Latest / This Week in DFW Real Estate / The RE/MAX Takeover: Why Real Just Bought a 53-Year-Old Brand

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The RE/MAX Takeover: Why Real Just Bought a 53-Year-Old Brand · This Week in DFW Real Estate

0:00
Speaker 1: I mean honestly, and I don't mean to be a
0:02
Speaker 1: jerk about this. It's just a very honest observation. I
0:04
Speaker 1: don't know what real estate agents think about this. After
0:07
Speaker 1: reading all their Facebook popes. It's mostly word mumble nonsense,
0:11
Speaker 1: and a lot of them start with a lot of
0:13
Speaker 1: people have been asking me about I'm going to tell
0:15
Speaker 1: you right now when you're Facebook postpartist ares so that
0:17
Speaker 1: I already know a lot of people have not been
0:19
Speaker 1: asking you about it.
0:20
Speaker 2: Why if I'm a franchise owner Number one, am I
0:24
Speaker 2: upset at this?
0:26
Speaker 3: Possibly?
0:27
Speaker 2: I mean if I put, if I put my blood, sweat, tears,
0:30
Speaker 2: and probably a lot of money into the franchise agreements,
0:32
Speaker 2: the down payment, the office is the staff. And I
0:36
Speaker 2: was also fighting against losing my agency to these revenue
0:39
Speaker 2: sharing cloud brokerages, and then I get purchased by a
0:42
Speaker 2: cloud revenue sharing cloud brokerage. I don't know how I
0:45
Speaker 2: would be feeling right now.
0:46
Speaker 1: Honestly, you're you're not merging them in right away. You're
0:49
Speaker 1: keeping Remax the brand intact. My prediction is that will
0:53
Speaker 1: change over the next five years.
0:54
Speaker 3: By the way, I.
0:56
Speaker 1: Don't mean to be a downer, but I think the
0:59
Speaker 1: Remax brand will be dissolved eventually.
1:02
Speaker 3: GF churn it up.
1:07
Speaker 4: This week at DFILM Your Real Estate.
1:13
Speaker 5: A weekly podcast too for.
1:15
Speaker 4: Agents who actually get paid, parking moves, listing heat, clothing streets,
1:19
Speaker 4: DFIM way too.
1:26
Speaker 3: Let's say, Brian, what is nineteen seventy three mean to you?
1:30
Speaker 3: A lot?
1:33
Speaker 5: The end of the Vietnam War?
1:35
Speaker 1: I talk about that way too much on these podcasts.
1:38
Speaker 1: I'm sorry. Good music And if I remember correctly, that's
1:45
Speaker 1: when Remax was founded.
1:46
Speaker 3: That's what I was told.
1:47
Speaker 2: Well, yeah, no, I mean fifty three years in business,
1:51
Speaker 2: one hundred and forty five thousand agents, hundred and twenty
1:54
Speaker 2: across one hundred and twenty countries. You know, they have
1:56
Speaker 2: franchises in every market, you know, and it's one of
1:59
Speaker 2: the most recognizable brands in history. And you know, over
2:03
Speaker 2: the past three weeks you're seeing and hearing just.
2:07
Speaker 3: Mergers left and right.
2:09
Speaker 2: That first domino to fall because we've been gone for
2:12
Speaker 2: the last three weeks.
2:13
Speaker 1: We've been gone for the last three weeks. We've had
2:14
Speaker 1: some stuff happen. Everybody's had a lot of life going on.
2:17
Speaker 1: We're happy to be back. We got to get caught
2:19
Speaker 1: up on all the big news. It feels like it's
2:22
Speaker 1: been about six years of big news in this business
2:25
Speaker 1: and this is just the latest. Another big merger and
2:27
Speaker 1: two more big mergers and acquisitions that we're.
2:30
Speaker 2: Going to talk about to Yeah so, I mean, obviously
2:33
Speaker 2: Remax got bought by Reel and all the experts that
2:39
Speaker 2: that same day and the next Gay came back. Every
2:41
Speaker 2: single expert, there's so many real estate agents that are
2:44
Speaker 2: business buying mergers and acquisition experts, stock experts that just
2:51
Speaker 2: says it's either a great deal or it's a really
2:54
Speaker 2: really bad deal.
2:56
Speaker 1: It's uh man, do you ever think chat GBTG gets
2:59
Speaker 1: tired of being asked the same question every time I
3:03
Speaker 1: see a Facebook post. It's like, write me a proast
3:07
Speaker 1: about the Remax real merger. That makes me sound like
3:10
Speaker 1: I know what I'm talking about, and use as many
3:13
Speaker 1: M dashes as you possibly can so people definitely know
3:16
Speaker 1: I wrote it.
3:18
Speaker 5: Yeah, so a lot of hot sports opinions about this.
3:21
Speaker 1: We're going to dive into it, our thoughts, and I
3:23
Speaker 1: think what it means maybe for the industry, hopefully I
3:25
Speaker 1: have a much more interesting conversation than most people's Facebook
3:28
Speaker 1: posts have been about it. I think what's most interesting
3:31
Speaker 1: about this conversation is how quickly some of the largest
3:36
Speaker 1: players in the real estate industry have scaled their businesses
3:40
Speaker 1: the most. I think the most interesting thing about this
3:42
Speaker 1: merger is that Real is a twelve year old company
3:46
Speaker 1: and they were not nearly as big as Remax from
3:49
Speaker 1: an agent count standpoint, and they required Remax for thirty
3:52
Speaker 1: eight percent below of their stock value just three years ago.
3:56
Speaker 1: So obviously not just Remax. Most residential real estate companies
4:01
Speaker 1: that are publicly traded have been on a downslope since
4:03
Speaker 1: twenty twenty two. That's no news, but it's a very
4:07
Speaker 1: interesting story in regards to the size of the company
4:12
Speaker 1: that is on the acquisition end of the merger. You
4:16
Speaker 1: would not think if you looked in any other industry
4:19
Speaker 1: that a company that's been around for fifty three years
4:23
Speaker 1: that has one hundred and forty thousand licensees worldwide is
4:27
Speaker 1: the type of staying power that Remax has. If you
4:31
Speaker 1: drew a parallel to any other industry, you'd think that
4:33
Speaker 1: Remax would be buying Real correct.
4:36
Speaker 2: Yeah, you don't see the smaller quote unquote smaller companies
4:39
Speaker 2: buying the larger ones.
4:40
Speaker 1: That is an interesting conversation in itself. I think a
4:43
Speaker 1: lot of what people have been posting about on Facebook
4:45
Speaker 1: and all these sorts of things or whatever chat GPT
4:47
Speaker 1: has been writing for them has been different, and I
4:52
Speaker 1: haven't I haven't seen many people having that conversation. What
4:55
Speaker 1: does that say about where the market? Since the market,
4:59
Speaker 1: what does that say about the industry is headed? When
5:02
Speaker 1: the mergers or acquisitions aren't just happening, they're happening in
5:06
Speaker 1: the way that you may think would be the reverse.
5:09
Speaker 1: The big dogs are not buying up the up and
5:11
Speaker 1: coming disruptors. If you look at tech, for example, nobody's
5:15
Speaker 1: buying Facebook. Facebook swallows up other up and coming companies.
5:20
Speaker 1: That's how they end up with Instagram and those types
5:23
Speaker 1: of things. That usually is par for the course and
5:27
Speaker 1: mergers and acquisitions. Real estate seems to be going the
5:29
Speaker 1: other way right now, where disruptors are getting the power
5:33
Speaker 1: to buy or require some of the oldest, biggest brands
5:37
Speaker 1: in the business.
5:38
Speaker 5: That's very interesting.
5:39
Speaker 3: I've got two I've got two thoughts on it.
