Gabriel Flores 0:00
In Progress. Hello everyone and welcome to the shades of entrepreneurship. This is your host, Mr. Gabriel Flores. Today I'm here with a luxury real estate agent. I'm really excited about this one because we actually already started. Nathaniel Kessels How are we doing boss?
Nathaniel Pitchon-Getzels 0:17
I'm great. How are you?
Gabriel Flores 0:18
I'm excited I'm we've been chatting we were we started talking about things after the show. So But first, let's let's introduce the world to Nate. Nate. Give him give him a little background. Tell him who you are, where you're coming from let the listeners know who Nate
Nathaniel Pitchon-Getzels 0:32
is. Absolutely. Well. You know, I am a real estate. I have a real estate team here. It's now part of compass here in Calabasas. So beautiful Calabasas, California. And, you know, I started in real estate about 12 and a half years ago or so. And I did that because, you know, I have been a teacher, and everything that I did had to do with and everything I still do has to do with what can I bring to the table? What can I add to the conversation? What can I add to the interaction? So you know, like a lot of business people, they go to all these events, and they think, Okay, I'm gonna go network, let's see what I can get. Let's see what I can get. Well, I have a completely different mindset. It's what can I bring? What can I add? How can we build what can we build? How can we collaborate? Right? What what value can I bring? So I've taught my level of school from preschool administrator up through college, been a behavior therapist and all these things in education. And I was finishing my master's finishing my thesis. And I went, you know, this all sucks. It sounds horrible. Number one, I'm, I realized that everything from the fundamental base of our education system is wrong. And it teaches everything that is literally the antithesis, the antithesis of entrepreneurialism, right. So they teach you to work hard, that's wrong, you should work smart, right? They teach you to get a good job and get a good salary. That's wrong, you should be building wealth. They teach you to get out of debt, that's wrong, you should be leveraging your debt. And they teach you not to copy or pay attention to what your peers are doing, which is also wrong. We don't need to recreate the wheel, we just need to help it spin a little better. So what we should be doing is looking at what everybody's doing, and figuring out how to collaborate or do with them or, you know, work together to make what they're doing better. So literally, everything from the education system is opposing to if you want to be an entrepreneur, so I couldn't in good mental health, a Stan that system B, there was no money to be had in that system realistically. So if there's no money, and you don't believe in the system, then why am I there? Right? It just seemed like a punishment. So what I did is, I looked at all the things that I loved, right? So my dirty little secret in the middle of night, I looked around, no one was looking at top open My Computer, and I would start searching. And I find the most beautiful sexy houses you can imagine. All over Zillow used to be my jam came out, you know, it was like, I didn't want anyone to know. And I was like, Okay, let's go love it. And then and I studied where people live, where, where they move to why they move when they move. And another like, little nerdy desire and love of mine is learning about how cities grow and why they grow. And you know, how they became the way they are now. So I did that I already studied the trends of real estate as well, because I think that's fascinating. looked at houses, loved houses. So I went okay, well, I still want to help people though. So I want to help people grow. And so for most people, real estates, still the largest financial investment they're ever going to make. And if they do it correctly, they will set up their family for literally generations to come of having generational wealth. And so I thought, well, there's no way I can help people better than that, because financial stability creates all kinds of opportunities that most families never get to enjoy. So that and even my clients where it's not their largest purchase, because strangely enough, I have several of those. It's still an important financial wealth building tool for them. So I'm still able to help guide and, and assist there. So I wanted to combine all of those things into something that, you know, was a business because I wanted to own my own business. And obviously, while everybody says you do it for the passion, that's great. And that's true. But I'm most passionate about laying on the beach with a margarita my hands. So if I didn't need money, I that's what I'd be doing. So you know, this is a great mix of all the things that I love. And I actually really do get excited about, you know, a lot of aspects. And now I'm being added to all these different boards, and advisor ships that are within the sphere, which is really, really interesting and exciting. So I literally dropped what I was doing. And it's one of those things where you make a decision in a short amount of time. But it's a life changing decision. It literally changes every single thing about your life. The only thing that it's even similar to is like if you decide to have a kid or not have a kid. It's like that decision, the decision time that you took might only have been in a short amount of time. It might not even have been that well thought out. But there was thought put into it. But it changes absolutely everything. Yeah, so I literally dove headfirst in 2010. You know, which was the last huge crash, we were still in the last big crash. When everyone was running in the streets and get out of real estate Get away, you know, real estate's dead, it's the end of the world, etc, etc. That's when I was like, well, that's, that's a logical thing to do. I'm gonna go straight for where everybody's running from. And I figured if I could make it, then I could make it any time. And that was 12 years ago and never looked back.
Gabriel Flores 6:56
Now, you mentioned you're a teacher, what did you use to teach?
