And How You Can Make Sure You Aren’t One Of Them!

2008 was an absolutely BRUTAL year for a substantial number of real estate agents and investors. As the sub-prime crisis grew and inventories swelled, most agents and investors found out all too clear that they were not at all prepared for a real estate market…the likes of which most have never seen.

Now as 2009 is upon us and we have settled in after the holidays and the inauguration of a new President (incidentally one who promotes change), the ranks of agents and investors who can’t adapt to the realities of today’s market are thinning quickly.

The NAR estimates that as many as 30% of all agents may leave the business. That number is even higher when you take into account how many agents may retain their license but not really earn any commissions.

On the investor front it is as bleak, if not worse, as many investors, are not at all prepared to toil in a market wherein flipping is no longer for the faint of heart.

So why will there be so much continued failure? Well, surprisingly and much to the surprise of many agents and investors, it’s NOT the economy! It’s NOT because there are no buyers as so many lament about. Here are the Top 10 Reasons Why Most Real Estate Agents And Investors Will Fail In Real Estate This Year:

1. Listening And Taking Advice From Other Horribly Performing Agents And Investors

I learned long ago that advice was only as valuable as the person giving it. If you are commiserating in the office or on some blog somewhere then you are basically strengthening the “no sales virus”. Success breeds success.

2. Lack Of Self Investment

Doctors, Lawyers, even Plumbers immerse themselves in ongoing, valuable continuing education. Then once they educate themselves they practice it to hone their skills. In real estate, most agents and investors opt for free courses at local boards. FYI…See #1 above. Who is teaching these classes? Ask pointed action questions. “Hey Mr. 2 Hour instructor…just exactly how many short sales have you completed in the last six months?”. Also, those free board classes aren’t an investment in your success and they are worth as much as you have paid for them. But they do give you those nice letters and acronyms to put on your business card.

3. Lack Of Technological Prowess

The data is staggering. Less than 1-3% of all real estate agents or investors have any REAL presence on the Internet. This is amazing when you realize that the selling and buying public are overwhelmingly utilizing the Internet for their real estate needs. Ignoring and outright REFUSING to adapt and change accordingly will most assuredly spell doom for many agents and investors

4. Marketing With Bows And Arrows

In addition to using outdated and inefficient marketing methods, the methods that are being used are “targetless” and without attention to those who actually want or need your services.

5.Not Being Capitalist In Nature

I assume that most got into this business to actually achieve a profit. Yet lately some are hiding behind their inability to actually generate a profit by saying that making money isn’t all that important. Simply put, being in business without the expectation of profit, is not being in business.

6. Lack Of Timely Communication Skills

Want to improve your business? Answer your phone! Respond to your emails! We have done survey after survey and have spoken to business consultant after business consultant. Want to improve your business by 15-25% overnight? Simply answer your phone and respond timely to emails.

7. Maintaining The Job Mentality

If you feel you have a job then go ahead and fire the worst employee that you know! Agents and investors are in BUSINESS. Your broker is NOT your boss. You are your own boss. Don’t expect your broker to make you successful. You have to operate and manage YOUR business.

8. The Lone Ranger Minus Tonto Syndrome

Most successful business owners surround themselves with a bevy of consultants and other valuable practitioners. Yet most real estate agents and real estate investors feel they can do it all themselves. This is either ignorant or a by product of #2 above. Either way, it’s one of the surest ways to usher yourself out of business.

9. The Ruby Red Slippers Don’t Fit

You can click your heels together all you want. No Strawman, Scarecrow, Cowardly Lion, or masterful Wizard are going to bring back the good old days of real estate. Business advances, it does not fall back. The means and ways of running a real estate business as they were a few years ago have irrevocably changed. Those waiting it out, hoping for a return to the glory years are absolutely toast!

10. No Real Plan To Address Items 1-9 Above

If you don’t have a real plan to address the items listed above, 2009 may end up being a very long and “profitless” year.