How to Succeed in a Slow Real Estate Market: AI, Networking, and Investor Education

Michelle Colbert (00:00)
the blue ocean is AI because you know, really getting those tools in place, they can save so much time and they can be a multiplier in whatever it is that you’re trying to do. there’s a lot of tools that are out there now. I don’t think that you have to master them all. you know, look at the ones that best serve your business and master those. because a lot of them are foundational. You once you get the foundation down, you could— can pretty much plug and play with some of the other ones. They may have a little few extra features here and there, but for the most part, I think that really is the blue ocean. And I think that agents or anyone in business, if they’re sleeping on AI, they are definitely going to get left behind.

Scott Bursey (02:15)
Welcome back to the Real Estate Pros podcast powered by Investor Fuel. I’m your host, Scott Bursey. And today we’re joined by Michelle Colbert, a standout agent at Compass who has redefined the bridge between media production and real estate success. With over a decade of high-level investing experience and background as a TV producer, she brings a unique edge to every deal she touches. Michelle, welcome to the show. It’s awesome to have you here.

Michelle Colbert (02:39)
Thank you for having me.

Scott Bursey (02:42)
And for our listeners who may not be familiar with your journey, please tell us how’d your career become ignited and where are you pouring your fuel now?

Michelle Colbert (02:51)
this good Chris. Good question. as as you stated, I started off in the entertainment industry as a t— a television producer before I transitioned into real estate. but I I got the the bug, if you will, of wanting to explore real estate more when I had the opportunity to buy my first home. and I wasn’t in the entertainment industry at that time. And I held that home for quite some time for almost 10 years, and When when I— when I sold the home or was in the process of selling the home, it was a big eye-opener in terms of that the fact that it was an asset because I really didn’t look at assets and or understand assets and that real estate was one of those one of those categories. And when I saw what that house, that one house, did in terms of my financial trajectory, it was an eye-opener and a big game— game-changer for me. And I went on and I bought, you know, I bought another property and such, and I just was like, “Wow, this is really when I understand the formula of like the projection of how it can grow and what you can do with it.” I went to go flip a house after thereafter. And and that’s where when I was flipping this particular home, I found out that all real estate agents were not created equal. Because when I first bought my home, I had a fantastic real estate agent. I mean, I was so excited. I was like, you know, a puppy going out to the park and I was gonna run all around it. And she would reel me in when I would say, “Yeah, I love this house,” and she would reel me in and say, “Well, let me show you why this one may not be a good idea.” And it was— it was a house. Actually, it was a condo, and we went into the condo, and I loved the condo, and she was sitting there as I was bouncing off the wall, so excited about this. And she said, “Well, open— open that window up in the right there. Open that window up.” And I go to open the window up, the curtain, I pull it back. She says, “What do you see?” A wall. She said, “Exactly. You don’t— you don’t want to buy a condo where you see a wall.” I was like, okay, that— that agent worked with me for about a year to find the right place, one that I could afford, where I was not gonna be, you know, stretched out financially. sh— she just— she just really educated me. And when I went on to buy other properties, I was getting all kinds of like real estate agents that were not as sharp or as transparent as she was. So that was my journey. And I said at some point, because I was in a situation where I could have like lost my sh— lost my shirt with a particular agent, but my instincts kicked in and I was able to get— turn that deal around. And I— that was a vow that I made. I said, “You know, when I transition out of the entertainment industry, I’m gonna go into real estate full-time and I’m gonna do it in a way— the way that I was treated and guided on my first one because I know how important it is and I know how people can actually be impacted if it’s done wrong.” So that really was the fuel that set me on fire in my trajectory to go and and and be— go into the transaction part of it and treat people with the same guidance that I got for my first one because it did change my life.

Scott Bursey (06:57)
That is a wild and impressive journey. You know, Michelle, what really caught my attention about you was the way you’ve been able to fuse the high-stakes world of TV production with the tactical intensity of real estate investing, with the focus of helping other investors. Clearly mastering the art of helping others in a way that separates you from the crowd.

Michelle Colbert (07:23)
Thank you, I appreciate that.

Scott Bursey (07:24)
And I’m curious to know, as someone who spent years producing content, how does that background specifically sharpen your ability to help other investors?

