It may seem good to have lots of assets in one portfolio. But when it comes to actual value, many assets can be quite deceptive. The accounting profession well understands the peculiar status of “assets”. Thus, in structuring a balance sheet, they draw a distinction between “current assets” and “other assets”.

 

“Current assets” are generally defined as cash and items readily convertible into cash”. Holdings of securities that are traded on a major exchange would be considered as “current”. So would treasury notes and registered checks.

 

 Real estate holdings, be they residential or otherwise, would not make the “current” classification but rather would be in the “other” category because they are not “readily” convertible into cash.

Annual conventions of professional and trade associations are usually uplifting events – rally gatherings that celebrate the achievements of the past year and pump up the attendees with enthusiasm for the future.   It will be interesting to see if the yearly gathering of the National Association of Realtors, slated to assemble in Las Vegas in mid-November, will find a way to establish an exuberance of optimism among the 20,000+ members and vendors who generally attend the event.  

Amidst all the furor and negativism surrounding the real estate industry, the mortgage banking business and the nation’s entire financial sector because of the alleged problems confronting the real estate industry, for the National Association of Realtors (and most of its members) there is one quite favorable offshoot. The hubbub about national banks entering the real estate brokerage business has been silenced. Quite obviously, the big boys of the banking industry have had their fill of the real estate profession – at least for the moment.