5:41
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Speaker 2: that side of the world. So the two thoughts I
7:36
Speaker 2: had about kind of this real remax thing is that,
7:41
Speaker 2: First off, why in our in the real estate industry,
7:44
Speaker 2: I mean, we we do see compass buying everything up,
7:47
Speaker 2: but it's it makes huge, a huge, huge splash when
7:50
Speaker 2: come like when another brokerage buys another one, sure versus
7:54
Speaker 2: you know, Facebook bought Oculus, Facebook bought Instagram. You know
7:57
Speaker 2: you you see some of these other these other company,
8:00
Speaker 2: and he's getting brought up. I don't think, no, they
8:02
Speaker 2: don't own Snap. I think they're still They're still out there.
8:06
Speaker 2: I believe so. But you saw, like in the past,
8:10
Speaker 2: you saw, you know, Blockbuster passed on by Netflix.
8:14
Speaker 3: That that's it.
8:14
Speaker 2: There's stories and there's case studies that you know, explain
8:19
Speaker 2: and break that entire process down. And that's why Netflix
8:23
Speaker 2: is as big as as it is today because if
8:25
Speaker 2: Blockbuster would have built, you know, would have purchased that
8:28
Speaker 2: probably wouldn't be the Netflix that we see today.
8:31
Speaker 1: No, no, no, nowhere close. It would have probably had
8:32
Speaker 1: an entirely different business model. Actually, So let's break this down, Jesse.
8:36
Speaker 1: We had a side by side of the other tab
8:38
Speaker 1: that I kind of really was interested in. So Real
8:42
Speaker 1: was at thirty three five hundred plus agents, which is
8:46
Speaker 1: one hundred ninety four percent increase in the last two years.
8:50
Speaker 1: In that same not in the same time, in the
8:51
Speaker 1: last four years, Remax Stateside had declined from eighty five
8:57
Speaker 1: thousand to about forty five thousand agents. So outside of
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Speaker 1: mergers and acquisitions, Like the mergers and acquisition is only
9:03
Speaker 1: the story because because it actually happened, but the transfer
9:07
Speaker 1: of licenses away from the REMAX model has been happening
9:10
Speaker 1: for four years now. Why is real growing so much
9:13
Speaker 1: and why was REMAX shrinking so much?
9:16
Speaker 2: So I'd made a You can go to our YouTube
9:19
Speaker 2: page and see the short that I made about about
9:23
Speaker 2: the thought process behind this. Remax used to Remax was
9:27
Speaker 2: the big believer that the brand was the reason why
9:31
Speaker 2: the agent was successfure and so we talk about models, right,
9:36
Speaker 2: and that model worked for that time. But what it did.
9:42
Speaker 2: What it did do is it put the agent, who
9:44
Speaker 2: was the main driver of business in the first place,
9:47
Speaker 2: in the passenger seat. And so as we evolved, we
9:50
Speaker 2: had Keller Williams come along. Keller Williams started to you know,
9:54
Speaker 2: in the very beginning, they were the underdogs. They offered
9:56
Speaker 2: profit share, they offered a capping commission model, and you
10:00
Speaker 2: saw that they were really looking at the agent first,
10:03
Speaker 2: agent centric first model, you know. And as Keller Williams
10:08
Speaker 2: became the dominant side, then you start to see the
10:11
Speaker 2: spinoffs and in my belief system, and correct me if
10:16
Speaker 2: you think differently, Brian or anybody else that watched this
10:18
Speaker 2: in the comments on our YouTube channel or in our
10:20
Speaker 2: Facebook group, the DFW realt or Facebook group that we
10:23
Speaker 2: have is that the spinoffs typically take the best pieces
10:31
Speaker 2: of the brokerage that's dominant that time and they improve it.
10:36
Speaker 2: So we're seeing an improved model breakout every single time
10:41
Speaker 2: that we see a spinoff that actually gains momentum.
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Speaker 1: Well, I don't think that we've seen a new brokerage
10:48
Speaker 1: gain a lot of a new brokerage that's maybe gained
10:53
Speaker 1: a lot of momentum in the last half decade or
10:56
Speaker 1: so that doesn't have some of the same elements, like
11:02
Speaker 1: the ability to build ancillary revenue for through recruiting, whether
11:06
Speaker 1: that's revenue share or bonuses or something like that. I
11:08
Speaker 1: think that they all share some commonalities, So I believe
11:12
Speaker 1: there are yes. I think you're right one hundred percent
11:16
Speaker 1: that the most attractive pieces of an old model will
11:20
Speaker 1: be the foundation of a new model. I think that's
11:22
Speaker 1: where you start in every industry, whether it's insurance, real estate,
11:27
Speaker 1: or automotive sales. You take what's working, and then you
11:30
Speaker 1: try to figure out what is and work and get
11:32
Speaker 1: rid of that and make what is working even better.
11:34
Speaker 1: So I think we're going to continue to see those
11:36
Speaker 1: commonalities in even newer models. In newer brokerages because they
11:42
Speaker 1: continue to be I mean, it's an interesting kind of
11:45
Speaker 1: time in real estate right now because we're seeing a
11:47
Speaker 1: lot of licenses being shifted around, but we're also still
11:50
Speaker 1: seeing like a lot of companies popping up. They're like,
11:52
Speaker 1: there are a lot of companies popping up trying to
11:54
Speaker 1: take market share, which is really interesting. So what I'm
11:58
Speaker 1: also interested in that I don't know much about, and
12:01
Speaker 1: that's why I love doing this podcast as.
12:02
Speaker 5: We can kind of learn along together. Real stands.
12:08
Speaker 1: I say, Real really markets its technology pieces as well,
12:12
Speaker 1: and its technology offerings is AI platform and in that
12:16
Speaker 1: as well, I wonder how much of the growth of
12:21
Speaker 1: some of the players that are taking a lot of
12:25
Speaker 1: market share right now is driven by agents feeling like
12:29
Speaker 1: they have the opportunity to continue to grow the community
12:32
Speaker 1: and make ancillary revenue through recruiting and things like that,
12:35
Speaker 1: building their downline, and how much of it is an
12:38
Speaker 1: attraction to what they feel is technology that is more
12:43
Speaker 1: cutting edge and is keeping up with where the tech
12:45
Speaker 1: industry is going.
12:48
Speaker 3: It's a great question.
12:49
Speaker 2: I mean, I mean, I look at this in a
12:52
Speaker 2: everyone talks about their platform being better, and I think
12:56
Speaker 2: that I think that's the I kind of use it
12:59
Speaker 2: as the same old you know thought process of which
13:02
Speaker 2: CRM is the better one, right right, So, I mean,
13:05
Speaker 2: you know, I hear about Reel's platform and AI I
13:09
Speaker 2: hear about you know, compasses, CEOs kind of tech stack
13:12
Speaker 2: and how great that is, you know, and then you
13:15
Speaker 2: then you hear everyone that leaves and they're like, it's awful, this,
13:18
Speaker 2: this and this right, so so you know, there's always good.
13:21
Speaker 3: You're always gonna have the homers.
13:23
Speaker 2: And the way that I look at this is is
13:26
Speaker 2: first and foremost is that you know, most real estate
13:29
Speaker 2: agents look at this in a in a maybe not
13:33
Speaker 2: in a business sense. They're looking at it as a
13:34
Speaker 2: small business owner where they're like, you know, REEL has
13:37
Speaker 2: now taken on I think they paid what eight hundred
13:40
Speaker 2: million dollars for what was it there?
13:42
Speaker 3: Yeah, somewhere around eight hundred million.
13:44
Speaker 2: They're taking on debt to do so, and people just
13:47
Speaker 2: don't understand at a at a higher level, how this
13:52
Speaker 2: how this works and operates, because you know, Reel was
13:55
Speaker 2: already I believe that REEL was already losing money on
13:58
Speaker 2: their on their when they were using you know, doing
14:00
Speaker 2: their quarterlies. They they weren't cash flow positive.