Nathaniel Pitchon-Getzels 7:00
Oh, I taught everything I've taught. Let's see, I taught science I taught. Teacher teachers had to build their curriculum, I taught. I worked for a short amount of time when I was getting certified as a preschool administrator and a preschool. In college, I taught human sexuality, marriage and family relations. All kinds of things. I mean, I worked as a behavior therapist for children with autism and other disabilities, which actually taught me certain things that I still think back to today. Like, for when you have a learning disability, it's usually a perceptive difference. So you're perceiving the world differently? Right? So the regular stimuli are either amplified or dulled, or there's something very different about them, right? So the world can be a very scary place very quickly and overwhelming. So one of the things that I found and really, the key thing is I had to attune with my students. So that way, when an experience was becoming overwhelming, or scary or too much to handle, if I had built that that relationship, right in tune with my student, they knew they could look at me and I could be a trusted source for them to bake a kind of look at and check back or am I okay? Am I not? Okay? You know, and that's something I still do today, even with my clients, and the people I work with and other agents I work with. I mean, you know, Chris Voss calls it tactical empathy. Mark Olson calls it listening in. Some people call it feeling the flow. One of my favorite clients, he calls it, feeling the vibe, you know, so, but really, it's, it's building that connection. Right, which if you establish an emotional, psychological, and somewhat intellectually based connection with anybody, but especially the students, there's that higher level of trust. So when things get tough, right, like, if you're in a deal with somebody, and it's not going well, or they have a challenge with their house, or a challenge with their finances, or whatever it is, if that trust is built, then you become a resource, and that relationship becomes kind of like your currency, versus if you haven't, and you're a replaceable commodity. Right. So so that was a very important thing that I learned during my educational journey. Right, and, and there's many things that I've gotten to pull over. But that one directly I think I use every day and, and I remember the moment that I understood how important it was, and I've never forgotten that. Nice. I don't know if that was your question,
Gabriel Flores 9:58
but now why you You know, you kind of mentioned your starting education, your went into real estate, why did you run into real estate when everybody was running away?
Nathaniel Pitchon-Getzels 10:09
Well, I looked at all the things that I was passionate about, right. And I know not only passionate, but it's a operational passion, right. Because if you're just doing things that are passionate, it's like you're drunk, and you don't make the best choices. But if you take what you're passionate about, and then create a system to it, or an operation, and lot and you do so in logic, then it's something amazing, powerful and special. Without the logic, or without the passion, you're gonna have a real problem on either one of those sides, but you you tied the two together, now you have something special. So I looked at all the things that I was passionate about, which was helping people, real estate, studying the trends, helping people move, understand where people move. And I put it all together. And the only logical thing that I could see myself doing was real estate at that point. And so, you know, like Warren Buffett always says, you want to go towards where everybody's running from. So that also, it was perfect timing, because everybody was running from it at the time. And I thought, well, there's I still could see the value there. Right? There's still real value. And I don't know I didn't he didn't turn on. That's weird. Do Not Disturb is already on. Sorry about that. That's fine. So but so I went straight for it. Because it was all the things right, it was everything I was passionate about. Plus, it was where everybody was running from. So there was real opportunity there. And also, there's less competition. And I figured if I could make it, then I could make it anytime. And so it was a sink or swim. And I figured if I could swim, then I'll rise with the tide. And I'll learn and I'll be dangerous, more dangerous than than if I had started any other time, if that makes sense. Yeah.
Gabriel Flores 12:11
Now what what is your company's name currently? And do you have any staff that work under you?
Nathaniel Pitchon-Getzels 12:16
Yes, so I have a team, which is called get sales group. And it's actually now part of Compass real estate here in Calabasas. And I do have agents on my team that work for me. And I help them because the whole idea, a lot of teams, the agents become kind of glorified assistants, or are very dependent on the the team member like the team leader. And my whole idea is to, if I can educate them correctly, they can become super agents on their own. And just so in with my experience, and the tools that I've built on my social media following and my my social media tools that I custom built over the last 12 years, and also all the other great things that I brought together. And, you know, maybe their journeys is a little easier, but they can become a super agent, and you know, build wealth and be happy, you know, but sewn in to an already established framework. That makes sense. Yeah,
Gabriel Flores 13:22
yeah, no, how do you? So for example, when you're looking for an agent, what do you what do you look for?
Nathaniel Pitchon-Getzels 13:28
Well, you know, funny enough, I don't really look for agents, they find me, they find me constantly. And I'm more have to filter than anything. So the first thing we do is we have to I ask anyone who's interested, send me a resume and an application letter that they were right. And then read a couple books about real estate. And then we discuss what resonates in those books. And then we have a pretty detailed application and not applicant, but interview process. And then it usually culminates with them at me asking the question, what are you bringing to the table? Right? Because when I started, I thought, oh, I need to convince people why this is such a great team, why they need to come here and work with me. And then I realized, no, first of all, you're in the wrong people. And secondly, I don't need to convince anyone if I need to convince you, you're in the wrong place. Right? So figuring out because also it helps them to realize what they need to do to succeed. Right? Because we're, we're, you know, we're 12 years in we're not we're not holding people's hands, we're giving tools. But you know, we're not we're not here to baby you. So, if you want to come think about what value you bring and maximize that value, and if you want help maximize that value. Great. But if you don't initially know what you have to offer, you need to go back to the drawing board and do some deep thought. That make sense?
