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Today we have a returning guest, all the way back from our first ever episode! We are bringing the in the big guns to help you survive this recession. Most agents have never seen this type of market but some of us have not only made it through, but leveraged it to put us ahead. Find out how.
Michael Hellickson sold real estate for over 20 years, listing and selling over 100 homes/month, and carrying over 750 active and pending listings at one point. He began his real estate career in 1991 and has been among the top 1% of all agents nationally, before he even graduated high school! At the pinnacle of his sales career, Michael and his team were literally #1 Nationwide, out of over 1,000,000 real estate agents/teams!
Three Things You’ll Learn in This Episode
- How do you make sure everyone knows your name?
- How are top agents thriving during a recession?
- Why you need to be making content and developing a brand.
Resource
The Listing Advocate (Earn more listings!)
Transcript:
So how do you attract new business? You constantly don’t have to chase it. Hi, I’m Mike Cuevas a real estate marketing. This podcast is all about building a strong personal brand people have come to know, like trust, and most importantly, refer. But remember, it is not their job to remember what you do for a living. It’s your job to remind them. Let’s get started.
What’s up ladies and gentlemen, welcome another episode of the real estate marketing, dude, podcasts, we’re going to do a little bit of a throwback. Today, this show was started in 2014. And I had no idea what I was doing. I used to pay someone $750 a month just to publish for podcasts for me, which is insane today. And all they would, they would just publish it. But you know, I didn’t know what I was doing. And honestly, with content creation, you just sort of figure it out, you get better as you go today. I could have I could talk here for 60 minutes. And I don’t even know what I’m talking about with my guests yet. I have an idea. But that’s how skilled I’ve gotten in podcasting. And they’re, and they’re one out over time and so differently with video, guys, when you want to build your own brand with video, you have to do it consistently. And you’ll get better as you go just like anything else. So the reason why I’m bringing that story up, though, is because the very first episode we ever did was with our guest today, and this was in 2014. And it was probably a terrible, terrible, terrible episode. But we did it right. And this is even before he started his big thing, he was just starting this at that time. So it’s gonna be good show we’re gonna catch back up and most importantly, today’s what I want to focus on. And I know that a lot of you guys are scared, it’s the fourth quarter. And regardless of what the market is doing, the fourth quarter is always a time when you work on your business and get ready for next year. Right while the market Christmas Thanksgiving, things typically slow down a little bit during this time of year, it’s okay. But you don’t slow down to you start working on your business. And that’s what we’re gonna focus on on this week’s episode. So without further ado, we’re gonna go ahead and introduce our guests, Mr. Michael hellicksen. From club wealth. What’s up, dude?
What’s up, brother? It’s good to see you. I’ve heard them a little hurt when he said, you know that first episode probably suck. I’m like, wait,
I was talking about my performance, not yours.
But that was a long time. And you said that was 2014? Is that right? Yeah.
2014 was the very first podcast episode, which brings it to about eight years of doing this almost every single Saturday publishing the show, books. That’s what content creation does. There’s a reason why we got at 1.4. Now, maybe 1.5 million downloads is because we’re consistent with content. But that’s another show. And if you need help with that, I want you to visit referral suite.com Because we’ll help you be consistent with your personal branding. But this is not about me today. This is about Michael hellicksen. And we’re going to talk about what you guys need to start doing. If you guys don’t know, Mike, let me give you a little bit of introduction, if you will. Michael used to be one of the top agents in the country. And today, his son who was How old is he? He’s 21 years old, I saw this kid grow up and he was he was 12 When I first met him his son, okay, this is the type of coaching Michael does his son just closed or just sign how many listings in his first year in real
estate? While he’s in his first 11 months, he just didn’t number 91 Last night. And that’s not counting his team. That’s just him. And he’s got people on his team. He’s got one of his team members. He’s got, like 65 or 70 listings this year.
