It’s absolutely blowing me away. The first story is out of Yahoo. It’s about the National association of Realtor. It’s entitled Rigged, quote Unquote. Federal US court awards $1. 8 billion in damages after major Realtor firm Realtor. I always mispronounce it. I was a horrible real estate agent. Just so you know, because I’m an investor mindset, I’m not like an eternal cheerleader. This is always going to go up like you need to buy.

Right. I was horrible. And little digress, I only became a real estate agent because I owned a brokerage. Again, not a broker, I am an investor. So I built a brokerage, got a broker of record and I finally had to go to negotiate. One of our large was what, $23 million property or 32? I don’t remember. A lot goes out the window. But I had to go become an agent just so I can get into these negotiations as they are falling apart.

But it blows me away how some agents just think eternally the market is going to go up. Now there are a ton of really good agents out there and when I say a ton, I’m referring to about 5%. 5% of the agents out there have actually been agents long enough to go through the last crisis. Let me know if you’re an agent down below and, and you’ve been around for this long, you’re going to be able to agree with me.

They’ve been through the last crisis so they’re telling their clients now. And I get emails from them all the time, do not buy. This isn’t the time. And if you’re going to buy, you could buy, but you better buy. Right. Buy the right property, you’re going to hold onto it for a while. The payment’s set, everything’s solid. We’re about to have a bumpy experience. Well, this lawsuit that happened, you have to remember, first off, it’s only in a handful of states and now it’s set up case law.

And I can guarantee you as much as this news article is going to tell you that the agents are going to repeal this. Okay, that’s not going to be that good, because on the other states, their attorneys already gearing up right now to go sue for damages as well. All right? And that essentially, I’m going to explain this real easy. They say that it was illegal or they were coerced.

Sellers of homes were coerced and forced by real estate agents to charge them five or 6%, and that knowing when they charged them the five or 6% to do the sale of their home, that half of that was going to go to a buyer’s agent. And the lawsuit said, hey, you forced us to pay for a buyer’s agent. You shouldn’t have been able to do that. It’s a big deal.

This is an earthquake. Magnitude 8. 0 on the Richter scale when it comes to the real estate industry. All right, so it says here that 1. 8 million in damages were awarded after major real estate firm was found or firms were found guilty of conspiring to inflate commissions on home sales. And it turns out that that was just the beginning. So it says here, the National association of Realtors Legal woes have gone from bad to worse.

A new federal class action lawsuit has been filed in South Carolina alleging that the NAR and prominent real estate brokerage firm Keller Williams colluded to artificially inflate the agent commission rates, increasing costs for home sellers in the state. So did you know this lawsuit is different than the one that was awarded a little while ago? It’s a big deal. So it’s already spreading across the country. This is just one symptom to the health of the entire market in and of itself.

And what definitely made this worse was as home prices went up in this last run up, and they’re going to come down a lot. And if you want information on how to get ready for it, real estate crash course down below, how to prepare. Right now it’s $199, 80% off. But my point being is that as home prices gone up, sellers look at that five and 6% commission that they had to pay, and they’re like, holy cow, what are you doing for this? Well, I’ll tell you what, they’re doing the exact same workload that they did in 2006, 2008, right, for the same percentage.

But they’re getting a lot more money because the price of the home is so much more. So that is what made a lot of these people even more upset, and it helped their lawsuit. Now, something else I want to explain. It’s a lot easier to sell a home today. Than it was back then. The reason why when I was investing in real estate in 2001, 2002, we had the Internet, but we had nothing like it is today.

We didn’t have social media. It is so much easier for a real estate agent. Sit there and go, hey, how are you doing? Awesome house. Check it out. Little walkthrough. Oh, a 3D walkthrough with the cameras. Now you don’t even have to show up. And you can check out Google right now and you could see how crappy or how awesome your neighbors would be. Let’s go check out their backyard that didn’t exist.