Michelle Colbert (07:33)
Presentation, you know, presentation. It’s— it’s like— it’s— it’s super important because that is the first impression. so I do when I’m working with investors and you know, they’re taking a property that’s distressed. sometimes these properties have great bones and they have great character. you know, say for example, Craftsman, I may recommend to say, “Listen, I know you want to put some more modern things in it and make it more functional for today, which is great. But if you want to get the most bang for your dollar, you might want to leave these built-ins that are here in— you know, you could put quartz, you know, quartz countertops or whatever you on it. But if you keep those built-ins in, it gets— it won’t lose a character because you don’t want to bastardize the architecture of the property.” So these are things that you know, I’ll share— I’ll share with an investor. Some of them will get it right away, others just they— they— they like, “You know, get out of the way. We’ve got it from here.” but those are the ones that don’t necessarily get top dollar for their— their properties and sometimes the properties sit. So I think that’s probably a transition from the entertainment industry.

Scott Bursey (08:37)
Absolutely. Presentation. And that is a solid recipe right there that will let you achieve the goals that you want the other people to achieve. And in such a fast-paced market like Los Angeles, what is one bottleneck or process you’ve identified in your business that you’re currently working to refine or delegate so you can help other investors, Michelle?

Michelle Colbert (09:01)
so in terms of like helping other investors, that’s a bottleneck. sometimes not being able to get back to all the investors because I get investor calls all the time. but then also too, I really have to screen the ones that are real investors versus the ones that are looking to acquire and wholesale because they’re different— those are— those are different, you know, different beasts. So I would say I definitely need to put a system in— in regards to the— the investors that are coming in. So those that I really can help. And those who want to wholesale, that’s not really a business model for me, you know, maybe to refer them someone that, you know, they do wholesaling. but yeah, I guess that probably would be the— the biggest one is not really being able to get back to— to— to everyone as quickly as I’d like to sometimes.

Scott Bursey (09:51)
And recognizing that is so critical. thank you for highlighting that, Michelle. And we must know, thinking about where we’re headed, where do you see the biggest blue ocean for agents who are willing to leverage their unique life experiences like you have?

Michelle Colbert (10:07)
blue ocean is a— i— is AI because you know, really getting those tools in place, they can save so much time and they can be a multiplier in whatever it is that you’re trying to do. there’s a lot of tools that are out there now. I don’t think that you have to master them all. you know, look at the ones that best serve your business and master those. because a lot of them are foundational. You once you get the foundation down, you could— can pretty much plug and play with some of the other ones. They may have a little few extra features here and there, but for the most part, I think that really is the blue ocean. And I think that agents or anyone in business, if they’re sleeping on AI, they are definitely going to get left behind. And not the business to be left behind.

Scott Bursey (11:27)
Is that still seeing more agents adopting? Yes. Yes. or are they still sticking to the traditional playbook?

Michelle Colbert (11:31)
Do I see more agents adopted? I think, I think, I think some that are older are gonna stick to the traditional playbook. They’re not going to, they’re not gonna, they’re not gonna pivot. some of people are afraid of it. And but then you know, I see— I see some of the younger agents that are definitely, you know, definitely are using it just by default because it’s just their social group, you know, it is using it. I mean I’m— I’m an older agent and I just know that, hey, if you— if you’re not using it, you will definitely be left behind. Just— just from the algorithm perspective, Google is not the go-to. You know, people are going to the ChatGPT, they’re Claude to find things. And if you’re not coming up and there’s 10 other agents that service the area you’re in, those are going to be the ones that are going to be the first call. A consumer’s not going to dig too much deeper, you know, than their initial research. So, you know, we have to— we definitely have to be proactive.

Scott Bursey (12:35)
That’s such great perspective. And it’s no secret that the brokerage landscape is shifting rapidly, Michelle. So what’s the one noise in the current market that you’re actively tuning out to stay ahead of the game and helping fellow investors?