Not kids 20 years old. Do you know how long it took me to get that far like what a hustler. It’s very impressive. And what we’re gonna do, let’s talk about what Austin’s doing, and where the opportunities are going to be in the next 12 months. We chatted a little bit before we press record here. And I really want to play in a clearer picture. I think the combined experience between Michael and myself, dude, how many transactions have we done and how many years in the history this is like dinosaur Haven this is like 75 years of real estate experience, brokerages teams, so like you guys have a lot of knowledge right here. So we’re gonna go deep, and we’re going to talk about what’s going to happen. I think we’re gonna have a good pulse on this today. And this is just a prediction. Okay, I’m not a I’m not scientist. I don’t have ESP. Oh my God, I don’t know what’s going to happen. This is our opinion. So alright, so
yeah, full disclosure. I’ve only been in real estate industry now for 32 years. I believe it is something that I do. So it’s it was 1991 when I started selling real estate, and I was in high school back then. So I’m not exactly an old guys let’s not go there. But that being said, you’re right you know, my my claim to fame is at one point in time I was the number one agent on planet Earth and was closing 120 280 transactions a month at a time when most people the number two and number three combined. We’re doing less than half that and and we here we are carrying about 750 listings and active and pending status that point. Now that’s only relevant to the people that are watching this in terms of you know, why should you here listen to what I have to say and I you know, I think that in general in real estate, guys, there’s too much Bad advice going around out there, particularly from people that have never sold real estate or never sold real estate at a high level before. So we want to be really careful about who we take advice from. Now, to Mike’s point, yeah, we can’t guarantee what’s going to happen in the marketplace. But you know, Mike and I have been through a cycle or two. And we’ve seen this a few times. And you know, some people are scared right now. And some people should be scared right now, there’s definitely people out there that that should be thinking to themselves, well, what the freak, you know, what’s, what am I going to do? How am I going to survive this and I will tell you right now, if you have been selling real estate, if you if you were not selling real estate prior to 2011, you don’t know what’s about to happen. You don’t you haven’t been through a tough market yet. You’ve only been through the best market Mike and I and other people like us I’ve ever known in our lifetimes. In this last decade,
90% of the aging population has never seen a market like this, which is also a lot of their team leads a lot of the brokers and a lot of people leading them. Okay, guys, so pay attention to this episode. Because a lot of people don’t know what’s going to happen. I’ll give you a couple stories. Like I see some big names in real estate. And this is how this is just how new I’m not gonna name any names. But I’ll see a bunch of big names in real estate. This is like back in like April, right? May all markets never gonna crash never going to crash. Oh, that’s never gonna happen. I’m like, Dude, we’re gonna go down. 20% Oh, no, don’t ever say that. You’re not going to crash. Dude, we’re gonna go down. 20% you want to call me out on social? Okay, let’s go. Alright, who’s got an egg on their face? So, like, you have to realize what’s going to happen. But I don’t mean to be doom and gloom, because these are the most exciting times, right? These are the times that people realistically what needs to happen is the real estate industry needs to flush out. There’s a lot of people out there and the average agent, I think, as of like, September, September of this year, you probably heard a stat. Only, like 90% of the agents only sold four homes. So I’m like, Dude, how the hell do you even survive off of selling four homes a year? And better yet? How can you only sell four homes a year we have this thing called social media? Right? Like 10 to 15% of your friends on social are moving? How do you only sell four homes a year unless you’re closet secret agent. So I want to let’s start off this combo with this 2014. When we first did this podcast, I was trying to figure out what the hell was going to come next in the business right? I was in the short sales. I was not I called up Michael at the time. This is eight years ago. And we get on a call with a couple other people at the time. And at that time, I was ready to say the market is about to do what it’s doing today. We were talking about getting our short sale departments ready and all this other stuff. And we thought it was going to go down then but we were wrong. Right. And it just went into a bear market forever just like the longest market ever appreciating or bull market, which one is a bull market bull market. So it goes into longest bull market ever. And now we’re seeing this thing. But everyone’s like, oh, there’s a supply and demand, folks, this is an affordability issue, guys. It’s not about supply and demand. Get that out of your head. This is 100% affordability, which was not the case in 2007. Necessarily, no, because
