloris Leachman

Cloris Leachman is 87. If you’ve ever watched Raising Hope, you know that she plays Maw Maw, the senile old bat who is always up to some crazy antic. The show pokes fun at a topic that is painful and not at all funny – aging and senility.

Her character affirms all of our fears of the aging process, that at a certain point, we lose it. All of it.

But then, you must remember that Cloris Leachman is 87. She isn’t actually Maw Maw. She is a wildly successful actor who goes on press junkets, films the show, does sketch shows when invited, answers email interviews and fan mail, and tweets, on top of managing her personal life.

She remembers every line flawlessly, she delivers them perfectly, and she brings Maw Maw to life.

What would Cloris think?

Leachman brings up the dichotomy of the aging process – the elderly person who can barely dress themselves (Maw Maw) versus the same aged person who performs brilliantly year after year.

What would she think of my lawyer and that doctor? I’m guessing that because she has full control of her 87-year old faculties, she’d tell them to retire because they suck, not because they’re aging. She’d tell them to not put people at risk because they’re scared to step down.

Ability has nothing to do with age. This 87 year old can act circles around an aspiring 20 year old actress. Ability has everything to do with ability. Period. There are plenty of 25 and 45 year old coke-head Realtors that put clients’ transactions at risk, and there are many more lazy agents who can’t negotiate, take crap deals, make a mess of paperwork, and expect a paycheck.

Ability has nothing to do with age

Lou Holtz said, “Ability is what you’re capable of doing. Motivation determines what you do. Attitude determines how well you do it.” Bingo.

So no, there should be no age limit on the practice of real estate, but there should be a stupidity limit. I’m pondering ways to impose such a limit, so stay tuned.

Originally published April 2014.

Lani is the Chief Operating Officer at The Real Daily and sister news outlet, The American Genius, and has been named in the Inman 100 Most Influential Real Estate Leaders several times, co-authored a book, co-founded BASHH and Austin Digital Jobs, and is a seasoned business writer and editorialist with a penchant for the irreverent.

Op/Ed

How can a small business beat a large competitor moving in next door?

(EDITORIAL) How do you stand out when a big competitor moves to your neighborhood? Reddit has a few suggestions – some obvious, some not so much.

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Man talking on virtual meeting about a competitor moving close next door.

Small businesses, especially restaurants have been hit hard by lockdowns. Many closed for good this year, and those that are still hanging on are in a precarious position as their local economies shift. So how can a small business beat a large competitor moving in next door?

A user on r/smallbusiness asked a timeless question that is especially relevant right now. Reddit user longbottomjr writes:

“We have a strong competitor moving in next door in a few months. Our restaurant is one that pays the bills but […] I feel that if this new competitor takes up enough market share we will lose our restaurant. Can anyone chime in with resources/ideas I can use to help put together our plan of action?”

Comments quickly pointed out what common sense would dictate.

First, ensure the basics are covered. Being clean, quick, friendly, and high quality will take you far, no matter what competition you’re up against. And as u/horsemullet said,

“Customer service also happens before someone walks through the door!” So make sure that your online hours, contact info, menus and social media accounts are up to date and accurate.

Another point emerged that is less intuitive: Competing businesses will naturally gravitate towards similar locations. This is a well-established phenomenon known within game theory as Nash’s Equilibrium. In the restaurant industry, this is actually a good thing. It brings entirely new customers to the area and ultimately benefits all the other nearby businesses, too.

Take advantage of the attention by offering something other spots don’t, like loyalty rewards, specials, unique offerings, or meal deals.

Speaking of the area, a great way to stand out from larger competitors is to build relationships with the community you serve, as u/sugarface2134 emphasized,

“In my city there are two Italian restaurants in the same location – just across the parking lot from each other. We always pick the smaller one because the owner truly makes you feel like a member of the family.”

That’s an advantage of being a small, local business that all the money in the world couldn’t buy. Get to know your customers personally and you will not only create loyal regulars, but friends as well.

One of the top-rated responses, from u/seefooddiet2200, made an often overlooked but critically important point.

“Talk to your staff and see if they have any ideas. These are the people that are working every single day and may know one or two ‘annoying’ things that if they were switched would make things easier. Or maybe they see that there’s specific things people ask for that you don’t serve. Every single [one] of your employees is a gold mine of insight, you just need to be open to listening to them.”

That is applicable to any business owner who wants to improve their practices.

Ask employees what they think, especially the ones who have stuck around a long time. Not only do they know the ins and outs of their jobs, but this builds rapport and trust with your staff. A good boss realizes that employees are more than their job descriptions. They have valuable thoughts about what’s working and not working, and direct access to customer’s opinions.

Good luck, u/longbottomjr! We’ll be rooting for you.

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Op/Ed

How much minimalism is enough to succeed?

(EDITORIAL) Nobody starts a business praying for failure and debt, but if we don’t identify how little is too little, we not know when enough is enough.

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Enough peace

You’re scrolling on Facebook when you notice your friend’s feed, and the most recent post says, “You are enough.” You may recoil and think to yourself, “blech” what does that even mean? Touchy-feely crap. I am “enough.” Ha! I’ll show you enough.

While exploring the concept of being enough may make some folks queasy. Asking the question: How does “enough” translate from our lives to our business? is it relevant and can help us get to our raison d’etre, our sweet spot, our perfect pitch, our business manifesto. And, what is “enough” for us in planning our life and business goals.

Recently, I was watching a British show on Netflix. The gist is an “expert” who goes around to businesses to help them update their brands and improve business. In one episode, the host walks into a man’s clothing shop and asks the owner about his wares. He explains in one section he has clothing for the “fat bastards” (I am not making this up – he literally says that), in another section he has styles for the “trendy” kids, and in another section, clothes for the businessman.

