Latest / This Week in DFW Real Estate / Consolidation & The Rise of the Residual Agent

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Consolidation & The Rise of the Residual Agent · This Week in DFW Real Estate

• 0:00
  Speaker 1: And then once you hit a point of escape velocity.
• 0:02
  Speaker 1: I think the theory, the game theory on this is,
• 0:05
  Speaker 1: once you hit a certain kind of escape velocity, whoever
• 0:08
  Speaker 1: wins the race has the ability to move so far
• 0:11
  Speaker 1: out in front that you can never catch that one.
• 0:13
  Speaker 1: Some of the giants in the industry will the vanish
• 0:19
  Speaker 1: is not the right word. They will not be giants
• 0:21
  Speaker 1: in five years. I'm going to tell you that right now.
• 0:23
  Speaker 1: When was the last time anybody was like, I'm super
• 0:25
  Speaker 1: pumped by a copy server or a gateway or an
• 0:28
  Speaker 1: IBM computer.
• 0:32
  Speaker 2: Exactly.
• 0:34
  Speaker 1: Landscapes change, especially when technology gets involved. Every single agent
• 0:39
  Speaker 1: on Earth. Hear me when I say this has the
• 0:43
  Speaker 1: potential to be a conduit for your clients where they
• 0:48
  Speaker 1: get value. You get a piece of the pie for
• 0:51
  Speaker 1: being the intermediary in the fiduciary, and it pays you
• 0:54
  Speaker 1: in a residual every single month. You got to be
• 0:56
  Speaker 1: finding those opportunities right now.
• 1:01
  Speaker 3: Churn it up.
• 1:04
  Speaker 4: This week at Film Your Real Estate a weekly podcast
• 1:11
  Speaker 4: too for agents who actually can pay Party Move Listening
• 1:15
  Speaker 4: Heat Cold the Freaks dmim Way.
• 1:23
  Speaker 3: Lessen.
• 1:25
  Speaker 5: All right, welcome back to episode four five five. That's
• 1:33
  Speaker 5: my bad, Yeah you did lead to Yeah, you led
• 1:35
  Speaker 5: me on that one. It just feels like yesterday we
• 1:38
  Speaker 5: started the first one. Did you have on your bingo? Carden,
• 1:44
  Speaker 5: Brian the Rogers Heely sell out, merger, whatever we want
• 1:49
  Speaker 5: to call it, whatever the best way to spin it.
• 1:53
  Speaker 1: I certainly don't think about these things too much, but
• 1:55
  Speaker 1: I would have thought that would be the case.
• 1:57
  Speaker 5: No, So Rogers Healely has now moved his entire brokerage
• 2:01
  Speaker 5: under the Compass flag. And that would that was not
• 2:06
  Speaker 5: one that I saw coming.
• 2:08
  Speaker 3: I didn't. I just thought he would continue to grow
• 2:10
  Speaker 3: that run that.
• 2:12
  Speaker 5: I know, he's got his his other you know, investment
• 2:16
  Speaker 5: firm seeger or something. I think itself of a I
• 2:20
  Speaker 5: think it's a band or I can't remember. Probably that, Yeah,
• 2:25
  Speaker 5: And I just figured he would just put you know,
• 2:27
  Speaker 5: the right people in place and continue to run that
• 2:29
  Speaker 5: and continue to run the billboards and everything else.
• 2:32
  Speaker 1: I mean, yeah, I would have definitely seen him transitioning
• 2:36
  Speaker 1: at some point. I didn't think he would sell or
• 2:40
  Speaker 1: do a merger. So, but that's just an interesting story
• 2:44
  Speaker 1: because this is starting to happen a lot, correct, right, So.
• 2:47
  Speaker 5: I mean Compass just bought, you know, they just purchased
• 2:51
  Speaker 5: what century twenty one and the Anywhere.
• 2:54
  Speaker 1: Brand Anywhere brands, so lots of consolidation. Rogers Heeely is
• 2:58
  Speaker 1: an interesting story just because we're local here DFW and
• 3:00
  Speaker 1: I didn't think that we see that coming, but.
• 3:02
  Speaker 3: This is a DFW show. Broan No, just in case
• 3:04
  Speaker 3: you forgot.
• 3:05
  Speaker 1: I think the larger, more interesting story is the consolidation
• 3:08
  Speaker 1: across the space. Consolidation and vertical integration. Those are the
• 3:12
  Speaker 1: two big elephants in the room for residential real estate
• 3:16
  Speaker 1: as an industry right now. So when you're talking about
• 3:19
  Speaker 1: mergers and acquisitions between brokerages or vertical integrations for companies
• 3:23
  Speaker 1: that are owning more of the transaction, that's what we
• 3:26
  Speaker 1: want to get into today. That is a super interesting
• 3:29
  Speaker 1: and very relevant topic to every agent. So if you're thinking, oh,
• 3:31
  Speaker 1: I don't care about the Rogers Hilly thing, we're talking
• 3:34
  Speaker 1: more about what is happening industry wide as a trend
• 3:37
  Speaker 1: and it probably will affect you at some point.
• 3:39
  Speaker 5: And at the same time, how does that impact how
• 3:42
  Speaker 5: does that impact independent brokerages. So Rogers Rogers was a
• 3:47
  Speaker 5: you know locally here in Dallas, Fort Worth was a
• 3:49
  Speaker 5: good sized independent broker You've got there's some other you know,
• 3:54
  Speaker 5: I've heard Berkshire Hathaway you know, might be play for Compass.
• 3:59
  Speaker 5: What other large independence Ebbie Holliday Holiday, you know, after
• 4:03
  Speaker 5: she passed away a couple of years she went under
• 4:06
  Speaker 5: the Berkshire Hathaway you know brand, and at one point
• 4:10
  Speaker 5: she was one of the largest independent brokerages in the country,
• 4:14
  Speaker 5: I believe.
• 4:14
  Speaker 1: And that's just brokerage doing mergers and acquisitions with other brokerages.
• 4:19
  Speaker 1: We're not even including the tech side, the mortgage side.
• 4:23
  Speaker 1: The entire soup to nuts transaction is up for grabs
• 4:26
  Speaker 1: when you think about consolidation, right, So this is Zillow
• 4:31
  Speaker 1: follow up boss right, like all the ancillarias too. I
• 4:34
  Speaker 1: think you're going to see a lot more of those
• 4:36
  Speaker 1: types of acquisitions come into play where we're not just
• 4:40
  Speaker 1: looking to gobble up more agents and companies. It is
• 4:44
  Speaker 1: what are the other verticals in the transaction and how
• 4:46
  Speaker 1: do we bring that under one umbrella.
• 4:48
  Speaker 2: That's a very important thing.
• 4:49
  Speaker 1: To keep in mind as you're thinking about who you're
• 4:52
  Speaker 1: aligning with in your personal business.
• 4:55
  Speaker 5: And then the question you should be asking is because
• 4:57
  Speaker 5: most agents will say this and you see this on
• 4:59
  Speaker 5: the online real estate groups and by the way, if
• 5:01
  Speaker 5: you're not in our Facebook group, the DFW Realtor's Facebook group,
• 5:05
  Speaker 5: just go search it. You'll see and the search bar
• 5:07
  Speaker 5: there in Facebook you'll see our our black logo. There
• 5:10
  Speaker 5: lots of engagement, engagements way up, lots of lots of
• 5:13
  Speaker 5: lots of posts.
• 5:14
  Speaker 3: Last week we had our was it last week or
• 5:18
  Speaker 3: two weeks ago? Now? Last week? Yeah, last week.
• 5:21
  Speaker 5: Last week we had our second real or meet up,
• 5:26
  Speaker 5: and we have the next one. It's the last Thursday
• 5:28
  Speaker 5: of every single month there at Mexican Bar Company from
• 5:31
  Speaker 5: three to five pm.
• 5:32
  Speaker 3: A good turnout, great turnout.
• 5:34
  Speaker 5: Yeah, weather was good, so great turnout, you know, great,
• 5:37
  Speaker 5: you know, just great conversations, and we're starting to get
• 5:41
  Speaker 5: that traction and momentum where now people are wanting to
• 5:44
  Speaker 5: sponsor it. So there will be a lot more coming
• 5:47
  Speaker 5: with that, as well as a lot more coming, you know.
• 5:50
  Speaker 5: Brian and I met about getting the short sale training
• 5:53
  Speaker 5: up and going yesterday, so that that will be on
• 5:55
  Speaker 5: the look at as well as as before we get
• 5:58
  Speaker 5: into you know, these these mergers and acquisitions and then
• 6:00
  Speaker 5: what we're seeing trend wise. Go support our sponsors of
• 6:03
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• 6:08
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• 6:11
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• 6:24
  Speaker 3: That's happening.
