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How Realtors Should Prepare For a Recession · Massive Agent Podcast

0:00
SPEAKER_00: On this episode, we're talking about the big scary R word.
0:04
SPEAKER_00: Hmm, a recession.
0:05
SPEAKER_00: We're talking about recessions.
0:07
SPEAKER_00: If there's a recession, which I believe we're already in one, what does that mean for you as a real estate agent?
0:12
SPEAKER_00: What do you need to do differently?
0:14
SPEAKER_00: What do you need to do to prepare?
0:16
SPEAKER_00: Let's get into that right now.
0:26
SPEAKER_00: I like to buy houses.
0:27
SPEAKER_00: I like to sell houses.
0:33
SPEAKER_01: Oh wait, better.
0:40
SPEAKER_01: Here's your host, Justin Bro.
0:44
SPEAKER_00: What is up, guys?
0:45
SPEAKER_00: Welcome to episode 229 of the Massive Agent Podcast.
0:48
SPEAKER_00: And this one is kind of a wamp womp episode.
0:51
SPEAKER_00: Not really.
0:52
SPEAKER_00: I don't really do want womps, but we're going to talk about some real shit.
0:56
SPEAKER_00: Okay.
0:56
SPEAKER_00: We're going to here's why I say it's want-wamp is we're going to talk about stuff that if left, if left unattended, if left um ignored with your head in the sand or your ass, then you could be in trouble.
1:11
SPEAKER_00: Okay.
1:11
SPEAKER_00: You this this could cause you to fail as a realtor, to have to leave the industry because you can't make ends meet.
1:18
SPEAKER_00: Let's avoid that, shall we?
1:20
SPEAKER_00: That that's what this episode is all about is helping you to avoid that.
1:23
SPEAKER_00: So, first off, remove heads from asses.
1:27
SPEAKER_00: That is step number one.
1:28
SPEAKER_00: Step number two, grab a notepad, let's take some frickin' notes and let's go.
1:32
SPEAKER_00: If you are new to the show, welcome.
1:34
SPEAKER_00: I am Dustin Brohm, your host.
1:36
SPEAKER_00: I'm a realtor out in Salt Lake City, Utah.
1:38
SPEAKER_00: I've been an agent for 11 years.
1:39
SPEAKER_00: And I got into real estate right after the Great Recession.
1:42
SPEAKER_00: So I got in in 2011 and the market had already crashed.
1:46
SPEAKER_00: It had already tanked, especially in Salt Lake.
1:48
SPEAKER_00: We were one of those cities that were hit fairly hard.
1:51
SPEAKER_00: I think there was like a 40 to 50% drop, or um, maybe it was 60%.
1:55
SPEAKER_00: It was big, big drop.
1:56
SPEAKER_00: And there were bank-owned properties and foreclosures and uh short sales everywhere.
2:03
SPEAKER_00: Okay.
2:03
SPEAKER_00: Homes could sit on the market for months and months and months.
2:06
SPEAKER_00: Like if you got a showing in the first week, you were lucky.
2:09
SPEAKER_00: Like it was literally the opposite of today's market.
2:14
SPEAKER_00: So pretty crazy.
2:15
SPEAKER_00: That's what I came in as.
2:18
SPEAKER_00: That's what I came in with.
2:19
SPEAKER_00: And now this market we have now is totally the opposite.
2:22
SPEAKER_00: But interest rates, as you well know, have been going up dramatically.
2:28
SPEAKER_00: Um, I just closed on the purchase of my new home, and the interest rate there would make your head explode because we did a bank statement loan, and the the rate on those is is higher, anyways.
2:39
SPEAKER_00: And then there was some uh some bullshit involved.
2:42
SPEAKER_00: It was frustrating.
2:44
SPEAKER_00: Um, they raised the rate on me twice.
2:46
SPEAKER_00: Um, part of that was just market conditions, you know, during that period of time because it took so damn long.
2:52
SPEAKER_00: But that interest rate would make your head explode.
2:54
SPEAKER_00: It's not five or six percent.
2:56
SPEAKER_00: It's more.
2:57
SPEAKER_00: Um, but it is what it is.
2:59
SPEAKER_00: We got the house.
3:00
SPEAKER_00: We got the house.
3:01
SPEAKER_00: So I'm I'm excited to announce that we we bought our house.
3:03
SPEAKER_00: Now we're just waiting for the sellers to find their house.
3:06
SPEAKER_00: So I don't know when we're moving in.
3:07
SPEAKER_00: Maybe, you know, a month, probably.
3:10
SPEAKER_00: Um, I'm optimistic.
3:11
SPEAKER_00: So yeah, so that's good.
