No More Real Estate Agents | I Allegedly

Hey, it’s Dan. Welcome back. You’re watching. I allegedly, and I’ve got a really good one for you today, because there are no more real estate agents. They’re done. And it’s just a matter of time until it completely blows up. So please take a second. Hit the like button. Subscribe to this channel. And today we have a sponsor, Chuck Norris and I will talk about them a little later.

1st. 1st things first, the Richmond Fed, they issued a report, and I just want to call it a detailed report, a scathing 42 page report on the status of real estate agents and all the lawsuits and everything about what’s happening here in the states for real estate agents and why they are done, why they are finished, and why it’s a broken system that you’re going to see get changed quickly and without a doubt, more lawsuits.

So let’s get right into it. Since the dawn of man, when you go and sell your property, you have a commission that you offer the listing agent, okay? And they get your listing, and they put the sign in front of your house. And let’s just say it’s generally 3%, no less than two and a half percent on average. Now, what they do is when they list that house, they list a buyer’s commission for the buyer’s agent.

And this is where they got sued because they said, listen, we’re going to have this house sold and it’s going to match the same commission. It’s going to be 3% as well. So you’re talking about 6%. 87% of all transactions in the United States had real estate agents up until just a few years ago. But what happened was people felt that they were getting played because the buyer’s agent is getting 3% for bringing the buyers in.

Now, I’m going to use myself as the example of this, okay? I have been looking at houses for quite some time because I’m me, because I want a deal. I want something 25% under market. That’s what I want. And I don’t need a buyer’s agent, okay? I want someone that’s going to be able to find me a deal. You find me the deal and I’ll pay you the commission.

But I have an attorney who can negotiate anything. I’ve got a multimillion dollar loan approval already, sitting there waiting to buy multiple properties. I’ve got lots of cash to go out and buy places here in Arizona. You know, my main residence. I want to live here in southern California. But I also want a lake house. I want a house. Tiny cabin with a pond, let’s just put it that way.

That has its own little, you know, I want to be able to fly there. I want to be able to get out of the airplane at the airport and drive to my house. And I don’t want it to be in Maine. Okay. Because it’s the other side of the country. Now, with that, you get some agents that say, well, no one’s going to represent you, Dan. I don’t need you to represent me.

Got plenty of people in the foreclosure business, plenty of people connected to the banks right now that are starting to accumulate properties left and right. Okay? So there’s that. The problem with it is the average person doesn’t have that. The average person is buying into the hype that there’s just no inventory and that you have to bid above ask. Go look at Florida right now. Florida is an absolute disaster.

Florida is going to be Southern California of 2010, 2011. That’s what you’re going to see in Florida right now. But what’s happening is these agents are out there getting commissions that they shouldn’t be getting right now. That’s the problem with it. And this Richmond report is so beautiful. Okay, I’ll include it below. And again, it’s 42 pages. It’s got all the math. It’s got every possible scenario in it as far as everything that they broke down and why people pay more when they have an agent.

There is something called steering also. What is steering, Dan? Well, steering is when you go out and you are a buyer’s agent, and you start looking at houses and what the commission rate is, and if you see something that’s only got a half percent commission or 1% commission, I’m not going to show Dan that house. Dan’s qualified for a few million bucks, man. I can go out there and show him a real house.

Okay. Why would they want to do that? And that’s the problem. That’s why they had that Kansas City lawsuit where they got $1. 8 million in litigation. It’s absolutely crazy, because when you look at countries like Denmark, Singapore, Australia, on an average, most countries, you pay 2% commission for the entire transaction. The UK, for that matter, 2% of a transaction to go out and buy a home, okay? But here at 6%.

Kind of crazy. Kind of crazy. And people are done with it. But what the. Richmond, this is the first working paper of the year. And I mean it, guys, it’s worth reading because it really does break it down beautifully. And I am dying to see real estate agents read this. And, you know, they don’t make a good point. We’re so needed and it’s so important. Really. Okay. We’ll see how that works out.

