Making Money in a Market Crash – BEST Strategy Videos by Kevin Ward
Summary
Confused about what’s really going on in the real estate market? Wondering if the housing market is going to crash?
Get most of your questions answered in this 15-minute video compilation of my best strategies and insight into the real estate market situation.
These are the BEST no-B.S. market updates and strategies you’ll ever get. Click on these links to watch the full videos of the clips in the video compilation.
https://youtu.be/U2oIpCgAaEY – HOW TO GET READY FOR THE REAL ESTATE MARKET CRASH IF YOU WANT TO GET RICH
https://youtu.be/SEK2UNLLR6Q – HOUSING MARKET UPDATE: WHERE’S THE TSUNAMI?
https://youtu.be/HdaH0IkhVTU – HOUSING MARKET FORECAST 2020: FACTORS & DOES IT MATTER
https://youtu.be/-eFiVD3zY6s – HOUSING FORECAST 2020 TIME TO SELL? BUY?
Full Transcript
What is going to happen after 2020? Are home prices going to go up or down after 2020?
Short answer: they’re going to go down. The only question is how much are they going to go down, and when are they going to start going down? Now, I’m going to also tell you another thing. And if you’re a real estate agent … most of my subscribers are real estate agents. So if you are a real estate agent, my short answer to you is: does it matter? No, it does not matter to your success.
Gary Keller said this way back 10 years ago in the global financial crisis. He wrote a book called ‘Shift,’ and the subtitle of the book was, ‘It’s not about the market. It’s about what you do.’ That was true back then and that is true today.
If you know what to do in the real estate market regardless of the real estate market, you can sell a lot of houses, help a lot of people make a lot of money. It’s not like, “Is this a bad time to be in real estate?”
It’s a great time to be a real estate agent if you know what to do.
Why? Because number one, there are always going to be people who are motivated to sell their house and people who are motivated to buy a house. There’s always going to be that. The key is you have to know where to find those opportunities. And I did a video recently on why now’s the best time to be in real estate, and I talk about where the best real estate opportunities are right now in 2020 and beyond. And then learning how to connect, learning how to find those people, and learning how to connect with them and inspire them to hire you. That is what matters.
It does not matter what is happening in the economy or the housing market. If you know how to do that, you are going to be successful in real estate. Now, why it does matter for you is your ability to advise your clients and be able to give them good information and accurate information, so that they can plan their moves and you’re actually representing them well. The long-term factor you have to keep in your mind, because you don’t want to just make money this year. You don’t want to just make money next year. You want to be making money 10 years from now. You don’t want to be broke five years from now. You want to have a long-term perspective of what’s going to happen in the economy, the housing market, and so forth.
I think the bigger factor is something that is not even being talked about right now for the most part. It’s because it’s not something that is going to hit us immediately. When you’re in pain, what do you look at? You look at where you’re hurting right now. You don’t look at the problems that are coming. The long-term factors are the U.S. dollar, and financial system, and the U.S. debt burden. And all of those things right now, our entire US financial system, is a disaster. It is a time bomb. When you just look at the amount of government spending and government debt, the federal deficit, our national debt, it is growing at +20% this year … I mean, we’re talking adding trillions and trillions of dollars to that, and there’s no money to pay for it. The only thing is paying for it is fake dollars that’s being printed by the feds.
Well, now you’re just pumping more dollars in the system. When you do that with your currency, which is called a fiat currency, which means there’s no gold or silver backing it up. It’s just paper money that over time you put more dollars in the system, it makes every dollar that’s already in the system worth less. It buys less. Now you have the possibility of massive inflation in the future.
Again, is that going to happen right away? No, not going to happen right away. But at some point, that kind of stuff happens. And all of a sudden you have the possibility of when other currencies and other governments internationally stop looking at the U.S. dollar, which is now the world reserve currency. If that ever collapses, or you start having other monetary systems around the country collapsing, it could go really, really bad really fast.
Keeping up with market changes
To keep up with market changes, and statistics, and what’s happening like that, there’s all kinds of resources that you can go to from AR statistics, to keeping current matters, to Zillow, to Inman news and on, and on, and on. However, for my gross statistics to know what’s happening in your market, in your backyard, in your home for your prospects, for your clients, for your people, you want to pay attention to the micro statistics. What is happening in your market? If somebody’s thinking about selling, how is what’s happening right now going to affect the sale of their house, and how much their house is worth? How much can they expect to sell for? How long is it going to take? And so forth. That is a micro look.
