Valuetainment - Advice To Real Estate Professionals - How To Standout In A Bad Market

00:00:00.000 If you're a real estate professional and with all the mess that's going on in America today,

00:00:03.360 interest rates, Powell, three-quarters of a basis point, valuation dropping, inventory going up,

00:00:08.260 oh my God, what's going to happen to real estate? But Pat, I am not leaving the industry. Like the

00:00:14.200 scene from Wolf of Wall Street, I'm not leaving. They can't make me leave. That's you. Today's

00:00:18.900 video is for you. Okay, so point number one. During this season, the bottom 80% is going to get

00:00:31.220 destroyed. The top 20% is going to be okay. The top 1% won't even feel it. So what can you do

00:00:37.020 to be in the top 1% of your industry? I'm at a comedy show with Maz Jobrani. It's Father's Day.

00:00:42.520 My wife, my family invites me. We go there. Maz is speaking. He's doing his part. That's the second

00:00:47.480 time I'm watching him. I brought him back to us six years ago. And he gets up and he says,

00:00:51.360 he's talking to his agent during COVID. There's nothing going on. He's in LA. Everything's been

00:00:55.340 shut down, right? There is no work. There is no comedy shows. There's no touring. They're not doing

00:00:59.440 movies. How do I make money? His agent says, Maz, I don't care what you do. Every day, create one

00:01:06.480 piece of content. And all you do, whether you're getting paid or not, create one piece of, but I'm

00:01:11.480 not getting paid. It doesn't matter. Create a piece of content every day. So what does Maz do? He says,

00:01:16.760 all right, whatever. I'll listen to my agent, my manager. He starts creating a piece of content.

00:01:21.200 Next thing you know, boom, one goes viral. Boom. Another one goes viral. Boom. Another one goes

00:01:28.060 viral and people are calling him. Hey, can you do this? Hey, can you do that? Hey, can you do a Zoom

00:01:31.740 comedy? Can you do that? And then now afterwards, because of all the videos and all the eyeballs that

00:01:35.800 he got, people are saying, oh my God, that's Maz. I saw him clip on this. I saw this. I saw that. I saw

00:01:39.840 that. He increases market value. So when COVID was done, boom, the demand went up. Same as you. Today,

00:01:45.560 for you, is a great opportunity to create unique content talking about current times. And the way

00:01:50.460 I would do this in the following way. Think about how currently customers feel about real estate.

00:01:55.220 Make those fears, make those anxieties, make those concerns that they have, and create a video speaking

00:02:00.120 to them. Then create videos with realtors that are concerned, fears that they have, concerns that

00:02:05.380 they have, and talk to them. And not in a fake way of saying it's, you know, real estate, don't believe

00:02:11.480 the BS, don't believe this, don't believe that. No, some of it is real. We got to have a real

00:02:15.140 conversation together. The more sincere, the more real you're going to be at a time like this.

00:02:19.080 When there's nothing else to do than create content, you're going to get eyeballs. So when

00:02:22.720 the market comes back up, everyone's going to say, that real estate professional, I saw him so many

00:02:27.240 times on Facebook, Instagram, Twitter, YouTube. I want to talk to that guy. Today's sponsor is

00:02:32.060 Masterworks. Matter of fact, I really like what Masterworks does because a lot of people can't

00:02:35.920 afford to buy a whole art piece for $2 million. What Masterworks does is they buy the art piece,

00:02:42.280 they file it with the SEC, then members are able to buy and sell shares. That's what they do. Now

00:02:48.080 keep in mind, you know, this is like, you can't buy all of Apple for $2.5 trillion, but you can buy

00:02:52.500 an Apple stock for a few hundred dollars. Similar story. One thing you need to know about how much

00:02:56.840 wealth is being held in art today is an estimated $1.7 trillion. Millionaires, billionaires have held

00:03:03.640 their wealth in art. Deloitte says it's going to increase another $900 billion by 2026. What

00:03:09.220 Masterworks does is the last five paintings they sold since 2017, their average rate of return was

00:03:14.260 26.8% and contemporary art prices have outperformed S&P 500 total return, ready? By 164% the past 26

00:03:25.360 years. So if this is something you want to take advantage of, we're going to put the link below.

