Projections can easily equal deception…buyer beware.

Projection as defined in the dictionary- an estimate or forecast of a future situation or trend based on studies of a present one. HMMMM sounds super interesting and this is used a lot in my world and happens to be well, for me in the same bucket as reasonable, these words need to be used carefully as they are deceptive at times. So I was watching one of my favorite TV shows SHARK TANK, the only reason I watch that is because I am at heart an inventor, creative and an entrepreneur. I also watch it to see how stupid people can be and make the wrong decisions out of desperation and use their emotions in business. Another positive of the show is to fully understand who you are swimming with at all times.

So being in Real Estate and having worked at various large places I like to analyze a particular shark, so there was a presenter and he was discussing numbers and he happens to say, my number is based on my “projection” for next year..

So if we review the definition and know he is a start up then that number is based on his present production..and this one shark says projection ? Huh…puts her head down in dismay.

I found this peculiar since in Real Estate this term is used a lot. So many people get caught holding the bag when Brokers and Sales Agents over “project” same can happen in business, you might over spend based on your “projections” and wind up in a whole the next year. I found it funny that it was an acceptable term in Real Estate but the sharks felt my their reaction that it carried no weight… hmmm things that make you go hmmm.

So, if you are about to make a Real Estate purchase first consider a Broker who is direct and honest in their approach and does not use this word, because unless they have a gift, to see the future all they are selling is a word. The market moves, it is not a fixed market. Especially not in short term.

I recall 3 years ago people “projected” lease rate in excess of 120-170 per foot, unsuspecting people bought and now they can’t even get 70 bucks per foot so retail is down, so are the leases , tons of inventory on the market.

Imagine if you had a mortgage based on these “projections”, so how to protect yourself is to do some foot work yourself, align yourself with someone transparent who will deliver in real time because after all we live in the moment.

Understand where the market was, where it is and base your purchase on those numbers, make sure that if the market hits a down turn you are not strapped.

So be weary of smokey mirrors and people who are ok with projections in one capacity but not in another because clearly there’s some deception going on…

Happy Mothers Day to you !

Enjoy it ! 

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