in 2007, you had the whole mortgage market imploding. And here’s the other thing people don’t realize it’s this history repeats itself. It’s just the reasons behind it change, right. But from an economic standpoint, the the outcome is clear. We know what’s going to happen. We know what’s happening right? Now, here’s what happened. Let’s let’s first remember this write this down, though. And you guys have probably all heard this before. But either way it bears writing it down and repeating. And that is those who did not learn from the past are condemned to repeat it. And I’m telling you right now that 90% of the agents that are in the marketplace right now don’t know or didn’t pay weren’t paying attention or weren’t in the business. When this happened last time. Now, are we going to see a big tidal wave of Oreos and foreclosures? I don’t know. I don’t know. But what I can tell you is what and what I’m 100% confident that we are going to see to Mike’s point is at least 20%. I think it’s gonna be greater than that, Mike, I think I think 20% I think you’re being generous. I think we’re gonna see 25% And I think probably in the next 24 months at the longest, that we’re gonna see that much of a drop in pricing. The Fed is not going to show a slowdown on their interest rate increases that’s going to continue. And they have to they gotta they’re trying to find ways to slow down inflation. Heck, China, when Trump got elected, China said, if we see double digit inflation in the United States, we’re gonna consider it an act of war, right? Because what are we doing to their debt, we’re devaluing their debt, they’re not going to like that. Now, that being said,
I don’t say that with Mr. Biden, though at all. Oh, that’s great. Yeah,
that’s gonna go there. So that being said, back to what happened back then. So here’s some interesting statistics. From 2007 to 2011. We lost 20% of the transactions in the United States. So there were 20% fewer transactions from 2009 Those years of 27 2007 and 2011, than there were in the five years previous. What’s really interesting is we lost 20 5% of the real estate agents. Yeah. That’s the message I think people need to understand is Listen, guys, this is gonna be a game of attrition short term, right? Like, there’s gonna be people like there was a market in Texas, I can’t remember which market it was. But they had 968 people up for renewal for their MLS deals in October. And of those only 742 or something like that. renewed the MLS these guys that’s over 25% in one month, in one month, agents are dropping like flies, because he can’t even make the freakin payment on their MLS dues, let alone figure out marketing and lead gen and all the other stuff they gotta do to run a successful business. But here’s what’s really interesting, I’ll tell you what happened to my personal business in 2006, seven and eight. In 2006, I was doing about four or 500 transactions a year, which back then was a lot of transactions, right?
Slow transactions.
But it’s but it’s but there’s people there’s There’s people doing way more volume now than were before because teams have taken new forms and new shape and they’ve become more popular and people have embraced them back then they were fairly new. That being said in 2011, that’s when we started doing I’m sorry, 2007 2007, we started doing 120 to 180 transactions a month. Now, guys, why the explosive growth, because all these agents were getting out of the business and nobody wanted to do the hard transactions. Watch this, those 91 listings. I told you Austin’s taken this year, five of those in the last three months have been either short sales or pre foreclosure both
interesting. I was gonna go to that point next. But it’s interesting. You think
about that right now. People think oh, but everybody’s got all this equity. No, not everybody does. A lot of people bought their house in the last 12 months. They don’t have equity.
Yes, thank you. Here’s a sell here. Awesome selling. This is like this is why this is a big deal. You guys is because you’re right. Like if you anyone who bought in the last 18 months is already underwater. At the stats as of last night, I was nerding out I couldn’t sleep. So it was like reading all these like housing market articles. And it said nationally, we’re already down 6%. But yeah, the even some of the big banks, which are are coming out and being a guy, we’re expecting a 20% shift. Now. We’ll see whether or not that’ll that’ll happen. But Michael just laid out a couple good points, guys. Yes, there’s absolutely going to be less transactions, but the number of agents leaving the business is greater than than the number of transactions. So that’s opportunity number one. But I think opportunity number two is you can’t be doing when the market shifts like this, you don’t you shift with it, right? You don’t just keep doing the same thing you’ve been doing. Okay? If I start like, you know, like, it’s like in football, like I’m a big Bears fan, right? And Justin fields is on fire right now. He’s just amazing. If you guys like football, you’re watching Justin fields is one of the most exciting quarterbacks to watch. But once the defense starts knowing what his next play is, and he’s doing the play action, it’s a lot easier to stop him. They need to change up the play and adapt to the defense so different than you you need to change up. And I think that’s what the people are like, what do I change to what does that mean? Right? How do you adapt?