3:13
SPEAKER_00: Anyhow, interest rates have been going up a lot, and that has thrown some cold water on demand a little bit.
3:22
SPEAKER_00: Now, here's here's where people fuck up.
3:26
SPEAKER_00: Okay, here's where agents who are who are new or just aren't thinking things through, here's where they mess up.
3:31
SPEAKER_00: Here's where consumers mess up when they don't really understand.
3:35
SPEAKER_00: There's a very big difference between demand cooling off and crashing, okay, and and a market going down.
3:44
SPEAKER_00: What crashing means, what a market going down means is that the value of the house is going down.
3:49
SPEAKER_00: So if your house today is worth 500k, then it just keeps going down because no one's willing to pay it.
3:54
SPEAKER_00: So you have to keep dropping the price.
3:56
SPEAKER_00: Oh, 500, you won't buy it there.
3:58
SPEAKER_00: How about 480?
3:59
SPEAKER_00: No?
3:59
SPEAKER_00: Okay, how about 460?
4:00
SPEAKER_00: Okay, boom.
4:01
SPEAKER_00: Somebody buys it at 460.
4:02
SPEAKER_00: When that happens for long enough, the home prices go down in a market.
4:07
SPEAKER_00: That's not happening.
4:08
SPEAKER_00: Okay, there might be a market here or there where that is happening.
4:11
SPEAKER_00: It's not happening nationally.
4:13
SPEAKER_00: Uh, it's not happening as a national average, it's not happening in almost any market that I'm aware of.
4:18
SPEAKER_00: So home prices are not going down.
4:20
SPEAKER_00: What the interest rate raises, increases, have done is it's cooled the demand.
4:26
SPEAKER_00: So rather, and this is what you guys need to communicate to your buyers and sellers.
4:30
SPEAKER_00: Okay, they need to understand the shit because they just read headlines that say that have words like bubble in the headline when that's not even an accurate term.
4:38
SPEAKER_00: This is not a real estate bubble.
4:40
SPEAKER_00: 2007 and 208 was this is not.
4:43
SPEAKER_00: This is not that.
4:44
SPEAKER_00: We don't have bad loans.
4:45
SPEAKER_00: We don't have uh I have bad interest rate on a loan, but we don't have bad loans.
4:50
SPEAKER_00: Okay.
4:51
SPEAKER_00: So demand gets cooled off, meaning that instead of 30 offers on your listing, you might only get 10 or six or maybe three.
5:02
SPEAKER_00: Okay.
5:03
SPEAKER_00: Home prices are still going up, they're still selling like crazy, you're still getting multiple offers, uh, but there's just fewer people competing for them.
5:12
SPEAKER_00: I believe that is extremely healthy.
5:14
SPEAKER_00: Thank God, right?
5:15
SPEAKER_00: It's about time.
5:16
SPEAKER_00: It getting to that means we're at a more balanced market.
5:20
SPEAKER_00: That that's great for us as agents.
5:22
SPEAKER_00: That's great for for buyers.
5:23
SPEAKER_00: That's uh that's still good for sellers.
5:25
SPEAKER_00: I mean, maybe it's not as good for sellers, but that's not a bad thing.
5:28
SPEAKER_00: Anytime you're getting people competing to buy your house, that's a good thing.
5:33
SPEAKER_00: So we're starting to see more inventory come on the market now that sellers, a lot of sellers are thinking, oh my gosh, is this the top?
5:40
SPEAKER_00: Is you know, is the market gonna start cooling off dramatically?
5:43
SPEAKER_00: Are we in a recession?
5:44
SPEAKER_00: I believe we're already in a recession.
5:46
SPEAKER_00: We won't know until they report two straight quarters of declining GDP growth.
5:52
SPEAKER_00: And that's uh the technical term of or the technical definition of a recession.
5:56
SPEAKER_00: Man, I'm putting on my like CNBC hat today.
5:58
SPEAKER_00: This is crazy.
5:59
SPEAKER_00: And I haven't even started.
6:00
SPEAKER_00: I've got, I've got, I'm gonna keep this hat on because we're gonna talk about um recession stats.
6:06
SPEAKER_00: Okay.
6:06
SPEAKER_00: We're gonna talk about some psychological shit, the normalcy bias.
6:10
SPEAKER_00: Um, I'm gonna step on some toes today.
6:13
SPEAKER_00: Yep, I'm gonna step on some toes because a lot of you guys still have your heads in your ass.
6:18
SPEAKER_00: You're worried about a recession, but you don't do jack shit different.
6:22
SPEAKER_00: I did uh you guys that follow me on Instagram at MassiveAgent, hint hint.
6:28
SPEAKER_00: I did a reel about this the other day that um took off, like very, very well.