What’s going to happen is the Fed is convinced that there’s going to be an Ala carte program where you’re going to sit there and they’re going to go to a guy like Dan and say, listen, dan, I’ll find you the property, but you’re going to pay my commission. Okay? Here’s my parameters. Here’s what I want. And if you can meet these, I’ll pay you a commission. That’s what’s going to happen.

How many people are going to do that now? The best thing is they also reference houses for $300,000 and how the average person, or are they going to come up with an extra nine grand to pay this person? I’m like, that’s crazy. Now, I specifically wanted to walk on the island so you guys could see this, where you’ve got houses that can go for 6 million, houses that can go for 15 million, and you can see crazy, crazy stuff.

But if you take a high end real estate agent like the Altman brothers, Josh Altman from million Dollar listing and his brother Matt and Heather, his wife, that team, if you take them and you say, hey, listen, I want you to list my property. They have such a machine with their property and with their agents and with their buyers, with social media, that that’s what you’re paying for.

When you pay that commission, you’re getting something that is completely top notch, top line, high end, and a level of international buyers that they have at their beck and call that they can work with. Now, not everybody has that. Everybody would like to think they have that. But these agents out there that are just representing the buyer, they’re acting like they’re out there working, earning that commission. Now, I’ve had agents come to me and say, you know, dan, it doesn’t work that way.

Even if you don’t use a buyer’s agent, you know, that commission just goes back to the seller’s agent. You’re kidding yourself. So you’re going to see this completely get destroyed over the course of the next year, it’s going to completely change. And if you don’t think that’s going to take place, you’re kidding yourself. But this is the final report. This is the thing that really did it and really makes it so that people that are out there that think that they’re just going to go out and have a they’re going to go out and make commissions and everything’s going to stay the status quo.

You’re kidding yourself. So share your thoughts on this stuff, guys. Let me know what you think. And with a nicer section down here, but this, that’s their backyard. Okay, so share your thoughts on this stuff, guys. Let me know what you think about this. But it’s over, guys. You’re going to see this completely change. And if you’re an agent out there and you want to correct me and you think I’m wrong, feel free to correct me, because it’s done.

It is done. And as the banks get busier and they start to get more inventory that you say doesn’t exist, that’s the one thing. There’s also you people that write me and say, how dare you promote the foreclosures and people losing their houses. I was at a house sale yesterday where a woman’s mother died and the mother died, had one daughter, didn’t have a will very close to a mom, but didn’t have a will.

For the last year and a half, the woman was trying to deal with probate court herself like a fool. Here in California, the house finally went to foreclosure. And because Doug is a good guy, I saw a house that they owed $380,000 on go for a million, $140,000. Now, Doug worked with the woman, had a real estate agent friend and explained to her that if she is the sole owner of this woman’s estate, that the overage, the amount over the $380,000 goes to the daughter.

So the woman had $700,000 worth of money, almost that will be hers. So even if she went out, got control of the property, fixed up the property, listed it, she’s going to make more money because of the foreclosure sale than she ever would have if the place was fixed up and sold. So woman was crying, very happy. But sometimes it works out in the other direction. Let me know what you think about this so far.

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Think about this, $30 billion will be saved by changing the structure for real estate commissions. Think of the amount of money that’s going to be saved by sellers, by buyers, by everybody. Okay? It’s going to give you a negotiating edge. Not having a buyer’s agent. I can throw that money in to the sales price. Hey, listen, whatever the 3% is, you can keep it, and I can drive the price down by doing that.

Rocket mortgage, the country’s largest loan originator for first mortgages, they’ve laid off 3800 people this year, 3800 already in the last year. Now, something they did at the end of February that went under the radar, that’s a huge, huge problem, is that they are no longer going to originate new loans. So no more new construction loans, no more purchases, nothing. When it comes to rocket mortgage. Now, I want you to understand the model of rocket mortgage and how effective it’s been.

