Why did GM fail??? The TRUTH from someone who knows.

Random Ramblings
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Bob Lutz was brought into GM when the company was on life support. The new BUICKS that are NOW getting rave reviews along with the Corvette Z06’s (which just won LEMANS!!!) the GM Malibu and countless other new GM products are a direct result of his NO BULLSH*T method of managing.

For those of you that don’t follow this stuff…Bob Lutz was responsible for the VIPER and other GAME CHANGERS while he was at Chrysler. Before that he guided BMW into the US market with the 320i.

This guy KNOWS his cars…He is considered a true CAR GUY…Owns an original Shelby Cobra (the inspiration for the Dodge Viper was Lutz’s own Cobra)

Watch this video…It’s worth every second.

THIS is exactly what I see NEWBIE’s doing in REAL ESTATE…They OVER EVALUATE everything and never DO anything.

http://www.autoblog.com/2011/06/20/lutz-dishes-dirt-on-gm-in-latest-autoline-detroit/

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fdjake,
This is a truly a great video. The kind of thinking that Bob Lutz is talking about is so prevalent today. There are so many specializations that students are encouraged to learn more and more about less and less. Sure, it makes them an expert but it also results in tunnel vision or the paralysis by analysis that you mention. Whatever happened to common sense and understanding the big picture? I’ve learned that in REI you have to be a generalist and know a little about a lot of things. I’ve had to learn about financing, building codes, fire codes, lead paint laws, and construction/rehab costs but I am not an expert in any of these things. I can’t install a new septic system in the same way Bob Lutz probably can’t design an engine or transmission. I just have to know what “right” looks like, be it workmanship or costs. That’s what this video reminds me of.
I love his car analogy of the analysts and MBA’s being the brakes and airbags and the designers and engineers being the engine.
The recent postings about vintage Porsche’s made me think of when the last time I actually loved driving a car I owned. In 1986 I bought a Marina Blue 1966 Chevelle that was perfect, matching numbers, straight, no rust or bondo from inland Georgia. I paid $3,000 for it. It was my daily driver. I would constantly get compliments on it. I was proud to drive it!! Because I got a job as field service tech I sold the car for the same $3K that I paid for it. I used the $3K for a down payment on a new Toyota Corolla!!!
Yeah, I regret selling it. :banghead :banghead :banghead

JP

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Thanks for sharing fdjake. I wish they can clone people like Bob Lutz to head more corporations and top govt. positions. I frequently meet people with PHDs and master degrees that lack the common sense BL mentions.

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I agree with both you guys.

I say this all the time to people and have probably posted this a dozen times here:

“It’s as hard as YOU want to make it.”

JFpen nailed it on the subject of LEARNING a lot about many various systems in a home and in real estate in general. If a huge corporation was handed those tasks they’d study the crap out of them and DO NOTHING.

Look no further than the DOPES running short sales and foreclosures for big banks…I can’t tell you how many times I’ve SEEN people put in cash offers on a home in January for say $100K and have them rejected, only to see the same property SELL in April for $75K. It’s the same same sh*t Lutz was talking about.

One other example…I’m buying houses like crazy and just wholesaling them because of this GENIUS RULE:

The BRILLIANT 91 day FLIP RULE!!! :flush

Here’s an example…I just purchased a home yesterday for $35K that needs interior paint, carpets and a kitchen/bathroom update. The house needs $10K worth of work and materials…Finished the house is worth $90K-$95K BEFORE realtor commisions…This is an EASY 2 week rehab. BUT some GENIUS decided that we need to WAIT 91 DAYS before I can even enter into a sales agreement. So, 91 days before we have a signed agreement, THEN you have inspections, underwriting, so basically 4 to 5 months to complete the turn. In a market where RETAIL BUYERS don’t want to paint a HALLWAY never mind rehab kitchens…and the entire process just STALLS…

Screw them…I sold it today to a part time rehabber for $65K and I’ll own it for 10 days and have my money…No credit bullsh*t, no bank crap, no home inspector insanity…Just a good, old fashioned…CASH BUYER!

Let’s PROLONG the housing CRISIS!!! Don’t make it easy for REAL ESTATE DEVELOPERS like ME to go into a neighborhood, fix up the JUNKERS, HIRE a bunch of struggling contractors and put them to work…No Let’s make it HARD…Let’s set it up so it takes HALF A YEAR to pull your money out of a single deal!

So…How do I deal with this when I don’t want to wholesale???

I BECOME THE BANK!!! BIG points paid to me from the borrower on any deal I do, PLUS a part of the end profits, and MY NAME ON THE DEED along with DEADLINES for completion…You miss your deadline…You LOSE…I NEVER lose…It’s NICE being the BANK!!

Nothin’ like having MORONS make the rules!!!

Absolutely ABSURD!!!