A wide variety of highly impactful changes could be coming to the real estate industry this year. Here are at least seven significant changes real estate business owners, entrepreneurs, and investors should be watching…

Realtor Commissions

Recent lawsuits have found that NAR has illegally colluded to artificially keep Realtor commissions high.

This will not only cause consumers to lose faith in Realtors, but also to put more downward pressure on their commissions.

TikTok to Tinder

This may be the year when advertisers finally realize that no one is really buying things on Tiktok. Marketing is everything, but ROI on marketing and labor is more important than ever. Some may find that they get better results on in person marketing offline or Tinder than wasting time on TikTok.

Employees Vs. Contractors

Strict new criteria is being rolled out for classifying employees versus independent contractors. Many real estate businesses may have to restructure how they hire and what they have team members do.

This comes right on the brink of the world’s largest freelancer platform Upwork looking like it will implode after a string of terrible decisions that have burned their best customers.

New rules around employees and contractors mean that few will want to or can afford to risk even hiring remote workers in places like California or New York.

The Real Jump In Inflation May Be Coming

Consumer prices are still astronomically high, and growing. Though, recent and current events from new regulations to conflicts in the Middle East, and interruptions of shipping paths could create a new round of hyper inflation that is even more significant than post-COVID. If shipping and import costs are quadrupling right now, what will that mean for consumer prices in the next couple months?

The Next Phase Of Migration

We recently experienced huge shifts in companies and residents from places like NY to NJ and FL. That is now triggering a new round of migration from these states to new destinations like AL, SC, and OH. Some media outlets have also posed that the new American Dream is now to leave America for better lifestyles elsewhere abroad.

We’ve also recently seen more than one proposal to open up the use and sale of public lands to foreign entities and migrants.

Property Prices

While some see inflation continuing to lift property prices, other investment industry veterans expect $1T in debt defaults, and prices to fall by 50% or more over the next year or two.

Small price cuts are no longer cutting it. It has to be a complete no brainer with an existing exit at a steal of a deal price to attract solid offers and buyers.

The Middle Class Is Gone

Inflation and a weakening job market leave only room for the highly paid tech elite or the welfare class on food stamps to survive. Consider how you can serve these groups in order to keep business flowing this year.

The bottom line is that real estate investors, entrepreneurs, and business owners will have to do things differently, find new groups to serve with new proposals, and price deals differently this year. Yet, this all means immense opportunity for those who are flexible and get ahead of the curve.

Want to save and grow your real estate business this year?

One critical step is to avoid the business killing mistakes that are sabotaging other companies from the inside out.

We are already on the precipice of seeing many companies small and giant implode due to poor choices in implementing automation technology and artificial ‘intelligence’.

At the root of this is often a very broken belief that more automation and AI will make everything better. Internal efficiency is important. It is becoming more important as many businesses find themselves refocusing on cost cutting.

Being prudent with your finances is vital. Yet, as Seth Godin says, “you can’t cost cut your way to greatness.”

This is especially if you end up cannibalizing your own business, and alienating your best customers. Without those customers you simply don’t have a business.

We’ve seen this at giant incumbent companies in a variety of industries, and multibillion dollar startups that turned to trying to squeeze and bleed their best customers dry, only to their own demise.

The Steak ‘n Shake Issue

A road trip across, or up and down the country this season can easily reveal all of the flaws of current tech trends. As well as how to do customer experience right.

Steak ‘n Shake is an 89 year old restaurant chain. Once having over 600 locations, and pulling off a turn around that added $100,000 a day in sales.

Go into one of these long beloved diners today, and while you might find the same vintage decor, they are likely dead and empty. Gone are the waiting staff. Instead there are big do it yourself ordering screens. No cashiers either.

You might just run across a couple of other customers. Though it is likely they will be frustrated at the experience.

There is no customer service. The experience they went for no longer exists. They could have been better served using Doordash or going through a rival drive thru.

The food may still be good, but no one may ever know, because they just aren’t customer friendly anymore, at all.

In stark contrast, your next stop on your trip could be a Buc-ee's gas station.

Of course they have technology. They have cameras, modern registers, and more.

Though, first you’ll notice they are super packed with customers. Often to the tune of over 100 gas pumps in action. Inside is packed too.

So, what’s the difference maker?

At Buc-ees, you’ll see lots of human staff. You’ll see lots of additional products. They’ve been focused on adding more value and services, and humans to help. It appears to be paying off big time.

The staff also seem happy, and go out of their way to help customers. Even with seemingly small issues and requests.

The company also advertises they are paying over $250,000 a year for some job roles. So, a household with two workers, who save half their income could be millionaires in just four years, just working at a gas station.

Something To Think About…

If you’ve been thinking about how you can keep your real estate business alive, and keep growing it during this period, a road trip might be just what you need.

Go look at some new markets you can do real estate deals in. On the way you’ll quite likely find some nuggets you can use.

That may even include seeing opportunities to acquire business at deep discounts that have gotten this wrong. As well as discover new groups of buyers and investors that are thriving and are enjoying their best financial lives thanks to choosing to give more value and human service in spite of recent fads.

Remember that technology efficiency that enhances your internal operations and real net profitability can be important. Yet, it only works to save and grow your business if you are also adding value and better service to your customers, in the form of an experience they like.

Real estate investors simply cannot afford to allow themselves to fall into a scarcity or fearful mindset.

