Real Estate Agents WILL GO BROKE ! | Real Estate Market 2023

If you're a new or experienced real estate agent, it's time to change gears. You will go broke if you keep doing the same thing that you've been doing the last year. You need to realize that the market has shifted, and so you must shift too. Hi, my name is Joe Homs, and I flipped hundreds of homes here in Southern California. I have over 40 years of experience. I've been a broker, mentor, and investor, and I want you to like, subscribe, and share this content with your friends. In 2008, In 2008, I had to pivot tremendously. 2008, the market just dropped to the bottom and all of a sudden this thing came up and it was short sales. And everybody, every real estate agent's looking around going, what the heck is a short sale? There was real estate agents that were connected with banks that were getting fed properties for REOs, real estate owned properties, and that was something that they were doing. But before it got to that point, we all needed to learn how to do short sales. So I quickly taught myself what the heck a short sale was and how to capitalize on short sales. And I used a program called PropertyRadar And PropertyRadar gives me access to people that are in distress and in the process of being foreclosed on. And I went door knocking, door knocking over the weekend. I'd knock on numerous, numerous doors. And I was kind of lucky because I picked a condo complex of about 1,000 condos. And I would literally spend the weekend Knocking on doors at these condos. I'd end up coming back with 4 or 5 listings a weekend. And these were people that had purchased these homes for too high, and now they're worth half of what they were. Grant you that a lot of them put no money down or very little down, but still they were getting foreclosed on. It was the wild, wild west in 2008. The banks had no clue on how to handle short sales. what to do. They didn't have any staff in place. I'm literally listing these properties as low as possible to attract some buyers and started attracting investors. And the investors are ready to go. They have cash. They want to put cash down. I'm writing offers. I'm sending them to the bank and the bank's responding, we accept. Like, I'm shocked. Yes, we accept. So we accept $500,000 the year before on a condo in San Juan Capistrano. I'm selling them a year later for $100,000 cash and the bank's accepting. And again, I'm doing, at this point I'm doing probably 10 to 15 listings a month, literally door knocking every weekend. Wow. with people that are having difficulty paying their mortgage, finding out why and moving right along into a short sale, getting the banks to approve the loans. The banks improved their procedures after that to the point where they've got really, really good procedures in place now. But that's, that's how I started out and I had to pivot in 2008. So what do you do? Number 1, set seller expectations. For lower prices and fewer offers. And this is really, really important in a down market. And when I list a property, I am very honest. I always have been with sellers, and I go through this conversation again. You need 5 people coming through this door a week or else your price is too high. You know, tell me how much you're willing to go down to. Yeah, we can start at $1 million even though I'm telling you the prices $500,000. We can start wherever you want and I'll put it on there. And if you're not getting any showings or any offers, then please don't blame me because we've had this discussion. I told you it was worth $500,000. You wanted to start at $1 million. So how much do you want to drop it? Okay, so set their expectations that in a down market, people aren't dumb. They're going to look at this property and they're going to say, Yeah, I don't even think it's worth $500,000. Well, let's send them an offer for $400,000. So the sellers have to make a decision at that point. Do you want to sell it for $400,000? Counter back? You know, whatever the decision is, is what obviously as an agent you're going to follow and proceed from there. But as an agent, you have to educate them as to what kind of market we're in and how quickly you think it's going to be going down to prepare them in case that happens. Are you following along? Make sure that you hit that like button. And help me get in front of new investors. Number 2, find a niche. My niche has always been investors. My niche has always been notice of default, foreclosures, or really, really bad-looking houses, hoarder houses. That's been my niche. But develop a niche for yourself. It could be you want to go after Notice of Defaults, foreclosures, because you not necessarily want to buy them, but you want to list them as an agent, put them on the market, and earn a commission from either the sale of that property, or if it's a short sale, earn a commission from the bank because the bank will pay you on something like that. So there's lots of niches out there. You just need to find the niche that you want to work. You may work in a senior community, so become an expert in that senior community and find out what all the rules and regulations are and, you know, be that expert that people go to. So whatever niche it is, you need to find it. Number 3, learn creative financing. And that's really important, especially in a down market, okay? Because if the prices are up here and they're going down, And people can't sell their home for whatever reason, they're wanting too much or whatever, creative financing is a great tool because now you can say, okay, you can buy my home, and by the way, it's free and clear, and I'm older and I don't need the money, but I, you know, I would like the income coming in every month. And plus, it's a tax advantage when you do something like that. So I'm offering you this home, put 10% down, we'll put 7% or less, 5% to attract them, 5% interest rate for the next 5 to 7 years. And that's going to be something that a buyer is going to look at and they're going to say, well, wait a sec, I don't have to qualify for a loan because the seller is giving me that opportunity. Okay. And yes, it's 7 years, but Hopefully in 7 years the market's changed, the interest rates are back down, I refinance it and we keep moving forward, or 7 years they sell the house, whichever. Okay, so learn how to do creative financing because you can put a lot more deals together when you know how to do creative financing. Things are different now. You need to start changing your game plan in order to keep working in a shifting market. Most agents are not prepared for the upcoming That's because more than half of all active real estate agents have never worked in a market where prices were decreasing. The truth is, today's market is an opportunity to take action. Click on this video right here to find flips using an agent. If you have any questions, feel free to reach out to me anytime. I'm always here to help. Give me one.