• 6:25
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• 6:28
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• 6:30
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• 7:02
  Speaker 5: and this team do an amazing job. And then you
• 7:04
  Speaker 5: want to have a badass podcast just like this. You
• 7:07
  Speaker 5: want to beat that out, just se I don't know
• 7:08
  Speaker 5: if we need for a lot of curse anymore, like
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• 7:16
  Speaker 5: Jesse take care of you. But Brian, when you go
• 7:19
  Speaker 5: back and as an agent you've see these, just go
• 7:22
  Speaker 5: back to selling real estate. Who cares what brands you're under?
• 7:26
  Speaker 5: Who cares what's happening. The problem is that, and we've
• 7:29
  Speaker 5: been saying this for so so long. We've said this
• 7:32
  Speaker 5: on our other podcast that we used to run, the
• 7:34
  Speaker 5: only real estate podcast worth listening to, And it hasn't
• 7:37
  Speaker 5: changed on this show, which is you still have to
• 7:39
  Speaker 5: understand where everything's moving in this industry.
• 7:43
  Speaker 1: Oh yeah, yeah, I won't go down a rabbit hole yet.
• 7:46
  Speaker 1: This early in the show we say so dumb things
• 7:49
  Speaker 1: like that. Sometimes, so whether it's real estate or politics
• 7:53
  Speaker 1: or whatever it is, we say silly things like who cares,
• 7:56
  Speaker 1: Just go sell a house. I'm of the firm belief
• 7:58
  Speaker 1: that human beings have the to hold too simultaneous and
• 8:01
  Speaker 1: non mutually exclusive groups or non mutually exclusive truths at
• 8:05
  Speaker 1: the same time so you can care about things and
• 8:07
  Speaker 1: then still go sell a house. It always cracks me
• 8:11
  Speaker 1: up when I hear people say stuff like that. Don't
• 8:13
  Speaker 1: let this distract you from your business, I think is
• 8:15
  Speaker 1: the point. These are important things to understand about what's
• 8:18
  Speaker 1: happening in the industry, though, because I think when you
• 8:20
  Speaker 1: start to unpack this from first principles, you have to
• 8:24
  Speaker 1: understand or ask the question, why are we seeing so
• 8:27
  Speaker 1: much consolidation in the real estate space right now? From
• 8:31
  Speaker 1: a mergers and acquisition standpoint. On the brokerage side, we
• 8:33
  Speaker 1: can start there. Compass seems to be one of the
• 8:35
  Speaker 1: big players in the game right now. Berkshire Hathaway has
• 8:38
  Speaker 1: been involved a lot, There's a lot of and there's many, many,
• 8:43
  Speaker 1: many out there.
• 8:43
  Speaker 2: Those are just kind of the two of the more
• 8:46
  Speaker 2: notable names.
• 8:48
  Speaker 1: Why is it that in an industry where we have
• 8:52
  Speaker 1: very few employees, we're ten ninety nine contractors agent count
• 8:57
  Speaker 1: and absorbing agents into a new structure through a merger
• 9:01
  Speaker 1: and acquisition?
• 9:02
  Speaker 2: Why is that so valuable?
• 9:04
  Speaker 1: And why is that so valuable in a market where
• 9:07
  Speaker 1: actually the available transaction sides has actually been reduced by
• 9:12
  Speaker 1: almost you know, it's been thirty or forty percent from
• 9:14
  Speaker 1: the peak in twenty twenty two till last year twenty
• 9:17
  Speaker 1: twenty five, it was four point zero three million transaction sides.
• 9:21
  Speaker 2: If anything, agents.
• 9:23
  Speaker 1: Are producing a little bit, a are are producing less
• 9:27
  Speaker 1: per agent right now. Obviously the market is really starting
• 9:30
  Speaker 1: to rebound, and I think we're seeing that all over
• 9:31
  Speaker 1: the place. Why in this particular environment are we starting
• 9:35
  Speaker 1: to see so much conglomeration. Why is there a premium
• 9:40
  Speaker 1: put on agent count? Why are so many mid size
• 9:43
  Speaker 1: let's just say independent brokerage is agreeing to be bought
• 9:49
  Speaker 1: out or do a merger or some kind of creative
• 9:52
  Speaker 1: acquisition with a larger company. Compass has been gobbling people
• 9:57
  Speaker 1: up lately. What do you think the play is? Obviously
• 10:00
  Speaker 1: I'm leading you guys here, but I think it's important
• 10:03
  Speaker 1: to understand at the individual agent level why some of
• 10:05
  Speaker 1: these moods moves are being moves are being made. So
• 10:10
  Speaker 1: what do we think that Compass's strategy is with trying
• 10:13
  Speaker 1: to acquire as many licenses as possible?
• 10:16
  Speaker 5: Well, I mean number one is the more license you have,
• 10:19
  Speaker 5: the more market share you're going to get. And their
• 10:22
  Speaker 5: number one goal and the number one way they're going
• 10:25
  Speaker 5: to acquire or grow market shares through acquisitions, and then
• 10:30
  Speaker 5: ultimately from that they can then get into it's going
• 10:33
  Speaker 5: to increase.
• 10:34
  Speaker 3: Their ancillary business models.
• 10:36
  Speaker 5: Exactly right, Because I will say, look, you know, you
• 10:39
  Speaker 5: know I'm with the Xby, I was with Keller Williams. Brian,
• 10:43
  Speaker 5: you were with Keller Williams. You're you're with the United
• 10:45
  Speaker 5: real Estate and you know the Compass brand. I didn't
• 10:49
  Speaker 5: really understand it at the time.
• 10:51
  Speaker 2: Right.
• 10:51
  Speaker 5: They do a great job from a luxury presence. But
• 10:55
  Speaker 5: I will say that when you look at and hear
• 10:58
  Speaker 5: their agents talk about them, there's not a lot of
• 11:00
  Speaker 5: negative and and but I don't know the rest of
• 11:04
  Speaker 5: it at at a high level, like internally are they
• 11:07
  Speaker 5: trying to you know, you don't hear about their their
• 11:11
  Speaker 5: truly their answer laid like you know, property management, title,
• 11:15
  Speaker 5: mortgage insurance, and so ultimately that is that is an
• 11:20
  Speaker 5: option in a in a play for them to increase
• 11:23
  Speaker 5: that that revenue source.
• 11:24
  Speaker 1: So you just hit the nail on the head, and
• 11:26
  Speaker 1: I think this is we're probably gonna take this show
• 11:28
  Speaker 1: at some point anyway. We have like a rough outline
• 11:31
  Speaker 1: of the things we want to talk about, and then
• 11:32
  Speaker 1: we just start taking right left, turns pretty much.
• 11:34
  Speaker 3: Well, I'm gonna throw a curveball at here.
• 11:35
  Speaker 5: So, oh, Jesse, I'm gonna I'm gonna I'm gonna go
• 11:38
  Speaker 5: a little bit off the rails here after we get
• 11:40
  Speaker 5: through this part.
• 11:40
  Speaker 3: Okay, I've got something to bring up.
• 11:42
  Speaker 1: Okay, Nick, we're in trouble. Nick's about to give us
• 11:46
  Speaker 1: both a stern lecture. We didn't see coming today. No,
• 11:49
  Speaker 1: so you just hit the nail on the head. For
• 11:52
  Speaker 1: the longest time, the status quo really in the real
• 11:58
  Speaker 1: estate space was the every piece of the transaction was
• 12:03
  Speaker 1: a standalone industry, all the way down into the tech stack, right.
• 12:08
  Speaker 1: So there was the agent piece, there was the client
• 12:10
  Speaker 1: service piece, there's the tech piece, there's the title piece,
• 12:13
  Speaker 1: insurance piece, mortgage piece, like we all know that, you know,
• 12:15
  Speaker 1: we all know the players, the whole warranty piece, all
• 12:17
  Speaker 1: that type of stuff, right. I don't think it was
• 12:20
  Speaker 1: not on anybody's radar that there was going to be
• 12:22
  Speaker 1: conglomeration of those things at some point over time.
• 12:25
  Speaker 2: And that's been coming for a long time.
• 12:27
  Speaker 1: But there's been all sorts of vertical integrations and partnerships
• 12:30
  Speaker 1: and things like that. What I think is really been
• 12:33
  Speaker 1: interesting to see and what I think will continue to
• 12:36
  Speaker 1: be interesting to see is how artificial intelligence, streamline technology
• 12:43
  Speaker 1: super immersive. I don't know how some of the words
• 12:48
  Speaker 1: I'm trying to use, I don't even think exists yet, right, Jesse,
• 12:50
  Speaker 1: we were just talking about this before, about how CRMs
• 12:52
  Speaker 1: are going to change completely over the next few years.
• 12:55
  Speaker 2: Right.
• 12:56
  Speaker 1: I guess the experience of running of real estate business,
• 12:59
  Speaker 1: it will. It will is fundamentally continuing to evolve, right.