If you’ve found yourself holding back from doing more deals, or bunkering down instead of pushing to grow your investment business, this is for you…

Self-Fulfilling Mindsets

We almost always get what we think about and focus on. So, when we are focused on growth, positivity, and getting out there to do more deals, it happens.

Similarly, when businesses and investors contract, begin holding back out of fear, and fear they don’t have enough money, guess what happens? Deals don’t get done, and they run out of money.

Remember that there have been other individual investors and CEOs that have made incredible fortunes in real estate in more challenging times than these.

If you want others to keep being active in the market, then you need to lead by example.

If you are not marketing every day, making offers every week, and are not closing on deals every month, then it is only a matter of time before you do run out of money and end up bankrupt.

The only alternative is to get busy making things happen.

The Demand Is Always There

In addition to the fact that real estate wholesalers can do business just as easily in up and down markets, one of the beautiful things about being in real estate is that the demand is always there.

There will always be a need for housing. To the tune of millions of households per year. For one reason or another people will always need to move each year. Investors and companies will need to sell and buy properties each year.

Even in a depression there will be movers, those who need to downsize, divorcees splitting households, those needing to find tax breaks and new income sources.

Connecting the dots between the supply and demand may require some adjustments in your business model, and a little creativity. Yet, there are plenty of deals to do, if you’ll just step up and take advantage of them.

Do Deals Daily

As a real estate wholesaler you really don’t have to worry about what direction the market will be headed in next quarter or next year. It is irrelevant to you making money right now.

Push ahead by making a minimum of five purchase offers each day. Set goals to add at least five new end buyers to your list each day. Based upon your income goals, set figures for how many deals you will close on and exit each month and week. Then just get to it.

The 2024 real estate market is shaping up to be an exciting landscape. An environment with its fair share of both challenges and opportunities.

What should investors be watching? How can they ace the market and win this year?

The Challenges

Uncertainty: Investors and real estate professionals should have learned to become quite comfortable with uncertainty by now. There will be plenty of it this year. Forecasts are still split between growing or nose diving property prices. Use this to your advantage instead of being hampered by it.

Buy from the bearish, and sell to the bullish.

Staffing: While AI and recent mass layoffs may be creating more unemployment, high consumer living prices mean that workers need to make more per hour in order to make working make sense for them. Be prepared to work with a leaner remote team, or pay a lot more this year.

Changing Demographics: Mass financial distress and migration are significantly changing the demographics of property buyers and tenants. Real estate businesses need to stay alert to this, and be able to adjust to these shifts in supply and demand. Average credit scores will change, as will who is investing.

The Opportunities

Motivated Sellers: While many seem very optimistic about the economy, the data seems to suggest that millions of households are facing extreme financial distress. Many appear to finally be at the end of their ability to hold on to vehicles, credit cards, and homes.

In turn this will yield many opportunities to pick up properties at deep discounts, and on better terms.

Failing Competitors: For all of the above reasons many of your competitors may fail or quit this year. These are great opportunities for acquiring their business. Either in the form of buying their companies, their real estate, or absorbing their staff and customers.

Interest Rates: The Fed is expected to begin cutting interest rates in 2024. That could translate into lower borrowing costs for businesses and real estate.

Well qualified buyers could find this makes for better financial projections when taking out mortgages. While also providing more working capital to companies, and providing room for house prices to grow. It may also encourage more owners to sell and move, creating more inventory.

Of course, you don’t have to wait on the Fed for attractive real estate financing deals. Best Transaction Funding is still offering low interest rate loan deals for real estate investors right now.

These are the five most important to-do items that should be on every real estate professional and investor’s list before the new year arrives…

No matter how busy you think you are, or the ‘urgent’ things that try to distract you and steal your time, the below will make or break how you end this year, and how the entire next year will go for you.

Review The Past Year

Take a day to review the past year. What worked well and didn’t? Why?

Evaluate any gap in your goals versus achievements. Did you surpass your goals, or fall short? What caused that?

Ask what has changed in the real estate market and economy, and your business, and life over the past year, as well as your personal development?

Then take the next day to celebrate all the progress. Even if you didn’t hit all your goals.

Set New Goals For The New Year

Make them specific, BIG, and achievable.

Anchor these to your underlying why. Make them visible on a daily basis. Not just for yourself, but for your entire team.

Begin setting up the framework to be able to achieve these goals over the next 12 months. If you don’t have a template for this yet, even just start a spreadsheet with the categories of items that you need to accomplish them. Including the team and roles you need to till, the connections you need to make, the infrastructure that needs to be put in place, and the budget and funds required.

Evaluate The Outlook For The New Year

Consider what is likely to change or stay the same over the next year?

Such as new regulations, demand and supply, the cost of doing business, and more.

Ask what are the unknowns or wild cards that could be played? How can you be prepared to weather it and capitalize on these changes, so that your business is unshakeable when things happen?

Take Time Out To Reset

Recognize that this is some of the most important and profitable time you will invest in yourself and your business all year.

Whether it is a weekend or a week, the ROI on this time outside of your business will return many times that of the hours you are busy in your business the rest of the year. It will boost every other minute you spend doing things over the next 12 months.

Getaway somewhere new. Ideally you can unplug from everything for at least 48 hours.

Decompress, get inspired, gain new insights, recharge, reenergize, and regain your focus, and perspective on the big picture.