All right, so a lot of people are going, holy cow, we’re paying you how much? I had a million dollar listing and 6%. Boom, $60,000. That’s what I would get on a million dollar listing you put down if you think it’s worth it. It was awesome. All right, here we go. But I didn’t last very long because I kept talking about this crash and all this stuff. Anyway.

All right, here we go. It says here the lawsuit filed on November 6 seeks class action status for all home sellers in South Carolina who used a listing broker affiliated with Keller Williams and listed their home on one of the NAR’s multiple listing services since November 2019. Hey, quick Pro Tip, if you’re looking for real estate right now, use realtor. com. There’s over 600 MLs around the country.

Zillow and Redfin. They’re not the best. They are not the best aggregator of the data. Even Realtor. com doesn’t have Everything, but it’s owned by the same people that own the Wall Street Journal. They are the best. They have the best snapshot. Just a little pro tip, okay? When you’re looking for property. Oh, another thing is everybody that owns the real estate crash course, I sent out an email the other day for a special offer because the bear market course is coming out, and I need you to get to that if you want it or not.

No problem at all before Thanksgiving Day. Okay. So go check your email boxes. I’m already getting people that said I didn’t get the email, and they go, oh, I got it. All right, here we go. In Missouri’s case, it said, oh, wait, hold on. It follows hot on the heels, this lawsuit of the landmark ruling in Missouri, which found the National association of Realtors and some of the nation’s largest real estate brokerages, including Home Services America, which is owned by Berkshire Hathaway.

It’s going to show up in their quarterly filings this is so sweet. And two of its subsidiaries, Keller Williams Realty, guilty of conspiring to keep commissions artificially high. In the Missouri case, the federal court awarded 1. 8 billion in damages, which could be tripled to more than $5. 3 billion, according to Reuters. If the realtors are found to be to have breached US antitrust law, you are going to see bankruptcies filed over this.

If it gets that big, you watch says, what’s the deal with the broker? The lawsuits in Missouri and now in South Carolina are all about real estate broker commissions, which typically total around 5. 6% of a property selling price in the US and are often split 50 50 between the buyer’s agent and the seller’s agent. And just so you know what they’re highlighting too is, hey, a lot of these times you said, hey, you got to cough up 6% and that, I’ll split this.

I’ll split this with a buyer’s agent if a buyer comes in. So you’re good. So it’ll attract more buyers, right? Because they all have their own agent. I’m not getting all that. Do you know how many times I’ve seen in the last four years the abuse? And California has tried to hammer this down, the abuse of the coming soon listing. Do you know why the coming soon went on there? Agents got real smart and they said, okay, we’re going to sign this agreement.

Such an awesome property. I talked them into selling it super fast for a super cheap price. And then they go, I’m going to get this listed next week. And then they post a photo, a single photo of the home for a reason. And they go, coming soon. And it’s not listed out there. For the other brokers, I would get ticked. I would call them up and said, I want to show it.

Oh, it’s not ready yet. No, I know what you’re trying to do. Say, I’m an investor. I know what you’re trying to do. What’s happening is you’re now using the MLS to get a bunch of activity or you’ve got a sign listed and California has hammered agents for this and brokers, but it still happens. They get people calling, say, what’s the inside look like? Oh, I could show it to you and, oh, are you working with a seller, an agent? Oh, you are.

Oh, bummer. You know what, this isn’t on yet. I’ve got some things. Oh, someone else is coming and then they end up selling it and they double end the deal. And those kind of deals are coming up in court. You watch. This is exciting because this is going to throw the entire ecosystem of real estate investing. And that’s why I focus on the emotion of the buyer and seller in real estate courses, because that’s what causes a bubble to be built or a bubble to pop.

Emotions. Nobody teaches that stuff. At the heart of the complaint are several NAR policies deemed to have wrongfully impacted completion or, sorry, competition among real estate brokers, including one rule that recommends multiple listing services conceal the total Broker Commission offered from prospective property owners, our sellers. It’s funny because I teach a lesson in the course how I used to offer 8% commissions on flips. It was crazy. I’m just going to divulge this.

