Yes, You Can Become a Millionaire Real Estate Agent

If Someone Else Did it, You Can Do it – Become a Millionaire in Real Estate

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Like Tony Robbins says, “you will make a decision right now whether to improve or stay stuck.”

If you’re a 21 to 36 year old realtor, you’re very smart. Most agents are approaching retirement and they’re going to leave the whole housing market to you. That’s brilliant positioning. But how’s your business development going? Are you ready to take charge and become a millionaire real estate agent?

Is there an easy way?

Everyone reaches a point in their career when they need to let go of their “shtick” and adopt a new approach — changes that will position you to go to the top. And yes, even 25 year olds have a Shtick.




Remove the Small Mindedness

Open your mind because here’s how you’re going improve your career outcome.  If you view yourself as an entrepreneur, investor, thought leader, and mover and shaker, you’ll get things moving. The real value is what spins off this train you’ll get rolling.  Your original idea may not work, but once in motion, the very best opportunities appear.

  • vastly improve your leads by leveraging digital media
  • improve your lead quality by attracting the best qualified prospects
  • explode your reach to tens of thousands of people
  • be present everywhere so you’re easy to find
  • increase variety of investors and buyers
  • open your presence in home services, mortgage, travel and other industries to access new types of business that you can refer to others
  • better capacity to capture and close any deal that comes along
  • exposure to multi-millionaire investors
  • more visibility as a credible expert
  • more time to focus on critical areas of your business
  • hiring agents to start your own office
  • help your new agents expand their networks
  • leverage their networks for results at scale

Sometimes We Have to Reinvent Ourselves

Merrily Hackett, a Vancouver real estate agent, was in danger of bankruptcy and seemingly going nowhere. But necessity made her more creative. She improved what she was weak in. Her company is now the biggest real estate agency in Canada with 25 offices and earning billions in sales.

Sales brought that (competitive spirit) out in me. I strive for excellence. I’m driven. When people say that I can’t do it, that tends to motivate me even more. — Merrily Hackett, Sutton Realty.

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Merrily Hackett, Managing Partner and General Manager of Sutton Group – West Coast Realty, created Canada’s top real estate agency in Burnaby BC . From humble beginnings to $8.6 Billion in annual sales.

Millionaire agents build their success through prospecting, constant prospecting. They sleep, but they never stop. Their marketing machine works round the clock. This marketing persistence is only one of the keys. You’re about to go to more parties, if you leverage digital to get invited in on all the sweet deals.

Feed Your Drive

If you become content with a sale every few months, you lose that driven spirit to build your presence and huge volumes of leads for yourself. Competition is intense now.

With thousands of realtors now, you may fail, if you don’t outcompete them with a smarter digital marketing strategy. Real estate marketing is reasonably challenging, but top realtors such as Merrily Hackett master it by leveraging technology, experts, and other real estate agents.

Now, it’s all about 2016. It takes time to gear up. Time for you examine the top realtors and study what they do.

 

Some of what today’s top digital realtors do:

  • try something new even if they don’t know how to do it
  • build a lot of high quality, useful content
  • create new content that is optimized for Google rankings
  • have an attractive website with full MLS listings
  • have an effective, friendly brand image
  • promote and advertise extensively – including in person events
  • be customer focused – showing you are truly working for them
  • be likable – project an image of helpfulness and positive spirit
  • be authentic and honest – build transparency
  • be trustworthy – show you believe what they believe
  • use determination – a calm, confident, no quit attitude
  • create a positive, engaged presence on Facebook and Twitter
  • use an omnichannel strategy that focuses all effort and resources
  • communicate a clear, significant, personalized, unique value proposition
  • use a drip email campaign that adds value
  • follow up on leads in a helpful, information seeking and engaging style

With these in mind, here’s a winning Realtor’s plan of Action:

  1. Target Persona: Build the best view of your target persona — you must know your target audience well. If you’re a North or West Vancouver, West Bay, Sandy Cove, Kerrisdale, or Shaunessy area realtor for instance, your ripest target is upscale, perhaps Asian, an investor, between 30 and 50. Your time should be spent studying your prospect’s lifestyle, beliefs, values, attitudes, personal expectations and what they don’t know.
  2. The Real Goal: How will you attach yourself to their dreams? How will you establish yourself as an important, helpful person in their lives? How will you get them to let go of their “preferences” and hire you?
  3. Relevant, Personalized and Persuasive Content: Before you can go big with advertising, you need highly relevant content – your content confirms to them that you believe what they believe. It also shows your expertise and commitment to hard work. Keep in mind that to them, you are your content.
  4. MLS Property Listings – your MLS listings fed through your MLS associations listing feed is published into pages that your SEO guy can optimize. One top realtor has 8 million pages indexed in Google from his site. That creates a lot of visitors and they like looking at homes.
  5. Big Promotion. Don’t spend your money until you have your content in place and you’re ready to engage them strategically via social media. And when everything’s ready, don’t get cheap with your ad budget – do Facebook, AdWords advertising, and local print news flyer sheets too. Top realtors have ad budgets well above $100k per year. Advertising works.