So let’s start with this for most agents, and this is going to come hard for some you know, I always like to quote the Bible verse you know that the the wicked find the truth to be hard, sorry, that guilty find the truth to be hard. And the reality is, if if you’re guilty of this, you’ll you’ll hate hearing it, but you’ll know it’s true. For most agents out there right now, what they have is not a it’s not a marketplace problem. It’s a work ethic problem. The problem isn’t what’s going on in the market. Right now the problem is what’s going on inside agent’s heads and what they’re in and the effort that they’re putting into their business. Most people aren’t making phone calls, they’re not living on a perfect daily schedule. They’re not, they’re not focusing 90% of their time on the three most important things which are lead generation lead, follow up and lead conversion. Instead, they’re busy doing all this other stuff, because it’s more fun, and it’s what they want to do. And it’s the marketplace doesn’t care what you want to do, the world isn’t going to reward you for what you want to do, they’re not going to get the world is not going to give you what you want, or even what you need. Right. It doesn’t matter if you need food in the wintertime. If you don’t plant in the spring, you’re not harvesting in the fall, and you will have no food in the wintertime. So what do you need to be doing right now? Well, number one, you got to get refocused on lead generation and in all kinds of different ways. And you got to stop with the sexy, shiny object lead generation and start getting down and dirty and doing what works. And I’m telling you, this is a contact sport. You got to get on the phone, you got to contact more people, you gotta have more conversations, you got to get voice to voice and face to face with more people. That’s what it’s gonna take. And if you don’t do that in the coming months, and I’ll tell you in the next 12 months, if you’re not doing that, you’re going to struggle, it’s gonna be hard, you’re not going to do the kind of business you shouldn’t be doing if you weren’t doing that. Now, I’m not saying you got to cold call and call expireds and all that kind of stuff, but I’ll tell you what, they should be on your radar because I think one of the things that’s gonna be off the charts in the next six months is going to be expired listings. I mean, you It’s gonna be insane. And it’s gonna be better than we’ve seen in a decade, there’s gonna be more expired listings than we’ve seen in a decade, in the next 12 months. Think about that for a minute. That’s substantial. Those are people that have already said, I want to sell my house and their agent didn’t get it done. Because their agent probably came in and said, Oh, it’s worth way more than it is. And by the way, that’s another thing you gotta be careful of is chasing, pricing down. If you don’t get ahead of the pricing fast. And I would go so far as to say, you should be getting automatic written price reductions ahead of time. With every listing you take, and that should be right now,
let’s chat about that. This is super crucial, guys. So one of the things like if you’ve never been in the, in this type of market before government’s in an appreciating market, and one of the worst things that you do to a seller is like, Hey, your house isn’t worth what you think it is, right? You feel like they’re gonna punch you in the face. Let’s be honest, no one wants to have that conversation. So here’s how we used to have it or in a roundabout way, Look, mister seller, the market is completely changed. And look, don’t shoot the messenger, I’m just telling you. But here’s what we need to do. If we start accumulating a ton of market time on your listing, you’re just going to get shooting a shot in the foot, and they’re going to undercut you, because the more market time the bigger lowball offer. So if you want me to list the house, we’re going to have a predetermined price change strategy, because until I’m getting three to six showings a week, you’re overpriced, and I don’t create the market, I just play within it, the only thing I could do is listen to it. If you don’t listen to it, you’re gonna get hurt. So matter of fact, I got a text this morning, from an old client from Chicago. And I thought she sold her condo, this is like two months ago, she texted me. And she added at 750. Now it’s at 699. And it’s just sitting on the market, I’m like, Listen, you have to price change, you don’t control the market. And I’m just telling her how it is. And she does not want to hear it. She goes, I will not go below 675 I go, you bought the house for 400,000. I sold it to you take the deal, you don’t control the market. Right. So now you have to warn sellers this because if you don’t do it upfront on the listing, they’re gonna hate you.
And you just nailed it. And that’s the thing. Nobody that’s been in the business the night it was so like, to your point 90% of the agents that are selling real estate right now have not had to deal with this. And listen, guys, here’s what’s coming. Okay, you’re gonna go on these appointments. And you’re gonna have to explain to them that Listen, Mr. Mrs. seller, you and I don’t choose the price for your home, the market decides the price for your home and the market isn’t today what it was even six months ago, we’re in a whole new world right now. And we have two options, we can get ahead of the pricing and get a buyer. And if we price it aggressively enough, we get multiple buyers. So we can still do that in today’s market. But we have to price it much more aggressively to get the multiple buyers working against each other and get the price up. That’d be great. Okay, now, alternatively, we can chase the market down and we can just reduce the price not getting the activity continue to reduce price. And every time we reduce price. If we wait too long, we’ve got to reduce it even further. Because the market isn’t where we reduced it or even just below where we just it’s way down here and we’re trying to play catch up. And if you’re playing that game, you’re just throwing money away every single month.
