Latest / Massive Agent Podcast / MAP 088: Why Realtors Should Embrace iBuyers, Not Fear Them w/ Kevin Kauffman

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MAP 088: Why Realtors Should Embrace iBuyers, Not Fear Them w/ Kevin Kauffman · Massive Agent Podcast

0:00
SPEAKER_02: On this episode, we're talking all about iBuyers.
0:02
SPEAKER_02: Should you be afraid of them or not?
0:04
SPEAKER_02: Can you use them to your advantage or not?
0:06
SPEAKER_02: We're joined by Kevin Kaufman from Group 4610, a major player in our industry who has some serious perspective on iBuyers to talk about this.
0:15
SPEAKER_02: You will not want to miss this joke.
0:17
SPEAKER_02: Get ready to take notes.
0:18
SPEAKER_02: Let's do it.
0:19
SPEAKER_02: Now play my hilarious frickin' intro with all the you know uh brass balls to sell real estate stuff.
0:23
SPEAKER_02: Go ahead.
0:32
SPEAKER_01: I like to buy houses, I like to sell houses.
0:52
SPEAKER_02: What is up, everybody?
0:53
SPEAKER_02: Welcome to episode number eighty-eight of the Massive Agent Podcast.
0:56
SPEAKER_02: I am your host, Dustin Broome.
0:58
SPEAKER_02: If you are new to the show, thank you for joining us.
1:01
SPEAKER_02: If you're old to the show, thank you for coming back, because Lord knows this can be an audio train wreck at times.
1:10
SPEAKER_02: Just uh, you know, me carrying on.
1:12
SPEAKER_02: But hopefully you've learned something.
1:13
SPEAKER_02: And if you're returning, thank you very much.
1:15
SPEAKER_02: If you uh if you don't know me, my name is Dustin Brohm, your host.
1:18
SPEAKER_02: I'm an agent in Salt Lake City, Utah.
1:20
SPEAKER_02: I'm a national speaker, trainer, and real estate marketing coach.
1:24
SPEAKER_02: I am also the host of my other podcast called Industry Connected.
1:28
SPEAKER_02: You can find wherever you're listening to this one.
1:30
SPEAKER_02: And it's it's much more uh for agents and loan officers, really anybody in the industry.
1:36
SPEAKER_02: And we talk more about uh industry-related topics.
1:39
SPEAKER_02: Uh so that's a great compliment to this show as well.
1:42
SPEAKER_02: Uh, we are a proud founding member of the Industry Syndicate, real estate's very first media network.
1:47
SPEAKER_02: So go to industry syndicate.com to check out all of our other shows if you're looking for more podcasts, video shows, or flash briefings that you might like.
1:54
SPEAKER_02: All right, so today Kevin Kaufman's joining.
1:57
SPEAKER_02: He's he is one of the co-founders of Group 4610.
2:00
SPEAKER_02: They are a team uh with a presence in five or six, or was it eight different markets?
2:06
SPEAKER_02: They um they're based in Phoenix, but they they have what's called an expansion team.
2:11
SPEAKER_02: So they have teams all around the country, uh, all under one team, if that makes sense.
2:15
SPEAKER_02: Uh so Kevin is also the co-host of the Kevin and Fred's next level podcast and the next level, next level agents Facebook group, and they do events and everything.
2:27
SPEAKER_02: Uh great, great, knowledgeable uh expert on the topic of iBuyers.
2:34
SPEAKER_02: Growing up in I don't know if he grew up there, but in he's based in Phoenix.
2:37
SPEAKER_02: Phoenix is really the it's really ground zero for iByers.
2:41
SPEAKER_02: And so uh, as you'll learn today in this in this interview, uh, they have five years of perspective on what iBuyers do to a market, how they affect it, what we as agents can do to work with them.
2:53
SPEAKER_02: Um, but my my goal is this look, there's so much fear out there in our industry right now with iBuyers.
2:59
SPEAKER_02: So many agents are fearful that the iBuyers, as soon as they come to their market, you know, if they hear Open Door or Zillows coming to their market, oh, they may as well just pack up, call it a day, game over, no one's ever gonna sell any more homes, right?
3:11
SPEAKER_02: Well, no, no.
3:13
SPEAKER_02: You have to have some perspective.
3:14
SPEAKER_02: And so this show, this interview is fantastic.
3:17
SPEAKER_02: Um, we will get to that in 30 seconds.
3:20
SPEAKER_02: So, real quick, well, maybe more than 30, I have no idea, but very soon.
3:24
SPEAKER_02: Uh, traveling.
3:25
SPEAKER_02: If you are in one of these markets, I'm gonna be traveling here over the next, uh, the next couple months in September and October.
3:32
SPEAKER_02: So hopefully you can make it out to one.
3:33
SPEAKER_02: I'm gonna be at Social Surveys Create Wow Summit on September 4th through 6th in San Ramon, California.
3:40
SPEAKER_02: Then I'll be on September 18th, I'll be in Grants Pass, Oregon, September 24th.
3:45
SPEAKER_02: I'm speaking and moderating a panel at the California Realtors Convention reimagine conference or convention, whatever they call it, on September 24th.
3:54
SPEAKER_02: So I will be there all day on September 24th.
3:56
SPEAKER_02: I'll be at EXP Con the first week of October in Vegas.
4:01
SPEAKER_02: I'll be in Staten Island on October 4th, it looks like.
4:04
SPEAKER_02: I'll be speaking in Salt Lake City at the Salt Lake Board of Realtors on October 16th, and then in Madison, Wisconsin, October 24th through 25th at the Agent Rise Summit.
4:13
SPEAKER_02: And I might even pick up a gig or two between now and then.
4:16
SPEAKER_02: So if you're in one of those markets, I'd love for you to join us.
4:19
SPEAKER_02: Um, reach out if you need more details about any of those.
4:21
SPEAKER_02: Uh, quick shout out this this episode is brought to us by one of my favorite vendors in our industry, Postcard Mania.
4:28
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4:40
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5:25
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5:46
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5:50
SPEAKER_02: All right, so let's jump into the interview right now with Kevin Kaufman, a major player, a godfather, if you will, a don in the real estate industry.
5:59
SPEAKER_02: Um, yeah, yeah, he's a major player.
6:02
SPEAKER_02: But no, great guy.
6:04
SPEAKER_02: They have a media empire going and a massive real estate team in many different markets.
6:10
SPEAKER_02: He has more, more perspective on iBuyers than almost anyone I know outside of someone who works at an iBuyer company.
6:18
SPEAKER_02: So, Kevin Kaufman, uh, let's get into the interview now.
6:21
SPEAKER_02: What's up, guys?
6:22
SPEAKER_02: I'm sitting here with Kevin Kaufman of Group 4610 in Phoenix, Arizona.
6:27
SPEAKER_02: And um, Kevin, welcome to the Massive Agent Podcast, my friend.
6:30
SPEAKER_01: Hey man, thanks for having me.
6:31
SPEAKER_01: I appreciate it.
6:32
SPEAKER_02: Absolutely, absolutely.
6:33
SPEAKER_02: So you guys have a huge group, a huge team that spans multiple states, multiple markets, and uh you're also with exp Realty.
6:40
SPEAKER_02: Awesome.
6:41
SPEAKER_02: Great minds think alike.
6:42
SPEAKER_01: Indeed.
6:43
SPEAKER_02: Yeah, when did you switch?
6:44
SPEAKER_02: Quick side note.
6:46
SPEAKER_01: Uh let's see, it was June of 2018, so um not too long ago.
6:50
SPEAKER_02: Okay.
6:51
SPEAKER_02: I for some reason I thought you were before me.
6:52
SPEAKER_02: I I switched over in May of 2018.
6:55
SPEAKER_01: No, you you beat me in the door, man.
6:57
SPEAKER_02: I guess, even though I waited a year after I heard about it.
6:59
SPEAKER_02: Anyways, um, yeah, so so I wanted to talk about iBuyers.
7:03
SPEAKER_02: You have some really interesting perspective because you're in Phoenix, among other markets.
7:08
SPEAKER_02: Um, so I want to talk about your business model, your team.
7:11
SPEAKER_02: Like you have such great insight on so many things, building a big team, um, building an expansion team, how to manage people, um, how to hire, all that stuff.
7:21
SPEAKER_02: And you gave a great presentation uh, you know, to that uh at the the EXP leadership event in Vegas last week, which was which was awesome.
7:30
SPEAKER_02: You you and Fred giving each other shit is hilarious.
7:33
SPEAKER_01: It's I we always tell people like half the reason we teach is just so we can try to throw the other person off in front of other people.
7:38
SPEAKER_02: I love it.
7:39
SPEAKER_02: That's a worthy goal.
7:42
SPEAKER_02: Um, yeah, so so real quick, anyone who does not know you or your your partner, Fred Weaver, and group 46, it is 4610, not right, not 4010 or some other number.
7:53
SPEAKER_01: 4610, yeah, you got it.
7:55
SPEAKER_02: Uh bring us up to speed on on who you are, how you got into the business.
8:00
SPEAKER_02: You know, give us a quick 60 to 90 seconds, um, the Cliff's notes of you and your business.
8:05
SPEAKER_01: Yeah, so uh gosh, the Cliff notes.
8:08
SPEAKER_01: So we started working together in February of 2008, and it was just because we were both doing some short sales.
8:13
SPEAKER_01: I hadn't even been licensed a year yet, and we decided to share an office, share some resources because we were both at working from home, calling banks, and uh we both actually employed his brother to help us as basically as an assistant.
8:25
SPEAKER_01: So we decided to share an office and started working together.
8:27
SPEAKER_01: Next thing you know, we started getting momentum, and we went from like 12 listings to it felt like 90 overnight.
8:35
SPEAKER_01: And it just the business just blew up because we were willing to do short sales, and we looked like your typical.
8:39
SPEAKER_01: If you ever read the millionaire real estate agent book, we were like the typical typical MREA model, just that our listings were short sales, and we evolved over time, and you know, we've gone through different iterations.
8:51
SPEAKER_01: I can remember a time after 2012 when our business really fell apart because um I thought it'd be a good idea to take a job as a regional director for Keller Williams Realty.
9:00
SPEAKER_01: Bad idea in case you're curious.
9:01
SPEAKER_01: Like a corporate gig?
9:03
SPEAKER_01: Yeah, yeah, yeah.
9:04
SPEAKER_03: Really?
9:04
SPEAKER_01: Um sometimes I do really dumb stuff, man.
9:06
SPEAKER_01: Um, so like really dumb, right?
9:09
SPEAKER_01: But you learn, you live and learn.
9:11
SPEAKER_01: And so, you know, about that same time, we were going through a big shift in our market here in Arizona, which is kind of led to where we're at today, um, where the market was coming back and short sales were starting to go away, but we'd also done a really poor job leading our people.
9:27
SPEAKER_01: So I remember one day we looked up the end of 2012, and it was just basically me and Fred and our administrative team.
9:33
SPEAKER_01: And it was, dude, that was like kind of a kick in the gut.
9:37
SPEAKER_01: Like, okay, I tell people like 2013 was the year I learned to become a realtor because prior to that I'd taken a few hundred listings, but honestly, I'd done them all from the comfort of my office or my car.
9:47
SPEAKER_01: I hadn't gone to anybody's house, and it was quite a change.
9:51
SPEAKER_01: I remember we went through this phase where we just had a couple salaried buyers agents, um, and it was a we ran a real tight staff, and that was fun.
9:58
SPEAKER_01: And then we once we really got good at taking listings, because I realized I sucked, and that's a whole other story.
10:04
SPEAKER_01: That's a whole other episode of how to become a really great listing agent.
10:07
SPEAKER_02: Part two.
10:08
SPEAKER_01: Yeah, exactly.
