How To Start a Real Estate Team and Make Money

– Hey guys, how are y’all? – All right, good morning everybody. Welcome to the Monday Mastermind. We’ll get kicked off here
in just a little bit. Welcome all the early
birds on the call already. Good to see all you guys on Facebook, too. We’ve got this streaming in
a couple different places. So excited to talk to everybody today. We’re gonna be talking about
something near and dear to my heart, which is real estate teams. I think, you know, I’m gonna share. Hold on, one sec guys. We got an echo, there we go. So yeah, we’re gonna be talking
about real estate teams, guys, which is something, like I say, that is near and dear to my heart. I’ve run a couple different
real estate teams. One when I had an independent brokeage and kind of a team model then. And then running a real estate
team at my current brokeage at EXP and then now on
kind of my third iteration which is almost a completely
different team model. But just everything that I’ve learned kind of along that path. And so gonna be sharing all
that stuff with you guys here in just a short time. Wanna make sure you’re here. I’ve got a couple people texting in. Let me see. All right. All right, here we go. Looks like, perfect, they’re in now. All right, so, how’s
everybody doing this morning? Welcome to the call Norma, Jerome. Good to see you guys. What’s up, Russ? Manny, good to have you on here. What’s up, Tyler? David, hey, what’s going on? Stephanie, calling in, love it. Good to see you on the call. Jody, Doreen, Hope, Mario,
Celina, Holly, Amanda. Good morning everybody. Awesome, awesome. Well very good guys. Well let’s go ahead and
kick things off here. I got a couple things
that I’m gonna cover today so let me give you just a brief overview of what we’re gonna be talking about and then we’ll get right into it. So again, so today guys
we’re gonna be talking all about real estate teams,
everything that I’ve learned in probably, I guess,
about five years of running a real estate team and the things that, to do and the things
not to do is of course what we’ll be talking about. So some of the questions
that I want to answer, first off, is what is a real estate team. Right, like there’s a lot of people, especially in this time
where a real estate team can mean multiple different things. There’s all sorts of
different set ups and ways that somebody might be a
team leader or might be not and so it’s kind of confusing. So I’ll kind of define a real estate team kind of in my opinion. And then should you
join a real estate team? I get a lot of agents with that question about if they should
join a real estate team. If they’re a newer agent
or even a seasoned agent, there’s definitely merit
to why you may want to consider joining a real estate team and we’ll talk about what you’d
want to look out for there. And then should I start
a real estate team? That’s another good question. A lot of people don’t know
if they should start one, when they should start one, so we’re gonna be talking all about that. And then what systems do I need
to start a real estate team? So a lot of times people,
they make the decision they want to start a real estate team but then it’s like well
where do I start, right. So we’ll kind of get into that, talking about like what
you should actually do once you start your real estate team. And then I’m gonna talk
about all the things that I would not do, the
lessons that I’ve learned running a real estate team
and just kind of giving you my advice as to what I’ve
seen throughout that time and what I wouldn’t do because of that. And then finally, just
general observations about real estate teams,
things that I would do, things that I’d be aware of, is kind of what we’re gonna
be talking about today. So I’m gonna try and wrap this one up about a half hour or so
so that way we can get some discussion in at the
end, but until that time, I’ve got all the mics muted for now. I’m just gonna kind of
go through the things that I’m seeing and then
at the end, like I say, I’ll open it up, people
can talk, ask questions. People can chime in kind of like what they, their thoughts are. So first off, what we’re gonna talk about is what is a real estate team. So this term, I’ve put
down that it can mean a lot of things these days, right. A real estate team as
how I kind of see it, it’s just a group of
people working together to accomplish a common goal,
which is selling more homes in this case, right. So this might mean that you
have multiple sales people or it just might be you. So just a real estate
team, a lot of people think immediately that
means having buyers agents or having agents that are
selling along aside you. Quite honestly, I mean
that’s not really the case. The way I look at it, I
consider myself a team leader. I’ve got a transaction
assistant that helps me with all my paperwork and all my files and I’ve got a showing assistant. Like those are literally
the only two people that I pay on my team right now. I don’t have any full time buyers agents or things like that. I have in the past, but even still, I would consider that a real estate team. You’ve got people whether
you’re paying them as staff or whether
you’re paying them like as kind of like a
per-transaction type of a thing, that is a real estate team. So you know, right from
the start, that should help kind of answer one of the next questions, which is should I start
a real estate team. We’ll get to that next. But I wanted to at least
define a real estate team off at the beginning, right. So now we at least know what that is. Before we get into should
I start a real estate team, I wanna talk about should
I join a real estate team, ’cause I think a lot of the people probably watching this call, that’s probably where most people are at. They’re probably newer agents, kind of, either you’re struggling
or you’re just starting, you don’t even know what to expect and you’re wondering, oh man, how do I get this real estate thing going. And so I want to speak to you guys first and kind of give you my
thoughts as being a team leader and if you should be
looking to join a team or do your own thing. And so, kind of what I’m,
the way I look at that, if you should join a team or not, is I kinda say that it depends
on your prior experience and your network of people, right. So if you previously had a sales career and kept a large database of past clients and people that you network with, I would say you probably
don’t necessarily need a team. I think that one of the
advantages of having a team is that you can get plugged in
right away to incoming leads and deals that you’re gonna
be in front of right away. But honestly, if you have
come from a prior deal like I’ll just give my prior experience is I did new home sales
for five years ever before, before ever getting into
general real estate. And because of that, I had
sold roughly 40 to 50 homes a year for the new home
builder and luckily, one of the best things that I ever did was I kept a separate
database of those people that I had sold homes to. Like I had their emails,
their phone numbers, their names, all their home addresses, all that kind of stuff
in a Excel spreadsheet. And so when I got into
general real estate, that was the first thing
that I went back to and I started letting them know, like “hey, I’m in general real estate now. “I can help you and all of
your friends and family. “I’m gonna give great service.” But I can help them anywhere,
not just in this one single neighborhood at this
one single price point. But anybody, anywhere in San Antonio or the surrounding areas. And so, I was able to get going,
build traction right away. Like, right out of the gate
within the first 30, 60, 90 days I already had clients