00:03:29.040 There is a waiting list for people that are trying to get into this program with Masterworks,

00:03:33.060 but because you're part of Valuetainment, if you click on the link below and you go through

00:03:36.140 Valuetainment, you will skip the waiting list and you'll be able to start buying and selling

00:03:39.720 shares immediately. Point number two, don't let fear immobilize you. When I was working on Morgan

00:03:44.680 Stanley Dean, my first day was 9-10, a day before 9-11. When 9-11 hit, we're at the office,

00:03:51.760 Dave Kirby sends everybody home, we come back the next day, 9-12, and the look on everyone's face

00:03:57.560 was unbelievable. Our headquarters goes on at World Trade Center, 3,600 employees,

00:04:03.380 and Dave says, guys, whatever you do, pick up the phones. Don't be afraid of the phones. The guy in

00:04:10.740 the corner office making 700K a year was afraid to pick up the phones because everybody was calling

00:04:16.420 him. So every day that went by that he didn't pick up the phone and contact his customers,

00:04:21.800 somebody else did, and they left them. During a time like this, a lot of times realtors are afraid

00:04:26.780 to call their existing people that they sold or existing customers. This happens in every industry,

00:04:31.500 by the way. Stock brokers, it doesn't matter who you are. This applies to every industry. You do the

00:04:35.120 opposite and pick up the phone and get right into it. Hey, John, hey, Mary, how are you? Look, in the

00:04:40.460 industry, one of the biggest challenges, most realtors are not calling their clients. I'm calling you

00:04:43.700 right now to ask you, how are you feeling? How are things? How do you think about what's going on with

00:04:47.800 the economy right now? Do you have any questions for me? And you process it with them.

00:04:50.780 That customer is going to get off the phone saying, wow, what a courageous guy. What a tough

00:04:55.660 guy. Because if there's one reputation many realtors have, if they were men, they're known

00:05:01.960 for being one night stand professionals. They sell a house and they never call the customer

00:05:06.200 back because they got their commissions. We've all experienced this before. This is the wrong

00:05:10.700 time to treat your customers that way. It's always a wrong time to treat them that way, but

00:05:14.360 this is definitely the wrong time to treat them that way. Pick up the phone, call them.

00:05:18.120 Point number three, when COVID happened, everybody was afraid. We had no clue what was going to

00:05:22.780 happen. All the insurance companies were like, oh my God, the first thing clients are going

00:05:26.740 to cancel is their insurance policies. What are we going to do? We got to get ahold of these

00:05:30.460 guys. We got to get out. How are we going to handle this stuff? I went to the home office.

00:05:33.800 I had a meeting. I said, guys, here's what we're doing. What are we doing? We are sending

00:05:37.340 $5 gift cards to all our customers. What do you mean? We're sending $5 gift card, Amazon

00:05:43.920 cards to our customers. Pat, that's a big cost. I totally get it, but we're going to send

00:05:48.280 a $5 gift cards to our customers. Pat, that's in the tens of thousands. I understand, but we're

00:05:54.500 going to send these $5 gift cards to them and just say the following line. You ready? What

00:06:00.300 is it? I just wanted to tell you in strange economy like this, I value loyalty and I value

00:06:07.100 a customer that appreciates what we do for them. Just wanted to say thank you and enjoy a cup of

00:06:11.780 coffee on us with a $5 Starbucks card. So imagine you're a customer of ours. COVID hits. You're

00:06:17.860 already afraid. You're worried. No one's calling you. No one wants to talk to you because they're

00:06:22.980 afraid you're going to cancel something. And meanwhile, I get a $5 Starbucks card from you. I'm like,

00:06:29.440 what? Hey, babe, take this $5. Go have a cup of coffee, but look who just sold. That's 0.81

00:06:36.200 unbelievable, babe. Look who sent me a card. No way. Yeah. Babe, I was about to cancel the

00:06:41.260 policy. Yeah, babe, we can do it. Babe, nobody else did that. Let's keep the policy. If you're in