• 13:02
  Speaker 1: And it may look a lot, I should say it
• 13:04
  Speaker 1: may look it will look a lot different in a
• 13:06
  Speaker 1: few years. Just exactly how it looks. I think it's
• 13:08
  Speaker 1: a little bit unknown right now. But what is true
• 13:10
  Speaker 1: is that the more licenses you have, the more leverage
• 13:13
  Speaker 1: you have. And so whether you're using that leverage to
• 13:15
  Speaker 1: go and then build out your dev team and then
• 13:19
  Speaker 1: go to try to build something in house, whether you're
• 13:21
  Speaker 1: just going to go and try to create partnerships or
• 13:25
  Speaker 1: mergers and acquisitions with some of the other big tech
• 13:27
  Speaker 1: operators in the space to go and create something bespoke
• 13:30
  Speaker 1: or unique for your people. The more agents that you
• 13:34
  Speaker 1: have under your umbrella right now, the more leverage you
• 13:36
  Speaker 1: have to start to not just make partnerships in those
• 13:39
  Speaker 1: vertical spaces, but start to own those vertical spaces, and
• 13:42
  Speaker 1: now that technology is moving faster than ever and the
• 13:45
  Speaker 1: cost of development, which is really a big part of this,
• 13:48
  Speaker 1: is coming down.
• 13:50
  Speaker 2: I think you're going to start to see an arms
• 13:52
  Speaker 2: race in the.
• 13:53
  Speaker 1: Tech side of things, and that AI enhanced agent is
• 13:57
  Speaker 1: the agent of the future. And I think you're starting
• 13:59
  Speaker 1: to see a lot of mergers and acquisitions. And what's
• 14:02
  Speaker 1: happening behind the curtain is the more licenses we have,
• 14:06
  Speaker 1: the more powerful our tech becomes, and the more use
• 14:09
  Speaker 1: cases we have, the bigger our feedbook, the bigger our
• 14:11
  Speaker 1: feedback loop. And then once you hit a point of
• 14:14
  Speaker 1: escape velocity, I think the theory, the game theory on
• 14:17
  Speaker 1: this is once you hit a certain kind of escape velocity,
• 14:21
  Speaker 1: whoever wins the race has the ability to move so
• 14:23
  Speaker 1: far out in front that you can never catch that.
• 14:25
  Speaker 3: Well, here's here's what happens.
• 14:26
  Speaker 2: Think of it.
• 14:28
  Speaker 5: Think of it this way, And I'm not sure how
• 14:32
  Speaker 5: how you would want to interpret this. Right like now,
• 14:35
  Speaker 5: with this acquisition Compass, Compass is technically with all their holdings,
• 14:40
  Speaker 5: they have the largest number of real estate licenses under
• 14:44
  Speaker 5: their own breadth three hundred thousand somethingah, three hundred plus,
• 14:48
  Speaker 5: three hundred thousand plus. So if we think of it,
• 14:50
  Speaker 5: it's you know, we think in terms, you know, residential
• 14:54
  Speaker 5: real stagents just think of this as a place to
• 14:56
  Speaker 5: go hang their license versus the way that they're looking
• 14:59
  Speaker 5: at it is not a brokerage.
• 15:00
  Speaker 3: It's an ecosystem. And as I'm kind.
• 15:03
  Speaker 5: Of breaking it down, their their core business is the
• 15:05
  Speaker 5: residential brokerage model, and then you get into all right,
• 15:09
  Speaker 5: they're kind of subcategories. Is the luxury real estate brokerage,
• 15:13
  Speaker 5: you know, kind of system in ecosystem, there's a hot
• 15:15
  Speaker 5: you know, high end luxury brands. So they've got you know,
• 15:18
  Speaker 5: Christie's International, the cork and Group, Southby's International leads to
• 15:23
  Speaker 5: higher commissions, more global clientele, more international referral networks. They've
• 15:29
  Speaker 5: got that franchise brokerage network, so they got Century twenty one,
• 15:32
  Speaker 5: Better Homes and Garden e Er a real estate. But
• 15:36
  Speaker 5: then you get into the whole ecosystem. We get into title.
• 15:40
  Speaker 5: We got the closing services. So they've been they've been
• 15:43
  Speaker 5: aggressively buying up title companies right like First Alliance, KBS, Title, Consumer's, Title,
• 15:48
  Speaker 5: common Ground, Abstract and you know when you start holding this.
• 15:52
  Speaker 5: And this is where you know, Keller Williams, you know,
• 15:55
  Speaker 5: has been attempting to do this. Everybody's trying to get
• 15:58
  Speaker 5: their hands on this. This is where you see Rocket
• 16:00
  Speaker 5: Mortgage that bought Redfin and and now Rocket Mortgage and
• 16:05
  Speaker 5: red Fin and then they you know, then they go
• 16:07
  Speaker 5: Rocket Mortgage goes and acquires mister Cooper that that is
• 16:12
  Speaker 5: the loan servicing side, you know, that's the loan portfolio
• 16:15
  Speaker 5: portfolio servicing side. So now they've got all that data.
• 16:18
  Speaker 5: Everyone is really trying to go and build the biggest
• 16:22
  Speaker 5: fence around data and and you know, consumer information that
• 16:26
  Speaker 5: they can.
• 16:27
  Speaker 2: Well, now's the time to do it.
• 16:28
  Speaker 1: Because we've talked about I don't We've talked about this
• 16:32
  Speaker 1: for a long time. We've skirtled around the edge of
• 16:34
  Speaker 1: this for a long time, right when when Zillo bought
• 16:36
  Speaker 1: follow Up Boss and even going back, like Zillo has
• 16:39
  Speaker 1: always kind of been the boogeyman in the room, like
• 16:41
  Speaker 1: don't give it your data. Right, We've all on an
• 16:45
  Speaker 1: intellectual level understood what big data is capable of and
• 16:49
  Speaker 1: that it's a bit of an arms race to acquire
• 16:51
  Speaker 1: as much data as possible. It always has been the
• 16:54
  Speaker 1: reality is though, up until a couple of years ago
• 16:57
  Speaker 1: and now it's accelerating very fast, is you still had
• 17:00
  Speaker 1: to really have a very deep understanding of what you
• 17:05
  Speaker 1: were going to do with that data and how you
• 17:07
  Speaker 1: were going to build it. Right, You still had to
• 17:09
  Speaker 1: have some of the smartest people in the room to
• 17:12
  Speaker 1: take massive amounts of data and then turn it into
• 17:15
  Speaker 1: a business. Right, you could give my two year old
• 17:18
  Speaker 1: daughter all the data in the world, She's not going
• 17:19
  Speaker 1: to do anything with it.
• 17:20
  Speaker 2: Right.
• 17:20
  Speaker 1: What's really really important to understand going forward is that
• 17:25
  Speaker 1: development is faster, cheaper, easier, and it is way way
• 17:30
  Speaker 1: way more accessible to realize whatever whatever vision it is.
• 17:35
  Speaker 2: So now it really is an arms race for more data.
• 17:37
  Speaker 5: I didn't know you had a two year old daughter.
• 17:39
  Speaker 5: You're really future You really future pace that one.
• 17:42
  Speaker 2: That's well, that's AI. That's how quickly it's movings.
• 17:45
  Speaker 5: That's so it was like two episodes ago.
• 17:49
  Speaker 3: She was just a tiny baby in your arm.
• 17:51
  Speaker 2: This is the future. You grow up so fast.
• 17:54
  Speaker 5: Think of the missing think of the missing pieces. Brian,
• 17:57
  Speaker 5: you've been with Keller Williams. You were in the leadership side,
• 18:00
  Speaker 5: you were you were running their their Ignite program, their
• 18:03
  Speaker 5: their new agent launch, What what do agents do really
• 18:06
  Speaker 5: really bad? And go ahead and answer that, and then
• 18:10
  Speaker 5: I'll see if that's a.
• 18:11
  Speaker 2: I was gonna say. Being a professional coach for a
• 18:12
  Speaker 2: long time, you always jump at that question.
• 18:14
  Speaker 1: So I am the executive director of productivity for United
• 18:16
  Speaker 1: Now and I run all their their coaching programs, and
• 18:20
  Speaker 1: so what do what do agents do really bad? In
• 18:27
  Speaker 1: our coaching as a professional coach as well in our
• 18:33
  Speaker 1: in our coaching journeys, we are relentlessly attempting to career
• 18:39
  Speaker 1: remove all of the friction that keeps agents from doing
• 18:42
  Speaker 1: the things that they probably already know they should be doing. Anyway, Generally,
• 18:47
  Speaker 1: the delta between where an agent is and where an
• 18:50
  Speaker 1: agent wants to be is forward movement and execution. Every
• 18:53
  Speaker 1: day picking up the phone, having conversations, getting their weapons
• 18:58
  Speaker 1: fire right up, talking to enough people about real estate
• 19:01
  Speaker 1: that success becomes inevitable.
