P045 The coming cataclysmic changes in real estate, and how to protect yourself against them

P045 The coming cataclysmic changes in real estate, and how to protect yourself against them

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[00:00:01] This has get sellers calling you. And I’m Beatty Carmichael. Learn more at our website and get sellers calling you dot com.

[00:00:14] Well, hello, everyone. This is any comment. Welcome to the Net. I can get those calling you with Beatty Carmichael. Beatty is the master grabber, the creator, an agent dominator and one of the top marketing experts in the real estate field. Beatty, what are we going to be talking about today?

[00:00:34] Well, today we’re going to talk about the trends going on in the residential real estate. Some of the cataclysmic changes that are going on and what you can do to protect it and where we’re going to end up in today’s call is talking about multi-family and how multi-family in the commercial sector can really be a savior to a degree for a number of agents out there. So I don’t want to I’m not a doomsday person. Okay. But I do look at the trends and say something is definitely going on. And I want to kind of articulate and share what are those things that I see that you probably already experienced in yourself. And I want to extrapolate where this goes so you can start to prepare and say, oh, my gosh, is this guy even half right? I need to take some preparatory actions. Otherwise, things won’t happen before I’m ready. OK. So let’s talk about some of the market shifts that are coming. No. Number one, a big market shift that is just taking a lot of cities by storm right now is I buyers. OK. Now, if you’re not familiar with an eye buyer is, then it’s basically it’s a big company with lots of money that comes in and it offers home sellers a price for their home. And they’d have to do nothing to make it happen. They don’t have to fix up the home. They don’t have to repair it. They don’t have to paint it.

[00:01:59] They don’t have to clean it. They don’t have to disclose it. They don’t have to get it ready to show the eye. Buyers says we’ll pay you this amount, this amount as is OK. And and it’s very alluring. OK. It’s very tempting for the home buyers. I mean, the home sellers I was talking to one client out in one of the western states, I think somewhere in Arizona. And she has lost a number of listings already just in the last twelve months. I think it’s something like maybe a third or fourth of the listings she normally gets. She’s lost to eye buyers and eye buying has just come on the scene within the last year or so. Right. I was talking to another client in Dallas and he said one out of three. Thirty five percent of all of the sellers have had an offer by night buyer already. He said right now in Dallas, there are 10. I buyer companies that are that are at play. And this and this is the point I want to make. This is after just a very short period of time. You know, we started hearing about I buying a year, year and a half, maybe two years ago, somewhere in that timeframe. And and it’s happened that fast in that period of time. Here’s what I want to extrapolate. If 10 big players are already in the market. In that short period of time, and when you take the speed of technology, of data gathering data, analyzing it, all the algorithms determine what’s a good investment.

[00:03:37] And you got all of this money sitting in these big companies, Zillow, Amazon, all these mortgage companies, and they’re looking for what’s a good safe bet. Okay. I buying becomes really big on the target. So you take all that data, all that technology, all that money, and you extrapolate the speed in which it come on the market already and extrapolate it extrapolated out another five years. You’ve got a huge gorilla that you’re competing against, that just a few years ago wasn’t even on the market. This is going to be cataclysmic. I believe in how the residential realtor actually conducts business because now this is a competitor. You’ve never had to deal with and now you’ve got to deal with it. You have Zillow. OK, now Zillow is obviously one of the eye buyers. Right. But they also control a lot of data and they’re working to control even more. They’re already starting to compete against the realtors. Have you noticed that they’ve been jacking their rates up and delivering less? Not only that, they’re putting themselves as one of the realtors that you can call and inquire about a piece of property. Right. OK. And it’s just going to be more and more whoever controls the data controls the business. Always remember that. I got to tell you a short story, because this I think is the impact of all of this.

[00:05:03] A few years back, I was talking to a gentleman I met who sold nutritional products. It was a type of farm health nutritional supplement of some sort. And his customer was through Wal-Mart. Wal-Mart is how he grew his business. He was doing five or seven million dollars a year selling through Wal-Mart. It was a number one seller. He just finished creating a whole bunch of new inventory and he was bringing it to put it on the shelf at Wal-Mart. And Wal-Mart said, nope, sorry, we’re not gonna buy your product anymore. He said, What? Why not? They said, because we can do it cheaper by a few pennies, a bottle cheaper. So we’re doing it ourselves instantly. He went from five to seven million dollars a year in revenues to zero. Totally lost his business because he wasn’t in control of the ultimate customer. That’s what Zillow was looking to do. Whoever controls the data, whoever controls where the customers go. Buyers and sellers gets to control the business rules. That’s one of the trends you have to contend with. Then we have an unknown trend. All we know is wherever they go, they usually dominate. And it’s a household name, household word, name, Amazon. And they’ve been making inquiries and comment about doing something in real estate. Yes, they may. Do I buy and they may do something more. OK. So now you’ve got another huge competitor to deal with, but that’s not all.