This was one of the biggest problems in oh seven in the last crash you guys, especially from the BPO perspective with Oreos and short sales, the market was depreciating so fast that by the time the BPO came in, or the appraisal on the property, the property is already worth less than what it was at the time the BPO appraisal was performed. So what you have to do is you have to like literally you’re gonna take a listing, I’m priced at 5% under market right now, because that’s probably accurate. I just told you 6% change in price, if the comps reflect $400,000 Within the last 90 days in the market change 6% Your listing price is not that same price, it’s 6% less, right and you have to do that because you’re just gonna sit there just gonna sit and it’s gonna be very ugly.
Mike, I’d take that a step further. And I would suggest that, you know, we used to sold like, you know, six months ago, you were using sold properties as comps sold or not comps anymore, guys. If it hasn’t sold in the last two weeks, it’s not a company more. The comps are what’s active on the market right now. That’s your competition. And we have to be substantially below that. And so we take the lesser of sold inactive and then you adjust price downward for what the market is doing. Guys, you gotta get aggressive with this, it otherwise you’re gonna have a bunch of listings that don’t sell which is you know, it’s great, you get some exposure, you get some sign calls, all that kind of stuff. I’m all for that. And I’ve always said that, you know, a sign in the yard beats a sign in the car every time. But you got to get some of these things sold to make some money and you’re not doing yourself a service by overpricing them
listings that don’t sell are a lot more expensive than buyers that don’t buy I mean, you have marketing costs that you have to do so you don’t get the listing sold member you’re paying to work with those clients. On the buyer side. You’re just spending your time energy and gas money.
It’s gonna be interesting right before I started it’s gonna be interesting to see what happens with professional photography in the next 24 months. Because you know, everybody in the last two years in our late last decade has been using professional photography on everything. But what happens when you go out and you take a listing you know, it’s overpriced, you still gotta go To get professional photography on that, knowing that you’ve got to pay for that photography, and it may not ever sell
well as Facebook ads plus brochures plus everything else that goes on Open House, the cookies, the cakes, everything, man, it adds up. Alright, so folks, that’s gonna be one thing I want to focus on types. I believe you chase listings in this market 100% Because those are the people who are going to be struggling on the opposite end of the used to be the opposite. But you’re Chase listings in this market, but not any listings, okay. People go after listings, motivated sellers. If you become a problem solver to motivated sellers in this market, you will position yourself to win.
Yeah, first of all, I like the way you put that you want to be a problem solver for them, right? So you need to be more of a consultant than a salesperson right now, I will also go so far as to say, I have a, I have a very strong opinion of what a great listing agent is. And a lot of people think, you know, oh, I’m a great buyer agent, and I’m a great listing agent, I would I would tell you that that’s not true. You’re either a great buyer agent, or you’re a great listing agent, but you’re not going to be both. And here’s the difference, I think you first need to be real with yourself and ask yourself this because well, let’s let’s start with us. There’s two personality types. Personality Type A is, hey, look, I’m going to give world class service. I’m an educator, I’m going to, I’m going to nurture them through this process, make sure they understand everything, make sure it all goes smoothly, make sure they’re completely taken care of right. That’s a personality type one personality type two is I’m just gonna punch you in the face make you sign and move on to the next one. So the question I would ask everybody in the audience right now that’s listening to this is which personality type are you? And I would venture to guess that more than 90% of you said, I’m personality type A. And the other the 10%, at best of us said I am personality type B? Well, guess what, in this next 24 months, if you want to be a killer listing agent, you had better be personality type B because personality type A is not going to get you there. And I’ll tell you why. Because you’re gonna encounter people with various situations. And the the type of person they need as a seller is very different than the type of person they need. As a buyer. Case in point, John and Susie want to sell their house and then go buy another house. John and Susie wants someone who’s going to represent them on the sale of their house, they want someone who’s strong, who’s a great negotiator who’s going to get the freakin job done, they don’t really care if they like you or not just get the job done, give me as much money as you possibly can. And in shortest amount of time humanly possible with the least amount of headache to me, that’s what they want. Right? Now, that same couple, John and Susie, they go out to buy a house, they don’t want that Pitbull that’s got their house listed. They want the golden retriever, that’s gonna be super nice to them, that’s gonna take him out and it’s gonna show him property, it’s gonna be patient with them, that’s not going to pressure them. And that’s going to nurture them through that process and give them the space and time they need to make the decision that they want to make very different type of agent, right. So to say that you can be the best at both, I think is a misnomer. And so my while I agree with you that I believe that listings are gonna be the name of the game going forward. I don’t believe that listings are for everyone. And I would suggest that if you are a personality type A the more you know, hands on educator, teacher type. nurturer, that type of thing that likes to deliver world class service, I would suggest you need to either be on a team or you need to be building a team so that you can focus your time on buyers, and not on sellers. You will have more success, you will be happier, you’ll make more money and your clients will be happier and like you better. Yeah, the reality is you can’t be a great listing agent. And be someone who’s got well I’ll say this, and this is gonna be controversial. Mike, watch this.
