If you think that when the real estate market slows down there’s going to be a shortage of real estate business and there’s only going to be so many deals to go around, you need to stop what you’re doing and read this blog.
What’s up everybody Ricky Carruth here, welcome back to my real estate blog. So, if you’ve been watching/listening me a while you know that my entire goal with this is to reduce the failure rate in the real estate industry one agent at a time and I’m going to do so by the exact principles that I’m going to talk about in this post.
If you’re one of these agents whose worried about the real estate market crashing or slowing down and you being forced out of the business the first thing you need to do is hit that like button because I’m about to in depth of exactly why that is not true. Now, I’ve seen of a couple of videos of some other real estate agents that say that there’s a shortage of business, there’s only so many deals to go around, and so many agents are going to have to get out of the business when the next downturn occurs. It’s people saying things like this that motivated me to start a YouTube channel and to start a free real estate coaching program so I could share exactly how I lost everything in the last market crash, but what I learned through the crash took me to the other side to becoming the number one Re/Max agent in the state of Alabama. Since 2014 I’ve been selling over 100 properties a year. As a 17 year real estate agent going through one of the biggest crashes we’ve ever seen I know just a little bit about what it takes to make it through the crash, how the entire process works, and how you can continue selling properties through an unlimited source of business.
The biggest thing that I learned through the market crash is that business is a completely unlimited resource in real estate regardless of the market conditions. If you look at the crash of 2008 and all of the years that were leading up to it and the years after it there were closings that happened every single day. There wasn’t a day that went by that there wasn’t some number of closings. Now some of the agents out there will argue with me and say “yes Ricky, there are closings that are happening every day, but there’s not enough closings to go around.” And I would agree with that to a certain extent, but that’s for the people who don’t have the right mindset. The agents that have to get out of the business and go back to their 9-5 or whatever it was they did before real estate because the market slowed down/crashed is because they didn’t develop the skills of communicating with people and understanding the philosophies behind unlimited business.
Unlimited business in a nutshell just means that there is more business than you could ever handle. I think about it like a buffet. When you go to a buffet can you eat every single piece of food on the buffet? No. Are there people coming into the door and piling into the restaurant and there is still plenty of food for everybody? Yes, why? Because they keep putting more food out all the time and when people eat it they replace it with more. You can’t eat it all. If one person could eat all the food and keep eating it forever and it’s just unlimited power to eat all the food, then yes there would be one person that sold all the real estate. None of us would have jobs, there would be no real estate agents, and there would be one entity that made all the deals, but that’s not the case. Why? Because there are processes. There are systems. You have to talk to the people, create the relationships, meet with them, have lunch, listing appointments, show them the property, closings, list the property, take pictures, put it on MLS, put signs up, lock boxes, appraisals, inspections, lenders, title companies. There is so much that’s involved in each deal that it bogs you down to where you can only do so many deals and that’s what create the unlimitedness of the business because you can’t do all the deals, so there’s always enough business out there to keep your pipeline completely full always. This is even true when the market crashes. When the market does crash, this is a very special thing for us real estate agents. We make money when the market is going up and going down because we make commission. This means it doesn’t matter what the prices are, it doesn’t matter if it goes up or down, every time a property sells we make commission. When the market is going up everybody’s making money, everybody’s happy, everybody’s buying and selling properties, and everything is going well. When the market levels off, that’s when people start to get worried, hold off on buying, and start rethinking what they’re doing. When it starts going down or crashes that’s when everyone holds up, but the special thing that happens is this; the buyers that weren’t buying on the way or buying when it started flattening out, they start buying when it’s going down.
The buyers that wait to buy when the market starts going down, they want to buy right now before prices go back up. They are investors. Where do we find them? They are property owners and already have property. What do we do? We call property owners and say “Hey, is there anything in the world we could do for you?” You want a copy of my scripts? Just go to ZeroToDiamond.com, create a free account, and download them.
These buyers have a sense of urgency and are probably going to buy more than one property because their whole game plan is to buy when it’s down, hold it till the market rebounds, and then sell. So, what will that do for you? You are going to sell those properties and when the market rebounds you are going to list and sell those same properties for them. At the same time, the sellers that sell when the market crashes, they have to sell because they’re in trouble because the market crashed on them. Most agents don’t understand this, all they see is a shortage in business. They don’t understand the unlimitedness of it so they get out of the business because they’re scared. So, we lose a lot of agents, but the agents that understand this philosophy are not going to have to go anywhere. They’re actually going to enjoy this slower market because it does a lot of interesting things. It creates the urgency and opens up time. When the market is really busy you don’t have enough time to make your calls, do your prospecting, follow up, reconnect with past clients. When the market slows down, you have a enough time to do those consistent phone call sessions. It’s a great opportunity to reconnect with a lot people and make a lot of phone calls to let them know what’s going on and keep them up to date and see if there’s anything you can do to help them because they will be buying and selling properties, if not then, sometime in the future. This business is about relationships over transactions. My overall goal is to reduce the failure rate in the real estate industry. This is my whole strategy. I’m going to push this message so far in the real estate industry so when the market crashes so many less agents have to get out of the industry because they understand what I’m saying and they’re going to continue selling property even through the bad market. Thus, the failure rate in the industry reduces. I am already reducing the failure rate in the industry, I get messages every week from agents saying they have tried everything and were about to get out of the business until they found me. Those messages are what is keeping me motivated. It keeps pushing me to keep going, make videos, do coaching sessions, write books, do speeches, make podcasts, and do all the things I am doing to help the industry and spread my message further because I’m helping so many people. The cool thing is the ripple effect of it all. If I’m helping one agent, I am also helping their family and they may go out and do things because of the success of their parents or spouse. They may give to charity and now that charity they gave to may flourish. There is so much good that is happening from the zerotodiamond free real estate coaching program and I am just humbled and honored to be a part of it. What I am really looking forward to is when the market rebounds and all the agents that listened to me that acquired so much market share when the market was down and then when the market rebounded their business explodes. Market share is the amount of real lifelong relationships that you have with property owners in your market. Your goal is to be creating many relationships with the property owners in your area, not for an ulterior motive to get them to buy or sell property. The entire goal is to see what you can do to help them short or long term and be there for them. Get their email address, put it in your database, send weekly emails every single week forever, stay connected, and watch your business explode.