Michelle Colbert (12:51)
The noise I’m so you know, I— it— I would say I’m not sure if I tune it out. I just don’t allow myself to mentally be impacted by it. Is that, you know, if there’s— if there’s shifts in the economy, because the market is— the market’s just not great right now. That may be true, but we definitely have to keep moving our feet. And if it— if that meant that, you know, you went to two networks— two networking events, you know, a month, now you may need to go to four. You may have to do a bit more than you did in the past to keep your— your business moving. yeah, I guess— I guess that would be one of the things is just because the economy— the— the thing about the economy is this, and definitely I’ve had— I’ve had— I’ve had my challenges for sure, is that there will be people who will do well in any economy, you know. And sometimes we have to look at those people that are actually doing well in the economy and just say, “Okay, what is it they’re doing? What is it that they’re doing that they’re doing well and be able to pivot?” You know? I mean, I don’t— I don’t think we could get too, too, too, like, “Okay, the economy is just—” it happens. People have black swans that come into their business and you know, you have to deal with that. You’re— you— you’re— you’re in the thick of it at the moment, right? So you’re like, “Okay, but I gotta keep moving my feet.” So that would be, I would say, would be the noise. And I— and I’ve heard even in the entertainment industry, we— it was like, you know, “Business is going away. This is happening, that’s happening.” You just got to keep moving your feet. You’ve got to put yourself in an environment that is— is charged with positivity when there’s a lot of black swans that are coming in. Because someone might be able to give you that little nugget that turns things around for you. So I think that we have to be open to that.

Scott Bursey (14:37)
Keep those feet chopping. Absolutely. Good degree anymore. And you spoke of networking. Are you a part of any investment groups, peer groups, any networking groups yourself, Michelle?

Michelle Colbert (14:49)
Yeah, I think networking groups are very, very important. you know, there’s a few net— investor clubs here in Los Angeles. I go to— go to those. things will happen on Meetup, you know. so those pop up and and I go to those. But yeah, you really meet some interesting people. You could pick up deals there sometimes or you can help somebody with the deal. You can— you can forge a relationship that maybe not today something comes of it, but later it does. or you— something— someone says, “Hey, I’m looking for somebody who knows to do how— knows how to do tile roofs.” And you say, “I met someone at a recent—” and you can, you know, say, “Hey, here’s Joe and here’s Bob, get together, you know. I think you guys could be a good fit for the services needed.” so those are— those are super important, you know, and the old cliché is that your network is your net worth. And I— I believe that, you know, we do need— we do need each other. I think to sustain— to sustain our businesses and and even just if it’s not just for business, it can be just for emotional support, camaraderie, you know. We’re all on our devices and, you know, not connecting to people. We don’t want to lose that human connection because that’s very important not only for our business, but for our mental health as well.

Scott Bursey (16:41)
That human element is critical. There’s just no question. Thank you for highlighting that, Michelle. And from your perspective as a producer and an investor, what system has been the most reliable for you when scaling your reach without sacrificing the quality of the production of your client experience?

Michelle Colbert (17:00)
Well, I mean I definitely from a business perspective, I use— I definitely use a CRM. So my CRM is very, very important because I definitely have my sphere in my CRM. I have, you know, people that I meet, you know, it could— it could be a particular vendor or you know, sellers, buyers, investors, people who are like inherited properties, th— those sorts of things. So it’s a way to automatically stay in touch with people. And the beauty of your CRM is that you can see actually who’s engaging. and that’s great because that’s like, okay, they’re engaging. Let me— let me give you know Sally a call and just say hello, you know, just see how that person is doing. because we are so busy. And again, you know, as a lot of real estate a— agents, unless you’re on a you know a big team, you are it. You’re it, you’re the bottle washer, you’re the chief, you know, you’re the driver, you’re all of those things. So you need some systems in place that help you to—

Scott Bursey (17:48)
Good.

Michelle Colbert (17:55)
—keep your t— to to keep y— you know, your— your folks engage with you and you engage with them. So the CRM has been one of my— one of my biggest tools.

Scott Bursey (18:04)
You’ve got to build that machine before you push the pedal.

Michelle Colbert (18:07)
Yeah, absolutely.

Scott Bursey (18:08)
Where do you see the market, Michelle, in the next twelve to twenty-four months in in your area, Los Angeles?

Michelle Colbert (18:16)
Well I do see— I do see properties sitting a little longer. That I do see. you know, buyers— buyers are out there. I will say that we’re leveling out. And if the home is priced properly, you will get more inquiries in terms of that property. if it’s not, it does, it sits because some sellers are really, you know, they’re three years behind in terms of what’s happening in the market. So their pricing is very aspirational right now. But real estate again is just one of those things that, you know, it ebbs and flows. But at the end of the day, particularly in Los Angeles, if things kind of flatline out, you know, a year or two it could go— it come back and it’s on steroids. It’s like, my gosh, two years ago that house was a mill. Now it’s, you know, it’s a— it’s a— it’s 1.8. And it’s just like, “Wow, you know how much it— it can grow.” Not just by, you know, five percent, but sometimes we’ve seen twenty-three, twenty-four percent growth rates. you know, again, I always tell my clients, don’t over-leverage. You know, buy what you can afford and sustain. but yeah, I— I— I see— I see the market flatlining out. I’m seeing more opportunities for buyers. But I’m also seeing buyers are scared. You know, buyers are scared. They’re like— they don’t know what’s gonna happen with the economy. So you’ve got two sides. You know, yeah, you have a seller like, “Well, should I sell now?” And then they— they pull back, or if I sell now, I want it, you know, aspirational and it sits and they end up pulling it off the market anyway. So it’s— it’s very— it’s very interesting times. It’s very interesting times. So it’s important that both buyer and seller are educated.

