Following ULI Triangle’s two-part round table on REO/Distressed Assets, we asked attendees to share anecdotes from the past that SHOULD have warned them that recession was imminent. Of course, hindsight is 20/20. Below are a few examples of excess that the next generation should heed as signs of impending doom.
You know a meltdown is imminent when:
- The company partners debate about buying a jet versus a helicopter and end up buying both. (Bankrupt 18 months later)
- Your doctor gives you real estate advice
- For a grand opening in Atlanta, the company flies the corporate jet from Ireland to Cuba to pick up a cigar maker for the party, then flies him back home to Cuba (Bankrupt less than 1 year later)
- There are no Rolex watches in the pawn shops
- Bankers cold call you
So, now you are forewarned…