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