that I was working with, I already had closings kind
of coming up on the books. And I think for most people,
if you have that sort of opportunity there where
you already got like a list of people, you’re gonna go out
there and just tell the world about you, you getting
into general real estate, then I think that you probably
don’t necessarily need a real estate team right away. Now if you’re just starting
your sales career, right, and maybe you’re starting your
sales career in real estate, right, those are kinda
two tough things, right. Like you just got, starting
in real estate is hard enough as it is and then if you’re
just a brand new sales person, that’s a hard enough thing as it is too, and trying to do both of
those, learn both of those, and get clients and leads
and all this kind of stuff, those are the types of
people that I would think you may want to investigate looking for a good real estate
team out of the box. And the thing is, I mean, that’s not any easy task to do either. Just finding teams that are
willing to take on agents, that’s something you have to actively do. You gotta be out there
talking to other agents, trying to find names of
team leaders that are looking to hire or just
looking to grow their team. And then you want to go
talk to quite a few of them. I would definitely recommend
you look at three, four, five team leaders and, ’cause you
may not be a fit for them and they might not be
a fit for you, right, just depending on like what
you’re hearing from them. I would definitely say you want to look towards a team leader that has experience, that’s been a team leader for a few years or at least a couple years
and shows that they’re growing year over year, because
there’s a lot of team leaders out there that are quote
unquote team leaders but they’re just figuring it out too. I mean, I think we’re all
figuring it out all the time. But at the same point,
if they’re brand new and trying to figure it
out, that’s a hard thing to go along with when you’re really trying to start selling houses right away. And that could end up just making or breaking your entire
real estate experience. If you can’t sell a house
in three to four months, you end up getting out of the business and thinking that it’s
not for you when really, it could have just been that
particular team you joined. So make sure that’s just
as important as deciding to come into real estate
and making that jump is if you are gonna join a
team, you actually investigate multiple teams and make sure that you find the right fit for you. So let’s see, all right,
now here’s the other one. So I would consider it
if you were just starting real estate or in a new market. So that’s the other thing
is like if you just moved to whatever market
you’re in, you don’t know a whole lot of people, that could also be a good chance for you to do that. The other thing, the other
reason why joining a team especially a successful one
is important as a new agent is you start to see what
systems are important in a real estate business. If you join a team and they
truly have it going on, they should have systems
in place where if and when you decide you don’t want to be on a team, you at least know what was successful in that team environment and you can take that along with you down the road. So the other thing I’ve put
here is if you are truly self-accountable, then I
would recommend just starting with calling expireds
and for sale by owners and doing open houses on the weekend. So that’s the other big part of it is like if you, and this is just,
you gotta get real internal and deep with yourself and figure out like what you’re good at,
what you’re not good at, and it’s not bad. If you’re not
self-accountable to yourself, then just realize that’s
something you don’t naturally do well and so you need to put
accountability in your life and one way that might be
possible is joining a team. Another way that that might be
possible is joining coaching or getting, paying for
weekly where you’re in front of somebody and they’re
checking your accountability and all of your metrics
that you should be doing. If you need that accountability
then joining a team could be the free or the
cheaper way of doing it, right. But then if you’re really a
go-getter and you just wanna like invest in yourself, not
have to pay a 50/50 split or more on everything, it
may be cheaper actually to spend $1500 a month on coaching or $2000 a month on coaching. That’s just that balance
you have to take on. Like what risk am I willing
to take as a new agent? Most new agents don’t have
$1500 that they can invest into their business
monthly for a coach, right. I know when I was a new agent, that sounded crazy to me that
I would spend that much money. But when you think about it,
if you end up joining a team and you’re paying a 50/50 split, that ends up costing you a
lot more in the long run. But it’s just that kind of,
you have to talk about it to yourself, how much
money do you have saved up, how willing are you to kind
of do these things yourself and be dedicated to it. If you’re not, if you’re just
kind of testing the waters, then you know, maybe you
do need to get on a team. But if you’re gonna really
make this a solid effort and go after real estate and
you want to not be on a team and you think that you either
have the self-accountability or you can find somebody
to hold you accountable, then again, there’s plenty
of ways that you can just start with calling
expireds, for sale by owners, getting listings that way. And then of course, doing
open houses on the weekend and doing open houses the right way. That’s the one thing,
too, I will say is like I’ve got a whole video on how
to do the right open houses, what to look for versus
just doing opening houses on your own listings or doing them when somebody asks you to do one. You need to go out there and be proactive when you’re doing open houses. If you do that, if you pick
the right ones to do them on, you can get 15, 20, 25
people through each one each weekend and that’s a great
way to get business going. But you gotta be self-accountable. You gotta go out there
and make that commitment that you’re gonna go do that. So all right, so anyways,
I think that’s enough about should you join a real estate team. The next thing that I
want to talk about is should I start a real estate team. So and again, I’ll go
back to my definition of what a real estate team is. I think everybody should start
a real estate team, right, right from the get-go in
the way that I defined it. Now, this is the way that I
think that a real estate team should be built out, that’s
probably a better question, in my opinion is how should you build out a real estate team. And the way that I look
at is I think immediately, all agents, they should
have somebody doing their transaction paperwork. So somebody should hire,
every agent should hire a per-transaction transaction
coordinator immediately and find a good one. Like that, I wished that I
had the person that I have doing my transactions now when I first started in the business. The amount of time that you’ll save and the level of support and you know, experience that your clients
have when you have somebody dedicated toward that when
they’re good at what they do, it will make you look like a professional, it will keep you out of
the weeds and prospecting and doing the things that you need to do to grow your real estate business versus, in the beginning, a lot of
times I would almost use doing transaction paperwork
stuff as kind of a crutch. Like if I didn’t want to do work that day or if I was just whatever, I
would like do all my paperwork stuff, I’d get it so
organized and like I would do all this things so I didn’t
have to like make prospecting calls which is something
