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MAP 064: What You Need to Know BEFORE Building a Real Estate Team w/ Lars Hedenborg · Massive Agent Podcast

0:00
SPEAKER_02: On this episode of the Massive Agent Podcast, we're sitting down with a serious authority on the topic of team building, real estate team building, to tell you what you need to know before building a real estate team.
0:11
SPEAKER_02: We're sitting down with Lars Hedenberg, founder of Real Estate Meat School.
0:16
SPEAKER_01: The Massive Agent Podcast.
0:18
SPEAKER_01: We generate your different strategies to give you more leads and sell more hold.
0:24
SPEAKER_02: I love to buy houses.
0:25
SPEAKER_02: I like to sell houses.
0:29
SPEAKER_01: Wait a minute.
0:33
SPEAKER_01: I've had better.
0:38
SPEAKER_01: Here's your host, Dustin Brown.
0:42
SPEAKER_02: Hey, what is up, guys?
0:43
SPEAKER_02: Welcome to episode number 64 of the Massive Agent Podcast.
0:46
SPEAKER_02: Welcome.
0:47
SPEAKER_02: Thanks for joining today.
0:48
SPEAKER_02: This is an awesome show because a lot of us are in this position where we've kind of maxed out what we can do as a solo agent and we're ready to start thinking about building a real estate team.
1:00
SPEAKER_02: And what I'm noticing, I'm noticing, I'm hearing this from a lot of people.
1:05
SPEAKER_02: But then even on a local level, a lot of the real estate teams that that have a name that you'd recognize, I start hearing that, well, they're actually not profitable.
1:14
SPEAKER_02: They're actually in the red.
1:16
SPEAKER_02: They're actually operating off credit cards.
1:18
SPEAKER_02: Um, they're not making any money.
1:19
SPEAKER_02: And you're like, well, they're selling hundreds of homes.
1:21
SPEAKER_02: How the hell is this possible?
1:22
SPEAKER_02: And this is starting to become a common theme.
1:24
SPEAKER_02: Well, they built it wrong.
1:26
SPEAKER_02: Okay.
1:27
SPEAKER_02: There's so many different ways that you can structure a team.
1:30
SPEAKER_02: And so if you're if you're like me, you have not yet built a team.
1:35
SPEAKER_02: This is actually going to benefit you.
1:36
SPEAKER_02: Okay.
1:37
SPEAKER_02: Not build not having built a team up to this point is actually a good thing once you get this information because so many of the things I thought were the right way were actually not.
1:47
SPEAKER_02: This is a very enlightening episode for anybody, agent or loan officer or mortgage broker who's planning on building a team.
1:54
SPEAKER_02: We talk about the compensation structure, we talk about some some other details, and and this is definitely an enlightening, perspective-changing episode for me.
2:03
SPEAKER_02: I hope you enjoy it.
2:04
SPEAKER_02: If you are new to the show or you're old to the show, either way, my name is Dustin Brome, your host.
2:12
SPEAKER_02: I am a realtor in Salt Lake City, Utah with EXP Realty.
2:16
SPEAKER_02: I am the co-founder of the Industry Syndicate, real estate's very first media network.
2:21
SPEAKER_02: I'm also the founder and head coach.
2:23
SPEAKER_02: I just gave myself that title just now.
2:25
SPEAKER_02: I'm the head coach of the Massive Agent Society.
2:28
SPEAKER_02: The society is great for agents, loan officers, and mortgage brokers, anyone wanting to take lead generation into their own hands, so you don't have to rely on Zillow, so you don't have to rely on realtor.com or homes.com or any of this other garbage out there, or so you don't have to rely on a team anymore.
2:46
SPEAKER_02: If you want to, if you want to learn how to generate your own leads, and some of those leads you can get for a dollar a piece, okay, uh I mean, that's not not everyone's gonna get leads for a buck, but it's absolutely possible.
2:57
SPEAKER_02: Uh we show you how to do that.
2:59
SPEAKER_02: And rather than reinventing the wheel, in addition to the training you get through the Massive Agent Society, we also give you access to a database of Facebook ads that are proven to work, proven to bring leads in.
3:10
SPEAKER_02: Every single agent I've seen try this, it's worked for them.
3:13
SPEAKER_02: And you can just copy and paste.
3:15
SPEAKER_02: You can just copy and paste and run them and get leads.
3:17
SPEAKER_02: It's working like it's working very, very well for every agent who has joined the Massive Agent Society, not just agents, loan officers as well.
3:27
SPEAKER_02: So check that out at MassiveAtsociety.com and you would be surprised, even though we have there's a lot of um a lot of the major markets in the country that if you're in a major city and you're like, well, uh this city's probably sold out because we only allow one agent or loan officer per market for the society, uh, you might be surprised which markets are still available.
3:49
SPEAKER_02: So if you're in a major city even, don't just think, oh, mine's already taken.
3:53
SPEAKER_02: Go to MassiveAgentSociety.com, click on claim your market up at the top, and look on the map.
3:58
SPEAKER_02: And if yours is not in if your market is not circled in red, you're good to go.
4:03
SPEAKER_02: Okay, you can actually claim that market for yourself and be the only agent or the only loan officer in your whole market getting access to these ads.
4:12
SPEAKER_02: All right, guys.
4:13
SPEAKER_02: Uh so today's show Oh, first, first, okay, a little announcement, a little uh little timely announcement here.
4:19
SPEAKER_02: Better better let you know.
4:21
SPEAKER_02: So one of the things I have been speaking about when I travel uh to speaking engagements, and one of the topics that I get asked about a lot lately is how to do podcasting and how to do flash briefings.
4:33
SPEAKER_02: And I mean, obviously as a show host, I've been doing this for over a year.
4:37
SPEAKER_02: You know, I I know a thing or two.
4:39
SPEAKER_02: I've and we we now, thanks to you guys, we now have one of the top shows in the industry.
4:44
SPEAKER_02: You know, we're doing well.
4:45
SPEAKER_02: Um it's been growing like crazy, and you know, we're starting to really like hit our stride.
4:51
SPEAKER_02: Because of that, I get asked a lot.
4:53
SPEAKER_02: You know, what should I do?
4:54
SPEAKER_02: How do I do a podcast?
4:55
SPEAKER_02: What mic do I need?
4:56
SPEAKER_02: You know, who should who should the host be?
4:59
SPEAKER_02: And I don't mean the host, like me hosting this show.
5:01
SPEAKER_02: I mean like BuzzSprout or or Libson or whatever, the the host of your podcast, the platform host.
5:08
SPEAKER_02: Anyways, I get asked about it a lot.
5:11
SPEAKER_02: Um over on our YouTube channel, the Massive Agent YouTube channel, I just posted my talk at Inman Connect, where in 10 minutes I teach you how to do a podcast.
5:20
SPEAKER_02: But that's only 10 minutes.
5:21
SPEAKER_02: That doesn't go into all the details.
5:23
SPEAKER_02: Because I get asked, well, okay, where do I plug like once I get the mic, then what do I do with it?
5:28
SPEAKER_02: How far away from the mic do I do I talk?
5:30
SPEAKER_02: Uh then how do I edit the audio?
5:32
SPEAKER_02: Then how do I upload it?
5:33
SPEAKER_02: How do I choose my host?
5:34
SPEAKER_02: How do I how do I get guests?
5:36
SPEAKER_02: How do I record interviews?
5:38
SPEAKER_02: Like all of those details are important, right?
5:40
SPEAKER_02: Well, good news.
5:42
SPEAKER_02: I am finally putting the finishing touches on my podcasting for real estate course.
5:48
SPEAKER_02: This is going to be a very affordable course.
5:51
SPEAKER_02: It is not going to be a monthly payment.
5:53
SPEAKER_02: It's going to be a one-time, very affordable cost to get access to everything.
5:59
SPEAKER_02: I want you to understand me.
6:01
SPEAKER_02: Every single step that you're going to need to do a successful podcast or flash briefing will be in this course.
6:08
SPEAKER_02: All right.
6:09
SPEAKER_02: Right now, you can get on the waiting list.
6:12
SPEAKER_02: We we have not even opened up pre-registration yet.
6:14
SPEAKER_02: We will soon, but if you want to get on the waiting list to be notified first of the pre-registration, which will be at a significant discount.
6:21
SPEAKER_02: Okay.
6:22
SPEAKER_02: The discount will only have two digits in the price.
6:25
SPEAKER_02: Okay.
6:26
SPEAKER_02: See what I'm see where I'm going here?
6:28
SPEAKER_02: Go to MassiveAnPodcast.com slash course waiting list.
6:33
SPEAKER_02: One more time.
6:34
SPEAKER_02: MassiveAgent Podcast dot com slash course waiting list.
6:37
SPEAKER_02: Get on the waiting list.
6:38
SPEAKER_02: You'll be notified as soon as we open for pre-registration.
6:42
SPEAKER_02: And I'm telling you guys as I'm putting the videos together for this course, this is so powerful.
6:48
SPEAKER_02: I never had any course like this when I was getting started.