This is the most important thing we all MUST do before the new year.

Set The Table

Then take the remainder of the year to have conversations about everything you’ve contemplated, learned, and set to do for the next year.

This season is ideal for sharing many meals with important people in your life, and new people. This sets the table for the entire next year.

Spend quality time with those you love and care about, time bonding with your team, and connecting with new prospects, and potential partners. Eat together, get feedback, solicit ideas to streamline your achievements, and set up plans to take next steps with them in the new year.

The S&P Case Shiller Index reports US home prices have hit a new record high, after posting 8 straight months of consecutive gains.

Just how high are home prices in the US now? Why are they going up so much? What does it mean for property investors?

Record High Home Prices

While all real estate is local, and there seem to be many ways to calculate ‘average’, Forbes recently put the average home price in America at over $495k.

Including interest for retail buyers that use financing that means the average home can now cost homebuyers well over $1M.

The average rent households can expect to pay in their lifetimes may well be over $500k as well.

The Ideal Conditions For Real Estate Wholesalers

The mainstream media say that house prices keep going up due to a lack of homes for sale. Of course, high inflation on everything is certainly adding fuel to the fire as well.

Many industry experts, Realtors, veteran investors, and home sellers may disagree with these findings too. Some are certainly seeing transaction volume down, longer marketing times, and buyers wanting to pay less.

Recent bank data shows that there is a mountain of distressed debt growing. Including defaulting credit card payments, auto loan repos, business loan delinquencies, and construction and commercial mortgage defaults.

This signals great distress behind the scenes, with many ripe to be motivated sellers. Together with fast rising prices, and a shortage of publicly marketed units to meet demand, these are the ideal conditions for wholesaling real estate.

Connecting The Dots

There is great need out there. With millions of individuals, households, and businesses needing help. Real estate investors that can help bridge this divide stand to be very well compensated in this market.

While many motivated sellers have not listed their homes, they are out there. Many more would love to, and need to sell, if they can get a reasonable offer. Consider how to identify their distress, and reach and and connect with your purchase offers.

There is plenty of investment capital that needs to be put to work as well. In the form of transactional funding, this money can be very cheap. With current deals on jumbo sized loans coming with as low as 1% interest.

Then it is about presenting this inventory to end buyers. These may be other professional investors, movers seeking to downsize and find more affordable housing, or affluent families looking to protect their wealth in real estate. Find out where they are, and market to them.

What’s in store for real estate wholesalers in 2024?

Once again, the main theme of the year may be uncertainty. At least on the macro level. As well as especially when it comes to home prices and conventional retail home buyer activity.

However, what we do know for sure is that there are several factors influencing the economy and real estate in particular. As well as the opportunities they are likely to create.

Though it may not be until after the 2024 presidential election that real estate pros enjoy more clarity on the direction of the economy and property market, and are able to best plan, strategize and forecast their finances for the following four years.

Factors Impacting The Market For 2024

In 2024 we can expect to see the following factors influence the real estate market:

The impact of recent high inflation on living costs.

Living in a period of high interest rates.

AI and fast rising unemployment.

The ripple effects of escalating consumer distress.

Volatility in the stock market.

A high probability of new national or global crises.

Opportunities For Real Estate Wholesalers In 2024

The above is going to show in through a variety of opportunities for real estate wholesalers.

Firstly, we can expect a lot more distressed property acquisition opportunities, with highly motivated sellers who need to sell very fast.

The wealthy who are benefiting from recent trends will need to put more of their money into real estate to protect it. Both in the form of luxury residences and income properties.

Among the millions of those being negatively impacted by these trends will be many who need to get into real estate to make up for lost income. This may create a whole new pool of end buyers, partners, and potential workers for your investment business.

Take advantage of our 1% Fall interest rate deals, and get your proof of funds to start doing more deals today…

This is a fantastic time to be wholesaling real estate. Of course, that means that many others are hunting for deals too. If you believe that there is a shortage of publicly listed properties for sale, that may make it even more challenging if you’ve relied on that for deals in the past.

Here are five more ways to out maneuver and beat your competitors to the punch.

Failing Competitors

Even though the real estate investment remains strong and attractive many started folding their businesses out of fear at the beginning of COVID, then as rates hiked.

Even though they may have stopped actively investing, many have portfolios of properties they are holding. Or at least sizable databases of seller leads.

You may acquire their company, their real estate assets at a discount, or their lead lists.

Insurance Agent Referrals

Insurance agents are among the first to find out when people find themselves in a crisis. That may be a health issue, a car accident, or damage to their properties.

In a few cases their clients may get payouts that make them strong cash buyers for your properties.

In most cases insurance companies do not pay claims. If they did, they wouldn’t be in business or so big. In these scenarios policy holders may have to sell their homes fast for cash.

Lumber Company Leads

This is another untapped referral source. When trees fall on garages or homes, lumber and tree service companies get the first calls.

In other cases these referral sources can tell you when prospects are desperate for cash and are trying to sell their trees cheap. Or where there may be a property which also has a lot of value in timber rights. Money that may be used for helping to acquire or extract extra value your competitors don’t see.

The Unemployed

The AI revolution is creating levels of unemployment and interruption to income at a scale we’ve never seen before.

The vast majority of property owners cannot afford to carry their mortgages for even a month or two without a paycheck.

