No Broke Months For Salespeople - Creating Generational Wealth Through Real Estate & Why You Should Start Now

Episode Date: October 17, 2024

Mark Fisher has helped over 2,000 families achieve their goal of homeownership over the past ten years, totaling over $1 Billion in closed loan volume. Mark has been accredited in Scotsman Guide Magazine as one of the top 75 loan originators in the country, Mortgage Professional America’s “Young Guns” stars of the mortgage industry, and National Mortgage Professional Magazine’s “40 Under Forty.” In this episode, Mark will discuss how just getting started on real estate can have a massive impact on your family's future. You can find Mark in these links below:LinkedInInstagramFacebook To find out more about Dan Rochon and the CPI Community, you can check these links:Website: No Broke MonthsPodcast: No Broke Months for Salespeople PodcastInstagram: @donrochonxFacebook: Dan RochonLinkedIn: Dan Rochon

That's ultimately where you want to be because you want to have a real business. And most people don't have a real business. They can't step away for a month and go away and have things still continue moving forward. You know, they walk away and everything stops. That's not a real business. Welcome to the No Broke Months for Salespeople podcast, the ultimate destination for salespeople, business people, and entrepreneurs. As you immerse yourself in this show,

you'll discover the secrets to unlocking consistent and predictable income. We reveal the new way to persuade human behavior by mastering the art of the teach-to-sell method. Get ready to transform your approach and achieve unparalleled success. Mark Fisher has helped over 2,000 families achieve their goal of homeownership over the past 10 years, totaling over $1 billion in closed loan volume. Mark has been accredited in Scotsman Guide magazine as one of the top 75 loan originators in the country, mortgage professional America's Young Gun Stars of the Mortgage Industry,

and National Mortgage Professional professional magazines 40 Under 40. In this episode, Mark will discuss how just getting started on real estate can have a massive impact on your family's future. Hello, friends. My name is Dan Rochon. I'm the host of the No Broke Months for Salespeople podcast, where you learn how to teach to sell, which is the new way to persuade human behavior. And when you teach yourself, you're going to unlock consistent and predictable income. You're going to strengthen relationships to achieve self-fulfillment, and you're going to avoid the number one sales mistake to never face rejection again and learn how to use normal linguistic programming to influence

and handle difficult people. Welcome to the show. Mark, welcome. How are you? Good, man. Thanks for having me on here, Dan. It's my pleasure. So today, you and I are going to talk about creating generational wealth through real estate and why you should start now. And so you've been doing this for a while. You've helped a whole bunch of people. What is it that I should know about creating generational wealth and how I could do that through real estate? And why should I start now? Yeah. I think probably some of the basic things is just getting started is number one and not focusing on timing because none of us can time things the way that we think that we can.

Just take the stock market or anything else. Last year, I got out of the market a little bit, and that's when everything was at the bottom and it jumped back up. So you're never going to get it right. So I feel like, especially as a first-time homebuyer, you're going to be living the property as your primary residence. Just find something that makes sense for you in terms of a payment and get started because that's how you're going to start getting into the game of real estate, start building equity and really start changing the future of your family and wealth and trajectory you guys could make with it. Robert Leonardus Yeah. So how have you done that? I mean, how have you seen... Give me an example of somebody that you've helped to be able to do. And I know that you're an investor. I know you own at least

11 properties. Talk me through a specific person that you've helped. So one person that comes to mind, this guy, Chris, he called me today. He was a past client of mine from 2011. I'm actually 2012. Sorry. And he bought a duplex for, it was like 362,000 back then. Right. And at that point in time, it was post 2008. So people were a little bit, you had to kind of convince people that real estate was a good idea. So he was definitely one of those people that you had to do a little convincing with. He was nervous and whatnot. But fast forward to today, he's thinking about selling the property, moving to New Jersey. That same property he bought for $362,000, I looked it up, it's worth somewhere around $670,000 today. So he not only almost doubled the value of the property, but the more impressive thing is that he did an FHA loan only 3.5% down. So he only came out of pocket $12,000 and change to buy

that property. So if you look at a leverage perspective, that's like a 2,400 times return, cash on cash return on your money. How else could you really accomplish that? You know what I mean? Plus, obviously having a place to live, which you're going to have to have a place to live anyway. But I'm all about using leverage, whether it's money, people, time to grow at a faster pace. I grew up with not much. I grew up with the projects of my single mom. And I was one of the first people to be able to buy my own property and my family. So definitely want to see other people achieve the same thing. And now this guy is going to be able to walk away with over $300,000 in his pocket. And it's going to be tax-free because of the benefit of living the property for two out of the past five years and that being exempt from capital gains. So real estate is just such a great way to build wealth, in my opinion. Yeah. So you took that 12,000 or he took that 12,000 and parlayed it to

300,000 in 12 years, right? So that's a very, very impressive return over a 12-year period of time. I mean, hopefully I've got another 50 years left in me. So if I could do that every 12 years, I'd be a happy man. So what's been the biggest challenge that you've seen in the industry? I mean, I think right now, especially a lot of agents and mortgage professionals and just everyone in the industry is experiencing the inventory crunch and rates being higher. But I think people kind of somewhat got used to rates being higher at this point. And they just jumped up again. So now we're pretty much at the high, 23-year highs. So it's not fun for anyone.

