This is What Happens When You Shoot Your Mouth Off to the Media

by Alex Stenback on December 17, 2007

The Southwest Journal is running as its lead story (at least online) the sale of Financial Freedom Realty to a group of Entreprenuers, led by former commercial real estate agent Rocky Osborn and two other silent partner residential real estate agents.

The article contains a choice quote-string from yours truly that we’d like to clarify:

Alex Stenback, a mortgage banker who runs the real estate blog www.behindthemortgage.com, said he doubts Financial Freedom has much value.

“Financial Freedom Realty existed to serve the projects that Gassen was converting,” Stenback said. “They hung some nice numbers on the market for a few years but once the condo conversion train ground to a halt, there’s just not a whole lot left.”

Stenback said he couldn’t begin to guess how much might have been paid for the company, but he didn’t think it was much.

“You’d be hard pressed for me to write a check for fifty grand for that thing,” he said.

Stenback said making Financial Freedom work in today’s struggling market would be challenging, but easier than starting from nothing.

“The bottom line is the real estate brokerage,” he said. “Attracting those people and retaining those people. It’s hard when there are a lot of other established places in town.”

One point we press a lot around here is proper consideration of sources.  As in, "does this person really have any clue about what he’s/she’s talking about."

Though we stand by the other statements in the above, the "price" opinion was voiced from a position of complete ignorance.  So for the record: We haven’t the first earthly clue of what Financial Freedom Realty looks like as a business.  For all we know, they have assets galore, a full pipeline of projects, and a stable of productive agents not reliant on the continuance of the conversion market.

In other words, FFR might be worth millions, or it might be worth $50k.  Either way, opening our yap about a number was a misstep that won’t be repeated.
Financial Freedom Realty Sold [SW Journal] 

{ 2 comments… read them below or add one }

duane December 17, 2007 at 2:41 pm

that’s a shame…

former FFR'er January 31, 2008 at 1:17 pm

I worked as an accountant for FFR and I can tell you for certain that it has substantially more DEBT than it ever had in assets due to extravagant spending of the owner, and always “banking” on the next deal coming through.. which in a declining market, is the worst mindset to have. If Mr. Osborne and his associates paid anything for it, I’m sure they’re kicking themselves now that they’re inside the operation and seeing the actual picture.

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