10:10
SPEAKER_01: We then scaled out, and because we like to do things, you know, big and make a lot of mistakes at once, we ultimately ended up as we were shifting our model to away from this MRA model and away from this salaried agent model.
10:23
SPEAKER_01: We started letting our agents and training our agents how to take listings too.
10:27
SPEAKER_01: Um, we also decided to start doing that in another city, happened to be Denver.
10:30
SPEAKER_01: And uh we then, so that was September 1st, 2014.
10:35
SPEAKER_01: And so for just about five years now, we've run an expansion team.
10:39
SPEAKER_01: We then opened up Nashville a few months later.
10:42
SPEAKER_01: Um, and we've the ones that have survived, I'll put it this way, we're now in a total of six markets across five states.
10:48
SPEAKER_01: So Phoenix obviously is home base.
10:50
SPEAKER_01: Uh we've we've been in Tucson now for about three and a half years, Denver, obviously, for about five, uh, Nashville for four and a half, San Luis Obispo, California for just over two years, and uh recently opened up in Dallas, which was the first opening we'd had in over two years here in the last uh month or so.
11:08
SPEAKER_01: And so that's where we operate.
11:10
SPEAKER_01: And we, you know, everything is people ask me all the time about like what's an expansion team.
11:14
SPEAKER_01: Well, truthfully, it's kind of like a regular team.
11:16
SPEAKER_01: The difference is is that our salespeople are on the ground in a different city.
11:20
SPEAKER_01: I don't see them every day.
11:21
SPEAKER_01: It's truthfully not that complicated.
11:23
SPEAKER_01: The complicated part is in the laws and the marketing and stuff like that, that you know, having to have different systems and bringing those together.
11:30
SPEAKER_02: Uh that that gives me an idea for a future show.
11:33
SPEAKER_02: I would love to have you back to talk just in detail about an expansion team, how to how to build a team in another area that you're not in, because I think that would be really valuable.
11:44
SPEAKER_02: Um, I I imagine you just need really good independent self-starter people.
11:49
SPEAKER_01: Yeah, and you know that's that's definitely a uh good start to it.
11:53
SPEAKER_01: And uh you've got you've gotta have here's the thing I've learned now, 12 years running running the team, is that you've got to have really great people no matter what, whether you're expanding or local.
12:03
SPEAKER_01: If you're gonna let something get much bigger than just yourself or you and one or two other people, you're gonna live and die based on the the talent you can bring into your to your world.
12:12
SPEAKER_02: For sure.
12:13
SPEAKER_02: So um awesome.
12:15
SPEAKER_02: So let's switch over to iBuyers.
12:17
SPEAKER_02: So anyone listening who does not yet know what an iBuyer is, an iBuyer is a term that I think Brad Inman coined, um, or they at least have made it the standard term.
12:28
SPEAKER_02: Kudos to them for being able to do that.
12:30
SPEAKER_02: Um, but it it's an investor buyer.
12:33
SPEAKER_02: So a company like Opendo or Zillow or OfferPad, and there's there's others out there, but it's basically it's like it's like the the we buy houses sign people.
12:45
SPEAKER_02: It's it's a real estate investor who's willing to buy a home and they just have to buy it at a certain amount so there's still a profit margin, so they can buy it and sell it for more.
12:55
SPEAKER_02: And they do that as their business model, and they're they have a great marketing team, a great marketing department.
13:01
SPEAKER_02: So open doors, Zillow offers.
13:04
SPEAKER_02: I think is that what they call it?
13:05
SPEAKER_02: Zillow offers?
13:06
SPEAKER_02: Zillow offers, yeah.
13:07
SPEAKER_02: Zillow offers, offer pad, um you know, those are those are the the like the standalone companies, then some brokerages are launching their own iBuyer programs.
13:17
SPEAKER_02: Uh, it's there's there's different iBuyers.
13:20
SPEAKER_02: There's the brokerage-backed iBuyers, then there's the standalone companies, and they're very different things.
13:25
SPEAKER_02: Um, so what how long have you been seeing these?
13:29
SPEAKER_02: Because you're in Phoenix, which which is kind of the the uh the launching pad for these companies.
13:34
SPEAKER_02: I believe Open Door was really the first iBuyer that I'm aware of.
13:38
SPEAKER_02: And didn't they start in Phoenix?
13:40
SPEAKER_01: They did.
13:41
SPEAKER_01: And so I I know I don't know what day you're going to release this episode, but it's August.
13:46
SPEAKER_01: Right now it's August of 2019.
13:48
SPEAKER_01: So it's five years ago, it's this month, that they bought their first home in Phoenix.
13:52
SPEAKER_03: Okay.
13:53
SPEAKER_01: That's you know, it's funny because they're not even in all the markets yet, but here we are in Phoenix, we've had five years of getting you kind of getting used to them being in our home uh in our backyard.
14:03
SPEAKER_01: So it's been five years now, and uh yeah, it's changed things dramatically over those over those five years.
14:09
SPEAKER_02: It has, okay.
14:11
SPEAKER_02: Um the reason I wanted to talk about this, and and we just covered it a little bit on my other podcast, Industry Connected, on episode 16 that just came out last week.
14:20
SPEAKER_02: We talked about it a little bit, but I really want to dive deep because there's so much fear and and so much uh so many misconceptions among agents that iBuyers, when they enter their market, they're just gonna take all the business and everyone, uh all the agents who aren't mega teams will go out of business.
14:39
SPEAKER_02: And that's just not that's not the case, but you've you just said that things have changed dramatically since open door launched five years ago.
14:48
SPEAKER_02: What kind of changes have you seen?
14:50
SPEAKER_01: So, number one, the biggest change, and it also is connected to the biggest misconception about these i buyers, like you use the term we buy ugly houses, and that's a great way to describe it.
15:00
SPEAKER_01: The big difference is we buy ugly houses going in for literally looking for an ugly house that has a lot of work to be done, where there's a huge profit margin, and open door offer padzillo, you know, Redfin, all these other companies, they're looking for much smaller, like they're actually looking to be as cost effective as possible for the consumer.
15:20
SPEAKER_01: So I think the number one thing we have to know is that these brands, these companies are all about the consumer experience, and that is where they're coming from.
15:28
SPEAKER_01: So I hear agents a lot of times go, yeah, but they're you know, they want an they want a 40% discount.
15:34
SPEAKER_01: No, they don't.
15:35
SPEAKER_01: They they really don't.
15:35
SPEAKER_01: In fact, in Phoenix, now here we are five years later, their average fee is like six and a half, seven percent to the seller.
15:43
SPEAKER_01: So when you look at that and see how competitive their offers are in a lot of cases, sometimes it's not even sometimes it's not even a discount.
15:52
SPEAKER_01: Sometimes it's better than what I think I could get for them on the MLS.
15:56
SPEAKER_01: And I think that's the biggest misconception is uh that that agents have, and that I think we have to understand.
16:01
SPEAKER_01: All that said, they're not going to buy every single house in the area.
16:05
SPEAKER_01: So there's like two trains of thoughts that I've seen amongst the agents I've spoken to over the last couple of years, which is head in the sand, it doesn't matter, they're not gonna do anything.
16:13
SPEAKER_01: Well, I'm here to tell you that it was 25,000 transactions last year.
16:18
SPEAKER_01: So yeah, they're gonna do something.
16:19
SPEAKER_01: Um, they've got in Phoenix, there was, I don't know if it's uh I don't have the current amount of statistics, but the iBuyers now granted it's mostly open door offer Pag and Zillow, there are a few others, they're making up six percent of the sales here in Phoenix, and it's going, I believe it'll be as high as 20% one day.
16:37
SPEAKER_01: I really do.
16:38
SPEAKER_01: And so they're not something that we have to pretend is going to not impact us at all, and they're also not something that we should be scared of that it's going to take us all the way.
16:49
SPEAKER_01: Right.
16:50
SPEAKER_01: There's there's somewhere right in the middle where we as real estate professionals need to operate.
16:55
SPEAKER_02: Yes.
16:56
SPEAKER_02: Uh I heard a stat recently that uh that I think I heard it from Chelsea Pitts that in Phoenix, about 40% of home sellers at some point are getting an offer or at least exploring getting an offer from an iBuyer before listing their home.
17:14
SPEAKER_01: Yeah.
17:14
SPEAKER_01: So I don't know the exact number either, but I know earlier this year it was it was 30% of all listings that hit the MLS had already had an offer.
17:23
SPEAKER_02: Interesting.
17:24
SPEAKER_02: Well, and and I know that I've talked about this on another on another show.
17:28
SPEAKER_02: It might have been um with Bill Risser last week or the week prior.
17:32
SPEAKER_02: But at the same time, like see, that's the headline you read.
17:37
SPEAKER_02: That's the headline that freaks people out because they don't they don't zoom out and look past it.
17:41
SPEAKER_02: And and we haven't even gotten to this yet.
17:43
SPEAKER_02: You can actually use iBuyers as a tool to help you get more listings and close more deals.
17:49
SPEAKER_02: We'll get there in a second.
17:50
SPEAKER_02: Uh, but you've got to have the education and the understanding and don't be blinded by fear when you read a headline like 30 or 40 percent of sellers have entertained an offer from an iBuyer.
18:00
SPEAKER_02: But the other stat is more people are using realtors today to sell their homes than before.
18:07
SPEAKER_02: I don't know the exact stat, but uh that's the gist of it.
18:11
SPEAKER_02: That's the overall thing.
18:12
SPEAKER_02: So are iBuyers taking a big chunk?
18:15
SPEAKER_02: Sure.
18:15
SPEAKER_02: I mean, you said six percent of the the sales in Phoenix are happening through iBuyers, but there's still more people using realtors because iBuyers they feel a need, right?
18:26
SPEAKER_02: It's never gonna go to 100%, you know, because some people want to squeeze every dollar possible out, they don't need to do a ton of repairs to their home, and they can wait.
18:35
SPEAKER_02: They can put their home on the market list traditionally and get more money.
18:38
SPEAKER_02: Some people just got a job offer across the country, their home needs a lot of work to get top dollar on the market, they just want to sell it fast and they'll they'll they'll make 20 grand less to do it.
18:50
SPEAKER_02: Not everyone fits that, not everyone fits anything.
18:54
SPEAKER_02: What do you have to add to this uh this narrative, um, this perspective before we jump into the conversation of how you can actually use iBuyers uh as a tool to help you?
19:05
SPEAKER_01: You know, I think at the end of the day, you know, I was talking to my friend Chris Heller uh a few months ago.
19:10
SPEAKER_01: I was actually interviewing him for a podcast, and he said something to me that I thought was really smart and it's stuck with me ever since.
19:16
SPEAKER_01: He said, you know, consumer behavior drives technology, not the other way around.
19:21
SPEAKER_01: And so what I think, I think the real lesson here as real estate agents, what we need to do is we need to go, what is this behavior that should be driving the way we respond to the consumer demand?
19:35
SPEAKER_01: Because how can we provide that type of experience?
19:38
SPEAKER_01: Because listen, I don't know if any of your listeners have bought and sold real estate themselves personally or like their primary residence in the last say six months to a year, but it sucks.
19:48
SPEAKER_01: It's inconvenient to have people come through your home, it's inconvenient to schedule show-ins for yourself.
19:53
SPEAKER_01: Like the whole process is is not fun for the most part.
19:57
SPEAKER_01: And I think that as realtors, we tend to get numb to that because we do it every day, right?
20:02
SPEAKER_01: It's like a doctor can get really numb to whatever procedure they're an expert at because they do it every day.
20:07
SPEAKER_01: Whereas, you know, when you're going in as a patient, it might be the only time in your life you ever experience that.
