Will There Be a Housing Market Crash in 2021?

So the question I'm getting asked quite a bit is, will there be a housing market crash in 2021? And if so, how do you prepare? So for the first question, I have no freaking clue. I have no idea what's going to happen in the future with interest rates or the stock market or the housing market. If I did, I probably wouldn't be recording this video. I probably would be living on some island and I'd be independently wealthy and I wouldn't sort of, I don't know, life would be different if I could predict the future. That being said, I did live through a really difficult time in the Great recession years of 2008, 9, 10, 11, and I5XED my business during that time where our roster here in my local market went from 15,000 agents to 5,000 agents. So I absolutely know what to do to prepare for a pending market shift. And it will happen. It's 100% guaranteed that the housing market will, will shift. We've been kicking the can as a country on the economic issues that we have and recent world events have not made it easier in terms of our ability to thrive economically as a country. So we have some stuff we have to deal with and there will be implications in the housing market. So before I get into that, I want you to stick around to the end of the video. I have a challenge that I want to lay down for you. Just spend a little bit of time with me in a challenge to grow your business, to do more deals in less time and have more time to do things outside of real estate. Enjoy life more so than you may be enjoying it right now if you're a busy real estate agent. If you like the video, make sure you give me the thumbs up and make sure you subscribe to the channel and turn notifications on so you're the first to know about new videos when they drop and make sure you leave comments as well. Back in 2007, that was my first year in real estate. You know, it's right before the Great Recession, so I left a cozy multiple six figure corporate job making about 100 bucks an hour. I'm always thinking in, you know, dollar productive activities. You know, we talk about Business Freedom Index and all those good things. So I'm always thinking in that way. So I was making a couple hundred grand a year, working about 2,000 hours. I was traveling quite a bit and so my life really wasn't my own in some ways. I had no idea. Just as I sit here today, I have no idea how the market's going to react in the future. I was able to pivot my business to the point where I grew my real estate business in those great recession years while agents got out of the business. So our roster, like I said, went from 15,000 to 5,000 over about a three year period. And so the things that I focused on I think are the things that you'll need to focus on to be successful in this next market shift, which is guaranteed to happen, 100% guaranteed, you heard it here. Although I have no idea when it's going to happen. So I know all the indicators to watch to know as much in advance when it will happen. But I don't know if it's going to happen in 2021. And so here's what I would do if I were you. I would focus on your dollar productive activities. What are the things that make you money in your real estate business? Really be honest with yourself and even do a time study. We do time studies in real estate B school. The least fun thing to do is track where you're spending your time. The most impact you can have in your ability to make money in less hours is track where you're spending your time and then make decisions about how you're going to spend your time differently in the future. And so I was ruthless about where I spent my time. And so while other agents were running signs around town or dropping a check off from a closing or designing a brochure or entering a listing into mls, I knew from my corporate job that these things were not of the pay grade that I wanted. Plain and simple. I was just not willing to make the kind of money that those activities could be done for. And so in a corporate environment there's the guy that's running the show, the CEO or chairman making like $2 million a year. And then there's a janitor who is cleaning toilets and emptying trash cans. The janitor's job is super important. So that's not not important job. It's just a different job, a different set of skills, a different focus and intention and impact than the chairman of the company. And so I made a decision in my real estate business that I was going to be the CEO. I was going to be the guy that get paid legitimate money. So I just decided in advance that I wanted to make $500,000. I wanted to work 40 hours a week, which is 2,000 hours a year. So I wanted to go from my corporate job making 100 bucks an hour to, to $250 an hour. And so it involved me shedding all the things off my plate. Took me about two years to figure it out. Really a little over two years. You know, 2008 was my first full year. I sold 44 homes with just a part time assistant. 2009, the end of that year is when I hired my first buyer agent. We did 58 sides then 118, 178 and 248 in 2012. And I did the right economic model with my team. I sold one home that year and made amazing money and I provided amazing value for the agents on my team. And it all came down to focusing on the things that made me money. So as the market shifts, right, Are you really spending your time? Do you even know how to spend your time to make the most amount of money in the least amount of time? That is my challenge for you. And there's four things as an agent, right? You've heard me say before. Prospecting, lead follow up appointments and negotiating deals. If you're doing anything outside of those four things, that's 80% of your waking hours must be spent on prospecting, which is new business development that's talking to buyers and sellers about working with you or meeting you face to face. Lead follow up is the 90% of the people that said no to you the first time, but they agreed for you to follow up. Appointments are consultations with buyers and sellers where you're sitting down and presenting your service. You're not popping out and showing homes to people that aren't qualified and they're not your client. And then negotiating contracts is getting buyers under contracts and getting and getting sellers under contract. Anything outside of those four things is not going to make you a whole lot of money and you need to consider doing something different. And I would say a second thing to consider as we're entering into a shift is where you're spending your money. And so on the one hand, where you're spending your time, on the other hand, where you're spending your money. I know a ton of agents that are just spending money with Zillow or Pay Per Click or this lead gen source or that lead gen source and they haven't committed to becoming a good marketer. And so they're just giving money to somebody else that has cracked the code on marketing and they've sort of just bowed down to this entity, call it Zillow, and I'll just give you money. You can be a better marketer than I am. That's not the way we roll in real estate B school. That's not the way I rolled in my real estate business. We have cut off all paid advertising, all forced buyer lead registration. We don't pay for any seller leads whatsoever. We have lead gen levers in our business that we can employ at the right time that are good for 50 deals each. We have over eight lead gen levers that are swipeable and deployable in our members businesses. So as you think about where you're spending your time all also where you're spending your money, right? Those are the two things that you need to do to prepare for the shift. And so while we can't control where the market's going and I can't even predict it, we can put ourselves in a position to thrive while other agents barely survive. So like I said earlier in the video, make sure you join us for our next challenge. It's a little bit time we get to spend together where I can help you grow your business in terms of your top line and your bottom line and not grow your hours or lose your mind in the process. So go to rebschallenge.com that's R E B S challenge.com if you like the video, give me the thumbs up. Make sure you subscribe to the channel and turn notifications on and also leave comments. We'll see you in the next.