I don’t really like to do. I would find anything
else to kind of get me out of doing that type of work. And when I took the
paperwork side out of it now, it’s like I don’t even think
about doing that kind of stuff. So it’s just, it keeps me focused, having that transaction coordinator. And for them, you can, most
of them they charge 300, 350, $400 per transaction
and I’ll tell you right away that’s immediately worth it. I would pay twice that. I don’t know if she’s watching
this call, but either way, I mean the money you pay
for that is well worth it in my opinion and that
would be the first person you would hire onto your team. You gotta look at them like
even though they’re not like full time salaried person of yours yet, they’re part of your team. So they’re a part of your
team just as much as if you have a lender, a lender
is a part of your team that you’re gonna work with
every single day, all the time. So you know, lender, title company, inspector, home warranty rep. Like all these people
are part of your team. And these are the people
that you want to make sure that you have a great
network with early on. So transaction coordinator immediately, showing assistant immediately. I think that’s, when you’re a new agent, there’s gonna be times
where you’re just not gonna be available and I think
that as one of the things that I like the most about having a team was the fact that I
could give the best level of service to my clients. And so, when I decided not to
have buyers agents anymore, the one thing that I
realized is I didn’t want the level of experience for my
clients to go down in any way and I was able to
accomplish that by having showing assistants so that
way if I’m not available, I travel pretty often,
I get busy pretty often, I didn’t want my clients
not to be able to see homes or something like that because of it. And so having a showing assistant for me, that I pay like per time that they go out and show properties has been
an amazing thing for me. And so, and the way
that I have that set up is basically I have it set
up to where any kind of tour that my showing assistant does,
they earn $25 for the tour plus $10 for every single
time that they show a house. So like for instance if
it’s a one house tour, they earn $35. If they show five houses,
which is most common, they usually are showing
three, four, five houses, they’re earning, if they did
five, they’re earning $75. Five times 10, plus 25, so $75 for that. And you can change that
around however you want. You can do more, $40 per
tour and $15 per house, whatever it is you think is fair, but quite honestly, I
mean, I think that that is something that’s good for you
to have in your back pocket. And I don’t use them
all that often, right. But when I need to, I have that available. You may even need two, right. But they’re not anybody you’re hiring. Most of these people are agents. They’re doing their own business anyways and so you’re just asking them
like “hey, from time to time, “would you be willing
to go show houses for me “on an as-needed basis?” And that’s again, doesn’t
cost you anything. The whole premise you’re gonna
see behind real estate teams that I’ve learned over the
time, and this is not just for myself personally, but
this is also from talking to a bunch of team leaders,
is you have to keep your overhead extremely low. That is one trap that so
many team leaders fall into is just taking on so much
overhead, taking on so much risk and there’s really no return in it. It’s funny because I remember
almost feeling guilty when I went to a real
estate team and charging buyers agents 50/50. I’m like man, I’m 50% of their commission. But it’s almost so much reversed now because I see it from the other
side and if you understand how many expenses a
team leader usually has, 50/50, I mean, that’s
like the bare minimum. We’ll talk about why that is. But anyways, so I mean the
biggest thing that you’re gonna keep seeing, the recurring
thing is that you’ve gotta keep your overhead extremely low. All right, so now we’re
gonna get into when you start to hire people, like full time
people and what do you pay them and all of that kind of stuff. And so, my first hire, if you’re
an agent and you’re looking you’ve gone past like okay,
I’ve got a transaction coordinator helping me, I’ve
got showing assistant help whenever I need it, and now
you’re consistently selling above 40 homes a year. Just say you sold 30
homes the year before, then you just sold 40 homes
this year and now like in the first three months of the year, you’ve sold eight or 12
houses, you’re kind of on pace for that 40 homes again or more, right. Like maybe you’re gonna do
50 or 60 or whatever it is, but once you’re gonna be for
sure above 40 homes per year, I would say at that point you would hire your full time assistant. That’s when you actually
take somebody, hire them, train them as, first off
they’re gonna take over the transaction coordinator position. And so that’s gonna save you money. ‘Cause I mean you figure if
you’re paying a transaction coordinator $350 times 40
deals, that’s $14,000 a year. So immediately, you’re gonna take that off that transaction
coordinator’s plate and hire that full time assistant
which I would recommend you hiring that assistant
and paying them probably closer to that 35 to $40,000 a year range. That should be their starting
salary if you’re looking to hire a full time assistant. And so, that might sound
expensive but at the same point, you’re saving 14 grand
just from not having to do the transaction coordination. So they’re gonna do the
transaction coordination for you plus all sorts of other things, right. Like marketing stuff that
you’re gonna need to get back to your database, they’re
gonna do all sorts of like reach outs, setting up planned events. Like maybe you’re doing
a monthly happy hour, maybe you do a Christmas party. All that type of stuff plus, I mean, if you can find somebody that’s licensed, that’s even better in my opinion. I would even pay a little
bit more if I could find somebody that has their
real estate license just because then in a pinch,
if you ever needed them to do something that required a license, you’ve already got that flexibility. So they don’t have to be, but like I said, definitely you could have
enough things for them to do. If you’re an agent selling
40, 50, 60 homes a year, there will be enough things
for that full time assistant to do that they wouldn’t
have to have a license and they would still be busy. But if they have a
license, it just gives you that additional flexibility,
which is kind of nice. Okay, so then you’ve
got full time assistant. The next person in my
opinion is once you’ve now scaled up, like you’ve
got a full time assistant, hopefully you hired that
assistant so you can grow more. Like it’s gonna put you more
into the prospecting activities generating more deals for yourself. So now you should be doing
more than 40 homes per year and I’d say once you get to
around 60 homes per year, which is basically five homes per month, then that would be now finally
when you start to think of needing to get a
full time buyers agent. There’s a lot of agents
that can do 60 homes, 100 homes even, that’s kind
of the highest that I’d see, on their own right like with a
team, just not buyers agents. They can do it with some
leverage, especially if they’re very listing focused,
they can do closer to 100. Now if you’re buyer focused,
probably not so much. But again, like you shouldn’t
even be having the discussion of hiring a full time buyers
agent where you’re gonna be paying them 50/50, be
responsible for all of their lead generation and getting them
leads and stuff until you are consistently doing 60 homes