Gabriel Flores 15:09
Yeah. Now what? What tools? What kind of what kind of things do you can you provide? Or maybe some nuggets that maybe some, you know, brokers or listener agents listening? What are some things that they should know about the real estate game?
Nathaniel Pitchon-Getzels 15:23
Yeah, so it's a combination of things. There's a combination of executable items and a mindset, right. So the first thing is, like, the first thing that that a lot of even seasoned agents still don't get is you should be falling in love with the process, not falling in love with the deal. So don't, don't focus on a specific deal. Worrying about too much of a closes or how it goes. I mean, you want to know how it goes. But you want to fall in love with the process. Because then if you perfect that process, you can do another 10 deals, 15 deals 100 deals with the right system. But if you're falling in love or obsessing over one deal, you're basically tripping over dollars to pick up pennies at that point, right. So there's a mindset that has to do with it. And, and I always like to explain that the big difference between high producers and low producers is pretty simple. And it's that the high producers hate failing, but the low producers fear failing. And when you fear something, you run from it. But when you hate something, you you know, it's going to happen. But you do everything you possibly can to avoid it from happening, but you accept it as an inevitability. And you just when it happens, you use it to propel yourself forwards, and perfect your skill for the next time to delay the next time it happens. But you know, failing isn't a bad thing. I always tell people, you want to fail often and fail fast, right? fail fast and fail often because it gets you closer to the wind. So that's that's one thing. And then there's all these executable items, we have a great CRM system that has AI sewn into it. I mean, one of the reasons, I have my team here at compasses, they have the best tech tools, in my opinion of any other brokerage. So the basic tools are great. And then we build on top of those with our own expertise and our own assets that we've built over the years. So that's a big thing. But consistency consistently doing what works. So everybody asked me oh, what's the most effective marketing? Is it? Is it your insane social media platform that you've built over the last few years your following? And all the things you do? Is it email is it calling is a texting? Is it your sphere, what's the best and I always explain to people, it's the best thing is the thing that you do. And the thing you do consistently. And that's going to be your success in any business. The most effective thing is the thing you do and the thing you do consistently and regularly and perfect every day. Right. So, you know, the, like I do a lot on social media, but it's because I do it consistently and regularly. And I generate a lot of business. In fact, 12 years ago, I started my business at the time that the market was kind of in shambles. And I was from a very different standpoint, a lot of people come to real estate from a standpoint of background in finance, a background of numbers of math of something transactional, right, I came from it from a human development standpoint. So I built my whole business at the time, through Facebook, actually, in social media, which was really just Facebook back then. Because I found I was organically, almost accidentally connecting with people. And I had plenty of time and no money. So I built the whole platform through that and started generating a lot of deals. And you know, a few years later kind of organized real estate and, and agents figured out, Hey, this is where you need to be. But, you know, I had to do what resonated with me the same reason I went to real estate is the reason that I marketed uniquely because I had to do what resonates with me, otherwise it's not going to work. Right? If you're faking it, that's going to come through, people are going to feel it and they're not going to want to attune and connect and work with you because who wants to work with a fake? It doesn't. It's not authentic. You have to be authentic, and organic and creating authentic organic relationships is really the core of the business. Right? It's the core of most businesses where you're in essence, you're a service because I don't own the house. As I'm selling, right, my clients on the houses, but I don't own the houses, I don't, you know, I never take ownership of anything really, I'm a service. So you have to build the relationship to properly provide the service. So creating authentic organic relationships with your clients and with your sphere, and with your friends, allows you to establish authority, it allows you to achieve if you do it, right, top of mind awareness about a specific subject, in this case, real estate. And it allows you to become the resource and the trusted source. When anybody needs or thinks about that subject. You pop into their mind. I just had a call from someone the other day, who says, oh, so and so just referred to you. You know, we're talking about real estate and your name basically blurted out your name, almost out of reflex because you're the guy for him for real estate. And this is somebody who I mean, I've been friends with for years. But do I see regularly? No. Have I talked to No? Have I done a transaction with recently? No. But I achieved that top of mind awareness. So whenever he has somebody, he automatically shoots them over. Does that makes sense?
Gabriel Flores 21:12
Yeah. Now how, how difficult was it for you to kind of transition from being in the educational world to then in the real estate world?
