Hey everybody, Sean Shalles founder at the Tenex real estate warrior nation. We're also considered the consumers' real estate coach. And I just want to reach out to you today. I had a great conversation while the guys that works with me and he asked a good question. He said, Hey, Sean, you know, we're prospecting our brains out. And you know, the results just aren't getting what they used to get. What's going on there. Are we, you know, or how long are we going to in this kind of a situation, do you think it's going to continue? What do you think? What is the deal? So, you know, I kind of explained to him and I said, you know, the misconception that the general public has right now is that the real estate market is flying. Interest rates are low and everything comes on.

The market sells multiple offers. Well, yeah, it does because we're actually in the complete polar opposite of the economy that I was in when I was working in 2008 and 2009, I mean, 2008, 2009, what's happening. Then you got to realize like, you know you know, that is, that is now almost 12 years ago, 13 years ago, I'm 40 years old as opposed to 54. I walk into my office and in, you know, in the beginning of 2008, I had just opened my new office. I have one kid, one on the way I'm honestly making about 80,000, a hundred thousand dollars a month. And all of a sudden I wake up and against all the better judgment of all my mentors and all my coaches said, don't do it, don't do it. We knew we were going into a declining market. Had we known how bad?

I mean, it was like the perfect storm in real estate. I mean, it was just, it was disgusting to be honest with you. So here's a true story, you know, and will put it in perspective for you. I open up my office. I'm excited as how we went from number 180 on the sheets as a new company to the next month we come out and we're number 90 on the sheets. And what are the sheets while the sheets back then, what they did was every month, the more the real estate association or the multiple listing service would send us out a report and they would fax it to us back then because they didn't email it. And it was about eight pages long. So I, or that it came out on the 15th of every month. So the first month I get it, I was really excited.

I didn't even realize there was a report. And I was like, wow, look at us. You know, the next month that comes out, we're like a number we're like number 16, we go from number 90 to number 16. So within 90 days of opening our office, we went from 180 as a new office. And as the last guy in the lot to number 16, out of 180 companies, well, what I didn't realize was then, you know, all of a sudden it started to get closer to 2008 in September. I go in the office one day, I get the report, I call up the multiple listing sources and I go, dude, you know, I think there's something wrong with my fax machine. I'm missing the last page. And they go, what are you talking about? And I said, well, you know, usually there's eight pages on a hundred.

Yeah, 80 companies. I said, this month, there's only 140 companies. There's only seven pinch. He goes, yeah, well, those other companies went broke, Sean. They're no longer in business. And that's when the reality set in that, Oh my God, this is no longer just a bunch of people talking because we kind of ignored the news. We just, we really didn't watch the news. We just put our head down and showed up everyday and do what we were supposed to do. And, you know, ironically enough, when we started to look around and started to see what was going on, I really got, I really took it. I was like, wow. In a very short period of time, my income went from 80,000 a month to $8,000 a month, literally overnight and six months. I watched the market tumble to go down 40 to 50% and the amount of sales in six months period.

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And and not only were they, did they go down in the amount of sales, but the sales volume went down from lowers. The price of the homes went down by 45% in that same period. So you talk about a perfect storm. You talk about like, what do you do? I mean, I had just opened an office. I have one kid, one on the way I go home. My bills are probably 10 times what I was making or eight times what I was making a month. And I, you know, all I could think of is, you know, I got my health let's just get up and fight another day. And every day we would get up and we will look at the hot sheet to say to the people in the office and go, Hey, look, there was 15 people that actually listed a house yesterday. There was 20 people that actually sold the house. And there was this many people that did whatever else. So w all they kept doing was looking at the, at the hot sheet to remind ourselves that we hadn't gone to zero. We're still doing some business. And really what we did was we had to take a step backwards to figure out our numbers. So prior to that, I needed probably two listings for every sale that I wanted to make.

When the market's shifted all of a sudden

Carrying 110 listings, because I needed anywhere between 10 to 15 listings,

An order sell one house. So I had to keep that many in inventory in order to sell a house, we had to figure it out

New ways to manage inventory. And one of the ways that we did that was

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Figuring out that if we work with developers or investors that, that had portfolios of 10, 20, 50, a hundred homes, we can actually have one conversation with one portfolio manager or one investor or one, one developer and still manage 30 properties. So we still made the same amount of phone calls, but we were okay.

You were managing, or how housing and our inventory, you know, 10 times the amount of inventory. So that was, that was one thing that we did was pretty smart. The second thing that we did was every morning we would come

Men. And like I said, we would look to see what was positive. That was going on. Then the other thing that we did about three times a week, whenever, you know, you can't stay positive all the time, we would play the song from mighty Python. Always look on the bright side of life, which is a song where if you see the skit, there's there's three guys nailed to crucifixes, and they're saying, don't always look on the bright side of life and their feet are going back and forth. It's just you know, it's just a, it's what they would call a pattern break to break the tension and the office, and to show people like, Hey, you know what? And thank God. You know, I've always led by example. So I wasn't asking anybody to do anything I wasn't doing. I remember one of a very large yellow company in the Northeast port, my firm and the owner of that company came in and the president who's been in the business for probably 60 years. At that point, he said, I don't know how you guys are doing it, but you're doing more business in three of our offices combined. And he goes, we cannot figure out how you guys are appraising properties, because there's

Nothing been trading or nothing selling in order to get it appraised.

And, you know, one of the things I said was, you know, Jim, when, when do you get more excited when you're going down on the, on the rollercoaster, or when you go on up, he goes, man, you know, obviously going down, I said, well, market's going down pretty quick. And I said, people get excited. And I said, well, people get excited when they make decisions. When they're excited, I said, numbers bore them to death. And I said, you know, markets go up on elevators, go down on escalators. And I said, you know, I actually, I apologize. They go up on escalators and they go down on elevators. And

At that time, really what we were doing was just focusing on what was it going to take in order for us to do another transaction? And really what we do is we figured out the numbers. I probably, you know, thankful that that happened at that time. I wasn't thankful that, you know, it happened right when I opened my own office, but thank God I had really good people around me. I was trained by really, really good mentors and coaches over the years to basically, you know, not, I look back. I was, I was, I was like a weapon. I was designed to withstand pretty much the worst economy in the worst real estate market we've ever experienced. So why am I reflecting on the past? And that whole experience is because we learn a lot from our past that we can project into the future. So

When you know, over the,

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You know, I I've, I've talked with people and they said, Oh, you know, I'm working with so-and-so and he's a great coach and a great mentor. And I said, you know, you realize that they've never worked in a down economy or a sideways economy. And they're like, what are you talking about? I said, well, you know, when the market is going straight up, anybody looks good. I say, because there isn't anything that's going to affect them going forward. But I said, when, you know, the, the really the people that shine are the people that shine when the market is not doing so good...