per year pretty easily, like pretty consistently. You don’t worry that there’s
gonna be deals to come. Like you just have a system in place whether it’s through whatever
marketing avenues you’re doing or whether it’s through
all referral based, whatever that might
be, you’ve got a system to where you definitely get
above 60 homes per year. At that point in time you want to pick up your full time buyers agent and again, that’s gonna be the
person that I recommend you only pay them 50/50 or less. I know some that are 40/60, 50/50, but don’t get into the trap
thinking you’ve got to pay them more, 60/40, 70/30
’cause I will tell you, at that point, it doesn’t become worth it to have a buyers agent. Anyways, and we’ll get
kind of more into that. All right, now what
systems do I need to start a real estate team? So this is, it’s gonna
sound very simple and plain and quite honestly that’s
how it needs to be, but honestly just you
need something to track and hold accountable your team. So like whether that is your
transaction coordinator. You want to have a system to track that and that’s easy, right. That can literally just be
getting some kind of feedback at the end of a transaction
from your clients, right. And just, “hey, what did you
think on this file” survey, a five out of five, a 10 out of 10. Like get some kind of
survey or feedback system so that way you can check to make sure that your transaction
coordinator is an asset to your real estate team. And then same thing for
like your showing assistants or in this case, say you get to the part where you’re getting buyers
agents, now you want to, for one, track like if
they’re doing a good job but then for two, track if
they’re even doing their job. You need to make sure that on
any lead that you get them, that it’s tracked so you can find out like what is their conversion ratio, are they converting deals at the same clip that you typically would
and when I talk about that, that all comes around like tracking right. So you gotta have your own tracking system for yourself before
you even start bringing other people into it. So you need to know what
your numbers are, right. Like how many leads do
you generate per week? How many leads have you
generated per month? Out of those deals, or out of those leads, how many did you get to sign a buyers rep? How many did you get to
sign a listing agreement? And then out of those buyers reps, how many ended up buying and closing? You need to have those numbers down for what you’re doing
so that way if like say for instance in this case,
you get a buyers agent, so that way you can kind of
offload some of those duties and focus more on listings,
if you start giving them the same deals you would have
taken doing the buyer deals, you need to make sure that
they’re converting them at or around the same
percentage that you were. And so, and then you need
to make sure that not only are they closing them, but
they are also giving them the same amount of
service or the same level of service as you would. So that’s where you want to make sure that you follow up with your clients, check how the process
went, all that good stuff. So like those would be
tracking accountability, you can do that in a
spreadsheet, you can do it with a CRM system, all sorts
of ways, but the bottom line I’m like that is probably
the most important thing as far as a system that
you need for a team. The other thing it’s kind
of just a system thing, but you need some kind of a
checklist of your sales process. You need something that you
can give that buyers agent so that way they know that
they need to do X, Y, and Z on every single transaction just the way you would have done it. So that’s pretty easy, right. You can do all sorts of different thing. Trellow, you can just have,
again, another spreadsheet. Whatever it is you need
to have but you need to have some kind of checklist. And then as far as training
goes, what I usually recommend is that don’t think that
you’re gonna just hire a buyers agent and like offload all of these deals right away. Really, I think you hire the
buyers agent, you have them shadow you for three, four
months, just you still doing all the same stuff you would do normally but now you have somebody
that’s tagging along with you for three to four months
and they just kind of find out what you’re doing. Which kind of gets into the whole idea and we’ll talk about this
once we get into the things I would not do is you don’t
want to grow too fast. Right, like you need to be
hiring maybe one person at a time and really pour into that
person because, again, if you scale up too quickly,
it’s gonna create a lot of stress on your part
and it probably is not gonna end up working out in the long run. And then next, the other
system that I would say you need to have with a real
estate team if you don’t already have it as a real estate agent is you’ve got to have being
able to track your financials. And when I talk about that,
I’m talking about a monthly profit and loss statement. You need to know what
your profit and loss is, even just as an individual agent. You need to know that. You need to have good numbers as to like how much money you’re making, how much money you’re spending, and then how much money you’re
keeping at the end of it all. Those three things, right. And then when you have a
team, it’s no different. If you have a buyers agent,
you need to make sure that how much you’re making,
how much you’re spending, and then how much you’re keeping at the end is not going down. Which, I’ll be honest with you,
right away it probably will go down a little bit, you have to almost kind of expect that. As you start to scale up,
typically, it’s not like you scale up and immediately
start to see increases. You can, but usually that’s not the case. Usually you kind of dip down a little bit either because you have to now
start doing different things. You got a train a little bit more, you gotta come up with more systems that you didn’t initially have. And so you’re a little
bit more distracted. And then that person that you just hired, they’re probably not up to
100% performance right away and so like, you’re not gonna
get those initial boosts. But, if you’re tracking
it, at least you won’t get too far out of whack. I can tell you, I actually
made a post probably about two weeks ago now about where
I was even just a year ago with my real estate team
and it was all because I got away from tracking numbers and financials and I was going off of like
gut feelings for things. And we had a plan, but I
didn’t go back and check to see if we were like actually
hitting our plan very often. And so, we got away
from the way that things needed to be run and that will happen when you don’t have
clarity in your business. Again, tracking and accountability,
a CRM for kind of like performance things of your
team and then of course, run it all through your
financials and making sure that your monthly profits and loss is going in the right direction. So all right, now we’re
gonna get into things that I would not do. So first off, I would not
buy leads and turn that into like a team based thing. So a lot of agents, they kind
of get this wrong impression that you know what, like I’m
not selling 60 homes a year myself right now, maybe
you’re selling 15 or 20 and you’re like “but you
know what, if I buy a bunch “of leads, I can start
up a team right away. “We’re gonna be profitable.” Honest to God, I would never
do that in my life again. I know a lot of team
leaders that get into that and it’s almost like a trap in my opinion. I think that you have to
show the production first and grow your team organically from that. So you scale it from your organic growth. You don’t try and buy the
stuff and think that the team is gonna start producing