6:50
SPEAKER_02: So much of this shit I had to figure out myself.
6:52
SPEAKER_02: But guess what?
6:53
SPEAKER_02: We're putting it all in one spot.
6:55
SPEAKER_02: We're going to show you the equipment you need, exactly how to use that equipment, how to, how to come up with the idea for a show, how to how to come up with your cover art, your album cover art, how to uh how to launch it, how to promote it, how to do interviews, how to, you know, how to how to look at the analytics of of whether your show is doing well or not, and then how you can leverage that show to get more business.
7:20
SPEAKER_02: Okay, this we're gonna show you every step of the way with video and with screen sharing.
7:24
SPEAKER_02: I'm gonna show you how to edit audio.
7:26
SPEAKER_02: I'm gonna show you which program I use to edit the audio, how I save the files, how I upload them to my host, which host to use.
7:33
SPEAKER_02: We'll give you discounts on the host and on that stuff.
7:36
SPEAKER_02: Everything.
7:37
SPEAKER_02: One more time, guys.
7:38
SPEAKER_02: If you're interested in doing your own podcast at any time in the future, go to MassiveAgent Podcast.com slash course waiting list, get on the list, and we'll notify you once pre-registration opens, probably within the next couple of weeks.
7:51
SPEAKER_02: All right, so uh the the book of the week, uh we've pushed to the end of the interview today.
7:56
SPEAKER_02: Um I'm reading an incredible book by an incredible guy, David Goggins.
8:01
SPEAKER_02: He's a former Navy SEAL and probably one of the toughest sons of bitches on the frickin' planet.
8:05
SPEAKER_02: This guy is unbelievable.
8:07
SPEAKER_02: And so his book is on this week's book club.
8:11
SPEAKER_02: It's not really a book club, but the book of the week.
8:14
SPEAKER_02: Okay.
8:15
SPEAKER_02: Uh stay tuned after the interview for for info on that, because this book for mindset, if you want to change your mindset and become and get more mental toughness, oh my God, this book's amazing.
8:25
SPEAKER_02: All right.
8:26
SPEAKER_02: So let's get into the content.
8:27
SPEAKER_02: We this week we sat down with somebody that I've I've really looked up to for a while.
8:32
SPEAKER_02: Um, his name is Lars Hedenberg.
8:34
SPEAKER_02: He's the founder of Real Estate B School, realistatebschool.com, and he teaches people how to, and I know they have like a concierge service that that kind of like helps people, like literally helps them do this.
8:46
SPEAKER_02: And then they have a course as well for how to build a real estate team the right way, how to structure it, how to how to compensate your agents, like all of that stuff.
8:55
SPEAKER_02: Because uh, according to him, most teams are not even profitable.
8:58
SPEAKER_02: Most teams that you see as like some of the biggest in town, they don't make any money.
9:02
SPEAKER_02: Or if the team leader was removed, if they removed their production, it it would completely fall apart.
9:08
SPEAKER_02: So he is showing people how to build a sustainable business right from the start, the right way.
9:15
SPEAKER_02: And this interview blew my mind.
9:17
SPEAKER_02: It uh I had a certain misconception about how to compensate my agents.
9:22
SPEAKER_02: I always thought, well, if you want to get better agents and retain them longer, you need to pay them more.
9:26
SPEAKER_02: Well, I found out that's exactly the opposite.
9:28
SPEAKER_02: And you'll hear exactly how and why in this very enlightening interview with Lars Hedenberg, founder of Real Estate B School, on how to build a team the right way.
9:37
SPEAKER_02: Check this out.
9:37
SPEAKER_02: All right, guys, what's up?
9:38
SPEAKER_02: I'm sitting here with Lars Hedenborg.
9:40
SPEAKER_02: He's the founder of Real Estate B School, and this is this is a show I've wanted to do for a long time about how to build a real estate team the right way.
9:50
SPEAKER_02: So, and I'm I'm excited because I am still a solo agent.
9:54
SPEAKER_02: I do not have what you'd think of as a real estate team, but I absolutely plan on building one this year.
10:00
SPEAKER_02: And so now I'm kind of glad that I didn't just like go out and do it because I'm hearing from a lot of big teams like on a local level that you think are you know killing it, and then you find out, oh, they're in crazy credit card debt and like they're in the red every month.
10:15
SPEAKER_02: So I want to learn how to do this the right way.
10:17
SPEAKER_02: I'm a firm believer that you you bel you start with the end in mind.
10:21
SPEAKER_02: And so, Lars, I'm so stoked to hear how you know how to build a team the right way.
10:27
SPEAKER_02: And and for people who aren't familiar with you yet, or real estate b school, how did you get into how did you get into this?
10:35
SPEAKER_02: I mean, how did you get into real estate?
10:36
SPEAKER_02: You know, what gives you the perspective to to help others build build these massively successful teams?
10:42
SPEAKER_02: And just tell us about yourself.
10:44
SPEAKER_00: Yeah, so I'll give like the the the quick and thanks for having me, by the way.
10:48
SPEAKER_00: This is gonna be really cool.
10:49
SPEAKER_00: Yeah, my pleasure.
10:50
SPEAKER_00: Yeah, this will be a lot of fun.
10:52
SPEAKER_00: Uh so I got back, I was in a corporate uh job.
10:55
SPEAKER_00: I did acquisitions and strategy for an aerospace company.
10:58
SPEAKER_00: Uh that was a seven, eight-year uh position, really cool job.
11:02
SPEAKER_00: Um, but I I knew I couldn't achieve what I wanted to uh financially and and time freedom in a corporate setting.
11:09
SPEAKER_00: So uh solo agent in 2007-8.
11:13
SPEAKER_00: I hired my first assistant, uh, did 44 transactions my first full year, um, 58 the next year, uh, then hired uh three or four buyer agents, did all that uh completely wrong, but somehow we managed to go from 58 to 118 to 178, another admin hire, 248 families served, 312, and then over 400 in a single year.
11:36
SPEAKER_00: The cool thing was that in January 2012, I think it was the year I did 100, maybe it was to the year I did 248.
11:45
SPEAKER_00: Um that was the that was my last closing.
11:47
SPEAKER_00: And so I did like one out of 250 deals that year, and um I had the intention of building a team on, you know, I came from a corporate background, so I knew I wanted to build it in a way where uh it was uh uh a tight-knit uh group of uh of individuals that were working to serve buyers and sellers.
12:08
SPEAKER_00: And a lot of teams these days are it's literally just a loose collection of agents, and and the team leader still thinks that purchasing leads is is qualifies you to be a team leader.
12:20
SPEAKER_00: Um, you know, very specifically the team that we're building for the future uh high performance real estate advisors, I'm the co-founder of that business.
12:31
SPEAKER_00: It's it's to be the best provider of real estate services in all the land so that you know, three to five years from now we can defend our commissions and we can be a a every industry has transformed uh via technology and it's coming in our industry.
12:48
SPEAKER_00: So back in 2013, so essentially I got out of production in January 2012, uh went from five to three to two to one day a week.
12:57
SPEAKER_00: Um one year I made uh it was twenty thousand dollars a day uh in my real estate team, uh which was cool.
13:04
SPEAKER_00: Uh and I had leveraged everything out.
13:06
SPEAKER_00: Um and there's some some challenges with that as well when you you're absent from your business, some cultural issues, but it was really good money.
13:14
SPEAKER_00: Um and and it wasn't easy, and it and and there were parts of it that I was totally not qualified for, and I failed in most of the ways that you can imagine failing in building a team.
13:25
SPEAKER_00: I just failed quickly and I didn't get discouraged by the failure.
13:29
SPEAKER_00: And so I was I was building it on a very sound economic model that still I coach to uh today.
13:37
SPEAKER_00: Um but the journey was hard for me.
13:38
SPEAKER_00: So in 2013, I launched real estate B School as the B stands for business.
13:44
SPEAKER_00: You know, I I I I still feel like there isn't really good business coaching for real estate agents for folks that want to transition from top producer, which most of the time being a top producing agent sucks because you're working seven days a week, you have no leverage, you're on email, text, working deals and offers at all crazy times, and it doesn't it doesn't lend itself for any sort of normalcy in your relationships with your physical health, with your spiritual health.
14:12
SPEAKER_00: You know, you can't be a good dad, you can't be a good uh husband or or wife or whatnot.
14:18
SPEAKER_00: So um that's that's basically how it was born as as a way to make the journey easier for others that want to do it.
14:25
SPEAKER_02: And so you're you're not just like this isn't just your perspective, you've helped other teams build build a team with a certain roadmap or a certain structure, um certain plan or blueprint.
14:40
SPEAKER_02: I guess there's a bunch of different ways I could say that.
14:42
SPEAKER_02: Um and so like what for the agent who they're they're getting to that point where they're just like they're doing it all themselves.
14:51
SPEAKER_02: They're they're a top producer, but like you said, it's really straining the family.
14:55
SPEAKER_02: It's straining, or maybe they just don't want to work seven days a week.
14:58
SPEAKER_02: Maybe they just want to take two or three days off a week and they want more of a balance, whatever that is for them.
