Building a Real Estate Team the Right Way

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Last section here, module seven. I just want to give you some thoughts on quote unquote the ride. You know, this is, this is a, I wouldn't say a difficult journey that you're embarking on, but there's definitely a right way to do this. Now most teams are built on a shaky foundation. To me there's an order of which you go about this, getting a top notch admin buyer agents, then isa, then some more staffs and then a listing agent. Most team leaders are held captive by their agents. We generate 85% of our business commission splits. I've covered that a bunch of times. The norm is crazy. It doesn't give you an opportunity as business owner to make any return on your risk and your investment. Buyer agent comp structures are messed up and we've covered that. You should have those lower brackets and agents have more leverage than they should. No systems, no culture to speak of those sorts of things. So if you want to build a, build a team and run a business buy, our lead gen platform is really the magnet that's going to get your team going. It's your recruiting magnet. You have to get your systems in order before you recruit. So when you have position agreements, a buyer lead management policy, production standards, buyer packets, a buyer presentation activity, tracking sheets, online reporting, that's what you're showing agents to show them the value that you present and why you have lower splits than others. Tracking and routing technology in terms of yard marking, if by phone, weekly team rhythm, we cover that. Huddle calls and then getting the word out. We have a video blog that we use ISAs. Real quick on this. I put this slide in here because it really concerns me at the rate at which teams and even just solo agents are going out and hiring ISAs to call their leads. And I think it's a huge, huge mistake. Huge mistake for a bunch of different reasons. Ultimately you have to master lead conversion and then you control the entire game. In my opinion, I brought on a buyer ISA when I had a bunch of productive agents. The year I brought on my buyer essay we were due, we did 250 sides. So the culture of prospecting and agents having to fend for themselves is really, really important. I don't think there's anything I really would have done differently. You know, this just kind of describes, you know, I made a few bad hires when it came to agents, but that was just part of the process for me. You know, now we look for someone that's been successful before in other areas. You know, even if it's not real estate. And someone that really needs to be, you know, is they need to make money, I guess is another way to say it. Newer agents are fine for us. And then I already covered the ISA part here. Agent comp. You have to really understand why your comp is what it is. In most markets, you can show a path to a number. And for me, it's $100,000. You come on my team and I'll show you a very, very clear path to 100,000 with no expenses.

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And there aren't a lot of agents, I think less than 5% of agents in my market net $100,000. They're my splits. I have examples of other of agents making very, very good money. One of our agents has a shot at breaking through probably 175. He'll break through this year. And culture has been way more important than I thought it was going to be. I've covered all of this here. Gross margins on the buy side, the goal is 60. For our team, we're running at 57% currently, so we're running a little bit less than 60. And our listing gross MAR is 75%. I think we're pretty much on target there. Overall gross margin target is 65 to 68%. We're on the low end there in 65%. So every dollar that comes in 65 cents goes is left over to pay expenses, which run about 33 to 35 cents per dollar. So in terms of you could do the math, you know, we run basically a little less than 70,000 per month monthly expenses. This year has been pretty cool. We've as we've had more and more sales every month since January. We started slow in January. Our expenses have decreased every month consistently. So we run about 65, 70 per month. Marketing ROI. I've obviously covered that. Our gross margin, 65%. A 40 of expenses. You know, this model is not for the faint of heart. You know, you have to do the cash flow forecast, marketing, ROI tracker, those sorts of things.