In a recent email from Grant Cardone to his subscribers, a prominent leader in real estate investment, the message was clear: 2024 is shaping up to be one of the worst times in our lifetime to buy a home. Cardone, who appeared on Fox News to discuss the current real estate market, highlighted several alarming trends. Inflation is eroding purchasing power, interest rates are soaring, and insurance costs are escalating. He noted that in many regions, homes are significantly more expensive than they were years ago. This combination of factors, Cardone asserts, has effectively killed the American dream of homeownership for the average person.
Despite this grim outlook, Cardone also pointed to a silver lining. He emphasized that such economic conditions often create unprecedented opportunities for wealth creation. Drawing a parallel to the Great Depression, he suggested that the current real estate meltdown could reveal some of the best opportunities for becoming a millionaire in America. A similar message was sent by multi-millionaire Dan Pena in his interview, where he mentioned that he expects the crash of commercial real estate and emphasized that the world’s largest companies, based in the US, are waiting with their cash ready to scoop it.
However, not everyone in the real estate industry shares Cardone’s perspective. Joshua Price, a leading real estate broker in Las Vegas with Keller Williams The Marketplace, offers a contrasting view. Price acknowledges the challenges posed by high costs and interest rates but advises that those considering buying a home should act sooner rather than later. He argues that real estate is inherently cyclical and that long-term homeownership can still be a sound decision. Price reminds us of historical precedents, such as the high interest rates of the early 1980s, which eventually declined. He suggests that for those planning to stay in their homes for at least five years and more, buying now could be advantageous despite current market conditions. The key, according to Price, is to view homeownership as a long-term investment rather than a quick path to wealth.
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Allison Zhang, CEO of Allison Rental, a leading short-term rental management company in Silicon Valley, adds another dimension to the discussion. Zhang highlights the growing importance and complexity of the short-term rental market. She notes that professional rental management now involves sophisticated strategies like dynamic pricing, SEO optimization, detailed and personalized interior design and multi-channel management. Zhang argues that short-term rentals can be a lucrative alternative for property owners, particularly in an uncertain economic climate. She emphasizes the need for expert guidance to navigate this sector successfully.
Zhang also touches on the broader real estate landscape, pointing out that with the economy slowing down and inflation high, people are becoming more cautious and rational about real estate investments. She echoes Price’s sentiment that real estate should not be viewed merely as a quick way to get rich. Instead, she advises potential homeowners to focus on long-term stability, indepth research and of course creating comfort.
Both Price and Zhang agree that while the current market presents challenges, there are still viable paths for those looking to buy homes or invest in real estate. Price advises potential buyers to improve their credit scores and save money, preparing for a market correction that could offer more favorable buying conditions. Zhang emphasizes the value of professional management in maximizing rental income and minimizing risks.
In our phone interview with Hollywood film director and branding expert Victor Migalchan, he shares his thoughts on the significance of branding in the real estate industry. According to Migalchan, branding, when done professionally, is essential for any business, especially in real estate. In today’s market, you want your brand to not only stand out but to show power and demonstrate that you are the best. Migalchan draws a comparison to top Hollywood Agencies like WME, CAA, and UTA, emphasizing that while we now have more tools and better optimization, the fundamental and systematic principles of effective branding remain the same. He describes branding as a complex system of actions, involving a combination of tools such as proper timing, social media, traditional media, high quality and appealing video content and more. Content must be professionally planned, scripted, and executed, then it should be properly and timely connected with social media and traditional media. Migalchan believes that “eyeballs and brand name are the new currency.” You may lose all the money you have, but if your brand is out there, you will make everything back and more quite fast.
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A strong personal brand is the most powerful tool in influencing potential clients’ trust and decision-making. People prefer well-known brands like Rolex over unknown ones, and the same principle applies to your brand in real estate. Your brand tells the story and sells. In real estate, where investments are significant, clients want to trust their money or property to a reliable professional—a reliable brand. Migalchan compares this to the way people follow and learn from personalities like Grant Cardone or Robert Kiyosaki because of their brilliant branding on one hand, knowledge and achievements on the other hand. Migalchan also mentions that in this era we have too much information and too many of those trying to be influencers. It is crucial to be able to see through and connect with the real ones.
For real estate professionals looking to attract and retain clients in today’s digital age, Migalchan recommends a tailored approach to branding strategies. Instead of using and investing in some new terms like “creative finance” (which isn’t really creative, everything has been done already by the generations of rich), invest in your brand and expertise. It starts with analyzing the end goal and creating efficient strategic and tactical moves. It tells your audience that you are professional, tells about your expertise, domain, enthusiasm. You have to be sharp as a tack. Branding and PR are long-term investments, just as real estate, and there are no shortcuts. Everything in the media should back real actions. Migalchan observes that many companies and individuals try too hard by buying media while having nothing substantial behind it. They pay for Instagram check marks and fake followers, which ultimately look fake. “For us, media and PR professionals it is very easy to check the reality”, says Victor Migalchan. “It is important to be careful and read what is behind the message of each video or media outlet. It is easy to get misled, even in our business everyone promotes something (equipment, courses, etc) with the scope to sell. They create content, recycle, rename things and confuse people, especially for the beginners in the business” he added. In contrast, building a brand gradually and steadily under professional guidance is the key to establishing a strong and credible presence in the market.
While Grant Cardone’s stark warning highlights significant hurdles in the current real estate market, experts like Joshua Price and Allison Zhang provide a more nuanced perspective. They suggest that with careful planning, propper professional guidance, research and a long-term outlook, homeownership and real estate investment can still offer substantial benefits. The key is to navigate the market wisely, leveraging professional advice and focusing on sustainable, long-term goals. Additionally, effective branding can significantly enhance the reputation and visibility of real estate professionals, influencing clients’ trust and decision-making. By implementing strategic branding efforts, real estate agents and agencies can stand out in a competitive market and build lasting success.
Published by: Nelly Chavez
