Answering to your questions

I am sorry for the late publishing of this post, but I had some very important meetings plus I traveled by plane to Greece. Searching for opportunities, as our clients want, my company already has created a portfolio with very good options, which increases every day. Most of my meetings were focused on distressed properties and I am quite satisfied as the moment I receive them, I usually have the clients as well.
I also met today with a publisher, as the preparations for my book are soon to be concluded. If nothing wrong will happen, we will be able to officially launch it at MIPIM exhibition, held in Cannes from 10 – 13 March, where my company participates once more with a stand.
But, it is Friday, let us check upon your questions…

Cristi L. says: “BNR reduced its interbanking rate to 10% today (he sent the email yesterday). Is it the beginning for the solution of our problems and the end of the tunnel?”
The Governor of BNR reduced the interest, from 10.25% to 10%, but I do not really think that this will change something soon. I will be very surprised if the situation with the banks will return to normal standards before June or July.
For the ones without inside information, most of the banks and leasing companies face very high pressures, for many different reasons. Their reserves have to remain high, they do not trust each other yet, their mother companies try to avoid sending money here, while BNR is trying to protect the interests of the country and requests bigger funding, the clients have difficulties to pay their installments and the recent expansion has created high operational costs. This cocktail includes many more “ready to explode” ingredients and unfortunately a lower interbanking interest does not solve all problems. Euribor will be soon under 2%, but did you see any improvement because of this?
(PS. Once more, I will repeat my trust to BNR decisions and my appreciation to the way it handles the crisis. Without them and especially the Governor, I think Romania would be in a much worse situation now).

Mihaela D. says: “I read your blog since some months ago. I am working in Real Estate domain and I lost my job these days. What are the chances to find another company soon?”
I need to know more about your position etc, because the feedback is insufficient. As a general comment, I would like to draw your attention to something very important. In periods of crisis, you should not count jobs like the possibilities of statistics. I suggest to you to sit down and think: Were you good at your previous job? Did you serve your clients in the best way you could? Did you focus in learning more about your activity? Did you study by yourself so as to become better?
If you consider that you were a good professional, I do not think it will be very difficult to find now a new job, even with THIS crisis. Probably now with a lower salary, but still you will be employed and you will be “part of the game”. The first object for all is to remain in the business and the second one to take advantage of the opportunities that this new era brings.
PS. In case you did not pay too much attention in your work in the past, while unemployed you have the excellent chance to use some of your free time and read, get more informed and re-establish your position in this business.

Jenny k. says: “Yes, I also noticed that the traffic is less, as you wrote few days ago. Why do you think this happens?”
Without thinking too much, I would tell you some possible reasons:
– Multinational companies fire people and company cars are not used (probably the leasing companies are full now with cars sent back by employers).
– Thousands of ex patriots have returned back home.
– Thousands of Romanians, who purchased cars by leasing, face serious problems paying the monthly installments and try to reduce costs by all means, including less driving, whenever this is possible.
– It is not irrelevant with all the above the fact that lately for the first time I hear my Romanian friends talking about the subway with good words.
– The “presents” to ladies are reduced or asked to be returned… (as a well informed friend of mine announced to me).

Hans M. says: “Do you invest yourself now? Or you just suggest properties to your clients, you collect the money and then they discover their mistake?”
Yes, Hans, not only I force them to invest, but after I also suck their blood and go to sleep with my bed surrounded by candles. To reply seriously to your question… So far, none of our hundreds of clients in the last 4.5 years loses one euro from his investment! I am proud because all of them are still at profit. For me this means that the result of my consultation to them is positive, as they can sell with much lower prices than the past and they will still exit from their investment with profit.
Right now I am the first one who is searching for properties to invest in. Also I search and find opportunities for my clients, justifying why an investment is good or not. Looks like you have also suffered by someone else, but please do not judge anyone that you do not know.
While I was telling to clients that I have few properties to sell, as almost all the rest were expensive in my eyes, I heard about many stories, that there were many people tricked. But also I would like to remind you that the majority of the tricked ones today were the ones “who knew all” yesterday. Or they were just amazed by names or promises and forgot the real values and rules of an investment. I just hope that they learned their mistake.
PS. If you concluded a good deal and temporarily the price is down, you can also wait until the market will change again. A good property never loses its value, you should not be angry with anyone in this case.