The Worst Kind of Client - A Parable

By
Real Estate Broker Owner with New Paradigm Partners LLC EB #1326335

BrokeYour client is in deep trouble.

He's been living way beyond his means for a long, long time. He has a mountain of debt, maybe more than he could pay off in his whole lifetime. True, he has some nice things to show for it, but much of the money was spent on frivolous or wasteful items that never provided any real benefit - maybe they seemed like a good idea at the time, but now they just look dumb.

His income is down because his industry isn't competitive anymore - they were lazy and complacent and have lost their market position. They were slow to read market trends, because they thought they were the ones setting the trends, and they missed a lot of opportunities. Their focus continues to be on executive compensation packages and stockholder benefits - they could care less about the backbone of the business: their employees (who, by the way, have a union, but it isn't a very good one - their leaders are also more concerned about executive compensation and personal power than the people they represent.)

His assets are a mess, too. A lot of the hard assets are suffering from major deferred maintenance issues, and there is no way he can take on those obligations at this point. His paper assets are a shambles - accounting trickery, overvalued junk, and worthless blue sky that once was valuable but has been degraded by the public nature of his profligacy.

Your client doesn't have any credit left - he's maxed out all his credit cards, used up his heloc, and even has a couple of "payday" loans nagging at him. And he can't make the payments on what he owes without borrowing more. If there were a way to do that, it's obvious that he would only be digging a deeper hole.

AngryMaybe the worst part of the problem is his attitude - he feels "entitled" - none of this is really his fault and what's happening to him isn't fair. He just wants to get back to his comfortable life. As a matter of fact, he's even angry that he has to deal with this stuff. He's in denial about the seriousness of it, and has become evasive, untruthful and self-serving in his attempts to avoid confronting it.

Your client wants you to solve his problems. But there are some conditions - any solutions can't really be too painful. They can't seriously affect his lifestyle and he doesn't want to make any real sacrifices. So forget about credit repair - he's not ready for that brand of tough love. He's convinced that there is an easy way to fix these problems and make this annoying situation just go away. He would settle, however, for just deferring it into the future for a while - maybe things will somehow magically get better if he can just buy a little time. So he wants you to help him get more credit.

He's your client. What do you do? Do you even want to help this guy? You've done really well by him over the years. Are you going to walk away? Do you have a miracle ready?

Posted by
Mary & Dick

Mary & Dick Greenberg
New Paradigm Partners LLC
2601 S. Lemay Ave. #41
Fort Collins, CO 80525
970-689-4663
www.maryanddick.com

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Re-Bloggged 2 times:

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  1. Marco Giancola 08/01/2011 07:24 AM
  2. Winston Heverly 08/05/2012 10:14 PM
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Topic:
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"Whacked"!!!
Tags:
national debt
the economy

Comments 139 New Comment

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Rainmaker
170,560
Ellen Kippel
Realtor Suffern Rockland County NY 914-588-2365
Weichert Realtors

After reading this, I am exhausted.  I think I need a nap.  I can't imagine working with this person - real or fake.  It's time to move on!  Take care and enjoy your day, Ellen

August 05, 2011 05:00 PM
Anonymous
Judy Graff

Dick and Mary, WE are the government.  We started two wars without thinking how to pay for them. We told wealthy people that they don't have to pay their fair share.  We voted -- twice -- for a Republican (George Bush) who squandered a surplus.  And now "we" want to "cut up the credit cards" and live within our means.  Here's the question: what should we stop paying for? Your mother's social security?  All the federal funds your state gets? The FAA?  Yes, we have lots of easy solutions, as long as somebody else is being hurt.

August 06, 2011 06:04 PM
Rainer
227,455
Karen Bernetti
Staging4Smooth Transitions Connecticut Home Staging

I realize your intention is to put a spotlight on the problems with our government BUT I just have to say I know this guy you speak of - intimately!  

"....he feels "entitled" - none of this is really his fault and what's happening to him isn't fair...... he's even angry that he has to deal with this stuff. He's in denial about the seriousness of it, and has become evasive, untruthful and self-serving in his attempts to avoid confronting it....."   

As a matter of survival we must learn how to deal with people like this.   They can be very charming - that's how we get sucked in.  This guy who "wants YOU to solve his problems" more than likely has addiction issues as well.  He's a bottomless pit - nothing you do for him will ever be enough.  What should you do?  Detach.  Run.  Save yourself!  

Unfortunately I have enough on my plate dealing with this guy - so I have little time to focus on trying to find the solutions to the problems our country faces.....sorry.  [Now there's an indication of a bigger problem]  Your parable is profoundly meaningful on so many levels....certainly more ways than you had intended.  Well done!  

January 27, 2012 10:55 AM
Rainmaker
124,583
Matt Robinson
Pensacola Real Estate (850) 292-4000
ERA Emerald Coast Realty

A parable?  That describes every client I have!  LOL.  Yes, I help him out...but just because he makes up 50% of the market, and if I don't...I'll be in his position soon. :-)

January 28, 2012 12:08 PM
Rainmaker
268,563
Inna Ivchenko
Los Angeles / Valley Homes
Mannis Real Estate Group

 I just had a nigh mare working with.....sociopath. She was very sweet to a certain point, but soon she had tantrum after tantrum. It was time for her to shine: she created a problem after problem complaining, blaming everyone, enjoying all attention........

March 06, 2014 12:14 AM
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Ambassador
1,029,423

Dick Greenberg

Northern Colorado Residential Real Estate
Have Questions? Need Answers? We'd Love To Help.
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