No one likes higher rates. But the Fed is doing what they got to do to try and keep inflation down and back to their target rate of 2%. But it's more so the higher rates go, the less amount of people want to sell, right? Because if they have a 3% rate or 4% rate, and I think there's over like less amount of people want to sell, right? Because if they have a 3% rate or 4% rate, and I think there's over 60% of people have less than a 4% rate in this country, to go from a 3% to 4% rate to a 7%, 7.5% rate just doesn't make sense for a lot of people, which is why the higher rates go, the less inventory, less transactions there are.

So I mean, just generally speaking, I think there's like 35% or so less transactions than there were just like a year ago because of just the lack of inventory. But once rates come down, that will unfurl upon itself. But I think that's the biggest issue and most pressing issue for people in the industry right now is just like less transactions happening. Yeah. And we're having this conversation in August of 2023. If you're in the future watching this right now, you may be in a different situation. But what we do know is we know what's happened in the past. And we know through the pandemic that there was people from urban areas moving to suburban areas, moving to suburban areas moving to rural areas uh because people didn't want to be on top of each other and then appreciation uh so that had

an appreciation of prices in the marketplace of properties and then about a year and a half after that the inflation continued to rise so that had a uh a push on the economy. So there was like a double push on prices. One through that exodus from the urban areas to the suburban areas and the people in the suburban areas like, I'm not selling. Well, how about I give you another $100,000? Yes, I'm selling. And that was the conversation. And then inflation came because of all the government stimulus throughout the pandemic.

And then you fast forward to the government's like, oh, goodness, we need to control this. And then they started raising interest rates. And that brings us pretty much to where we are today. What's your crystal ball? Grab your crystal ball, if you could, and talk to the guy listening to this in 2025. Let's see if we got it right or not. What do you predict for the future? I mean, ultimately, people have been preaching about a market crash or let's say crash for some time now, and it still hasn't happened. And really, the dynamics don't support it, especially from an inventory perspective. And if you just think about it, there's less transactions happening. So you're going to have a lot of pent up demand for... Especially millennials

are the biggest homebuyer demographic right now that just can't find properties. So you have all these people that want to buy but can't. So once rates come down, it's just going to continue to push prices higher, which you're going to have more transactions happening, but you're still going to have price pressures. So you're not going to be... It's not like you're getting a deal, right? It's not going to be any cheaper than it is today because you're going to have lower rates, but you're going to have more pressure on prices. So I think we're going to have more transactions happening in the next year or two. So I think that will help a lot of people who are in the business because just the volume perspective. But I think it's still going to be maybe even more competitive from a buyer standpoint in terms of

having multiple offers and whatnot, and prices being high. So I think that's still going to be a challenge. But I've always been a person that focuses on the opportunity, not on the gap and the lack in things. So I can't control what I can control. None of us can. So why even worry about it? So I'm going to focus on the things that I can control to be able to push my business forward and to help the people that I interact with on a daily basis. What's the opportunity? I think just getting started. I think most people are trying to time the market. They're trying to... They get scared when they see that things are... Rates are 7%. They get scared when they see that

there's a lack of inventory. But I think just getting started, getting pre-approved, and then just start the hunt. You're not going to find something right away because things are... Inventory is short, but the right thing will come along. And that home is going to build equity over time. If you try and wait three years, you not only paid all that rent during that three-year timeframe, but you lost all that potential for the equity growth, which I really think that home

prices are going to continue to grow at a pretty decent pace over the next few years as rates come down. And historically speaking, when rates come down, prices move up because it brings more buyers out there. A lot more people can qualify. A lot more people get excited when rates are lower, right? Yeah. If you look at just like a conservative 5% appreciation, which I think

is very realistic over the next five years, if you're buying a $500,000 property, that's $20,000 per year that you're missing out on by not purchasing and waiting, right? So it only gets harder and harder as you wait. Yeah. I think my crystal ball is pretty aligned with yours, where I'm looking at about 18 months from today. So we're going into 2025 at that point. There's going to be a release of this pent up supply and demand, right? Because there's about 50% less consumers transacting today than there were a year ago. And there are many, many people.