Scott Bursey (19:53)
That was really, really on point perspective there. Thank you for that, Michelle. And if you could point to a habit or a belief system that you’ve maintained through both your media career and your real estate career that has consistently driven your performance, what— what would it be?

Michelle Colbert (20:11)
I would say in terms of a mindset that things are gonna happen. Things are gonna happen. And you have to be prepared to pivot. You may have a pity patty party for five minutes, that’s all you get. You got— you gotta keep moving because it— it— it at the end of the day, it really doesn’t matter how you feel about something. not that— not that that’s not important, but you know, d— your emotion should not be the block in terms of you being able to— to move forward. You know, it’s like, okay, in the future I plan on changing this. You know, I plan on being a voice with this. But right now, in order to be present and to be that voice, you have to be present and you have to move and you have to— you know, you have to keep moving. So I would say that would be the mantra, in the entertainment industry, in the real estate industry, you just— you— you g— you go with the flow and you just— you get— just get stuff done. Get stuff done.

Scott Bursey (21:10)
And that’s a great mantra. You’ve given us so much really on point, good words of wisdom today. But is there anything else that you could leave with our listeners?

Michelle Colbert (21:20)
they can leave with the listeners. If you’re thinking about investing or getting in real estate, it’s a— it’s a great, it’s a great industry. It’s a great asset. But get educated. Get educated on it, you know, circle yourself around the right people, people who are really going to be looking out for your interest, because it is a great asset. but you can also not do so well in it if you are misguided. So, you know, make sure that you have the— the proper guidance going along the way. don’t jump into something that you really don’t know anything about, but don’t be afraid. Just— just get the mentor. Get the— get the person who’s really going to, you know, take you through the process correctly. ‘Cause then the next won’t be so scary. But, you know, the education point.

Scott Bursey (22:10)
Sure, put yourself in the right rooms.

Michelle Colbert (22:13)
Mm-hmm. Mm-hmm. Absolutely. Absolutely. And you gotta vet people too. ‘Cause some people present, present well and then, you know, they— they— they kinda tank when it’s time for execution. So you really have to— you have to vet— you have to vet who, particularly if you’re coming to the table with some money, ’cause you know, if somebody has twenty thousand dollars, that could be their life savings. Yeah. You know. We think like, that’s nothing. Well, for that person, that was their— their life savings. And if they lose that, that means that— that may have taken them, you know, 10 years to have that extra twenty thousand to put into a real estate asset. and if that money is lost, that means that they have to start all over again. If it took them 10 years to get that 20K, you know, it— that could be very, very discouraging. So again, make sure that what you’re coming to the table with and what you want to do, that it is protected, that you do your homework. And that you vet people out for sure.

Scott Bursey (23:04)
Due diligence. Absolutely, Michelle. Absolutely. And before we sign off, if our listeners want to follow your journey, stay in your lane, or collaborate with you, what’s the best way for them to plug into your pipeline and reach you directly?

Michelle Colbert (23:18)
Well, I d— my website is just my name, michellecolbert.com. So the— I can be found there. And I’m on Instagram at— at @agentmichellecolbert. so I’m reachable there and would be more than happy to be obliged to— to meet any fellow folks that wanna be— you wanna do business or learn more about it.

Scott Bursey (23:40)
Yeah. That’s awesome. Thank you for joining us today, Michelle. This has been a great conversation.

Michelle Colbert (23:45)
Well, thank you. My pleasure. Thank you for having me.

Scott Bursey (23:47)
And to our listeners, we appreciate you. If you receive value from today’s episode, please subscribe. We’ll be filling your tanks with the lineup of elite guests, just like Michelle Colbert, who are accelerating and setting the pace for the rest of the industry. Until next time, keep your standards high and your vision clear. We’ll see you in the next episode, everyone.