Winning in real estate is all about finding motivated sellers and inspiring them to hire you.
In 2021, the big opportunity will be homeowners coming out of forbearance.
But RIGHT NOW, here are the TOP 5 OPPORTUNITIES (motivated sellers) for realtors:
5. Non-owner occupied homes. Ask your title rep for software (e.g. fastpeoplesearch.com, Remine.com) to help you get information on the following::
Vacation Homes. 2nd & 3rd homes.
Vacation Rentals (AirBnB’s)
Investors who own rental property. They bought low, will now sell high.
4. Personal Circle. These are people you already know, like, and trust you. Ask them who they know is looking to buy or sell real estate.
3. Motivated FSBOs. They need the best agent that can get them the best result because they realize how hard it is now to deal with buyers.
2. Motivated Expired Listings
1. Downsizers (including Luxury homes)
To help you, I’m giving you the Agent Power Pack for FREE. It’s your complete agent success toolkit that has our best core scripts & training material that have made agents 6 and 7-figure incomes. Download it here for free.
Hi there. It’s Kevin Ward, the founder of YESMasters Real Estate Success Training. Helping you get more yeses and more successes in your business and in your life.
And I have a very special video today where I am going to talk about what is happening in the real estate market. What is going to happen in the real estate market, and where are the top five opportunities for real estate agents.
Now in the end of 2020, as I’m recording this video and going into 2021, and even beyond that, where are the best opportunities coming? Now, when I’m talking about the best opportunities, where’s the best opportunities for you to make money? For you to find transactions and get deals? So to give you a little framework of this first, if you like the video, make sure you give it a thumbs up and comment if you have any questions and thoughts and subscribe to the channel, if it is your first time here. First consideration is, sellers are the magic.
If you want to win in real estate, it is purely about finding motivated sellers. Buyers are great, but buyers come for free when you have great listings and the way you get great listings is finding motivated sellers and inspiring them to hire you and then listing their properties and selling them and buyers come for free. So when it comes to lead generation, all of that I’m talking about is lead generation strategies for finding the best motivated sellers. And also to tell you at the end of the video, I’m going to give you a special offer for something I’ve never given for called the Agent Power Pack. I’ll tell you about that in just a moment. First, let’s talk about where are the best opportunities for realtors right now? Now before we get to the top five, I’m going to give you first, the Coming Soon. Great opportunity for real estate agents.
Hot Upcoming Opportunity: Homeowners Coming Out of Forbearance
So coming soon, where is the big opportunity going to be for real estate agents who want to go out and make a lot of money? And this is going to be in 2021. Okay? In ’21, the big opportunity is going to be home owners who are coming out of their forbearance on their mortgage. Coming out of mortgage forbearance, where starting back with the coronavirus locked down, back in the spring of this year, 2020 coming into the spring of 2021. That 12 months of forbearance that started out with the original six months.
But so many of the people extended that because you got an almost automatic extension if you had forbearance and we’re talking millions and millions of homeowners in America, whose mortgages right now are in forbearance. And the number of serious delinquencies on mortgage is astronomical. Now there’s been extremely low inventory, which has kept the market hopping and kept prices going up throughout the last several months.
But as you move into 2021, when all of this 12 months of mortgage forbearance hits the end, you’re going to have tons of people who are going to be going like, “Okay, we’re going to have to do something.” Either you gotta start making your house payment again, or you’re selling.
Now, let’s say that 50% of the millions of people that are in forbearance are going to be able to make their payments and continue to pay for their mortgage and keep their home great. Awesome for them. But there’s going to be a lot of people that simply aren’t and all of those people, my friend are going to be selling their houses. Now, a lot of them will be going into default because they aren’t able to make payments. So you have a lot of people with notices of defaults. However, early on, unless we start seeing a major housing collapse in prices start really dropping if we have a ton of inventory come on the market.
The good news is for them, they still have equity. Most of them are still going to have equity. So for you, that’s great because you’re going to be able to do a regular standard sale. And when you know how to do it, this is going to be one of the hottest things in 2021 and possibly beyond that. But this is coming soon. Right now, there are very few opportunities here because these people aren’t making their mortgage payments. There’s no reason for them to sell right now. They’re not going to move during the holidays, they’re going to wait until the spring. At the end of that 12 months coming up in April, May of 2021 everything is going to start changing in the housing market because you’re going to see a ton of this inventory start coming to market.
