How I Went from $18/hr to $3000+/hr My First 5 Years in Real Estate

80% of your time is spent doing things that in a real company, I put quotes around it because generally agents aren't running real companies. In a real company, all the things, 80% of the things that real estate agents do are administrative in nature. A lot of them are critically important. Like is it important when you take a listing to set up photographer to get the remarks right, to get the images looking right to all those things? Critically important. 100% they have to get done. But do they have to be done by you? Most of the 80% you could outsource to someone making less than $10 per hour that's trained by a company that specializes in working, basically sourcing and installing an administrator into a real estate agent's business, taking over marketing coordination, listing coordination and closing coordination. You can find someone who can even pick up the phone and have intelligent conversations with your clients about the transaction. But even if you're the one still keeping that part of it, and that's too much of a stretch for you mentally, the whole point I want to share with you is that if you're not making the kind of money that you want, you're likely spending too much time on things that don't make you a lot of money.

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 to scale their businesses, I know what works and what doesn't. And my goal on this podcast is to share 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. All right, let's get the party started. Real estate business builders. This is probably one of the topics I'm most passionate about. So when you look at just being a real estate agent, very rarely does an agent make hundreds and hundreds of dollars per hour. If you're to work a 50 hour workweek in real estate times 50 weeks, let's call it 2500 hours, very few real estate agents are taking home more than 250,000. So if you do the math on that, 250,000 divided by 2,500 hours in a year is $100 per hour. Very few agents are netting, netting, taking home, and even more than that's possible. So the training today is going to dive into what my journey looked like and also what does it take to Navigate, you know, and actually give you guys a process that you could use every 90 days to incrementally start to spend more time on the things that make you a ridiculous amount of money in real estate and stop doing the things that don't make you a ridiculous amount of money in real estate. I'm going to start a little bit with my journey just so you have context and if you're sort of new to this world, maybe this is helpful. The point here though, when I launched Real Estate B School in 2013, is that I really wanted to teach others how to, even at the most basic level, understand the concept of leverage, which is systems marketing and also just delegating and automating, right? So My journey was one of, you know, 27 homes in my first 10 months in the business. So I cracked the code early on on lead gen and lead conversion. Then 44, my first full year of real estate, brought on a part time administrator to delegate and automate because I delegated. But so many things like marketing coordination, listing coordination, closing coordination, those activities don't make a ton of money and they're critically important. So I hired a licensed administrator, you know, for $20 an hour and she was able to handle all of that. Then 58 transactions, I cracked the code on what I now call leverage Legion. It's our pillar number one and leverage client care, which is our pillar number four. If you hear me talk about pillars, I'm talking about our million dollar agent method. So we've got four pillars. Leverage, lead generation, the appointment setting, process, consultation, frameworks at scale, converting at a high level, and then leverage client care. And if you really figure out the first two, you could do anything you want to do in this business, right? So the year I did 248 transactions, I only personally sold one of those homes. Now, million dollar agent method has nothing to do with building a team. We will teach you concepts of automating and delegating, even if it's to a virtual assistant in a low cost economy that's fully trained to do all of the admin in your business, right? So it doesn't have to be this complex like leadership and sort of managing people or any of that stuff. I will say the year we did 453 transactions, I worked like 40, 42 days that year when I was in town, I worked on Tuesdays and I only had 10 producing agents, you know, so I had agents doing, you know, five, six, I had a one agent close 19 transactions in a single month. And so these concepts the same Concepts I use to build this are the same concepts that you could use to launch your business. And it's all going to kind of fit in here in a second. When you look at, you know, my journey from, you know, an intentional decision to work less, you know, go from I was going to put eight days a week here, but, you know, seven to six and a half to. To six, shedding Sundays, legit working half day Saturday. So five and a half days, stop working Saturdays, dropping Fridays, then working just Tuesdays and Thursdays, and then ultimately just working Tuesdays as the business grew, right, so the business grew all in here, and I worked less. And as a result, and this is the punchline, and this is what I want to cover with in our training. You know, I even ignore 2007. I think I feel like I made every mistake in terms of wasting money. So even though I grossed 250,000 GCI, I had a bad deal with my broker in terms of splits. I was generating all my own leads, all my own business. And so that relationship didn't last very long. Although he was the guy that literally got me into real estate, I used him as an agent when I bought a handful of investment properties. And so he was instrumental in step change trajectory of my life. So when I say that it was a bad deal, I have a lot of admiration for this guy. So it took me my first full year, I made about a hundred dollars an hour. So if you're not making a hundred dollars an hour, please listen up to everything I'm going to share with you here. And if you already know that at some point you're going to get into our world and you want to have a conversation about the four pillars and leverage lead generation. We've got, you know, 12 Legion levers that you can implement in your business. Go to milliondollaragentmethod.com it's the only sales pitch I'll ever make. And it's a consultation with my right hand, Ryan, who will take you through all of this in terms of the systems and the frameworks and what it would look like. And if there's a fit, great, we'll talk about it. If there's not, that's totally fine as well. So $100, 150, $250 per hour. In 2010, that was the year we did 118 transactions. Then we went to 178, 248, 312. I went from essentially doubling, you know, from 250 to 500, 2000 to 2000, I think I did actually closer to 4000 because even when I was in the office I only worked about five. I worked about five hours. I got in late, left early, ran a few one on one meetings and ran the team meeting. Brought some energy in, looked at the numbers. So if I do the math, what five hours times 40. So 200 hours. Yeah, I should change this. It's really closer to $4,000. I think it's over $4,000. So doubling from 250, you know to 500 to a thousand to 2,000 to 4,000 as I work less in the business. Right. And so the, the, the point I'm trying to make here is that there is an intentional process that you need to follow and I'm going to go through it right now that even if you do this at a basic level this could radically change the way you look at your business. And maybe you can't do all of it right now but this process I'm going to go through, it will allow you to basically be honest with yourself about where you add value in your business. Not from a like where you think like man, I was busy today. You know I ran all these business errands and I dropped off a sign and I, I got that lockbox and I picked up a check from the attorney or I dropped off the due diligence thing. I did this and that. You spend 80% of your time and this is across the board. 