• 19:02
  Speaker 2: So if you want to ask what agents do really bad?
• 19:05
  Speaker 1: I would reword it to say what agents do not
• 19:06
  Speaker 1: do well enough normally is have enough conversations with other
• 19:10
  Speaker 1: people about real estate.
• 19:11
  Speaker 5: That and they shortcut everything else, especially on their paperwork,
• 19:14
  Speaker 5: their documentation, and so another thing, and you know, to
• 19:18
  Speaker 5: tie this all into a little package in a bow.
• 19:21
  Speaker 5: Is that you know, Compass owns the you know, purchase
• 19:24
  Speaker 5: Transaction Management software, which is a listing management tool, SEERM systems,
• 19:28
  Speaker 5: marketing automation, and deal management, which is the big thing
• 19:31
  Speaker 5: because if you talk about deal management, a lot of
• 19:34
  Speaker 5: times agents will upload contracts and it doesn't have all
• 19:37
  Speaker 5: the client's information.
• 19:39
  Speaker 3: Yeah.
• 19:39
  Speaker 5: Right, So the missing piece that brokerages had, and this
• 19:42
  Speaker 5: was something that we noticed back in our Keller Williams days,
• 19:45
  Speaker 5: was that, you know, the brokerage had all this information,
• 19:48
  Speaker 5: but it was kind of piecemeal together because the agents
• 19:51
  Speaker 5: you know, that were uploading the transaction didn't always put
• 19:54
  Speaker 5: the client's phone numbers in there, their email addresses, and
• 19:57
  Speaker 5: so you had thousands and thousands of transactions in there,
• 20:01
  Speaker 5: but it was it was almost it was so broken
• 20:04
  Speaker 5: that it became useless. And so you know, Compasses, you know,
• 20:09
  Speaker 5: you know, acquiring all this, which other brokers are doing
• 20:11
  Speaker 5: the same to try to solve that missing piece. To say,
• 20:14
  Speaker 5: all right, agents, you have to then you're using this
• 20:16
  Speaker 5: in order to get paid. It needs this system needs
• 20:18
  Speaker 5: to be you know utilized one hundred percent.
• 20:21
  Speaker 1: Well you just used an important, a really important phrase
• 20:23
  Speaker 1: there that they're they're they're trying to solve something for
• 20:26
  Speaker 1: the agents. One of the viewpoints that agents have had
• 20:30
  Speaker 1: for a very long time, it.
• 20:31
  Speaker 2: Would seem to me, is that.
• 20:36
  Speaker 1: The titans of this industry that are trying to acquire
• 20:39
  Speaker 1: a massive amount of data, that what they're trying to
• 20:42
  Speaker 1: do with it is then go take that data and
• 20:45
  Speaker 1: remove the agent from the transaction. How many times have
• 20:49
  Speaker 1: we talked about this with Zillow or whomever. Right, they're
• 20:52
  Speaker 1: trying to stand in the do this was part of
• 20:54
  Speaker 1: Gary's Vision's piece like four years ago. I think right
• 20:57
  Speaker 1: that they're trying to remove the agent from the transact.
• 21:01
  Speaker 1: I believe a lot of companies have been down that
• 21:04
  Speaker 1: path at this point, and it has not happened up
• 21:06
  Speaker 1: until now. It may happen in the future to some extent,
• 21:10
  Speaker 1: and I've talked about that openly on past shows. As
• 21:14
  Speaker 1: of now, though the agent is still central to the transaction.
• 21:17
  Speaker 1: I think that's a very important point in this because
• 21:19
  Speaker 1: that is why so many mergers and acquisitions are happening,
• 21:22
  Speaker 1: because these companies companies for example, is trying to acquire
• 21:26
  Speaker 1: as many as many parts of the process as possible
• 21:28
  Speaker 1: and as many agents as possible so that they can
• 21:31
  Speaker 1: create a better experience, because that is actually where the
• 21:35
  Speaker 1: future is. So what I'm doing when I'm acquiring a
• 21:39
  Speaker 1: massive amount of agents, a massive amount of data, all
• 21:42
  Speaker 1: the verticals, is I can now go and I'm building
• 21:45
  Speaker 1: a knowledge base. And the desired outcome of that knowledge
• 21:48
  Speaker 1: base is how do we empower each of these agents
• 21:51
  Speaker 1: with the best possible tools, not separate them from their commissions,
• 21:56
  Speaker 1: and not separate them from the transaction.
• 21:58
  Speaker 5: So they acquired to Technica, which is an artificial intelligence
• 22:03
  Speaker 5: startup that enhances predictive analytics and machine learning capabilities that
• 22:08
  Speaker 5: will involve price analytics, lead prediction models, marketing automation, buyer
• 22:12
  Speaker 5: seller matching tools.
• 22:13
  Speaker 3: And look, this sounds amazing.
• 22:15
  Speaker 5: The only problem that I see and that I'm looking
• 22:19
  Speaker 5: at and where I want to throw the curve ball
• 22:21
  Speaker 5: here in a minute, instead of going into like the trends,
• 22:24
  Speaker 5: we can go into that next week, Jesse, if you're
• 22:25
  Speaker 5: cool with that, yeah. Is that agents get into this
• 22:30
  Speaker 5: to have control of their income. They get into this
• 22:37
  Speaker 5: to start building financial freedom and to be their own boss,
• 22:41
  Speaker 5: which more often not they're not the best at that.
• 22:46
  Speaker 5: And they get into this just with this idea and
• 22:50
  Speaker 5: understanding of have this hope of this business that they
• 22:53
  Speaker 5: want to this great business that they want to build.
• 22:57
  Speaker 5: And the more that let's use com as the example,
• 23:02
  Speaker 5: the more that that compass eats up and acquires all
• 23:06
  Speaker 5: this data, all this all these resources, it's going to limit.
• 23:12
  Speaker 5: Does it limit the amount of future opportunities that we
• 23:14
  Speaker 5: as agents have and with choices and paths to start
• 23:18
  Speaker 5: running the business, this business the way that we want
• 23:20
  Speaker 5: to run it.
• 23:21
  Speaker 1: It's a really great question and one that I've been
• 23:23
  Speaker 1: thinking a lot about the way that I was going
• 23:25
  Speaker 1: to pose that same question would have been, is there
• 23:28
  Speaker 1: eventual like event horizon where everybody's business just looks the same, right,
• 23:34
  Speaker 1: Like everybody's just using the same tech. It's all polished
• 23:37
  Speaker 1: over and it really doesn't matter. We're now commoditized, right
• 23:40
  Speaker 1: for the McDonald's. Yeah, So same question, right, What is
• 23:43
  Speaker 1: the availability of differentiation of an agent's business in the future?
• 23:48
  Speaker 1: How easy it is for me to create a unique experience? Well,
• 23:52
  Speaker 1: I think that these things and I'm just spitballing. So
• 23:55
  Speaker 1: if I changed my mind next week, we'll talk about
• 23:57
  Speaker 1: it then. So off the top of my head, I
• 23:59
  Speaker 1: actually think that the more commoditization comes into the industry,
• 24:02
  Speaker 1: the more opportunity there is for differentiation and distinction. Meaning
• 24:10
  Speaker 1: if I am an agent and all of my other
• 24:15
  Speaker 1: agents fellow agents's businesses eventually look pretty much the same,
• 24:19
  Speaker 1: then it's actually quite easy for me to pull a
• 24:21
  Speaker 1: few levers and maybe change my offering, change my unique
• 24:24
  Speaker 1: value proposition, and make my business look a little bit
• 24:26
  Speaker 1: more unique and make it more attractive in that manner. So,
• 24:31
  Speaker 1: if anything, I think it might be even more of
• 24:34
  Speaker 1: an opportunity for agents to create unique value propositions. They
• 24:38
  Speaker 1: probably won't look the same is what they have looked
• 24:42
  Speaker 1: like in years past. I also think, and this is
• 24:47
  Speaker 1: an important distinction I think to make as well, because
• 24:50
  Speaker 1: I think, you know, I was talking to somebody that
• 24:53
  Speaker 1: listens to our show a lot last week and they
• 24:55
  Speaker 1: were talking about our short sale episode and they're like,
• 24:57
  Speaker 1: so i'd a little doom and gloom, And I was like, well, look,
• 25:00
  Speaker 1: all we did was review statistics and talk about things
• 25:02
  Speaker 1: that you should learn. We get no points for pulling
• 25:06
  Speaker 1: our head over the covers on what's or pulling covers
• 25:08
  Speaker 1: over our head on things that are happening. So I've
• 25:11
  Speaker 1: said this before and I'll stand by this. I do
• 25:14
  Speaker 1: think that the agent of the future is going to
• 25:18
  Speaker 1: have so much more leverage that they can handle an
• 25:23
  Speaker 1: exponential amount of transactions more than they can right now.