You buy a house with Rocket mortgage, they are constantly hitting you up. They have an algorithm that can determine the value of your house and say, hey, Dan, it’s time to pull money out of your house. Let’s tap that equity, tap that baby and get money out of the house. That’s done, guys. They’re no longer doing this. So if you don’t think that the real estate situation, the real estate market is going to be dramatically affected as a result of the nation’s largest loan originator, you’re kidding yourself.

Now, one thing that you’re going to see change dramatically in the next 90 days is you’re going to see more and more banks that are going to have real estate owned properties. They’re going to have properties that they’re going to take possession of with these foreclosures and with them starting to call money in from COVID because they’re done. They’re done chasing and letting people just make story time up when it comes to Covid.

I wanted to go to the tip of the island so you guys could see this. Just a beautiful spot out. You know, they haven’t seen anything yet. Guys haven’t seen anything yet. This beautiful custom home they’re building, that’s Collins island right there. It’s a little end of Balboa island. But think about this. February was the largest number of layoffs in the last year. Okay? Just for high end tech companies that got announced on a grand scale, if you have over 100 employees and you lay them off, you have to give them at least 30 days notice.

Some states, it’s 60 days. But with that, you had 84,643 people that got laid off in February, the largest month in the last year. But listen, our unemployment hasn’t gone up. Nothing’s been affected. Nobody has a problem. Just go about your day and quit talking about the fact that people are getting laid off right now. Okay? So share your thoughts on all this stuff so far. Let me know what you think about this.

But you haven’t seen anything yet when it comes to the layoffs. You haven’t seen anything yet when it comes to these real estate commissions yet, because this is just the beginning of this. You’re going to see some type of system. And what do you think the Ferris system is? Seriously, do you think the Ala carte system? Hey, you find Dan a house and Dan pays you a commission.

Is that the best way to do it? Or is it every man for himself? Is it? The buyer’s agents are going to start having fees like, hey, you want us to show you properties? We’ll show you ten properties, $500 apiece, on up. What about that? Would you pay fees like that? Because it’s going to change this. Now, other countries, they have, like, listing systems and you can call it zillow and things like that, but you’re going to have listings on these houses that will be done through a different platform where people will pay for this.

And it’s going to be very unique. But let me know what you think about this. What’s the fairest way to do this and what works? So let me know. I really enjoyed having Bob Kudla on my show the last few days. He really made a lot of bold predictions about bitcoin, metal stocks, little bit of everything. And the response has just been great to it. So one thing they talked about was metal prices going up and gold taken off.

And he loves silver. But Costco has sold an absolute ton of gold guys over the course of the last six months. And now they’re going to start selling silver, too. They’re selling silver maple leaves, canadian maple leaves. You can buy 25 of them for $675, which works out to about $27 apiece. And that’s what the current price is right now. And not a bad spot. Not a bad price.

I know somebody that you guys have heard me talk about that sells a little better, but not a bad place to buy stuff. Now, one thing that we’ve talked about and what this channel originally started with was the COVID relief money. And the feds guys, they’re coming after their money. They anticipate right now that there’s $20 billion in delinquent Covid loans that people have out there. And if you think that they’re just going to forget about that, I want to explain something to you.

Read the article below from the New York Post, because I want you to think about this. They don’t have to file a lawsuit against you. They don’t have to start collection proceedings. They’re the federal government. They are the collection proceedings. They can seize tax returns. They can seize your taxes. They can seize anything that you’ve got that would resemble any type of refund in any way, shape or form.

So if you think that they’re just going to forget about that $20 billion that they owed, you are kidding yourself right now. So originally, it was confusing. They gave people a year to pay. But what people didn’t understand is the second you got that loan, interest started to accrue on that and it grew, grew, grew. And then they said, listen, we know people are having a difficult time with COVID so we’re going to extend it to 30 months if you want to take it.

And most people did. Only problem is a lot of people went out of business during that time and just thought, what are they going to do? They’re never going to come after this. Yes, they are. And they’re going to come after it in such a way that it’s going to be very disruptive and it’s going to ruin a lot of people’s financial lives right now. So read that article below because they’re just not going to forget this money.