15:04
SPEAKER_02: How can they start moving towards that direction?
15:06
SPEAKER_02: What do they need to know right now?
15:08
SPEAKER_02: And then how can we get them there?
15:09
SPEAKER_02: Like let's let's jump into it, man, because I'm I'm super freaking stoked to to hear about this.
15:14
SPEAKER_00: Yeah, so you so you you said it when you um when you made the introduction.
15:18
SPEAKER_00: You said, you know, to to begin with the end in mind, I think you know a a lot of a lot of agents that fail to scale, they don't have a plan.
15:29
SPEAKER_00: And a lot of agents that scale and build a team, they don't have a plan.
15:35
SPEAKER_00: So either you successfully grow your business in terms of units, but you didn't build it on a really good roadmap, um, or you you just you you fail to because you literally don't know what you're doing and you don't have a plan to do it.
15:48
SPEAKER_00: So it's funny you mentioned roadmap.
15:50
SPEAKER_00: You know, we we we we look at the real estate, you know, the the end game here is a a highly uh a high functioning, um, sustainable, uh systems-driven business that provides superior buyer and seller real estate services.
16:08
SPEAKER_00: Like we're in the business of helping buyers and sellers at the highest level.
16:13
SPEAKER_00: So no matter what happens with the industry and technology and disruption and Zillow coming in and Redfin, and we're gonna be okay.
16:21
SPEAKER_00: And so that's the backdrop to this conversation.
16:23
SPEAKER_00: And if you want to be that entity, you can't do it as a solo agent.
16:28
SPEAKER_00: You know, yeah, there are still gonna be solo agents in the future, but if it if it came down to like who's the best provider of you know, to help buyers or sellers in in the greater Charlotte market, it's going to be us.
16:42
SPEAKER_00: And part of it's aspirational and we're building it every day.
16:44
SPEAKER_00: It's just a different view on the business.
16:46
SPEAKER_00: But we break it down into six key drivers.
16:50
SPEAKER_00: And and I'll just list them.
16:52
SPEAKER_00: Uh, but number one is roadmap, and it's literally to begin with the end in mind.
16:57
SPEAKER_00: Uh number two is marketing to systematically generate high quality buyer and seller leads.
17:02
SPEAKER_00: Number three is sales, but not just being able to sit down on your own and and convert a consultation into a loyal client, but to systematically do it.
17:13
SPEAKER_00: Um and then operations, you know, the promises you make in sales, you know, are you able to deliver on uh deliver on those private promises in a high level that doesn't involve you?
17:24
SPEAKER_00: So they're systems driven.
17:26
SPEAKER_00: And then the the the last two are the are the most difficult.
17:30
SPEAKER_00: The the fifth driver is is finance.
17:32
SPEAKER_00: It comes down to the economic model you're building it on, the foundational, you know, sort of financial tools, and then you know, how do you expand your profits and ultimately your net worth?
17:42
SPEAKER_00: And then the sixth driver is people.
17:44
SPEAKER_00: You know, it really comes down to the it's your only competitive advantage when you're building a team is your people, the core values, how do you find and hire talent at a at a high level, and how do you lead and manage those folks?
17:55
SPEAKER_00: And so when you look at a top-producing solo agent, they have no roadmap, they probably don't have a whole lot of marketing, they could probably sell because they probably have the personality for it.
18:07
SPEAKER_00: They don't systematically deliver in their operations, they don't track anything, and they're the they don't they don't view people as as leveraged to to build their world um or to to scale their business.
18:21
SPEAKER_00: So um that's kind of it in a nutshell, you know, the the the the drivers of a sustainable uh business or even a real estate business worth owning.
18:30
SPEAKER_02: Um and so I don't know if there's any point part of that that you want to dig deeper in uh into or uh you know how about step one, like the the roadmap, because I think like when I when I've sat down and I've thought for myself of okay, how am I gonna put this team together?
18:47
SPEAKER_02: How am I gonna structure it?
18:48
SPEAKER_02: How am I how am I going to compensate buyers agents?
18:51
SPEAKER_02: What's the split gonna look like for listing specialists and all that?
18:54
SPEAKER_02: And and what other positions do I even need that I might not know about?
18:58
SPEAKER_02: I think of like I think of just Googling shit and and reading an article, or going to you know, Gary Keller's um, you know, real estate Bible, you know, the what is it, the millionaire real estate agent.
19:11
SPEAKER_02: Um what and then a lot of misconceptions come up along the way, and and I'll get to some of those, or maybe they're not misconceptions, but things that stop people in their tracks from even taking action.
19:24
SPEAKER_02: What what are some specific things right from the get that people should have in their minds or plan on doing if they're going to build a team at some point in the near future?
19:34
SPEAKER_02: Like let's say they want to do it within the next six to twelve months.
19:37
SPEAKER_00: Yeah, so I mean the the 85% of our industry doesn't even have uh a light, like an assistant, not even licensed, just any any administrative support.
19:48
SPEAKER_00: And so if you look at all the jobs, like the individual tasks and and and jobs of a real estate agent, like 80% of them are mostly administrative.
19:58
SPEAKER_02: Absolutely.
19:58
SPEAKER_02: So even with the marketing, like you know, yeah, marketing stuff, yeah.
20:02
SPEAKER_00: Yeah, so so as as as the team owner, you know, as the business owner, you you you can get paid a lot of money to design a marketing system, but you don't get paid a lot of money to you know to to run that system on an ongoing basis.
20:17
SPEAKER_00: And so um the the first thing I would focus on is really there's a lot of first things, um, because you threw a lot in there.
20:27
SPEAKER_00: Uh the economic model, wrapping your head around what this thing needs to look like.
20:33
SPEAKER_00: And and it's it's a it's a very near and dear uh topic for me because of you know, right now there's a lot being revealed um uh among the top teams that that I know are not profitable or marginally profitable.
20:51
SPEAKER_02: Yeah, yeah.
20:52
SPEAKER_02: I've I've been seeing that some of these teams locally, I mean, and I don't know because I've like I don't look at their books, but like you hear that you know they're not doing so well.
21:00
SPEAKER_02: And from the outside looking in, you're like, wow, they they should be.
21:04
SPEAKER_00: Yeah, and I and I've you know I've I've coached folks that are you know three million in in GCI making less than 10% uh profit before taxes and owners comp.
21:19
SPEAKER_00: Um and I've taken them to you know over 750 to 900 and and with the owner out of production.
21:26
SPEAKER_00: And you know, part of it is just looking at the lead sources and um splits are too high for the amount of value that agents are are adding in the transaction.
21:34
SPEAKER_00: Um but but generally it's the first thing is wrapping your head around the economic model.
21:40
SPEAKER_00: What the financial what the financials need to look like when it's fully built out.
21:44
SPEAKER_00: Um and then to also decide the model.
21:47
SPEAKER_00: You know, there's different, there's about three different phases of growth.
21:50
SPEAKER_00: You know, first is is literally just hiring an administrative assistant and getting them to help you build the systems.
21:56
SPEAKER_00: Number two is you know, it's either a showing agent.
22:00
SPEAKER_00: Or a you know a couple buyer agents to sort of take over your buyer business, but also to add business that you wouldn't have gotten otherwise.
22:07
SPEAKER_00: Um, you know, you could take four to five people.
22:10
SPEAKER_00: I've got a team that'll do 60 million this year, that it's only six people, two admin, team leader, and three agents.
22:19
SPEAKER_00: You know, and the team leader takes off Fridays, Saturdays, and Sundays, and they work one late evening during the week.
22:25
SPEAKER_00: And so it's not, it doesn't have to be this complex or convoluted.
22:29
SPEAKER_00: The same way that I built my real estate team is the same way I would advise everyone to build it.
22:34
SPEAKER_00: It's one admin and four right fit buyer agents that are minimum standard is two transactions, really three a month, but two a month minimum transactions.
22:44
SPEAKER_00: So you got four agents selling a hundred deals and the team leader selling 50 deals.
22:49
SPEAKER_00: 150 units, that's that's how I still coach.
22:54
SPEAKER_00: And it's not hard to build, but the team leader generally they just get completely off track.
23:00
SPEAKER_00: They spend money on 12 different things at once.
23:02
SPEAKER_00: They hold, they don't hold their expenses accountable, they don't hold their people accountable, um, they don't have a good referral system.
23:08
SPEAKER_00: The first thing, first thing we teach in marketing is a systematic approach to getting referrals.
23:14
SPEAKER_00: So even though I don't talk to anybody anymore, we still, you know, I'm so far removed from my business.
23:20
SPEAKER_00: We'll do 1.5 million from our database.
23:24
SPEAKER_00: You know, about 35% of our GCI will come from the database.
23:29
SPEAKER_00: And it's completely automated.
23:32
SPEAKER_00: Wow, that's impressive.
23:34
SPEAKER_00: Yeah.
23:34
SPEAKER_00: And so, but but it all comes down to a system.
23:37
SPEAKER_00: And the the the driving force, if I I literally have the the drivers, there's three parts to each of these six drivers.