• 25:29
  Speaker 1: So I think that the average agent in the future
• 25:31
  Speaker 1: will be able to sell hundreds of homes a year. Now,
• 25:34
  Speaker 1: with that, understand that anytime you can do something at
• 25:38
  Speaker 1: that velocity, then there's going to be less available revenue
• 25:45
  Speaker 1: wise on each of those transactions. So you see what
• 25:49
  Speaker 1: I'm hinting at that. I think that commissions could continue
• 25:51
  Speaker 1: to be compressed in the future, but agents will be
• 25:54
  Speaker 1: capable of producing exponentially more sales than they are right now.
• 26:01
  Speaker 5: Let me ask you, ques, So if we go to
• 26:03
  Speaker 5: commission compression, and let's say that one of the brokerages
• 26:09
  Speaker 5: compass in this general in this scenario that has three
• 26:12
  Speaker 5: hundred and whatever thousand agents, if they control this this system,
• 26:19
  Speaker 5: do they then go into a salary to hybrid model,
• 26:23
  Speaker 5: and then it limits again, it limits the opportunity that
• 26:26
  Speaker 5: you have as an agent.
• 26:27
  Speaker 1: No, no, no, I don't think. Well, okay, so maybe,
• 26:30
  Speaker 1: and I think that's one route I'm not going to
• 26:34
  Speaker 1: try to predict the future. That's a very valid that's
• 26:37
  Speaker 1: a very valid outcome. Maybe it happens, maybe it doesn't.
• 26:40
  Speaker 1: I think the I think the I think you still
• 26:43
  Speaker 1: want your agents out there on the front line every
• 26:45
  Speaker 1: day trying to grow the business. I think that I
• 26:49
  Speaker 1: think that alignment around a universal goal is better than
• 26:52
  Speaker 1: just having a whole bunch of people that are there
• 26:54
  Speaker 1: just for a paycheck. And that's normally what you get
• 26:56
  Speaker 1: when you go full salary. So you still want your
• 26:59
  Speaker 1: agents trying to grow the business. Yeah, three hundred thousand
• 27:01
  Speaker 1: people out there trying to go grow your business every day.
• 27:04
  Speaker 1: That is invaluable as far as your marketing efforts. Right,
• 27:08
  Speaker 1: it costs a lot more money to drive revenue if
• 27:12
  Speaker 1: you don't have three hundred thousand people out there trying
• 27:14
  Speaker 1: to drive revenue on their own and on their own dime.
• 27:16
  Speaker 2: Every single day. So I don't know that that's the path.
• 27:18
  Speaker 1: I think that if commission compression continues to be what
• 27:23
  Speaker 1: happens as we advance, you're also going to see the
• 27:26
  Speaker 1: possibility of that being made up by the ancillarious right,
• 27:29
  Speaker 1: like agents are going to have a vested interest in
• 27:34
  Speaker 1: owning the entire trans owning a piece of the.
• 27:37
  Speaker 2: Entire transaction processing themselves.
• 27:39
  Speaker 1: That's where you start to see these revenue share opportunities
• 27:41
  Speaker 1: from the verticals come into play. In the future, I
• 27:44
  Speaker 1: think that agents will get more of a piece of
• 27:46
  Speaker 1: every part of the transaction as well, and that will
• 27:48
  Speaker 1: probably offset some of that commission compression.
• 27:50
  Speaker 3: That'd be interesting.
• 27:51
  Speaker 2: Yeah, we're seeing it in the mortgage space already. We're
• 27:53
  Speaker 2: seeing in a lot of spaces right.
• 27:55
  Speaker 3: Yeah.
• 27:55
  Speaker 5: No, again, this is wasn't designed to be a shot
• 27:59
  Speaker 5: at company. Look, great job of what and I want
• 28:02
  Speaker 5: to hopefully be.
• 28:02
  Speaker 1: Other people under say that we look at facts and
• 28:04
  Speaker 1: data and then give our opinions on us.
• 28:06
  Speaker 5: Look, I think that realistically what ends up happening is
• 28:09
  Speaker 5: that that what this creates is right now, this creates
• 28:12
  Speaker 5: hey as what I do think it does and does
• 28:15
  Speaker 5: happen though, is we start to see the independent brokerage
• 28:19
  Speaker 5: that that option becomes a very very small percentage of
• 28:23
  Speaker 5: seeing those do really well in the future.
• 28:25
  Speaker 1: I think you can just look at every other industry
• 28:29
  Speaker 1: out there that that these types of things, you know,
• 28:32
  Speaker 1: technological advancement has radically changed, and you'll say the same
• 28:35
  Speaker 1: thing the mom and pox are very few independent stockbroker companies,
• 28:40
  Speaker 1: you know what I mean? There, because that's that's that
• 28:42
  Speaker 1: is an industry that can be advanced greatly by technology.
• 28:47
  Speaker 1: Whereas local restaurants, it doesn't matter how much technology you
• 28:50
  Speaker 1: bring to the space. People love eating at local restaurants
• 28:53
  Speaker 1: because there's a community feel right, It's nothing that technology
• 28:56
  Speaker 1: can't take away. Me trading stocks, I don't have the
• 28:59
  Speaker 1: same emotional att as to my stock portfolio as I
• 29:01
  Speaker 1: do to my favorite Mexican restaurant down the street.
• 29:03
  Speaker 5: Oh and this right here should lead to better tech
• 29:06
  Speaker 5: that will lead to smoother transactions for consumers hopefully. Ye
• 29:10
  Speaker 5: maybe better marketing research, better advice, and more market data,
• 29:14
  Speaker 5: you know, more data driven pricing insights and strategies. So
• 29:17
  Speaker 5: you know what, I do believe that ends up happening.
• 29:20
  Speaker 5: The good out of this is that, you know, the
• 29:23
  Speaker 5: other the other big you know, uh brokerages out there,
• 29:27
  Speaker 5: they need to step up.
• 29:29
  Speaker 2: Yeah.
• 29:30
  Speaker 1: This is if there's one big takeaway from from this conversation,
• 29:35
  Speaker 1: because we're just having like a fun exploring the landscape
• 29:38
  Speaker 1: right now. I really predict just like in the banking industry,
• 29:44
  Speaker 1: just like in other technology industries. Computer processing is a
• 29:49
  Speaker 1: huge one that comes to mind. Some of the giants
• 29:53
  Speaker 1: in the industry will the vanish is not the right word.
• 29:57
  Speaker 1: They will not be giants in five years. To tell
• 30:00
  Speaker 1: you that right now, when was the last time anybody
• 30:02
  Speaker 1: was like, I'm super pumped by a COMPU server or
• 30:05
  Speaker 1: a Gateway or an IBM computer.
• 30:10
  Speaker 2: Exactly.
• 30:12
  Speaker 1: Landscapes change, especially when technology gets involved. And I have
• 30:16
  Speaker 1: no idea who. So I'm not even trying to like
• 30:18
  Speaker 1: say anything subliminal. I have zero idea who. I'm just
• 30:22
  Speaker 1: telling you the horse race that we've been in for
• 30:24
  Speaker 1: a long time, there's gonna be there's gonna be horses
• 30:28
  Speaker 1: that start to pull ahead and horses that start to
• 30:30
  Speaker 1: lose a little bit of steam.
• 30:32
  Speaker 3: Now here's the curveball, right.
• 30:35
  Speaker 5: We were gonna start talking about some some trends and
• 30:38
  Speaker 5: insights and and you know, usually when that happens, people
• 30:42
  Speaker 5: kind of glaze over. Not everyone just loves to geek
• 30:45
  Speaker 5: out on non numbers the way that we do. But
• 30:50
  Speaker 5: hearing all this kind of made me start thinking, what happens?
• 30:54
  Speaker 5: Brian and we asked this. Brian and I had the
• 30:56
  Speaker 5: privilege and opportunity to present and talked to one hundred
• 31:00
  Speaker 5: and twenty agents last week that Britney Stewart and Nicole
• 31:04
  Speaker 5: Russo had had put on a it was a production
• 31:07
  Speaker 5: production panel, and we were over kind of wealth building
• 31:09
  Speaker 5: and taking more business. And the question that I asked
• 31:16
  Speaker 5: it wasn't on purpose, but it was the way that
• 31:18
  Speaker 5: the kind of the room was going with it was,
• 31:21
  Speaker 5: you know, I asked, I said, Brian, what would happen
• 31:24
  Speaker 5: if your real estate income stopped?
• 31:27
  Speaker 3: Would you be in trouble in the next thirty days?
• 31:29
  Speaker 3: And then you.
