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Derek Werenka, real estate, REO assignments, REO business, volume, weekly reports, drive-bys, photos, BPOs, occupancy checks, listing payouts, investors, repairs, invoice requirements, area managers, negotiation skills, interest rates, economy, pent up demand, Metro Detroit, Tri County area, buyers, sellers, market season, M1 Realty, technology-driven, prospecting, value, leads, database, mentality, residential business, holiday season
Welcome back to Principles Based Business with "G" The Success Boss! In this episode, we continue our new series, discussing the 'Have-To' Economy. This week's special guest, Derek Werenka, is a seasoned real estate agent with 20 years of experience in the industry. Derek shares his insights on the dynamic world of real estate, particularly focusing on the REO (Real Estate Owned) business and the importance of nurturing potential clients. He provides valuable advice on negotiation skills, the current market conditions, and strategies for success in an increasingly competitive industry. Join us as we dive into Derek's wealth of knowledge and gain actionable tips for building a thriving real estate business. Plus, stay tuned to learn about Derek's experiences in navigating the ever-changing landscape of the market and his thoughts on the future of the industry. You won't want to miss this episode! So, let's get started and welcome Derek Werenka to the show!
01:31 Bartender turned real estate investor achieves success.
05:18 New agents fear negotiation; people got lazy.
07:39 Experts and UWM predict interest rates will stay elevated, taking time to decrease. Overall economy is not a major concern. Unemployment is low and GDP remains steady.
12:26 Holiday season: planning and training for agents.
13:18 Cutthroat market, limited buyers, low inventory. Basics and prospecting are key.
17:23 "Don't concern myself with it, just noise."
21:52 Real estate market divided, brokers thriving or struggling.
26:15 Lots of assignments, mostly REO listings.
26:58 Starting own company, giving up REO business.
31:56 Limited REO agents left; more opportunity.
33:45 Build relationship with asset manager for success.
36:28 Finding Guillermo's group was the best thing.
I. Introduction to Derek Werenka and his career in real estate
A. Getting into the REO business from the start of his career
B. The volume of work required for success in the REO business
C. Supplementing business with individual listing payouts
D. Difficulties with getting reimbursed for repairs in the REO business
II. Opportunities in the REO business
A. Banks swapping out area managers
B. Learning negotiation skills during downturns
C. Predicting a market phase where negotiation will be possible again
III. Market conditions and outlook
A. Elevated interest rates and their impact on buyers and sellers
B. Confidence in the economy and pent-up demand
C. Predicting interest rates will eventually come down
D. No specific season in the Metro Detroit market
IV. Changes in the real estate industry
A. Transition to technology-driven processes
B. Increased speed of transactions and complexity of paperwork
C. Challenges faced by newer agents in negotiating and low offers
V. Strategies for success in real estate business
A. Providing value and emphasizing negotiability
B. Prospecting and generating leads through phone calls
C. Leveraging existing contacts in the database
D. Motivating agents and pointing them in the right direction
E. Maintaining a positive attitude and mentality
VI. Transition out of REO to residential business
A. Limited brokers still handling REOs
B. Focus on listings, marketing, and accuracy
C. Building relationships with asset managers
VII. Market slowdown and preparations for the holiday season
A. Planning for a slowdown and focusing on long-term goals
B. Higher inventory compared to last year
C. Dealing with a cutthroat market, limited buyers, and low inventory
D. Prospecting and hard work as key to closing deals
VIII. Changes in business strategies and current success
A. Focusing on prospecting and phone calls to the database
B. Experiencing a strong Q4 and the best quarter in 20 years
C. Average price point and consumer sentiment
IX. Impact of lawsuits in the real estate industry
A. Lack of concern about lawsuits impacting business in the short term
Lazy Agents in the Real Estate Market: "Honestly, probably the number one thing That I've noticed is, a lot of agents and a lot I don't know if it's the buyer or the agent. A lot of these agents that are that are newer, won't they're they don't negotiate as much. They won't they won't they're afraid to write that lower offer, you know, even if, You know, I've got a seller that that's been stubborn on the price, but they're negotiable. You know, it's like, you just tell them, hey. Just they won't write 10, 15, 20 grand under on a on a house where I have no problem insulting a listing agent all day long and and just lowballing the hell out of houses."
— Derek Werenka [00:05:18 → 00:05:51]
Interest Rate Predictions: "Everybody thinks that interest rates are going to stay elevated. They're gonna they're gonna come down, but it's not gonna be, You know, it took a, you know, a a a year and a half for them to get where they were, where they are now. It's probably gonna take another year and a half to go back down to you know, something that's that's more reasonable that people are happier with."
— Derek Werenka [00:07:52 → 00:08:10]
Real Estate Trends: "Yeah, we're about a week and a half away or 2 weeks away from everything stopping for about a month and a half."
— Derek Werenka [00:12:27 → 00:12:31]
The Cutthroat Real Estate Market: "I mean, this is, it's a it's it's about as cutthroat as it gets right now. I mean, there's a limited number of buyers out there that are able to perform and willing to perform."
— Derek Werenka [00:13:18 → 00:13:27]
Best Q4 I've Ever Had: "I've had I'm gonna close it's almost $2,000,000 in the in In a 10 day span up until tomorrow. So, you know, we got a lot of stuff under contract. I mean, I'm just having having the, Honestly, like, the best Q4 I've ever had in 20 years right now."
— Derek Werenka [00:14:51 → 00:15:07]
The Impact of Legal Issues on Business: "From what I can tell, the way that they rep...the jury got a very huge version of what we actually do and how this industry actually functions."
— Derek Werenka [00:17:23 → 00:18:17]
Value in Real Estate: "I mean, I think what we what we've the way that I've trained them up and the way that that we run our business, We're already bringing a ton of value anyway, so there's not really a whole lot we could do differently to to provide more."
— Derek Werenka [00:19:16 → 00:19:27]
Starting a Successful Real Estate Business: "By that time, it was kind of fading away anyway. So it was a pretty good time to jump in and start my own thing."
— Derek Werenka [00:27:19 → 00:27:22]
The Changing Landscape of REO Agents: "None of those big REO agents. Like, that's I think where I where I was able to transition out of REO to to For the most part, a lot of these guys weren't, and they were just sitting there fighting over scraps for, like, the next 2 years after I opened up my brokerage. And Those guys aren't like, none of those guys do, you know, private you know, just residential business anymore at all. So, the For the most part, at least what I've noticed is there's only a few of us that are still around for back then that are handling REOs right now, in this market. So I I have to imagine it's the same, you know, across the country. If not even we might even have more opportunity because we're ground 0 for REOs for years. So there's a ton of really good brokers that that that had REO businesses going here, And I don't think that was the case in a lot of the countries. So I think yeah."
— Derek Werenka [00:31:56 → 00:32:48]
Building Relationships with Asset Managers: "And, you know, it doesn't hurt to be chummy with your asset manager. It's like the 1st time you get an assignment for somebody new, just reach out to them and be like, hey. If there's anything else that you need that I can do for you to make your job easier, you just say the word. Because they don't hear that from anybody, usually."
— Derek Werenka [00:33:56 → 00:34:07]
Success is built on principles that transcend niche and industry. Our goal is to teach these principles to the masses so that success can be reached by those who want it and are willing to put in the work. Hoping isn’t a strategy, wishing isn’t a gameplan, and only discipline will deliver results. - G The Success Boss