I can't tell you how often I had the phone conversation with, I would do it right now, but. Well, at some point, those buts are going to go away. And I think, and I'm not 100% certain on this, right? So I'm 99% certain that that's going to happen, that there's going to be this onslaught of supply and demand hitting the marketplace in 18 months. And I do believe that interest rates will go down. So I feel that's a 99% as well. Where they'll go to, I'm not 100% sure on. I believe 5% is about where we'll see the market balance at. And I think that that's going to probably take more than 18 months to get there. What are your thoughts on my predictions for that, Mark? In terms of interest rates?

Yeah. And timing of what it will take to get back to there. I mean, I think that rates in two to threes are a thing of the past. That was just an artificial environment that we're in because the government was buying $10 billion worth of bonds every single month, which is obviously what would push rates so low. So unless we see a black swan event like we saw with COVID, that's probably not realistic. I think realistically speaking, we're probably looking at rates in like the high fours, low five range. I think that's a good, comfortable place to be at. And I think that will draw a lot more activity

into the market as well. But I think that's probably going to take about a year or so. I think that ahead of the election, and me being a little bit of a conspiracy theorist, that rates will move lower ahead of that. So probably, you know, early- I had to consider that. That's brilliant. So early to like mid next year, I wouldn't be surprised if we see rates that are, you know, back down to at least around like the low six range, potentially. Yeah, I had to consider. You know, I don't think that's conspiracy at all i think and that's not you know that's not about one political party or another i think that's that's probably across the board that things like that happen um hey vote for me look what i just did to interest rates Exactly. That's interesting.

Excuse me for interrupting my own show. You are freaking amazing. And because you're amazing, I'm going to ask for a quick favor. We'll just take you 30 seconds for you to leave a favorable five-star rating or review on your favorite platform. Then what I'll do is I'll enter you into a raffle where we can meet 45 minutes for a free coaching session. And I'll also give you a copy of the book, Real Estate Evolution, which is the 10-step guide to CPI consistent and predictable income. Oh, by the way, I'm the author of that book. So if you'd like for me to coach you, give you some nuggets and help you in your business, go ahead and leave a review and you can enter into the monthly raffle to win.

What caused you to get into mortgage? Like most people get into mortgages by accident. I've tripped into it. I went to Fordham University and I graduated and then I was trying to kind of figure out life at that point in time and um a friend of a friend uh was in the business put a post on facebook uh thanks to mark zuckerberg otherwise i wouldn't be in the mortgage business right now and um i met up with him he was i think 24 at the time really crushing it then i started shadowing him and uh mentoring with him for the for next few months months or actually a year or so.

That's how I got into it. And I decided that, one, I love that it's very entrepreneurial. Whether you're a real estate agent or you're a mortgage professional, there's no cap. And I love that there's no cap. I was involved in property management, or I thought that's what I wanted to do when I graduated from college know, at that point in time in 2011, to make a hundred grand, it would take you five years. And it just was too slow for me. And there wasn't an upside potential there. So that's what I love is that like I could, the harder I work, the more results I could see from it and it's work hard, but also work smart. And at this point in my career, it's more about work smart. Yeah. That's how I kind of got into it. And my first, I don't know, probably about six years or so, I would consistently

double my business year over year. Nowadays, it gets a little bit hard to double, but I love just always figuring out the systems and the strategies and the people, everything involved in figuring out how I can go from A to B, B to C and whatnot. What's been your biggest challenge in building the business? People, I would say, in terms of staffing or whatnot, finding good people and being able to get out of your own way as well. So many people in this business feel like they need to do it on themselves because they're the best at what they do. But there's so many great people out there. And it's changing your mentality that you don't have to be the one to do everything

and reframing your business so that you create the right scripting and whatnot so that people still feel like you're involved in the process, even though you're not the one that's constantly doing every step of the process. Mark asked me to give you a call. Exactly. Yeah. That's my favorite script for client care and client service when you're getting the right people. And yeah, I've also had the, I would say my struggles would be along the same areas of people. Yet, as I develop in business, I find that it's more about me than them. First of all, it's about who I show up to be as a leader. And then also

understanding that people aren't perfect. And I'm probably going to be the hardest working guy in my business. And so using myself as a standard for others is probably unfair. Ultimately, it's just about figuring out how to be able to provide them with a resource so that they can achieve their goals and that they can be able to create the lives and design the lives that they intend to do so. And as a leader, that's what I look at my responsibility. Now, in return, what my expectation of another is, is that they step up and they take charge of their lives and they take charge of their relationship within the business as well. Ultimately, people that could, you don't have to constantly be on their

back where they take the initiative and you're not having to constantly micromanage them. You have to build that relationship over time and trust and ability and whatnot. But have you ever read the book, Who Not How by Dan Sullivan yeah it's a great book and it explains it really really well like can you do this or should you do this right if you could you know do this task and it's a 20 hour task but your time is worth a lot more why why are you doing it there's plenty of people that could do it you know just as good or 80 as good as you can um and it makes a lot more sense to have them do it rather than you do it. Yeah. I would say in many cases, 200% better than I can. Yeah.

