With the 2022 Recession Looming over everyone’s heads, it is imperative for Real estate agents to pivot in their business to ensure they make money during a real estate recession.
There are 4 main areas where real estate agents can make a ton of money during a recession. They are as follows:
- Listing Short Sales
- Listing Bank REO Foreclosures
- Performing Broker Price Opinions
- Creating Residual Income with Property Management / Leasing
Listing Short Sales During A Recession
Let’s face it. The real estate market has been… Well… INSANE! I believe the real estate market will shift and people will begin to see all those “trillions of dollars of equity” that mainstream media bloats about begin to shrink rapidly over the next 12, 24, 36 months.
When people are “underwater” on their mortgage, meaning they owe more than what it is worth, and they have to sell it, they could be prime for listing a short sale. This is in fact they have to sell.
There are many other articles on this website that talk about the process of listing a short sale. As a real estate agent since 2003 and broker / owner of a Florida brokerage since 2006, I have performed listing and selling hundred of short sales over the years.
This has been a fantastic way for real estate agents to make good money during a recession and also help many people avoid foreclosure.
Listing Bank REO Foreclosures During A Recession
Listing bank REO’s is a fantastic way for real estate agents to make big money during a recession. If foreclosed property didn’t sell at a courtyard auction, the bank then takes it bank which is considered an REO (Real Estate Owned).
During a recession, bank foreclosures become more and more common as more and more people run into financial hardship.
Listing properties from a bank isn’t any easy task. And it is imperative to know who to reach out to, what to say and what process are in place with listing bank foreclosures.
Performing Broker Price Opinions During A Recession
A fairly simple way for real estate agents to start making money during a recession is performing BPO’s, also known as broker price opinions.
Real estate agents can expect to get anywhere from $40-$125 per BPO that they complete.
Broker price opinions are comparable to a detailed market analysis (or CMA) that you would provide to a seller prior to listing a property.
However, BPO agents are hired usually by lending institutions (or some affiliate of). BPO’s increase as more REO’s and Short Sales become prevalent in the real estate market.
Create Residual Income During A Recession with Property Managment
Real estate agents who choose to lease and manage properties on behalf of landlords can ultimately create a recession proof real estate business.
You are no longer relying on buyers and sellers during a recession. Rather, you can create monthly income for each and every property you are managing. And the homes you sell are icing on the cake!
Over the years we were in charge of many properties to lease and manage for clients. And… Actually when the market shifted and real estate was at a standstill before crashing in 2008, property management got us through the tough times!
How Can Real Estate Agents Make BIG Money During A Recession
In the beginning of this article I listed the 4 main target markets that real estate agents should concentrate on and make big money during a recession.
Each of those titles has a link to a comprehensive course on each topic. They are detailed and provided by Steve Daria who is a real estate broker, investor and now YouTuber with decades of experience in listing short sales, listing REO’s, performing BPO’s and Managing Rentals.
We suggest real estate agents work on all four fields during a real estate recession. And… At a HUGE discount, we provide a bundled package HERE.
As always, we wish you incredible success in your endeavors!