14:04
Speaker 5: They were the revenue has increased a ton year over year,
14:08
Speaker 5: But yeah, I think you may be right.
14:09
Speaker 2: Yeah, there's still not there's still not in that positive
14:11
Speaker 2: cash flow yet. So what what I see this as
14:15
Speaker 2: as it's a it's an attempt to gain market share.
14:18
Speaker 2: You now have agents, you now have one hundred and
14:21
Speaker 2: forty five thousand agents that you get to bring into
14:24
Speaker 2: your ecosystem. They don't, they're not joining as of right now.
14:28
Speaker 2: Remax is not merging in. It's a separate entity. Everything's
14:33
Speaker 2: going to pretty much run, you know, the same way
14:35
Speaker 2: as it did. Sure, I'm sure there's going to be
14:37
Speaker 2: some efficiencies that they can bring into REMAX just to
14:41
Speaker 2: help scale it and reduce operating expenses. But where I
14:45
Speaker 2: see this is is that Real has Real does. It
14:49
Speaker 2: has done a great job on their ancillary businesses. So
14:52
Speaker 2: they've got you know, their their title, their mortgage there,
14:56
Speaker 2: They've got they've got their real wallet that they get
15:01
Speaker 2: paid from that or they can hold money in it.
15:04
Speaker 2: And the Real as a brokerage is earning interest off
15:07
Speaker 2: the deposits that are in that Real wallet.
15:11
Speaker 1: So what you're saying, if I hear you correctly, is
15:14
Speaker 1: that some of The attraction for these big broke these
15:20
Speaker 1: brokerags that are buying is not just licenses. It's all
15:23
Speaker 1: the ancillarias that come with transactions and having licenses under
15:27
Speaker 1: your brokerage.
15:28
Speaker 5: Right, you offer them a real wallet. Now you're making
15:30
Speaker 5: interest on the deposits.
15:31
Speaker 1: Right, you bring on more licenses that are doing more transaction,
15:34
Speaker 1: you sell more ancillary services. Right, the brokerage of the
15:37
Speaker 1: future makes way less money off of commission splits.
15:40
Speaker 3: So that's what I was going to say, is that
15:42
Speaker 3: the brokerage.
15:43
Speaker 2: While the brokerage right now, their majority of their profit
15:47
Speaker 2: is coming from the commission side, the agent's transactions. What
15:51
Speaker 2: they're doing over on this side of the wheel is
15:53
Speaker 2: that is that they're trying to hook their ancillaries in
15:57
Speaker 2: at a much deeper level, which those companies try to do.
16:01
Speaker 2: They I just don't think that they're they haven't been
16:04
Speaker 2: that successful yet. Where where my belief And I'm not
16:07
Speaker 2: with reeal by the way, full disclosure, I'm not with Real,
16:09
Speaker 2: not with Remax. And you know what, what I see,
16:13
Speaker 2: what I think is cool as I'm analyzing this, is
16:16
Speaker 2: that their real wallet, what it does is it's it's
16:21
Speaker 2: it tracks their earnings it manages transactions, they can access
16:24
Speaker 2: the revenue, share their stocks, It can move money faster
16:28
Speaker 2: for them, they can receive commission payments in there, and
16:31
Speaker 2: again that all gets held to where it's a banking layer,
16:35
Speaker 2: almost a fintech style banking platform, so that you know,
16:41
Speaker 2: REEL can move faster. Probably it's much more cheaper for them,
16:44
Speaker 2: so probably a lot more cost efficient as well as
16:46
Speaker 2: I'm sure that they're getting some type of anti layer
16:49
Speaker 2: revenue off off of the money being held in there.
16:52
Speaker 2: Maybe the credit card swipes that are happening there. I
16:54
Speaker 2: know that you can actually go borrow money against it
16:57
Speaker 2: and then pay that back, and.
16:58
Speaker 1: Then maybe you go by other companies like Remax when
17:01
Speaker 1: you get levered up exactly.
17:03
Speaker 2: So this, this to me, is a much bigger play
17:06
Speaker 2: at the business level. I think real estate agents unfortunately
17:09
Speaker 2: and only thinking at the transactional level and bringing on all,
17:12
Speaker 2: you know, bringing on this debt, and they're not looking
17:15
Speaker 2: at the the the real, bigger, bigger picture of this.
17:19
Speaker 1: I don't know what I mean, honestly, and I don't
17:21
Speaker 1: mean to be a jerk about this. It's just a
17:23
Speaker 1: very honest observation. I don't know what real estate agents
17:25
Speaker 1: think about this after reading all their Facebook popes. It's
17:28
Speaker 1: mostly word mumble nonsense, and a lot of them start
17:32
Speaker 1: with a lot of people have been asking me about
17:34
Speaker 1: I'm just telling right now when your Facebook postpart stars
17:36
Speaker 1: that I already know a lot of people.
17:38
Speaker 5: Have not been asking you about it anyway.
17:41
Speaker 2: Yes, so you're very after an hour the post of
17:44
Speaker 2: a lot of people have been asking me about the
17:46
Speaker 2: real remap.
17:46
Speaker 5: It happened at noon. What are you talking about, Relax?
17:52
Speaker 1: Yeah, this is a very interesting conversation for those reasons.
17:56
Speaker 1: Meaning is a pay eight hundred and eighty million dollars
18:01
Speaker 1: for one hundred and forty five thousand licenses, and then
18:04
Speaker 1: you're you're not merging them in right away. You're keeping
18:07
Speaker 1: Remax the brand intact. My prediction is that will change
18:10
Speaker 1: over the next five years. By the way, I don't
18:13
Speaker 1: mean to be a downer, but I think the Remax
18:16
Speaker 1: brand will be dissolved eventually. But how do you make
18:21
Speaker 1: money off those one hundred and forty five thousand licenses? Well, obviously,
18:24
Speaker 1: streamline operations centralize everything. You get rid of a whole
18:27
Speaker 1: lot of overhead, But it's the ancillaries, right. What you
18:32
Speaker 1: really have is one hundred and forty five thousand ICA
18:35
Speaker 1: agreements and influence over one hundred and forty five thousand
18:38
Speaker 1: individual operators that you can now have the opportunity to
18:41
Speaker 1: provide ancillary value for. And I think that the I
18:44
Speaker 1: want to say the smartest, I just say that the
18:46
Speaker 1: brokerages that seem to be the most active right now,
18:49
Speaker 1: I don't believe they're acquiring licenses because their big play
18:53
Speaker 1: is let's drive as much revenue as possible from commission splits.
18:56
Speaker 1: I don't think that's the way the brokerage of the
18:58
Speaker 1: future works.
19:00
Speaker 5: It's not.
19:01
Speaker 2: No, you're I mean, you're a hundred percent correct, and
19:04
Speaker 2: you know you know in right now, like you said,
19:07
Speaker 2: REMAX isn't going away, but in five years you're let's
19:10
Speaker 2: I mean my thought process immediately when I when I
19:12
Speaker 2: heard about this is well, why if I'm a franchise owner?
19:15
Speaker 3: Number one? Am I upset at this? Possibly?
19:20
Speaker 2: I mean if I put my if I put my blood, sweat, tears,
19:23
Speaker 2: and probably a lot of money into the franchise agreements.
19:25
Speaker 2: The down payment the office is the staff. And I
19:29
Speaker 2: was also fighting against losing my agents to these revenue
19:32
Speaker 2: sharing cloud brokerages, and then I get purchased by a
19:35
Speaker 2: cloud revenue sharing cloud brokerage.
19:38
Speaker 3: I don't know how I would be feeling right now.