The owner thinks he’s doing great, but his sales suck, his customer service sucks, and he doesn’t understand why.

From the outside looking in, it seems pretty obvious, that the guy is trying to serve everyone and in doing so, he’s doing a crap job of serving anyone. Plus, he was rude and literally didn’t understand that calling customers fat bastards wasn’t good customer service.

From a business point of view, this guy had no concept of what it meant to be “enough” because he was trying to serve too many potential customers and it was a very disjointed effort.

His problem is not unusual. Think about it. Haven’t you gone into a locally owned business to find it selling too many items that make no sense? Kind of like a gift shop gone wild. You look around and see things you like, but you get confused and leave without making a purchase. Instead, you walk a few doors down to the store that specializes in jeans or shirts or cool shoes and you drop some virtual Benjamins.

In his blog, Paul Jarvis expounds on the idea of being enough. He says, “In order to be more aware of what makes sense for our lives and businesses, we need to be aware of what enough means.”

And, that my friends, depends on who you are. Enough to me may not be enough for you. But, Jarvis explains is that it can’t be minimalism for Instagram’s sake. Meaning, that we aren’t truly living in an enough “state” if we are trying to be what we think others want to see.

Let’s not get caught up in the “yeah, but it’s Paul Jarvis.” Cuz, he also states this isn’t about judging others, because if you ain’t got much, it can seem pretty patronizing for someone to tell you to live with less. And, that isn’t what we’re talking about here.

If we go back to the business concept, consider Apple. The company started off building computers. It veered into phones and watches, but still tied to the idea of smaller versions of its computers. It stayed pretty true to itself. The concept was built around one product. The stores make that product shine. And, we as consumers feel we aren’t enough until we have the newest gadget and gizmo they sell. Brilliant.

For you, having the latest gaming system or all the streaming channels may be the thing. For me, I get by with basic cable and Netflix. My enough isn’t yours.

So, if we are truly cognizant of what we want in our business and lives, we need to understand what enough is for us. Not what is enough based on someone’s feed on Instagram, showing them with the Lambo (rented) and fancy clothes (rented) and fancy location (maxed credit card). We need to consider where we, from a truly authentic space, can live enough.

Per Jarvis:
“Enough is the antithesis of unchecked growth because growth encourages mindless consumption and enough requires constant questioning and awareness. Enough is when we reach the upper bound of what’s required. Enough revenue means our business is profitable and can support however many employees/freelancers we have, even if it’s just one person. Enough income means we can live our lives with a bit of financial ease, and put something away for later. Enough means our families are fed, have roofs over their heads, and their futures are considered. Enough stuff means we have what we need to live our lives without excess.”

One way to think about enough is to sit back and consider what would be your perfect day. If you were doing what you wanted – no holding back – what would your day look like. Imagine it. Are you really shopping and dropping $1k on a pair of shoes? Maybe. Or, are you hanging out with someone you love, doing work the way you want, having some food, walking your dog, doing yoga, CrossFit, etc., enjoying dinner, and heading to bed?

If you think about business in the same way, what would your business look like? Would it be like 7-Eleven with Slurpee’s, Slim Jim’s, lottery tickets, and birthday cards? Or, would it look more refined? Because Target and Walmart have a lock on mega shopping experiences. 7-Eleven has a lock on, it’s 4 a.m., and I’m wasted and need crap food.

Consider, how does your idea of equilibrium impact the outcome of your business, your work, and your idea of success?

Most of us would love to be wealthy and that is our guidepost when it comes to the idea of business success. But, when evaluating it from the perspective of “enough” our viewpoint might change if one considers debt load to profit or unsold, stolen, or damaged goods to profit. If you have more debt than cash, are you enough?

“Where things can go awry is when we never consider what enough is as a marker,” Jarvis says. “When this happens, we don’t solve for enough or optimize for it, we just keep going and going with more and more.”

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Op/Ed

Don’t just set and forget your succession plan – update it regularly!

(EDITORIAL) You may think that once you have a succession plan in place, you’re set for life, however, it’s recommended to continually update them!

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Older man looking out of window representing a need for a succession plan.

We’ve written before about how the everlasting success of the business will need to outlive you, and this is best conjured up in a succession plan. This is especially true for small business owners and entrepreneurs that have built an empire for themselves but aren’t sure what the future will hold beyond their passing. This is the exact reason that succession plans shouldn’t be set and forgotten, but instead consistently updated.

What are some of the obvious reasons that you may need to update your succession plan?

  1. Health Issues
  2. Marriage or Remarriage
  3. Changes in health in executors or guardians
  4. Changes in the law
  5. Changes in Residence

Now, for the not-so-obvious reason: It should be updated when any personal circumstances changes, which most likely happen often. This is why a will is like your home, an investment that needs to be properly maintained, and if it is, it will last a very long time.

Examples include changes in economic or parental status, as well as designations or fiduciaries. Elders could be aging, siblings may be having their own life changes, as well as if any dependents are born with or develop special needs.

“Every state has different laws regarding the administration of a will,” he said.?“For instance, states vary regarding the required residence of an executor, inheritance tax laws, and whether a child can be disinherited by omission.”

The recommended procedure is to review wills and powers of attorney at least every five years.

Lastly, when should a will update to a trust?

  1. When you have some significant assets (more than $500,000) in your own name.
  2. If you have special needs beneficiaries.
  3. If you have properties in multiple jurisdictions (multiple states or even counties).
  4. If you have beneficiaries you want to control distributions to (e.g., distribute at ages 25/30/35).
  5. If you have kids from a previous relationship you want taken care of.
  6. If you may want asset protection (special trust needed).
  7. If you are a big dog (over $22M if married), to save taxes.

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