Depending on your contacts and access to data, you may find these sellers by tracking employers that are making layoffs, through recruiters, new credit defaults, and job wanted ads.

Be The Fastest And  Most Attractive Buyer

Have your proof of funds in hand, along with a contract, and be willing and able to close faster than your competition. Those things can mean a lot more to sellers than the top line price today.

Be sure to check out our Fall Deal with interest rates as low as 1% on loan amounts over $600k.

Want to ensure your real estate business takes off and continues to flourish in the next few months and years?

It’s amazing to already see the great disparity dividing investors, entrepreneurs, and businesses. Some are going bigger than ever with ease. They are growing into new niches, with $100M pipelines and plenty of deals and capital lined up. Others are already struggling and the fear and doubt that is creeping in could prove self-fulfilling.

Whether you are just starting out in real estate, have been riding the recent bull run but haven’t experienced adversity before, or have been at it for decades, there are both regular cyclical and major macro economic shifts happening.

In order to get ahead, and keep winning and growing, you’ve got to be intentional about it.

It may take some tweaks to your model, or a whole new approach. This is an important time to refresh your perspective and anchor it in what really matters and will make you successful.

Consider these 10 ways to prepare for success in real estate, and avoid being swept away by external changes.

Take Stock Of What Really Works

What has really been working, and has directly created your success so far. Be sure to differentiate between those fundamentals, and the frills that may have come along with it.

For example; it was probably working the extra hours and going above and beyond to take care of those customers, not the Ferrari that got you there.

Remember the progress you’ve made and what you’ve achieved so far.

Take Time Away To Think

There are so many distractions around us. Which is often what leads to making serious mistakes, and continuing to slide into failure.

Take a long weekend away. Detach from the everyday tunnel vision. Gain time to truly think and focus.

Unplug and evaluate. Then take time to see new things, and what’s really happening outside of your own little bubble. See how so many are actually struggling right now, as well as how others are doing so well that they are oblivious to this. See new ways of doing things.

Relist Your Priorities

What is really most important to you?

Above the work, is it your family, a partner, or your own health?

In real estate, which metrics and KPIs are truly most important? Hint; they are probably customer happiness, NPS score, and net profit. Everything else may be a dangerous distraction.

Learn What The Successful Are Doing

How are those that have been through these changes before handling it? Not just what they are saying or recommending, but what are they doing in their own finances and business? What have they done to survive and thrive through changes and challenges in the past?

Is it shifting investment strategy, increasing marketing efforts, or being more prudent in their offers?

Read books by real human authors, with real experience. Join mastermind groups or start your own. Hire the right team for this phase of your business, and be sure you hold onto them.

Make Sure Your Team Gets It

Most founders should be horrified by the gap between their initial vision and efforts, and how the business ends up getting run on the front lines.

Ensure your team knows the big vision, the why behind changes, their most important metrics, and the values that are there as guide rails to get there.

Discern What Will Stay The Same Vs. What Will Change

You’re probably far too behind the trend to slap the ‘AI’ label on your business and hope it helps. Now we even have AI created Coca-Cola. It’s become a cheesy and cringe worthy meme, more than a signal of value.

It can help to sail with tailwinds, yet it is being strong in the fundamentals that make a good and sustainable business. Then you build the marketing on top of that.

Refresh Your Morning Routine

It may be time to shake up your morning routine. Add new important tasks. Ensure it anchors you in a positive and successful mindset to overcome the day ahead.

Be sure to check out our Fall Funding Deals, with interest rates as low as 1%.

More and more countries are developing their own Digital Nomad Visas for the new remote workforce. How might this change alter where people live and work, the dynamics of rentals and real estate? Where might you want to travel and work from as a real estate wholesaler?

Digital Nomad Visas

Now that the workforce has changed to being remote first, more and more people are wanting to flex their new found freedom to travel and work from new places.

With other recent economic changes, many individuals are also being forced to find friendlier and more affordable places to live and work too.

According to one list, at least 58 countries now have some form of Digital Nomad Visa. A type of immigration visa which allows you to go live and work there remotely. Often for between 6 months and 3 years.

The entry requirements and fees for these visas are far lower than for traditional visas and residency programs. You normally just have to prove you make a minimum amount of income each month, or have enough money in the bank to sustain you while you are there. This can range from a few hundred dollars a month to several thousand Euros.

Countries are seeing this as a way to boost their revenues, popularity, and to attract great talent.

Why You Should Try It

While there may be some perks of wholesaling properties in your own backyard, travel is a common thread linked to success in entrepreneurship. It is also completely unnecessary to restrict yourself to only operating locally anymore. If not highly risky.

Travel can give you new perspectives on things, and great new ideas. It can broaden your network and contact database. Then you might just find somewhere you love more for the weather, culture, and which allows you a better quality of life, at far lower costs. Taxes are complicated, but there may also be benefits there too.

Where To Go

In reality, most countries will allow you in on a tourist visa, or just as a tourist without a visa for 3 to 6 months anyway. So, you don’t have to restrict yourself to countries offering Digital Nomad Visas. The US does not currently offer one.

You may want to explore:

Croatia

The Bahamas

India

The UAE

Nicaragua

Cyprus

Greece

Spain

Portugal

The Impact On Real Estate

The current direction of the economy, the AI revolution, and the availability of Digital Nomad Visas all seem to be working together for remote work to have an even bigger impact on real estate.