19:39
Speaker 1: Honestly, it may be difficult to have some conversations that
19:44
Speaker 1: I kind of now have to reposition this because I'm
19:47
Speaker 1: this was probably one of my biggest competitors from the
19:50
Speaker 1: recruiting side, and now I have to have a different
19:53
Speaker 1: conversation that positions this is a great thing for our agents.
19:57
Speaker 1: Interesting from the broker the broker owner side.
20:02
Speaker 2: Like a politician that's campaigning one thing and then they
20:04
Speaker 2: flip flopped to the other side, and now they have
20:07
Speaker 2: to flip it and say that what they were against
20:10
Speaker 2: now they're really four and and how how much it's
20:12
Speaker 2: a really they really love it, and and so I mean,
20:17
Speaker 2: but I also I also then start to you start
20:20
Speaker 2: to you know, this dies down, and then the next
20:23
Speaker 2: couple of days, which I don't know how this was planned,
20:26
Speaker 2: I don't know, you know, was this this was this
20:29
Speaker 2: in response? But then you have exp reality that bought
20:34
Speaker 2: the franchise brokerage Next Home, Next Home and fifty five
20:39
Speaker 2: little over fifty five hundred agents. They had five hundred
20:42
Speaker 2: plus office locations. My understanding of it when I when
20:45
Speaker 2: I was kind of looking into this is that the
20:49
Speaker 2: about forty percent of those franchise owners actually were virtual.
20:52
Speaker 3: They didn't have physical, physical office space.
20:54
Speaker 2: And then as you dig into it a little bit
20:56
Speaker 2: more that this franch this next home franchise was main
21:00
Speaker 2: for people that that weren't big enough, that didn't have
21:04
Speaker 2: a big enough kind of play to go get the
21:07
Speaker 2: bigger franchise, purchase a bigger franchise, or maybe it was
21:10
Speaker 2: a franchise owner at the big brands UH and big
21:13
Speaker 2: box brokerages that were unhappy they dropped that franchise and
21:18
Speaker 2: then went to this one. It's almost like a landing
21:20
Speaker 2: spot where you kind of see that interesting like a
21:22
Speaker 2: lot of these next homes had anywhere from less than
21:25
Speaker 2: twenty agents in their office.
21:26
Speaker 1: Yeah, I hadn't really, rick K, I hadn't heard the
21:29
Speaker 1: brand before, so I was, I was. I didn't do
21:32
Speaker 1: too much digging into their model. But another another acquisition
21:36
Speaker 1: that a lot of people had a lot of opinions on.
21:39
Speaker 1: So five hundred physical office locations, Well it's franchise, okay,
21:44
Speaker 1: so maybe two hundred, Yeah, they said about forty percent
21:47
Speaker 1: were Okay, how many office locations does Remax have.
21:55
Speaker 5: I'm sorry I put you on the spot with that. Yeah,
21:58
Speaker 5: that's why we don't do this live more.
22:02
Speaker 1: They have nine thousand office locations globally, Okay, I think
22:08
Speaker 1: those will be close in five years. I don't mean
22:11
Speaker 1: like I appreciate you listening to our show. I appreciate
22:14
Speaker 1: the fact that we're allowed to say things on our
22:16
Speaker 1: show that I just I don't know why people would
22:18
Speaker 1: be mad about me saying that. I just think is
22:20
Speaker 1: the truth and not because, by the way, I love
22:22
Speaker 1: having a physical office location. I'm a physical office location guy,
22:25
Speaker 1: and I think that real estate agencies of different models
22:28
Speaker 1: will continue to have physical office locases. I think they
22:30
Speaker 1: bring value, and I think there are a lot of
22:31
Speaker 1: agents out there that love having a physical office spiece.
22:34
Speaker 1: I just don't think that a virtual brokerage like real
22:36
Speaker 1: has it on their long term roadmap to operate nine
22:40
Speaker 1: thousand physical office locations long term.
22:43
Speaker 5: This is a specific to that, but still it's.
22:46
Speaker 2: Not them operating. It's the franchise owners that's operating.
22:48
Speaker 1: But I've said in the next five to ten years,
22:51
Speaker 1: I believe as those franchise agreements renew or whatever or expire.
22:57
Speaker 5: Then they will mostly all be dissolved in to the.
23:00
Speaker 3: Real brokerage model, and it could be.
23:02
Speaker 1: I think that's probably most likely to play again, because
23:05
Speaker 1: I believe it is. When you think about operating at
23:07
Speaker 1: that scale, it is exponentially more expensive to.
23:11
Speaker 5: Operate two brands.
23:12
Speaker 1: Just the marketing and recruiting cost alone is exponentially more expensive.
23:16
Speaker 1: So if my real play is to bring licenses under
23:19
Speaker 1: my umbrella, and I realize revenue from the other ancillary
23:25
Speaker 1: ways that I make money outside of commission splits well
23:28
Speaker 1: keeping my overhead higher. Because I'm operating two Succinc. Different
23:32
Speaker 1: brands or two Sictinc. Brands, the Remax brand would have
23:37
Speaker 1: to really, really really be worth continuing to operate.
23:41
Speaker 2: If that makes sense, well, I agree, and and Jesse
23:46
Speaker 2: show me here. So with the with the exp merger
23:49
Speaker 2: obviously exp announced because it's they're formerly their ticker symbol
23:55
Speaker 2: was EXPI they are now trading under the ticker symbol
23:59
Speaker 2: a g NT agent basically.
24:02
Speaker 3: And you know, I don't. I don't.
24:05
Speaker 2: I don't agree or disagree one hundred percent with what
24:08
Speaker 2: you said about real with the Remax offices changing, I
24:12
Speaker 2: think that as they're looking into it, my belief is
24:15
Speaker 2: number one, if you're gonna if you're gonna have all these,
24:19
Speaker 2: if you're gonna have.
24:20
Speaker 3: Remax, how do you get access to the revenue share?
24:22
Speaker 5: Like?
24:23
Speaker 3: Why would you? I still I still am.
24:25
Speaker 2: Not wrapping my head around why would I run in
24:28
Speaker 2: two different parallels from from an agent or even a
24:31
Speaker 2: broker owner when the biggest play would be how do
24:35
Speaker 2: I get the revenue share? How do I you know,
24:37
Speaker 2: I'm probably getting some stock already. Now, what do you
24:41
Speaker 2: mean run two different parallels? So so Remax is not
24:43
Speaker 2: changing anything, right, So you're if you're a Remax agent,
24:46
Speaker 2: you're not joining the revenue share pool that that reel has.
24:51
Speaker 3: Right, not yet, not yet? But how do you then?
24:54
Speaker 3: You know? Then how do you merge it all in?
24:56
Speaker 3: It's you know, it's you'd have to merge them in.
24:59
Speaker 2: They get a choice, right, So does Remax agents go
25:02
Speaker 2: ahead and start jumpionship over to real brokerage?
25:05
Speaker 1: Well, let me ask you something, what Jesse, maybe you
25:10
Speaker 1: can look this up skin We just I'd like being
25:13
Speaker 1: transparent on the show. I don't know if you're going
25:15
Speaker 1: to find this. What is the average age of a
25:17
Speaker 1: Remax agent?
25:20
Speaker 5: I being a jerk?
25:21
Speaker 1: Do you think that exp is going to put a
25:23
Speaker 1: heck of a lot more effort in empowering Remax to
25:26
Speaker 1: recruit as a brand, or do you believe real I'm.
25:28
Speaker 5: Sorry, yeah, next, I'm sorry, we switched it down.
25:31
Speaker 1: So do you believe that they're going to expend a
25:33
Speaker 1: lot of resources and continuing to evolve and grow the
25:36
Speaker 1: Remax brand running it parallel even though you are running
25:40
Speaker 1: the Real brand and the average age it believes late
25:43
Speaker 1: forties to mid fifties, so you're probably looking at ten
25:47
Speaker 1: years before there's a decent amount of the Remax agents
25:50
Speaker 1: that are no longer working in residential real estate.