00:06:46.860 real estate, this applies to everything. If you're in real estate, specifically your loans, everybody

00:06:51.020 that's ever bought from you, everybody that's been your customer, send them a letter with a gift

00:06:56.980 and say, I just want to say thank you. I value your relationship a lot. Hope all is well. And

00:07:03.540 don't ask for nothing. Just give it to them and see what happens with their reaction. Because

00:07:09.300 they'll remember that three months, six months, 12 months, 24 months from now. Okay. So these

00:07:14.240 next three are not going to be comfortable. So brace for impact and set your ego aside for

00:07:17.360 a second. And just, just talk to me here. Point number four, you ready? If you're somebody that

00:07:21.900 doesn't have a lot of cash and you didn't save a lot of money, maybe you were making 200 a

00:07:25.100 year, 300 a year, but you were really spending money and you thought the market was going

00:07:29.280 to stay like that forever. And you're in a bad situation. Don't let your ego get too

00:07:34.080 big for you to not get a part-time job or Uber at night to make some money to pay your

00:07:39.060 bills. We've all done this. I did this. Just so you know, when I first left Bally's and

00:07:43.140 I started working at Morgan Stanley Dean Witter, and then I went and became an independent financial

00:07:47.440 advisor, serious 766, 3126 life and health. And the market tanks is like the worst time to

00:07:53.980 leave your job. And that's what happened to me. I left at a time like that behind closed

00:08:00.040 doors. Guess what I'm doing? I'm the morning manager at Bally Total Fitness opening clubs

00:08:04.800 at four o'clock. I'm selling shirts on the corner of Reseda and Nordoff right next to

00:08:11.500 CSUN. I would buy shirts at $2 a pop and sell it for 15 bucks a pop. That's what I would

00:08:17.280 do to pay my bills during bad times because I was very comfortable. And by the way, I would

00:08:21.920 go to the clubs on Saturdays. And CSUN was like the main university that most of my friends

00:08:27.600 went to. And guess what guys would say? Hey, Patrick, you look really good. I said, what

00:08:32.360 do you mean I look really good? I got a freaking shirt on. He says, yeah, I saw you on the corner 0.97

00:08:35.500 of Reseda and Nordoff without a shirt on selling shirts. I said, well, I was in shape. I was

00:08:39.680 like freaking chiseled. I'm like, dude, whatever it takes to sell some shirts, I'm going to make

00:08:42.440 some money right now. There was no Uber back then. There was no Amazon dropsham. There was none

00:08:46.200 of that stuff. I'm selling shirts. Fast forward 20 years later, I'm doing very good financially,

00:08:52.940 but I was not afraid of me being on the corner of a street selling shirts to make money to

00:08:59.520 pay my bills. Set your ego aside because the current times are real and it affects your

00:09:04.940 industry. Set that ego aside. If you got to do Uber, if you got to get a part-time job,

00:09:08.700 if you got to get a license in another industry to make some money during this time because you're

00:09:12.200 not going away from real estate, go do it. Point number five, this is also a tough one. You ready?

00:09:17.140 What's beneath you? What is beneath you? What do you mean? What's beneath me? What's beneath me? No,

00:09:21.140 not like that. Like what's beneath you? What's beneath you? Like, do you realize I'm the real

00:09:26.220 estate guy that's on brochures and everybody in my city knows who I am. I go to the chamber of

00:09:32.240 commerce. They know me by this name. I have this nickname. I have this brand. I got you. What's beneath

00:09:37.720 you? At a meeting upstairs two days ago and I'm talking to my sales guys, the consultants,

00:09:42.780 and I asked everybody, I said, what do you think is beneath me? Everybody's staying quiet. So what

00:09:47.580 did I tell Pat? I said, if I walk into the building and I see trash on the floor, I'm the CEO of the

00:09:52.500 company. Is it beneath me to pick it up? The room was 50-50. I said, why shouldn't I pick it up to my

00:09:57.420 building? Is it beneath me to keep the building clean? Is it beneath me to go around and talk to people

00:10:03.100 and say hello? Is it beneath me to talk to a person that's doing camera and talk to them like

00:10:07.000 we're regular people? Or am I supposed to be superior around everybody? So what's beneath you,

00:10:11.420 Mr. Realtor, Mrs. Realtor? Is it beneath you to do one thing that realtors don't want to sell?