Even in the US, where we may not see such a visa, we can expect this trend line to impact how cities market themselves and how much of this business they will win. For landlords, it may mean more short to mid term tenants, and professional tenants. Whose needs are also different. They need furnished places with good wifi. They may pay a range of rates from dirt cheap to higher Airbnb prices. Though they are going to pay based on what they can afford in monthly rent, not vacation prices.

Consider how this may influence your real estate wholesaling business, your pricing, and where the hot places to flip houses will be next.

Then take advantage of our 1% Fall Mega Sale, with interest rates on your funding as low as just one percent. Check out the details here.

These tech mistakes are devastating businesses, and are setting many real estate companies and investors up for bankruptcy.

Be sure you aren’t copying these blunders that can cannibalize your venture.

Artificial Intelligence

Just as spell check and autocorrect tools still haven’t been perfected and create a lot of frustration some 20 years later, there is still a lot of intelligence lacking in AI tools.

It may be trendy, and we all have to adapt to the times, yet, poorly implemented this is destroying even large multi billion dollar companies rapidly.

The biggest and most devastating issue here is installing AI chatbots and doing away with human customer service. It is just alienating the best leads and long term customers and revenue sources.

Then there is ChatGPT, spinning out cheap low grade content which is no doubt burning years of work and investment in SEO rankings. It may be used for expanding your non SEO content, such as emails, as long as you manually review them word by word. Though overall, it is likely doing more harm than good to most real estate companies. Many may find it costs an enormous amount to recover from these mistakes, if they can escape Google penalties.

Automated AI based decision making tools, such as for credit, also bring more risk than most have thought through. They have not been tested in the courts yet to fully see the liability at stake.

Privacy & Data Protection

Especially when it comes to plugging in new tech tools and automation businesses are requesting more sensitive data than ever. Including IDs, facial recognition verification, and more.

These are an area of massive legal liability. Only collect what you need. Only hold onto what you need. Be sure you are in compliance with data laws, and have the legal team and finances to deal with any issues that arise from data breaches and hacks.

Not Testing From A Consumer Perspective

Do embrace new technology. Just make sure you are first testing it thoroughly from your customers’ perspective, and routinely test it again.

If it is not adding value to them, and making the experience better, it will cost you a lot more than you think the efficiency is making you.

Failing To Hire The Best Talent

The best team wins. You may not be able to afford to keep up with paying current rates of $390k to $900k a year for AI talent. Though you can, and must afford the best business development and marketing managers you can find. Those that can bring years of experience across all mediums, channels, and technologies, and help implement the right choices for your company with a refreshed and modernized strategy and plan.

Failing To Update Websites

If your website is so outdated that it burns teenagers’ and childrens’ eyes, it’s time for a makeover. Today, it’s not only about design in visuals, but also carefully crafting words that sell.

Not Using The Data That’s Available

The recipe for success is combining human expertise and hard data.

Don’t guess what is working in your business and marketing, or believe the mainstream media headlines for what’s happening in the economy or with inflation.

Use the most accurate data you can find. Make sure that it is interpreted accurately, with relevance to your industry and individual business and customers.

Not Prioritizing The Right Metrics

When you start digging into the data it is easy to get lost and distracted with so many metrics.

Focus on your NPS score and real profit.

There is a lot of confusion and misinformation out there on the current state and direction of the economy. Still, the bottom line is that selling your houses faster is still better. If not absolutely vital.

How do you do it?

Price It Right The First Time

All properties will sell if they are priced right the first time.

Do not assume that you can just lower your price later and get the same traction. It will likely be ignored by the best buyers. If it attracts anyone a second time, they are going to see you are desperate, and low ball you.

Terms

Selling and selling a house fast is always a balance of price versus terms. In this environment, terms may be even more important.

Including not only seller financing, but accepting lower earnest money deposits, and being open to negotiating other factors in the deal as well.

Incentivize Agents And Referral Partners

Make sure that you are their best paying customer or partner so they prioritize selling your properties above all others.

Further incentivize them with bonuses for selling your properties within a certain time frame.

This can be far more profitable than having to deeply discount your price later. It enables you to optimize profit, and compound your gains into more deals throughout the year, with far less risk.

Pre-Sell Your Properties

The battle is 99% won already if you’ve built a waiting list of buyers in advance.

This way you can wholesale them in hours, and already have a solid exit, before you even buy.

Be Sure That You Are Marketing To The Right Buyers Now

The market is always changing. It has certainly changed a lot this year already. That means your ideal buyers, and most likely buyers have been changing as well.

Marketing has also changed dramatically due to technology and AI.

Be sure you are keeping up and staying ahead.

This may require getting some unbiased external perspective from a professional real estate marketer. You certainly need to reevaluate your marketing strategies and target customers.

This may require embracing new strategies and channels, and revamping your offers, and site content.

The president has been making a big and very vocal push to end ‘junk fees’, and to pressure companies into providing all in upfront pricing quotes. How is this being applied in the real estate and finance space? What may it mean for investors?

The Push To End Junk Fees

A recent press conference led by the president heralded some of the brands that have reportedly been shifting away from layers of fragmented fees, to single pricing models. Also called ‘all in upfront pricing’.

There are certainly some sneaky fees and charges that should be done away with, and which really seem to be predatory and victimize those that can least afford it.