25:53
Speaker 2: Sure, but you also have the you also have cycles
25:57
Speaker 2: that come in. Right, that's assuming that that Remax doesn't
26:01
Speaker 2: have any growth momentum now that now that they've got
26:04
Speaker 2: maybe a capital stack behind Remax, now they've got maybe
26:07
Speaker 2: an improvement in technology. But that that's my point is
26:11
Speaker 2: is if you're a broker owner, a franchise owner of
26:14
Speaker 2: that of that company, yeah, what's where's where's the incentives
26:18
Speaker 2: other than you've got to recruit just to keep your
26:20
Speaker 2: lights on.
26:21
Speaker 3: You need to make your money.
26:22
Speaker 2: And and then the agents, you know, a veteran agent's
26:25
Speaker 2: going to start asking, well, why am I going to
26:27
Speaker 2: go over here versus going over to real right and
26:30
Speaker 2: I get the revenue share again.
26:33
Speaker 1: So this is to your point, I I don't know
26:36
Speaker 1: what the Remax franchise owner is feeling right now. I'm
26:39
Speaker 1: not I'm not trying to crystal ball. I think I'm
26:42
Speaker 1: just trying to talk from the most common sense place
26:44
Speaker 1: that I could think of these these things around and
26:46
Speaker 1: not try to be too predictive, like I'm smarter than everybody,
26:49
Speaker 1: but just kind of look at the pieces on the
26:51
Speaker 1: chess courd and think about what makes the most sense.
26:53
Speaker 5: Right.
26:54
Speaker 1: If I am a Remax franchise owner right now, I'm
26:58
Speaker 1: probably relatively worried about my age and just going over
27:01
Speaker 1: to Real voluntarily right now. And while obviously all of
27:05
Speaker 1: the headlines are we're not doing anything to change remas,
27:10
Speaker 1: what else are you supposed to say?
27:11
Speaker 5: Is REEL right now?
27:12
Speaker 1: You're supposed to say day one like, hey, guys, shut
27:16
Speaker 1: your lights off. No, that's the craziest thing that you
27:19
Speaker 1: would do. Of course not so don't. I also don't
27:21
Speaker 1: believe that REEL doesn't have the intention of taking the
27:25
Speaker 1: one hundred and forty five thousand licenses that have just
27:28
Speaker 1: acquired for eight hundred and eighty million dollars, and it
27:30
Speaker 1: wouldn't be beneficial for the majority of those to be
27:35
Speaker 1: under the real brokerage at some time in the relatively
27:37
Speaker 1: near future, meaning the next five to ten years. The
27:40
Speaker 1: ones that are that are still operating in the business,
27:42
Speaker 1: and that it may be less attractive as a long
27:47
Speaker 1: term strategy to continue to empower and recruit to the
27:51
Speaker 1: Remax brand that they own rather than transition to fully
27:59
Speaker 1: re We bought this company, we are continuing to make
28:03
Speaker 1: it more attractive for them to dissolve into US. And
28:07
Speaker 1: the long term strategy is that Real is still just Real.
28:10
Speaker 5: I think this.
28:11
Speaker 1: I think the same thing about EXP. I think Exp's
28:13
Speaker 1: announcement that they're transitioning to a multi model brokerage is
28:18
Speaker 1: not the long term play. Let me think that's what
28:22
Speaker 1: you say when you acquire brick and mortar franchise.
28:25
Speaker 2: Let me let me ask you this, Bran, because we've
28:27
Speaker 2: had the privilege of buying some companies, what's the reason,
28:32
Speaker 2: what's the reason why we would we would buy a company?
28:34
Speaker 2: What would be the reason why anyone would buy a company?
28:37
Speaker 1: Cash flow assets, future earning, opportunity and data?
28:42
Speaker 2: What do you also believe that you could do better
28:45
Speaker 2: when if you're the buyer of another company.
28:47
Speaker 1: Streamline efficiencies, operations, cut costs right realize higher higher margins
28:53
Speaker 1: because you have overlap in all of your operations now,
28:56
Speaker 1: so if you can immediately eliminate operational inefficiencies, that's probably
29:00
Speaker 1: the number one reason to purchase a company. They've got
29:02
Speaker 1: high revenue, they don't have high margins. You do a
29:05
Speaker 1: lot of the same things they do. If you just
29:07
Speaker 1: did them under your team, you'd realize profits right away
29:10
Speaker 1: in for example, the property management space.
29:12
Speaker 5: That's the number one reason to buy a company.
29:14
Speaker 3: One hundred percent.
29:15
Speaker 2: And as we look at this, that is, you know,
29:18
Speaker 2: when you look at real and you even look at
29:21
Speaker 2: exp when they when they come out with their quarterly statements,
29:25
Speaker 2: they are they're kind of they're showing how they've decreased
29:28
Speaker 2: operational costs. They're looking at the average cost per per transaction.
29:32
Speaker 2: They're looking at at you know, even reducing human capital
29:37
Speaker 2: at times, which is unfortunate because that means layoffs, but
29:40
Speaker 2: that also means improving your operational efficiencies and running lean
29:46
Speaker 2: and mean. And so when you buy, when you buy again,
29:51
Speaker 2: a company that was built in nineteen seventy three. How
29:53
Speaker 2: much bloat did they have that you could say, all right,
29:56
Speaker 2: now we're buying truly a brand, because there are people
30:00
Speaker 2: out there that don't know what Reel is exp a
30:03
Speaker 2: little bit just because they started, you know, a lot
30:05
Speaker 2: of the Keller Williams agent just went over there that
30:07
Speaker 2: the brand started to take hold. But even EXP doesn't
30:11
Speaker 2: have that same brand the way that Remax does, right,
30:14
Speaker 2: And so if you look at it, Reel now just
30:17
Speaker 2: brought a brand name, right they believe, confidently believe. I'm
30:23
Speaker 2: assuming that they can improve operational efficiencies and cut bloat
30:27
Speaker 2: and cut fat and maybe even help franchise owners. Add
30:32
Speaker 2: I'm assuming they'll add some tools, some tech stack getting
30:36
Speaker 2: onto their platform so that they can maybe increase recruiting.
30:40
Speaker 2: And then ultimately, you know, do they figure out how
30:43
Speaker 2: to roll them into their revenue share program network.
30:47
Speaker 1: I think that's the ultimate plan, is to roll them
30:49
Speaker 1: under one umbrella. And again I'm not saying this happen
30:52
Speaker 1: to day. I said like five ten years from now, right,
30:54
Speaker 1: But if I was going to take on debt and
30:57
Speaker 1: then purchase the company, the first thing we thinking about
30:59
Speaker 1: is operation efficiency, right, and so is the long term
31:03
Speaker 1: play to continue to run two entirely different companies with
31:06
Speaker 1: different models operationally, that's exponentially more expensive. So I don't
31:10
Speaker 1: think it's like some evil genius strategy. To mention, that's
31:14
Speaker 1: probably the long term play, running too completely different companies
31:18
Speaker 1: with completely different business models and continue to try and
31:21
Speaker 1: grow them both.
31:22
Speaker 5: That's the big thing. Maybe they'll change their name to
31:24
Speaker 5: real Max. Who knows, I mean.
31:26
Speaker 3: Didn't they already do something like.
31:28
Speaker 1: That real did they like a three workout?
31:32
Speaker 5: I like it, so Real Max creating.