And the best source for that is your local MLS. Your local multiple-listing service. Now, there are different softwares like Brokermetrics and stuff where they can do more deep dive into it. But I’m going to share with you a very simple way that you every week can track what’s happening in your market. And if you’ll do this consistently, it will turn you into a market expert or the real estate economist in your city for all of your clients, your leads, your prospects, and so forth.
Here’s what you want to do. You want to update and keep track of 12 weekly statistics. Now, this is very, very important. One, you got to track the statistics weekly. Every single week. Not monthly. Every single week. Why? Because things are changing fast right now. And when things are changing fast, if I track the statistics monthly, it takes six months to really get six data points so that I can see a trend. In three months I only have three data points. But if I’m tracking it weekly, in three months instead of having three data points, I have 12 data points. I can watch a trend, and I can see things happening more quickly than if I’m tracking it monthly.
You gotta do it the same day every single week. You want to do it every Sunday afternoon, or every Sunday night, or every Monday, or every Friday, whenever you want to do it. But consistency is the key here. You just put in your calendar. Every week, I’m going to spend about 30 minutes going through and pulling these statistics. It will not take you that long once you get used to doing it. But it’s important that you do it every week so that you’re staying on top of what is actually happening. This is a great, consistent habit so that every week I’m staying on top of what’s happening on the market. And every week as I put it in the spreadsheet, I’m seeing the trends.
Are there more listings coming to the market now? Is inventory going up? If there’s more listings coming on, but inventory is going down or staying the same, that means what’s coming on is still selling. The average days on the market. I’m going to get to those. Let me get to the rest of the stats here. Next is your average days on the market. Next is your average list price. And then the next statistic is the average sale price, which means the actual price it sold for. Average list price, average sales price. Then the next column is the list price to sell price ratio. List price to sell price ratio, where you take the list price divided by the sales price, and that gives you a list to sell price ratio.
And then how many price reductions happened in the last week? Now, this is a symbol of how people are thinking. Are they getting desperate? Are homes not selling, and they’re getting frustrated so they’re reducing the price? How many price reductions did we have in the last week? And then the final one is how many weeks of inventory are there? These are formulas in the spreadsheet that we have built in for you, so that the list price to sell price ratio, that’s built in for you automatically in the spreadsheet that you’re going to download for that free download. And how many weeks inventory, that formula would be built in. When you put it in the other data points, it will automatically calculate that for you so that you’ll do it. And then at the very end of it, it is going to have the weekly … At the very end of the spreadsheet, it’s going to have the year to date weekly average.
Pay attention to the real economy
You have to pay attention to the real economy. And the real economy is jobs. It is not the stock market. I’ve talked to you about this in previous videos. The stock market is completely detached from the real economy. You have the stock market bubble that is fed by the federal stimulus, and then you have the real economy. Now, there is still stimulus that is coming for us. For the average Americans. But it’s not coming right now, and people are hurting. And the question is, “What’s it going to really stimulate?” Because it’s still adding to the government debt, adding to our federal deficit, and all that stuff is happening.
But the real economy is something you gotta pay attention to all the time. Sellers and buyers … There are three factors that make sellers sell, and buyers buy. Number one is income. What is the job situation? People aren’t working, they’re not making house payments, they’re not buying, they’re losing their houses. If their income is down, if their income has dropped, which it is dropping across the country … If they have dropped. Not in every industry, but in a lot of industries, they’re going to be buying smaller houses. They’re not going to be buying. They’re going to be waiting. They’re going to be more conservative and all of that.
Consumer confidence is a big factor. And right now you see consumers pretty confident. What are they doing? They’re buying and selling real estate. Then the other big factor is debt. What is happening? You got national debt, but you also have individual debt. You have student debt, you have credit card debt, you have automobile debt, you have government debt. All of that stuff goes into play because it affects the cost of living and the cost of your past, which is what debt represents. Debt is you buying something and then paying for it in the future. When you make your car payment, you’re paying for car miles you already drove. If you put your vacation on a credit card, you’re actually then paying for that credit card. Every credit card payment you’re making, you’re paying for a vacation you already took. You’re paying for food you already ate.
Get your mind ready, your money ready, and your market strategy ready.
First, get your mind ready. How do you get your mind ready? Mindset. Whenever the market starts to drop, and whether it’s led by the stock market, whatever it is that causes a trigger that all of a sudden makes people freak out and home prices start to drop, inventory starts hitting the market. When the forbearances run out in the spring of 2021, the 12 months from the beginning of the pandemic, if all of a sudden there’s a wave of inventory in the market, all of a sudden something triggers a stock market panic or a sell off … Those kinds of things happen, and they happen for sometimes inexplicable reasons.