20:12
SPEAKER_01: So I think we've got to understand where the consumers are coming from and understand that listen, we get paid a lot of money or we have the opportunity to be paid a lot of money.
20:20
SPEAKER_01: And I think as an industry, we've really got to up our game and learn from these companies and the service that they're providing and the demand of the consumer that they're meeting, and we need to ask ourselves, how can I do that?
20:33
SPEAKER_02: Uh that it that is so true on so many levels, and it's full of honesty, right?
20:39
SPEAKER_02: Look, it it just because we sell homes all day, every day, and the process to us is it's become easy.
20:47
SPEAKER_02: That's only because we do it all the time.
20:49
SPEAKER_02: Yeah.
20:50
SPEAKER_02: You know, it look, guys, there's a reason why realtors are have such a bad rap.
20:55
SPEAKER_02: There's a reason why people don't want to deal with realtors.
20:58
SPEAKER_02: There's a people why uh there's a reason why people maybe want to try to list by themselves.
21:03
SPEAKER_02: It's because they know someone or they personally have had a terrible experience because it's stressful.
21:09
SPEAKER_02: You know, even if you're selling your own home as an agent, it's still stressful, like you said.
21:14
SPEAKER_02: So we have to be honest about that.
21:16
SPEAKER_02: Um, you know, there obviously there's a need and a demand for the iBuyer model for some sellers.
21:23
SPEAKER_02: That's going to increase as they grow into more markets.
21:27
SPEAKER_02: We don't even have Zillow or Open Door in Salt Lake yet.
21:30
SPEAKER_02: Open Door just announced they're coming to Salt Lake, but they're not actually open for business here.
21:34
SPEAKER_02: We have OfferPad.
21:35
SPEAKER_02: As far as I know, that's the only um you know traditional iBuyer out there.
21:40
SPEAKER_02: Um No, you're absolutely right.
21:43
SPEAKER_02: We have to be honest about about the all of it.
21:46
SPEAKER_02: Um what do you what do you see as I so I think we should just jump right into it.
21:53
SPEAKER_02: With all of this, because we're we're we're kind of talking up why iBuyers exist and why they will continue to grow in the future.
22:00
SPEAKER_02: Why should we not be afraid of this as agents?
22:04
SPEAKER_01: So, first of all, I think can I actually can I just go backwards one step?
22:08
SPEAKER_01: Please.
22:08
SPEAKER_01: And then we can we can tackle why should why we shouldn't be afraid of it and potentially how we can use it.
22:14
SPEAKER_01: I think about this.
22:15
SPEAKER_01: What could you imagine if you had a travel agent, say, you know, years ago, before travel agents were greatly reduced the way they have been, um, and it's in the beginning of say Expedia and Travelocity, et cetera, and you're talking to your travel agent, and you need you need airline tickets from uh Salt Lake to Phoenix and a hotel in Phoenix, and and they said to you, Oh, you you don't you don't want to use Priceline or Travelocity.
22:42
SPEAKER_01: That's terrible.
22:43
SPEAKER_01: They're gonna guide you on prices, and you don't want to use it.
22:47
SPEAKER_01: And then you decide, you know what?
22:49
SPEAKER_01: I really like Sally.
22:51
SPEAKER_01: You know, she's been a great travel agent for me, but I'm just gonna go check it out.
22:54
SPEAKER_01: Like I'm just gonna because I keep seeing these commercials and William Shatner, he's really appealing, right?
22:59
SPEAKER_01: And so you go to the website and you realize that you do open doors commercials?
23:02
SPEAKER_01: He doesn't, but he used to do uh uh Priceline.
23:05
SPEAKER_01: Yeah, Priceline, yeah, yeah.
23:06
SPEAKER_01: And so then you go and you get on Priceline or or one of these other websites and you go, Oh, I can get round round trip air in a super sweet hotel for like 40% less than she quoted me.
23:17
SPEAKER_01: I'm gonna do that.
23:18
SPEAKER_01: She's lost all credibility with you if she did that, right?
23:21
SPEAKER_01: Could you imagine if traveling, and I don't know if they did or didn't, but could just think about that scenario.
23:26
SPEAKER_01: So that's the reason why I think we have to figure out how to work, why we need to work with them and not just go and badmouth them.
23:33
SPEAKER_01: We need to present facts, not emotions and opinions when we're talking to our our clients.
23:39
SPEAKER_02: Right.
23:40
SPEAKER_02: Remember the these consumers are not industry insiders, they do not have our perspective.
23:46
SPEAKER_02: And you you have it's amazing how many agents don't realize that and they they use industry jargon in their freaking marketing, like uh you know the FHA just increased the loan amounts in this county to this amount.
23:58
SPEAKER_02: Like that means anything to anybody anywhere who's not in the industry, like they don't, you know.
24:03
SPEAKER_02: Duh.
24:04
SPEAKER_01: Um why so let's well, so okay, so you meant the part two.
24:10
SPEAKER_01: Sorry, I I went backwards.
24:11
SPEAKER_03: So you said like I'm glad you did.
24:13
SPEAKER_01: What can we do, right?
24:14
SPEAKER_01: How can we work with these companies?
24:16
SPEAKER_01: Well, I mean, you actually just said the first one that's most obvious is why don't we just find out how we work with them?
24:21
SPEAKER_01: But so guys, tip number one if open door is in your market, go to their website forward slash agents and just apply to be part of their agent program for nothing more than to understand what they're offering to agents and what they can do.
24:35
SPEAKER_01: Now, you might be able to build a relationship and build some business off of it.
24:38
SPEAKER_01: Maybe you just refer a few deals from them.
24:40
SPEAKER_01: But I think about it this way.
24:41
SPEAKER_01: So, one of the ways we can use these companies is concurrent closes, right?
24:46
SPEAKER_01: Let's say, listen, it's been a good run in real estate in almost every market in this country.
24:52
SPEAKER_01: You got somebody who's built up 50, 70, 80 grand of equity, 100 grand of equity in the last six, seven years.
24:58
SPEAKER_01: You'd be surprised how many sellers would go, you know what?
25:02
SPEAKER_01: For 10 grand less, and I can have the convenience of not having to show, I can have the confidence of knowing it's gonna close because this is a cash buyer.
25:12
SPEAKER_01: In fact, I even get to pick the closing date.
25:14
SPEAKER_01: Like, yes, let's just sell this, and I'm just gonna move right now.
25:18
SPEAKER_01: I can go out and I can write an offer right away to my new home or in my new city, wherever that, wherever that's gonna be, and I can get it done.
25:26
SPEAKER_01: Granted, as the agent, maybe you were gonna make you know, double your commission for two deals, and now maybe you make let's say um four four percent instead of I don't know if we can say that.
25:38
SPEAKER_01: I'm not allowed to say that, right?
25:39
SPEAKER_01: You can say whatever the hell you want.
25:40
SPEAKER_01: All right, so let's say if you're the NARS show.
25:43
SPEAKER_01: Let's say you normally charge 3% per side, right?
25:45
SPEAKER_01: And so now you're gonna get three percent on the buy side when you go sell them a new house, and you only get one percent on the list side because you went through open door, but you don't have to spend any money on marketing, you have to spend any time on marketing, and what you all you have to do is you'd be their fiduciary through that.
26:00
SPEAKER_01: Um, and so I look at that as you just turned it faster, you saved money, and so your profit actually probably goes up.
26:06
SPEAKER_01: And you look good to the consumer because you brought them what was most important to them.
26:10
SPEAKER_01: And as fiduciaries, that's what we have to do.
26:13
SPEAKER_01: So I think that's reason number one, or or the way we first look at that.
26:17
SPEAKER_01: The other thing is here's the little secret they're not going to buy every single house.
26:23
SPEAKER_01: In fact, probably 30, 40 percent of the requests they get are automatically denied because they don't fit their buy box criteria.
26:32
SPEAKER_01: So I don't know about you, but that smells like opposite.
26:35
SPEAKER_01: What percentage is denied?
26:37
SPEAKER_01: It's like 40 percent, 30, 40 percent denied instantly, like they're not even gonna get an offer.
26:43
SPEAKER_01: So to me, what I hear is well, there's opportunity for listings.
26:48
SPEAKER_01: So, how can I be a value to them to where I can maybe meet some of these people that aren't that aren't that they're not gonna buy?
26:55
unknown: Right?
26:56
SPEAKER_01: So, maybe if I'm bringing them deals, they can bring me deals, and it can be kind of like we can work together.
27:00
SPEAKER_01: So I look at that that way of doing it too.
27:03
SPEAKER_01: But here's the other thing I really look at is this is at the end of the day, this is about having all of our cards on the table, being honest and open with all of the information.
27:14
SPEAKER_01: Again, I know not all states legally require a fiduciary relationship, but in Arizona we do.
27:20
SPEAKER_01: And I believe that if I'm smart enough to say go get Zillow's offer, then I also need to bring offer pads and I need to bring open doors.
27:30
SPEAKER_01: And in our case, in our market, we have a lot of institutional buyers who are buying who they do buy and hold.
27:35
SPEAKER_01: Like if I know there's all these instant offers out there available, if I'm smart enough to get one, I think I'm liable, I think I now have a liability and a responsibility to go get the rest as you're as you're so let's look at what all of our options are, and then we can we can say, hey, listen, here's what I think I can do on the MLS.
27:52
SPEAKER_01: By the way, it's gonna take this much time.
27:53
SPEAKER_01: Here's the net.
27:54
SPEAKER_01: Here's what I think if you put this much money into it, might be able to get a little bit more.
27:58
SPEAKER_01: Here's what I can get to right now, or you can pick your closing date, you know, the confidence of them closing, and I'm gonna I'm you know, I'll I'll walk you through it and we'll go on to the next purchase.
28:08
SPEAKER_01: So I start looking at to me, this is just another tool.
28:11
SPEAKER_01: This is if you think about uh there's a lot, I know a lot of agents, you probably know a lot of agents too.
28:16
SPEAKER_01: They work exclusively with home builders, and a lot of the work that they do they do is free in exchange for half of a deal, right?
28:24
SPEAKER_01: And so this isn't anything different than that, really, when you look at it, right?
28:28
SPEAKER_01: Helping with like a new home trade-in program, or it's not much different than say a guaranteed sale program.
28:34
SPEAKER_01: What we're saying to people now is this is a guaranteed offer program.
28:38
SPEAKER_01: Like in the other piece of it is the the other way we can use these, if we have these in the market, how much more powerful is your marketing statement or your phone calls, your text messages, your emails to your sphere and your clients, whether cold or warm, instead of saying, Would you like to know the value of your home?
28:55
SPEAKER_01: Hey, would you like an offer on your home?
28:58
SPEAKER_01: Because no, they don't want to know the value of their home.
29:00
SPEAKER_01: There's a thousand websites out there that they can go get the value of their home.
29:04
SPEAKER_01: What they do want to know is not theoretically what's the value, what would be the offer if I got an offer today?
29:10
SPEAKER_01: That's what they want to know.
29:12
SPEAKER_01: And so if you can be the person in your market to be the authority on that, trust me, you will stand out from the competition.
29:18
SPEAKER_02: So let's uh let's summarize that real quick.
29:20
SPEAKER_02: So we can use it, look, using iBuyers as a tool is the smart play.
29:26
SPEAKER_02: And if you're just open about what's going on and how they work, they are a tool you can use.
29:32
SPEAKER_02: And when you refer them a deal as an agent, if you actually have a seller and you refer them to open door or whoever, they will pay you 1%.
29:40
SPEAKER_02: They'll they'll pay you 1% for that.
29:43
SPEAKER_02: And it closes like that.
29:44
SPEAKER_02: You're not putting any money into marketing, you're not, you know, going through the whole process, you know, 30, 40 days, wherever you're at, sometimes less, sometimes more.