Nathaniel Pitchon-Getzels 21:23
Well, I mean, every transition, hard things are worth doing. Right. So it was completely different. But luckily, I had some skills, some unique skills, that allowed me to create deep meaningful relationships with people that over time grew and has now allowed me to create a very unique client base of CEOs, celebrities, musicians. I mean, you name it, I've probably worked with them billionaires from around the world. Like, it's a very interesting set of clients that that I have. It's everything. I mean, I still sell inexpensive properties as well. But the focus is the high end. And so it was difficult, but worth it. Right. I think in stoicism they talk about you want to do as many difficult things upfront, basically, this is Bear phase, but so that way, when you get to truly hard challenges, you're ready and prepared, and you're strong enough for them. So you know, it was a lot of repositioning, understanding how to use skills I had, and convert them to new, new situations. It was not easy real estate is a very hard business to be in, get into stay in. That's something that, you know, you never see, like you see all these TV shows, it makes it look very glamorous, very easy, very wild. But none of that's real. And none of that's even the stuff people should be doing on a day to day basis anyway, most of it is not all that sexy, but it's valuable.
Gabriel Flores 23:01
Yeah, definitely no. What what what would what would you say has been easy, has been easy?
Nathaniel Pitchon-Getzels 23:08
Well, easy is an interesting term, I'd say. Once you realize that creating the relationships is important. Say it's fun. I don't know if I'd say it was easy, but creating new ways to do that. Like, for example, I have a company podcast COLA that books me on a bunch of podcasts. And it's literally the best way to authentically organically connect with your clients and and future clients and other people in large groups. But in a real way, that really is you. Right? So that's fun. Like this being on your show is fun. This is great. Right? You're wonderful. Like this is I'm having a ball. Right? But it was easy. I mean, being on a series of them. It's not like what you do your podcasts you how often do you do it? Once a week? Or once a week? Okay, and would you say that's easy? Oh, Jesus.
Gabriel Flores 24:10
No, because then you have all the marketing. You have all the newsletters websites? Oh, yeah, there's there's a lot of there's a lot of behind the scenes.
Nathaniel Pitchon-Getzels 24:18
But you enjoy it right. Enjoy it. Yeah, it's fun. Yes. So I would say, I don't have that many things that are naturally easy. Because I feel like easy things aren't worth doing in general. To point right. Hard Things are great, because the best things you do and the most productive and the most rewarding are hard. Yeah. But you get a lot out of them. So I feel like if something's too easy, I'm probably not doing it. Right. Yeah.
Gabriel Flores 24:44
You know, one of the things you're mentioning to your social media presence and what you've been doing and kind of how do you market yourself? How do you brand yours? How would you go from being you know, just being in real estate for 12 years to now working with, as you mentioned, billion dollar homes
Nathaniel Pitchon-Getzels 25:00
All right. Well, I mean, the social media art was a big a big aspect. And, you know, I started, and you didn't need any money. And it was, I wouldn't say that was easy, but it was easier than it is now. That's for sure. Now, social media has become much more challenging. And I had to do it, start doing it wrong for a while to figure out how to do it right again. Right. And so I kind of feel like social media. It's like a start where I'm like, I did a great, now not so good. Now great. And not not because the core things are change. I mean, the core things are, you want to be authentic, you have to be organic, you have to be real, and you have to be social. But now, strangely enough, you have to be more social, and less polished than ever. Yeah, good point. Yeah, for In fact, for a while I was doing these gorgeous, gorgeous videos. I mean, we had three cameras. We had lighting, we had the makeup, we had, you know, sets, we had costumes, we had everything. And it looked so gorgeous. And we started pumping out these videos and just nobody cared. Like at all, man. I mean, we had scripts we had like, I mean, literally, I'd be sitting at a camera, where there's 12. People like running around adjusting digital. And what I realized is that doesn't work anymore. In real estate in social media, because it's supposed to be social, it's supposed to be real. The reason that tick tock is one of the fastest growing social media platforms is because it's the least published. Yeah, right now, I still do two edited videos a week, every week, on my Instagram and a few other platforms. And I do photos, I do five stories a day. I mean, there's a formula to the way I do the social media stuff. But it's much more authentic organic, it's one camera, it's just me, there's no makeup guy, there's no lighting guy. There's just me and the camera, basically. And then it's a little bit edited, because otherwise, totally, nobody wants to see me dribble on for an hour. But some guy he takes what I organically I'm saying and just chops it up a little bit. So I sound elegant. I like
Gabriel Flores 27:21
it now what, what, what motivates you what continues what gets you up every day and continues to push you forward?