6:32
SPEAKER_00: Uh it performed very well because it's just a topic that hits home.
6:38
SPEAKER_00: You know, there's a lot of agents that are like, oh my gosh, is a recession coming?
6:41
SPEAKER_00: What does that mean for my business?
6:42
SPEAKER_00: And then they don't do anything different.
6:43
SPEAKER_00: So we're gonna talk about what you can do different, how you can prepare.
6:46
SPEAKER_00: Um, but in general, it looks like the market is cooling off a little bit.
6:52
SPEAKER_00: The demand.
6:52
SPEAKER_00: I did not say going down.
6:54
SPEAKER_00: Okay.
6:55
SPEAKER_00: And in recessions, okay, and I'm looking this up so I can read it verbatim.
6:59
SPEAKER_00: In the in over the last five recessions that we've had.
7:03
SPEAKER_00: So basically the last five modern recessions since 1980, home prices have decreased in only two of the last five recessions.
7:13
SPEAKER_00: Only two of the last five.
7:14
SPEAKER_00: And one of those two home prices went down like 0.3%.
7:19
SPEAKER_00: So it like barely, barely went down.
7:22
SPEAKER_00: They basically just stayed flat during that recession.
7:25
SPEAKER_00: So the one outlier that the reason why we're all thinking, oh my gosh, recession means prices are gonna go down, market's gonna crash, it's gonna become a buyer's market again.
7:33
SPEAKER_00: It's because the most recent recession was that way, the great recession of you know, 08-2009.
7:39
SPEAKER_00: The 2007 to 2009 recession uh was super extreme.
7:44
SPEAKER_00: Okay, you saw the values go down 20, 30, 40, 50, 60 percent in some markets.
7:49
SPEAKER_00: And that's why we think that it's gonna happen again.
7:52
SPEAKER_00: But history shows that's not the case.
7:55
SPEAKER_00: So only one of the last five modern recessions had values go down dramatically.
8:03
SPEAKER_00: Like one of them basically stayed flat, the others home prices still went up.
8:06
SPEAKER_00: So, reading this directly, I'm gonna I'm gonna read you this quote from this uh this website, thebalance.com.
8:12
SPEAKER_00: Uh, a chief economist at First American Title said house prices clearly declined significantly during the Great Recession, but in other modern recessions, house price appreciation hardly skipped a beat.
8:22
SPEAKER_00: And year over year, existing home sales growth barely declined.
8:25
SPEAKER_00: The reality is home prices and existing home sales don't necessarily decline just because of a recession.
8:30
SPEAKER_00: In fact, the housing market actually benefits in one specific way during a recession.
8:35
SPEAKER_00: Monetary policy is usually eased to boost the economy, often leading to falling mortgage rates, which increases consumer home buying power and makes homes more affordable.
8:44
SPEAKER_00: Now, that's not happening today.
8:46
SPEAKER_00: Okay.
8:47
SPEAKER_00: They're raising rates because they've been so artificially low for so long.
8:50
SPEAKER_00: So the music has kind of stopped, so to speak.
8:52
SPEAKER_00: How this will play out, I don't know.
8:54
SPEAKER_00: But you, as a real estate agent, first off, understand even if we are in a recession, which I believe we already are, and and this will continue to play out, it's not going to be the great recession.
9:04
SPEAKER_00: You're not going to see prices go down 40% in your market.
9:08
SPEAKER_00: Now, for somebody who aspires to buy a bunch of real estate and investment properties, I that kind of sucks.
9:15
SPEAKER_00: I would love a 40% off sale, wouldn't you?
9:18
SPEAKER_00: The house that I just bought.
9:19
SPEAKER_00: Um, man, I wish I could could have gotten that for 40% off.
9:22
SPEAKER_00: Genius.
9:23
SPEAKER_00: Or the next house.
9:24
SPEAKER_00: You know, what if what if the next house I could get for 40% off two years from now?
9:28
SPEAKER_00: I wouldn't mind that at all.
9:31
SPEAKER_00: But not good for homeowners, not good for uh investors that are focused too much on appreciation instead of cash flow.
9:38
SPEAKER_00: Not good for well, it's not good for a lot of things, right?
9:41
SPEAKER_00: Um, if you plan on getting equity out of your home for a HELOC to do improvements, or some people need that to live for their expenses, and their value goes down, they're gonna lose that that uh equity.
9:53
SPEAKER_00: So that sucks.
9:55
SPEAKER_00: I do not believe that the next recession will see home prices go down.
9:59
SPEAKER_00: If they do, I think it'll be very minimal.
10:01
SPEAKER_00: We're just gonna see less demand, um, especially in the high end of the market.