We’re gonna get controversial show.
Yeah, we’re gonna guarantee it, but prove me wrong. You know, there’s something that I lack that a great buyer agent has. Can you guess what that is?
Patients? Very close. Empathy. Yeah,
I don’t have an empathy gene. Like I really I struggle with empathize I and you know, it’s called patients call it sympathy call and empathy. At the end of the day, I’m here to get a job done. And I’m going to get my job done. And your story doesn’t impact how I have to do my job. Your story is your story. But that doesn’t change what needs to be done to get your home sold for as much as humanly possible in the shortest amount of time possible. And to prevent you from being in foreclosure we having to do shorts, or whatever the thing is that you’re going through. And so if the extent that people can understand that and that they can wrap their heads around that they can have a ton of success and it’s coming market, but if you go in there and you’ve got a ton of empathy and you’re getting all emotional with them, and neither one of you wins, you’re not giving them what they want, and you’re certainly not getting the result that you need.
Yep. A lot of the people who are going to be selling are going to have you’re gonna you’re gonna come across divorce, you’re gonna come across loss of income, some losses jobs, you’re just gonna come across people have to move, but they don’t want to or have the $10,000 to make the loan full because they’re underwater today. Now on the buyer side, there’s a tremendous opportunity like the number one thing I would say is you have to be investor friendly. These types of markets there’s there’s a boatload of investors, the mom and pops the institutions, all of them are sitting on the sidelines, celebrating right now. And nobody’s out there serving them. I would much that’s who buys in these markets, investors don’t bind peak markets, they buy in, like these markets that are about to happen, because these are the markets that investors make a lot of money. And if you’re an agent working on the buy side, I’d much rather work with one investor who buys 10 houses a year, then one person who complains about the GFCI. All it’s a $250,000 purchase. Right? So we’ve got that this is the type of positioning that we’re talking about, like sellers, motivated sellers, but buyers, Investor Buyers, but even if they’re not Investor Buyers, you have to change the conversation. It’s very simple. No one makes a good investment buying at a peak market they bought they make a good investment when they bought in 2011. I buy when no one else is buying. Warren Buffett once famously said he goes when you zig zag zig zag Zig. And if you start doing everything that everyone else is doing, you’re making the wrong investment in real estate you do you go against the opposite, almost I mean, that’s what I’ve seen in my in my careers. The best investments are made at a time when you’re doing what no one else is.
Well, let’s let’s come back to your point about these distressed sellers and how they’re feeling right now what they’re going through right now. See it right now people are getting people are kind of in the middle right now. But you give it another six months. And you start seeing a substantial number of people that are that are upside down that are behind on payments. I mean, these layoffs get bigger and they’re going to the guys were at the very very tip of the iceberg on the layoffs nationally, it’s we haven’t even seen what’s about to happen on last, it’s gonna get big. Now watch this. What as those layoffs get bigger and bigger on all these people now have lost that income, it’s gonna be really hard to go make up that income right now, because employers are high. In fact, 50% of all employers in the country said that. So when polled 50% of the employers polled said that they are planning on laying off in 2023. Guys, that’s big, right? Now, what happens to people like that they hide, they’re hard to find why because they’re gonna be laid on other stuff, they’re gonna be laid on their credit card, they’re gonna be laid on their car payment, they’re gonna be late, all kinds of stuff, who’s calling them, it’s creditors, that everybody every phone call, they’re picking up, it’s somebody trying to get money out of them, they’re gonna be heightened, and it’d be hard to reach when you finally do reach them, and you finally do get into their living room, right? And it’s gonna take an act of God to even get in their living room. But when you finally do get there, guess what’s gonna happen? They’re gonna say stuff to you like, Hey, can we just not put a sign in the yard? Because I don’t want my neighbors to know I’m going through foreclosure. Yep. Like that’s normal in this kind of a market. And so we need to be prepared to have those conversations in a dispassionate way. If you’re too emotionally attached to that conversation, or to the outcome, or to their situation, guess what you can’t do you can’t dispassionately take care of what needs to be taken care of to get them out of their situation. So that’s the mentality of sellers is absolutely gonna be shifting now. And it will there be people that you know, have a great interest rate that have great equity that are going to sit on the sidelines? Yeah, sure, there will be. But guess what life also happens. And so a lot of those are going to have to sell because they get a new job opportunity over here or because the family
that’s what a lot of the articles are saying like, Oh, but this markets not and this is again, it’s another opinions like the market is not going to be that effective, because there’s so many people sitting on two and 3% interest rates. But my point is like when when people see that they’re underwater $50,000 on their house, they don’t really care about their two or 3% interest rate anymore. They care more about like how they’re going to start building wealth again, because they just see nothing but an uphill battle on their existing property. And if they lose their job on top of that income goes down. I mean, also know we’re in a short sale.