Nathaniel Pitchon-Getzels 27:29
Well, the ability and the possibility of helping more people, helping people build wealth. You know, I also am an advisor on several companies I was just added as the Board of Directors first company called the house lit house lit. It's, it's basically like a symbolizes a simplified version is Zillow. And Airbnb had a really pretty big, like a really pretty baby. And it's basically a simple few clicks solution to doing rentals. Largely it focuses on 30 to 90 day furnished rentals, but you could rent long term on there, you could rent shorter term, whatever it is, but it's it's a really beautiful platform. And that's fun and interesting. And, you know, it's there's new challenges in that, but it's still in the real estate space. But it's a new company. It's a new challenge, right? So that's kind of fun. Yeah, interesting. It makes my brain grow. I love doing things that make my brain grow, and help people at the same time, right. So I still love selling homes and helping people buy and sell properties and helping my agents grow their business. Because it's fun and interesting. And it like, makes my brain grow. But I also love these new projects, because they're fun and interesting. Right? So in essence, I love doing financial seeing things with good people. That's really the core of it. And luckily, I was able to figure out a business where I could do that a lot of a lot of time.
Gabriel Flores 29:11
Now let's let's let's flip it around. What what keeps you up at night as a as a business owner?
Nathaniel Pitchon-Getzels 29:19
Scaling faster, growing more helping more people. You know, I'm I've invested in properties all around the world. And, you know, some of them the projects at different times a day, China perfect some of the projects that I'm working on the businesses that aren't necessarily launched and going as well as some of the other ones, right? Because I'm always trying to do new things and grow. And a big part of it is not being scared of failing. So I do a lot of stuff wrong. Right? I do and I feel like that's a strength because when you're okay with doing things wrong, you opens up a whole new potential for growth and learning? Do I learn way more from the things I do wrong? And things I do, right? So the things I'm doing wrong are the pain points and different businesses and different growth points, or you know, how I can do social media and better or how I can help people more? Or how I can create more wealth for my family? Right? Those are the things that keep me up at night, for sure. What are things? Like? Are those good examples? Do you have a better example?
Gabriel Flores 30:30
Oh, that's a great, great, in fact, you know, one of the things you mentioned, you know, we learn from our mistakes, right? What, what would you say are the most common mistakes? As you know, speaking from a real estate perspective, what are some common mistakes like us, as buyers? I'm a buyer, I'm not a real estate agent or broker? What are some common mistakes you see us as buyers make in that we can probably learn from? Oh, there's quite a few.
Nathaniel Pitchon-Getzels 30:53
So the first one is, you really, people think they can do it on their own. Right? And it's kind of like anything, right? Can you sort of maybe do part of it on your own or, or think you can do it on your own, and then get yourself in trouble and then go for help short. But if you go, if you've been building the knowledge upfront, you will do it better, you will save more money, and you will have what you want faster, and you will be happier with the process. And you'll learn more. Right? So the first thing I have a lot of buyers call me and they're like, Well, you know, they are out of order with the process, or they get themselves in trouble with a deal. Or they waste a lot of time and energy, or they cost himself a lot of money because they think they can do it themselves. And I know that sounds kind of selfish and self serving in a way but statistically, I'm right. And functionally after 12 years, like when I started and people would like, oh, well, you have to talk to a realtor up front. You want an expert in the field? I thought it's kind of hokey. Right, yeah, sounds sounds kind of self serving, like I see all these videos online, and people get a realtor can have real good real estate religion. Yep. You know, a lot of it doesn't resonate, because a lot of it is self serving. But realistically, buyers need to get build a strong team upfront. And that means have a good realtor, have a good lender, right? Those key things upfront, are so important, because the lender will help you with your finances. And you should really be talking to a lender, six months to a year before you're ready to buy. That's That's what I tell everyone six months a year before you're ready to buy, you need to talk with the lender, even before you talk to an agent, you need to get your finances in line. Right. And that's the first thing I see people not do is they don't get, they don't understand the importance of getting their finances set up way ahead of time. Yeah, good point. And you can save 10s of 1000s of dollars by doing this, and it doesn't cost you anything. So there's that, then you're not getting a realtor, or just trying to save money on that side. Right? That's literally tripping over pennies to pick up dollars. I mean, sorry, tripping over dollars to pick up pennies, because you're gonna get what you pay for If so, if you get an experienced good agent, who you authentically organically, vibe, or or tune with, right, who you feel listens, is providing you value, you're going to be in a much stronger place than you don't and you're going to be getting better advice, you're going to be getting better guidance, right? Because in essence, this is a white glove service. So if you don't have someone who has good white gloves or giving you good service, you're already cooked. Yeah, as they say. So you need to build a really good team upfront. And part of having a good getting good guidance is really figuring out what you want. And so one of the things like millennials, for example, and first time homebuyers in general, the biggest complaint the biggest complaint in the first two years is wow, I never thought about how much this house costs to maintain. So there's a lot of focus put on your mortgage payment, right, your interest that you're paying your down payment. But a lot