29:52
SPEAKER_02: Uh, it's just it's easy.
29:54
SPEAKER_02: So, in the scenario that you mentioned, where you can have some a seller who needs to sell before they can buy something else, and they're in a crazy hot market.
30:04
SPEAKER_02: I know Phoenix is like this, and and many markets are, it's such a pain in the ass because they can't, they're not going to get an offer accepted if it's uh contingent on their the sale of their home first.
30:16
SPEAKER_02: The seller's not going to take that offer.
30:18
SPEAKER_02: So now you have someone who will buy it, they'll have cash in their account, they can just go write an offer and they'll have all that equity.
30:26
SPEAKER_02: Hopefully, they have some, they can put down, they can make a more attractive offer that's not contingent and win in competitive markets.
30:35
SPEAKER_02: That's a very big deal.
30:36
SPEAKER_02: And by doing so, you're also earning a 1% referral fee from the iBuyer.
30:40
SPEAKER_01: Yeah, and I got I gotta tell you too, even if I wasn't earning a 1% referral fee from the iBuyer, the thing I'm doing though is making sure that my clients all know that they should come to me with these questions.
30:51
SPEAKER_01: Yep, that you've got to be honest.
30:52
SPEAKER_01: Yeah, come to me because I can help you.
30:54
SPEAKER_01: I'm the person that you come to when you want the truth and you want to help.
30:58
SPEAKER_01: And it might mean that I'm gonna lose quote, lose a deal here and there.
31:02
SPEAKER_01: Don't get me wrong, we're going to lose transactions to them over time, but there's no reason why we have to go completely out of business.
31:09
SPEAKER_01: And there's like the power of trying to fight against them rather than work with them to me makes so much more sense and such a greater use of our resources.
31:17
SPEAKER_01: Uh, and so why not position ourselves as the ibuyer expert and so that your clients know, come to you first?
31:24
SPEAKER_01: To me, that's that's the real play, and that's why it's so important to get educated on these things and why I'm excited that there's finally some education out there in the market.
31:32
SPEAKER_01: In Phoenix, we kind of forget about it again.
31:34
SPEAKER_01: You know, they'll they'll do four to six hundred transactions a month here in Phoenix.
31:39
SPEAKER_01: So it's sort of, yeah, we're just used to it.
31:42
SPEAKER_01: And I I forget that I go everywhere else to other markets.
31:45
SPEAKER_01: You know, I was teaching the Pacific Northwest recently, and it's like, oh man, they're barely doing 10 or 20 deals a month here.
31:51
SPEAKER_01: These people have no idea what's about to hit them.
31:53
SPEAKER_02: Right.
31:54
SPEAKER_01: So get out in front of this while you can.
31:57
SPEAKER_02: Yeah.
31:59
SPEAKER_02: You you definitely gave it a great little nugget there.
32:01
SPEAKER_02: If you can market yourself as the iBuyer expert, or you know, and consumers don't know the term i buyer.
32:07
SPEAKER_02: That that's that's industry jargon.
32:09
SPEAKER_02: So don't use that, but an instant offer, uh, instant offer expert, where you can kind of just be the one they come to.
32:16
SPEAKER_02: So, like, oh my God, there's like eight different options here, which which one's best, which one's reputable?
32:21
SPEAKER_02: And you can advise them and guide them through that.
32:23
SPEAKER_02: Uh, you're doing what's best for them.
32:25
SPEAKER_02: They know they can come to you because you're honest, whether it benefits you or not.
32:29
SPEAKER_02: That's just good business.
32:31
SPEAKER_02: And even if maybe you do lose a deal in that situation, but they're you you know they're they're gonna be stoked because they had less stress, they got what they needed.
32:40
SPEAKER_02: Do you think they're gonna talk about you positively to anyone?
32:44
SPEAKER_01: And if they might refer you.
32:45
SPEAKER_02: Exactly right.
32:46
SPEAKER_02: Exactly right.
32:47
SPEAKER_02: Rather than so many agents out there who are doing the same thing they do with Zillow with uh Zestomates, is you go out there and bad mouth it.
32:55
SPEAKER_02: Oh, you don't want to do that.
32:56
SPEAKER_02: They take a 10% fee, they take what you know, whatever fee.
32:59
SPEAKER_02: That might be factual.
33:00
SPEAKER_02: But what it sounds like to a consumer who's who's been seeing the marketing from these iBuyers, marketing their marketing's on point.
33:09
SPEAKER_02: And so when they hear you, a real estate agent, badmouth them, it sounds like you're blockbuster badmouthing Netflix.
33:16
SPEAKER_01: Yep, that's exactly what it sounds like.
33:18
SPEAKER_01: And you're going to be, it's gonna look bad on you in the future.
33:21
SPEAKER_01: There's no doubt about it.
33:22
SPEAKER_01: You know, the the other thing too that I'll hear a lot of agents say, which is, oh, that's fine.
33:27
SPEAKER_01: They can keep there, uh they bought a house in my neighborhood and they paid five grand more than what what it was worth to begin with.
33:33
SPEAKER_01: They probably lost 30 grand on the deal.
33:35
SPEAKER_01: How they can't operate like that.
33:37
SPEAKER_01: First of all, let's be really clear.
33:39
SPEAKER_01: They've like open door alone has raised over 4 billion.
33:43
SPEAKER_01: That's billion with a B dollars in the last five years, okay?
33:47
SPEAKER_01: Yeah so they have cash, okay?
33:49
SPEAKER_01: They have money.
33:50
SPEAKER_01: And second of all, who cares?
33:52
SPEAKER_01: It doesn't matter, it shouldn't matter to you if they're losing money or making money.
33:56
SPEAKER_01: The Amazon lost money for 20 years.
33:58
SPEAKER_01: Nobody cared about that.
33:59
SPEAKER_01: They they came out of it, you know, they seem to be doing okay.
34:03
SPEAKER_01: Nobody was going, oh, Amazon's losing money, they'll never put bookstores out of business or they'll never change the retail landscape.
34:09
SPEAKER_01: Yet they did.
34:11
SPEAKER_01: And so let's let's not worry about whether they're making money or losing money, because that's that's none of our business, right?
34:17
SPEAKER_01: I know agents that operate at a loss all the time, but they got the prettiest billboards and the nicest marketing out there with their mug all over the place.
34:24
SPEAKER_01: Good for them.
34:25
SPEAKER_01: You know, it's not how I want to roll, but good for them.
34:28
SPEAKER_01: And so let's let let's not concern ourselves with that side of it.
34:32
SPEAKER_01: Let's concern ourselves with the consumer side of it.
34:35
SPEAKER_01: Um, so many uh people I hear just grandstanding from stage and this rallying cry of like we've got to, we've got to fight against the disruption.
34:44
SPEAKER_01: Yes, I do believe we all have to band together as realtors more than ever.
34:48
SPEAKER_01: And I don't believe our rallying cry should be around how do I save my commission.
34:53
SPEAKER_01: I think our rallying cry should be how do we provide a better consumer experience?
34:57
SPEAKER_01: Because overall, as an industry, we sucked at it for years.
35:00
SPEAKER_01: And so we've got to get better as an industry and provide a better consumer experience and no longer be thought of as slightly better or worse in some cases than, say, like a used car salesperson, right?
35:11
SPEAKER_01: Like we should absolutely be looking to how do we up that game and how do we provide that Amazon level of customer service.
35:18
SPEAKER_02: So I'm gonna ask a question, and anyone listening, I want you to answer this to yourself.
35:23
SPEAKER_02: If you are a consumer and you had two agents, two agents come over to talk about listing your home.
35:29
SPEAKER_02: One of them showed up and they have one option: list the home, you know, put 10 grand into repairs, you're gonna sell it for this.
35:35
SPEAKER_02: Here's what you'll net.
35:37
SPEAKER_02: The next one comes, they say, Hey, I can list it, sure, put 10 grand into fixing it up, whatever, you're gonna net this.
35:43
SPEAKER_02: Or, hey, if you need to sell it fast, you're gonna make a little bit less, but you can sell it fast, you're not gonna have to do those repairs, you're gonna get cash in hand in a week.
35:52
SPEAKER_02: Now they have two options.
35:54
SPEAKER_02: Which agent are you going to trust more?
35:56
SPEAKER_02: And look, uh, you know, which one are you going to appreciate more?
36:00
SPEAKER_02: Obviously, the one that brought you more options.
36:03
SPEAKER_02: So that's what that's where you're going to do right by your clients is by just accepting the fact these iBuyers, whether they're making money or not, they are buying homes.
36:14
SPEAKER_02: That's all that matters.
36:15
SPEAKER_02: Are they buying homes or not?
36:17
SPEAKER_02: The answer is yes.
36:18
SPEAKER_02: A lot of them their business model is for them to figure out are they buying homes?
36:22
SPEAKER_02: Yes or not?
36:23
SPEAKER_02: Yes.
36:23
SPEAKER_02: Cool.
36:24
SPEAKER_02: How can I bring value to the seller?
36:26
SPEAKER_02: Here's here, I can net you more.
36:28
SPEAKER_02: Here's what all these other guys are offering.
36:30
SPEAKER_02: Which one's best?
36:31
SPEAKER_02: Sometimes they might actually take the quick sale for less money.
36:34
SPEAKER_02: Most of the time they won't.
36:36
SPEAKER_02: But either way, you brought them more options than less.
36:39
SPEAKER_02: Is that a good thing or a bad thing?
36:41
SPEAKER_02: It's a good thing.
36:43
SPEAKER_02: And that's how I started my career, Kevin.
36:45
SPEAKER_02: I I don't know if you've ever done this on listing presentations.
36:48
SPEAKER_02: Um, but when I first started back in 2011-ish, um or 2010, I don't know, whatever.
36:55
SPEAKER_02: I've been an agent for like nine years, so do the math.
36:58
SPEAKER_02: Um, there were a ton of short sales, ton of REOs in Salt Lake.
37:01
SPEAKER_02: And I know Phoenix is very very similar because you were listing all of them.
37:05
SPEAKER_02: Um, but I had an investor who my broker, I mean, he flips a bunch of homes.
37:12
SPEAKER_02: He's flipped 500 something homes, and he's like, hey, whenever you go to a listing presentation, just know um, you know, we'll we'll buy it.
37:18
SPEAKER_02: You know, it's just uh it's just a matter of what price.
37:21
SPEAKER_02: So I went into listing presentations with an investor offer, and you know, one time out of 50 maybe they they took that, but I got more listings because I brought more options.
37:33
SPEAKER_02: That that's no different than what iBuyers are providing us right now.
37:36
SPEAKER_01: It's that simple.
37:37
SPEAKER_01: And and I think some of us get this, you know, we think it's the the top dollars, the only thing that matters.
37:43
SPEAKER_01: And I think that's so self-righteous for us to think that we know what's best for them rather than just providing options and letting them choose what's best for them.
37:53
SPEAKER_01: Um yes, some people will leave money on the table because time, guaranteed, you know, having the confidence and the convenience of it, like those are the things that matter to them more than a couple extra bucks.
38:08
SPEAKER_01: And it shouldn't be our we shouldn't be telling them what's right or wrong for them.
38:12
SPEAKER_01: Like that, that that is not what we are.
38:15
SPEAKER_01: That that is not our job.
38:16
SPEAKER_01: Our job is to provide the options, make sure they know it's available to them, put their financial needs ahead of our own, and let them make the decision.
38:25
SPEAKER_01: That that's that's what we should be doing, not you know, trying to be as antiquated as as we have been as an industry.
38:32
SPEAKER_02: Yeah, and and bad mouthing it, it just makes us look petty and unprofessional and scared.