Of course, the claim that this change will save American consumers $5B in spending, may be a huge stretch. It is more likely that in many cases fees are just lumped together, and prices may even go up.

The Irony

There appears to be one huge hole and ironic exception to this plan. Which is not including taxes in these so called all in upfront price quotes.

This really destroys the whole concept. It’s an American quirk that you don’t have in other countries, and which may well have inspired all of these other junk fees and fragmented pricing, due to top down leadership examples.

Until this is fixed we won’t have real upfront pricing, all in pricing, or a good customer experience.

We’ve already seen some industries being disrupted by innovative companies that did this on their own, and actually provided less expensive options, for superior customer service and deals. Like MetroPCS in the mobile phone service space. It may be this street level peer pressure which is really most effective in bringing change, and reshaping the players in all industries.

How It’s Being Applied

Some examples of how this trend is showing up may include:

Airbnb’s shift to offering all in nightly pricing options

Banks eliminating overdraft and service fees (though not on mortgages yet)

Simplified pricing on event tickets

Elimination of renter security deposits in favor of monthly fees or higher rents

Summary

Simplified pricing is just common sense. It provides a better user experience, and a more efficient experience, with higher lead conversion potential for businesses. It can also be a fantastic way to disrupt your space, and stand out from the competition. It would just be nice if this also applied to taxes.

This is changing the competitive landscape, and you should be considering your pricing strategy and revenue streams to stay ahead of it.

Everyone is talking about AI. It’s a huge trend. One with many potential benefits, as well as risks, and plenty of controversy.

Let’s take a look at how AI is already helping to boost some real estate investment businesses, while potentially bankrupting others.

The Good

Good AI tools with some intelligence in their application may help create more efficiency for real estate investors and business owners. They might be able to help streamline tasks and your day so you have more time for the most important work, and more free time.

When curated well, AI tools can help feed your high quality, original, human generated content to prospects and potential leads online.

If your business has true, high value AI tools you’ve developed of your own, then you may find that you are able to raise substantial amounts of additional capital for your business right now.

Even if you don’t, then all of the other entrepreneurs and investors in the AI space who are making out like bandits can become great clients with lots of cash to spend with you.

The Bad

Of course, most people have already encountered negative AI experiences. Especially with customer service apps that are worse than having no chat support at all.

Others have run into AI decision engines in lending, credit, and for other approvals. Often ended up confused on why they were denied, and at the lack of actual intelligence in this so-called AI.

The Ugly

Continuing from the above, if you are trying to implement tools like this for your own customers, you may be turning away countless qualified prospects, and be turning them off with horrible customer service experiences.

Be sure to regularly walk through the process as a customer yourself. If they aren’t making things 100x better for your customer, they are likely costing you an enormous amount of business and income.

If you don’t 100% understand the algorithms being applied and can’t convey them clearly and explain how they are applied evenly to all, then you may run into serious legal issues, compliance problems, and investigations by regulators.

Today, one of the biggest dangers of AI is those being lured into using it to create content. Which often ends up being misleading and incorrect junk. This will rob you of your marketing results, ROI, and both new and existing customers. It may work in another 10 years, with a lot more human input, or for creating fun memes. It’s just not ready for business.

Then lastly, the massive shift to AI is also fueling more unemployment. Even AI leaders and CEOs are concerned about how we will need to address poverty in a world where we only need a fraction of the workers we do today. While the population is also increasing.

In the short and medium term this may lead to a lot more financial distress for consumers and homeowners. Which in turn can make for great opportunities to buy deals at discounts. Though may lead to lower renter and borrower performance.

The retail industry is cannibalizing itself. We are seeing the results daily. With more stocks plummeting, big companies losing market share, and having to conduct huge layoffs.

Yet, many small businesses still think that they should copy some of the very same tactics and campaigns that are sabotaging and bankrupting these companies.

Losing Retail Strategies Not To Copy

Rewards programs have become the downfall of many companies. For a start, they are often confusing and frustrating, and just lead to losing trust and more friction in the hard one relationship.

No one has time to sign up for more rewards or discount programs. If you went around a mall today, and gave out your number to every retailer, you may end up spend half a day of your precious time deleting and unsubscribing from all the junk mail and texts.

Which in turn means that all the effort put into these programs is wasted capital on behalf of the business. It just causes more efficiency and friction at checkout, and ruins the user experience.

Especially in the wholesaling business, if you just give people the best deals, they will keep on coming back. No need for gimmicking programs. The money you save on the junk processes can then be simply passed on in lower prices, earning more business and customer loyalty organically.

This can also apply to online sign up walls, or forced activities on social media like sharing with friends to get a discount.

Similarly, trying to force autopay on customers you finance can wreck the relationship and rob you of repeat business if it isn’t working well.

Another is popups and ads on your website. If one popup ad isn’t working, then adding ten more if only going to hurt you 10x more, rather than helping.

The Essence Of Wholesaling

The very essence of wholesaling is to buy low and sell low. Do this, and provide an efficient and streamlined process with a good user experience, and you will win plenty of customers, and they will keep on coming back, and grow the amount of properties that they are buying from you. They will want to refer others.

Save the money on wasted gimmicks and features that detract from that, so you can give better deals, and enjoy better overall net profits. Then you can also build up your budget to do more marketing and fill the top of the funnel with more prospects. Through ways that give them more value and make their lives better and more enjoyable.