10:07
SPEAKER_00: Um, but I've actually heard economists say that that's the the high end is not even gonna skip a beat.
10:13
SPEAKER_00: Okay.
10:13
SPEAKER_00: So why let me let me switch gears here because I I wanted to give you some stats on the recession.
10:21
SPEAKER_00: But the reason you came, the reason you're here, is to know what the hell to do.
10:27
SPEAKER_00: To know what the hell you should do as a real estate agent in a recession.
10:32
SPEAKER_00: Okay, how should real estate agents prepare for a recession?
10:35
SPEAKER_00: Well, there's a few things, okay?
10:37
SPEAKER_00: But first off, we need to address why a lot of you, most of you, are doing nothing different.
10:45
SPEAKER_00: If you believe that a recession is coming, why is your head still buried so far up your ass and you're not doing anything different?
10:53
SPEAKER_00: You haven't changed your behavior at all.
10:55
SPEAKER_00: You're still doing the same old shit that got you here.
10:58
SPEAKER_00: If you believe that a recession is coming and that it's going to negatively affect your business, you need to do something different.
11:04
SPEAKER_00: Now, I believe the things that I'm gonna that I'm about to list, you need to do them regardless if there's a recession or not.
11:10
SPEAKER_00: If the if the market just kept going up and to the right forever, you need to do this shit because it means more money in your pocket, more stability, more security, more uh diversification of your income.
11:23
SPEAKER_00: Guys, one of the we have a very high failure rate in this industry.
11:28
SPEAKER_00: This is one stat I didn't look up today, but uh it's like 80 or 90 percent of agents fail in the first what three years or something like that.
11:36
SPEAKER_00: Don't quote me, that's not that's not an exact stat, but it's in that ballpark.
11:40
SPEAKER_00: Like the vast majority of agents fail in the first few years.
11:44
SPEAKER_00: A reason why, I believe, is they're only focused on one source of income.
11:48
SPEAKER_00: And if you aren't great at lead generation, if you're not great at building a sphere of influence, if you're not great at communicating your value to the market and to the community, and you're you're struggling with getting business in the door, then your income is going to be up and down, up and down, up and down.
12:05
SPEAKER_00: It's this roller coaster bullshit that causes people to go broke, causes agents to leave the business, causes some to go bankrupt.
12:13
SPEAKER_00: Because you you get in in like tough times.
12:17
SPEAKER_00: Okay.
12:18
SPEAKER_00: I speak from experience.
12:19
SPEAKER_00: This was the first half of my career was this up and down, up and down, up and down, up, up and down, and it's brutal.
12:25
SPEAKER_00: All right.
12:26
SPEAKER_00: One of the reasons that that happens is when you get busy, you stop doing the shit that got you busy in the first place because you didn't bother to put in systems or outsource or have an assistant or transaction coordinators to help take the workload off, to allow you to continue to do the marketing, do the advertising, do the you know client appreciation events, do the outreach, do the follow-up that got you busy.
12:50
SPEAKER_00: So when you get busy, you stop doing those things because you're too busy doing non-income producing activities.
12:55
SPEAKER_00: So you got to outsource.
12:57
SPEAKER_00: You guys, I know I'm a broken record with this shit, but you guys need a transaction coordinator for the love of God.
13:03
SPEAKER_00: My brokerage, EXP, just uh just unveiled this new um transaction coordinator program that they make it so easy.
13:11
SPEAKER_00: It's basically push button get TC.
13:13
SPEAKER_00: And they have a whole dashboard that shows you where you're at in the process.
13:16
SPEAKER_00: It's it's probably the coolest thing I've ever seen.
13:19
SPEAKER_00: They made, they made getting a transaction coordinator more affordable, okay?
13:24
SPEAKER_00: So it's less expensive.
13:25
SPEAKER_00: You get a licensed transaction coordinator and you basically push a button to make it all happen.
13:30
SPEAKER_00: It's incredible.
13:31
SPEAKER_00: And they're not that hard to get to begin with.
13:34
SPEAKER_00: Okay.
13:34
SPEAKER_00: The whole point of me bringing that up is to let you know they're not hard to find, they're not hard to hire, they're not hard to get working because you just say, Hey, um, I want to hire you.
13:45
SPEAKER_00: What do you need from me?
13:46
SPEAKER_00: And then they tell you.
13:48
SPEAKER_00: You don't need to tell them.
13:49
SPEAKER_00: If you need to tell them what to do, you found the wrong transaction coordinator.
13:52
SPEAKER_00: Anyways, hire out all your shit for the love of God.
13:55
SPEAKER_00: If it costs you a few hundred dollars per closing, okay.