and creating a ton of money. I have not talked to a single team leader that has been effective doing that. Now, you know, they can sell
a lot of houses for sure, but to be, to also be
profitable and all that, it’s very few and far between. I mean, I’d say it’s like the 1% right. So are there team leaders
that are watching this that are out there doing it? Probably, right, but the
vast majority of the ones that I talk to, that is not
how they make money, right. Like they’re successful real estate agents and that’s kind of it. The other thing that I would not do, especially ’cause if you’re
still a real estate team leader which you’ll most likely still
be selling at this point, you’re still selling real estate, is a lot of times you kind
of, let’s say you’re selling 60 or 70% of the homes on the team and so you’re staying profitable,
like you’re making money, but in the long run, you’re
actually, if you really look at the financials, the team side of it would be losing you money. Like a lot of times if
you’re not really solid on the numbers, it’s easy to confuse like you selling real estate
as an individual agent and kind of carrying
the team, so to speak, to where you think that having the team is a profitable thing. I find a lot of team
leaders fall into that trap. They’re selling the vast
majority of the transactions but if you actually took
out just what the team costs and what the team is making you, then you’re actually
negative on a monthly basis and I think that that’s
something to really make sure that you’re clear on ’cause
you know what that incremental benefit of having a team is
adding to your bottom line. You know, like now, it’s like
if I knew that I was making 250 or $300,000 a year
as an individual agent, and then I have a team
now all of the sudden but I’m still making 120 a year, you might think like if you didn’t know that you were making 250 or 300 before, you might think making 120 is good. You’re like “oh yeah, we’re
profitable, the team is growing” but realistically if you
kind of factor that in to what you could have
made as an individual agent without all the overhead and
basically giving a 50% split away to an agent all the
time, could be making you. I think that that’s something
you gotta be very clear on. So all right, don’t scale too quickly. Grow your team organically
and stay profitable and take on less risk. That’s just, again, we are
going into an uncertain time, especially now where
the real estate market, a lot of are seeing kind of
a slow down or we’re not sure where it’s going to be. It’s been going up for,
what, 10 years now, and you know, or close
to it, eight, nine years. And it’s cyclical, right? You got ups and downs in
real estate and so far, it’s been up for the last eight years and usually it’s like
five to six to seven years before you kind of see a change. And so we’re on borrowed
time, I would say. That’s not to say that
the market’s gonna go down like it did in ’08, ’09
all that kind of stuff. But it could slow down. If you have more overhead,
you’re exposed a lot worse. So again, just staying
profitable, taking on less risk right now, growing organically. Those are all things that
I think that a real estate team leader should focus on. So all right, also other
things that I would not do specific to buyers agents. Don’t pay buyers agents different splits for different transaction types. A lot of times team leaders
think “oh, I’m gonna give “them this much for deals they generate. “I’m gonna give them this much
for deals that I generate.” And I can honestly tell
you that that is not something that I would encourage. I think that you, you take on
the wrong mentality, right, like if they’re on your team, right, like they should be supporting
the team and helping the team in the same way regardless of
it it’s a deal they come up with or not because I mean,
you are providing a lot of those deals most of the time, even if they’re on your team. You’re probably providing
more than half of their deals. And so realistically, to have
something where they make more on their own is not really
fair to you as the team leader. It just makes their motivation
maybe a little bit different. They might not want to work
a deal that you give them if they know they’re making less money compared to what they can do on their own. It just creates all
sorts of separation there and I wouldn’t recommend it. I wouldn’t pay buyers
agents more than 50/50. Again, there’s a lot of overhead. You may not realize it,
especially if you’re just starting out a team right away, but you can, the one thing that I will
say is you can’t ever go back and charge more down the road. If you were paying them 70/30
and now all of the sudden tell them you’re gonna pay
them 50/50, it will not happen. They will leave your team right away. I’ve learned that lesson very clear. And so, even the best
agents, best friends of mine, like that is just not gonna happen. Now you can give them more
eventually if they prove out that they can be an asset to your team, if you start them on 40/60,
you can make them 50/50 if they’ve learned the
business, if they’re doing well. You can almost encourage
their growth that way. But you definitely can’t go the other way. So don’t make that mistake up
front of paying them too much because regardless of what
your pitch is down the road of why you would need to
charge the right amount, it won’t matter, they will end up leaving. So again, that’s just my take on it. I would not hire part time
agents as buyer agents. For me, that’s a big no-no. I only want full time people. I want people that I
don’t have to worry about if they have other things planned, maybe they can go with me
at that time or go shadow me at that time or they can
maybe go help clients at a certain time. They gotta be full time for
me to even consider them if they’re gonna be a buyers agent. And that’s the other thing
too is I wouldn’t hire any brand new real estate
agents as a buyer agent unless they had prior real
estate sales experience. And what I mean by that is
in the real estate industry. Like they could have come from title, they could have come from mortgage, they could come from new construction. But if they’re again, even
just coming from a sales job, I would not probably take that person on, especially in the beginning
as your first buyers agent. Just because I think that almost, it’s almost like a mindset. I would actually rather
have somebody that has been in real estate for six months to a year and maybe wasn’t finding
the success that they wanted but you could tell that
they were still hungry and they want it so bad to like be successful in real estate, like those would be the
people that I’d be looking for because if they’re just
coming straight into it, they’re gonna be kind of like
have that grass is greener mentality that they think
that they come straight onto your team as a brand new agent, that things are easy and
that you might, you know, they don’t necessarily,
the 50/50 split or whatever you’re charging, 60/40,
like they may not need they don’t need that help ’cause they don’t know any different. They don’t know what it
takes to be a successful real estate agent right
off the bat, right. And so where as if they’re
coming in from another real estate industry background, they know that it’s tough
to be real estate agent and they appreciate,
especially if they’ve been a real estate agent for
six months or 12 months and hadn’t been as
successful as they want, they know that it’s tough,
they know that they need your help and they’re willing to do more that you ask of them. And so, that’s just
kind of my take on that. All right, so here’s the other big one. Don’t become out of