I would offer as a seller, I’ll give you 8%. And I said, but here’s the deal. I want the buying agent. Sorry, it wasn’t 8%. I apologize. What was my number? What was the highest I did? It was 6%. Offered 6%. I said, I want my listing agent to get 2%. I want the buying agent to get four. So they would list that on the MLS. And so I was still giving out the 6%.

My agent was totally cool with it because, sorry, I screwed up the numbers because he worked on so many flips with me. He was just turning and burning. As a matter of fact, I was doing more of the offers and the listings than he was at a certain point. And this was a long time ago, way before I was a real estate agent. And so I would see piles of business cards on the counter of my flips because every agent out of greed would show my house before they showed anyone’s home.

I sold them fast. Those days are coming back. There’s nothing illegal about it. And so my agent agreed to it. He took less of the deal and gave more to the other agents. And he had to work way less. He had 20 agents calling on my listing as opposed to someone else. He didn’t have to do a lot. He didn’t have to do an open house. Just a little fun, little tidbit there, a little tip.

Here we go. It says here the plaintiffs in the successful Missouri suit argue that these policies have severe anti competitive effects and make no economic sense except for the buyer broker who would technically steer buyers toward properties that offer a higher commission, which homebuyers ultimately have to shoulder. See, I covered that in my deal because I gave more and my agent gave more my broker to the other people.

Automotive professionals in performance. Thank you so much for the super chat. You gotta love this. And it’s so easy to game the system and do it legally and crush it. The new Southern California lawsuit, Carolina. Oh, gosh. Ninja. Get it together. The new Southern Carolina lawsuit states the effect of these rules is not simply that the seller must pay the buyer’s broker commission. These rules effectively take the compensation structure out of the view of the buyers and sellers, masking who pays the buyer brokers compensation.

Indeed. Here’s a quote. A buyer broker may not even present an offer to a seller that is conditional on the seller reducing the buyer broker commission. Look, the fact of the matter is our real estate market is turning. And I don’t care what CNBC says because look at this. This one’s out of NPR. This can’t make this crap up. Tough housing market is luring buyers without kids and higher incomes.

No, that is like the greatest wordsmithing ever. I’m going to read this again. Tough housing market is luring buyers without kids and higher incomes. All right, let’s break this lie down. This is what it says it right here. There it is. All right. No, a tough housing market is not causing buyers without kids to go, ooh, it sounds like a great time to buy. No, the fact is nobody with kids and low income or immediate to moderate income can afford a house right now.

That means the market’s going to crash. I am a lot more professional on my courses, and they’re edited, but you got to laugh at this crap. It’s so easy to see. And like I said, there’s this little bubble popping up in this next couple of months about this euphoria. The market’s going to be good. I bet you, I bet you the ten year bond comes down to 4%.

That means that mortgages hit like 6. 8 and everyone’s going to be, yes, just smoking. And then the only people that are going to refire, the ones, the crazy ones that got a mortgage in the last, like four months, and then it’s going to go and get ready for that. By then, I will be no longer offering that course for sale. It will go up by five times its cost at minimum.

And so if you want those links, it’s $199 today. And to everybody that owns that course, I have a special offer for the next course that’s coming out before I release it to the public. And it’s going to be a lot. And I’m not joking because I sit back and I go, can I show people how to save a lot more money on their next home, whether it be their personal home or their rental through these courses way more than they paid for it.

Yes. All I’m looking for is a double. That’s all I ever looked for in anything I ever spent money on a book, a course, anything. Can I double the amount of money I spent on it? Yeah, I can guarantee that. That’s why I give a guarantee, a 14 day guarantee. And then after that, after the first of the year, I will have gone one year to offer it to everyone.

And then I’m honing in on very successful, very serious mindset, type of person, a type of investor, because this stuff’s going to get real and it’s going to get real fun. But we need real serious people that are going to take advantage of this, not people are going to be scared. Hope you got that. Got something from that. The economic. Dang it, I’m a real estate ninja. I keep screwing that up.

This channel’s blowing up. Thank you so much to everyone. The real estate ninja is out. .