Locked Out

Sometimes convenience is an enemy to intelligence. At least in my case! During the last snowstorm back in February, I was out for about two and a half hours clearing my snow and my neighbor’s. I was feeling good about myself, I was doing good deed and I got an extra workout in. When I finished, I came into the house and realized that the pocket I had my phone in was full of snow. After it thawed and I had a shower, I picked it up only to realize because it was banging around in my pocket it was permanently disabled. A feeling of panic set in. After wasting an hour doing research on the Apple website, my wife suggested calling customer service. After several hours on the phone with Apple’s service department, I was finally able to reset the phone to the factory settings. Thinking my crisis was nearly over, I attempted to access the iCloud to restore all of my information. I was thinking that I had the password memorized I quickly entered it only to receive the dreaded “password not recognized” error message (Strike 1). Thinking I mistyped, I typed it in again only to get another “password not recognized” error message (Strike 2). Unfortunately, I see this message frequently, so I was not alarmed.

In the old days it was a lot easier because I could use “Password#1” but that is not allowable anymore because someone ruined it for the rest of us. I put together a master password document on my laptop for just this type of thing. Note to everyone: a password document is only good if it is updated every time a password change takes place. You can guess what happened next. “Password not recognized” (Strike 3). Assuming I changed the end digit I tried it again and again (Strikes 4 and 5). After a few more guesses the Apple security protocol kicked in and I was locked out of the iCloud. The last message read, “Try again in 14 days.” Wait, did it say DAYS?! Thinking I read it wrong, I rubbed my eyes and read it again. Still not believing it, I handed it to my wife asking if it indeed said days. She looked at it and said, “What did you do?”

I yelled, “FOURTEEN DAYS?! THEY CAN’T DO THAT! I WILL SUE! MY WHOLE LIFE IS IN THAT PHONE!” Jen, unable to hold back her laugh, wished me luck. I had a flashback to first grade at St. Mell’s when I had a nun take my superball away for bouncing it in the classroom. She snatched it out of the air and shoved it into the pocket of her habit and I never saw it again. This can’t be happening. I thought there must be a way around it. After all, I can’t be the only person that has failed to update the master password document. I spent the next 3 hours on the phone talking to everyone I could get a hold of at Apple telling them my story of woe. I spoke to this one customer service agent that had to be in his twenties, he asked me in that condescending tone, “Mr. Rath, why didn’t you hit the forgot password reset link?” like a kid caught with his hand in the cookie jar I told him I thought I could figure it out. He was not rude but was unsympathetic to my situation. I could hear in his voice he was thinking, “Ok boomer.” I talk to his supervisors, and his supervisor’s supervisor, all spouted the same company line; “I am sorry sir, but we take security very seriously. There is nothing that can be done.”

When I started calling, I was sure that I would reach someone that could help me get my information from the I cloud. I spent hours on Google researching different hacks; I even considered a concocted story about hijackers and a drug cartel. As the hours passed, I slowly came to the realization that Apple does take security very seriously, and that I would be in Apple limbo for at least the next 14 days.

Once it registered that I would not have access to my phone numbers, calendars, notes, maps and all the applications that I have customized over the years, I was filled with dread and agitation, but decided to try and make the best of it. I was going to get every lesson out of it I could. After all, what choice did I have? The first lesson I learned was that my smart phone was making me dumber. I can remember the phone numbers of my friends from 45 years ago, but I could not tell you the phone number of my friend Jeff, and I talk with him three times a week. The only 3 current numbers I had memorized at the time were my wife’s cellphone, my sister’s home number, and 911.

Lucky for me my sister still has had the same phone number for many years. I called her first to get the rest of my sibling’s phone numbers. After explaining the situation, she started to rattle them off one after another. She was so fast that I knew she could not be looking them up so I asked if she was reading them out of a phone book. She said she had them all memorized. “Come on! You’re pulling my leg! No one has that many phone numbers memorized anymore!” She said, “I do. Do you want them or not?” Who knew my sister was gifted with a memory like Rain Man. As a joke, I asked if she had any more. She said, “Yes. Do you want any of our cousins?” I asked how many she had memorized, and she said, “Most of them.”

After hanging up with her I was so surprised that she had that many phone numbers memorized I had to tell Jen thinking she would be as surprised as I was. I said, “You’re not going to believe this, but she had all of the numbers memorized.” She just stared like there was something wrong with me. I said, “Don’t tell me you have numbers memorized too?!” Guess what? She does. And it turns out she has more than just phone numbers memorized; she has all kinds of important numbers locked away in her head.