Powerful CRM and Lead Management Software

If you can’t afford a real estate webmasters account, there are other CRM tools you can use to help you engage your contacts and build your database of customer prospects. And, of course, you’ll have more time to personally engage with your prospects and customers, rather than struggling with digital marketing tasks.

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Shadow Flipping: Good or Bad?

Opportunities in the Booming Real Estate Industry

real-estate-salespersonIt’s a perfect storm of economic, legal, and tax conditions that’s giving the real estate market a reputation of a place to score ultimate, once in a lifetime riches. And many are clamoring in to capitalize. Investors, home sellers, and agents alike are jumping on their chance to make more money.

And shadow flipping is the hottest tactic going in Vancouver and Toronto. Whether the practice is good or bad really depends on your attitude toward capitalism and ethics.

Shadow-Flipping is a legal tactic to sell properties fast and make a quick profit. It’s officially known as a contract assignment. 

It happens this way: A home owner has made an offer of sale to buyer, and before the deal closes there’s a time period where the owner can sell it to someone else. This time period is called contract assignment.  What could be wrong with that?  Well, some might say it’s not ethical behavior. Yet it’s legal and nothing new really.

In the mid-2000s, during a condo boom, such assignments were so common that some developers put in clauses to forbid them. “The market was in a similar state to what it is now,” Darcy McLeod, president of the Real Estate Board of Greater Vancouver, said in an interview. “It was escalating quickly, and at that time, there were a lot of condos available and a lot of speculative investors were jumping in and buying condos that were expected to be completed one or two years in the future, and speculating that they could probably … sell the contract prior to completion for a profit.” from the Globe and Mail

Quick Flips involving your Real Estate Agent

The agent of the home seller can actually do a shadow flip. They can work with another buyer to purchase the property and then sell it to someone else for a much higher price. They can flip it multiple times in this way, thus increasing the home’s price.

Under real estate association rules of ethics, the realtor is supposed to be acting only in the home seller’s interest. In fact, they could be doing it all for their profit motive. In the case of a quick flip, the owner selling the property doesn’t get a cut of the ensuing profits from the flipping activity which some pundits believe they have a right too. 

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ROI from Flipping the Old Fashioned Way in the US

It comes out appearing as though the agent may be scamming their client by recommending they sell at a lower price, all the while knowing someone else they know is going to buy it for a lot more. Should the original owner get a cut of any ensuing profit? Should the terms of the contract assignment be nullified so that owners can’t sell the property while they’re waiting for another offer to close?

What’s odd about this is the owner is already agreeing with an offer, and instead is going to cut out on them and sell it to someone else. So contract assignment may encourage unethical sales activity.

So while the contract assignment is supposed to facilitate unethical behavior by the seller, it wasn’t really intended as an opportunity for the agents to make money on the side, or other parties. The fact agents are making more money may irk the public. It seems agents don’t a lot to upgrade their professional image as a group and the public is all too happy to jump on them.

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Skipping out on the Deadly Land Transfer Tax

If an assignment sale happens before the official sale closes, then no land transfer tax is owing. In Toronto, the land transfer tax is outrageous so you wouldn’t want to pay that. It’s a neat loophole allowing real estate speculation somewhat tax-free. It seems excessive taxation may increase the use of shadow flipping.

Some are suggesting Shadow Flipping or Consignment Sales is fueling higher real estate prices, however the practice is still minimal and couldn’t possibly be doing that.  It’s likely part of the hysteria around Vancouver and Toronto about high real estate prices and the desperation to control them.

Government Greed and Meddling

Shadow Flipping is an embarrassment to governments because it reveals how ridiculously over-legislated and regulated real estate is.  And they’re frustrated when can’t get the taxes. Some rumours suggest they’re out to change tax laws. Eventually, eyes come back to organizations like the Ontario Municipal Board who are desperately trying to keep everyone within the GTA region. There’s thousands of square miles of scrubland just north, west and east of Toronto that could take up the excessive demand for homes. Less demand in Toronto means less pressure to gobble up the limited parkland in the GTA. Problem solved. With new land freed up for development, current resale and new home prices would fall in Vancouver and Toronto.