00:10:17.380 Let's talk about it. You know what that is? If you're used to selling an $800,000 house and you

00:10:21.880 make 6%, whatever, you make 50% on that 3%, $24,000, or you make 3%, you make 50% on that $12,000. So you're like,

00:10:28.720 average thing I sell, I make $10,000 commission, $20,000 commission, $30,000, whatever your number

00:10:34.740 may be, $5,000 if you're in Toledo, $30,000 if you're in New York City. You know what no one wants

00:10:39.960 to do today that a lot of people are doing? A lot of people are renting, a lot of them. And you can do

00:10:45.340 12-month leases, 24-month leases. And you know how this works. In the real estate industry, if you do

00:10:51.080 12-month lease or 24-month lease, you get paid typically two different ways. Either the first month's

00:10:55.740 lease is paid to you by the rentee, the one that's owning the property, or you get 10% commission.

00:11:01.480 So let's do the math. If it's $5,000 a month times 24 months, that's $120,000. 10%, still $12,000.

00:11:08.980 Or if it's $5,000 a month, they just give you the first rent, that's $5,000. Don't be the person

00:11:14.200 that's just chasing the $800,000 house, the $2 million house, the $3 million house. Go out there

00:11:18.700 and be willing to lease. Why? Because when you do so many leases and rents, you build a pipeline that when

00:11:23.980 the economy comes back up two years from now, all these people that you did leases for and rents

00:11:28.220 for, guess what? You're going to come back and help 20% of them, 30% and buy a house. Next thing

00:11:32.540 you know, three years from now, you make $500,000. Make $600,000 because you're thinking that way

00:11:37.000 on what's going to happen. So ask the question from yourself. What is beneath you? Do not be too cool

00:11:41.940 to go sell what you're not supposed to sell because the cool people don't do that. Go do a lease if you

00:11:47.920 have to, especially during times like this. Point number six, look at your expenses. Go print out all your

00:11:52.700 statements of your credit cards and go through it one by one by one. What's this $24.99 every

00:11:57.140 month I pay? Oh, cancel Spotify. Cancel Pandora. What is this one here? Why do we have all these

00:12:03.120 five different platforms? Babe, we're canceling. Which one do we like? Let's just keep Netflix.

00:12:07.440 Let's just keep Hulu. Great. We're canceling the rest of them. Awesome. What is this $22.99 a month?

00:12:12.740 What's this $200? We can't eat out anymore. We're eating out three times a week. We're going to do

00:12:16.720 once a week, okay? We're eating out three times a week. We're not going to eat out at all. Or this expense here,

00:12:22.380 why am I paying for this thing? I'm going to get rid of this car. I'm going to go get a $800 a month

00:12:26.300 lease instead of a $2200 a month lease. Look at your expenses. It's basic. You know this. I'm not

00:12:30.820 telling you anything you don't know about. But grab your statements from all your credit cards,

00:12:34.880 of your check cards, and one by one by one by one by one. Cancel whatever you're no longer using

00:12:39.600 and have a conversation with your spouse or your by yourself conversation with yourself saying,

00:12:43.920 moving forward, I'm not buying this. I'm not buying that. I'm not doing this. I'm going on a diet with

00:12:48.940 my expenses because I'm going to tighten it up. It may be three, six, 12, 24 months. But if you

00:12:53.880 got to do that, you got to do that. Point number seven. It's very simple. Serve, serve, serve. What

00:12:58.960 do you mean? Anywhere you can go serve. Your community. In the movie Gladiator, when Maximus

00:13:04.460 is asking the owner saying, hey, you used to be a gladiator. You were a slave. Now you're free.