You already know 87% of all real estate agents fail in this business. And you also know it doesn't have to be that way. If you're a real estate agent and you're looking for consistent and predictable income, I invite for you to get your free copy of Real Estate Evolution, The 10-Step Guide to CPI, Consistent and Predictable Income for Real Estate Agents. And you can do so when you visit www.therealestateevolution.com. I'll share with you your book that I authored to show you the way. Thanks.

I got a, I want to get back to the generational wealth, but before I do, so I've got a buddy of mine who is a business leader. And I'd say that he has one thing he does well, and he sucks at every single thing else. He sucks. He's a sucky leader. He's a sucky doer. He's sucky at almost every single thing that he does, except for one thing, which is finding the right people. And he is a tremendously successful business owner. And that's all he does. That's all he does. His full-time job is, Dan,

my job is not to run the business. My job is to find the who. My job is to go find the next person. And I don't, I'm not involved in the business at all. That's ultimately where you want to be because you want to have a real business. And most people don't have a real business. They can't step away for a month and go away and have things still continue moving forward. You know, they walk away and everything stops. That's not a real business. Yeah. All right. Let's go back to creating generational wealth. And so give me a blueprint, right? So go back to the clients that you've helped in the past. Go back to case studies of this guy did this. You gave us one earlier where the gentleman paid a certain amount

of money, $12,000 down payment. 12 years later, it's $300,000. What else have you seen of how to be able to really, really create that generation wealth from clients from your past? So I'm going to preface this with, I'm not a believer that everyone should be buying a property because not everyone's in a position to buy a property. And there's people that say everyone should own a home. To me, it's not true. Everyone's in a different stage in life, different position. If you're paying $1,500 a month for rent, then going to a $4,000 mortgage payment probably doesn't make sense, unless you're buying an investment property and cash flow and whatnot. So I think that you have to figure out where you're most comfortable in your stage of life.

So I just want to start off with that. But I think the people that are able to know the value of leverage, and let's say this person that I was talking to you about earlier, where he was able to take that property and really grow a significant amount of money from his initial investment,

but will then take that and then leverage it into something bigger or leverage it into maybe two different properties, maybe one he lives in and maybe one he uses as an investment property. I mean, I never could really relate or understand the people that would have a property that's owned outright and they're so excited about paying off their mortgage and getting it down to zero, which is a great feeling. And I can imagine it's an awesome feeling. But it's also not the most smart. That's not the smartest thing to do. Because now your money isn't working for you. And if you could... I have two little girls. I have McKenna and Sienna. They're a year and a

half and three years old. So ultimately, I want to be able to work smart and be able to leverage and make the right moves so that my kids have it easier in the future. And then ultimately, I leave a legacy that could last until their kids and beyond. So being able to take a property, build it up, hold it for a period of time, possibly re-leverage it if it makes sense. And then now let's say you have two properties. Well, now let's say you have two rental properties, the tenants are paying down the mortgages for you. People don't realize the power of just principal pay down. Obviously you want to have cashflow. Cashflow is great. It's just hard to

find right now. But simply finding a property and having all your debt paid by your tenants, I do a calculation every quarter or so. And I look to see how much I've accumulated in net worth just based on my mortgages being paid down. And it's pretty powerful how quickly that starts to build upon itself. And especially the later years in your loan, it's going to start to have them. It's going to start to pick up in speed, which is pretty cool to see. Because of the amortization. So paying more principal as it goes through. Mark, how can somebody get in touch with you? The best way is find me on social

NYC underscore mortgage. Instagram is probably my primary contact way. You can send me a DM through there, or you could shoot me an email at mfisher at unmd.com. NYC underscore mortgage. That is a freaking brilliant handle, my man. Thanks for listening to the show today. I am truly passionate about watching great business owners like you and salespeople that grow. And nothing excites me more than hearing your incredible success stories. And I invite for you. In fact, I dare you to reach out to me on social, Dan Roshan, and ask me any question, whether you're struggling or just want to share one of those great success stories. And I promise you, I'll reach back to you.

So until the next time, have the best day of your life. Be grateful, make good choices, go help somebody and let's connect on social. I'm very excited about the conversation we're about to have. I want to introduce you to Dan Rochon, who is the owner and co-founder of Greetings Virginia. I am so excited to introduce my next guest, Dan Roshan. He reads, he writes, he does improv. A frequent speaker and often

quoted about the real estate market. I'm going to bring on a guy that is a winner. We had some really cool conversations before going live with this show. We have Dan Roshan. So I'm going to encourage for you to think big. I'm going to encourage you to think big and then multiply it by two and then take huge action because whatever you want, you're only five years away from that.