of buyers never think past that. And I had a woman She sold her house because she goes I'm selling my house like okay, well. But why? Why are you selling your house? You love your house? I love my house, but for the amount that it takes to heat my heat and cooling my house during the summer. I could travel Europe for the entire summer. Yeah. Right. So people don't think about that I had one guy. New homebuyer bought his first house. And he decided that he didn't have the money to maintain his sprinkler system for the internal sprinklers for the house for the fire safety system. So and I told him, you're gonna have to just do a yearly maintenance it's a few 100 dollars, it's gonna pay it back and space. He never did it never did it never did it one day I get a call. And he calls me and he goes, You know, I got a call. I'm, I'm out of town. I'm in Spain. So he's in Spain on a on a month long trip and Spain. And he goes, Yeah, so my neighbor called me and said, there's water pouring out of my front door. Mike, well, that, that doesn't sound good. Sounds like a problem. Yeah, so the plumber went over. And his fire safety system had burst and was flooding his house with about four inches of water. And this was a large house was about five 6000 square foot house. So can you imagine your lower floor? So you're figuring that's at least 4000 square feet of the house? With four inches of water? That's a lot of water. Yeah. So now your expense of the water, the repairs the damage to the house, getting fixing the system itself. I mean, it's a huge cost. But because he didn't feel he had the money to maintain the house and didn't put the money in it cost him quite a bit of money. A lot of people don't think about heating, cooling, just regular maintenance that the yard the pool. Termite, you have no idea the number of houses that go do that haven't had a termite inspection in 10 years, which that might not be a big deal where you are. But in LA, every, there's termites everywhere. So you need to do regular maintenance. Otherwise, there's going to be a huge bill at the end of that rainbow. Yeah, that's the point. So building a good team and then understanding the real costs, not not ignoring sleeper costs is super, super important.
Gabriel Flores 36:43
Nice. Now let's let's flip it. Let's let's I love to flip things around. What are some common mistakes agents make with you know, either selling or trying to help a buyer?
Nathaniel Pitchon-Getzels 36:55
Okay, so one is not getting to know the buyer, being as they say, buyers are liars. And that just means buyers don't really know what they want. Right? So I remember when I started in real estate, I had a client and they came to me and they said, Okay, we want a mid century, which is the style of house there has to be mid century has to have a pool has to have a pool non negotiable and has to be quiet. Right? Quiet. Oh, and single story single story has to be quiet midcentury pool. Okay. We looked at every house that that fit. Right, just those requirements, because those are crimes they gave me I was new. I just did what I was told. I do what I'm told, you know, I thought I didn't know better, right. And finally, there was nothing, nothing nothing. And the house we ended up with, I actually had sent to them by accident. Funny enough. And I just kind of started opening up the searches and sending stuff because I'm like, I don't know. I don't know what to do with them. And they ended up with a house that was three storeys. Modern, very large, no pool, above the freeway. And they loved it. They loved it. They were like, Oh my gosh, this house is perfect. And I said, you know, this house is literally none of the things you just described wanting. They said, it doesn't matter. This is everything we want. We want the size, we want the light, we want. Oh, this is so ideal. Oh my gosh, thank you so much for finding it. And so what I realized was, what I hadn't done, is really get to know what they wanted. I just listened to their words. Yeah, but I didn't get to know what they actually wanted. Right? It's about talking about why do you want these things? What is it you're trying to achieve with the house? What's the lifestyle? Because what people undervalue is where they live and what they live in, dramatically changes their lifestyle on a daily basis, in every mental, physical way you could imagine, in fact, years ago, I did a research project that was about who uses green space because it's established that is healthy physically and mentally. Right. And California specifically is important is interesting, because LA has the largest green space to urban border in the country. So I did a research project about it. And the number one thing can you imagine Can you guess what it is? Trees. What's that?
Gabriel Flores 39:40
Trees? That's what I'm thinking?
Nathaniel Pitchon-Getzels 39:42
No, no, the number one thing it wasn't about if they're healthy or not. It was about if they liked green space wasn't about the weather. It was just about access and proximity, don't you think? So where you live and what you're close to dramatically changes what you actually do on a day daily basis and changes how you think about things.
Gabriel Flores 40:03
Yeah, so hold minimum expectation thing, right? We there's there's two things when you're thinking of when you're purchasing time and money. How much time does it cost me? How much is it gonna cost me?
Nathaniel Pitchon-Getzels 40:13
But people undervalue how much this affects my lifestyle. Yeah. So I always tell people, instead of thinking about the time and the money first or the location, what is the lifestyle you want to achieve? First, then we can look at the money that you're qualified for, and how much space you actually need. Yeah, like, for example, I had one guy, and he goes, I want a huge yard. I want a huge, giant yard. Everyone wants to see my nobody
Gabriel Flores 40:43
wants to do with me. And I got a big one. It's tough. Yeah,
Nathaniel Pitchon-Getzels 40:47
but so but he goes, but I don't want to maintain anything. That's going to be hard, because I don't want to spend that much money like, well, space is expensive, especially in cities. So what I did is I kind of created a, a creative hack, which was, we bought a house that border to park. So his personal yard wasn't that big. But he literally bordered a giant Park. So he got all the advantages of the yard. with none of the costs.