23:44
SPEAKER_00: The first part of the first driver, which is roadmap, is putting your life first.
23:50
SPEAKER_00: And it's it's this guiding principle of real estate B school is that there is no, there's no, there's nothing worse.
23:58
SPEAKER_00: I I will not allow you to sacrifice any part of your your personal life for your business.
24:05
SPEAKER_00: Yes, there are periods of time where you're gonna put in additional hours because you're building systems and and and still in production, but putting your life first and then psychology, productivity, and and the and a three-year plan.
24:18
SPEAKER_00: Through the three-year plan is everything.
24:20
SPEAKER_00: And so that's kind of the roadmap, how we set up the roadmap, and then systemizing marketing and then building out your buyer sales system, your listing sales system, so you're not the one that has to do it.
24:30
SPEAKER_00: And the and the training around somebody else doing it.
24:35
SPEAKER_02: What are some ideas that you have for like what are some of those ways you can automate your marketing or systematize your marketing?
24:44
SPEAKER_02: Um, and do you I know I'm asking different questions here, they might be the same answer though, but um, do you is buying leads from Zillow and Realtor.com part of your your overall system, or does that just vary by team?
24:58
SPEAKER_00: Uh so uh no and yes.
25:01
SPEAKER_00: So so for us, uh we we're looking to simplify our business.
25:08
SPEAKER_00: And we don't believe, and not that anybody believes it, um I don't actually believe that buying a bunch of leads from someone that has figured out how to generate leads is like a really sustainable business.
25:24
SPEAKER_00: I agree.
25:25
SPEAKER_00: Yeah, we don't pay for any paid home search leads.
25:29
SPEAKER_00: Literally, we we we were luckily with Zillow, we were able to maintain our premier premier status before they started taking those away if you dropped your spend.
25:40
SPEAKER_00: Um, but even then we only were at 5,000 a month with Zillow.
25:45
SPEAKER_00: So we never got on the like crack cocaine addicted to spend.
25:52
SPEAKER_00: I actually don't believe that's a real business.
25:54
SPEAKER_00: I don't think having someone else generate an opportunity doesn't happen all that often in other industries.
26:00
SPEAKER_00: Like you have to figure out as the business owner how to generate a buyer from your listing without paying for forced registrations.
26:10
SPEAKER_00: That game is is done as far as I'm concerned.
26:13
SPEAKER_00: We stopped it 18 months ago.
26:15
SPEAKER_00: And so, you know, when we take a listing, so that so the first part of the marketing driver is getting referrals.
26:23
SPEAKER_00: You need a system set up early on that is going to consistently generate referrals, period.
26:30
SPEAKER_00: And then once you do that, the next one is listing marketing.
26:34
SPEAKER_00: Every time you take a listing, there are five potential commission checks that you can you can earn off of that one listing.
26:41
SPEAKER_00: You can let me see if I can uh I always come up with four and I know there's five.
26:44
SPEAKER_00: So the one is to sell the listing, two is to help the buyer, that help the seller buy a home.
26:52
SPEAKER_00: Three is to get a referral from that that seller, four is to get a buyer from the yard sign or any any other marketing you do.
27:03
SPEAKER_00: Uh, and then five is to get a seller within the neighborhood via direct mail uh or circle prospecting or door knocking or open houses.
27:12
SPEAKER_00: So there's those five commission checks are on are on the table when you take a listing.
27:18
SPEAKER_00: And you build it out where when you take a listing, all of those five marketing systems happen automatically because the systems are set up ahead of time and all you need is a, you know, in most markets, a$12 to$15 an hour person that's executing those strategies.
27:33
SPEAKER_02: Yeah.
27:34
SPEAKER_02: Interesting.
27:35
SPEAKER_02: Yeah, it's funny because it's so easy when when you're a solo agent, especially, and you get a listing, we we just look at selling that listing, right?
27:44
SPEAKER_02: Like I'm gonna run some Facebook ads to promote an open house or or to promote the new listing with a single property website and get some people to you know register just so they can get the the address and the price and you know that all that crap.
27:57
SPEAKER_02: Um, but we forget about all the business that that one listing could lead to.
28:02
SPEAKER_02: So yeah, and so you're able to systemize that whole thing?
28:06
SPEAKER_00: Yeah, not only systemize it, but track it.
28:09
SPEAKER_00: So if let's say you had tracking in place, let's say that how long you've been in real estate, how long you've been selling?
28:15
SPEAKER_00: Eight years.
28:16
SPEAKER_00: So let's say for the last eight years, you were able to track every listing you took you had in a spreadsheet, and you were able to track to track how many of the five commission checks that that you've earned.
28:29
SPEAKER_00: And you give yourself a score, you know, and it's not apples to apples because it takes time to, you know, we may get, we may take a listing today, and 15 months from now we close a buyer on it, but we actually track that.
28:43
SPEAKER_00: So, you know, how close are you to five?
28:46
SPEAKER_00: And we actually track it on our team.
28:48
SPEAKER_00: So, you know, most agents are probably less than one, you know, because not every listing sells and they don't have really a buyer acquisition system for listings.
28:56
SPEAKER_00: So you have to set it up and you also have to track it.
28:59
SPEAKER_00: And it's not a complicated tracking process.
29:01
SPEAKER_00: Um but but but but yeah, I mean it's it's set up as a system that runs with with without me being involved in any of it.
29:10
SPEAKER_00: Um and then the the the third pillar, you know, third part of the marketing driver is expireds and FISBOs.
29:17
SPEAKER_00: You know, you you can't be like a fair weather fan, is probably a good way to say it, of those systems, you know, based on what the market is doing.
29:29
SPEAKER_00: You know, we are we do inbound and outbound uh expired and FISBO marketing, no matter what the market is.
29:38
SPEAKER_00: So if you know when the market shifts here, hopefully it's a soft, softish landing, we're gonna be in a good position with with expired ramping up.
29:47
SPEAKER_00: This year, I think we're on track, we're blowing our expired um GCI goal out of the water.
29:54
SPEAKER_00: I think we're at like 400,000 already, closed and pending.
29:58
SPEAKER_00: And as of this recording, it's February 27th.
30:01
SPEAKER_00: Um, so we're just we're crushing it.
30:03
SPEAKER_00: We might get over a million dollars on, and I don't even think with with our dialers and you know, with the direct mail and some technology stuff that we do, I don't think we'll be 25 grand in on that.
30:18
SPEAKER_00: That's incredible.
30:19
SPEAKER_00: Yeah, and and yeah, so it's it's it's pretty cool.
30:22
SPEAKER_00: So yeah, but it all comes down to systems.
30:24
SPEAKER_00: Those happen behind the scenes, all of that happens where, you know, and we our team is only, you know, two and inside sales, four and outside sales.
30:33
SPEAKER_00: You know, so it's not, and we've got one showing agent.
30:35
SPEAKER_00: So we'll do three and a half, three point seven million GCI with a very lean sales team.
30:42
SPEAKER_00: Right.
30:43
SPEAKER_00: You know, and we have probably a a a couple more administrative backstage staff because we take everything off of them.
30:51
SPEAKER_00: You know, we want them to go sell and and prospect and and lead, generate, and convert.
30:56
SPEAKER_00: And we don't want them in a contract to closing, you know, situation where they're negotiating repairs with somebody, you know, like yeah, like there's a hundred dollar fix on a faucet and a closing's not gonna happen.
31:09
SPEAKER_00: I don't need uh that agent involved in that.
31:13
SPEAKER_02: Right.
31:14
SPEAKER_02: Right.
31:15
SPEAKER_02: Okay, so the let's let's get this out of the way real quick because like I want to ask you like to expand on every single aspect of this.
31:24
SPEAKER_02: Like, I'm like, tell me the whole thing, but we can't do that on one podcast.
31:28
SPEAKER_02: Now you have a podcast.
31:29
SPEAKER_02: What's your show called?
31:31
SPEAKER_00: Uh it's uh the Business Freedom Podcast, and it's powered powered by real estate B School.
31:36
SPEAKER_02: Cool.
31:36
SPEAKER_02: Okay.
31:37
SPEAKER_02: And I I imagine you elaborate in your show, but obviously your business, real estate B School, you it is it like a coaching program that you know, if somebody's like, hey, I want to do this the right way, I don't want to just like duct tape all these little pieces together.
31:53
SPEAKER_02: I just want Lars and his team to show me how to do it.
31:56
SPEAKER_02: They come to you and you just like help them with it, correct?
32:01
SPEAKER_00: Yeah, and it's okay.
32:02
SPEAKER_00: Yeah, it's it's it's sort of ridiculous what what we do at this point.
32:06
SPEAKER_00: We've we've got, we're we're just in the process of launching a 12-week um like hand-holding uh, we're calling it, it's a sort of the the foundational tools uh to be able to build the the foundation properly.
32:23
SPEAKER_00: Um we're launching that in two weeks, so we're even adding more.
32:26
SPEAKER_00: It's it's our huge differentiator is the fact that we we will we will actually help you implement, install all these tools.