And they’re calling this right now, the Zombie Foreclosures. It is a shadow inventory of homes that are going to be selling. They’re not having to sell right now.
THE TOP 5 OPPORTUNITIES FOR REALTORS NOW
5. Non Owner-Occupied Homes
Number five of the top five opportunities for realtors right now, number five are non owner occupied homes. Where are the best places to find motivated sellers and listings right now, and going into 202? Number five are non-owner occupied homes. And I’m talking about several different types of non-owner occupied homes.
First is vacation homes. People that have bought second or third homes and they bought them through the economic expansion and a lot of these people… And there’s going to be a theme here. A lot of these people are baby boomers. They are empty nesters. They are now in their late 50s, 60s, and 70s. And they’ve enjoyed the good years, they’ve enjoyed the good economy, they’ve enjoyed prices appreciating on their homes.
And they look around and go like, “Okay, we’re at the top of the housing market, it’s time to get out.” And they are going to be selling. Now, there’s been a lot of people in 2020 buying vacation homes. Who is that? People that have made a lot of money. And this has been one of those situations where a lot of people are making less money, a lot of the economy is in the toilet and people that are unemployed, people that are underemployed and making less money, but there’s others that have continued to make money. And with the stimulus and all that they’ve done fairly well. And they’ve still kept buying stuff with the low interest rates and all that. However, a lot of people are going to be selling their second and third homes, or live in the city.
They’re going to be selling their primary residence in the city and moving out permanently to their vacation home or to their secondary home that is going to become their retirement home. But if you find these owners whether they’re selling this property or they’re selling their property back in town, there’s still great opportunities for business.
As another type of non-owner occupied home are vacation rentals, Airbnbs. In a lot of areas, those properties have not been making good money for the homeowners. They bought them with the belief that they were going to be able to do a vacation rental, which gives you a premium on rental stream compared to a traditional long-term lease. And in a lot of cities, a lot of markets across the country, they’ve simply been not able to get the revenue from that. And they are right now selling, and they’re going to continue to sell. Not everyone, but there’s going to be tremendous opportunity with vacation rentals as well. Just flat out investors who own rental property.
There’s tons of them that are selling now, and that are going to be selling. Now we’re talking about typically small investors, small time investors who own a rental house or a couple of rental properties or three or four rental properties and they are ready to sell. Now, here’s the reason why they are going to be selling.
One, the majority of investors are baby boomers. They are in their late 50s, 60s and 70s, again, just like the people that own vacation homes. And they bought these investment properties back in the early 2,000s or in the recovery after the housing crash back in 2008, 2009. They’ve enjoyed the ride they bought low, and now they are looking to sell high. Plus there is a massive amount of evictions potentially coming because all of the people that have not been paying rent.
In fact, I’ve got a Wall Street Journal here from October 28th from this last week. It says “Mounting unpaid rent…” And this is just from page one of the Wall Street Journal. “Mounting unpaid rent risks, a US tidal wave of evictions.” Now what’s happening is you got a ton of landlords are going to be having to evict people. They haven’t been able to evict a lot of people even those who haven’t been paying the rent because there has been this eviction moratorium.
Well, the problem with that is they’ve been bleeding money. They’re still having to make their mortgage payments, they’re still having to pay insurance, taxes, property taxes on the property. And they’ve been making no money on rent if their tenants haven’t been paying and they’re stuck with those tenants because they can’t kick them out. Well, now you have these evictions happening.
You can’t sell a rental property practically, you can’t sell it while you’ve got a tenant in there not paying rent. Who’s going to buy it? Right? Well, now once they’re able to evict them, they’re going to get them out. And they’re going to be like, “I’m out of this game, I’ve lost money this year.” And I’m like, “I’m ready to get out.” And there’s going to be a ton of them selling now. There’s not all of them going to be selling. So don’t say, “Well, I talked to some and they’re not selling.” Okay, that’s true. But there’s going to be a ton of them that are. And just like anything, it’s just like, where are the opportunities? You got to go out and find them.
Okay. And then finally, another non-owner occupied home opportunity is just vacant houses.
Now, how do you find vacant houses? They have nobody living in them. Okay. And they look vacant. But the easy way you find all of these non-owner occupied homes is simply as real estate agents. You have resources to be able to find this. And you’re looking for non-owner occupied homes. And it shows up on the tax record where the property address and the tax billing address do not match. And you can talk to your title company. A lot of times your title reps have resources. There are software out there. There are software companies out there that have this kind of thing like Remine is a real estate data company that can help you find these kinds of things. You subscribe to these services and you can pull up and find your area non-owner occupied homes that you can either mail them.