[00:06:41] There is another set of trends that’s that’s encroaching even more into the personal services of the residential realtor, and that’s technology for the home seller. OK. So let me see if I can paint this picture again. Not trying to be doomsday, but say be wise, be aware, be alert. Here’s what’s coming. And extrapolate it out and see where it goes. OK. So right now, you know, the realtor can go online and run a background check. Pretty simple. Make sure that who they’re dealing with is someone legit. So on that safe. OK. Well, the home seller is going to be able to do the same thing is will run a background check on someone that wants to take a look at their home. Home seller already can lock and unlock doors from their mobile phone. Home seller can already put Wi-Fi cameras in their house and see as people go through their home. Seller can already post their home online for free at Zillow. Right. And other places. So right now, the technology is setup where more and more home sellers can choose to sell their home on their own. You add the speed in which new technologies are coming on the market and you’re going to increase the likelihood that more and more people are going to try to sell, says Bo, for sale by owner, because they’ve got all the technology to do it. Why do they need the real estate agent and to help with that? You have some real estate agents in some companies that are already involved outsourcing saying for a fee of a few hundred bucks.

[00:08:23] Will. So all of the contracts for you. So now it’s a turnkey system, I’m a home seller. Why should I pay the realtor a big fat commission? OK, when I can. It’s listed online. Do a background check. Open and unlock the doors and lock them back. Watch the people as they go through the house. I’ve got everything documented. I’m safe. Then you also have the trend of what’s gone on with the. I think it’s the buyer’s agent commissions. OK, from the lawsuits going on. What is that going to do? We don’t know. But here’s what I do know. You take all of these trends that are that we’re not even on the scene just a couple of years ago. And now they’re contending for business in a big way right now. And you multiply that out by five more years. Everything’s going to change. It’s going to be a cataclysmic change that’s going to require you changing how you do business. OK. It’s going to be as big, if not bigger than the advent of the Internet as it impacted how realtors did business. And a lot of the older time realtors who were here before Zillow and the Internet, you know what I’m talking about. Right. So. So the question is, what are you doing to prepare for it? I was talking to a client of ours who’s a very high volume producer, 30 year agent type of client.

[00:09:56] And he was predicting that at the speed all these changes are going, that within five to seven years, somewhere between probably one third and as many as two thirds of all the real estate agents we have right now will be out of business because you just can’t compete. That’s what’s up. The good will survive, the innovative will survive. They’ll always be niches. But more and more, we have these huge trends that are hitting the residential market. And what do you do? So I told you this was going to tie into multifamily. So let me talk a little bit about one concept. Okay. I’ll be right up front. I want to share this because we have a solution to break into the multi-family market. But I want to lay the groundwork in the business case for it. And then I’ll share what we’re doing. So multi-family is duplex triplex, quadruple legs all the way up to apartments. The small to medium sized multifamily, up to about 20, 25, 30 unit apartment buildings is predominantly an untapped market. It’s too small for the large commercial brokers to really focus on. And it’s commercial. So the vast majority residential agents don’t even go there because if you deal in commercial already, you know, it’s a totally different animal. The sale is different. The buyer is different.

[00:11:23] The seller is different. The marketing is different. You know, everything is different. It’s just completely different. So what happens is you have a virtually untapped market. Now, obviously, someone is selling there, but no one is really marketing there. Okay. There’s the competition is very limited. So now you have this large sector of, you know, big fish in a small pond type of sector of small to medium size multifamily with the multifamily because it’s commercial. All of these trends that you have currently against you in residential real estate don’t even touch in commercial. There are no I buyers. There is no technology for self sellers. There is no no technology that’s selling, grabbing the data and controlling the data and competing with you. So it’s real estate as it has always been. Okay. So it’s not going through the shifts. The other thing with commercial is it’s higher price. Okay. Your average small to medium sized multi-family unit is a more expensive piece of property than your average residential home. You have fewer people competing against it. No one’s really doing a great job marketing for it. So you have this wide open opportunity and I am recommending and suggesting that you look strongly into the multi-family market space as a second income stream that will protect you against these coming trends in the residential, not only a second income stream, but one that you can easily dominate. Let me ask you a question. Which do you think is easier to make money to be in a highly competitive field or a low competitive field, right? Yeah.