32:34
SPEAKER_00: The tools and systems are built.
32:36
SPEAKER_00: You just need to install them in your business at the right time, focus on the right things at the right time, live in 90 days at a time, you know, and pick one or two things that you're working on at a given time.
32:45
SPEAKER_00: And you stack those up.
32:46
SPEAKER_00: You know, I had a guy that did 32 transactions in 2014.
32:52
SPEAKER_00: Uh, the first intensive workshop he went to, uh, he wrote down hire a buyer agent was his one project.
32:59
SPEAKER_00: He closed 330 units last year.
33:03
SPEAKER_02: Damn.
33:04
SPEAKER_00: Yeah.
33:05
SPEAKER_00: And and and none of it, none of it is, I mean, he did the work.
33:08
SPEAKER_00: I didn't go in and do it for him.
33:10
SPEAKER_00: Um, but he just followed the followed the process.
33:13
SPEAKER_00: And we're on like the third evolution of the toolbox that he had access to.
33:18
SPEAKER_00: So um, yeah, it's just a step-by-step process.
33:21
SPEAKER_00: And, you know, you you you will have had to have achieved, you know, whatever the definition in your market is for top producing status.
33:31
SPEAKER_00: You know, it's not, it's business coaching.
33:33
SPEAKER_00: So if you can't figure out how to sell, you know, a certain number of homes in your market, then you're definitely not going to be able to do real estate B school.
33:42
SPEAKER_00: Um, although you can grab the toolbox for, you know, you can have all the tools for we've got we've got that level, which basically just an online program.
33:50
SPEAKER_02: Cool.
33:51
SPEAKER_02: Cool.
33:52
SPEAKER_02: Yeah, because I mean, I so many questions come up that I have, and I know there's no possible way to get to it all.
33:58
SPEAKER_02: And that's not fair to you, anyways.
33:59
SPEAKER_02: I mean, that's that's your business and that's very valuable information.
34:03
SPEAKER_02: Um, so realistatebeschool.com is where you can go to find out about that.
34:07
SPEAKER_02: I'm gonna be checking that out for sure, Lars.
34:09
SPEAKER_02: So it's not the last you'll hear from me.
34:11
SPEAKER_02: Um so I have some questions for you that so this has come up personally, and I know I've heard other agents say this too.
34:18
SPEAKER_02: Like when they start wrapping their head around uh building a team and and you know bringing more people in outside of just themselves, um there's this, and maybe maybe it's real, maybe it's not, but it's this this thought that, well, if I if I'm the head guy and you know, and I'm the rainmaker, so to speak, then everyone's gonna want to work with me.
34:43
SPEAKER_02: I can't hand them off to a buyer's agent or or whatever.
34:47
SPEAKER_02: They're they're all gonna work with me, so like I can't do it.
34:51
SPEAKER_02: Is that is that real?
34:52
SPEAKER_02: And I imagine it probably is to a certain extent.
34:55
SPEAKER_02: How do you how do you get around that?
34:58
SPEAKER_00: Yeah, I mean, I I haven't worked with a client since January 2012.
35:04
SPEAKER_00: And so if I look at the total, anywhere between three and four thousand families served, I only I only helped 220 of those.
35:13
SPEAKER_00: I think I added up my personal production.
35:16
SPEAKER_00: And every year I do a lot of I do a lot of business where people reach out to me.
35:21
SPEAKER_00: Uh, not only past clients, but you know, people that that are getting to know me.
35:26
SPEAKER_00: And um I just say that, you know, I'm the I'm the I sort of I sort of manage the team at this point, and I've got someone that's performing it at a way higher level than I've ever than I ever performed.
35:39
SPEAKER_00: And it's true, I've got two lead agents that, you know, each sold over 100 properties last year, and I've got a stronger team than I've ever had.
35:46
SPEAKER_00: So it's it's a journey.
35:48
SPEAKER_00: Um it comes with the commitment that the first step for a team leader is that I'm going to get out of buyers.
35:57
SPEAKER_00: I'm gonna get out of working with buyers by this, by this date.
36:01
SPEAKER_00: End of discussion.
36:02
SPEAKER_00: July 1st, 2019.
36:04
SPEAKER_00: I will not work with a buyer.
36:06
SPEAKER_00: In fact, I'm gonna hand off all of my buyers to other agents or you know, whatever that looks like for you.
36:13
SPEAKER_00: So that's the first step.
36:14
SPEAKER_00: That's not, you know, it's it's just not hard.
36:19
SPEAKER_00: Um, I mean, have I lost business because of it?
36:22
SPEAKER_00: I mean, I guess I I guess I have.
36:24
SPEAKER_00: I don't, I don't really know.
36:26
SPEAKER_00: Um you you have the ability.
36:28
SPEAKER_00: So I just have this belief that, you know, in my market, so I'm in Charlotte, it's a top 20 city.
36:35
SPEAKER_00: Um, you know, so it's not like a small market or a luxury market, it's just a regular average, you know, 250 to 275 price point.
36:43
SPEAKER_00: Uh in my market, um, I just think there's a market for for services, like for the job market, where you know, a showing agent in my market, it's about a 20,$20 to$25 an hour job.
36:57
SPEAKER_00: Buyer agents are probably$30 to$40 an hour, and listing agents are anywhere from you know$50 to$75 an hour.
37:07
SPEAKER_00: And that's just the reality of it.
37:10
SPEAKER_00: And I made the commitment to myself that I wanted to make minimum$250 an hour.
37:16
SPEAKER_00: So I just knew that I was losing money because I could actually put my time into things that are worth$250 an hour.
37:26
SPEAKER_00: If I can build a database and referral marketing system, and that thing can become, we'll do what, like I said,$1.5 million from a system that I built started building like whatever in 2010.
37:40
SPEAKER_00: You know, we've just improved upon it.
37:42
SPEAKER_00: And so I just know that I can always trade my hours out for higher, higher worth hours.
37:50
SPEAKER_00: And I take a lot of confidence in that.
37:52
SPEAKER_00: My number, I'm not hitting it, but my number's$1,000 an hour today.
37:56
SPEAKER_00: Where I know there are things that I can do that are worth$1,000 an hour.
38:00
SPEAKER_00: If I can get on stage, if I can do a podcast, if I can, you know, there's there's only like three or four things at this point that that really make my time worth that much money.
38:13
SPEAKER_00: Um, but I I had take a lot of comfort in that.
38:17
SPEAKER_00: And so I think there's only the the the thought is, you know, I guess to answer your question, it's it's just a really well, it's it's a good script.
38:27
SPEAKER_00: You know, were there appointments when I transitioned out where I said, hey, listen, I'm gonna bring, you know, I'm gonna bring an agent out.
38:33
SPEAKER_00: Um, you know, benefit to you is is that I'm gonna have, you know, Sharon come with me, and she's been with me for, you know, X number of years, and she's gonna sort of lead the the details, and I'll consult on the high level the the you know the pricing of the property and and you'll have 30 to 60 minutes into that, and they'll usually sign 90% of the time they will sign.
38:57
SPEAKER_00: You may lose one out of 10, but so you might have to go on some of those appointments, but you're not gonna be the one that's doing the 10 to 15 hours of work, you're doing an hour's worth of work.
39:07
SPEAKER_00: Sure.
39:08
SPEAKER_00: And the agent is paid accordingly.
39:10
SPEAKER_00: The scariest thing you'll have to do is put such a low commission value to something that agents honestly don't add a lot of value.
39:21
SPEAKER_00: You know, if it's my relationship or an inside sales agent sets the appointment, how much value do you think you're possibly adding to that transaction?
39:29
SPEAKER_00: You know, like really when you think about it, and sometimes our agents complain about it, but we we pay out 10% when the appointment's set for them.
39:39
SPEAKER_00: You know, it's it's 10% of$11,000.
39:42
SPEAKER_00: It's eleven hundred dollars for less than typically less than 10 hours worth of work.
39:48
SPEAKER_00: So you're getting paid about$110 an hour for that transaction.
39:52
SPEAKER_00: I feel good with that.
39:54
SPEAKER_00: Yeah, I feel I feel pretty good about that that pay structure for them.
39:59
SPEAKER_02: Nice.
40:00
SPEAKER_02: Okay, so uh and so you do commission splits with your agents and not an hourly rate, correct?
40:06
SPEAKER_02: With the licensed ones?
40:08
SPEAKER_00: Yeah, so we have we have uh one, two, three, like four sales positions on our team.
40:14
SPEAKER_00: We have inside uh sales, we have showing agents, buyers agents, and then what what we call lead agents, but they're basically just senior agents that can work buyers of of sellers that that they have.
40:29
SPEAKER_00: So they can double dip on once they get to a certain point.
40:33
SPEAKER_02: Um you use that to kind of incentivize them to reach a certain milestone or do a certain thing, and then they they're able to do more.
40:44
SPEAKER_00: Uh yeah, I mean you you can't list homes uh unless you're uh a year as a buyer agent first.
40:49
SPEAKER_00: And even then it it there's only if a position is available.