You can find their phone numbers with things like DataFinder.com or FastPeopleSearch.com. And you can go find the phone numbers, the contact information for these people, or you can use direct mail. All right. So number five is non-owner occupied homes. That was the longest one, the rest of these go faster. The number four best source for real estate opportunities right now. And it may be number one, but I’m putting it as number four is your personal circle. It’s the people that you already know. You simply have to ask them for business. I have other videos here that you can find on how to connect with the people that you know, and ask for business.
4. Personal Circle
And I’ve got to tell you on my phone, I got a message today from one of my inner circle coaching members. And they sent me a picture, okay? And this picture right here… Let me see if I can do it so you can see it. This picture right here is a picture of commission checks lined up, and was just showing the dollar amounts. Okay? They have the commission checks that they got at the end of October 2020 for their best month ever. Okay? Over $100,000 in commission that they made. This is their third month to have over $100,000 in GCI closing pending. This is their first month to have over $100,000 actually closed checks. So they put in the bank over $100,000 in one month. And almost every single one of those closings came from their personal circle. It came from relationships they already had, and these people are fairly new in the industry. What have they done different?
They simply talked to their people. All the people that they knew, they simply call them, ask them for help, ask them who they know that’s looking to buy or sell. And they literally call them and say, “Hey, when you do know somebody who’s looking to buy or sell, who’s your go-to agent?” And they go like, “Well, I guess you are.” And so they’ve been getting all this business from this. They prospect every day they do the work, but they have been making a ton of money from their personal circle. People that know you, that like you, that trust you, they will use you and they will refer you if you ask and talk to them. Again, I’ve got other videos here on my YouTube channel, where we talk more about how to build those relationships and so forth.
3. Motivated For Sale By Owners.
Okay? Now not unmotivated For Sale By Owners. They’re never a good deal, but the people that actually need to sell For Sale By Owners are super awesome. In some markets there’s tons of them in others there’s not that many. But the ones that are there, if they’re motivated to sell, here’s what they’re discovering. It’s harder to sell now than it used to be. They can still sell it themselves. But if you’re a professional agent, if you’re trained the way I trained my real estate agents, you can actually help them get a better result so they will hire you. And one of the things that has changed is it is harder now to get buyers closed than it was before because lending requirements have tightened up. So it is harder for a buyer to get a deal closed. And let’s face it. If a For Sale by Owner has a buyer come to them, these typically are not the smartest, most qualified buyers on the planet because if they were, they’d be working with a real estate agent because they don’t have to pay a commission and they get all the help.
And they’re able to look at all the properties on the market. They come to For Sale by Owner typically a lower quality buyer. They don’t know how to get a loan closed and because lending requirements have tightened up, it is harder than ever for a For Sale by Owner to get the buyer, to actually be able to close on the deal and get the loan. And so they end up wasting all this time and they get their heartbroken and then they hire a realtor. And you don’t have to wait until they go through all that pain if you know what you’re doing. So you can prospect For Sale By Owners, great opportunity. And they are looking for the best agent that can help them get the best result.
2. Motivated Expired Listings
Number two, motivated expired listings. Look, they hired an agent before that did not get the job done. And in this market for most of you and most of your markets, it’s hard not to sell a house here. So when they have their house expire, they are unhappy and they are looking for an answer. If they’re motivated, they’re moving, they need an agent that can help them. You be that agent. How do you get there? You talk to them, you reach out to them. And I can just tell you story after story, after story, even during the time of COVID where expires will still talk to you and there’s less competition than there’s been and they will hire you. And it is a great opportunity for you.
And then the number one opportunity going forward… And this is a long-term play. This is not just right now, but this is coming into 2021, 2022, ’23, ’24, ’25. This is going to be a long-term play for a long time. And that is downsizers. As I mentioned earlier, when it came to non-owner occupied homes, the majority of non-owner occupied homes in America are baby boomers. They’re in their late 50s, 56 and older. So their late 50s or 60s or 70s. And they’re thinking about downsizing. Here they’re thinking about getting out of all the properties that they own because you sell high, but here you’ve got downsizers. These are the people that are now in their 60s, they raised their family. They’re empty nesters and they’ve kept their property because home prices have continued to go up over the last 10 years.