13:58
SPEAKER_00: How many hours do you save?
13:59
SPEAKER_00: How much mental space do you save?
14:01
SPEAKER_00: A lot.
14:03
SPEAKER_00: The reason why you guys are still just operating as business as usual, you haven't done anything different, is something called the normalcy bias.
14:10
SPEAKER_00: Okay, we saw we see this a lot with uh natural disasters.
14:14
SPEAKER_00: Okay, so let me find where's that go?
14:17
SPEAKER_00: Um, the lack of preparation for disasters often leads to inadequate shelter, supplies, and evacuation plans.
14:24
SPEAKER_00: Even when all these things are in place, individuals with a normalcy bias often refuse to leave their homes.
14:29
SPEAKER_00: Normalcy bias can cause people to drip to drastically underestimate the effects of a disaster.
14:35
SPEAKER_00: You guys have seen the meme of the dog sitting at the uh at the bar and the fires all around, and he's like, This is fine when your building's on fire, but you think it's fine.
14:44
SPEAKER_00: You have a bias towards normalcy.
14:46
SPEAKER_00: Okay, the way things have been, the way things have been going, the way your your life is, the way your business is, you just think that that's going to continue.
14:54
SPEAKER_00: So, like natural disasters, uh, if a hurricane's coming, a lot of people stick around, they're like, ah, you know, it'll be fine.
15:01
SPEAKER_00: Well, it it might, but it also might not.
15:05
SPEAKER_00: You might die, you know.
15:06
SPEAKER_00: If a tornado is coming, you're like, ah, that's probably won't hit our house.
15:11
SPEAKER_00: Well, probably not, but it might.
15:13
SPEAKER_00: So get the hell out of there, you know?
15:14
SPEAKER_00: Why risk it?
15:15
SPEAKER_00: Why risk your your your life and your family's life, you idiot.
15:19
SPEAKER_00: Now, if it's 30 miles away, that's another story.
15:21
SPEAKER_00: But we do this because we just think because things have been normal, things will continue to be normal.
15:27
SPEAKER_00: Normalcy bias is a psychological state of denial.
15:31
SPEAKER_00: It's the tendency for people to believe that things in life will continue to go the way they always have.
15:36
SPEAKER_00: All right.
15:37
SPEAKER_00: This we this happens with everything, but it it happens right now, it's happening right now.
15:43
SPEAKER_00: If we think that the market conditions are going to be changing, which they are changing, they are shifting.
15:49
SPEAKER_00: What doesn't mean that they're shifting downward, but they are changing.
15:53
SPEAKER_00: The dynamics of our real estate market and our industry are changing because the the demands of our buyers and sellers are changing.
16:02
SPEAKER_00: The um, you know, all of that, it's all changing.
16:06
SPEAKER_00: We need to think about okay, if things are changing, what do I need to change to st to stay ahead of it?
16:12
SPEAKER_00: Instead of thinking, well, you know, everything's been good, so I don't need to change anything.
16:18
SPEAKER_00: Here's what realtors, here's what realtors need to do to prepare for a recession.
16:23
SPEAKER_00: Okay.
16:24
SPEAKER_00: Number one, you need to diversify where your income comes from.
16:28
SPEAKER_00: If you are only relying on commission, it's dangerous.
16:32
SPEAKER_00: Even if you're selling a shitload of homes now and you have closings every week and commission checks piling up, uh, one of you, one of you guys, you're you're listening, you know who you are.
16:42
SPEAKER_00: You crack me up, my friend.
16:44
SPEAKER_00: But you have a stack, a ziploc bag of uncashed, undeposited commission checks.
16:50
SPEAKER_00: Uh, so you literally have checks piling up.
16:53
SPEAKER_00: That's great.
16:54
SPEAKER_00: What happens if that slows down?
16:56
SPEAKER_00: What happens if your clients, uh, for whatever reason, like they dry up or they go in a different direction or whatever?
17:03
SPEAKER_00: Like, you have to think about these things.
17:05
SPEAKER_00: So if you are, as an agent, only only making money from commission, that's that's a liability.
17:13
SPEAKER_00: Okay, that's a liability.
17:14
SPEAKER_00: You need to figure out how you can have other sources of income.
17:17
SPEAKER_00: I did a reel on Instagram about this as well, and I could not believe the messages I was getting.
17:22
SPEAKER_00: People like, wait, you could do that?
17:23
SPEAKER_00: Wait, what about this?
17:24
SPEAKER_00: Profit sharing, revenue sharing, affiliate marketing, wait, what?
17:27
SPEAKER_00: Uh sponsorship.
17:29
SPEAKER_00: There's so many other ways to make money.