• 31:30
  Speaker 5: Know, we looked across the room and we saw some
• 31:33
  Speaker 5: a few hand raisers like little they was slow as
• 31:36
  Speaker 5: tendt you know, but the rest of them you could
• 31:38
  Speaker 5: see them kind of wording, you know, they would whisper
• 31:41
  Speaker 5: like slight nods, slight nods. And I even posted to
• 31:45
  Speaker 5: say on my Facebook page and hearing this with what
• 31:51
  Speaker 5: Compass is doing, with what the industry is doing, and look,
• 31:55
  Speaker 5: I want to say that this is for the betterment
• 31:57
  Speaker 5: of the agent. I want to believe that, but we
• 32:01
  Speaker 5: also know that brokerages have to protect the brokerage company
• 32:05
  Speaker 5: as itself. They also have shareholders, and so right now
• 32:10
  Speaker 5: they care about the agents, but in the future it
• 32:12
  Speaker 5: may be, Hey, I don't care how many agents there are,
• 32:14
  Speaker 5: because the technology will be able to handle the majority
• 32:17
  Speaker 5: of the transactions, so we're going to have less agents
• 32:21
  Speaker 5: doing more deals. But you know, they've acquired so much,
• 32:25
  Speaker 5: they've got the entire ecosystem. They're the operating system that
• 32:28
  Speaker 5: handles everything, so they're still getting the revenue share piece,
• 32:33
  Speaker 5: while the agents who did all the work in the
• 32:35
  Speaker 5: beginning are now left scrambling. Yeah, why why is it
• 32:41
  Speaker 5: as agents and this is you know, as a whole,
• 32:44
  Speaker 5: Why is it that we don't we focus so hard
• 32:48
  Speaker 5: on the next lead. We focus so hard on finding
• 32:52
  Speaker 5: one motivated seller, one motivated buyer, talking to our friends
• 32:55
  Speaker 5: and family and asking for referral business to get a
• 32:59
  Speaker 5: one off sale. Well that we don't fight for building
• 33:05
  Speaker 5: residual income in our life, not passive income, right, Residual
• 33:09
  Speaker 5: income meaning you do the work, Brian, and as long
• 33:13
  Speaker 5: as that person stays utilizing something, you're getting paid over
• 33:16
  Speaker 5: and over and over and over again. Which, by the way,
• 33:19
  Speaker 5: that's what these brokerages are looking at acquiring, so that
• 33:22
  Speaker 5: they have a truly recurring revenue model, predictable income system
• 33:27
  Speaker 5: coming in. Exactly why is it that we fight that
• 33:31
  Speaker 5: you know, I don't even know if fight is the
• 33:33
  Speaker 5: right word. I think it's two things, maybe resist it resist.
• 33:36
  Speaker 5: I think maybe there's more than two things. But the
• 33:40
  Speaker 5: two or three things that come to my mind right
• 33:42
  Speaker 5: away is again, being in coaching for so long and
• 33:46
  Speaker 5: running a sales team, and you've been in coaching and
• 33:49
  Speaker 5: running a sales team for a long time as well,
• 33:52
  Speaker 5: we as agents. I think a lot of the issue
• 33:56
  Speaker 5: with what you're saying is that, or the the obstacle
• 33:59
  Speaker 5: to what you're saying is if agents were more focused
• 34:03
  Speaker 5: in their daily activities, as it were, then they would
• 34:08
  Speaker 5: be generating consistent business. They would be they would be
• 34:12
  Speaker 5: consistently driving enough production that they were able to see
• 34:16
  Speaker 5: the opportunities around them a little bit more clearly.
• 34:19
  Speaker 1: The reality is there there's an eighty twenty rule in
• 34:24
  Speaker 1: this business. Just like in every pretty much everywhere in life,
• 34:27
  Speaker 1: the Brado principle is relevant in just about every aspect
• 34:30
  Speaker 1: of life. Agents need to be moving the needle forward
• 34:35
  Speaker 1: in their business every day in order for them to
• 34:37
  Speaker 1: be able to have the capacity to see see a
• 34:40
  Speaker 1: lot of the available opportunities around them. Right, So, if
• 34:43
  Speaker 1: I'm an agent and I'm getting up and I am
• 34:45
  Speaker 1: not spending a requisite amount of time based on my
• 34:49
  Speaker 1: goals an hour, two hours, whatever it is every day
• 34:52
  Speaker 1: of focused business building activities. I don't really have necessarily
• 34:58
  Speaker 1: the capacity to see all the different ways that I
• 35:01
  Speaker 1: can go and start to turn my business into a
• 35:03
  Speaker 1: residual machine because I've got to get I've got to
• 35:06
  Speaker 1: get off the ground first.
• 35:07
  Speaker 2: Right.
• 35:08
  Speaker 5: It's a it's a mindset coming out too, right, So
• 35:10
  Speaker 5: we've got to maybe this is something that you and
• 35:13
  Speaker 5: I are passionate about. And hopefully while more and more
• 35:17
  Speaker 5: people listen to the show, we get the DFW reel
• 35:19
  Speaker 5: or Facebook group really humming and really coming along at
• 35:24
  Speaker 5: the meetups and the webinars and the trainings that we're doing,
• 35:27
  Speaker 5: that we can be an advocate to build that because
• 35:30
  Speaker 5: like what ends up happening is the industry is training
• 35:35
  Speaker 5: people to chase. We talk about we talk about attracting
• 35:38
  Speaker 5: business in but that's still chasing in a sense of
• 35:41
  Speaker 5: we're still chasing transactions. Sure, because you know, it was
• 35:45
  Speaker 5: we were having a conversation with somebody that we'll talk
• 35:48
  Speaker 5: about later on, not today, but you know we were
• 35:51
  Speaker 5: talking about, look, you know you could have you could
• 35:53
  Speaker 5: have your best year ever. You you've had some amazing years,
• 35:57
  Speaker 5: and then that next year it went to one of
• 35:59
  Speaker 5: your worst year, sure, right, And that's that's a mental
• 36:03
  Speaker 5: mind game that is hard to handle, you know, where
• 36:09
  Speaker 5: like you know the the next month, you know, the
• 36:12
  Speaker 5: next month starts, and now you're back to zero. You
• 36:14
  Speaker 5: close a deal, you're back to zero. January first starts over.
• 36:17
  Speaker 5: You had an amazing you had amazing twenty twenty five.
• 36:19
  Speaker 5: Now twenty six happens, you're back to zero, and now
• 36:22
  Speaker 5: now you're now you're chasing your last best year. And
• 36:26
  Speaker 5: that's a lot of mental pressure that we put on ourselves.
• 36:30
  Speaker 3: But Brian, if.
• 36:32
  Speaker 5: You had an extra let's say that you had two
• 36:35
  Speaker 5: thousand and three thousand, five thousand dollars coming in pretty
• 36:39
  Speaker 5: much clockwork, you knew every single month you had anywhere
• 36:42
  Speaker 5: from two to five grand coming in every single month.
• 36:45
  Speaker 5: How does that change your what does that do to
• 36:49
  Speaker 5: your psyche? And and how does that help you know?
• 36:52
  Speaker 5: How does that help you prepare for attacking and building
• 36:56
  Speaker 5: the real estate business that you want to have.
• 36:59
  Speaker 1: Well, I can tell you this, right, one of the
• 37:01
  Speaker 1: most difficult There are two very difficult things in real
• 37:04
  Speaker 1: estate too, difficult mental battles. You're going to fight pretty
• 37:09
  Speaker 1: much every month, no matter what size and scale your
• 37:12
  Speaker 1: business grow to one is the fact that you do
• 37:14
  Speaker 1: start at zero again every single first of the month.
• 37:17
  Speaker 2: That's just the business that we're in. That's what we chose.
• 37:19
  Speaker 1: I'm an incredibly competitive person, and so starting at zero
• 37:22
  Speaker 1: at the beginning of every month, to me was massively
• 37:24
  Speaker 1: motivating and stressful and just in nerve wracking all at
• 37:27
  Speaker 1: the same time.
• 37:28
  Speaker 2: Right.
• 37:29
  Speaker 1: And then the second is, as you grow your business,
• 37:32
  Speaker 1: now you start to have a cash outlay every single month,
• 37:34
  Speaker 1: so you actually don't start at zero every month, you
• 37:36
  Speaker 1: start negative every Right. So when we started to build
• 37:39
  Speaker 1: the verticals in my business, in our business, right, one
• 37:42
  Speaker 1: of my first where my brain went to first, and
• 37:45
  Speaker 1: I'm going to go to a really really specific point
• 37:48
  Speaker 1: for every agent out there with this. Where my mind
• 37:51
  Speaker 1: went first was how could I use the verticals in
• 37:54
  Speaker 1: our business? How can we use some of the vertical
• 37:57
  Speaker 1: revenue now now that we were getting off of each
• 37:59
  Speaker 1: trend action? How could I use that to operate my
• 38:02
  Speaker 1: business at one hundred percent profit all the time? That
• 38:06
  Speaker 1: was my first thought, Right, how could I get back
• 38:09
  Speaker 1: to operating with zero overhead every single month? If you
• 38:13
  Speaker 1: can do that, now, all of a sudden, I've solved
• 38:15
  Speaker 1: one of my problems that my cash outlay is zero
• 38:18
  Speaker 1: at the beginning of every month, and everything that I do,
• 38:20
  Speaker 1: as successful as I'm going to be, all is just
• 38:23
  Speaker 1: it all just comes down to how well I execute
• 38:26
  Speaker 1: from zero, zero to one hundred or whatever every single month.