38:39
SPEAKER_02: Um, you know, and when you do that, when when agents are are bad mouthing this other business model, it like you said in the beginning, it almost makes the the uh consumer more curious.
38:51
SPEAKER_02: They're like, interesting, I didn't know about this business model, but now I'm curious.
38:55
SPEAKER_02: And then you might have just referred a deal that you didn't realize you referred.
39:00
SPEAKER_03: Exactly it.
39:01
SPEAKER_02: That's exactly it.
39:03
SPEAKER_02: Um is there so iBuyers have definitely taken off in a in a you know, they're getting they're gaining market share.
39:10
SPEAKER_02: Have there been any negatives that have come from it?
39:13
SPEAKER_02: Like, is there anything that um like what have what's happened over the five years in Phoenix since Open Door launched that maybe wasn't anticipated by them?
39:24
SPEAKER_02: Like what adjustments have they had to make that maybe they weren't doing in the beginning?
39:28
SPEAKER_02: How have they had to adjust to market conditions or or consumer attention and all that?
39:32
SPEAKER_01: Well, you know, the thing is they've adjusted that that's what they've done, I think, in a way, beautifully.
39:37
SPEAKER_01: And in a way, it's kind of like, yeah, no wonder.
39:40
SPEAKER_01: Like they've got all this money, they can do that.
39:42
SPEAKER_01: Everything from their marketing, I mean, listen, man, if you when you come to Phoenix, you can't avoid iBuyers.
39:49
SPEAKER_01: I mean, I'm just mean, you just physically are present in Phoenix.
39:53
SPEAKER_01: Everything from radio, TV, billboards, you name it, you can't avoid them.
39:58
SPEAKER_01: So um, they have absolutely figured out how to scale their marketing and their presence.
40:03
SPEAKER_01: They have made different changes on how they work with agents.
40:06
SPEAKER_01: They've made sure that they put effort into making sure agents know that they're not out to do away with us.
40:13
SPEAKER_01: Um, they've changed their approaches and the way they talk to agents, the different deal.
40:17
SPEAKER_01: You know, it wasn't that you could always get a 1% referral fee.
40:20
SPEAKER_01: Um, in fact, it wasn't even that they would even weren't even open to referrals from agents for a while because they just didn't realize that that would be a great source of business for them.
40:28
SPEAKER_01: Because like they're truly coming in this from a different perspective and going, how do we change the game here to make this better for the consumer?
40:35
SPEAKER_01: So I don't, in fact, I don't know that there's anything that they haven't changed or that they haven't adjusted over the five years.
40:40
SPEAKER_01: They I've seen them continuously adjust things.
40:44
SPEAKER_01: And what I what the part about it that I admire that I see show up consistently is it seems to me that if it's good for the consumer, they're willing to do it.
40:56
SPEAKER_02: And what we also have to be honest about and just accept is that companies like Opendoor with their 4 billion plus in financing and Zillow, you know, they are Silicon Valley companies.
41:10
SPEAKER_02: They're tech companies with great marketing.
41:12
SPEAKER_02: And so a company like that, they sure they they probably have people who have been in the real estate business before, but they approach uh getting clients from like they come into our industry as outsiders and look at it not as how it's been done for the last however long, they look at it as how it should be done.
41:32
SPEAKER_02: That's why they're winning, is because they don't have all these bad habits.
41:35
SPEAKER_02: They don't they're not they haven't drawn a line in the sand of how they're gonna do things because you know, this is this my value is this, and I won't work for they don't do that.
41:45
SPEAKER_02: Um, and they're winning, they're gaining market share.
41:48
SPEAKER_02: It's really interesting.
41:49
SPEAKER_02: Um and an adjustment that I've seen the industry make is, and I alluded to this in the beginning, there's two different kinds of iBuyers.
41:57
SPEAKER_02: There's the institutional ones, then there's the brokerage-backed iBuyers, which I think are fantastic for agents.
42:05
SPEAKER_02: Uh Keller Williams announced theirs.
42:07
SPEAKER_02: It's it's really a partnership with OfferPad.
42:09
SPEAKER_02: Um, but then there's also thank you.
42:13
SPEAKER_02: My wife just brought me some coffee.
42:14
SPEAKER_02: Thanks.
42:16
SPEAKER_02: Um, there's it is awesome.
42:18
SPEAKER_02: She's the best.
42:19
SPEAKER_02: Um EXP has has announced their their iBuyer program to to add a tool in the tool belt of agents, which I'm super stoked about.
42:30
SPEAKER_02: And I'm sure other brokerages will follow suit.
42:32
SPEAKER_02: That there's probably brokerages that have uh iBuyer programs that I just I'm not aware of.
42:36
SPEAKER_02: I don't know if Remax has one or not.
42:38
SPEAKER_02: They will.
42:39
SPEAKER_02: But how are those different?
42:40
SPEAKER_02: How's the Keller Williams and the EXP iBuyer programs, how is that different from Open Door?
42:47
SPEAKER_01: So I I think actually the way they're different is is kind of all the same in the sense that it's and this is where I think as the agent, we need to be real careful, okay?
42:57
SPEAKER_01: And this was my this was my criticism of the Keller Williams and and OfferPad deal.
43:03
SPEAKER_01: And it's gonna be my criticism of any other deal, including EXP.
43:08
SPEAKER_01: And I love this company, man.
43:09
SPEAKER_01: I I absolutely adore EXP.
43:11
SPEAKER_01: I love the I love what we're doing as a company.
43:14
SPEAKER_01: But if we only bring one option, we are doing the consumer a disservice.
43:18
SPEAKER_01: And so um opendoor is only one option.
43:21
SPEAKER_01: Offer pad is only one option.
43:23
SPEAKER_01: And granted, there might be some markets, like you just mentioned, um, that uh, you know, that that uh opendours announced they're coming, right?
43:31
SPEAKER_01: Offerpad is there.
43:32
SPEAKER_01: So like, yeah, eventually they'll all be there, right?
43:35
SPEAKER_01: If it's good for one of them, there's gonna be two or three or four of them.
43:38
SPEAKER_01: And so what I think what we have to do is realize that they all look for something a little bit different.
43:43
SPEAKER_01: They all think that they're all working on their own secret sauce, right?
43:46
SPEAKER_01: And their own, hey, this is how we really scale by buying the this house and this, you know, in this buy box, if you will.
43:53
SPEAKER_01: Um so I think we've got to be careful not to go, hey, open doors the only one or offer pad's the only one.
44:00
SPEAKER_01: Or this buyer is the only one.
44:01
SPEAKER_01: And actually, again, it comes back to that fiducia responsibility, which is if I'm smart enough to bring in one offer, I feel like it's my duty to bring in multiple offers.
44:10
SPEAKER_01: So that way the consumer knows.
44:12
SPEAKER_01: Because as an example, okay, this is I'm gonna talk about the Phoenix market and the Phoenix market only.
44:17
SPEAKER_01: As an example, we're OfferPad, by the way, OfferPad also started here.
44:20
SPEAKER_01: Uh Brian Bear is a local agent, and he started it here.
44:24
SPEAKER_01: So in our market, OfferPad is consistently the least attractive offer between OfferPad, Open Door, and Zillow.
44:34
SPEAKER_01: Okay?
44:35
SPEAKER_01: They're consistently the least attractive offer to the seller.
44:38
SPEAKER_01: Now their hook is they can do free moves.
44:41
SPEAKER_01: Trust me, it's not free, it's built into the cost structure, right?
44:44
SPEAKER_03: Right.
44:44
SPEAKER_01: And so here's the way I look at it, here's the danger.
44:46
SPEAKER_01: If I'm a KW agent, as an example, and I say, hey, listen, we can do this, and I sort of push that offer pad deal because I know that I get the listing back, and that's in my best interest, not theirs, not the consumers.
44:59
SPEAKER_01: And so I worry about I worry about brokers doing that.
45:03
SPEAKER_01: I think what we all need to do as brokerages is we need to have, and I believe this is where EXP is going with it, though I don't know for sure, is like there should be like a marketplace, right?
45:11
SPEAKER_01: Or just as agents, we need to have our own marketplace for here's actually all the offers I can bring you from our from our area.
45:18
SPEAKER_01: You know, here's the institutional buyers along with the iBuyers with Zoo, Zillow, offer pad, open door, and we should be able to present multiple options to the consumer and not just these onesies, twosies.
45:30
SPEAKER_01: And listen, to your point, I think we should also, again, what did I say?
45:33
SPEAKER_01: I started this off by saying we should learn from these companies.
45:36
SPEAKER_01: Maybe this is the opportunity for us to start buying more and creating a different or additional business model for ourselves as real estate agents.
45:46
SPEAKER_02: I love that.
45:47
SPEAKER_02: And uh see, that's the thing that so many agents are so tunnel vision on commission being their income source.
45:56
SPEAKER_02: And and look, that's good to be focused, but to ignore stuff that's right in front of your freaking face that does not distract from what you're currently doing.
46:04
SPEAKER_02: And I'm talking about, you know, buying homes that when the when the situation's right, um, your brokerage choice that may or may not offer certain additional revenue streams and everything.
46:14
SPEAKER_02: And yes, I'm talking about exp.
46:17
SPEAKER_02: Um it's being too tunnel vision is a bad thing.
46:21
SPEAKER_02: And so, yeah, that there's so many deals that come across uh that come across because we're out there talking to sellers, and everyone has a unique situation and unique needs.
46:30
SPEAKER_02: So you're right.
46:31
SPEAKER_02: Um why why aren't agents just being their own iBuyer?
46:36
SPEAKER_02: Yeah, why not?
46:38
SPEAKER_02: Right.
46:38
SPEAKER_02: And some are.
46:39
SPEAKER_02: I mean, in fairness, some are.
46:41
SPEAKER_02: There's uh, I forget the name, I think he's in Florida, but there's there's a an agent that sells over a thousand homes a year, but he has this uh software program that he's built.
46:51
SPEAKER_02: You may even know who I'm talking about.
46:52
SPEAKER_02: I heard about it at an EXP mastermind.
46:56
SPEAKER_02: But um he has a he's built his own proprietary software that reaches out to all the instant offer companies and gets offers.
47:04
SPEAKER_02: And then he goes to the seller, like, here's what we can do if we list it, here's all the other opportunities.
47:09
SPEAKER_02: They list most of them.
47:10
SPEAKER_02: Sometimes they refer it to the instant offer iBuyer for 1%, and they close a hell of a lot more deals because when you refer one out because it's in the best interest of the client, you now you've now freed up time to go work with more people.
47:22
SPEAKER_02: Um that's just an agent who did that.
47:25
SPEAKER_02: Why can't we do that?
47:26
SPEAKER_01: You know, exactly.
47:27
SPEAKER_01: Why can't we?
47:28
SPEAKER_01: And and don't get me wrong, like uh I've gone down the path of software and built technology into my company, and that's expensive and not something I ever want to do again.
47:36
SPEAKER_01: Yeah, that's a beast.
47:38
SPEAKER_01: But there are ways to leverage what other what other people have done.
47:41
SPEAKER_01: You know, I can think of um uh so there's a there's a new certification course out there on how to work with these companies, not just not just iBuyers, but also institutionals.
47:52
SPEAKER_01: And part of one of the things that they're that they offer is the ability to have a website like that.
47:56
SPEAKER_01: So you can go out and sort of be that travelosity, if you will, of iBuyers and of these instant offers.
48:03
SPEAKER_01: And so, okay, I'm not gonna go hire, trust me, I'm not going to hire developers again and bring them in-house again.
48:09
SPEAKER_01: I won't do that again, costs a lot of money.
48:11
SPEAKER_01: Um, but what what I can just plug into this other this other system and do the same thing.
48:16
SPEAKER_01: Yeah, I'm in all day long.