Inflation still hasn’t stopped. Regardless of the official numbers being reported or restated, real inflation in the street seems like a runaway train that has to hit a wall and crash eventually.

Hiking interest rates was supposedly the way to kill off inflation. Of course, it only fueled it instead.

Interest rate increases alone haven’t been enough to achieve goals, so, we now have other things, like higher taxes, more taxes, and minimum wage hikes of as much as $33 being floated in some places.

Something Has To Break

History, and the state of many other countries tell us that inflation can go a whole lot higher. Fixed rate, long term loans can disappear altogether. Mortgage interest rates have and can go above 20%.

Things can be made so expensive that just being able to afford food and toilet paper is hard.

When you can’t walk out of the ‘dollar store’ without spending $60-70 for a few snacks or a day and a half of food, nor run into the gas station without spending that much, it’s going to be a problem. Even with a $15 an hour minimum wage, that’s a day’s worth of work. Not counting housing, insurance, or utilities. All of which are going up too.

Then, not only are interest rates going up, but so are overall loan and borrowing costs. For those that can afford homes, now even putting in a few plants is a luxury expense many won’t be able to afford.

What exactly will break, when, how, and how badly will have to be seen, but it doesn’t appear to be sustainable. At least not while maintaining the lifestyles Americans have become accustomed to over the past couple of generations.

$190B In Real Estate Debt Being Sold At Discounts

According to Bloomberg, there is $190B in real estate debt being sold off at discounts around the world.

There are likely a variety of reasons for this. Chiefly being highly motivated sellers. While physical property values may not have changed, financial positions have.

Some are liquidating because they failed to plan and prepare for moments like these and are losing money. Others can’t get any more credit to stay afloat. Some just want more cash on hand. Or the banks that have failed have seen their assets literally bought for pennies. Which can now be cashed in on.

Interestingly, most real estate pros you’ll speak to will say that housing prices are still strong. In some pockets of the country there is more demand than ever. Open houses are busy, and are attracting multiple bids. There are cash buyers who still feel rich, coming from more expensive destinations, to new ones with lower taxes, and less crime.

So, there is currently this sweet spot, with inflation tragically bankrupting many businesses and families. Which means discounts on real estate. While strong demand means there are still great profit margins on wholesaling houses swiftly.

Those that take advantage of this, will find it is what keeps them and their own finances ahead of inflation.

You are in real estate to make money, right?

Yet, the irony is that today so many businesses are making it increasingly harder for potential customers to give them money.

The slower money comes in, the higher the risk you will run into cash flow shortfalls, and miss out on the best buying opportunities.

The harder it is for buyers, renters, and investors to give you money, the lower the value of your product and service to them, and the higher the likelihood that they will just go fuel your competition with their capital instead. Today, convenience is even more important than price. Otherwise we wouldn’t have companies like Uber Eats, Doordash, and Instacart, all valued at over $20B.

Critical Mistakes Not To Copy For RE Pros & Businesses

One of the biggest problems in this industry is that so many otherwise highly intelligent real estate professionals and business owners think they ought to copy the competition, who they view as being successful.

Odds are that you don’t really know what’s working internally for others, or how broke they really are, and where they are bleeding money and customers.

Today, what is even more important than how many people are buying from you and giving you money, is how many are not, and who are going to feed your competition with more money to use against you.

Payment Options

Are you providing the payment options that work for your customers and are giving them the flexibility they need to pay you fast and consistently?

That may include Paypal, personal checks, bank wires, Cashapp, Bitcoin transfers, cash, or incorporating Buy Now Pay Later. Whatever your business model, incorporate as many as possible.

There should never be an excuse for them not to give you money.

Messy Websites & Detours

Some website operators appear to think that if one popup ad doesn’t work, it will work better if they throw up 5 or 10. More often than not, this is just going to turn off prospects instead.

You want to remove all roadblocks and streamline them purchasing from you, not add more hurdles.

Make sure your buy now button is big and obvious, and the process is simple.

Many sites now force people to sign up or register, which just sends qualified and serious prospects to the next competitor.

While list building can be useful, data is also becoming a bigger risk for businesses to collect as well.

Customer Service

Forget wasting money on expensive automated phone systems or chat bots that just drive customers crazy until they quit trying.

Whether you are renting or flipping real estate, investing $15, $33, or even $60 an hour for an on demand live phone rep to provide human service can more than pay for themselves. Especially when you consider the alternative is missing out on a $1,000 rent check, or $40,000 plus profit on a wholesale deal.

All the dots seem to be connecting for another dot com and technology company implosion. That stands to create a lot of real estate buying opportunities. Are you ready to capitalize on it?

The New Tech Bust

Recent bank failures are just the tip of the iceberg. Those liquidity issues are directly impacting the tech world. Especially those highly inflated companies that have grown fast, have weak fundamentals, and need more money. Which is the vast majority of them.

These companies that constantly run at a loss, or are reliant on fresh injections of private and public capital are going to quickly run out of gas.

They may have gotten away with a lot of bad practices and decisions while they were flush with cash can could afford to keep losing money. Yet, these issues will be greatly magnified and compounded without money to hide them.

Most notably including poor customer service, not so intelligent AI, and blatant abuse of their customers and their data and identities. Upwork and Coinbase are just two of the big and obvious recent case studies of these issues.