And you need to work out a plan on how you’re going to pay this back. It’s really important because they’re not messing around. And $138,000,000,000 worth of loans were written. But the next 20 billion they’re going after right now. So mark my words, guys, they’re going to come after this money. And you’d better work out a deal now than wait for them to come after you, because it’ll be the most inopportune time when you have a thing like a tax refund or something going good in your life and then they shut you off.

So get ready for that. Tell your friends, too. Tell your friends, family members, people that borrowed that money, that think that they’re just scot free, they’re anything but that. Now, if somebody did some shenanigans and if they got multiple loans that they weren’t supposed to get, they’re just going to call the loans in. Hi. You owe us that $88,000 immediately. And I’ve had people write me and tell me that’s what’s happened to them.

And of course, they don’t know what to do. And they’re completely upside down and completely shut down financially. So let me know what you think about that’s. Here’s a few banking stories that I know everybody always loves, but on March 11, the bank term fund lending program ends. This was special terms, special interest rates for banks. And that is officially done on March 11 of this month. And they’re saying that this could be the date that everything goes south.

Now, the Fed, the FDIC just announced that there are eight more banks in trouble, and they have a list that were added to the list of banks that are in trouble. And Dave subscriber sent me that list, which is great. But the funniest story of all this is that Jerome Powell, now think about this. Jerome Powell may not me, may not lower interest rates because of the bitcoin run, because bitcoin has taken off.

And so many people are relying on bitcoin right now that there may not be a need to lower interest rates. Can you believe that? He said that? There’s a story below where he’s quoted talking about this. I’m telling you guys, what does bitcoin have to do with the feds and interest rates? And is it real money? Is it not? What’s it backed by? The normal thing that we ask questions of every day? But to sit there and say that interest rates are not going to get lowered because of bitcoin, that is insanity right now.

So you have just seen an absolute run on basically every type of cryptocurrency. And one thing that people write me a lot about is one called Shiba Inu, which is a decimal. 4 zeros and a number. And that has literally gone up three times over the course of the last week and a half. And if people bought that, they probably made a substantial amount of money. But again, it’s just selling it now.

Of course, like Bob talked about, it tapered off and cut back, and so has bitcoin a little bit. But it’s going to be very interesting to see what happens. But to say that Jerome Powell is not going to lower interest rates as a result of this is lunacy. So let me know what you think about that. I’m going to finish this video with these last couple of stories.

And the first one is about how there’s such a demand on the electrical grid around the country that there’s areas that you’re going to basically see there be a lack of power. Okay, we’ve got that to look forward to. Read the story out of MSN. It’s fantastic because it talks about how we could basically have no power in certain parts of the country. Okay, go get that Rivian.

Go get that electric car. Hurry up today. Go do it. Final story is, I’ve talked to you guys about food at the dollar stores before. How about this one? Ground cinnamon at the dollar general and dollar tree that found traces of lead, little sticky lead, in your cinnamon. So once again, the problem with these dollar stores is they’re not regulated like other stores are. They’re really not. And the stuff gets shipped in from all over the world.

And now you’ve got lead in cinnamon. Okay. Grandma’s cookies are heavy. How come I can lift up grandma’s cookies with a magnet now? You know what I mean? I don’t think lead works with a magnet. But anyways, just sounded good. Please don’t forget to hit the like button. Please let me know what you think about the real estate commission situation. And also, I’m telling you guys, this is going to be such a great report that people are going to reference for years to come.

Okay, read it below because it’s great. It’s solid gold, 42 pages of just pure love and lust. And it’s just one of the greatest things I’ve read in a long time. But it talks about the math, it talks about the science of what these people are paying for. And the ones that are paying are you and I. So talks about the lawsuits, talks about how people felt duped, and you haven’t seen anything yet.

Here’s the other thing, is, you’re starting to see lawyers around the country. Hey, did you buy a house and felt you didn’t make enough money. Let’s go after your agent. Okay, so you’re going to see lawsuits like that. Please don’t forget to hit the like button. Subscribe to the channel. You want to get a hold of me? Hello at I allegedly. Onward and upward, guys. I’ll see you soon.

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