48:18
SPEAKER_01: I'm in.
48:18
SPEAKER_02: Yep.
48:19
SPEAKER_02: The underlying theme here, guys, is presenting more offers to to a potential seller is good for you.
48:27
SPEAKER_02: It's good for them.
48:29
SPEAKER_02: It's it's just good business.
48:31
SPEAKER_02: And yes, iBuyers, you might lose out on some deals.
48:34
SPEAKER_02: You may never talk to a seller because they went with an iBuyer before they reached before they reached out to you.
48:40
SPEAKER_02: That's going to happen.
48:41
SPEAKER_02: They're gaining market share, yes.
48:43
SPEAKER_02: But to put your head in the sand and just blanket statement, iBuyers bad, is is really doing yourself, your business, your family, and your potential clients a huge disservice.
48:54
SPEAKER_02: And it's not intellectually honest.
48:56
SPEAKER_02: It's just not.
48:57
SPEAKER_02: Exactly.
48:58
SPEAKER_02: Yeah, I'm I'm not scared of iBuyers.
49:00
SPEAKER_02: You don't sound scared of iBuyers.
49:02
SPEAKER_01: I mean, I embrace it, man.
49:03
SPEAKER_01: I first of all, I just embrace change.
49:05
SPEAKER_01: Um, I like technology, so I'm sort of uh I I guess I lean that way naturally, but the at the end of the day, this is this has forced me to look at my business differently, and I like that.
49:16
SPEAKER_01: It's challenged me.
49:17
SPEAKER_01: And I can tell you right now, like a lot of the business conversations that my business partner, Fred and I have, especially for the last few months, has been around how do we get better at dealing with this and embracing iBuyers so that way we can capitalize in a bigger way on in our business.
49:31
SPEAKER_01: Now we've we've been working with them for a couple of years, um, but it's really forced us this conver, I'm glad this conversation is becoming so prevalent in 2019 because it's forced us to up our game a little bit too.
49:44
SPEAKER_01: And so I I think again, competition's good.
49:47
SPEAKER_02: Uh it is, and and when things change so fast and and when there's more competition, that creates new opportunities.
49:55
SPEAKER_02: Yeah.
49:55
SPEAKER_02: It does.
49:56
SPEAKER_02: And look, guys, if you're not being forced to adjust because competitors are adjusting, you're gonna be out of business eventually because they're they're they're gonna adjust.
50:04
SPEAKER_02: Other people will adjust because this company adjusted.
50:08
SPEAKER_02: You have to roll with the punches.
50:10
SPEAKER_02: I mean, the technology is moving so damn fast.
50:12
SPEAKER_02: Consumer uh what the what the consumers want and need is changing so fast.
50:18
SPEAKER_02: You know, 10 years ago, they didn't know that they wanted to do everything on their phone.
50:24
SPEAKER_02: You know, but now they do.
50:26
SPEAKER_02: I sure as hell know that.
50:27
SPEAKER_02: I want to do everything on my phone too.
50:29
SPEAKER_02: Um, it's just the way it is.
50:30
SPEAKER_02: And if you don't adjust your business model, do you think it's gonna survive long term?
50:33
SPEAKER_02: It's come on.
50:35
SPEAKER_02: It we all know we all know the answers to this.
50:37
SPEAKER_02: We just have to be honest and uh put in the work.
50:40
SPEAKER_02: So, Kevin, I appreciate so much you bring in your expertise and your perspective.
50:45
SPEAKER_02: Um, I didn't realize Open Door has been around for five years in Phoenix.
50:48
SPEAKER_02: That's interesting.
50:49
SPEAKER_02: So that's a long time.
50:50
SPEAKER_02: They've learned a lot.
50:52
SPEAKER_02: They've done a lot of deals.
50:53
SPEAKER_02: Absolutely.
50:54
SPEAKER_02: Oh, and something we haven't even talked about here is like Zillow with their offers program.
50:59
SPEAKER_02: Guess what?
50:59
SPEAKER_02: Most most sellers don't go with Zillow.
51:02
SPEAKER_02: But guess what?
51:03
SPEAKER_02: When they go down that path to get an offer, now Zillow has their information and knows, oh, this is a seller lead.
51:11
SPEAKER_02: They're not stupid.
51:12
SPEAKER_02: They're now becoming this massive source of seller leads, which we all want.
51:16
SPEAKER_02: Um, open door, they have all that data too.
51:18
SPEAKER_02: Like every company that has a consumer fill out a form with their email address saying, Hey, I want an offer on my home, that's a great seller lead.
51:27
SPEAKER_02: I don't know about you, but I want my brokerage to have those leads.
51:30
SPEAKER_02: Me too.
51:30
SPEAKER_02: Yeah.
51:30
SPEAKER_02: So so that's a silver lining to this.
51:32
SPEAKER_02: And if you put your own program together, you'll have great seller leads too, even if they don't take your offer.
51:38
SPEAKER_02: You know that you know who they are and you know that they're interested.
51:41
SPEAKER_02: So Kevin, thank you so much.
51:43
SPEAKER_02: Um, and if you guys have not listened to Kevin and Fred's podcast, it has a very clever name.
51:49
SPEAKER_01: Yeah, we're so we're super original.
51:50
SPEAKER_01: That's our thing.
51:51
SPEAKER_02: Absolutely.
51:52
SPEAKER_02: The uh Kevin and Fred's podcast.
51:54
SPEAKER_01: Kevin and Fred's uh next level podcast.
51:56
SPEAKER_01: Yes.
51:57
SPEAKER_02: Next level podcast, yes.
51:58
SPEAKER_02: See, see, that is cool.
51:59
SPEAKER_02: And you guys have built a whole brand about around next level and you guys do events.
52:03
SPEAKER_02: Um it I'll give you a in a second, I'll give you a chance to let everyone know where they can find you.
52:08
SPEAKER_02: But uh to end every show, we do these rapid fire questions, uh these either-or questions, just pick one or the other uh that that help people get to know you a little bit better, and then I'll ask for an app recommendation for an app that you're obsessed with right now.
52:22
SPEAKER_02: Doesn't have to be a real estate or business one, and then uh I'll give you a chance to uh to let everyone know where they can find you.
52:29
SPEAKER_02: So you ready for some rapid fire?
52:31
SPEAKER_02: Rapid fire, let's do it.
52:33
SPEAKER_02: All right, my friend.
52:34
SPEAKER_02: Facebook or Instagram?
52:36
SPEAKER_02: Facebook.
52:38
SPEAKER_02: Facebook or Snapchat?
52:40
SPEAKER_02: Facebook.
52:41
SPEAKER_02: Instagram or LinkedIn.
52:44
SPEAKER_01: Instagram.
52:45
SPEAKER_02: Book or podcast.
52:48
SPEAKER_01: Depends on the day, overall, podcast.
52:53
SPEAKER_02: Nice.
52:54
SPEAKER_02: iPhone or Android?
52:56
SPEAKER_01: Oh man.
52:57
SPEAKER_01: Is that a real question?
52:58
SPEAKER_01: iPhone.
52:59
SPEAKER_02: Dude, people still answer Android.
53:01
SPEAKER_02: They still do.
53:02
SPEAKER_02: People I respect even.
53:03
SPEAKER_01: You you should ask that question first so you can filter them out and not put them on your show.
53:08
SPEAKER_02: That's right.
53:09
SPEAKER_02: That should be my only qualifying question.
53:11
SPEAKER_02: iPhone or Android.
53:12
SPEAKER_02: Exactly.
53:13
SPEAKER_02: Alexa or Google Home?
53:15
SPEAKER_01: Uh I'm afraid of both of them.
53:16
SPEAKER_01: As much as I love tech, uh Really?
53:18
SPEAKER_01: Yeah, uh it's funny.
53:19
SPEAKER_01: I actually uh I don't Alexa, I guess.
53:22
SPEAKER_01: I I don't I I don't I'm not a fan of either.
53:25
SPEAKER_02: Okay, fair enough.
53:26
SPEAKER_02: Burgers or pizza?
53:28
SPEAKER_02: Ooh, burger.
53:30
SPEAKER_02: Nice.
53:31
SPEAKER_02: New York or LA?
53:32
SPEAKER_01: LA, but not even close.
53:34
SPEAKER_01: Really?
53:35
SPEAKER_01: Not even close.
53:36
SPEAKER_02: Okay, fair enough.
53:37
SPEAKER_01: I'm a beach guy.
53:39
SPEAKER_01: I'm just a West Coast.
53:42
SPEAKER_02: Absolutely.
53:42
SPEAKER_02: The the flip-flops give it away.
53:44
SPEAKER_01: Flip-flops in the hair.
53:45
SPEAKER_02: Yes, yes, exactly.
53:47
SPEAKER_02: If you guys you guys can't see him right now, he has a flowing locks.
53:50
SPEAKER_02: Uh like Fabio.
53:52
SPEAKER_02: Exactly.
53:53
SPEAKER_03: Uh baseball or football?
54:00
SPEAKER_01: That's like asking me to pick which kid I love more.
54:02
SPEAKER_01: I I don't I don't think I can pick between the two.
54:04
SPEAKER_02: Ooh, I like I like it.
54:06
SPEAKER_02: Um okay, NFL or Major League Baseball.
54:11
SPEAKER_02: Does that help?
54:12
SPEAKER_01: Same.
54:13
SPEAKER_01: Well, so maybe this will give you more insight.
54:16
SPEAKER_01: The pros versus college, pros all day long.
54:20
SPEAKER_02: Okay.
54:20
SPEAKER_02: You prefer prosperity.
54:21
SPEAKER_01: I'll take NFL or NBA or Major League Baseball over NCAA ten times out of ten.
54:26
SPEAKER_02: Okay.
54:27
SPEAKER_02: There, that that definitely separates separates it.
54:31
SPEAKER_02: Um I was gonna ask mountains or beach.
54:34
SPEAKER_02: Beach.
54:34
SPEAKER_02: You're a beach.
54:36
SPEAKER_02: Uh are we in a bubble nationwide or not a bubble, real estate-wise?
54:42
SPEAKER_01: I think it depends on how you define bubble.
54:44
SPEAKER_01: So I would say the way I define bubble, not a bubble.
54:46
SPEAKER_02: Right.
54:47
SPEAKER_02: Cool.
54:47
SPEAKER_02: Podcast or vlog?
54:49
SPEAKER_02: Podcast.
54:51
SPEAKER_02: YouTube or Facebook Live.
54:54
SPEAKER_02: Facebook Live.
54:56
SPEAKER_02: Uber or Lyft?
54:57
SPEAKER_02: Lyft.
54:59
SPEAKER_02: Keller Williams or EXP.
55:03
SPEAKER_02: Dude, you're um everyone knows the answer to that, obviously.
55:06
SPEAKER_02: Uh you're you're I'm with I'm with Gary.
55:10
SPEAKER_02: Kelly, the CEO of SW of Southwest Airlines.
55:13
SPEAKER_02: Yeah.
55:14
SPEAKER_02: So freaking funny.
55:15
SPEAKER_02: So funny.
55:16
SPEAKER_02: Uh because how crazy is it that Gary, Keller, and Kelly are so close.
55:21
SPEAKER_02: I don't know.
55:22
SPEAKER_01: That was hilarious.
55:24
SPEAKER_01: Yeah, it's the small things in life that really make me happy.
55:28
SPEAKER_01: Where was that video?
55:29
SPEAKER_02: Is that on Facebook?
55:30
SPEAKER_01: That was on Facebook, yeah, where we went live.
55:32
SPEAKER_01: Basically, it was like our one-year anniversary of being at EXP.
55:36
SPEAKER_01: And so we uh decided to give a shout out to our favorite CEO named Gary.
55:40
SPEAKER_01: Yep.