40:52
SPEAKER_00: So most of our team generated listing business go to our three our three lead agents.
40:58
unknown: Sure.
40:59
SPEAKER_00: And we and we pay splits accordingly.
41:01
SPEAKER_00: But to answer your question about um inside sales has a base, uh, a base salary component, and our showing agent has a base salary component.
41:09
SPEAKER_00: Um, and then they're they're bonused after that.
41:12
SPEAKER_00: And then our buyer agents 100% commission and our um lead agents are a hundred percent commission.
41:18
SPEAKER_00: And our buyer agents, when they're a buyer agent, they can set listing appointments.
41:22
SPEAKER_00: So they get they can get paid the commission as an inside salesperson on listing appointments that they set.
41:29
SPEAKER_00: Interesting.
41:29
SPEAKER_00: Okay.
41:30
SPEAKER_02: I can I can tell there's there's little differences in how you do things, but I could see how they would make a big difference in the long run because like man, the the research I've done into how to structure compensation for a team, like it's it it's simple, like really across the board, like you know, buyer's agent gets this split, listing specialist gets this split.
41:51
SPEAKER_02: And and that's it.
41:52
SPEAKER_02: And and so it sounds like you've I don't want to say complicated it, but you've you've added some complexity to it, which makes it incentivize them more and and just like I don't know.
42:04
SPEAKER_00: Um well you I wanna I want to make sure sure I'm clear on that because the the only incentive is for them to sell more.
42:12
SPEAKER_00: We don't have tiered um scenarios that they don't get paid more the longer they're with the team.
42:19
SPEAKER_00: They just they're able to to do more because they really appreciate the services we provide them and they're they're able to focus in on their 20% that's making them money because we take the 80% off of them.
42:31
SPEAKER_00: Um here's the question if you interview somebody or you talk to somebody and you want to sort of consider what they're doing with their team, is just ask them what their two questions, what their gross margin is, and how much of the GCI did they personally generate.
42:51
SPEAKER_00: And so, you know, I'm pretty open with with our numbers.
42:56
SPEAKER_00: You know, we were more than 70% gross margin last year, meaning we we paid less than 30% to our combined showing agents, inside sales, buyers agents, and lead agents.
43:10
SPEAKER_00: So all of our salespeople took less than 30% of our commission checks.
43:16
SPEAKER_00: That leaves us 70%, just over 70% to pay for marketing, for staff, and for overhead.
43:28
SPEAKER_00: And and I'm not in production.
43:32
SPEAKER_00: And so you just have to sort of get an idea of what model they're actually running.
43:38
SPEAKER_00: A lot of these teams are running closer to brokerage type profit numbers.
43:44
SPEAKER_00: You know, our goal is to hit, you know, thirty percent profit before taxes, even a little bit more without having to be in production and providing a service to clients that's above and beyond.
43:57
SPEAKER_00: You know, we we do c customer satisfaction interviews.
44:00
SPEAKER_00: Or surveys rather, uh Net Promoter Score, all of that stuff.
44:04
SPEAKER_00: So we're we're maintaining our service standard and we're still getting the kind of profit margins that we want.
44:13
SPEAKER_02: This is yeah, that it this is different than like the way you put stuff together, and I know I don't have all the details, but it's it's a lot different than I thought it was going to be.
44:24
SPEAKER_02: So this is surprising in a good way.
44:27
SPEAKER_02: And but what's cool about it is you know, the way that in my own head, the way that I always saw that you put a team together.
44:35
SPEAKER_02: Now when I start looking at these teams or hearing about they're not profitable, it's like, well, is that that can't really be the best system then?
44:42
SPEAKER_02: So then it makes me think there's a better way.
44:45
SPEAKER_02: Sounds like you found it.
44:46
SPEAKER_02: And and so that that's super interesting.
44:49
SPEAKER_00: Um and and this is one thing I was clear on from the early days when I first started my team was um what I called the the economic model, and now it's the rebs economic model.
44:59
SPEAKER_00: It didn't, you know, the real estate B school economic model, it didn't exist back then because there was no rebs.
45:04
SPEAKER_00: Um, but then also value-based commission splits.
45:07
SPEAKER_00: So we have a very particular way that we offer splits in a way that we explain the value that the agent brings to the transaction versus the value that the team provides.
45:17
SPEAKER_00: And it's it's all scripted, so it's not like it's a challenging conversation because this is the big hurdle.
45:23
SPEAKER_00: It's like, well, the only thing I could possibly offer these agents are uh a higher commission split.
45:29
SPEAKER_00: And that is a losing, a losing battle.
45:32
SPEAKER_00: You know, that there's another real estate coach who who teaches a model of 30% gross margin.
45:40
SPEAKER_00: So his goal is to pay out 70%.
45:45
SPEAKER_00: And just think about that.
45:46
SPEAKER_00: Like my goal is to pay out 30%, and my agents are are are making incredibly good money.
45:53
SPEAKER_00: Right.
45:54
SPEAKER_00: And there's a 40% swing in in that model that's being taught versus the model we're being taught, we're we're teaching.
46:00
SPEAKER_00: That's okay.
46:01
SPEAKER_00: So so put all that aside, which team do you think has a better shot at um at being the best provider of buyer and real estate, uh buyer and seller real estate services in the future?
46:15
SPEAKER_00: The one that has more margin to to really control the experience for buyers and sellers, or the one that's basically a brokerage and every agent does things the way that they want to do things?
46:25
SPEAKER_02: Yeah, definitely the former, for sure.
46:27
SPEAKER_00: Yeah.
46:27
SPEAKER_00: And so so like that that's another whole different conversation.
46:31
SPEAKER_00: Like, are you building something that's sustainable with all of the crazy changes that are going on in in the real estate market with uh offer pad, all the iBuyer programs, with the instant offers, the 1% listing, Redfin, Zillows coming, came physically into our market.
46:50
SPEAKER_00: Zillow did, like they have a physical you know location here.
46:54
SPEAKER_00: Um, you know, so it's it's really it's really making sure that you not only you build it on the right model, but a model that's going to be sustainable uh three to five years from now.
47:03
SPEAKER_00: You know, the the easy way is just to say, yeah, sure, I'll give you 90%.
47:07
SPEAKER_00: There's another team that does 200 million that uh gives away 90%, and they call themselves a team.
47:13
SPEAKER_00: And without the team leader's production, he's losing money.
47:17
SPEAKER_02: Right.
47:19
SPEAKER_02: This is such a paradigm shift for me, too, because I okay, so I started my career for the first two years.
47:25
SPEAKER_02: I was on a quote unquote team, 50-50 split.
47:29
SPEAKER_02: They paid for my signs, lockboxes, some marketing stuff, blah, blah, blah.
47:33
SPEAKER_02: Like, you know, real loose, real loose use of the word team.
47:38
SPEAKER_02: But they I got to go on listing appointments with them and you know, stuff like that.
47:42
SPEAKER_02: So, like in hindsight, it was educational.
47:46
SPEAKER_02: But like, then once I was able to get my own deals, like I'm like, I don't need you anymore.
47:51
SPEAKER_02: And and then I start thinking, why would I uh give up 50-50 uh 50% or more if you know if I can get my own deals, right?
48:00
SPEAKER_02: And so I it's hard not to think of how I would do things and what my perspective is, even though I know not everyone has the same perspective.
48:09
SPEAKER_02: So this is just it's it's a paradigm shift because I've always thought when I'm gonna when I start my team, because I hear about all these local teams that are just revolving doors.
48:19
SPEAKER_02: People come in, people go out all the time.
48:21
SPEAKER_02: They can't keep any agents long term, or some some of them can't keep agents for more than a couple months.
48:26
SPEAKER_02: And like the biggest teams in Salt Lake, like agents are in and out within a couple months.
48:31
SPEAKER_02: And so I'm like, from my perspective, because I just don't have the perspective that you guys have, is why don't I just make the, you know, offer more, like have smaller splits so that the agent makes more and then I'll attract everyone from those other teams.
48:46
SPEAKER_02: I'm hearing the opposite.
48:47
SPEAKER_02: And so this is crazy.
48:49
SPEAKER_00: Yeah, and and and one thing, so so the big difference, just take as you contemplate starting a team, if this is you, Dustin, or one of your listeners, as you're contemplating starting a team, take your mindset out completely out of real estate.
49:05
SPEAKER_00: The only reason you even think about splits is because you're a real estate agent.
49:10
SPEAKER_00: Right, exactly.
49:11
SPEAKER_00: It's not because you're thinking like, hey, listen, showing homes is fun.
49:19
SPEAKER_00: Um, there's no pressure.
49:21
SPEAKER_00: We've already secured the client.
49:23
SPEAKER_00: Like, how much would I get to need to pay someone to show homes?
49:26
SPEAKER_00: Like, okay, how much would I need to pay someone to convert a buyer that I convinced to come to my office with the presentation I trained them on, you know, in the office I pay the rent for?
49:39
SPEAKER_00: How much, how much do I really need to pay the buyer agent for that deal?