People start freaking out. You got to be ready, and you gotta keep your head in the game. You gotta keep your head straight and know with your mindset that crisis always creates opportunity for those who are prepared. Be prepared mentally. Number two, you got to be prepared with your money. That simply means stay lean. You got to stay lean right now. You need to be stockpiling cash. You need to be selling houses right and left so that you’re making money and keeping money, so that when the market shifts you are financially secure, emotionally you’re secure, your family’s not freaking out, you’re not worried. And now you can look and go like, “Okay, where’s the opportunity?” And you’re ready to take advantage of it.
And then number three is your market strategy. What is your market strategy? What should it be right now? I’m going to tell you two things that your market strategy should consist of.
What’s your market strategy?
Number one is… Only work with highly motivated clients. If it’s a buyer, they better be ready to buy right now. And they better have a great job, great income, great credit, and money so that they can go in and buy a house and you’re not wasting your time. Number two, only work with motivated sellers. With motivated sellers, you go in and they got to be ready to move. They got to be realistic about pricing. Only work with highly motivated clients. That’s market strategy number one.
Marketing market strategy number two for you as a real estate agency is…Price your listings right. It is everything right now. Don’t get sloppy.
Associate. And that is you want to start associating and hanging out with other real estate investors. In other words, connect with some people who are already seasoned, experienced real estate investors, and get in that association of people who understand cash flow, who understand financial freedom, who understand real estate. Just the ways to create wealth with real estate. How do you do that? Very, very simple. Join a local real estate investor stink meetup group. You can go to meetup.com. Go to meetup.com and join the biggest, best real estate investing group in your city that focuses on the main kind of real estate you’re interested in.
You’ll have one that focuses on single family homes. You’ll have focused on rehabbers. Fix and flippers. You’ll have focus investment groups that focus on multi-family. Some maybe on commercial, on storage, maybe on mobile home parks. All kinds of different ways, and avenues, and niches of passive real estate investing. Find a good real estate investment meetup group in your market and start attending those meetings.
Educate yourself
Now, that is another way that you’re going to be able to educate yourself, because you’re going to find out what people are doing in your local market. What are the opportunities? Who are the players? Associate with them and learn from them. Don’t worry about competition. There is more than enough opportunity to go around, and it is a great way to associate with people to learn. Over time, you’re going to find details there. Details about how to successfully invest in real estate. You’re going to find deals there, because you’re going to have people that actually have deals that they will bring to those meetings. You can find dollars there, which means it’s actually a great source to find private money. People who have money that are interested in investing in real estate, and the relationships that you will build will help you fast track yourself on that path to creating wealth with real estate.
Collaborate
Collaborate with other people that you can get rich with, or help them get rich along the path. Now, part of that happens in associating with other real estate investors. But another part, if you are a real estate agent as an agent is you can help your clients. You can help your personal circle, the people that you know. You can help them create wealth in their own life. You can change their life, giving them the dream of financial freedom, of passive cash flow, and you can help them also invest in real estate. As you become an investor, as you learn how to do it, you can help other people do it as well and be successful as well. And understand. Do not have a scarcity mindset that goes like, “Oh, no. But if I do that, I don’t want competition.”
There is so much opportunity out there, my friend. And the way you create wealth is through collaboration, not through keeping all the eggs to yourself and go like, “I’m not going to tell anybody else what my secrets are.” There’s always more deals than you can personally handle. When you collaborate … and here’s how you do it right now. We did this at our Agent Mastery live three-day training camp last week, our virtual training camp that we had recently. It was crazy what happened as we just had all of our attendees send a text message to everybody in their personal circle. Everybody in your sphere of influence. And just say, “Hey, there’s a lot of great opportunities going to be coming the next couple of years, 12 to 24 months for real estate investing. Have you ever thought about or are you interested in possibly investing in real estate for cashflow?”
And they just sent that text message out to everybody. We had hundreds, and hundreds, and hundreds, and actually thousands of responses…we had hundreds of texts of agents sending out text messages like that. Getting thousands of responses back from people going, “Yes, I’m interested. Yes, I’m interested. Yes, I’m interested.” Now, does that mean you know what to do to help them right now? No, but it puts you on the fast track to say, “You know what? I got to get serious about educating myself, and me knowing what I’m doing so that I can help others do that.”