55:40
SPEAKER_01: Gary K.
55:41
SPEAKER_01: GK, Gary Kelly, Southwest Airlines.
55:44
SPEAKER_02: That's dude, that's awesome.
55:46
SPEAKER_02: Last one, Gary V or Grant Cardone.
55:49
SPEAKER_02: Gary V all day long.
55:50
SPEAKER_02: Love it.
55:51
SPEAKER_02: Awesome.
55:52
SPEAKER_02: And then are there any apps on your phone right now that that you're obsessed with that you'd recommend?
55:56
SPEAKER_01: Yeah, you know, I had to think about that for a moment.
55:59
SPEAKER_01: Probably I'm gonna give you two, and this just where my head's at these days is my zero fasting app and my aura ring app.
56:09
SPEAKER_01: What's the second one?
56:10
SPEAKER_01: Uh Aura ring.
56:12
SPEAKER_01: So like my ring uh is an activity tracker.
56:15
SPEAKER_01: Most importantly, it tracks my sleep.
56:17
SPEAKER_01: Um, and so that's something I'm on constantly.
56:20
SPEAKER_01: I mean, it does steps and all that other stuff too, but sleep is for me where it's at.
56:25
SPEAKER_02: Okay, so instead of like a fitness tracker watch, it's just a ring.
56:29
SPEAKER_02: I haven't seen those before.
56:30
SPEAKER_02: That's cool.
56:31
SPEAKER_02: Awesome.
56:31
SPEAKER_02: Well, Kevin, where can people find you?
56:33
SPEAKER_02: Where can they where can they find your podcast?
56:35
SPEAKER_02: How can they uh find out more about you?
56:38
SPEAKER_02: Oh, damn it, I was gonna ask a very specific question for you that um that it kind of plays into where people can find you.
56:45
SPEAKER_02: Okay, but um chiropractor or neck hammock?
56:50
SPEAKER_01: Ooh, man.
56:52
SPEAKER_01: I love my neck hammock.
56:53
SPEAKER_01: I love my neck hammock.
56:55
SPEAKER_02: For those that don't know, what's the neck hammock?
56:57
SPEAKER_01: So it's that thing that you saw on Instagram ads and Facebook ads right right around Christmas time, like constantly.
57:04
SPEAKER_01: But it's literally a little tiny hammock built for the back of your neck, and it hangs off of like a doorway, or you can hang it off anything else, you just lay in it, and you're it's just super, it's like a little bit of uh what's that called?
57:16
SPEAKER_01: Um they'll do it at the chiropractor or physical therapist.
57:20
SPEAKER_03: Traction?
57:20
SPEAKER_01: Traction, yeah.
57:21
SPEAKER_01: So it's like it adds a little bit of traction and it's just super soft and pillowy.
57:26
SPEAKER_01: Like it's it's just amazing.
57:27
SPEAKER_01: Like if you just want to relax for 10 minutes, get in the neck hammock.
57:30
SPEAKER_01: It's amazing.
57:31
SPEAKER_02: And is that your product?
57:33
SPEAKER_01: No, although I thought about making it mine, uh, because I certainly sold plenty of them just by posting about it on Facebook.
57:39
SPEAKER_02: Oh, see, I thought it were what are you just an affiliate or you just like the product?
57:43
SPEAKER_01: No, dude.
57:43
SPEAKER_01: I just here's the true story.
57:45
SPEAKER_01: I love I love okay.
57:47
SPEAKER_01: You gotta know I like like if you give me the TV, I'll watch infomercials, okay?
57:52
SPEAKER_03: Yeah.
57:52
SPEAKER_01: So like you gotta know that I'm that guy.
57:54
SPEAKER_01: Like like Billy Mays was my hero.
57:56
SPEAKER_01: Um I'm I'm that guy.
57:58
SPEAKER_01: So you gotta know that I'm that guy.
57:59
SPEAKER_01: I like I love products.
58:00
SPEAKER_01: Um so it was just this thing.
58:02
SPEAKER_01: I kept seeing the ad, and my niece ended up buying it for me for Christmas, and I just I posted about it.
58:07
SPEAKER_01: I literally, just be being funny, I just posted like, oh, I got the neck hammock, but all these people commented, like, oh my god, I've been wondering about that.
58:14
SPEAKER_01: I keep seeing that in my ads.
58:15
SPEAKER_01: Let me know what you think.
58:16
SPEAKER_01: Like, and it went crazy.
58:17
SPEAKER_01: So I posted about it again the next day, and it went crazy again.
58:20
SPEAKER_01: And so it just became this thing.
58:22
SPEAKER_01: So it I eventually, after like my fifth post, I went and got an Amazon affiliate account and put it in there.
58:28
SPEAKER_01: So, you know, I I think I made eight dollars from the like 40 or 50 neckhammocks I sold.
58:33
SPEAKER_01: Um, so you know, I'm rich now.
58:35
SPEAKER_01: I've got I've got that, I've got that all that neckhammock money in my thinky bank.
58:40
SPEAKER_02: So yeah.
58:41
SPEAKER_02: Yeah, some people have that old money, you've got that neck hammock money.
58:43
SPEAKER_01: I've got that neckhammock money, absolutely.
58:45
SPEAKER_02: Yeah.
58:46
SPEAKER_02: That's crazy.
58:47
SPEAKER_02: It that's how powerful social media is.
58:49
SPEAKER_02: Like I thought I thought you invented the product or had some involvement with the company because you were I I don't know, that's just what I thought.
58:57
SPEAKER_01: So well, it just it got so crazy that I wouldn't change my uh my employer to Nechamic on Facebook just for that's what screwed me up.
59:06
SPEAKER_01: Just for the status update, because I knew because people were eating it up.
59:10
SPEAKER_01: It's so funny.
59:11
SPEAKER_01: It's like I had this thing a couple years ago with driverless Ubers.
59:14
SPEAKER_01: Um, and I still to this day, people it's that's it's the power of social media.
59:17
SPEAKER_02: Seriously.
59:19
SPEAKER_02: It's the Facebook.
59:20
SPEAKER_02: Um yeah, when you said you work at Nechamic, I that's what screwed me up.
59:24
SPEAKER_02: I was like, oh my god, that's awesome.
59:26
SPEAKER_02: So where can people find you?
59:28
SPEAKER_01: So Facebook is obviously the easiest.
59:31
SPEAKER_01: Um you can so we've got a Facebook group called Next Level Agents.
59:34
SPEAKER_01: Um so Facebook.com forward slash next groups forward slash next levelagents.
59:40
SPEAKER_01: Um find me Kevin Kaufman, K-A-U-F-F-M-A-N on Facebook.
59:44
SPEAKER_01: I don't know the I don't know my URL or handle for Twitter or Instagram.
59:49
SPEAKER_01: I'm on both, but so you can find me.
59:50
SPEAKER_01: It can't be that hard to find.
59:52
SPEAKER_01: Uh and then kevin and fred.com would be would be easy.
59:55
SPEAKER_02: Awesome.
59:56
SPEAKER_02: And we'll link up all your social media in the show notes.
59:59
SPEAKER_02: So with any with all of our episodes, just go to massive agentpodcast.com, click on episodes, or do slash episodes.
1:00:07
SPEAKER_02: And in the show notes, we'll have all of Kevin's social media.
1:00:11
SPEAKER_02: Uh, we'll link to his group.
1:00:12
SPEAKER_02: We might even link to the neck hammock.
1:00:14
SPEAKER_02: So send us your your affiliate link for that.
1:00:16
SPEAKER_02: I think we're gonna need we're gonna need to do that for sure.
1:00:19
SPEAKER_02: I I you know I think we'd be doing a disservice to the listeners if we didn't.
1:00:22
SPEAKER_02: So I think you're right.
1:00:24
SPEAKER_02: 100% awesome.
1:00:26
SPEAKER_02: Um, Kevin, I really appreciate it.
1:00:27
SPEAKER_02: You're someone I've looked up to for a while.
1:00:29
SPEAKER_02: Um, you know, when when you guys moved over to EXP, I remember because I I think because you guys are one of the big teams that Inman wrote about.
1:00:38
SPEAKER_02: Um part of this wave from Keller Williams to EXP.
1:00:41
SPEAKER_02: And when I first saw that, I was like, holy shit.
1:00:43
SPEAKER_02: And it it validated uh, you know, it validated the move I made because I I definitely looked up to you guys and respected you and and your reputation and the business you've built.
1:00:54
SPEAKER_02: So that said a lot.
1:00:56
SPEAKER_02: Um, and and then just following you within EXP and what you've been able to build and how you've been able to lead and grow a team and all that.
1:01:03
SPEAKER_02: Um, it's it's commendable and and I look up to you guys.
1:01:07
SPEAKER_02: You guys are doing a great job.
1:01:09
SPEAKER_02: Um, so keep it up, man.
1:01:11
SPEAKER_02: I really appreciate you being on the show.
1:01:12
SPEAKER_01: I appreciate it, man.
1:01:13
SPEAKER_01: I feel the same way.
1:01:14
SPEAKER_01: Like I've I've watched I've watched a lot of what you've done over the last year or two uh since you know Chelsea introduced us in a way she didn't really actually introduce us, but she made me aware of you and so watched your work too and super appreciate it.
1:01:26
SPEAKER_01: And uh thanks a lot for letting me come on the show and and chat about iBars with you.
1:01:30
SPEAKER_02: And Nechamics.
1:01:31
SPEAKER_01: And Nechamics, of course.
1:01:33
SPEAKER_02: You bet.
1:01:34
SPEAKER_02: Thanks, man.
1:01:34
SPEAKER_02: I'll talk to you soon.
1:01:35
SPEAKER_01: All right, buddy, take it easy.
1:01:36
SPEAKER_02: You see, you you just have to have the information.
1:01:39
SPEAKER_02: It's amazing how many times in life.
1:01:41
SPEAKER_02: This isn't just with realtors, this isn't just industry specific, this is human beings because there's so much information out there.
1:01:47
SPEAKER_02: But we we read a headline or we get a little bit of the information and then we make our mind up on the whole damn thing.
1:01:54
SPEAKER_02: But that is that serving us?
1:01:56
SPEAKER_02: Of course not.
1:01:57
SPEAKER_02: That's not serving us when when you're making your mind up with a fraction of the information.
1:02:03
SPEAKER_02: So iBuyers, as you just heard, can be a great tool to help you sell more homes if you understand them, if you know how they work, if they know if you know who they work for and who they usually don't work for, and factor that into your marketing, factor it into your business model.
1:02:18
SPEAKER_02: Guys, you can help more sellers by bringing them more off more offers, more options and more offers.
1:02:24
SPEAKER_02: That's gonna help you to get more listings versus the agent who just has one option for them.
1:02:30
SPEAKER_02: List your home.
1:02:30
SPEAKER_02: It's gonna cost this much, and here's what you'll net.
1:02:33
SPEAKER_02: You need to put this much in it in repairs, if any, and here's what you get.
1:02:38
SPEAKER_02: That's one option.
1:02:39
SPEAKER_02: You know, and some sellers will go for it, but if you bring multiple options, you're gonna get more deals.
1:02:43
SPEAKER_02: That's just a fact.
1:02:44
SPEAKER_02: It's common sense.
1:02:45
SPEAKER_02: All right, so make sure you factor that in and do not be scared of these damn iBuyers when you read about it in Inmin and you see a headline.
1:02:53
SPEAKER_02: And look, your brokerage, hope if you're with Keller Williams, you already know about how they've partnered with OfferPad.
1:02:58
SPEAKER_02: If you're with EXP, maybe you don't know yet that we've partnered with, I believe it's called Wedgewood, uh major home buyer.
1:03:05
SPEAKER_02: And we soon EXP will have our own iBuyer program.