“Vancouver’s geography is well documented, but in Toronto, development restrictions contributed to 2015 seeing the lowest annual number of detached home completions in 37 years (and that’s not a population-adjusted number),” said BMO Nesbitt Burns senior economist Robert Kavcic.

ombAnd while governments have no problem pulling in immigrants from all over the world, it seems it just adds fuel to the fire. What the real estate industry needs is for governments to take their hands out of everyone’s pockets and stop telling us what to do.

If the owner of a property doesn’t like the offer they’ve been given, then they shouldn’t accept. Or the seller should delete the consignment clause, with the agent to specify they will not be involved in any quick flip arrangement. The realtor association could abolish the consignment phase and demand that deals be closed very quickly, let’s say within 7 days.

However, what isn’t solved is government meddling in business. The reason prices are so high in the GTA is because there are no properties available. Governments with their Places to Grow Act, and The Green Belt Act along with the OMB have stopped development and reduced supply to fill the market.

In Vancouver, land is in extremely limited supply, and on top of that land use is restricted. So again, it’s governments who are the cause of home shortage. And home shortage equates to higher prices with people desperately bidding for a place to live.

See also:  http://www.theglobeandmail.com/news/investigations/the-real-estate-technique-fuelling-vancouvers-housing-market/article28634868/

Realtors, take a look these posts: 15 Power Prospecting Tips, Mastering Digital Marketing, and How to Improve Your Homepage.

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Real Estate Market Forecast Housing Outlook Vancouver 2016

There’s Cause for Optimism in Vancouver and the Rest of BC

bcforestgraphThe irony of it all. BC is now Canada’s economic darling and yet some are complaining (justifiably, those who can’t pay the high rents). The question is whether politicians will try do something negative to spoil this growth.

The BC economy is expected to expand nicely at 2.9% to 3.1% next year. BC exports are growing as new liberal international trade deals are increased and as our loonie keeps falling to .75US.

CMHC believes there will be 30,000 more households in BC next year, and that will support sales of rising new homes being built. Mortgage and borrowing rates will stay low, energy prices will stay low so it’s a superb business situation for BC companies who need the investment money.

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Exports to China strong. Growing trade will make Vancouver the key city in Canada in the next 5 years.

BC’s latest jobs report is pretty good too. BC is leading the country with 12,400 jobs added, while the rest of Canada lost jobs. And 2016 has a nice look to it — supporting a healthy real estate sector.

The big controversy is the influx of Chinese investment money into the BC commercial and residential real estate sector. If the Asian markets continue sliding, more rich Chinese will be seeking to park their money in Vancouver and Toronto property. This is a short term financial anomaly that won’t continue so why bother trying to kill it?

September report from RBC paints a rosy picture of BC's growing economic power
September report from RBC paints a rosy picture of BC’s growing economic power

A Better way to Manage the Influx of Billions

Chinese investing in Vancouver
Chinese buyers surfing the Net to find Canadian Properties

There are those who want to end the infusion of investment from Chinese property buyers.

Rather than making these investors use devious ways to buy property here, we could make it easier for them to buy in the Okanagan, Calgary, Edmonton, Regina and Toronto tax-free, since this investment money could go elsewhere instead. We could lose it all.

If Asian buyers can’t buy here, they will choose the US to park their cash. San Diego, Los Angeles, Seattle, Miami and New York are very attractive too. But Vancouver’s better.

A report in the Globe and Mail states:

Dan Scarrow, vice-president of corporate strategy at Macdonald Realty Ltd., estimates that 16 per cent of his firm’s 1,500 sales of detached houses, condos and townhouses within the city of Vancouver last year went to buyers from China. Of his firm’s 544 sales of detached homes in Vancouver proper last year, 150 of the purchasers were from China, or 27.5 per cent.

Another Globe and mail report suggests Chinese sales are aided by a tax loophole that allows them to avoid tax by listing the purchase in the name of a relative.  33% of all these purchases are bought under these circumstances. If this loophole is closed, it could send a shockwave through the real estate market.

Big Sales but fewer Homeowners are Selling

The G&M report also revealed that number of listings in Vancouver has dropped 27% from last year.

In Vancouver, housing starts are expected to grow from 9500 in 2015 to 9600 next year. Resale home sales will rise from $820,000 in 2015 to $835,000 in 2016. According the BC real estate association, the average price of a single detached home will rise from $885,000 currently to $920,000 next year. That’s up more than $100k from 2014.

The GVREB HPI index price for a detached property rose to nearly $1.41 million in Sept 201, up 11.5% from last September.

If the Liberals win the October 19th election, which is very likely, we could see a boost in the economy with them increasing spending.  The latest jobs report is a rise of 73k part time jobs and a drop of 62k in full time jobs.

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