touch with your clients just because you have a team. So now you have a team, you
got agents that are helping all your buyers out, you’ve
got a transaction coordinator. Like at the end of the day,
that client needs to stay yours. I mean, yeah maybe that buyer
agent serviced the client, they helped show them houses and all that but you can not break that connection of you helping that person. Because your business and
your ability to grow your team and grow your real estate sales business is directly impacted by your ability to get referrals down the road
and generate multiple deals. And so, if you are out of
touch with that client, well now you’re helping that
agent build their business which is great, right, like
you can still help them. I’m not saying not to help agents, but you need to make sure that the team is benefiting from it
as well in a big way. So like even if down the road,
that agent left your team, you have the relationship
with the client, right, like you have not lost that. That is truly the power of it. If you think of your team,
you can not forget that. You have to lead with that. So again, that’s where like
having events and happy hours, calling them, those clients, consistently, letting them know that
you are the team leader. They may have had an experience
with one of your agents, but at the end of the day,
you are the team leader, you’re their go-to if they ever come back and buy another house, if
they ever have a referral or anything like that,
you want them to make sure they’re calling you because you’re the one keeping that relationship with them going. So don’t forget that
’cause that is gonna be what fuels your growth as a team. And if you don’t do that, you won’t grow. It’s just not, or you won’t
grow as quickly, for sure. So all right. Don’t take on any additional overhead unless absolutely necessary. And a lot of people think
like the word necessary can mean a lot of different things. But in my opinion, I mean, I don’t think that the team right off the
bat should have an office. I just don’t think there’s
really a point to it. I think there’s a lot of
ways that you can go around having an actual brick and mortar office that you’re paying monthly for. You can meet on Zoom. Most of the time, again,
they’re gonna be shadowing you so you’re gonna be riding
along in the car with you. You can do meetings at
your lender’s office, you can do meetings at your
title company’s office. All sorts of ways for you
to keep that overhead low. Yeah, it might seem
nice to have an office, but I tell you, it’s not
necessary, not right off the bat. Now if you’ve got a team of
four, five buyers agents, you’re selling 300 homes
a year, 250 homes a year, something like that, now
maybe you can look into it. But again, right off the bat, definitely not necessary in my opinion. No exorbitant lead generation costs. So again, and this goes
back to being organic. You don’t want to grow your
team by buying the leads because I’ll tell you,
the margins are so thin on a real estate team as it is
that if you’re buying leads, it can for sure be what
makes you be able to grow and stay profitable for
what versus what it won’t. And so, again, you want to
keep lead generation costs at a very minimum and
that’s why, like I say, you want to grow this thing organically. Now, if you’re already spending
money for like Facebook ads or whatever, like that
was what helped you grow, then keep doing that. I’m not saying not to
invest in your business, but what I’m saying is
you don’t go out there and hire a buyers agent and
think okay, well now I got a buyers agent, I need to go
and spend two or three grand on Facebook ads every
month or $1000 on Facebook if that’s not what you
were doing previously. You don’t want to all the
sudden think that now you have to feed this buyers agent,
so you gotta go spend money on lead generation. It should have been an organic thing. So like they’re gonna
take off of your plate deals that you would
have had already, right. You’ve already got some system
where deals are coming in and they’re gonna take over those deals, you might invest a little bit more into whatever it was that you were doing to get you to that point. So if your referral and SOI
based, maybe you’re gonna spend more time and more
money on prospecting to those people, which is
gonna be what helps you grow. But I wouldn’t just go out
there and start spending all sorts of money to
try and feed this agent that you had not done previously. So all right, and yeah, I
wouldn’t sign up for a ton of new systems, that’s the
other thing that team leaders fall into a trap of is
the shiny object syndrome. It’s like you go out there and you see all these things that talk to
like “okay, growing your team, “you need this tool, you need that tool, “you need this system,
you need that system.” Like, honestly, I told you
the systems that you need. And really, all it is, it’s no different than how you’re growing your
real estate business as it is to 40 or 60 homes per year. It’s gonna be just more
prospecting, it’s gonna be doing more things that got you there. But it’s not gonna be
like all these new systems that are gonna take your
team to the next level so don’t get, fall into that trap. And also, ISAs, I think
this is kind of funny. We had an ISA, we hired
ISA, like out-sourced ISAs and honest to God, if you
don’t, if you maybe had like five buyers agents,
you’re doing 250 deals a year, something like that
than maybe you can look into like an ISA, but honestly,
before that point in time, you and your team should have the ability to call and connect with the leads. I don’t think that an ISA,
again, it’s just an additional expense and that’s where,
again, I went completely wrong. I mean, I got so bogged down in overhead that it just wasn’t,
you know, you could look at my expenses and it was just crazy that I would have ever even done that. I mean, we’re spending
$2500 a month for an ISA. We were spending $4000 a
month for Facebook lead ads. And we were doing that, we
had an office, $3000 a month. We had all the stuff
that I’m saying not to do and when you looked at
it, yes me and my team were probably selling 90 homes a year, but I was selling 45 to
50 of those on my own. And so my team was selling
another 45 to 40 of those, maybe 35 somewhere in that range. Which if you look at that,
that’s about like three deals a month that we were consistently closing. And you look at that, what
I made, let’s just say our average commission was 6000 bucks, so it’s $18,000 we were making
in additional commission per month but then I’m
splitting that 50/50, so I’m making $9000 but I’ve got well over 20 grand in overhead to run that team. And so that’s where you can get pretty negative pretty quickly. So just keep that in mind. All right, finally, we’re
gonna get to observations and then we’re gonna open it up. So first off, early on,
building a real estate team either buys you more
freedom, time freedom, or money, but it’s not both. I think people need to
be very aware of that. When you start a team, it’s not like you’re,
’cause a lot of people, they get caught up in the
wanting to scale and leverage, those are kind of buzzwords for teams. And like leverage and scaling,
but if you think about it, the reason why you would
hire a buyers agent, let’s just say buyers agent in this case, is so that way you can do more prospecting and getting more listings and getting more buyer leads for your buyer agents work. But you’re not working less. If you do work less, you
will earn less money. You’re basically paying
for your time freedom. And that’s fine if that’s what you need. Maybe you’re like hey,
you’re making 250 a year and you’re like I’m
comfortable making 150 a year if I can have my time back. Then that’s fine if you go into it knowing that that’s what’s gonna happen if you don’t work harder
