RECESSION 2022 Are You Ready? Will Your Business Survive? Will You Profit by Solving Peoples Issues?

Video Closed Captioning:

good morning good afternoon good evening

folks michael’s uber one retail at a

time back with a real estate investor

real estate agent top one percent and tv

star laura morby how you doing laura i’m

doing great how are you doing i’m doing

very well so one of the things that i

think is coming

uh is a recession right i think the

business cycle is real right you have

expansions you have contractions you

have all these things uh i think you

know first and foremost the recession is

coming the argument would be when

i think we may have it next year if not

next year certainly the year after but

what i wanted to do with you because

we’ve both been doing real estate for

about 20 years or so is

talk about real estate investing real

estate owner ox all of that

in a recession because i think a lot of

people would be surprised what happens

in real estate you know when there’s a

recession going on so when i say

recession in real estate what does your

kind of you know real estate agent mind

think of

this is probably really unhealthy and

i’ve said this and i’ve upset a lot of

people so if anyone’s watching this and

gets upset i’m so sorry but i think

money

yeah like i think

bags and bags of money

just checks and checks and the reason

why is because that’s all i did during

the recession is i worked for investors

and i saw how much opportunity

the recession actually brings

and i work for one of the smartest guys

here in the valley

and i talked about him a few times again

he’s my age which is hilarious so it’s

like i’m watching him do this

you know what is what is that is that

close to 15 years ago now yeah

and i’m watching him do this 15 years

ago and i’m like i don’t know my butt

from a hole in the ground and here you

are you’ve somehow

pivoted

from being just a retail real estate

agent

and now you’re just raking in the cash

because of his

just some people’s brains i’ll tell you

what but he recognized the opportunity

and he was able to turn

lemons

true lemons into lemonade

and he’s one of the most um

one of the people that

he’s the reason why i say you have to be

a chameleon in real estate because he

can

change his strategy

and figure out like what people are

doing and how they’re making money and

he

will always make money his whole life

i’m not worried about him in the

slightest because he was able to pivot

and change

and he was able to buy from a trustee

sale

um start doing short sales um

he started his own trusty sale bidding

company he was able to do

he had so many flips going on

to the point where people also were

afraid to flip and so people people were

coming to him with their money like

take my money

yeah and i’ll take a percentage of what

you’re making just because like somehow

you figured it out and

so yeah i just there that was probably

one of the busiest times in my life

and so what does that tell you that

there’s opportunity

yeah i mean i think we need to peel this

back right because again if you’re a

real estate agent real estate broker

flip or wholesaler today right not a

recession today

today the easiest thing to do is sell

something

yeah right you get it under contract you

list it you sell it you make some money

it was obviously easier in april than

december but still relatively easy yeah

yeah still relatively easy uh if you go

into a recession first thing that’s

going to go backwards is your buyers

right buyers get scared they don’t want

to buy it yeah they don’t want to buy

right so the retail buyer retreats

right gone

your list of 15 goes to two or something

like that right

hi corbin

[Laughter]