1:03:08
SPEAKER_02: I've I've heard it's launching by the end of 2019.
1:03:11
SPEAKER_02: So that is going to be a huge tool in the tool belt of EXP agents, knowing that our brokerage, who's not trying to compete with us like an open door, uh, our brokerage is there to provide one of these options to the seller as well.
1:03:23
SPEAKER_02: So, and and either way, you get taken care of financially, your seller gets taken care of financially and and you know, ultimately.
1:03:30
SPEAKER_02: So it's just a great thing to be able to offer if you understand it.
1:03:34
SPEAKER_02: You know, speaking of making your mind up without having all the information, uh, since we all do this to a certain extent, and I've done this before, the brokerage you choose matters a lot.
1:03:44
SPEAKER_02: Okay.
1:03:45
SPEAKER_02: And if you don't think it does, then you haven't looked at a few brokerages.
1:03:49
SPEAKER_02: You haven't really gotten the information on what some other brokerages do offer and provide for their agents.
1:03:55
SPEAKER_02: It's not about how much it costs per transaction.
1:03:58
SPEAKER_02: That's it's important, but what's more important is what you get in return for that.
1:04:04
SPEAKER_02: If if if it cost you$10,000, but you made$50,000, is that a good investment?
1:04:11
SPEAKER_02: Or would you just go for the$1,000 thing because it's cheaper?
1:04:14
SPEAKER_02: Right?
1:04:15
SPEAKER_02: Obviously, you want the value.
1:04:16
SPEAKER_02: If I spend this much, how much do I get?
1:04:18
SPEAKER_02: Here's here's why I'm bringing this up, guys.
1:04:21
SPEAKER_02: Your brokerage matters a great deal.
1:04:22
SPEAKER_02: I made a strategic move at the at the middle of 2018, so just over a year ago, I made a very strategic move.
1:04:30
SPEAKER_02: For the first time in my real estate career, I switched brokerages.
1:04:32
SPEAKER_02: And I actually left a brokerage that was only, sorry, my timer was going off.
1:04:36
SPEAKER_02: I left a brokerage that was only$500 per transaction.
1:04:40
SPEAKER_02: And I went to EXP Realty, which is an 80-20 split, up until you you cap out at$16,000 paid for the year.
1:04:48
SPEAKER_02: So I was actually paying 20% per transaction up to a point versus$500 per deal.
1:04:53
SPEAKER_02: So on paper, if you're only looking at the cost per transaction right here and now, yeah, it cost me more money.
1:05:01
SPEAKER_02: But uh either I'm just really stupid, which I don't think I am, with some things, absolutely.
1:05:08
SPEAKER_02: But with this, no, it was a strategic business move because I looked at the value.
1:05:12
SPEAKER_02: And I'm telling you guys, if you have made up your mind about exp one way or another, if you're considering turning this off right now because you've already made your mind up, but you haven't really, you haven't really given it a full, honest, open-minded look, you're doing yourself a huge disservice.
1:05:29
SPEAKER_02: Look, if you give it an open, an open-minded, honest look and you decide that's not for you, did that cause you any harm?
1:05:36
SPEAKER_02: No.
1:05:37
SPEAKER_02: Maybe it takes you 30 minutes, you know, to look into it and get the information.
1:05:41
SPEAKER_02: And if you're like, uh, I still don't get it, I still don't like it, cool.
1:05:44
SPEAKER_02: Now you know.
1:05:45
SPEAKER_02: But at least you have the information.
1:05:47
SPEAKER_02: So if you if you're one of those people that's made up your mind about exp realty, but you have not gotten all the information, just stop.
1:05:54
SPEAKER_02: Okay?
1:05:55
SPEAKER_02: Get the information and then make up your mind.
1:05:58
SPEAKER_02: But when it's said like that, like How how could you not?
1:06:01
SPEAKER_02: So if you think you have all the information, you probably don't.
1:06:04
SPEAKER_02: Otherwise, you'd be with us.
1:06:06
SPEAKER_02: Seriously.
1:06:06
SPEAKER_02: You'd be on my team.
1:06:07
SPEAKER_02: We'd be working arm in arm, hand in hand, building our businesses together.
1:06:12
SPEAKER_02: So if you want to get the information, here's what you need to do.
1:06:16
SPEAKER_02: Just click play on a video.
1:06:18
SPEAKER_02: And then if when you have questions, reach out to me.
1:06:21
SPEAKER_02: That's it.
1:06:22
SPEAKER_02: Hit me up on Instagram at Massive Agent.
1:06:24
SPEAKER_02: Uh send me a DM on Facebook, uh, through the Massive Agent Podcast Facebook page, whatever.
1:06:29
SPEAKER_02: Send me an email, Dustin at Massive Agent.
1:06:31
SPEAKER_02: Uh, but just go to Massive Agent Podcast dot com slash EXP.
1:06:35
SPEAKER_02: Massive Agent Podcast.com slash EXP and find out why I have put why I am all in with this brokerage and why, after what I saw in Vegas last week at the leadership event, we're we're opening three to five new countries every year for the next 10 years.
1:06:53
SPEAKER_02: Do you think the c the company's gonna grow?
1:06:55
SPEAKER_02: Do you think your opportunity to uh to build a massive business of other agents in other countries and and get paid like a broker by taking a piece of every deal they close doesn't cost them any more money, but it comes out of the company's dollar.
1:07:09
SPEAKER_02: Look, EXP pays out fifty percent of the revenue that comes to them back to the agents in the Rev Share program, the revenue share program.
1:07:17
SPEAKER_02: 50%.
1:07:18
SPEAKER_02: 50 cents of every dollar that that comes to the company gets paid back to the agents.
1:07:22
SPEAKER_02: You find me another brokerage that does that.
1:07:25
SPEAKER_02: Go ahead.
1:07:26
SPEAKER_02: Go ahead.
1:07:27
SPEAKER_02: Massive agentpodcast.com slash exp, find out why we're growing so fast, find out why we will grow incredibly fast once we open up in Mexico and Australia and the UK and Germany and Belgium and wherever else, everywhere.
1:07:44
SPEAKER_02: Okay, three to five new countries every year.
1:07:46
SPEAKER_02: Would you rather if you're gonna if you're gonna join EXP, would you rather join before the big rush or after?
1:07:55
SPEAKER_02: Okay.
1:07:56
SPEAKER_02: Look, just get the information, see if it makes sense.
1:07:58
SPEAKER_02: Massive agentpodcast.com slash exp and I would love to work with you.
1:08:02
SPEAKER_02: I would love for you to be on our team working together synergistically.
1:08:06
SPEAKER_02: You you would get free lifetime membership to the Massive Agent Podcast.
1:08:10
SPEAKER_02: Jesus.
1:08:10
SPEAKER_02: No, you'd get free lifetime membership to the Massive Agent Society, our lead generation um client, client generation program.
1:08:20
SPEAKER_02: Um that is normally a lifetime membership is three thousand bucks.
1:08:24
SPEAKER_02: So you could get that for free, um, or it's two ninety-nine a month.
1:08:28
SPEAKER_02: But find out more about that over at MassiveAgen Society.com.
1:08:32
SPEAKER_02: Uh we only allow one agent per market.
1:08:34
SPEAKER_02: So some markets are already claimed.
1:08:36
SPEAKER_02: Those that have become lifetime members, their market is theirs forever.
1:08:40
SPEAKER_02: So find out if yours is still available.
1:08:42
SPEAKER_02: You have an option of becoming the only agent in your market to be part of our program to have access to our database of Facebook ads.
1:08:48
SPEAKER_02: But if you are with EXP on our team, then you get it for free.
1:08:53
SPEAKER_02: And I do additional coaching above and beyond that for my EXP peeps.
1:08:57
SPEAKER_02: Ultimately, I want to help you sell more homes.
1:08:59
SPEAKER_02: I want to get you a revenue share check as well that comes in every single month, regardless if you're closing deals or not, because that that is how you provide, that's how you create financial security.
1:09:10
SPEAKER_02: That's how you create wealth over time, residual passive income.
1:09:14
SPEAKER_02: And that's how you protect yourself when the next recession comes, whenever that happens, by having a residual income every month.
1:09:22
SPEAKER_02: So if you have a three-month, four-month, five-month lull or a drought, but you still you're still getting three, four thousand dollars a month from EXP because you had uh the foresight to take advantage of the revenue share program they offer, then do you think that's gonna be good for you and your family?
1:09:40
SPEAKER_02: Is that gonna relieve some stress during the next recession?
1:09:44
SPEAKER_02: Of course it is.
1:09:45
SPEAKER_02: So, guys, I'm there for a reason.
1:09:47
SPEAKER_02: I think I'm a pretty smart business guy.
1:09:49
SPEAKER_02: I think I've I have great vision.
1:09:51
SPEAKER_02: I think I see the writing on the wall in the industry, I think I can see where things are going.
1:09:56
SPEAKER_02: And let me ask you this.
1:09:57
SPEAKER_02: If you knew Netflix existed, would you own a blockbuster?
1:10:02
SPEAKER_02: If you knew Netflix existed, would you would you work on building a business of blockbusters?
1:10:08
SPEAKER_02: Would you would you continue opening new blockbusters if you knew Netflix existed?
1:10:13
SPEAKER_02: That's what we're talking about here.
1:10:15
SPEAKER_02: So guys, I'd love to talk to you about it.
1:10:17
SPEAKER_02: Would love for you to jump on board and work with me.
1:10:21
SPEAKER_02: It's it's I've never seen anything else like it in the industry.
1:10:24
SPEAKER_02: And um a year from now, uh this is the smallest we'll ever be.
1:10:29
SPEAKER_02: So hopefully you're with us, and hopefully you don't wait a full year like I did.
1:10:33
SPEAKER_02: Um anyways.
1:10:34
SPEAKER_02: All right, guys, um go support PostcardMania.
1:10:38
SPEAKER_02: Go to uh postcardmania.com slash realtorkit, get your free marketing kit for agents.
1:10:43
SPEAKER_02: Guys, do that.
1:10:44
SPEAKER_02: It's great stuff, it's going to help you, and it's totally free.
1:10:47
SPEAKER_02: And if you would, if you've received any value from the show, please go to iTunes, also known as Apple Podcasts, leave us a review, leave us a rating, and let us know what you think.
1:10:58
SPEAKER_02: We'd appreciate a five-star review or a rating, and it really helps us to be seen by more people and to grow our audience.
1:11:04
SPEAKER_02: And and if you've received value, share this with one of your colleagues.
1:11:07
SPEAKER_02: Uh, if you've learned something new that you this was helpful for you, it'll be helpful for someone else.
1:11:12
SPEAKER_02: Please consider sharing it on social media, share it within your office, share it with a colleague, share it with some other industry friends, share it with your lender partner or your title partner.
1:11:21
SPEAKER_02: Uh because uh I the a recession's coming at some point, and I want you guys to not just survive it, but absolutely thrive.
1:11:29
SPEAKER_02: And by doing the right things, you will.
1:11:32
SPEAKER_02: You gotta start right now, though.
1:11:34
SPEAKER_02: So, guys, get after it, take action, don't be scared of iBuyers, go make sure you get all the information on EXP Realty so you're not making your mind up on something where you really only have a couple details or you're basing your opinion off someone else's opinion, and you don't know how informed they are, if at all.
1:11:51
SPEAKER_02: So make up your own damn mind like an adult.
1:11:53
SPEAKER_02: Massive agentpodcast.com slash exp.
1:11:56
SPEAKER_02: And I will talk to you guys soon.
1:11:58
SPEAKER_02: Go sell, go sell some homes, go close some loans.
1:12:00
SPEAKER_02: Take care, but I'm gonna do it.