How I Tripled My Real Estate Production with 2 Hires

I think every one of these topics is like my most favorite thing. But if you are a real estate business builder, this part of the journey is getting leverage for sure with systems. But two key hires. I mean I say tripled my production but probably ended up quadrupling my production.

The real estate industry has failed to create a clear path to time and money freedom. Having helped over 5,000 families in my real estate career and coached thousands of agents to scale their businesses, I know what works and what doesn't. And my goal on this podcast is to share it all with you. The good, bad and ugly of building a highly lucrative lifestyle business so you can focus on what truly matters in life. You won't find any hype or fluff on this show, just real world tactics and strategies that get results.

You just gotta do the work. If you don't know anything about me My name is Lars Hedinburg. I'm the creator of the Million Dollar Agent Method and the founder of Real Estate B School. Couple thousand agents have been through my paid coaching program. I've been at this for a long time. Got into the business in March 2007. I hired my first administrator. So that's one of the key hires. February 2008 as the market was starting its implosion, the GFC Great Financial Crisis was coming just raining down on us. We went from 15,000 agents in our market to 5,000 agents and it was just a bear of a time. My first admin feb 2008 and my first administration agent who doubled as my showing agent in August 2009. So what is that, 18 months with just an administrator and then probably took another 12 to 18 months to bring on another couple agents. So went from 27 homes. My first full year with no admin, my first 10 months in the business, no administrator, 44 transactions with part time, then turned full time administrator and this was a local licensed administrator administrator and then brought on my first buyer agent who also was a showing agent of mine in late 2009. We did 58 transactions that year. I did 54 of the 58. My new agent did four transactions and then we did 118 in that next year and then 178. Then the year we did 248. So this was only three years after I started the team. I exited production which was. It was a goal of mine. I did one of the 248 transactions and it was a very profitable model and it allowed for a level of freedom that I see is really uncommon in the industry. So that is part of this, you being in this community and being attracted to these types of trainings is even if you're not at the point in your journey where maybe you don't think you can hire an administrator or you don't think you'll ever have a team, quote unquote. There is no easy way to do real estate and make an unreasonable amount of money money in a reasonable amount of time. That is the code that we are cracking here together. Which is why this is not called, you know, like our core program is million dollar agent method. The way to get to a million dollars is you not doing everything right. So it's a million dollars GROSS and probably 750,000 take home in that model. Right. But you're not doing everything in the business. Right. You're not showing homes every evening and weekend, you're not entering every listing into the mls. Right. You have an administrator and I go through exactly what that looks like and what they focus on. And then you have other people doing the parts of the job of a real estate agent that is just not fundamentally high paying. Let me break it down into what. Why would you even consider going down this path of leverage that It's a full 80% of the tasks that happen in a real estate agent business. One of these trainings I did, I just pulled up Chat GPT and I asked chatgpt break down everything a real estate agent does. And it organized it perfectly. It was like 12 subcategories, so 12 major categories like closing coordinator, showing agent, listing. Like it did a really good job of breaking it down. And then within each of those major roles, you know, social media, marketer, courier, listing agent, you know, running the financials of the business, building systems like all the things even within each of those it had all the subtasks, the categories and the subcategories. And then it listed out some details on the tasks that have to happen on the daily, weekly, monthly. And it is overwhelming. The bottom line of it is that you fully to sell, let's say if your goal is even to sell two to three homes per month, which is the promise that we make a million dollar agent method, within 90 days we're going to add two to three transactions per month in your business. No cold calling, no paid leads whatsoever. But let's say that's where you want to get to, you're going to spend 80% of your time even in that two to three homes per month doing things that are administrative in nature. Yeah, you could argue that. Well that's just the job of A real estate agent is to, you know, prepare for a listing appointment, go out and take the listing and then coordinate the pictures and coordinate the pre inspection and write the MLS remarks and enter that listing into the mls. And you know, when offers come in or you get a property under contract, who else's job would it be to deal with the other agent and the closing details and coordinating with the attorney and the inspector and repairing the good. Like who else would do those things? Those are the job of the real estate agent, aren't they? And I would argue that if you want to make a lot of money in real estate and not work a lot of hours, you have to be willing to shift your mindset around a little bit of people leverage. And even if it's just these two people, you know, I was able to go from basically that 60 homes to 180, but really two, 250 homes with an administrator and two or three buyer agents, you know, so it was more than one person, but two positions essentially. And the year we did 248 transactions, I did one of those transactions. At that point we probably had more than three agents, but one of them stepped into a listing agent role and then