yourself when you’re scaling. But you’re not gonna get both. Especially not in the beginning. Maybe in the long run if you
build a truly great team, can it be a kind of more
like a passive income kind of a thing, but I will tell you, it’s very hard to get it to be passive. You are so involved,
especially in the early stages. And when I say early stages,
that’s five years minimum in my opinion just from what I know, team leaders I’ve talked to. So that’s my observation, number one. And then yeah, observation number two, hiring is so important for team building. Don’t rush it. Picking the right people
and hiring the right people is so, so, so important. And a lot of times when you’re
just starting out a team, you almost kinda take what you can get. That’s completely the wrong strategy and wrong approach to getting somebody. You want to make sure that
person is the absolute right fit and that’s
where growing organically, growing slow is the better
option in my opinion than growing completely
fast, just trying to like throw things together and
thinking that the right way, not in my opinion. Again, you want to make sure that hey, you’re always looking, like
you have an eye out there, especially when you’re
in that 50 deals a year, 60 deals a year, you know that
you’re gonna need somebody but you don’t necessarily
like have to get somebody right away so you’re just like looking for opportunities that
kind of present themselves. You go to the title company
and the title company talks about a great
agent that just started. Maybe you’re talking to your
lender and they’re working with a new agent that’s
hungry but they just closed their first deal with them a
little bit ago or whatever, like you’re looking for
those types of things for an in to be able to pick
somebody up onto your team. You don’t want to just grow
just for the sake of growing. You want it to be organic in my opinion and don’t rush the hire,
make sure they’re a good fit for your team, they’re gonna
be the right hard worker, you’re not gonna have to baby them. And so anyways, all right. And then here’s the last thing. My third observation, this
is probably one of the most important things that I
will say is that consistency is even more important as a team leader than it is as an individual agent. So already as an individual
agent, consistency is the key. Like we all know that
if you’re not consistent as an individual agent, it’s
very hard to have success in real estate and you take
that to the very next level when you become a team leader. And if you’re not consistent as an agent, it’s gonna be extremely hard
for you as a team leader. And so make sure that you are the person that either you’re naturally consistent or you have systems in place to be sure that you’re consistent. Maybe you have the right accountability, maybe you have a no-fail
system that won’t let you be consistent, but either
way, if you’re not consistent as an individual agent, you’re
gonna be really struggling as a team leader because you,
for one, need to be consistent as a team leader just
because that’s gonna propel your business and keep it going
but now you also have people that depend on your consistency. You have agents, you
have people that need you to be consistent so that
way they can be consistent, that way they stay plugged in, that way they do the right things. And so, again, making sure consistency is still a very, very
big part of your business as a team leader. So cool, all right guys, that was it. Those were my observations and everything. I’m gonna open up the lines here. Let me open this up here. Let me know, I got a lot
of stuff in the chat here so I’m gonna read through
some of this stuff here and I’d love, if you guys have questions, feel free to unmute your mic, chime in. If you’ve just got feedback
or anything that you thought about from this call, feel free
to chime in on that as well. All right, Dr. Fabian,
hire slow and fire fast, that’s right, absolutely. When do you present the showing
assistant to the client? Yeah, so, Mario, great question. So as far as that goes, I
tell my clients all the time, the first time that I meet with them, that I work as a part of a team, that I’ve got a transaction coordinator and that I’ve got a showing assistant and I might not present them to them. Like sometimes I have clients that I help that don’t ever get touched
by the showing assistant but I tell them up front
in the first meeting that hey, from time to
time, if I’m not available, your interests are the
most important thing to me and so if I’m not available,
I do have somebody or multiple people that I can have show you homes in my absence. So I make it very clear that that exists. And so that way when it comes
up that I’m busy or whatever, if I’m out of state or on a trip, that I just say “okay,
remember we talked about Tim? “He’s gonna be able to help you.” And boom, I sent Tim over there and so it’s not a super surprise. Does your transaction
coordinator need a license? Yes, Russ. I don’t know if they do,
like if you’re asking like does the state of Texas require it. I’m pretty sure they do. I mean, they’re talking to
your clients about real estate stuff but for sure, I want
my transaction coordinator to be licensed and so
anybody that I’m hiring on a per-transaction basis,
most of the time they’re going to need their license. And again, that’s where
having your first full time assistant be licensed I
think is extremely important because again, I’m sure
there’s gonna be things either in that transaction
process that it’s kind of like maybe a gray area or maybe
even they can’t do it if they’re doing some of the things you’re gonna need them to do. But yeah, for having transaction,
an assistant be licensed, I would say yes, mine is, so I don’t even think twice about that. All right, let’s see here. Do you pay daily? Not exactly, let’s see,
daily towards what? Not exactly sure what
you’re talking about there. Oh, showings. Do you pay showing agent daily? No, not daily. I pay them per time that they show homes. So again, if they, I pay them per tour plus whatever amount of
homes that they show. So again, I have it set
up to where I pay them $25 per tour plus $10 per house. So if it’s a four hour tour,
they’re getting paid $65. If it is a one house tour,
they’re getting paid $35. And sometimes, most of
the time, I’m kind of, if it’s like a one house
tour, I feel bad or whatever, we might change things up, but in general, that’s kind of the structure
that it’s set up for. I just want to be fair to the person. I want them to want to
show houses for me, right. So like you want them to be excited, not be like aw, I’m not
getting any money from it. If that’s the case, if you have an agent that is a good agent,
that you feel good with them working with your
clients, like pay them more. Pay them $40 per deal
plus 15, $20 per house, whatever it is you need to pay that person to have them be excited about it and give your clients good
service in your absence, it’s worth it for sure. But if it’s like say a new
agent that’s new to real estate and they’re just happy
to go out and show houses so they can get experience,
I’m sure they’re happy to go show four houses and make $75 and get some experience showing homes. So it just depends on
what the scenario is. All right, let’s see. What else do we got here? All right. Russ, Keith gave a great suggestion. It looks read “SOI Real Estate
Agent’s Sphere of Influence” by Brian Icenhower. I’ve not heard of that
book, Russ, but I might have to go check that out. So Russ gave a book suggestion. I know a lot of people like
book suggestions, there you go. All right, let me go
over to Facebook here. – Great book.