31:34
Speaker 2: So get in just to touch on to jump back
31:36
Speaker 2: over into the EXP Next Home, you know, basically acquisition
31:42
Speaker 2: where you know, EXP sitting on a ton of cash,
31:46
Speaker 2: purchase next home for cash. They're not buying they didn't
31:49
Speaker 2: They're not buying this unleveraged and and it doesn't move
31:55
Speaker 2: the needle. Next Time was doing about thirty thousand transactions
31:58
Speaker 2: a year, so that doesn't move the needle very much
32:01
Speaker 2: like EXP, I believe is doing around thirty thousand transactions
32:04
Speaker 2: a month. I think they're at three hundred and sixty
32:05
Speaker 2: something thousand for twenty twenty five. And so when we
32:10
Speaker 2: when we look at when we look at this, it's yeah,
32:13
Speaker 2: you you just I'm I'm assuming because I don't know
32:17
Speaker 2: what the what they bought it for. I don't know
32:18
Speaker 2: if that's I don't know if we have that public
32:21
Speaker 2: knowledge yet. But when we when we take, when we
32:25
Speaker 2: take adding fifty five hundred agents, I'm sure they're looking
32:28
Speaker 2: at it at a breakdown of this is this is
32:31
Speaker 2: the cost per agent, this is how many units they're doing.
32:34
Speaker 2: They were doing about thirty thousand. Where can we can
32:37
Speaker 2: we start putting our ancillaries in there? And I again
32:41
Speaker 2: I'm with the XP. I don't think EXP does an
32:43
Speaker 2: amazing job yet of getting their ancillary revenue in.
32:45
Speaker 3: There just yet.
32:48
Speaker 2: And there could be some other, some other thought processes
32:51
Speaker 2: that we can grow Next Home because this is a
32:54
Speaker 2: landing spot for the brokers that don't want to be
32:58
Speaker 2: at the big box. Maybe they are turned off by
33:00
Speaker 2: the big brands in the big box. And then we
33:02
Speaker 2: can come over to Next Home and have a lower
33:05
Speaker 2: fee structure, but we still get the capital, we still
33:08
Speaker 2: get the the technology piece that Next Home was was
33:12
Speaker 2: kind of lacking because sure, my understanding what I read
33:15
Speaker 2: about read about them was that they were still bootstrapping
33:18
Speaker 2: everything as they were growing Next Home.
33:21
Speaker 3: Next Home.
33:21
Speaker 1: Oh yeah, and I think probably the same play. Eventually,
33:25
Speaker 1: we just get all of your agents to just dissolve
33:27
Speaker 1: into the company and we run it as one. Here's
33:29
Speaker 1: the thing if I'm buying a completely different model, what's
33:35
Speaker 1: the what's the let me, let's use common sense here.
33:38
Speaker 1: What's the worst thing that could happen with either of
33:40
Speaker 1: these mergers for the acquiring company? What's the worst thing
33:43
Speaker 1: that could happen day one? After the deal closes? Agents like, yeah,
33:48
Speaker 1: they go, I didn't I didn't agree to get bought
33:51
Speaker 1: by real.
33:52
Speaker 5: I don't want to be a real agent.
33:55
Speaker 1: Doesn't matter, I bleed red and blue balloon colors, whatever. Right,
34:00
Speaker 1: So the worst thing is that I leave and that
34:03
Speaker 1: happens end mass, especially if I'm buying a radically different model. Right,
34:08
Speaker 1: So what is the messaging always going to be? We're
34:12
Speaker 1: not changing anything. This is going to be a value
34:14
Speaker 1: add for you. We're not really going to tell you
34:17
Speaker 1: how it's going to be a value add for you
34:19
Speaker 1: just yet, because we're not changing anything.
34:21
Speaker 5: But it's going to be a value add. Just trust us. Right.
34:25
Speaker 1: The long term play is we have the ability to
34:29
Speaker 1: start with the ancillaries, start showing you one piece of
34:33
Speaker 1: value at a time, whether it starts with streamlining our
34:36
Speaker 1: back end compliance operation and now we're all on one
34:39
Speaker 1: one system, right, and now we have the data all
34:41
Speaker 1: flowing into one place. Now it can start to inject
34:43
Speaker 1: the ancillaries there. But your life didn't really change all
34:46
Speaker 1: that much. And then we start maybe doing a special
34:48
Speaker 1: stock buying program, or because you're one of the agents
34:51
Speaker 1: that's in the acquisition, we're doing discounted you know whatever.
34:54
Speaker 1: Like there's a million ideas that get bounced back and
34:56
Speaker 1: forth right now, right, But isn't the ultimate goal that
35:00
Speaker 1: we want you here with us and we want you
35:02
Speaker 1: to be happy about it. But I can't tell you
35:04
Speaker 1: to be happy about it on day one because you
35:05
Speaker 1: come from an entirely different world.
35:08
Speaker 5: That's what I think about both these mergers.
35:11
Speaker 2: The biggest thing is are we seeing that the I
35:16
Speaker 2: mean Keller Williams did this, I mean Keller Willis kind
35:19
Speaker 2: of shifted their model to being agent centric to the
35:23
Speaker 2: brand recognition, right, And my belief is that's kind of
35:27
Speaker 2: where maybe the downturn of Keller Williams started happening, is
35:30
Speaker 2: when we started, you know, focusing more on the Kellerwins brands.
35:33
Speaker 2: One of the most recognizable brands out there and are
35:36
Speaker 2: we seeing almost the death of that, And now even
35:42
Speaker 2: though it's been here for a hot minute, we're seeing
35:46
Speaker 2: more and more agents. You have to build your personal brand, right,
35:50
Speaker 2: My personal brand is now. If you're not building that,
35:53
Speaker 2: if you're building, if you're only building the broker's brand,
35:55
Speaker 2: it's you're you're dead in the water.
35:58
Speaker 5: Yeah.
35:59
Speaker 1: I think that the big takeaway here, and we've talked
36:01
Speaker 1: about this in recent episodes, is that the brand name
36:06
Speaker 1: of the broker you're with is not going to be
36:09
Speaker 1: the value proposition for the real estate agent moving forward
36:12
Speaker 1: in the future.
36:13
Speaker 5: I just don't think clients.
36:15
Speaker 1: Clients certainly care what type of technology their agent has,
36:18
Speaker 1: the value that they bring, the tools that they provide,
36:20
Speaker 1: and at the end of the day, what they can
36:22
Speaker 1: do to help them buy or sell a home with
36:24
Speaker 1: the most seamless and delightful experience. But the brand name
36:29
Speaker 1: on the sign, I don't think that clients nearly have
36:33
Speaker 1: the attachment to that that they used to unless you're
36:37
Speaker 1: in specific areas or at specific price points and things
36:41
Speaker 1: like that. Maybe you know, big time luxury brands and
36:43
Speaker 1: stuff like that. I'm not going to speak to what
36:45
Speaker 1: happens in New York City or the coast, or very
36:47
Speaker 1: high end properties, but I mean the everyday Middle America agent.
36:51
Speaker 1: I don't think that the name on your sign matters
36:54
Speaker 1: nearly as much to the client as it used to.
36:57
Speaker 1: And I believe that what you do to brand yourself
37:00
Speaker 1: is exponentially more important than it ever has been in
37:03
Speaker 1: this industry.
37:05
Speaker 3: Brian, who do you.
37:08
Speaker 2: Who do you think is next on the getting acquired list?
37:13
Speaker 2: And who do you think is going to be doing
37:16
Speaker 2: the acquiring right?
37:18
Speaker 3: If we think about.
37:19
Speaker 2: Is Keller Williams got Gary Keller sold if not a
37:27
Speaker 2: majority forty forty nine percent somewhere just a hair under
37:31
Speaker 2: the minority shares of Keller Williams right to a private
37:35
Speaker 2: equity group. Private equity typically doesn't like to stay and
37:39
Speaker 2: for too too long. Their jobs come in and make
37:42
Speaker 2: it more efficient, streamline, and then to turn around and
37:45
Speaker 2: sell that right.
37:47
Speaker 1: Well, just because we talked about this actually the other day,
37:50
Speaker 1: you and I, Yep, we do talk off camera. I've
37:54
Speaker 1: changed my thinking on that. I shouldn't say change my thing.