The Side Effects

When that bubble pops there will be even more layoffs, bankruptcies, and much higher unemployment.

While much of this is currently being hidden in the data by the shuffling of assets and paper debt between banks and other organizations, we can reasonably assume that there are already masses amounts of distressed commercial real estate and related debt hiding in the shadows.

In turn, this hits the residential sector when entrepreneurs, their employees, and local small businesses and workers depending on their revenues end up not being able to pay their bills.

Getting Ready For A Buffet Of Property Deals

There should be no shortage of deals for real estate investors this year. You will only be limited by your goals, marketing, and the financing partners you’ve chosen to align with, or not.

Still, it is wise to watch macro trends in addition to what’s happening in the immediate real estate and economic cycle. They may impact the height and localization of the ensuing rebound.

The British Empire, Rome, Machu Picchu, Tulum, and Detroit seem unlikely to ever regain their glory days. Something which may also be true of some recent financial and business hubs of super prime real estate.

Though the suburbs, tertiary cities, and towns around them, may well surpass them. Offering both better growth, and more downside stability.

These are places, where even if there is never another dot com bust, will continue flourishing, and see property values rising. It’s a win-win for real estate investors.

Following on from other recent runs on banks and stocks, last week saw Bank of America customers alone withdrawing $2.3B they had invested in stocks.

What does it mean for real estate investors?

The Big Withdrawal Has Only Just Begun

Warren Buffett recently said that he believes more bank failures are likely. Based on previous financial crises, when 1,000 or more banks and financial institutions went under, it does seem highly probable that we’ve barely seen the tip of the iceberg of this trend.

Expect more runs on banks. Expect more big sell offs in the stock market. As well as withdrawal requests from other funds, and asset classes. Including sectors like municipal bonds.

That leaves millions of people and organizations with the big dilemma of what to do with their money now.

Expect More Capital To Flow Into Real Estate

It is that time in the cycle when more capital ought to flow into real estate.

Gold is already overpriced and provides no income. Venture capital is suffering after years of pumping billions into companies with no real business model or tangible value.

Real estate makes the perfect safe haven for wealth preservation and down side protection. As well as providing new sources of income for all of those losing dividends and jobs.

It is also far better than holding cash that is devaluing daily due to ongoing hyper inflation that is only being fueled by continued Fed rate hikes.

How To Capitalize On The Shift In Markets

This is the perfect time for real estate investors like you to step up and help people on all sides of this equation, and be well compensated and boost your own finances in the process.

On one side there are many distressed sale opportunities. Some of the best value deals we’ve seen in over a decade.

On the other side there are millions in America alone that need somewhere safer and more profitable to put their money.

It’s all about being the connector to help those selling and buying, and make some very attractive profits in the middle.

Now is the time to ramp up your marketing to end buyers who are looking for new homes, fix and flip deals, and rental properties to add to their portfolios.

There are enormous amounts of money out there searching for a home. So, it’s all about stepping up and making sure they know you are there to help.

Whether you believe we are just experiencing a handful of poorly managed banks failing, or the beginning of an epic new economic slump in which 1,000 or more banks will fall, there is no question that there are financial challenges out there.

Most won’t make it through these times. So, how can you embrace the great leadership traits that helped others through previous crises, and may be just what you need to grow through it. Then come out the other side as a market leader?

Stay Objective, Not Emotional

Billions of dollars are being spent to tug on your emotions and to create fear. It’s what keeps the media industry alive. As well as the bulk of the wealth in market manipulators’ accounts.

Stay objective. Think forward. Do adapt, but don’t make knee jerk reactions that will sabotage your career and venture.

See Opportunities Not Problems

Even as a newer business owner or independent professional you’ve probably figured out that your role is pretty much just championing an endless barrage of challenges.

There will be plenty of challenges ahead. Do have a healthy respect for the threats they can bring. Though choose to see them as opportunities to innovate and be creative with solutions.

Maintaining this pragmatic optimism will make all the difference in your short and long term success.

Know Your Cycles & Real Data

It’s sad to see so many investors, property owners, and businesses becoming victims of misinformation.

If you know your business and market cycles, then what’s happening now, and what will happen next is very predictable. Meaning that you can plan and march through it successfully.

However, you also must really know the numbers in your market, and your historical data. Be very, very cautious about trusting stats in media headlines, or averages proclaimed by most media pundits.

Even data from sources like NAR can be revised years later.

If you don’t have access to real data, and a pulse on the street, consult others who do.

Surround Yourself With The Best People You Can

The most successful and experienced entrepreneurs and CEOs will tell you that it is all about the people.

The best team will always win. You can hack decades of knowledge and experience and avoid all the mistakes by leveraging better talent too.

This applies to your department heads, regular employees, advisors, and strategic business partners.

Don’t just recruit and hire them either. Share the vision, and then get out of the way so they can do their best work.

Serve Don’t Take

The best leaders are servant leaders. They are not just trying to take and extract value or drive people by force. They have a mindset of being there to serve others.

That includes serving your team and partners, in enabling them to thrive in their positions.

As well as asking how you can serve more customers, better, and provide more value to them.

Understand Your Number One Job As A Business Leader

Your number one job is really to ensure that your venture does not run out of financial fuel. Find new sources of financial leverage, and working capital to keep the machine moving.