Prices have been good and their interest rates are low, but now they look around and they’re going like, “You know what? What goes up must come down.” They remember 2008, the housing market collapse. And they go like, “You know what? Maybe it’s time to sell.” And they’re going to take their 3,500 square foot home that they raised their family and they’re going to sell it. And they’re going to buy a smaller home. Right here my friend is a phenomenal opportunity for you to find great motivated sellers. You reach out to them, you connect with your title company and other software we train through our coaching. You can find the sources that can find you properties of homeowners that have 3000 square foot and larger homes. They’ve lived in their house for five, 10 years or more. You can even a lot of times look for demographics, age group, and all of that.
But then you reach out to those people. You can do it with direct mail, you can do a phone calling and all of that. And you’re building relationships with these people, positioning yourself and when they’re ready to move you help them. Now here’s the thing that is great about downsizers. Number one, because they’re older, they have the best credit in America. People over 50 have much higher credit in general. When you look at FICO scores by age range, those over 50 have much higher credit scores in people under 50 on average. So they have good credit. Number two, they have great equity because they bought this home, they’ve owned it for years, they have great equity and it’s appreciated over time. So they have great equity. So for them selling is a piece of cake because they have great equity.
They have great credit, which I’m going to get to in a second. And these are the nicer homes. These are the great homes that include your luxury market. These are the homes that are fun to sell because they’re higher priced.
But the final thing that makes them so great is that they are used to being homeowners. So they’re not going to sell and rent. They’re going to sell their big house and they’re going to go buy another house. And because it’s not their first rodeo, they tend to be easier to work with because they’re used to doing the real estate process. They’ve done it before, so they’re not as emotional as a first time home buyer or a first-time home seller. They’re like, “You know what? We’re ready to get this done.” So they are super great clients to work with.
So they have good credit, they have good equity. So when they sell, they want to buy because they have a homeowner mindset. So they’re going to buy another house. So you get a double dip, you get to help them sell their house and you make money and you can help them buy another house and you make money. And even better than that, as you build that clientele, you build those relationships. They now go into your personal circle and guess who they know? They know other people, their age in their situation who also have nice big houses and they’re going to be selling as well. And my friend over the next 10 years, almost every single baby boomer that owns a 3000 square foot or larger house they’re going to be selling. Okay? It is just the way it is going to be because they’re empty nesters and they don’t need that house and they’re going to be ready to make that move.
Now they may not be ready today, like a For Sale by Owner and Expired, who is ready right now and today. These home people coming out of forbearance who are going to be ready to sell right now and have to sell. These people may not be ready that right away, but you build that relationship. You build that relationship and when the time comes, these are going to be a great source of business for you. And again, they’re also going to be the same people that own these other properties. So there is a lot of stuff.
Now, here’s what I’m going to do to help you today. So we’ve been looking at what’s happening here. What can we do to help agents? So I’m going to offer to you today a special offer is our new YesMasters Agent Power Pack.
And what we have done is we have put together the best core scripts that I’ve trained and used for years through with my YesMasters training in my bestselling Book of Yes. If you don’t have a copy of The Book of Yes, here I’m going to give you for free…
Today you can get the YesMasters Agent Power Pack. And let me tell you what’s in it. The Agent Power Pack, first it has all the core scripts for lead generation, lead follow-up, pre-qualifying and my complete YesMasters listing presentation. So it has For Sale By Owners, expireds scripts. It has the lead follow-up scripts, it has the pre-qualifying sheet of pre-qualifying sellers so you know all the situations before you get on a listing presentation. So you can get the listing for the first time and it has my complete YesMasters listing presentation that I’ve used that made me millions of dollars as a real estate agent and has helped many of my real estate agents make hundreds of thousands and millions of dollars themselves.
And because I want to make sure pricing is going to become more and more and more important when you take a listing. I’ve given you my complete CMA Cheat Sheet, which is how to do a CMA and my YesMasters real estate success blueprint, which is basically the complete framework of everything I trained our top producing real estate agents who have used this to make millions and millions of dollars. And I’m going to give all of that to you today. All you gotta do is go to Mastery.YesMasters.com/PowerPack. Download your free copy of the YesMasters Agent Power Pack.
This is only going to be available for a limited time. So make sure that you go and get that right now. Go to Mastery.YesMasters.com/PowerPack. And again, if you liked the video, make sure you give it a thumbs up. Subscribe to the channel if it is your first time here. Go look for the opportunities, take advantage of them. I’ll see you on the next video.