17:31
SPEAKER_00: Look at any way that anyone makes money online, you could make that as a real estate agent by being creative, okay, to diversify where your income comes from.
17:40
SPEAKER_00: I believe, and I'm not shy about this because it's so obvious and right in front of your goddamn face.
17:46
SPEAKER_00: One of the easiest ways to do this is to join a brokerage that provides you revenue sharing, okay, that's not based on profit.
17:54
SPEAKER_00: It doesn't matter if the company's profitable or not.
17:56
SPEAKER_00: Revenue sharing.
17:57
SPEAKER_00: So whenever a deal closes and you are responsible for bringing people to your brokerage to work with you, to partner with you, you get a piece of that revenue every time a deal closes.
18:07
SPEAKER_00: So you could be in Europe for a month, and if you had 10 agents come join you at, you know, follow you, then whenever they close deals, you get paid.
18:18
SPEAKER_00: Hmm.
18:18
SPEAKER_00: That's a nice diversification of income.
18:20
SPEAKER_00: It's still commission income, but it's based on someone else's closings.
18:24
SPEAKER_00: That's the easiest way.
18:26
SPEAKER_00: Stock, accumulating stock whenever you close a transaction.
18:30
SPEAKER_00: Stock in a publicly traded company.
18:32
SPEAKER_00: Most brokerages do not provide this.
18:34
SPEAKER_00: There's only a couple that do, but you could be getting stock as a bonus just for selling homes.
18:41
SPEAKER_00: So the brokerage I'm with, the reason that I'm there, the reason I've I'm building the team that I have, um, the team of independence.
18:48
SPEAKER_00: I like to call the massive agent team the team of independence because everyone's solo, everyone's independent.
18:52
SPEAKER_00: There's no commission split with me, but we're partnered together as a team with all the upside of a team.
18:56
SPEAKER_00: It's awesome.
18:57
SPEAKER_00: We do that through my brokerage because we get stock every time we close deals and we get revenue share.
19:05
SPEAKER_00: So we have these other income streams built in.
19:07
SPEAKER_00: The stock is not necessarily a revenue stream, but it is accumulating wealth, accumulating some assets for later on.
19:13
SPEAKER_00: You could sell it, you could just let it pile up and appreciate as the stock goes up over time.
19:18
SPEAKER_00: Awesome.
19:19
SPEAKER_00: Uh, but you have to start thinking about where your income comes from.
19:23
SPEAKER_00: Affiliate marketing.
19:24
SPEAKER_00: If you have a lot of eyeballs coming to your website, you can be referring painters, uh, handyman, plumbers, interior designers, all of that, and then just get a referral fee when you give out those leads.
19:37
SPEAKER_00: There are agents out there that have decent web traffic or social media attention that are making thousands a month doing that.
19:44
SPEAKER_00: Why can't you?
19:45
SPEAKER_00: You just have to start.
19:46
SPEAKER_00: Okay.
19:47
SPEAKER_00: Um number two.
19:50
SPEAKER_00: The number two thing you need to do to prepare for a recession.
19:53
SPEAKER_00: You need to have great information.
19:55
SPEAKER_00: You need to have a great understanding of what's happening and why it's happening and what will happen as a result of what's happening and what it means to your clients, what it means to your buyers, what it means to your past clients, what it means to your sellers, your future sellers, your friends, your family.
20:11
SPEAKER_00: What does what's happening mean to them?
20:14
SPEAKER_00: How does it affect them and what they want to do?
20:16
SPEAKER_00: But having great information and great perspective is only part one.
20:20
SPEAKER_00: Part two is you have to communicate it.
20:22
SPEAKER_00: You have to actually let people know about that information.
20:26
SPEAKER_00: If you have, you take some of the stats we just gave you about a recession and why, you know, sellers don't worry, you don't, you probably don't need to worry about your home, your value going down.
20:36
SPEAKER_00: It's probably still safe to buy now and not worry about the price tanking because of only two of the last five recessions prices went down, only one of them was significant.
20:45
SPEAKER_00: You explain what that means to them and get it out there in video, get it out there in a podcast, get it out there in an email to your database.
20:53
SPEAKER_00: Um, you could do a webinar.
20:55
SPEAKER_00: There's a million different ways you could get the information out there, but you have to have great information and perspective in the eyes of the consumer and communicate it to them.
21:05
SPEAKER_00: Get it in front of them as quickly as you can.
21:08
SPEAKER_00: Okay.
21:08
SPEAKER_00: Number three, you have to be visible.
21:11
SPEAKER_00: Be visible online more than ever before.
21:15
SPEAKER_00: These are things you need to do regardless.
21:17
SPEAKER_00: If you want to grow your business, do these things.
