DGS 265: The Recent Economic Shifts and Property Management
Description
There was a recent event where the stock market plunged. Some are speculating about an impending recession. We’re seeing the real estate market downturn in real time…
In today’s episode of the #DoorGrowShow, property management growth experts Jason and Sarah Hull talk about the impact the current real estate market and economic downturn will have on property management businesses.
You’ll Learn
[02:10 ] The current state of the economy
[10:00 ] The real estate market and leasing challenges
[21:07 ] Having empathy in property management
[25:03 ] Real estate investing in a recession
Tweetables
“In every single recession, new millionaires are made and this is an opportunity for that to happen.”
“Those that have built that ark so to speak, like Noah did, are prepared for the storm. They're ready. They're just going to float through it instead of drown.”
“We always have to remember that property management is a relationship business.”
“One of the most magical, impactful ingredients that you wouldn't think has an impact in getting people to move or do things or to take action is empathy.”
Resources
Transcript
[00:00:00 ] Sarah: If you want to be in doom and gloom and "the sky's falling and I'm never going to make any money" then you're absolutely right. But if you want to look at the opportunity that is staring you in the face and say, "what can I do with this and how can I capitalize on this?" that is where millions are made.
[00:00:16 ] Jason: Welcome DoorGrow property managers to the DoorGrow show. If you are a property management entrepreneur that wants to add doors, make a difference, increase revenue, help others, impact lives. And you are interested in growing in business and life. And you're open to doing things a bit differently, then you are a DoorGrow property manager. DoorGrow property managers love the opportunities, daily variety, unique challenges, and freedom that property management brings. Many in real estate think you're crazy for doing it. You think they're crazy for not, because you realize that property management is the ultimate, high trust gateway to real estate deals, relationships, and residual income. At DoorGrow, we are on a mission to transform property management business owners and their businesses. We want to transform the industry, eliminate the BS, build awareness, change perception, expand the market, and help the best property management entrepreneurs win. We're your hosts, property management growth experts, Jason and Sarah Hull, the owners of DoorGrow.
[00:01:22 ] Now let's get into the show. All right.
[00:01:27 ] Sarah: That was good multitasking there.
[00:01:29 ] Jason: You saw that? See.
[00:01:30 ] Sarah: I saw that. That was one time of you multitasking. So you are capable of it.
[00:01:35 ] Jason: That was hard, but I had that part of the intro memorized. I was putting my phone on do not disturb as I was reading and she decided to call it out. It's hard, right guys? It's hard for us to multitask. Women have us beat in this area.
[00:01:49 ] Sarah: Oh, yeah. Yeah, we dominate you here.
[00:01:52 ] Jason: Yeah, your brains are just wired differently, but we have that singular focus advantage. We can just cut everything else out and focus on one thing at a time.
[00:02:01 ] Sarah: Well, speaking of focusing on one thing at a time, let's get into the show.
[00:02:07 ] Jason: Yeah.
[00:02:07 ] Sarah: So we were going to talk about some doom and gloom today.
[00:02:10 ] Jason: Yeah. So we just saw the stock market tank, like a thousand points, right. Pretty wild. And friend of mine who runs a company, Jeremy Pound, he had mentioned, I saw his post online.
[00:02:23 ] Shout out to Jeremy. He said, "now's the time to reach out to your real estate investor clients and say, 'Hey, look, your property didn't go down by a thousand points and never will,'" you know, something like that. So I thought that was clever. But yeah, real estate, probably a better investment right now than long term but a lot of investors are still in general freaking out. There's a recession that seems to be looming and coming or is already here depending on who you listen to. And so yeah, the sky is falling and chicken little's been shouting which is the news media and like everything bad is coming and so is this going to be how's this going to impact property management?
[00:02:59 ] Might be a good question to start with.
[00:03:01 ] Sarah: Yeah, I think one of the things that we're already seeing is we have been seeing in many markets at least a decline in prices if you are trying to purchase a property right now. And we are no longer, no matter what market you're in, because some markets have still held pretty steady, no matter what market you're in, we're no longer in the days in which you list the property on a Monday, you get multiple offers and it's accepted for well over the list price the same day.
[00:03:40 ] We're not in that situation any longer. So how does that affect property management? Well, on the real estate side, investors right now should be, if they're not, but they should be looking. Because things are on sale right now.
[00:04:00 ] Jason: Steals.
[00:04:01 ] Sarah: So as you think about what is your favorite store of all time?
[00:04:06 ] Let's ask you, what's your favorite store ever?
[00:04:10 ] Jason: Amazon. Amazon. Okay, cool. I spend a lot of money there.
[00:04:12 ] Sarah: That's great. That's actually, you know, I wouldn't have thought of that. Because I don't, for my brain doesn't equate it to a store, but I guess it is.
[00:04:18 ] Jason: Okay.
[00:04:19 ] Sarah: I love it. I love Amazon. Okay, cool. Amazon. So if Amazon had a sale where everything was 30 percent off, would you probably buy some stuff?
[00:04:29 ] Jason: Oh yeah, I'd buy a ton of stuff.
[00:04:31 ] Sarah: What if it was 55 percent off? 60. Oh. 70.
[00:04:36 ] Jason: No brainer. I would stock up on so much stuff.
[00:04:39 ] Sarah: You'd be like, "I don't even need this, but what if I do?"
[00:04:41 ] Jason: A million supplements. I would like.
[00:04:43 ] Sarah: Right.
[00:04:44 ] Jason: I'd be healthy set for the next year.
[00:04:46 ] Sarah: You'd be buying everything. So investors, this is your call.
[00:04:48 ] Hello, real estate is on sale right now. So the savvy investors, they already know this. They're super excited right now. The savvy investors are not freaking out. The savvy investors. They know. This is where millions of dollars can be made and in fact in every single recession new millionaires are made and this is an opportunity for that to happen.
[00:05:18 ] So people who are like the accidental investors and they've got that property they've been hanging on to and they're just waiting until the market gets hot enough and then they'll probably sell it. But in the meantime, I guess I'll hang on to it and rent it out. They're going to freak out right now.
[00:05:36 ] They're going, "Oh my God, what if rents dip even more? What if vacancy rates are longer? So I can't fill a property or my property manager can't fill a property in a week like they used to be able to?" It was just churn them out and hurry up, get another one in there, find a warm body, put them in. They're like coming in droves.
[00:05:54 ] That's not the situation anymore. And they will freak out. But the investors that understand the situation that we're in and the market at where it stands. Oh man, they are excited. Yeah, I'm excited right now. I'm like great tank, baby. Let's go .
[00:06:12 ] Jason: So the big news out there like right now is Warren Buffett decided to sell off a ton of stock like half of his stake in Apple like some major things and he doesn't make very many moves, right?
[00:06:24 ] He's like this minimalist in making Purchases or selling he's like he's the he's got the diamond hands, right? And He's now sitting on a cash stock pile 277 billion
[00:06:39 ] Sarah: billion with a b
[00:06:40 ] Jason: he's just hanging out with cash He's waiting for the bottom to hit because he knows he must know that things are going to get worse.
[00:06:47 ] Sarah: Because he's gonna go shopping.
[00:06:50 ] Jason: Yeah, he's gonna he's definitely waiting to go shopping is my guess And so there's going to be some deals to be had And that may mean the real estate market could be getting worse. Could be getting a lot worse, perhaps. So, and if that's the case, then savvy investors right now should be stacking cash, right?
[00:07:09 ] Property mana
United States