Gabriel Flores 41:23
Yeah, smart, smart. So where do you where do you see, let's let's kind of bring it down to the residential area? Where do you see like the real estate residential going in? Because you know, the markets kind of crazy right? Now. Everybody's, like, 2010 are saying run away from real estate? Where do you see it going?
Nathaniel Pitchon-Getzels 41:39
Right? Well, there's a few few things. And I think this is also something that a lot of agents do wrong, which is they don't really know the market, they don't take the time to learn the trends. And they just are told, so sell, sell, sell, or, you know, you get a lot of agents even who are kind of doomsday or were like, ah, everything's gonna drop it's over. You know, which doesn't help anyone. And so I think the market, you're not going to see the 20% gain you did last year? I think you'll, what you're seeing right now is the prices are still going up? Slowly, right? I think this year, you'll probably see them go up. 4%. Right. If you have a good house right now, it's still going to sell and it's gonna sell fast, and it's probably going to sell for a very good number. Right? So that's a great thing. Interest rates are definitely up right now. So either they're going to keep going up, or they're going to drop that part. I'm not sure. I think they're gonna go up a little bit more for this year, because the Fed has said they're going to Yeah. And, you know, next year, we'll have to see what happens because if the war expands, that's going to change the finances. If you know if there's another if there's more pandemic problems, where cities shut down again, that's going to create a unique issues. If stagflation takes a hold and is in full swing, depending how long that takes could change the formula. But I think right now, what's what you're gonna definitely see happen is the rental market is about to go crazy. It's going to skyrocket. So right now money's still cheap. I know it's gone up, you know, I mean, three in three months span and went up the costume, which went up more than 55 60%. That's true. However, historically, it's still money still cheap. In 1981, or 83. I mean, just single digits was seen as oh my gosh, I don't think it'll ever happen again. I think interest was at 11 12%. So money is still cheap, I still wouldn't use that as a reason to not buy because if interest rates do go down, you'll just refi. And then if they keep going up, then you win because you have a low interest rate. Yeah. A lot of people are not going to sell, because they have such low interest rates. What they'll do is they'll rent their house, right? Yep. You want to just buy another one using that rental income to pay for the new house. So I think what you're gonna see is still a little bit of a vapor lock, where people want to buy the top end and no one's selling on the bottom. And so while it will be easier, and it's taking longer for houses to sell, I don't see a huge jump in inventory coming. Now. Let's let's meter that though, because, like in Calabasas if the inventory went up 50% In a month, but it went up from 12 to 20 houses or 24 houses and that's a whole city. So it's still nothing, right? If you so it's kind of like when you look at owning investing in a house. You can look at two things, the percentage that you're making But also you have to look at the bigger number. Right? So right now, the percentage is big things are jumping 60% 30% 190% 80%, right? But the actual numbers are still tiny. Right? Right. So what's kind of like when you when you buy a house, you're like, Oh, I'm making a 50% increase. But if you only put in $50,000, you're not making that much money. And it's still probably not worth it. Yeah. So right now, you could say, oh, interest, your payments went up to 66%. Which is true, but they're still cheap. Yeah. So, you know, I think what you'll see is, right now, you're seeing people really scared. And I think a lot of these buyers will come back to the table. So there'll be more buyers. I don't see a big jump in prices. And I think in maybe six months, seven months, either the market will slow down more. Or it could do the opposite, depending on what all these other factors have to do with this good boy. But I don't what I don't see happening is a 40% drop. Yeah, I don't see it happening is a is a is a huge real estate lead recession. Because the a lot of people go, Well, this is going to be another drop just like the last time the last time and I'm like, Well, you have to compare apples to apples. Yep. And there isn't a last time we didn't have this kind of world health crisis. Link. This
Gabriel Flores 46:33
is my first pet demo I've been through. Right.