I think I think that’s the bigger factor. I mean, don’t get me wrong, I think the people that have that equity and you know, are thinking about how am I going to grow, I think, I think hope for gain is not as great a motivator is fear of loss. And the fear of loss comes in when all of a sudden I lose my job and I can’t afford my payment anymore. And I think that we’re gonna see a lot of that. And that’s why I think what happens every time we go through this type of market, what happens to rental rates, rental prices go up, not down at home prices, you know, sales prices come down, rental prices go up, because those people still gotta live somewhere. And that’s coming because it’s stuff that they can’t control. Now again, is it gonna be this tidal wave of foreclosures? Like it was in 2008 2011? I don’t know. Probably not. But who knows? I mean, I don’t know what’s going to happen but what I can tell you is if you get prepared and you get the right lead sources in place, that’s remarriages lead generation lead, follow up lead conversion, you got to get the right lead sources in place you got to get super aggressive about follow up on those lead sources. You know, I always tell people, you know, what does a drug dealer know about about leads and lead follow up and lead conversion that real estate is You just don’t know. And the answer is first one’s free, then you got to pay, right? I mean, think about this. Remember the days where you know, a buyer would call up and you’d be like, well, you know, you gotta be pre approved. And I gotta see your proof of funds. And you got to jump through all these hoops before I’ll take out to show you that $40,000 mobile, or whatever, the freakin thing is that you were going to show him, well, here’s what’s going on. Well, here’s, here’s how that’s changing. And it’s already starting to, and it’s gonna change in a major, major way. It’s gonna be waiting, but you have a pulse. Yeah, I’d love to show you that house. Let me take you out there and go show it to you right now. And here’s what people the smart agents are figuring out, I have to build rapport with that person, because the product isn’t the house, the product is me. And the way that I build that rapport is I gotta get voice, voice and face to face with you as quickly as humanly possible. So I’ll show anybody a house once.
Yeah, I love it. Folks, as a couple of things, I hope you really get a lot out of this episode, I just want to do a quick little recap. repositioning your business to focus on where business is actually going to transact is ultimately the main message of today’s show. Sellers, motivated buyers investors, but problem solving for all. And it’s not going to be people aren’t buying on emotion in these types of markets, there’ll be some that can be wrong, it’ll be some people that just go out there and buy and sell, buy and sell like just like things are normal. But many of these types of transactions, I believe, are going to be distressed, I don’t think we’re gonna see a tidal wave of foreclosures like we did last time, I think the banks will sell them to the institutions before they ever hit the public market. In that sense, but
now before you move on for that, I gotta leave that conversation with the two guys that I can’t, I won’t tell you the name of the company or the entity that they work for, but I’ll pay it, they are responsible for more mortgages in the United States than anybody else, period. And these two guys are in charge of this entity. And they were telling me, Hey, we’ve learned we no longer are going to be selling to institutions, and they’re not selling tapes of properties anymore. Why? Because now they figured out that, hey, we can rehab these things turn around and sell them and we make way more money than ever before by not selling them to the institutions. Now, I think you’re right, if you look at last year, and you look at the number of properties that were sold to institutions, it was staggering. There was a ton, there was a lot of a lot of business being transacted with those institutions. I don’t think that’s the next 24 months. I think those institutions hang out until maybe 24 months from now, I think all those hedge funds are on the sidelines right now. All the big investors are on the sidelines right now. You know, I sat next to a guy on the plane. He’s He’s the he’s the head of construction for one of the companies that has 58,000 homes they own right now. And he said nobody wants to catch a falling knife. And so I think they wait, it’s a guy.
