#646: Is NAR Worth the Investment? Real Estate Pros Break It Down

John Kitchens Coach Podcast | Life. Coaching. Real Estate

Episode Overview:

In this episode of The John Kitchens Podcast Experience, John and his co-hosts dive into key issues facing today’s real estate professionals, including the essential roles of the National Association of Realtors (NAR) and Multiple Listing Service (MLS). They explore how these institutions protect agents and clients, plus tackle major industry shifts like commission structure changes and the rising importance of multifamily investments. The team also discusses how to leverage community relationships and market knowledge for sustained success in real estate.

Key Topics Covered:

1. The Role of NAR and MLS:

   • NAR Advocacy Efforts: John highlights insights from Cindy Featherstone Shields about how NAR’s lobbying efforts protect real estate agents and homeowners. Key areas include defending 1031 exchanges, preserving tax benefits, and preventing restrictive real estate policies.
   • The Value of MLS: Discussion on the essential function of MLS, allowing agents to organize and access listings effectively and emphasizing how a unified platform benefits agents, sellers, and buyers alike.

2. Commission Structure Changes and Market Impact:

   • Buyer and Seller Trends: The team examines the impact of recent shifts where sellers might be reducing compensation for buyer’s agents, and how this change could affect agent negotiations and consumer behavior.
   • Adaptation for Agents: Emphasis on the need for agents to enhance their negotiation skills and effectively communicate the value they bring to transactions, especially as the market undergoes structural changes.

3. Investment Strategy and Wealth-Building:

   • Benefits of Multifamily Investment: John and the team discuss multifamily properties as a strategic investment, citing scalable cash flow and value appreciation as significant advantages compared to single-family investments.
   • Navigating Today’s Market: With limited inventory and high interest rates, the hosts suggest focusing on multifamily and commercial investments to hedge against economic shifts, and stress understanding market fundamentals to secure long-term growth.

4. Building Strong Community Relationships:

   • Networking and Community Engagement: The hosts emphasize the importance of community relationships, encouraging agents to engage with their local networks, connect with other agents, and build partnerships for mutual success.
   • Long-Term Client Connections: The team shares insights on creating sustainable client relationships through added value and consistent communication, which can significantly enhance an agent’s business over time.

5. Development Trends:

   • Small-Scale Development and Affordability: With rising land and building costs, builders are focusing on smaller, more affordable projects, like townhomes and compact single-family homes. John discusses how agents can leverage this shift to better serve clients in the current economic climate.
   • Future Opportunities in Real Estate: The team talks about how agents and investors can position themselves strategically to benefit from these trends, underscoring the importance of understanding market movement and anticipating future opportunities.

Final Thoughts and Takeaways:

• MLS and NAR Are Cornerstones of Real Estate Success: The MLS and NAR provide structure and protection essential to the current real estate model, ensuring transparency, accessibility, and industry stability.
• Relationships Are Key to Sustained Success: Agents should focus on community building and long-term client relationships to thrive, especially in a shifting market.
• Investing in Multifamily and Commercial Real Estate is a Smart Move: Multifamily investments offer scalability, stability, and excellent cash flow opportunities; agents and investors should consider diversifying their portfolios to adapt to current market conditions.
• Stay Informed and Adaptable: Continuous learning and staying ahead of market trends—especially around property affordability and changing buyer/seller dynamics—will be critical for agents looking to grow and future-proof their businesses.

Resources Mentioned:

• NAR Website: For detailed insights on NAR’s lobbying efforts and a list of issues they advocate for on behalf of professionals.
• Cindy Featherstone Shields – Expert Mentor and top-producing agent based in Tyler, Texas, who provided in-depth insights into NAR’s advocacy and real estate challenges in small-town markets.
• Books Discussed:
  • Buy Back Your Time by Dan Martell – A guide on managing time to maximize business efficiency.
  • Choose Your Enemies Wisely by Patrick Bet-David – A strategic approach to business growth and wealth-building.
  • Turning Pro by Steven Pressfield – A motivational book on transitioning from amateur to professional work ethic.
  • Outwitting the Devil by Napoleon Hill – Lessons on overcoming fear and self-doubt in achieving success.
• Multifamily Investment Resources:
  • Rich Dad Poor Dad by Robert Kiyosaki – A foundational book on real estate investment.
  • Grant Cardone’s Multifamily Training Programs – Recommended as a valuable educational tool for agents interested in multifamily and commercial investments.
  • ConnectCon Event – An investment and growth event featuring Grant Cardone, with upcoming dates in Frisco, Texas.

As we know it wouldn’t be the same without NAR. It’s not just about what they bring to the table, but what they allow not to change." – John Kitchens

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