Nathaniel Pitchon-Getzels 46:36
I mean, I must be live through the 20. I missed all the other pandemics? Yeah. Yeah. I don't think you're just kind of the last time in 1923. You know, I think that was the last true world pandemic. So, you know, people are comparing it to a real estate led crisis, which was really a lending a mortgage and a credit crisis, just disguised as a real estate led drop. So people go out there was, you know, like, dropped overnight, dropped overnight. Which is true. However, in most recessions, which I do believe the recession will be announced shortly. Because it's two quarters of economic shrinkage, which we have that so. Okay. But that doesn't mean it's a real estate led recession or a real estate led crisis. So that's the big difference. In fact, historically, in the last five of six recessions, real estate values went way up. Yeah. During the recession, just, you know, two of them 91 and 2007 2008. There was dropped. Yeah, but 91, it only went down a little bit, and all the others didn't went way up. Now, granted, right now, you didn't have interest going up at the same time. So that's why I don't see it skyrocketing. Yeah, no matter what happens, because interest rates are dampering market, but they're doing that on purpose, because realistically, if we had 20% gain again, the whole country is going for a major drop. Yeah. And that's unsustainable. It doesn't. It doesn't make sense. Okay, so now there's certain there's a few secret markets that I think are gonna have some trouble, right? There's 1010, but the top view are like Austin, Texas, North Carolina, Charlotte, North Carolina, Charlotte, North Carolina, Cape Coral, Cape Coral, and a lot of the cities in on the western side of Florida and not Sarasota and the bigger ones, but the smaller ones that have massive growth. Yeah, because those cities, the prices have so far out weighed the inflation and wages, wage increase. There's no mathematical way that that those are going to sustain. Yeah. And like in Austin, for example, I was talking to a friend of mine, who said I want to buy this house. It's listed at $800,000. And I said, Oh, did you get the house? He goes, No. It just sold said, Oh, how much just sell for $1.7 million dollars, which is almost double the asking price. I said, Oh, what what are what's the rest of the market? Like what's the rest of that neighborhood selling for? 900. Maybe a million like So in essence, that person literally just bought a $900,000 house for $1.7 million. They're not setting the new floor. They just overpaid because they're emotional. Yep. Yeah. So being emotional both for agents and buyers is a problem all so that's a common mistake I see on both sides of that coin.
Gabriel Flores 49:43
Yeah. And to your point, you know, you don't know what the interest rates are going to do. So folks, if you do own the house, look at the HELOC right now. Your price of your home may not actually ever be this high again. So it might be a smart idea to kind of lock in one of those key locks at a high appraisal of a high appraisal. 5.5% Right now I think is roughly I think you can probably some five, find some I know I've been looking I found a 5.5 with 0% down zero closing. So I mean, it's like free money, it's free money. In the end, you're not going to pay it unless you unless you pull out but to your point, you know, looking at rentals looking at looking at ways to create generational wealth is important for everybody.
Nathaniel Pitchon-Getzels 50:18
So, so now's a great opportunity to do so. Yeah, if you, right, yeah. If you know what if you get good if you build that good team, which is so important, you can build generational wealth for, you know, a couple generations. Yeah,
Gabriel Flores 50:31
I agree. I agree. So Nate, tell the folks at home how do they get in contact with you? How do they find you on social? How do they find you on the intro Web? Give them some information how to contact you?
Nathaniel Pitchon-Getzels 50:42
Absolutely. So I am absolutely all over the internet you Google my name and I should come up but the best best best way is my Instagram. At get sales group. g TZELS g r o u p get souls group just like my name. And I will pop up right away. In fact, I think I'm one of the only gutturals on the internet. So I'm definitely the only pitch on guests in the world actually fun little fact the only the only Nathaniel pitch on gutturals on earth literally is me. That's a nice name. So kind of wild. But I think on Instagram, they have my phone number my email perfect. I mean, you can also feel free to share my my number in the show notes.
Gabriel Flores 51:25
Yeah. For those folks listening, sign up for the newsletter. The information will be on the newsletter as well. So please do sign up for that.
Nathaniel Pitchon-Getzels 51:31
Yeah, I'm really excited about your newsletter by the way, I think there's gonna be really it's gonna be a wealth of great nuggets of it is yes, information there. So I'm really excited about your newsletter. When does that? When does that launch ever it
Gabriel Flores 51:43
comes out? I actually started releasing them and they come out every shoot wasn't every Wednesday, every every Wednesday? I believe it is or no every week. Wow. Yeah. Every Wednesday weekly, weekly newsletter.
Nathaniel Pitchon-Getzels 51:56
Terrific. Well, I'm looking forward to that. But yeah, I think even on online I think they even on my fingerprints, blood type. I think there's a little alert when I'm on my toes edge.
Gabriel Flores 52:06
Yeah. In fact, you know what you said you're in Seattle recently, and I probably passed by you because I got a COVID alert.
Nathaniel Pitchon-Getzels 52:14
There you go. Exactly. My phone.
Gabriel Flores 52:18
Oh, that's trouble, man. Thank you so much for your time. I'm definitely gonna send you an email to connect you with some other folks on the back end to because I know you mentioned connecting with some folks, I want to do that. Thank you again, so much for your time. I'll really folks listening at home. Definitely, you know, learn more about the real estate game because it does really have an opportunity to create generational wealth. And it really is a way for you to kind of create residual income as well. So just a lot of great nuggets. Nick, thank you again, so much for taking your time for being on the show. For those listening. Please follow me on Instagram, Twitter, Facebook, LinkedIn, and you can subscribe to the newsletter on the shades of e.com Thank you and have a great night.