49:43
SPEAKER_00: You know, and and really put their skill.
49:46
SPEAKER_00: So that's the first point is that take your take your mind out of being a real estate agent.
49:50
SPEAKER_00: But then also, like, are am I am I building a business that is going to be the best provider of buyer and seller services?
49:56
SPEAKER_00: And when you're answering that question, it's just a different question.
50:00
SPEAKER_00: Like you're looking to bring this.
50:02
SPEAKER_00: The second part of my point is you're looking to bring the best skill set to bear in each of the major positions of the team.
50:08
SPEAKER_00: So, yes, you have to start small, you have to hire a kick-ass assistant, but then as you begin to hire that next hire, it may be a showing agent.
50:18
SPEAKER_00: A showing agent is different than uh a hunter buyer agent.
50:23
SPEAKER_00: Like a showing agent just has to have a good personality.
50:26
SPEAKER_00: They can't, you can't walk all over them, but so everyone on our team, you know, it's just like a sports team.
50:32
SPEAKER_00: If you put Cam Newton, you know, to kick field goals and and you put the kicker to to play quarterback, you will lose every game.
50:40
unknown: Right.
50:41
SPEAKER_00: You know, and and they're both equally as valuable.
50:44
SPEAKER_00: One probably gets paid a little bit more than the other, and their skill set may be a little bit more hard to find.
50:51
SPEAKER_00: But I think that mentality will have you owning a business three to five years from now that is is a rock solid business and that's built on a culture that people actually want to be around.
51:02
SPEAKER_00: Sure.
51:03
SPEAKER_02: And that's the goal, you know, that to have an actual business that is not reliant upon you, that's systemized.
51:13
SPEAKER_02: And I mean, that's that's the goal, or it should be.
51:16
SPEAKER_02: Um, that's my goal, you know.
51:18
SPEAKER_02: Um, you mentioned you work what, one day a week and have crazy, you know, uh crazy production going on that isn't reliant on you.
51:26
SPEAKER_02: So I appreciate this today, Lars, because it's such a paradigm shift for me personally, um, because it it really flies in the face of so much that I've that I've heard over the years of the the quote unquote right way to build a team.
51:39
SPEAKER_02: And so wow.
51:41
SPEAKER_02: Yeah.
51:42
SPEAKER_02: Um a random question.
51:45
SPEAKER_02: Do you excuse me, do you do personality tests with everyone you bring on board?
51:50
SPEAKER_00: Yeah, so we, I mean, the the biggest the biggest challenge you'll have as as a a team uh a team leader, uh a business owner is is in the area of people.
52:02
SPEAKER_00: And you know, yes, we do, and I'll tell you a little bit more about it, but my best advice around people, and this is for you and anyone else that is starting a team or they've been failing in in acquiring talent, is or keeping talent, um, is that generally we're like the visionary types that we bring a lot of positivity into our everyday, and that and that gives us the thought that I can totally do this.
52:28
SPEAKER_00: Like it's we bring that same mindset when we're sitting in front of a person and we see potential.
52:34
SPEAKER_00: We're we hire people that have potential and they haven't demonstrated any patterns of success.
52:40
SPEAKER_00: So my uh my my pastor uh did a sermon uh once and he he titled the little snippet relationship advice.
52:49
SPEAKER_00: And he talked about like like ladies, like you look for potential in these men that have like credit card debt and they're porn addicts and they kick their dog and they're overweight.
53:02
SPEAKER_00: And like, what are you you're not looking for patterns?
53:06
SPEAKER_00: Like the patterns raise all the red flags that this person is not gonna perform well in your organization, yet somehow we're like, okay, you told me you're gonna work hard, you told me you're gonna follow scripts, you told me you're gonna, you know, do these things and you want to make uh six-figure income.
53:23
SPEAKER_00: And but I can't I can't find any speck of a pattern that that really proves that.
53:28
SPEAKER_00: So that's my best advice is look for patterns, um, not potential.
53:32
SPEAKER_00: And then, yeah, we do, I mean, we definitely go deep on disk, um, the Abelson version of the disk and and the values, and we validate that.
53:41
SPEAKER_00: Um, we're also part of Keller Williams, so we do the KPA and we go deep on that process.
53:46
SPEAKER_00: We do a working interview where they come in for three hours and they actually we teach them a single script and they get on the phone and do that script for three hours.
53:54
SPEAKER_00: Um, then we do a um a group interview where the team, you know, five team members get to interview them.
54:00
SPEAKER_00: We do a defense interview where everyone gets together and and really comes together.
54:05
SPEAKER_00: Does this person fit the core values?
54:06
SPEAKER_00: Can they do the job at a high level?
54:08
SPEAKER_00: And so we've we've learned that we talk about systems, the the most valuable system, and we have it in real estate B School, but the most valuable system you will build is your your system for finding, hiring, training, and holding that person, you know, accountable to a result that they also want to achieve.
54:30
SPEAKER_00: So I know I that was a long-winded answer, but um that is the holy grail of of building a business is figuring out the people, surrounding yourself with people that want to be there because you're building something bigger than you.
54:41
SPEAKER_02: No, that's helpful though, because I mean, building a team when you don't have one, there's a lot to do, you know, a lot of a lot of stuff to do, a lot of things to put in place, a lot of learning, um, what you know, the right way to do stuff.
54:56
SPEAKER_02: So all of this is just giving giving good perspective and filling in some of those missing pieces.
55:00
SPEAKER_02: If you guys are where I'm at, where you're ready to start at least considering moving towards building a team, removing yourself from the equation, making it a true business, um, or you just want to do more, you just want to help help more people and you know serve more families, like you said, Lars, uh you know, go to go to realestatebschool.com and and you've got the roadmap.
55:25
SPEAKER_02: I'm definitely gonna be jumping over there and studying up and and seeing what you you know the way you recommend to do this stuff, because you've definitely shifted my my paradigm today.
55:35
SPEAKER_02: Didn't really expect that.
55:37
SPEAKER_02: I I didn't expect to be that different from everything that I've that I've learned about you know the right way to do a team.
55:44
SPEAKER_02: So so that's cool.
55:45
SPEAKER_02: Um I like that.
55:47
SPEAKER_02: Um Lars, is there anything we haven't covered yet that you think anyone in my spot or you know, a solo agent that they're they're just starting to think about how to how to grow past just their own production?
55:59
SPEAKER_02: Anything we didn't cover that you think we should?
56:02
SPEAKER_00: No, I guess the last thing I'll say is just, you know, um there's so many things I I want to cover with with someone that's gonna start down this path, but um the one thing that that will give you a lot of um comfort is that you know there's there's no rush to go out and build this thing, and and and you'll you'll make more mistakes by trying to rush it than if you just decided, you know.
56:28
SPEAKER_00: I'll give you a quick story.
56:30
SPEAKER_00: We had a new agent join our team, and um he had heard about me before he met me because I I I'm online and stuff, and and I go in on Tuesdays and he came in and said, Hey, hey, I'm it's great to meet you.
56:42
SPEAKER_00: Like, what's one piece of advice you would give me?
56:44
SPEAKER_00: Without hesitation, I said, give it seven years.
56:48
SPEAKER_00: And he's like, What you could just tell, he was like, That's the worst advice you could ever tell somebody.
56:54
SPEAKER_00: And he only lasted six months on the team.
56:56
SPEAKER_00: Um but just to calibrate your mindset around, you know, take your time building this thing out.
57:05
SPEAKER_00: You know, we've had people do it in three or four years, go from 32 sides to 330 sides, and I've got dozens of those stories.
57:12
SPEAKER_00: And it doesn't have to be that quick.
57:14
SPEAKER_00: There's sacrifice in going too fast, mistakes can be made.
57:18
SPEAKER_00: You know, give it, give it five years, you know, where like this year, this is the year I'm gonna hire an assistant and get them super productive and teach them how to build systems or install systems.
57:29
SPEAKER_00: Year two is gonna be when I I figure out how to uh you know acquire buyer agent talent.
57:34
SPEAKER_00: You know, year three is gonna when I hire my, you know, I get out of buyers because I've got a core team there.
57:41
SPEAKER_00: You know, year four is when I hire the second admin hire, you know, and I split up that side of the business, and that's all I focus on.
57:47
SPEAKER_00: All the while you're building your database.
57:49
SPEAKER_00: All you know, no, so it's just there's there's really no rush.
57:53
SPEAKER_00: It just creates a lot of stress to rush yourself through this process.
57:57
SPEAKER_00: And the journey is not like it's unknown at this point.
57:59
SPEAKER_00: Um, I think there's a lot of just complete bullshit that is being taught in our industry from guys that you know they they they tout the the number of transactions, but I I know a lot of them are in production, and I I can't imagine they're in production because they you know because they like you know managing a team in addition to working with buyers and sellers.
58:25
SPEAKER_00: And I know teams that are doing any I know a guy that did two million that lost money last year.
58:31
SPEAKER_00: I know a guy that did over five million um that's losing money.
58:35
SPEAKER_00: And so that's crazy.
