Real Estate Capital Markets in the United States

I could really appreciate the presentation Jessie gave about the history of Savings and Loans. Before his presentation I was not all that familiar with laws like Regulation Q that limited rates paid on deposits. When savings and loans companies were booming and saturated the market there were ways to stay competitive. Jessie shared that companies competed through having various branches making it easily accessible, good customer service, and providing gifts to customers like jewelry and toasters. When the market was booming it was great. However, no one thought about the downfall and the bust was very detrimental to the savings and loans market.

Jessie’s “Moral of the story” was that single family was locally. It used to be driven by real estate but now it’s driven by Wall Street. He recommended that everyone learn the lingo of the capital market so we can understand how money flows.  Another recommendation he made was to go after the niche markets as a way to set yourself apart. The best way to do this is to become an expert and extensively know your property and your customer. Jessie also encouraged us to find a job where they not only pay you but teach you. Mentoring and Coaching is very important in this business and helps to have someone to confide in and get advice from. I completely agree with the importance of a mentor or coach. Personally whenever I look for opportunities it is vital that there is some kind of support system in place. Throughout high school, undergrad and until this day I’ve had mentors. These are people I consider to be my center of influence from professors and academic advisors to family friends. Whenever I feel unsure or need a sounding board they are always there to cheer me on and offer advice. The last major point he made was to be careful anytime you work in an industry or business with regulated government intervention. He made this statement after educating us on the history of savings and loan companies that were once owned by lawyers. The government intervened from 1986-1995 to take away problem loans and in return 50% of savings and loans companies closed.