• 38:30
  Speaker 1: But I have no overhead basically because that's been offset
• 38:32
  Speaker 1: by the verticals. That is a much more powerful place
• 38:36
  Speaker 1: to operate from because my burn rate goes to zero,
• 38:39
  Speaker 1: and my burn rate going to zero is huge because
• 38:41
  Speaker 1: now I can survive indefinitely and in the best or
• 38:43
  Speaker 1: the worst of times. That's really important because you just
• 38:46
  Speaker 1: made the point of a lot of agents will have
• 38:48
  Speaker 1: their best year and the market will shift, and Theny'll
• 38:50
  Speaker 1: have their worst year and that burn rate will eat
• 38:52
  Speaker 1: them up because now their lifestyle starts to creep. They
• 38:55
  Speaker 1: have more business expenses, they have business and personal expenses,
• 38:58
  Speaker 1: so offsetting that is huge. The other aspect is when
• 39:03
  Speaker 1: you are able to build a machine, we're actually generating
• 39:06
  Speaker 1: residual income off of your business. Now my business has
• 39:11
  Speaker 1: true forward momentum, because in this industry, we're not afforded
• 39:16
  Speaker 1: some of the.
• 39:16
  Speaker 2: Things that I get.
• 39:18
  Speaker 1: We could go back and forth about the benefits of
• 39:20
  Speaker 1: being an entrepreneur versus being an employee all day. One
• 39:24
  Speaker 1: of the benefits is hopefully if I at least have
• 39:26
  Speaker 1: some sort of four oh one K or pension or
• 39:27
  Speaker 1: money set aside, somebody else is taking care of that
• 39:30
  Speaker 1: for me, and it'll be there down the road, right.
• 39:32
  Speaker 1: I don't know what it'll look like. It's very dependent
• 39:34
  Speaker 1: on the market, but it'll be there. And it's kind
• 39:37
  Speaker 1: of out of site, out of mind for agents. We've
• 39:40
  Speaker 1: seen so many agents that have just been crushing it
• 39:42
  Speaker 1: for years and years and years, and we've all heard
• 39:44
  Speaker 1: these stories, at least anecdotally, and then the tides turn
• 39:48
  Speaker 1: or something happens in their world or their life, and
• 39:51
  Speaker 1: now all of a sudden, they're not making the revenue
• 39:53
  Speaker 1: that they used to. And all those years that they
• 39:56
  Speaker 1: had that way, they were just crushing it, they're gone
• 39:59
  Speaker 1: now and they don't have a piece of that left.
• 40:02
  Speaker 1: They don't have a piece of what they did in
• 40:04
  Speaker 1: the past. Where you're going to start to see brokerages
• 40:08
  Speaker 1: doing this, but you can also do this in your
• 40:10
  Speaker 1: own business. Is you can start to build a machine
• 40:14
  Speaker 1: where you are getting more of the transaction, you're getting
• 40:17
  Speaker 1: a piece of more of the transaction and you're making
• 40:19
  Speaker 1: actually a residual off of it. Every single agent on
• 40:24
  Speaker 1: earth hear me when I say this has the potential
• 40:28
  Speaker 1: to be a conduit for your clients where they get value,
• 40:33
  Speaker 1: You get a piece of the pie for being the
• 40:36
  Speaker 1: intermediary in the fiduciary, and it pays you in a
• 40:39
  Speaker 1: residual every single month. You got to be finding those
• 40:41
  Speaker 1: opportunities right now.
• 40:43
  Speaker 5: The reason why it's hard to find that by the way, sure,
• 40:46
  Speaker 5: one hundred percent right. People will talk about it, but
• 40:48
  Speaker 5: it's hard to find because when you look at it,
• 40:51
  Speaker 5: you're like, well, I'm not doing enough business.
• 40:53
  Speaker 1: Or I got to go build it, or I have
• 40:54
  Speaker 1: to go because it is a different business. You're essentially
• 40:57
  Speaker 1: building a vertical in your business.
• 40:58
  Speaker 5: Well. And the other problem is that the industry, as
• 41:01
  Speaker 5: I'm as I'm going through some of the brain dump,
• 41:03
  Speaker 5: I've had kind of looking at this because this is
• 41:06
  Speaker 5: this is really this has been on my mind a lot,
• 41:09
  Speaker 5: you know, and it's like, how do we get this
• 41:11
  Speaker 5: out there in a way that that it resonates with
• 41:13
  Speaker 5: agents where it's like you know, you know, you know,
• 41:17
  Speaker 5: you and I have had the privilege of really doing
• 41:20
  Speaker 5: well in this industry, we've made really really great money.
• 41:23
  Speaker 5: We've made investments and those investments pay us. Now that
• 41:27
  Speaker 5: took us, Like you know, I shared with the group
• 41:29
  Speaker 5: last week. I think my outlay of cash was like
• 41:32
  Speaker 5: four hundred and something thousand dollars to then for buying
• 41:35
  Speaker 5: four properties is like four sixty eight and it allowed
• 41:39
  Speaker 5: me to capture one point one almost one point two
• 41:41
  Speaker 5: million dollars worth of equity and it generates, you know,
• 41:44
  Speaker 5: a great cash flow, but that's not a lot of
• 41:46
  Speaker 5: people had four hundred strike thousand dollars just to put
• 41:49
  Speaker 5: into that. You know, we've also we've also put hundreds
• 41:52
  Speaker 5: of thousand dollars into multi family apartment deals that have
• 41:55
  Speaker 5: gone to zero.
• 41:56
  Speaker 1: Right, I mean you don't always go north on your investments. Yes,
• 41:59
  Speaker 1: and they don't. I'll tell you that in a lot
• 42:00
  Speaker 1: of seminars. But you know, for every every formula that
• 42:04
  Speaker 1: I'll say how much cash are you going to make?
• 42:06
  Speaker 2: You could also lose money.
• 42:07
  Speaker 5: So in our industry, a lot of times you hear
• 42:09
  Speaker 5: people talking about, well, you I got into this and
• 42:12
  Speaker 5: invest where we and we're not training. We're training people
• 42:15
  Speaker 5: out to be salespeople too often and not as business owners.
• 42:18
  Speaker 5: Or entrepreneurs, and it's like, all right, how do I
• 42:20
  Speaker 5: capture more of this pie?
• 42:22
  Speaker 3: How do I?
• 42:23
  Speaker 5: But again, that pie needs to be something that just
• 42:25
  Speaker 5: keeps coming back on a conveyor belt for me, where
• 42:27
  Speaker 5: it's not like all right, just one off, one off,
• 42:29
  Speaker 5: one off, one off, one off, Because there will be
• 42:32
  Speaker 5: a time in your life that a storm happens, whether
• 42:35
  Speaker 5: God forbid, something happens to your health, something happens to
• 42:39
  Speaker 5: your loved one, a family member, a child, whatever that
• 42:42
  Speaker 5: may be. Or we get into we get into the
• 42:45
  Speaker 5: point where it's it's the technology or the disruption has
• 42:50
  Speaker 5: has disrupted this industry so much that it's hard to
• 42:53
  Speaker 5: make the type of living that you need to make
• 42:56
  Speaker 5: in order to pay your monthly bills one hundred percent.
• 42:59
  Speaker 1: You have the opportunity right now and we can we
• 43:02
  Speaker 1: can dive deeper on this in a million different ways.
• 43:05
  Speaker 2: One, join the Facebook group. We'll talk a lot about
• 43:07
  Speaker 2: it in there.
• 43:07
  Speaker 1: DFW Realtors if you haven't haven't joined that already, there
• 43:11
  Speaker 1: are ways you can partner right now where you can
• 43:14
  Speaker 1: capture residual on the deals that you're doing and and
• 43:17
  Speaker 1: and that becomes a vertical revenue driver for your business.
• 43:21
  Speaker 1: And also it's something where you'll turn around in ten
• 43:24
  Speaker 1: years and you'll see your colleagues that have built their
• 43:27
  Speaker 1: businesses that way, and you'd be like, man, I'm just
• 43:30
  Speaker 1: doing the math. And if I had just added that
• 43:32
  Speaker 1: type of vertical into my business with which would have
• 43:35
  Speaker 1: been a really small lift, you know, what would that
• 43:38
  Speaker 1: do for your life?
• 43:38
  Speaker 2: Now?