58:37
SPEAKER_00: It's it's crazy, but nobody's talking about it, you know.
58:40
SPEAKER_00: So if you're gonna do it, make sure you start at the right point, and that's just with a model that is is sound, and you stick to the financial model no matter how long it takes you.
58:52
SPEAKER_00: Don't don't don't chase the growth just because you can you can get that top line up because I know a guy that uh did three million uh and he only profited 200,000 and he did 500,000 of production himself.
59:07
SPEAKER_00: And and he he joined real estate B School, and we've got to dismantle that now.
59:12
SPEAKER_00: So, you know, do it start the right way so we don't have to come in, you know, three years from now, and we have to come in and dismantle what you built because it's not profitable and it's super stressful.
59:22
SPEAKER_02: Yes, and that's why I'm I'm kind of glad that I haven't started down that road because I would have done, I would have done this wrong for sure.
59:30
SPEAKER_02: And then you've like you said, you've got to you've got to dismantle it and then start, you know, building the right way.
59:36
SPEAKER_02: So anyone listening, myself included, if you're if you have not started down the road of building a team, but you've kind of been kicking your ass, you know, like, oh, you know, everyone else is doing it, why aren't I?
59:47
SPEAKER_02: You know, well, it's probably good.
59:49
SPEAKER_02: Probably good.
59:50
SPEAKER_02: So now you have a chance to do it right.
59:51
SPEAKER_02: So Lars, thank you so much, man.
59:53
SPEAKER_02: Lars, Lars Hedenborg with realestatebschool.com.
59:58
SPEAKER_02: And um, I can't thank you enough.
1:00:00
SPEAKER_02: Definitely open my eyes to a whole new way of doing things.
1:00:03
SPEAKER_02: And now I just need to go get the details on how to do it over at your website and uh real estate be school.
1:00:08
SPEAKER_02: So Lars, thanks so much, man.
1:00:10
SPEAKER_02: Um we will be in touch.
1:00:12
SPEAKER_00: Yeah, Dustin, keep doing this uh this good work, uh just spreading uh spreading the real deal about what it takes to not only be a top producing agent, but just to kind of scale your business beyond yourself.
1:00:24
SPEAKER_00: So I appreciate you as well.
1:00:26
SPEAKER_02: Absolutely.
1:00:26
SPEAKER_02: And and aside from your website, how can they find you?
1:00:29
SPEAKER_02: How can they connect with you on social media and elsewhere?
1:00:32
SPEAKER_00: Uh I mean, we so we only so realestatebschool.com is is the way in, uh, and you'll figure out on there that there's only one one step.
1:00:40
SPEAKER_00: It's to get on the phone with us.
1:00:42
SPEAKER_00: Um and it's either a fit or it's not.
1:00:44
SPEAKER_00: Um and if if you're not a fit for the coaching program, that we have an online program.
1:00:48
SPEAKER_00: So realestatebschool.com, we have a a public and I do a lot of content in it, uh, Facebook group called um Business Growth Network, powered by real estate B School.
1:01:01
SPEAKER_00: So go to Facebook.
1:01:02
SPEAKER_00: I I go live in there every Monday morning and I teach.
1:01:06
SPEAKER_00: Um, and so it's it's it's a it's a cool group and there's no there's no real agenda.
1:01:11
SPEAKER_00: There's probably 99% of the folks in there will never, you know, uh have a business relationship with us, but uh business growth network uh powered by real estate B School on Facebook.
1:01:20
SPEAKER_00: That that group will give you a lot of a lot of free resources.
1:01:24
SPEAKER_02: Perfect.
1:01:25
SPEAKER_02: And we'll have the links for all of this in the show notes at MassiveAgent Podcast.com.
1:01:29
SPEAKER_02: Lars, thanks so much, man.
1:01:31
SPEAKER_02: Good stuff.
1:01:31
SPEAKER_02: Yeah, be good, brother.
1:01:33
SPEAKER_02: Absolutely incredible, incredible stuff.
1:01:35
SPEAKER_02: Um, I'm so I'm glad, I'm really glad that I haven't started building a team yet because a lot of that stuff we just heard is really important and can make or break the success or failure of your team.
1:01:47
SPEAKER_02: So if you guys have not built a team yet and you're at that point, um I'm glad you were able to hear that.
1:01:53
SPEAKER_02: Really good stuff.
1:01:53
SPEAKER_02: Real estatebeschool.com.
1:01:56
SPEAKER_02: Thank you, Lars Hedenberg.
1:01:57
SPEAKER_02: That was incredible.
1:01:58
SPEAKER_02: All right.
1:01:58
SPEAKER_02: So I promised at the beginning that we'd be doing our book of the week.
1:02:01
SPEAKER_02: Uh I want to thank today's sponsor of the show, Audible.
1:02:05
SPEAKER_02: If you guys go right now to MassiveAgent Podcast.com slash free book, you can get Can't Hurt Me by David Goggins 100% for free.
1:02:15
SPEAKER_02: If you're a br if you're a new Audible customer, this is uh unfortunately, like if you're already an Audible customer, they can't, you know, this is only for new people, but MassiveAgent Podcast.com slash free book, you get a 30-day free trial of Audible and a free audiobook.
1:02:28
SPEAKER_02: And here's what's awesome.
1:02:30
SPEAKER_02: Even if you cancel that trial, they let you keep the audiobook.
1:02:33
SPEAKER_02: So the book of the week is called Can't Hurt Me by David Goggins.
1:02:37
SPEAKER_02: It's one of the bestsellers out there.
1:02:39
SPEAKER_02: You see it on the New York Times bestseller list.
1:02:41
SPEAKER_02: Like it's it's everywhere.
1:02:43
SPEAKER_02: It's um and it's for mindset.
1:02:45
SPEAKER_02: Okay.
1:02:46
SPEAKER_02: This guy is one of the toughest bastards on the planet, uh physically, mentally, crazy, all right?
1:02:51
SPEAKER_02: But his story is unbelievable because he didn't used to be that guy.
1:02:56
SPEAKER_02: He had a terrible, abusive childhood.
1:02:58
SPEAKER_02: Then he was fat, he was out of shape, he was lazy, and now he goes to now he like runs over a hundred miles at a time, like a hundred miles straight.
1:03:08
SPEAKER_02: Um, this guy is insane.
1:03:10
SPEAKER_02: He's a former Navy SEAL.
1:03:11
SPEAKER_02: I I he first came on my radar on the Joe Rogan podcast.
1:03:15
SPEAKER_02: I listened to to the interview with him.
1:03:17
SPEAKER_02: He's just, he's absolutely crazy.
1:03:19
SPEAKER_02: But uh and here's his mantra.
1:03:22
SPEAKER_02: If it doesn't suck, I don't do it.
1:03:23
SPEAKER_02: Like he he seeks out stuff that sucks because it makes him tougher.
1:03:28
SPEAKER_02: And and he distills everything down into this one book.
1:03:31
SPEAKER_02: It's really, a really good book.
1:03:33
SPEAKER_02: I'm I'm uh I'm probably like an hour or so into it.
1:03:36
SPEAKER_02: And I I'm telling you guys, this is an amazing book.
1:03:39
SPEAKER_02: It's called Can't Hurt Me by David Goggins.
1:03:41
SPEAKER_02: Whether you use the free audible uh audiobook or you just go get it yourself or get it from the library or whatever, this is a great book, so check that out.
1:03:49
SPEAKER_02: Guys, thank you for listening to the show.
1:03:51
SPEAKER_02: Make sure if you if you like this show and you want to and you don't want to have to remember each week to go find the new episode, please subscribe, especially in iTunes, aka Apple Podcast.
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1:04:18
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1:04:24
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1:04:32
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1:04:35
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1:04:39
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1:05:23
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1:05:42
SPEAKER_02: You are I'm telling you, I created what didn't exist back when I was trying to learn this shit.
1:05:48
SPEAKER_02: When I was trying to learn how to create, you know, take Legion into my own hands.
1:05:53
SPEAKER_02: I had to like duct tape it together from a bunch of different sources.
1:05:56
SPEAKER_02: So I just went out and created a platform that just gives it to you and then provides you the training to become a master.
1:06:01
SPEAKER_02: So so six months, nine months down the road, maybe three months down the road, you just don't need us anymore.
1:06:06
SPEAKER_02: That's the goal.
1:06:07
SPEAKER_02: We don't want you to be a long-term customer.
1:06:09
SPEAKER_02: We really don't.
1:06:10
SPEAKER_02: MassiveAgen Society.com, and you'll get all the information over there.
1:06:15
SPEAKER_02: All right, guys, we are a proud, proud founding member of the Industry Syndicate Media Network.
1:06:20
SPEAKER_02: We are real estate's first media network.
1:06:22
SPEAKER_02: We have a ton of great podcasts and flash briefings and video shows similar to this one, and discover them over at industry syndicate.com.
1:06:30
SPEAKER_02: Have a great weekend.
1:06:31
SPEAKER_02: Go sell some homes and close some loans.
1:06:34
SPEAKER_02: Have a great, great weekend.