I was able to step out of product. And so I did have this mindset of building a business that operated like a business where the owner of the business doesn't have to do everything in the business, which is radical thinking for real estate agents to think that way. And you'll only head down this path if you want to take home free and clear 25, $30,000 per month or more. Like if you just want to work 50 hours a week and take home, you know, so sell 18 homes a year and you know, have a third of your deals go to expenses. So net, net you're grossing or netting, you know, 10,000amonth, maybe 8,000amonth. Keep in mind that only 1% of agents sell two homes per month on average. So 1% of agents in the US sell 24 homes or more in a year. The odds are stacked against you to achieve the level of time and money freedom that, that you're likely after. And we get on a lot of calls with a lot of agents and there aren't many agents that don't want to sell two to three plus homes per month on top of what they're already doing. So they're seeking guidance in selling more homes. A lot of the advice that they think they're going to get or they even think they're jumping on a call to talk about this Is the paid lead source that we have or this is how we're going to run Facebook ads to a landing page to to do a thing that's not prov proven that every agent that we talk to that has gone down that path where someone that had has never used this lead gen tactic in their own business because they're not even a real estate agent, has now convinced the industry that I can run Facebook ads for you to generate buyer and seller leads. And those are magically going to convert. They convert way less than 1%. Those systems very rarely are they in the business, that person's business for six or 12 months after they were technically installed in the business. The approach you take in your business even before these two hires is that the systems that you build out are going to be in your business forever. So let's just take one of our four pillars and these four pillars are the same in any real estate agent's business. This is the four pillars of the million dollar agent method is leverage lead generations. That's lead generation, the appointment setting process which includes the nurture and email. 90% of people that you generate a lead, they're not ready to transact. So you need the nurture sequences. Also how to qualify appointments, the sales framework. So how to sign folks and get them to play by the rules, the rules of engagement, working with you and pre basically work out ahead of time. When you do a good job they're going to refer business to you. So there's more to just signing them as a client and then the leverage client care. Leverage lead generation and leverage client care is why I was able to, you know, go to 248 transactions and I only sold one because I had cracked the code on lead generation. Not paid, not cold calling, but I cracked the code on being a good marketer. Our expired system, our FSBO system, our new construction system, our motivated seller system, our yard marketing, our social proof, our database touch, our digital footprint, all of that, right? So all those systems running in the business, all producing one to two plus transactions per month. That's how I was able to build a business that scaled and, and I was the one that installed the systems that generated the leads, that converted them, you know, to a face to face and then got them to be a loyal client and then build out the systems around client care. And so with those four pillars as the backdrop, realizing that there are dozens of systems that ultimately need to get installed in your business for you to be able to scale and then once you install the systems, one at a time. Then you can hand them off to an administrator or, or to a junior agent or a showing agent. Right. So it's getting busy enough and having the system so automated. Where leads, you know, mostly seller leads. We want to focus on listing leads. They're generated like clockwork. And then we use those listings to generate buyer leads on the cheap. Instead of paying Zillow for, you know, a 40% referral fee at closing for a buyer lead, we can generate a lead off of a closing for almost next to nothing because we've already generated the listing. We use that listing as leverage the same way that Zillow does. They use that listing as leverage to sell that lead back to the community and sell it multiple times. So there's two key hires that you'll make in your journey to absolute financial and time freedom in real estate. And it's not complicated. Your entire vision could be to build a million dollar agent business. The whole vision could be two agents, two junior agents, one administrator, maybe a VA under that local license, admin, and you running the listing side of the business. That's 100 transactions. You're working 40 hours a week. Your agents are probably working 50 to 55 hours a week. So they need to be right, fit agents that are willing to do the work. They're clearing about 100, 125 grand a year. As the team owner, you're clearing probably 6 to 700,000 or so. And you're not working crazy hours. Right? So if that's something that you're interested in, at least building the baseline systems, listen, you don't have to go to a million dollars of GCI. You can decide. You just want to get to two to three transactions per month, which ultimately is net, take home 20 grand net net after expenses. So there are different stages to get to a million. There's to get to 100, get to 250, get to 500, then go to a million. If you want to do any of those things but you don't know how to build Systems, go to milliondollaragentmethod.com it's the only commercial you'll ever hear from me is milliondollaragentmethod.com and I only share it with you because most agents suck at building systems and they're distracted constantly by stuff that doesn't work. So we only use proven systems, install them in your business, you own them forever. And we only work together for 90 days. So milliondollaragentmethod. Com. Much love, much respect.