so again right so you’re ready to buy

because again i’ve been watching the

consumer for almost 30 years they are

very easy to predict when it’s good time

they’re buying buying buying they’re

competing right and then recession they

get scared they retreat and that a

recession that you know that i i use

this joke all the time you know the

difference between a recession and a

depression

recession is when your neighbor is

unemployed a depression is when you’re

unemployed

right

in a recession if your neighbor is

unemployed your job you’re still paying

your bills you’re just retreating you’re

saving a little bit more you’re not

doing the fancy vacation or buying the

third car because you’re nervous

yes but your neighbor right they’re

looking for a job maybe they have to

move out of state maybe they got to move

back with family

that’s kind of the difference between

research and depression but what happens

is retail buyers retreat

then what will happen is time goes by

because the beauty about real estate is

not stocks it doesn’t happen overnight

you have days weeks months where you

really start to figure out who needs to

sell right and when you have someone

that needs to sell that is the uh that

is the thing called a motivated seller

yep and when you are a truly motivated

seller you want out

out you just gone that’s why if you have

equity you’re willing to take a discount

it’s if you can’t that’s why sub two

will be amazing i think in the next

recession because you you just went out

because we want that cheap 30-year debt

which most people have today so yeah i

think i think it is opportunity bags of

money um but you do have to pivot right

as an agent

your job’s gonna get harder because

they’re just not as many buyers no and

probably be more sellers yep so then you

have to go get investors you have to

figure out which listing really is

motivated which is not

first thing i want to tell real estate

agents in the next recession your job is

going to get harder but if you pivot or

become a chameleon you can be the person

who solves problems would you think

that’s true 100

i i was also super emotionally fulfilled

during that time of my life too because

i was a part of the solution i was

actually helping real life people that

were going through just absolutely

terrible things

and so it was incredibly emotionally

fulfilling as well

and that’s one of the things is like

sometimes i’ll talk to people and

they’re like oh yeah i was a realtor um

yeah i just you know i just got out of

the business in 2008 i just didn’t see

the point in it

and then you also see a lot of you know

realtors who are living in

million dollar houses and driving you

know bmw m6’s get those repossessed the

house closed on and they’re back living

in mom and dad’s basement same thing for

loan officers because again

they were making so much money prior to

it happening and then they refused to

pivot

and they were like well

my old

business model isn’t working i’m out

yeah i’m gonna go back to uh nine to

five i’m gonna

you know i’m done i don’t even wanna pay

for my license anymore yeah meanwhile

like

i

i just i was just trying to survive so i

had no choice you know i was single i

had a small child i had to figure it out

and i figured it out and so yes you’re

right like you you’re a part of the

solution

you’re solving people’s problems and so

there’s emotional equity you get in that

and then also

you are

um

like think about

the light years ahead of education i got

during that time

because all the different things i was

forced to learn and be a part of

that most retail real estate agents

still don’t understand

because they just don’t want to learn it

yeah because the real estate cycles are

there are cycles they come and go

uh and again i i always talk about

people having 10-year memories and a

12-year cycle so the last two years

we’re repeating the mistakes of the past

which again go watch video one

yeah happening today in multi-family um

but yeah i mean short sales those things

if those are all things deed and lou all

you know buying at the courthouse steps

all this stuff will come back into vogue

at different levels

but i would tell you yeah

again real estate age real estate

brokers money lenders you got to realize

your job will be different in a

recession yeah and if you do pivot and

you become part of the solution it is

actually very rewarding it’s harder work

harder work you’ll probably make a

little bit less money yes um but you

will i

i can’t tell you how many people think

that thanked me last time when i took

over their loan or i bought their house

from them yeah it’s like thank you now i

can move to

x i can leave this

bad scene behind me and move on it was

um

yeah you get some of the most um

you know rewarding things helping

somebody close a chapter in their life i

completely agree and i don’t i mean

other than

doing home investors that we buy uplay

houses i don’t think that i felt that

emotional equity

in my career since then and so like

there is a part of me that

i mean obviously it’s gonna happen when

i don’t know maybe next year

but i’m um

looking forward to being able to

um

have

an emotional connection with people and

actually

feel like i’m making a difference again

so

you make a difference when you help

someone buy a house i’m not saying you

don’t i’m not saying it’s not exciting

it’s just it’s a different depth it’s a

diff it’s a completely different thing

and so um

i’m i am um

excited to be a part of that again and

i’m also excited to make a lot of money

i feel like i

i mean it’s never going to be the exact

same it’s not like but i feel like i

have

you know some tools in my tool belt

that i can pull back out and dust off

and make some good money again so yeah

yeah the other thing i want to talk

about because again a recession is

coming not only real estate agents

mortgage brokers have to step up and

change and do a chameleon but i want to

i also want to admit that a lot of

wholesalers and flippers are going to go

bust just like last time if they don’t

change they don’t buy rate they don’t

slow down they don’t manage their cost

of capital get longer debt i mean

i saw plenty of flippers

again go bye-bye in the last crisis yeah

i mean that’s what i mean even jamil

um we’ll talk about what happened to him

last time

he was just he was doing great

as an investor as a flipper as a

wholesaler

and he lost everything he was

over leveraged he had bad buys that

assumed appreciation and he even lost

his parents house he’ll tell you about

that like that was extremely painful for

him but i think that the difference is

is like think about who jamil is now

and it’s because he didn’t give up and

so i think that’s another thing too is

like who am i now it’s because i didn’t

give up i wasn’t listening to people

being like why why are you doing real

estate right now go do anything else

this is the worst time and i’m like or

it’s the best time

that was my attitude so if you want to

learn and you want to keep going if you

want to pick yourself up and dig out of

that hole

then do it but there you’re right there

a lot of there’ll be a lot of people who

will fail to the point where they’re

they’re just out

but then just remember

that a lot of us have failed

and if you stick with it

and you learn

and you change

and guess what you know that will never

happen

again oh yeah that’s that’s why i wanted

to close on this is if you’re out there

looking for a mentor or someone

uh i strongly suggest you find somebody

that was doing it pre and post crash

whether they lost stuff or not because

they’ve set their business up entirely

different if you’re following somebody

that’s been doing this for four years

good luck

uh because they are very likely to

repeat the mistakes of last time which

is over leverage bad structure short

term

it’s uh yeah be careful be careful folks

because a recession is coming the only

argument is when yeah yep

if you lose some money

i mean i know people get mad too

but like please keep going because there

is there is 100 money to be made during

your recession absolutely and it’s funny

too because like people

got out and then came back in once it

started to go well but i also know

people who are making really good money

during their recession and just totally

have put their life on pause

as things are good they’re not even

playing the game right now and they’re

just waiting for another crash because

they just want to do it again

and think about this decade of time that

they’ve missed out on opportunity too so

again it’s just about pivoting it’s

about being a chameleon it’s about

learning new things and it’s about not

giving up i mean we’re all going to lose

money at some point

hopefully not a lot hopefully not

everything but you know i mean there are

people that still exist that are

successful now

almost 15 years later who lost

everything including their parents house

yeah very very cool laura this is a

great conversation this sunday morning

how would you like people to reach out

and follow you um instagram would be

great my instagram’s alarm harvey was

faces thank you very much have a

wonderful day thank you

 

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