00:13:08.840 What happened to you? He says, you win the crowd. You win your freedom. The way you win your city,

00:13:13.860 be the mayor of your city. You. Go win some votes. Go have big voter turnouts for you. Go do

00:13:20.980 whatever you can in your community to serve. Let them see your face everywhere serving. Kids,

00:13:26.500 coaching, relationships, whatever you can. Let people fall in love with you as a person because

00:13:32.240 you serve, you serve, and you serve. And people remember that. I remember that. When I see how a

00:13:38.760 coach treats my son, I go out of my way to help that person because that guy served me and my

00:13:46.040 family. I got your back when it comes down to you needing something from me. Specifically,

00:13:51.280 if you're in real estate and you want me to buy something from you, if I'm selling,

00:13:54.520 you will have a little bit more of an edge than the other guy that disappeared for two years.

00:13:58.080 Now he shows back up looking all proper saying, hey, I'm back. How's everything? I'll miss you.

00:14:01.600 Everything good? What happened last two years when it was shitty? You never called me. This guy was

00:14:05.720 right there helping me out. You were not. I kind of like this guy more than I like you. I'm going

00:14:09.000 to do business with him. That's how business works all the time, just so you know that. So serve,

00:14:12.080 serve, serve. Point number eight, it's a hard one to do, but an easy one for those who got big plans.

00:14:17.000 Think long-term. Any business you do, short-term things are going to go wrong. Marriage, short-term, 0.92

00:14:21.420 you're going to have problems. Kids, short-term, you're going to have problems. Health, short-term,

00:14:24.580 you're going to have problems. Finances, short-term, there's going to be problems. Anything you do in your

00:14:28.660 life, there's going to be problems you're going to have that's going to be short-term. But if you're thinking long-term

00:14:32.760 and you make your moves based on thinking long-term poise, it's all going to work itself out,

00:14:37.860 you make better decisions than panicking because all you're thinking about is short-term. So you

00:14:41.620 have to say, he would sit there and I would say, short-term, do I really want to sell these shirts

00:14:45.920 on the corner here? No, man, I hate doing this stuff. Long-term, it's all going to work itself out.

00:14:50.120 It's going to be a story I'm going to tell one day and people are going to laugh about it and they're not

00:14:52.780 going to believe it. Short-term, do I really want to go out there and wake up at 3.30 to go open up the club

00:14:57.240 at Bally's at 4 a.m. to make $7.25 an hour? Yeah, I don't want to do that. Long-term,

00:15:02.240 I'm going to tell this story to my kids when one day they don't want to do it. Short-term,

00:15:06.580 it's going to suck. Long-term, everything's going to work itself out. Having said that,

00:15:10.620 I've got two videos I want you to watch to help you out during a time like this. But before I do

00:15:13.700 that, look, everything to me is affirmations. And I'm a guy that constantly says, future looks bright

00:15:20.140 when nothing's going my way. So we created the future looks bright hats where on the side it says

00:15:25.500 future looks bright. Here it says future looks bright. It's a limited edition Valuetainment hats that we

00:15:31.080 created with these logos. You can get it in black with white. You can get it in all black,

00:15:35.940 white and black or red and black. We had a guy out of Michigan that ordered one for himself,

00:15:40.520 then he ordered three, then he ordered 58 for everybody at his office because everyone said,

00:15:44.640 I want a future looks bright hat. We're selling these like hotcakes. If you haven't yet bought one,

00:15:50.180 click here to order your own future looks bright hat or all four of them. And by the way,

00:15:55.140 some limited editions ones are coming out as well here soon, but go get your future looks bright hat.

00:15:58.960 The other video I want you to watch at a time like this is a video I did a few years ago titled

00:16:04.240 Customer Service versus Customer Experience. If you've never seen that, click here to watch that.

00:16:10.760 And I may even plug another one here titled The Art of Getting Referrals. If you want to get better

00:16:15.740 at getting referrals, click on this link over here as well. Take care, everybody. Bye-bye.

00:16:19.180 Bye-bye.

00:16:22.240 Bye-bye.

00:16:24.460 Bye-bye.

Valuetainment - December 01, 2022

Advice To Real Estate Professionals - How To Standout In A Bad Market

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