21:19
SPEAKER_00: But in a recession, uh, there's a lot of agents that are going to be leaving the business.
21:23
SPEAKER_00: They just are because they they don't, they don't, they're not listening to this show, they don't have this perspective, they only read the goddamn stupid headlines from CNN, garbage news organization.
21:33
SPEAKER_00: They're not even news, it's bullshit.
21:35
SPEAKER_00: They read CNN, they read Fox, they read NBC, ABC, all this bullshit, and they see bubble, and they're like, oh my gosh, I better get out now, and then they go make soap and sell soap.
21:44
SPEAKER_00: Cool.
21:44
SPEAKER_00: Probably make more money doing that.
21:46
SPEAKER_00: But but what if you don't want to leave?
21:49
SPEAKER_00: What if you want to actually succeed?
21:51
SPEAKER_00: You guys are here because you want to succeed.
21:54
SPEAKER_00: You need to be visible.
21:55
SPEAKER_00: People need to know that you exist.
21:58
SPEAKER_00: People are in Your community, buyers, sellers, uh, people who are who will refer buyers and sellers, they need to know that you exist, they need to know what you do for a living, they need to know why you do it, you need to build credibility with them, you need to be likable, you need to build trust.
22:15
SPEAKER_00: All of that can be done with a video, all of that you can do on TikTok, Instagram, Facebook, Twitter.
22:24
SPEAKER_00: Yes, even still on Twitter, even though I shit on Twitter all the time.
22:28
SPEAKER_00: You can do it anywhere.
22:29
SPEAKER_00: You can do it on your website, you can do it on YouTube, you can do it on Pinterest for God's sakes.
22:33
SPEAKER_00: But do it somewhere.
22:35
SPEAKER_00: You have to get these videos out there, and do you have to do more than three.
22:38
SPEAKER_00: You've got to do more than 30.
22:40
SPEAKER_00: You gotta put them out consistently, and then you will attract people who are like, heh, I like the way this person communicates.
22:47
SPEAKER_00: They're they're not talking over my head with headlines, they're actually dumbing it down and letting me know what it means to me.
22:53
SPEAKER_00: Like, if interest rates keep going up and home prices going up, what does that mean for them wanting to buy a house in two years?
22:59
SPEAKER_00: You better have a you better be educating them on affordability or lack thereof when it's a double whammy.
23:07
SPEAKER_00: Rates going up, values going up.
23:09
SPEAKER_00: If they're qualified for 500k now, they're gonna be qualified for like 320 by then.
23:14
SPEAKER_00: So they need to understand that rather than rates are going up.
23:19
SPEAKER_00: When you leave, when you guys put out stats and information and you just rely on the viewer to decipher it on their own, you've already fucked up because they're gonna decipher it in a million different ways, and it may or may not be helpful for them.
23:32
SPEAKER_00: So go the step further, decipher it to them.
23:36
SPEAKER_00: What does it mean?
23:37
SPEAKER_00: How does it affect what you're trying to do?
23:39
SPEAKER_00: So you could do a video.
23:41
SPEAKER_00: If you are planning on buying a new house in the next two years, here's what here's three things you need to know.
23:46
SPEAKER_00: That's a great hook.
23:48
SPEAKER_00: That's a great start to a video.
23:49
SPEAKER_00: Steal that, use that, use the shit out of it, please.
23:52
SPEAKER_00: And then tell them what they need to know.
23:54
SPEAKER_00: They need to understand interest rates, they need to understand home prices, they need to understand all that stuff.
24:00
SPEAKER_00: Get it out there.
24:01
SPEAKER_00: So if you guys diversify where your money comes from, okay, have additional income streams.
24:06
SPEAKER_00: The easiest way is to join the massive agent team.
24:08
SPEAKER_00: I'm not even shy about that.
24:10
SPEAKER_00: That's the easiest way.
24:11
SPEAKER_00: If you want to talk about what our team of independence looks like, let's do that.
24:15
SPEAKER_00: There's a reason why so many independent brokerages and big teams are actually coming to partner with me and our group.
24:21
SPEAKER_00: This is happening right now.
24:22
SPEAKER_00: We have a team of seven from Florida that's coming over right now because they just see, oh my God, this makes so much financial sense.
24:30
SPEAKER_00: So that's the easiest.
24:32
SPEAKER_00: There's a other ways you can do it.
24:34
SPEAKER_00: Maybe you can do it with your brokerage, but you need to take advantage of those things just because it's offered doesn't mean it's going to help you unless you actually do the shit.
24:43
SPEAKER_00: So diversify where your money comes from, have great information and communicate it and then be visible.