[00:13:16] The low competitive fill in a high competitive field, you put in high amounts of effort, get back few amounts of results in a low competitive field. You put in low amounts of effort and you get back high amounts of results. It takes less effort to make more money in a low competitive field. And that’s what multi-family marketing is, the multifamily property. So let me share what we’re doing to help you break into it. So now I want to shift a little bit and I want to speak only to the commercial agents. Those of you who already sell in commercial because you understand the dynamics, you’ve got the investors, you know how to price it is you know, you’re already set up in the commercial market. We’ve developed the same approach with Agent Dominator for the commercial sector, for the multi-family sector, as we have with past clients and sphere of influence and geographic farming. If you think about what we call our multi-family agent dominator, it’s pretty much like geographic farming, but for multifamily properties. Okay. And here’s kind of the way it’s set up. First off, we help you acquire the list using some of some data sources we’ve been able to compile together. We can acquire lists of all of the multi-family properties in the area that you want to target. We get their owner information.

[00:14:49] We actually go through and pierce the corporate veil through online research. Right. And identify the individuals behind the companies and their mailing addresses so that we can target directly to the people that are the decision makers, by the way. If you don’t already know this. Let me state it. The majority of the sellers in the small to medium size multifamily are average individuals. They’re not the institutional or the professional investors. And because of that, in terms of marketing to them, it’s more similar to residential than to something else. So. So the same things that we’ve applied over the years in marketing to consumers is the same type of concept in marketing to multi-family property owners. We do essentially two things with this. Number one, we identify sellers before they go on, before they put their property on the market. OK. Using compelling offers, something that the owner of a multifamily property would want to know if they’re thinking about selling the property, we give them of some sort of compelling offer that allows them to check it out on the Web site. And when they do our stealth technology, identify specifically which owner it is. So we know who it is that’s responding that way you can get in front of them first. The second thing we do is using some other proprietary processes that we’ve developed and perfected over the years. We drive additional of those cells directly to you. The other thing that is going on with the multifamily agent dominated product that we offer is complete exclusivity.

[00:16:34] So when we deal with an owner, let’s say if we’re marketing to a group of owners for one of our clients, then no other client that we do business with will be able to market to that same group of owners. So it’s kind of a first come first serve. But what it does obviously is, is it protects you so that as you dominate that market space, then you can hold onto that market space. So this just kind of high level. If you have interest, if you already sell commercial, you’re a little concerned what the future holds. You want to expand out into some other areas and you want to see how we can help you dominate the multi-family property market. Then let me encourage you to go to a very simple website and we’ll have more information. And it’s multi-family dot agent dominator dot com. Okay. So it’s multi-family dot agent dominator dot com. And if you go there, we’ll have more information. What we do, a place where you can fill out a form, we can get back with you. Also, if you do, if you deal with just normal retail, small type of commercial, you know, not great big office buildings, not great big industrial. And you want some help in marketing there, then we can also help you with that. So on multi-family dot agent dominator income and that’s pretty much it.

[00:18:02] Wow. I’m just excited about. Although Qwest and the potential for some of these agents to really start capitalizing on an industry that seems to be on the upswing.

[00:18:13] Yeah. Yeah. And it’s. And it’s easy to dominate, relatively speaking, because no one else really markets there. So when you have very few people, if any, doing marketing to it and you can do amazing marketing. It means a real quick foothold and a real quick dominance. And now. You’re in that space really, really strong. So it’s really cool. So all I do is show you guys more about that. All right. So I think that’s this call.

[00:18:46] You know, Heidi, I really enjoyed it. Thank you so much for your expertise today. This was great. And I really do hope that these agents that are listening will will check out that site and just get more information. We’d love to help them out.

[00:18:59] Absolutely. All right. You’ll have a blessed day. Thanks.

[00:19:02] But I.

[00:19:05] If you’ve enjoyed this podcast, be sure to subscribe to it so you never miss another episode and place like our Get seller is calling you Facebook page. Also, if you want to increase sales from past clients and sphere of influence, dominate a geographic farm or convert home valuation leads. Check out our Agent Dominator program. We create custom content that differentiates you from other realtors, then use it to keep you top of mind with your prospects with postcards, targeted Facebook ads, email campaigns, video interviews and more. And the best part is we guarantee yourselves or give all your money back. Learn more. Get sellers calling you dot com and select agent dominator in. Thanks for listening to the Get Sellers Calling You podcast.

[00:19:47] Have a great day.

P045

2019-10-01T13:39:49-05:00 By |

About the Author:

Beatty Carmichael (jh)
Beatty is a Christian businessman and consumer marketing expert. He started his marketing services business in 1997, helping over 11,700 sales agents dramatically increase sales. In 2012 he shifted his focus to work exclusively with real estate agents, helping them increase listings and sales quickly. He is CEO of Master Grabber. Learn more at MasterGrabber.com

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