This is part two to my previous article titled, “The State of the Union Address for the Real Estate Market.”
Before we get to the point of this post, we’ll assume that you’re reading my blog because your a licensed real estate agent. And if so, at least some portion of your income is derived from the sale of real estate. This would lead me to the conclusion that the real estate market is very important to you and, to some extent, you’re financial well being.
So let me ask you a question…
Has the real estate market bottomed out? Watch this powerful video to find out:
The news seems to indicate that our market has hit bottom and is now slowly starting to recover. Do you believe this?
The reason why I’m asking such an important question is because I’m trying to get you to think strategically about your business. You’re answer to the market bottom question will dictate the actions you take within your business. If you feel the market has bottomed out, you’ll happily focus on selling more homes to increase the revenue to your business.
However, what would you do if the market hasn’t hit bottom yet? Would you handle things differently today? If the market hasn’t hit bottom, home sales and market values will continue to decline. As noted in the video within this post, the market may not hit bottom until sometime between 2012 and 2015. This would mean another 2 to 5 years of falling commissions.
Scary, I know.
Although this is scary, it’s critically important to think your dependence on commission income. If the market hasn’t hit bottom, you need to be proactive about finding alternate sources of income. Don’t simply sit around hoping things get better, because they may not. Take action now to start generating new income streams.
It might be helpful to simply think about new income streams as a hedge (or back-up plan) for your business. You really have nothing to lose and everything to gain by hedging against further losses to your commission income.If the market has hit bottom and things are starting to get better, these new income streams will be a bonus. However, if we haven’t hit bottom as this video suggests, you’ll be protecting yourself and your financial well being.
As you probably know, I’m going to be releasing a new program for real estate agents that will help them start property management. The goal of the program is to help you diversify your income away from home sales. Whether or not you decide to pay attention to property management or not, you should definitely take action now to create new income streams that are not dependent on home sales. I know property management isn’t for everyone, but protecting yourself is.
If you are interested in the recurring revenue available through property management, you might want to sign up for my early notification list for my new property management program. You’ll receive priority access. Sign up here:
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