Jen not only has phone numbers memorized, but bank account numbers, even the old ones. This woman cannot remember what we had for dinner last night but can recall our US Bank account number from 10 years ago. She has numbers of all types memorized; the rewards card number from Giant Eagle, passwords from Netflix, Hulu, the password of my iPhone, the iPad, Claire’s I-Phone and Charlie’s I-Pod touch, the birth date of Charlie’s stuffed turtle, she even has her driver’s license number memorized. Just for fun I asked her what day of the week December 23, 1964, her response was, “Keep it up smart ass and I won’t help you at all.” My next thought was to take the two of them to Vegas to have them count cards for me. 1 for bad, 2 for good!

After being without my I-Phone for only a few hours, the reality of how dependent I had become on it was a little unsettling, especially after speaking with my sister and my wife. After seeing the amount of information they had memorized and how clueless I was, made me realize that if anyone was to take out the grid, I would be helpless. Obviously, I did make it through my 14-day mandatory iCloud suspension, and I have backed up my phone to more than the iCloud just in case!

I have become acutely aware of just how many everyday conveniences have changed in the last few years; My kids have never had to wait until Saturday mornings to see cartoons, they chat with their friends on FaceTime, I use apps like Pocket and Audible that read books and articles to me while I mow the lawn, if something needs to be fixed I can jump on YouTube to see how complicated it is before I decide if it’s something I am able to do or if I should hire a professional.

But he real game changer is how I conduct business from my phone. I can make calls, catchup on e-mail, schedule showings, and even write contracts. I can take a video of the inside of a home for a client and talk with them in real time. With only one exception in the last three years, every home seller and buyer I have worked with used the Zillow.com, Realtor.com, or some type of real estate app. Today, I can set up showings and write the contracts on my phone. This has come in handy during this crazy sellers’ market we are experiencing. Earlier this year I sold a home in Port Clinton to a family from New Mexico. I even used my phone to send the buyer photos and videos of repairs that were made.

Buying and selling a home has been changed forever thanks to technology. Technology has also leveled the playing field and that has given me a real advantage over brokers like Howard Hanna and Keller Williams. I was talking with a seller a few weeks ago, and I was showing her my fee structure. She was able to save $4,000.00 by choosing me. When she asked how that was possible, I let her know that Howard Hanna has 49 offices in Northern Ohio, and because they have so much overhead, they have charge more to cover their costs.

Seems as though the tradeoff is convenience over intelligence.

Speaking about intelligence, it seems as if some of the people on television and online have no perspective on history.

When you hear that the interest rates have gone from the lowest interest rates in history to the highest in a decade, it can be a little unsettling. Thirty-year rates tipped above 5% in April for the first time in a decade. But if you look at a historical mortgage rate chart, you’ll notice today’s rates are still low. Historically, 30-year mortgage rates have averaged just under 8 percent. When I started in Real estate in Oct of 1994, interest rates were 9 %, and the highest rate was in October of 1981 at around 18.63%. So even though today’s rates are inching past 5%, they’re still a good deal comparatively.

I would also like to respond to questions I am being asked a lot. “Is real estate in a bubble?” “Will the market crash like it did in 2008?” I don’t believe it will. According to The Federal Home Loan Mortgage Corporation, (AKA Freddie Mac) their estimates suggest that we have a housing shortage of about 3.8 million units as of 2020, so with supply chain issues and inflation, that number is only going to grow higher.

Homeowners today are sitting on more equity. Research firm Black Knight estimated 46 million homeowners had a total of $7.3 million dollars in home equity. That's the highest amount on record.

We have a lot going for us. Look at this Cleveland Housing Market News.

"#1 City to Buy Home for Best Rental Return" - CNBC

"#4 City Where Your Paycheck Will Go the Furthest" - Forbes

"#10 Best City for First Time Home Buyers" - Business Insider

"Ohio Best State for Start-Up" - Forbes

"# 84 Best Place to Live" - U.S. News

Because Real estate is a popular vehicle to hedge inflation. corporations are buying single family homes in our area; they understand that northern Ohio is a great place to live and invest.

I want to thank you for your trust and referrals!

Talk soon,

Dennis

PS. The pro tip in this market if you own any income producing real estate you may want to refinance to pull cash out to buy more later in the year after the market changes however it must be at a fixed rate.