37:56
Speaker 1: I've evolved my thinking on this. I don't think Keller
37:58
Speaker 1: Williams is going to get sold in the near future.
38:01
Speaker 1: I just think for the exact reason that I talked
38:03
Speaker 1: about before, where the number one thing you don't want
38:06
Speaker 1: to have happen if you're the acquiring company is a
38:08
Speaker 1: mass exodus of agents. The job that Keller Williams has
38:13
Speaker 1: done building brand loyalty over the years. I don't know
38:17
Speaker 1: that any of their agents shouldn't say any I don't.
38:20
Speaker 1: I feel like there's just a substantial portion of their
38:23
Speaker 1: agents that wouldn't even stick around to hear the pitch.
38:26
Speaker 1: If that makes sense, that the one thing that you
38:28
Speaker 1: could do to crumble the almighty moat that is the
38:32
Speaker 1: Keller Williams culture is sell And I think if there
38:36
Speaker 1: was one acquisition target that it would be very difficult
38:40
Speaker 1: to retain the licenses that you're purchasing, it would be
38:44
Speaker 1: that one. I just think you'd have a big, big
38:48
Speaker 1: drop off in licenses pretty quickly. I could be wrong,
38:51
Speaker 1: no idea, That's just my thought. So if the question
38:54
Speaker 1: is who's going to get bought, my answer is not them.
38:57
Speaker 2: So who continues? Well, do you see do you see
39:04
Speaker 2: the little guys? Do you see the little guys like
39:07
Speaker 2: I mean, they're still you know, Douglas Eleman is up there. Yeah,
39:14
Speaker 2: you know when you kind of name it out there,
39:16
Speaker 2: But do you start to see maybe the smaller regional
39:18
Speaker 2: brokerages maybe partnering up or or merging together to get larger.
39:24
Speaker 2: Do either save themselves or it's more attractive to still
39:27
Speaker 2: get merged in.
39:28
Speaker 1: Yeah, So that's a really interesting conversation, is who becomes
39:31
Speaker 1: a buyer and who gets bot right. I think that
39:34
Speaker 1: there are the the the race, the kind of arms
39:38
Speaker 1: race is picking up now for agent count. Which which
39:41
Speaker 1: of these brokerages that feels like they have the technology
39:43
Speaker 1: to become the giant of the future. Who is going
39:46
Speaker 1: to hit escape velocity and essentially acquire a gobble up
39:51
Speaker 1: so many licenses that their market share is so big
39:53
Speaker 1: that they have that type of fue momentum. The one
39:56
Speaker 1: that does come to mind, if I was going to
39:58
Speaker 1: make predictions is row Albert Palmer, because he's he's already
40:01
Speaker 1: he's he just acquired Reside. It was not a brokerage,
40:05
Speaker 1: but you think he's in buying mode. He's a smart guy.
40:07
Speaker 1: And I think if anybody is going to find the
40:09
Speaker 1: capital to do a big acquisition that could retain a
40:13
Speaker 1: lot of agents, I think that LPT would be one
40:16
Speaker 1: that would be interesting to see what they do, you.
40:19
Speaker 2: Know what, I like to when I hear that, though,
40:22
Speaker 2: because this is still the small guys that are making
40:26
Speaker 2: the making the almost bigger waves, right, I.
40:29
Speaker 5: Don't think that, Yeah, Like I don't. I don't think
40:31
Speaker 5: I mean LPT.
40:32
Speaker 3: LPT is a six seven year old company.
40:38
Speaker 5: Yeah yeah, yeah, so so yeah to me, really quol like,
40:41
Speaker 5: I don't think that.
40:43
Speaker 1: I don't, And we're asking Claude, and I don't know
40:46
Speaker 1: if I agree with Claude, Like I don't. I don't
40:48
Speaker 1: think that k kW is in the acquisition game right now,
40:51
Speaker 1: even though maybe they should be. I think maybe for
40:53
Speaker 1: the same cultural reasons, Like we were both kW agents
40:57
Speaker 1: at one point. We understand that that the culture very intimately. Like,
41:00
Speaker 1: do you think then if kW went out and acquired
41:03
Speaker 1: Century twenty one right now, he's already been acquired, But
41:07
Speaker 1: you know what I mean, liked would that just I
41:09
Speaker 1: would stay destroyed? Would that negatively impact the Keller Williams culture?
41:13
Speaker 3: I mean it could, but again, this is about this,
41:17
Speaker 3: This is about staying power.
41:19
Speaker 5: Right.
41:20
Speaker 2: What you're seeing right now, the consolidation of mergers is
41:22
Speaker 2: about one. It's it's who's going to there's a reason
41:26
Speaker 2: why we're seeing this now and we're seeing the the
41:30
Speaker 2: the bigger names out there that you know, Compass has
41:34
Speaker 2: been buying. You saw, you know, on the tech on
41:36
Speaker 2: the fintech side, you saw more of like even the
41:41
Speaker 2: you know, the the Zilla or the Rocket mortgage and
41:44
Speaker 2: Redfin deal. Yeah, that kind of look at it like
41:47
Speaker 2: all right, this is a start. Now that that kind
41:50
Speaker 2: of starts a chain reaction of like, oh crap, you know,
41:53
Speaker 2: does Zillo get into the mix? You know, there's a
41:55
Speaker 2: lot of rumors with Zillo getting into the mix and
41:59
Speaker 2: what happens if they buy something up, you know, is
42:02
Speaker 2: there is there a sleeper that we don't know about.
42:04
Speaker 2: You've got this smaller regionals like you've got what's the
42:07
Speaker 2: one Hannah you know they're kind of more Yeah, they're
42:12
Speaker 2: the Hannah organization that's kind of in that northeastern you know,
42:16
Speaker 2: kind of northeastern part of the United States. You've got
42:19
Speaker 2: home Smart, which to me, home Smart is very similar
42:22
Speaker 2: to next Home. Yeah, you know, we've got not to
42:27
Speaker 2: you know, not to leave it off the table. We've
42:29
Speaker 2: got United real Estate, which you're part of. Sure, United
42:32
Speaker 2: real Estate could be a buyer or it could be
42:34
Speaker 2: a you know, get acquired.
42:35
Speaker 1: I am in in in very confident mode that I'm
42:39
Speaker 1: sure my my, my partners at United to watch the podcast.
42:42
Speaker 1: We're in acquisition mode. They've been growing like crazy. I
42:46
Speaker 1: think they have a fantastic model and they have we have.
42:50
Speaker 1: I'm a brick and office mortar guy. We're more of
42:52
Speaker 1: a classic. I just I love our model and and
42:55
Speaker 1: the AI stuff that we're coming out with right now.
42:57
Speaker 1: I think it's top notch. Is fantastic. You made a
43:00
Speaker 1: really interesting point though about PE and Keller Williams, in
43:02
Speaker 1: the sense that the clock definitely seems to be ticking
43:06
Speaker 1: whenever PE gets involved. I don't know many PE deals
43:09
Speaker 1: where they stay in for twenty years. No, they don't
43:11
Speaker 1: like that, right, It's they got to turn their money,
43:14
Speaker 1: have to right at the end of the day. They
43:15
Speaker 1: got to get returns for everybody in the fund. So
43:18
Speaker 1: does jpar get two years into that? Yeah, yeah, two
43:21
Speaker 1: or three probably three years now. But does jpar get involved,
43:24
Speaker 1: Like you know, Jpen Associates was acquired by by a
43:30
Speaker 1: company I think out of Utah if I remember correctly,
43:34
Speaker 1: And are they up to get acquired?
43:37
Speaker 2: And so when we start looking at all this this
43:39
Speaker 2: is the fun part. Now a whole other show could
43:42
Speaker 2: be do you start to see large what happens to
43:45
Speaker 2: large real estate teams and organizations. You'll start to see mergers.