• 43:39
  Speaker 1: That's that is truly not to be Braggadosa's is not
• 43:42
  Speaker 1: what I'm trying to be, but that is truly the
• 43:44
  Speaker 1: difference between how a real business person thinks and how
• 43:46
  Speaker 1: a salesperson thinks.
• 43:48
  Speaker 5: Yeah, and it's not extra work. And so that's that's
• 43:51
  Speaker 5: something I really want to bring to the to the
• 43:54
  Speaker 5: to the front and to the to the you know,
• 43:57
  Speaker 5: to put in everyone's mind, to plant that seed, because
• 44:00
  Speaker 5: when you start to go ask questions.
• 44:01
  Speaker 3: I remember asking questions. I remember as we were.
• 44:03
  Speaker 5: Selling more and more houses, I was like, how do
• 44:04
  Speaker 5: I get into the mortgage space? And they're like, no,
• 44:08
  Speaker 5: you don't just stay your lane, right, you're not you
• 44:11
  Speaker 5: don't know mortgages. You legally can't do this. How do
• 44:14
  Speaker 5: I get entitle? And then all the title comes in
• 44:15
  Speaker 5: You're like, yeah, there's no money in title I'm like,
• 44:18
  Speaker 5: there's no really, you know, then the insurance space, like
• 44:22
  Speaker 5: you start looking at in the insurance guys over there
• 44:25
  Speaker 5: still playing golf every day because they built up a
• 44:27
  Speaker 5: massive book and they get.
• 44:28
  Speaker 3: Paid off residuals.
• 44:29
  Speaker 5: And by the way, seventy eight percent of an insurance
• 44:33
  Speaker 5: agent's book of business renews without them ever having to
• 44:36
  Speaker 5: call their clients.
• 44:37
  Speaker 2: Seventy eight You just get that recurring revenue every year.
• 44:41
  Speaker 3: Yes.
• 44:41
  Speaker 1: Can you imagine if seventy eight percent of your clients
• 44:43
  Speaker 1: referred to a deal and you never had to call.
• 44:45
  Speaker 5: Them, Yeah, there'd be no would be having this show,
• 44:50
  Speaker 5: would be so busy, right exactly. So that's something that
• 44:54
  Speaker 5: as this show goes on, you're going to see more
• 44:56
  Speaker 5: and more of us, you know, dropping that in there.
• 44:59
  Speaker 5: We've got, you know, just to just to kind of
• 45:01
  Speaker 5: you know pot you know, you know, put this out there.
• 45:05
  Speaker 5: Is that we will have we will have an opportunity
• 45:07
  Speaker 5: to highlight that and show this show this to to
• 45:10
  Speaker 5: other agents, and.
• 45:11
  Speaker 3: We're gonna brand it.
• 45:12
  Speaker 5: It's gonna be called get Residual Agent, So get residual
• 45:15
  Speaker 5: agent dot com. That's it's not up yet, maybe it'll
• 45:18
  Speaker 5: be up by the time this comes out where you
• 45:20
  Speaker 5: can just go take a look at it. But this
• 45:22
  Speaker 5: is something that we want to put you some pressure
• 45:24
  Speaker 5: on that, Brian. But this is something that we really,
• 45:26
  Speaker 5: really really want to make sure that we as agents
• 45:30
  Speaker 5: have an opportunity to earn that extra money. Because if
• 45:34
  Speaker 5: you're sitting there and you're asking yourself and and if
• 45:37
  Speaker 5: if you know, someone asked you the question, what happens
• 45:39
  Speaker 5: if your income stops, if you stop selling houses for
• 45:42
  Speaker 5: twelve months, and if you answer that you have no
• 45:46
  Speaker 5: more income coming in and it goes to zero and
• 45:50
  Speaker 5: you can't pay your bills and you feel that stress,
• 45:54
  Speaker 5: then you need to start building this. In fact, we
• 45:56
  Speaker 5: all need to build it as a safe regard. Yeah
• 45:59
  Speaker 5: safe at a vertical income driver. It's simply utilizing your
• 46:04
  Speaker 5: existing business as a revenue driver that that fuels itself
• 46:08
  Speaker 5: in perpetuity. That's, by the way, what almost every great
• 46:12
  Speaker 5: tech company has done. You know how much money Apple
• 46:15
  Speaker 5: makes off of apple Care as opposed to MacBooks. MacBooks
• 46:18
  Speaker 5: they make a ton of money off of, but they're
• 46:20
  Speaker 5: expensive to make. You know how hard apple Care is
• 46:22
  Speaker 5: to make. It's a landing page. Here's what we have
• 46:26
  Speaker 5: the opportuity understand what I'm saying, here's what we have
• 46:28
  Speaker 5: the opportunity as right assets create freedom. We as agents
• 46:33
  Speaker 5: have the opportunity to use the income that we make
• 46:37
  Speaker 5: to and to use the knowledge we have to go
• 46:40
  Speaker 5: acquire rental assets.
• 46:42
  Speaker 3: Right.
• 46:42
  Speaker 5: That's going to build future wealth, not it's not a
• 46:45
  Speaker 5: you know, immediate cash flow unless you pay cash. It
• 46:48
  Speaker 5: allows you to get into the businesses that you support,
• 46:51
  Speaker 5: that you that you're you're supporting their business, and you
• 46:55
  Speaker 5: should be looking at getting into the ancillary businesses. I
• 46:58
  Speaker 5: know that my agents have that opportunity over the long run,
• 47:01
  Speaker 5: or getting into stock options. There's opportunities to build those
• 47:07
  Speaker 5: those passive or more residual income streams through the same
• 47:10
  Speaker 5: amount of work that you're doing right now, Brian. And
• 47:13
  Speaker 5: so what I would ask is, go to get residual
• 47:17
  Speaker 5: agent dot com. Just take a look at it.
• 47:19
  Speaker 3: Sign up. You don't have to do anything with it.
• 47:21
  Speaker 5: Just open your mind to what would it be like
• 47:24
  Speaker 5: if you had an extra five hundred one thousand, two
• 47:26
  Speaker 5: thousand and three thousand dollars coming in every single month
• 47:29
  Speaker 5: from your from the clients that you're already working with
• 47:32
  Speaker 5: every single day.
• 47:33
  Speaker 3: We'll talk more about that.
• 47:34
  Speaker 2: We'll talk more about it.
• 47:35
  Speaker 1: We'll drop We'll drop a lot more info for you
• 47:37
  Speaker 1: guys as we help you build it out.
• 47:39
  Speaker 5: Yeah, episode five in the books, let's go support Homeward
• 47:43
  Speaker 5: Property Management Homeward DFW dot com, Dana Win Duncan, O'Donnell
• 47:47
  Speaker 5: or ready to help your clients with leasing out their properties,
• 47:51
  Speaker 5: with managing their properties professionally. And look it's you know
• 47:55
  Speaker 5: there's gonna be timed when you have an inspection report
• 47:57
  Speaker 5: that needs a ton of work. You're gonna have clients
• 47:59
  Speaker 5: that want to remodel their house or get it ready
• 48:02
  Speaker 5: to sell. Go to pro Care Home Solutions that you
• 48:06
  Speaker 5: know Chris and his team pro Care DFW dot com.
• 48:08
  Speaker 5: Chris and his team can handle anything from roof siding, electrical, HVAC, plumbing,
• 48:14
  Speaker 5: full gut remodels, even commercial commercial make ready so pro
• 48:17
  Speaker 5: caredfw dot com. And then get with Jesse over here
• 48:20
  Speaker 5: at Tour Studios tour studios dot com. Maybe he'll throw
• 48:23
  Speaker 5: in a free hat if you sign up with them.
• 48:24
  Speaker 2: I almost wore Tour Studios at today. Me and Jesse
• 48:27
  Speaker 2: would have been twinsies. I know, I regret it.
• 48:29
  Speaker 5: The only thing I don't like about the hat which
• 48:31
  Speaker 5: Jesse can pull off. It's got the white old school
• 48:34
  Speaker 5: string across it. Yeah, it just doesn't look good on me.
• 48:36
  Speaker 1: You've got to be a specific type of guy to
• 48:38
  Speaker 1: wear those, and I wear my hat backwards.
• 48:40
  Speaker 3: I don't think that looks good.
• 48:44
  Speaker 1: All right, everybody, thank you so much for listening. We
• 48:46
  Speaker 1: really appreciate you hanging with us, and we'll see you
• 48:49
  Speaker 1: next week.
• 48:53
  Speaker 3: Turn it up.
• 48:57
  Speaker 4: If this WEDF Your real Estate a weekly podcast troop
• 49:03
  Speaker 4: for agents who actually give.
• 49:05
  Speaker 2: Pay parking moves.
• 49:06
  Speaker 4: Listen, he colothing streets, he a family age.
• 49:15
  Speaker 5: Let's sen