Yeah, I think they will. I think they’ll wait for it until it starts coming up. But I think they’ll jump back in. I mean, that’s what smart money does. That’s, but it’s gonna be very interesting to see this all shake out, we’ll have to come back to this episode in about six months and see how accurate we were, if at all, any. But folks, Michael, why don’t you go ahead and give them some closing thoughts. Tell them how they can reach out to you, I think you have a little gift for them if they want to take you up on that and show you some of your lead sources and whatnot. But go ahead and take the floor. Well,
your point, you know, when you talk about motivated lead sources, you know, the motivated sellers are gonna be out there, the motivated buyers are gonna be out there, but you got to have the right lead sources to get to them. So what are we there’s about 2000 Different lead sources in real estate today. There’s about 100 So we vet these every year we go through and we update our list and we vet you know, who are the best ones that we want to refer to our clients and our clients and we’ve got 85 Plus coaches that all sell more real estate than people they coach and we got our client list is like the who’s who of real estate, right, their average between you know, their average over 200 transactions a year and a lot of them are doing 500,000 transactions a year. So point being we got to be very careful about the referral the lead sources that we recommend so I’m gonna give your audience today 17 of our best lead sources. If you guys will shoot me a text message to 727-287-5993 you need to text the words club wealth to that number. So two words club wealth and text that 27272875993 and I’ll send you 17 of our top 100 lead sources that we recommend our clients. I will also suggest this and by the way you can always jump on our website if you want you know poker on our website go to club wealth.com Here’s what I would suggest my my final thought in closing would simply be you need to look at your habits more than you need to worry about what’s going on in the marketplace because now more than ever habits are going to dictate your outcomes you know the days of mom and pop you know that are struggling to pay their mortgage and you know the days of mom and pop just calling their buddy up their cousin Jethro have to do them a solid to sell their home that’s that’s gone. That’s not happening anymore. People and when they’re in distress, they’re it’d be a lot pickier about who they list with, it’s probably not going to want to be family, you know, it’s going to be somebody that they really believe can get the job done. And so you’re gonna have to be on your game, and you’re gonna have to dial your habits, and you’re gonna have to contact more people in more ways, you’re gonna have to be more aggressive about your follow up and your long term nurture process. And if you’ll do that, you’ll get a ton of business. And you’ll make it not only through this market, but you’ll grow when other people are dying by the wayside. But it’s going to come down to your daily habits. And so I would suggest that your first four hours of the day, be 100%, lead generation and lead follow up, I wouldn’t do anything else between eight and noon, but lead generation lead follow up, for some of you that’s going to come across as oh my gosh, there’s no way I could do that I don’t even do an hour, I’m just, I’m just going to trust that I’m gonna get business from referrals. And I will tell you, if you’re watching the numbers, and you understand what happened in 2007, and 2008, you watch how referral based business went almost entirely away during that period of time. And I’m not saying you can’t get it, you can actually increase your referral based business. But to do so you have to do some things. And it really comes down to I’ve got to do my four client events per year, I’ve got to follow up with those people on a very tenacious basis. I’ve got to make sure that I’m branding myself to those people at a deep level. If I’m not doing those things all the time with my sphere, guess what, they’re not gonna be my sphere anymore. Right? Somebody else is gonna get them. So anyway, that’s, that’s I’d recommend I think that you know, those of you that take action and develop your your perfect daily schedule, so that first four hours, the morning is really dedicated, like we talked about lead generation lead, follow up, you’re gonna crush it in the next 24 months, regardless of what the marketplace does.
Love it, love it. Love it, love it. Alright, folks, hope you got some value today. If you have any additional questions, you want to learn how to build your brand in this type of market or you just didn’t know what to do visit one of our products was at our site, real estate marketing due to our new site referral suite, where we help you create all the content in the world. Remind your database you’re in business so that they stop forgetting you existence that refer new people. Thanks for listening other episode, Michael. It’s been a pleasure. Great catching up with you, dude. We’ll be in touch soon. And thank you guys for listening. Make sure you subscribe and follow us on social and we’ll see you guys next week. Bye bye. Thank you for watching another episode of the real estate marketing dude podcast. If you need help with video or finding out what your brand is, visit our website at WWW dot real estate marketing dude.com We make branding and video content creation simple and do everything for you. So if you have any additional questions, visit the site, download the training, and then schedule time to speak with a dude and get you rolling into your local marketplace. Thanks for watching another episode of the podcast. We’ll see you next time.
Transcribed by https://otter.ai