24:48
SPEAKER_00: You have to be be you have to be seen online much more than you are now and continue that and do it consistently for as long as it freaking takes.
24:57
SPEAKER_00: If you guys do those things, a recession will come, it'll go, doesn't matter.
25:02
SPEAKER_00: Also, as a bonus, if if prices do go down, okay, or or just demand cools so much that you're not competing too much for homes anymore, buy a bunch of rental properties.
25:15
SPEAKER_00: Get in the game, get in the investment game.
25:17
SPEAKER_00: Okay, whether you're buying them yourself or maybe you're just loaning the money out and doing a joint venture partnership with somebody.
25:22
SPEAKER_00: Um, you know, I'm gonna be doing all that this year.
25:25
SPEAKER_00: You know, that now that I've closed the purchase of my of my new primary residence, now it now it's the investing game.
25:31
SPEAKER_00: It's on.
25:32
SPEAKER_00: So we're in the trenches every day.
25:35
SPEAKER_00: You guys could be doing the same thing.
25:38
SPEAKER_00: If a recession comes, that creates so much opportunity to buy homes with less competition or whatever.
25:46
SPEAKER_00: But get in the game.
25:49
SPEAKER_00: Don't just put your blinders on and only work with buyers and sellers because um you're gonna miss out on a lot of opportunities.
25:54
SPEAKER_00: That 10 years from now you're gonna kick yourself in the ass.
25:57
SPEAKER_00: Ten years from now you're gonna be like, oh, if only I could have bought homes at 2022 prices.
26:02
SPEAKER_00: Holy shit.
26:03
SPEAKER_00: Now I can't even get a house for under 1.5.
26:05
SPEAKER_00: We're gonna be saying that.
26:07
SPEAKER_00: We're gonna be saying that.
26:08
SPEAKER_00: You think inflation is just gonna go away and go the other direction?
26:11
SPEAKER_00: Nope.
26:12
SPEAKER_00: Not happening.
26:14
SPEAKER_00: Guys, please take action on the shit.
26:16
SPEAKER_00: This is important.
26:17
SPEAKER_00: If you found value today, please share it with a friend.
26:19
SPEAKER_00: Please share it with your broker, share it with your team.
26:22
SPEAKER_00: Um, if you guys are serious about looking at what the massive agent team has to offer, please just hit me up on Instagram, send me a DM.
26:31
SPEAKER_00: Be more than happy to jump on a Zoom with you and walk through the details, walk through what it looks like, what it means to you, um, you know, how things would change for you.
26:40
SPEAKER_00: Just lay it all out.
26:41
SPEAKER_00: And I'm not a hard sale guy.
26:43
SPEAKER_00: I just want you to have the information so that you can make an educated decision on what's best for you.
26:48
SPEAKER_00: That's it.
26:49
SPEAKER_00: All you have to do is shoot me a DM on Instagram.
26:51
SPEAKER_00: Um, and guys, before we wrap it up, big thank you.
26:56
SPEAKER_00: Big shout out to Follow Up Boss, our um partner sponsoring the show.
27:00
SPEAKER_00: These guys are helping so many agents to grow and scale when um when there's just so much distraction out there.
27:08
SPEAKER_00: There's so many shiny objects, there's so many new CRMs and tools and software, you know, this and that.
27:13
SPEAKER_00: Follow up boss has built the best in best in the business CRM.
27:17
SPEAKER_00: It's helping agents to spend less time but get so much more accomplished.
27:22
SPEAKER_00: I believe they are the best CRM for the money, the best CRM, period, across the board, full stop.
27:29
SPEAKER_00: They're giving you a 30-day free trial to see it for yourself.
27:32
SPEAKER_00: All you have to do, oh by the way, no credit card required.
27:34
SPEAKER_00: 30-day free trial, don't even need to put in your card.
27:37
SPEAKER_00: All you have to do is go to Massive Agent Podcast.com slash follow up boss and take advantage of the 30-day trial and see why I and so many other killers within this industry, top producers, team leaders, broker owners, why they all use and swear by follow up boss, probably a clue that you should too.
27:54
SPEAKER_00: MassiveAgent Podcast.com slash follow up boss.
27:57
SPEAKER_00: Guys, have a great weekend.
27:59
SPEAKER_00: Thank you for listening.
28:00
SPEAKER_00: Hope you learned something today that you take and do something with.
28:05
SPEAKER_00: And please share it with somebody that you think would find value if you did.
28:08
SPEAKER_00: That's how we grow the show.
28:10
SPEAKER_00: And that's all we have.
28:12
SPEAKER_00: Appreciate it, guys.
28:12
SPEAKER_00: Have a great weekend.
28:13
SPEAKER_00: Take care.