43:49
Speaker 2: You're going to start to see, you know, people teaming
43:52
Speaker 2: up because this is about surviving the Eventually, you're the
43:59
Speaker 2: slices of the pier going to get smaller and smaller,
44:01
Speaker 2: so you've got to retain and capture more and more
44:04
Speaker 2: of it.
44:05
Speaker 1: Here's the thing, at the end of the day, none
44:06
Speaker 1: of this has anything to do with you doing real
44:08
Speaker 1: estate transactions. So if you get your mind to it,
44:11
Speaker 1: like we have fun doing this for an hour because
44:13
Speaker 1: we like talking about it, but at the end of
44:14
Speaker 1: the day, we're still going to go lead, generate and
44:16
Speaker 1: do sales calls after this, right, So if you're not
44:19
Speaker 1: doing your calls every day and selling houses, it really
44:22
Speaker 1: doesn't matter what happens with your brokerage.
44:24
Speaker 5: Whether they get acquired, whether they acquire.
44:26
Speaker 1: Someone else so they come out with a new piece
44:28
Speaker 1: of technology, You're not going to be in the real
44:30
Speaker 1: estate business, so it won't matter.
44:31
Speaker 5: So make your darn calls.
44:33
Speaker 1: And as Nick was talking about before, this is just
44:37
Speaker 1: an insight that your personal brand and your ability to
44:40
Speaker 1: build relationships through your brand and your business is more
44:43
Speaker 1: important than ever before.
44:44
Speaker 3: Look, and you and I are not huge social media people.
44:49
Speaker 5: We don't love it.
44:50
Speaker 3: You definitely don't love it.
44:53
Speaker 2: But where this is where it's you know, figuring out
44:57
Speaker 2: how to utilize AI to help you go and at
45:00
Speaker 2: least to be more present online, to be more se
45:04
Speaker 2: O GEO AEO friendly, so that when people start searching,
45:09
Speaker 2: start searching online or asking chat, asking Claude, asking Grock
45:14
Speaker 2: or Jim and I whatever the new one that would
45:15
Speaker 2: come out there that you lease, you're at least in
45:18
Speaker 2: the playing field. And we do Brian will be I'm
45:22
Speaker 2: hosting event and Brian's gonna be speaking out at June seventeenth.
45:26
Speaker 2: We will we will link and put the R s
45:28
Speaker 2: v P invite in our group DFW Realtors. It's gonna
45:33
Speaker 2: be from I believe nine to one at the Irving
45:36
Speaker 2: Metro Text location, so you don't even know that it's
45:38
Speaker 2: Irving Metro Text location. Brian, and We're gonna be talking
45:41
Speaker 2: about AI and not about the bs AI stuff where
45:45
Speaker 2: it's like, oh, here's the prompts, just go do it.
45:48
Speaker 2: This is this is people utilizing AI and actually in
45:51
Speaker 2: their businesses, they're going to show you how to do it.
45:53
Speaker 3: They're gonna show you what they're doing.
45:56
Speaker 2: And we've got some some amazing guests that are going
46:00
Speaker 2: to come up and share, and there's no sales pitch,
46:03
Speaker 2: So anybody that's trying to sell an AI service, we're
46:05
Speaker 2: not going to allow them.
46:06
Speaker 4: Men.
46:07
Speaker 3: This is about giving This is about giving.
46:09
Speaker 2: Value back to our agents here in the Dallas Fort
46:12
Speaker 2: Worth area. And then I would also say Ran is like,
46:15
Speaker 2: you know, as we're seeing this these brokerages gobbling up
46:19
Speaker 2: other brokerages and franchises, the reason why they're doing is
46:23
Speaker 2: they want to get the transactions, they want to get
46:25
Speaker 2: the data. They want to get agents on their platform
46:29
Speaker 2: so that they can figure out how to start extracting
46:33
Speaker 2: money off them from every little piece of.
46:35
Speaker 3: The transaction that's happening exactly.
46:37
Speaker 2: And so what I would advise agents, I would say,
46:39
Speaker 2: tune in and listen, you know, really drop everything, listen
46:42
Speaker 2: to what I'm about to say. Is that's why Brian
46:45
Speaker 2: and I have launched the Get Residual Agent Network. And
46:50
Speaker 2: the Get Residual Agent Network is all about helping agent
46:53
Speaker 2: partners just like yourself. First it's it's in Dallas, Fort Worth,
46:57
Speaker 2: It's it's opened all of Texas.
46:58
Speaker 3: Will we open up everywhere? Very very so zoom.
47:00
Speaker 2: But the idea and belief behind it is you as
47:04
Speaker 2: an agent building your personal brand. It's time for you
47:07
Speaker 2: to have a seat at the table that the brokerages
47:09
Speaker 2: are already at. The brokerage is already doing this, your lender,
47:13
Speaker 2: your insurance, your home warranty company, inspection companies already doing this.
47:17
Speaker 2: And this is what we're going to teach you, how
47:19
Speaker 2: to how to extract small, small pieces of the pie
47:23
Speaker 2: out of the transaction that doesn't that doesn't impact service,
47:26
Speaker 2: and in fact, it actually makes you look more like
47:28
Speaker 2: a rockstar.
47:29
Speaker 3: What it's also going to do is going to.
47:31
Speaker 2: Give you an opportunity to actually be more valuable to
47:34
Speaker 2: your database and to your clients. What it's actually going
47:37
Speaker 2: to allow you to do is start expanding your mind
47:39
Speaker 2: to what actually residual income looks like, so that as
47:42
Speaker 2: you build this and cycle through that you've got additional
47:45
Speaker 2: cash flow or you've increased your lifetime earnings, your lifetime
47:49
Speaker 2: customer earning value. So all that we ask is there's
47:54
Speaker 2: no sales pitch. You don't have to you don't have
47:56
Speaker 2: to pay anything at least right now, you just go
48:00
Speaker 2: to get residual agent dot com. I believe if you
48:03
Speaker 2: go there you can join the waitlist. Or do I
48:05
Speaker 2: have to say forward slash waitlist No, no, no, it'll
48:08
Speaker 2: just take one's gone. So now you can just get
48:10
Speaker 2: residual agent dot com. Go join that and let us
48:13
Speaker 2: show you.
48:13
Speaker 3: Let us. It's going to be a.
48:14
Speaker 2: Collaborative network of like minded agents who want to make
48:20
Speaker 2: sure that they're getting that they're going to have their
48:24
Speaker 2: seat at the table so that the brokers don't run
48:26
Speaker 2: the amount of business one one hundred percent.
48:29
Speaker 1: The future is going to look different than the past,
48:32
Speaker 1: and we want to help agents be prepared for it.
48:34
Speaker 5: In the future is now, Brian, the future is man
48:38
Speaker 5: sky in net. The future is now.
48:41
Speaker 1: Hey, everybody, thank you for listening to episode eleven.
48:47
Speaker 5: Ish appreciate it.
48:49
Speaker 1: Check out homeworddfw dot com for all your property management needs,
48:53
Speaker 1: Tourstudios dot com for all your multimedia and podcast needs.
48:57
Speaker 1: And whenever you've got clients that need that one page
48:59
Speaker 1: content track, go to Armadillo dot one and refer them
49:02
Speaker 1: over to Tharren Smith over at.
49:04
Speaker 5: Armadillo Home warranty. We appreciate you guys hanging with us,
49:07
Speaker 5: and we'll see you next time.
49:09
Speaker 3: GF turn it up.
49:14
Speaker 4: This week at b Film Your Real Estate, a weekly
49:21
Speaker 4: podcast for agents who actually get paid. Parky Moves, listing
49:25
Speaker 4: heat clothing Freaks, dfm ag
49:33
Speaker 3: Let's sen