– Is it? Good, good, thanks for sharing Russ. Let’s see what have I missed on Facebook. Let me go to my page. All right guys. And feel free to chime in. If you’re on Zoom right
now, feel free to share if you’ve got questions, feedback. What are your thoughts? Did I miss the mark on anything? There we go. Okay, we got a question on Facebook. Says do you use a DISC
profile when you are hiring or gut instinct? No, absolutely Teresa,
I do use a DISC profile. It’s a great thing to point out is to have a disc profile
done for everybody you hire. And so I mean, the transaction manager, you might not, right, but
like definitely once you get into like full time assistant
and once you get into a buyers agent, you want to make sure
you’re getting a DISC profile on them and basically what
I’m looking for on the DISC profile for a showing
assistant or for a buyers agent is somebody that’s usually like
an IS, something like that. Like they’re influential
but they’re also like able to be social and
kind of like be somebody that people are going to like, right. So that’s somebody that I’m looking for. I’m not usually looking for D personality. Like those are typically
gonna be the people you might butt heads with
’cause if you’re a team leader, most of the time a lot
of team leaders are D, DI or whatever, I’m not
saying you have to be, but again, knowing your
DISC profile is important because then you can start to
create, build out your team to complement what your
strengths and weaknesses are. And so like for instance,
if you’re a team leader and you’re a DI like myself,
I’m looking for an assistant that’s an SC, somebody that’s organized, that’s not gonna let things
fall through the cracks. So anyways, assistants,
I’m looking for an SC for me personally and for
showing, buyers agents, I’m looking for an IS, typically. And again, that’s what I look for. I’m not saying that’s
a hard and fast rule. I mean, of course, when
you interview that person, but it does play a big, big
part in my way of thinking. So if they’re not the right
fit, I’m very, very skeptical, if they’re not the right
fit on the DISC profile, I’m pretty skeptical of that person. They have to prove me
wrong when I go to hire. All right, let’s see, Josh
Williamson, yep, I’ve been there. Oh yeah, a lot of people. Jason Fibbs, yeah, I
lost 80 K year one, yep. It’s guys, I’m telling you,
it’s not a get rich quick thing for sure, you gotta be
committed to the cause, you gotta be ready for
a lot of ups and downs, you gotta always be ready to
learn, be willing to learn from your mistakes,
learn from other people. But that being said, it’s not a bad thing. It’s fun to work as a team, right. You’re not there as a lone wolf, so that’s fun to win with other people. I would say that’s probably
the thing that I enjoy the most about having a team is being
able to win with other people. Like yeah, we might lose
too, but being there with other people I think
is probably the best part about having a team. So let’s see, I’m still looking into some of these comments guys. Let’s see, what am I missing here? All right, cool. Well what else guys? What other questions do you have? Love it, Jason, love it. Let’s see. Yeah, there you go. Curtis says “shit, you better
do one for your transaction “manager, she must be a high C.” That’s right, absolutely. Absolutely. What’s the name of the book? The book is “Sphere of
Influence, Real Estate Agents”. I guess that’s Brian Icenhower. I-C-E-N, Hower, H-O-W-E-R, is the book. Brian Icenhower, cool. All right guys. Well hey, anything else? What did I miss? We got some team leaders on the call. You all want to give your
experience, your feedback, either agree or disagree
with what I’ve said? Feel free, unmute yourself. All right, if not, then
I’m just gonna assume that I’m right and that all this was gold. All right guys, well cool. Jason Fibbs, haha. All right. Thanks everybody. Yeah, appreciate that Tracy. You’re gonna assume that anyway. Curtis, you know me too well, man. I love it. All right guys, well cool. Thanks for all the info. You’re welcome Manny. Well guys, then we’ll go
ahead and we’ll call it on this one, I really
appreciate you guys jumping on. Hey, one thing, just so
you guys know is that my Kyle Handy channel is all on YouTube so you can find that on YouTube. It’s now just real
estate sales information. I’ve got two separate YouTube channels. One focuses on EXP attraction training and it’s called Agent
Attractors on YouTube so now my Kyle Handy YouTube page will only be for real estate sales. So if you’ve got real estate
sales stuff, questions, you just wanna learn more and more, we put all of these
recordings on my Kyle Handy YouTube page so that’s where you would go for more of this type of training. And we do these every single Monday. And just so you guys know
what I’m working on right now, is I’m actually working
on putting all of these into a podcast format,
’cause I got a lot of people that are like “hey, I just wanna listen in “or listen in the car or whatever.” They can’t maybe make these
meetings every Monday morning and so you will be seeing here pretty soon a link up for my new podcast. Which, again, don’t think
it’s gonna be anything crazy. It’s literally gonna be
the audio from what we talk about on these calls, but again, if you’re on the road or on the go and you want to be able to
catch up on what you missed, you’ll be able to listen
to it from your car or wherever you’re going. So anyways, cool. Jason, man, have a blessed
Monday to you, brother. Good to see you on the call. I know it’s early out your way, so I really appreciate you jumping on. Manny, again, good to see you guys. All right. Facebook, really appreciate
you guys checking in. I think this was the most
we’ve ever had at one time at least when I looked over,
I think we had like 16 people live on Facebook so
really appreciate that. And yeah, we’ll talk to
you guys next Monday. We’ll see you then, bye bye.

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