Arnold has become completely addicted to a TV reality show about young real estate brokers making million (well, read two million, five million, nine million) dollar real estate deals, buying and selling apartments in New York. Since in a perfect world, he would love to have one of these places as he adores it there, it is only logical that once he discovered this show he would need to sit in his study and watch every single episode he could find and download online. Occasionally I hear whoops of glee floating up the stairs, when one of the young turks either closes a sale or (in the case of a few apparently horrid clients) the nasty people are turned away by co-op boards. Or something else happens which he must immediately report to me on a TV break standing in the kitchen. I guess I’ll have to break down and watch these episodes myself; he is having so much fun with them!.
I have stood over his shoulder and looked at his computer screen at some of these exceedingly wealthy people, being shown these apartments, just long enough so that it reminds me of some of the really awful people I met in my former life as a financial advisor. Obsessed by the money game, they only wanted to keep making as much as they could, oblivious to any long-term risk. Anything I said to these folks, even to hint at the idea that the market might not go up forever, and that they maybe needed to be a little less greedy and a little more protective of the assets they had accumulated, fell on completely deaf ears. These were the people who shopped for financial advisors like the newest and fanciest cars; searching for people who would reinforce their own desire to buy a bunch of the then-current strange derivative concoctions being sold like hotcakes everywhere in the country. They wanted someone to agree with their beliefs and reassure them that their investments were sure-fire winners as they wrote up the orders to buy. I would always only have one, relatively brief appointment with people like this, before they went elsewhere.
But I was not liking what was being presented to me by young wholesalers coming into the office and though it cost me a lot of money in commissions and trailers, I refused to have anything to do with it. For the most part, these whiz kids couldn’t even begin to explain how these investments were really constructed. And I was in turn becoming more and more conservative in my allocations for clients as I felt increasingly worried about what was going on in the U.S. economy. Nothing – in spite of wanting and needing the income and the new clients in my book – could make me comfortable with where it seemed to me that the markets were going. I kept saying to Arnold, even as early as 2004., “we need to go to all cash, get rid of our fancy Santa Fe house on five acres, ditch this lifestyle, and get out of here while we can…” I could see, through the tunnel, the distant headlight of the 2008 locomotive coming down the track, and I sensed that when it roared through that tunnel and crossed paths with all of us innocents, it was going to be lambs to the slaughter. With us in starring roles as the lambs.
By the time the excrement, as they say, hit the ventilator, we had achieved our goal and gotten “outta Dodge” with our assets pretty much intact, a nearly full-price offer on our house, and we had bought the house we now inhabit in Mexico for cash. In turn we tried and tried to convince my parents to sell their house and downsize while they could, but old age, illness, fear, and rigidity all took their toll and it was impossible to get them to even address what I sensed was a looming financial crisis. They really didn’t understand the urgency of it, so we finally decided to just take off ourselves in 2006, and leave them where they were, sort of frozen in place with round-the-clock care in their beautiful, huge house, which ultimately drained almost every penny they had. All very sad.
But now they are both gone, and following their deaths we are more determined than ever to enjoy whatever time we have left and to make the right decisions. We found this new house we liked a lot, put ours on the market, and sat back to wait for Mexican immigration to clear the decks for our seller so that she might be able to evade some of the horrific taxes on property sales they foist upon foreigners without permanent resident status. We both had become used to the idea that this was going to take several more weeks at the least and settled into a mode of just waiting, when the phone rang a couple of days ago and it was our brokers saying “Your seller just got her visa, and we are closing on your new house tomorrow; be at the Notario’s office at noon with your passports!” So we went flying to his office in Chapala, documents in hand and sat there for two and a half hours while the Notario and his assistants rushed around like crazy people trying to get the documents in order. They were completely unprepared, and we decided that the brokers had just decided they had had enough of us and our seller and her visa problems and us squawking about it, and they were going to get this deal done and get their commissions already, no matter what.
In Mexico, a Notario is far more powerful than a U.S. “Notary Public”. Notarios are specially trained lawyers who are almost like judges in the U.S. system. They can make decisions about charges due or waived, taxes due or not, what deductions can be accepted, a whole host of things. There are only so many Notario “slots” available in each part of the country and you can see pretty quickly that they are able to make a whole lot of money and have a certain amount of power. In our case, it seemed like our file was just tossed on his desk a few minutes before we got there, and it was pretty chaotic as our broker, the seller’s broker, and the Notario’s two assistants plus the great man himself reviewed all the papers literally seconds after they had emerged wet from the printer. But we got it done, all signed, sealed and delivered, we got the keys, hugs and kisses and bouquets of flowers were given to the seller with many “¡felicidades!” – a Mexican tradition – and before we knew it we were out on the street with a cottage-cheese container filled with keys and two garage door openers, a manila folder with our escritura (deed) in it, and quite a bit poorer than we had been a couple of hours previous.
Of course we HAD to go over to the new house and walk around and see it for the first time empty of the seller’s furniture and belongings. We realized both how much we like the place and at the same time how much work we will have to do over the next couple of years to make it truly “ours”. Nowhere even close to a million dollar deal, but we think we will be happy there. I thought it might be festive to go out to dinner to celebrate but we were both so completely exhausted at the end of the day that I threw something together and we both just crashed. We figured tomorrow is another day, we’ll go over there and take a load of stuff over and slowly begin moving things in. We are still in a bit of a state of shock! So typical of the way things happen here – you wait and you wait and just when you think you’ve made your peace with the idea that this is Mexico and everything moves at a snail’s pace, whatever legal process you are in makes it to the top of someone’s pile and you have to be in their office in ten minutes ready to rock and roll. Oh well!
The other big real estate news of the week was that the sale of my parents’ house in Santa Fe was finally concluded, so that is another huge chapter in our lives that has closed. We have our house now, and thanks to the favor of the real estate gods, had the funds comfortably in hand to pay for it. We will move in over the next couple of weeks, and then hopefully sometime within the next millennium we will get our present house sold, and we’ll be done with all these real estate transactions, and get on with it, whatever “it” might happen to be. Hopefully I have a while to figure it all out.