Building Wealth and Success with Barbara Corcoran

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Interview Transcription

ADRIENNE: 
Welcome back, and thanks for listening to the Team Lally real estate show home under guaranteed sold program, or we’ll buy it. I’m Adrienne and I’m still Attilio, and if you have any questions, just give us a call at 7999596, or check us out online at Team Lally com. Hey everybody.

ATTILIO: 
Our guest today is the business icon and star of Shark Tank. Did I say Shark Tank? Yeah, I said Shark Tank. With just $1,000 she built her real estate empire and became one of the most influential entrepreneurs of our time, earning an Emmy along the way. She’s

ADRIENNE: 
here to share her expert advice on navigating the real estate market building well. Goals and achieving lasting success. Let’s dive into our conversation with the incredible Barbara Corcoran,

ATTILIO: 
Aloha, Barbara, thanks for hanging out with us today.

ADRIENNE: 
We’re really looking forward to connecting and learning more about you.

BARBARA: 
Thanks for having me on with you today. Adrienne and Attillio, happy to be here.

ATTILIO: 
Many homeowners have found themselves in a tough spot. They’ve either outgrown their home or fallen out of love with it, and want to make a move. However, the low interest rate on their current mortgage has created little golden handcuffs. Barbara, how would you suggest these homeowners navigate the situation?

BARBARA: 
Well, honestly, I have a couple of thoughts that I think would apply to most homeowners. It’s no fun to hang on to a low interest rates when you don’t like the place. You’re actually getting for the low interest rates, now might be a very, very good time to sell. I say that because the Fed is lowering rates to the tune of five 6% which always creates a lot more buyers who are willing to pay more money with that savings, they’re willing to take on a house with a little higher price on it. And sellers should know that now might be a good time to sell. Prices will inevitably go up quickly right now, and so you want to grab that window and get a good price for your home while you can the experts agree that the super low rates you might be enjoying of two to 3% that a lot of people are still waiting for will never come again? And I agree with that wholeheartedly. Last I like to ask myself, when I’m in a place picture myself in this home for the rest of my life, is that really where you want to be? It’s a very honest question to ask yourself, and if it’s not what you picture yourself doing absorb the little higher interest rate which is now affordable, and move on.

ADRIENNE: 
Barbara, why do you think that real estate remains a valuable investment to both individuals and families? For

BARBARA: 
the most part, nothing has really changed over the years in that most Americans prefer to own their home if they could possibly afford it. For most Americans, when it comes time to retire, their real equity is only their home. It becomes a nest egg that they lean on to get the retirement home they really want. All Americans still dream about owning a home. All Americans are still finding a way to find a home when they can afford it, and there’s something to be said about buying the smallest home in getting in the game, even if it’s not your dream home. What happens then is you have a chick to trade up on over the years in the marketplace without getting that first home early, it’s very hard for them to get into the game. What’s

ATTILIO: 
your take on the new rules regarding real estate commissions? Well,

BARBARA: 
everyone would agree in the industry and outside the industry that it’s added a lot of confusion up front, but actually the difference in the end, is very little difference. Still, today, 90% of buyers and sellers use agents. That’s not going to change dramatically, but the biggest change is the way real estate agents are paid. Now, you and your buyers agents must agree on compensation on the front side, it must be in writing, your agreement with your buyer agent can be non exclusive, however, which a lot of people don’t realize, you could be non exclusive, and it’s giving each the buyers themselves an opportunity to negotiate the commissions a lot more. But in the end, it winds up being pretty much the same. You’ve

ATTILIO: 
lived through many real estate storms. How do you keep sellers from panicking about the market? I think

BARBARA: 
it’s quite normal for people to panic about the market. When it’s going down, starting to tip a little. They’re paying a lot for real estate. Prices are high. Real estate is high. It’s a choppy decision, and it’s hard for a lot of people, but for me, I’ve seen it all. I’m old enough to say I really have seen it all. I’ve lived through sky high interest rates of 18% selling in New York City when the city was going bankrupt, and still, the market came up, and everybody was whole in the end, with the pandemic rates of two to 3% everybody said they wouldn’t buy again until rates came down that cheap, and they’re nervous about it. But today, people are buying again. In the end, real estate always goes up. I spent all my money on real estate over the years, and I have not ultimately lost any money and made a lot of money. Rates of five to 6% today seem to me like a bargain basement cheap. There’s

ADRIENNE: 
more a million dollar homes than ever. What would you tell first time home buyers trying to navigate this market.

BARBARA: 
Prices are not going to come down any day soon. It’s very, very hard for young people to get into the market when they entering prices a million dollars, that’s a steep price. You should know that most people buy their first home with the help of their mother or father, and there’s no shame in asking for help. I think the best approach to your family is to offer them a partnership in your home, that when you sell, you give them that percentage that they gave you back based on your new sales price at the time you sell. It’s good to remember, too that your first home is never your forever home. It might feel that way when you’re buying, and you might be particular about what you’re buying, but it’s really just getting you in the game early to have a home to train. It up with by the way, the best deals today are still in every market. The two family home, you can use half the home and have your tenant upstairs or downstairs pay the mortgage. Congrats

ADRIENNE: 
on the recent Emmy Award. Any dirty little secrets that you want to share about this season? Shark Tank?

BARBARA: 
Of course, you know the Emmy was thrilling mostly because it was great timing. It was Mark’s last season, and for me, I felt like I was losing my big brother. He was leaving, and that sad feeling we all get with situation like that, but it was a happy leaving. And so we came into the sets filming with great celebration this year, you’re going to see a lot smaller deals on the Shark Tank set, and I think that’s a great thing for the show. It’s almost like we’re going back to our roots. You’re going to see street smart entrepreneurs with nowhere to go to get money, and really needing the cash to get started. And I like that kind of buyer, because I’m always on the set looking for someone just like me who needs just one lucky break.

ATTILIO: 
How does your advice to entrepreneurs now differ from three to five years ago. The major

BARBARA: 
difference today is that social media is the name of the game. I no longer buy businesses, even on Shark Tank that aren’t strong in social media, because I realize it’s like buying a business without legs underneath it. Social media is no longer an extra. It’s actually an essential, and if you don’t do it, well, I tell entrepreneurs, they have to hire someone else to do it. My gosh, everyone knows a high school kid who’s good at social media could be trained on social media, but most people hold on to it as the head of the firm, and it’s definitely a mistake that everyone is making. You should find someone else to do your social media and report to you. Social media is the name of the game

ADRIENNE:
before Shark Tank. What was your number one way to grow? Well,

BARBARA: 
well, contrary to money managers and my accountants advice, I put all my money in real estate my whole life. Why? Because it’s something I know well, and I feel I can do very well with so why would I want to invest in something and totally trust another individual in the area that I know nothing about real estate has made me rich. I made more money buying real estate for my company offices through the years than I actually did selling my real estate company. I was kind of surprised by that. I didn’t expect that, but that’s exactly what happened. Real Estate is a slow way to get very, very rich, and for people that don’t understand that, you’re losing a heck of a lot of money,

ADRIENNE:
and then what’s the number one tip that you have on maintaining that? Well,

BARBARA: 
well today, most people would say I’m very, very rich, but I don’t think I’m rich enough. I still buy real estate again and again and again.

ATTILIO: 
Barbara, thank you so much for your most valuable resource, your time. We really appreciate it,

ADRIENNE: 
and come see us in Hawaii

BARBARA:
sometime. Thank you. Adrienne and Attilio, I might take you up on your offer to visit Hawaii sooner than later. And if I were buying a home in Hawaii, you too would be the only agents I trust you really know your stuff.

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