I like guys that say it like it is, rather than sugar coating everything. Fact is real estate had it too good for too long and there will be an adjustment. I know you can make as much or more net profit in this adjustment as long as you wake up and not depend upon a spring boom. Recently I read a quote from Mike Perry the CEO of Indy Mac Bank………………….”What we see happening in our industry today is the direct result of our capitalist, market-based, free enterprise system, where resources (people, capital, etc.) are constantly being redeployed from industry to industry, often in an abrupt and gut-wrenching way,” Perry said. “The bottom line is that there have been too many resources deployed to the housing and mortgage markets for too long, and the markets are forcing these human and capital resources to be abruptly redeployed to other industries.” Well I say amen. Sounds like you better change your ways now or get “re-deployed.” It is time now to:
1. Increase your listing inventory substantially. I areas that have not been hit hard, a doubling will be fine. In Southern California, Florida and Vegas, four times your usual inventory is better. (better brush up on what demographics are easiest to go after for a listing!)
2. You better be firmer with sellers that have prices that won’t sell. If they are preventing the sale and you have done EVERYTHING to get the price down and you feel they do not have great motivation or a reason to have motivation, then give them a choice of drop or get fired. I am still ok about carrying overpriced listings of motivated but cement head sellers.
3. Quit working with buyers that are not under contracts.
4. Quit spending money on inventory print advertising, replace it with web based and use the print space to advertise your services and your buyer’s needs.
5. Sell your stupid toys and invest the money in positive cash flow real estate considering equity pay-down.
6. Use your buyers to generate more seller leads.
7. Stop talking about the market, quit hanging out with real estate agents and time block your schedule for at least four hours a day on non-negotiable activities.
SO GET READY FOR MORE PAIN AND IF IT DOES NOT HAPPEN YOU WILL BE FAR AHEAD OF EVERYONE ELSE.
Walter Sanford
