S.E.C. Real Estate Observer

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Editor’s Note: This article first appeared in the May 1974 issue of the R.E. News Observer.

At this time, everyone seems to be concerned with the future of everything. We have been receiving calls from clients and other interested people from all over the country with the question, “What to do?” Should we keep our money in banks? Do we buy gold, silver and so forth? What kind of real estate should we retain?

In our opinion, the proper answer to all these types of questions cannot possibly be given by any human being today. This is due to the lack of logic in the United States and the world economy. It is the writer’s opinion that things are changing so fast in all facets of life that there isn’t a really good basis of predicting even six months ahead. This is the first time in twenty-five years that the writer has felt this to be the situation.

However, all this leads to one sound conclusion. That conclusion being that all of us who are capable of counseling people about their problems are being called upon, and will continue to be called upon, more and more for help. Questions are not only going to be what type of investments should we hold for better benefits in this crazy and changing world. The questions are now going a little beyond that. What to do with money? What to invest money in? Telephone calls are being received in this office from people with nothing but money, and who are not in business. They are expecting, by some miracle, that we can tell them for sure what to do with money and keep it safe. The fact remains, the better educated and experienced counselor is going to be called upon, more and more, to solve people’s problems. This will be at least until the future economy of the world can be more clearly understood and defined.

In the 1950s, Richard Reno, founder of the Society of Exchange Counselors, observed that if people exchanged real estate it could solve many of the real estate circumstances existing in San Diego’s overbuilt market. He saw exchanging as an alternative to the unavailable cash buyer. He believed that people who owned real estate did not necessarily want totally to divest themselves of real estate ownership, but were uncomfortable in the circumstances surrounding their current ownership. In effect, the problem was not with the property, but with the people who owned it. In his opinion, there was no bad real estate, only inappropriate or untimely ownership. This premise led Mr. Reno to an idea that resulted in the modern real estate exchange (equity marketing) business we enjoy today.