The Game

It's not that I've been losing a lot recently, it's that the combination of managing a blog and writing for a few other publications has left me out of practice when it comes to poker.

And in the few times I have played more often than not have left me discouraged and wallet light.

So while visiting family in Florida, I decided to rebuild my confidence a little by playing in a small game I had been told about held in North Point--a town not far from Sarasota.

The game in question was no limit hold'em, $10 single rebuy--not exactly a game that will make you wealthy.

My opponents were mostly retirees--a government workers from New Jersey, an engineer from Western New York, a salesman from all over--and were very green--for most, this little home game was their first and only experience with poker.

With the gauntlet set before me I introduced myself, shook hands and immediately got to work.

My initial plan was simple: wait for mistakes. And oh how they came, busting three players in quick succession right after sitting down.

Soon, however, play slowed down with three remaining. And this being a friendly game, table talk--meant normally to coax players into poor decisions--became fully developed conversation.

The topic on everyone's mind: the effects of the 2007 real estate bubble.

The Loss 

It's a story I've gone over briefly before, but I believe it deserves a little more hashing out.

Rapid increases in property valuations created an unsustainable growth in the real estate industry, eventually leading to overbuying, inflation and, lastly, economic recession.

This recession is particularly evident in North Point, where without a major production industry--save a small agricultural system--real estate and service became the main centers of income.

When the bottom fell out on the U.S. housing market, so went with it the economy of Florida and the hundreds of small towns that depend on vacationers and retirees located in the Sunshine State, like North Point.

The game was held in the common center of a development called Island Walk, a massive complex intended to hold upwards of 1,500 units (houses).

The total number of sold properties in Island Walk while I was there: around 350.

The tags show sold properties...lots of wasted space

After some investigating I began to realize that Island Walk was arguably one of the more successful developments in the area.

Across the street stood the impressive gates of Gran Paradiso, a more upscale version of Island walk, which had a plan for 1,999 homes. After two years, Gran Paradiso had built just 32 properties and its near million dollar models were marked down to under $500,000.

32 homes don't look very impressive in a 2,000 unit allotted space

Drive a few miles down the road and you'll encounter Sarasota National, a 1,500 unit development with 30 houses sold. So bad is Sarasota National, that the original developers were forced to sell the development, leaving the original office, located at the mouth of the housing tract, abandoned.

The discussion at the poker table the night I played revolved around a result of this recession: bickering between developers, who, starved for resources, were fighting over common areas and additional funds. Stories about failed developments being left for the Floridian wildlife to retake and private golf courses being operated like miniature Ponzi schemes prompted only shrugs of indifference from some players, players who were use to backstabbing, credulous investors and zealous greed.

Said the former government worker from New Jersey, "Through years of working in New Jersey for the Government I've learned that as long as the Earth is round nothing will be on the level."

No truer words about real estate and economics may have ever been said. Greed and financial hardship can be the downfall of everything, if you desire proof you only need to look in any standard high school history book for mountains of examples.

The Lesson

My good start propelled me to heads-up, but could send me no further. Still second wasn't all that bad, I had $65 in my pocket and a renewed confidence in my game.

The lesson in down swings that must be learned for any person who wishes to play poker seriously is this, don't put square pegs in round holes.

When you are losing, take a step back, calm down, reevaluate what your doing and don't force things.

For me this meant playing weak competition for low stakes, something many players would never even try, their massive egos not letting them. 

I find this sentiment is true to for the town of North point. Prices will recover, people will still want to come to Florida, it may take years, but eventually real estate will be back on top.

Until then, however, you can't let ego and pride get in the way.