80% of your time is spent doing things that in a real company I put quotes around it because generally agents aren't running real companies. In a real company all the things, 80% of the things that real estate agents do are administrative in nature. A lot of them are critically important. So there's no judgment on like is it important when you take a listing to set up photographer to get the remarks right to get the images looking right to you know, if you do a matterport or a virtual tour or video or are all those things critically important? 100% they have to get done right. But do they have to be done by you? And only if you want to make hundreds of dollars per hour should you pay attention to what I'm going to go through here. Okay. So this overarching strategy and it's a combination of automations some things you could just stop doing delegations we one of our systems in leverage client care. So that's the fourth pillar of million dollar agent method is hiring a virtual assistant to take over most of the 80% you could outsource to someone making less than $10 per hour. That's trained by a company that specializes in working, basically sourcing and installing an administrator into a real estate agent's business. Taking over marketing coordination, listing coordination and closing. Co closing coordination is somewhat client facing, but you can find someone who can even pick up the phone and have intelligent conversations with your clients about the transaction. But even if you're the one still keeping that part of it, and that's too much of a stretch for you mentally, the whole point I want to share with you is that if you're not making the kind of money that you want, you're likely spending too much time on things that don't make you a lot of money. So let's go through this. Basically, you're looking to essentially analyze where you spend your time. We have this two week time study. It's the most painful thing. I say painful because it's good for you. Painful thing you'll ever do is every day for 14 days straight, every 15 minutes, you're cataloging what you do and you're making an assessment. Is it business administration? Is it personal administration? Is it, you know, working on the business, working in the business? I'm not going to ask you to do that, but you could basically take a journal and take two pages. So I would do like two blank pages like this if you're watching the video. And I would write, you know, put a line basically like this, Put a line down the middle. I'm going to do it here. So basically it's not fancy. You're making a line in the middle and then you're dividing each page and you're writing these words. High passion, high pay. High passion, high pay. Then in the upper right, it's low passion. And I'm taking my time here because the work we do in here is different than like what I do on YouTube. And the way I go through it in here, I really want to impact you guys in a meaningful way. High passion, low pay, Lower left. Oh, this is where you're going to really hate me when I tell you all the things that you do that I love doing this, but it doesn't pay you anything. But you can keep doing it if you don't want to make a lot of money. Low passion, low pay. All right, so essentially you could see it. It's not rocket science. You're basically just recreating what I have on the screen there. Upper left is high passion, high pay. Upper right, low passion, high pay. Lower left. High passion, low pay. Low passion, Low pay is lower right. So basically you're asking yourself the question, what are the things you love to do in your business that pay well? Love to do that pay well. Be like, I love showing homes. Showing homes, that's the one that I get clobbered over. It's like, showing homes does not make you a lot of money. It's like, yes, it does. I show homes and they buy one of them. It's like, okay, but you can hire someone that will honor your relationship with your client even better than you probably could if you're running around busy all the time. Show homes better than you. You do and follow an exact system and say the exact words that you want them to say at the end of every showing and fill out a form. And we have a whole showing agent system. And you could pay that person about 25 bucks an hour and maybe a little kicker if they get a home under contract. Now I could look at that activity and put it in. For me, that was always low passion, low pay. I didn't love showing homes. It was always on an evening or a weekend. It was always getting into my personal time. But you could argue that that's high passion for you. And then you could argue that it's high pay. We didn't even let our. On my team, you couldn't show homes unless you were a showing agent. And our showing agents would hustle. They knew the inventory better than anyone. They were showing homes all the time. Essentially, they made about 60 to 70,000 clear take home. They didn't do any lead generation. They didn't have much stress. They put a ton of miles on their car, but they took home about 60,000 or so. I think one of our guys took home even a little bit more. And they worked five days a week. So they worked both weekend days, but they had schedules where they could take a day off or two days off during the week. So in that scenario, working about probably 3,000 hours, they were working pretty long days. But let's say 2500 taking home 50,000 would be $20 an hour on average world class showing agent. So if you want to make $20 an hour, you should keep doing that thing. If you want to make more than that, you should stop doing that thing. Let's take something a little bit more simple. How many hours do you spend after you take a listing? Let's say five, you know, getting listing, ordering the photography, ordering the pre inspection, doing all the things that are administrative in nature, that can happen over text or can happen over a phone call from a virtual assistant, calling an inspector. Or calling a photographer or whatever and following a checklist for you. Those are literally $10 an hour and you think that you're the only one that can do them. So this is where you need to be really honest with yourself and carry this around. So this journal here with and just write every time you sort of like maybe a couple times a day write the things in your journal that you're spending your time on. High passion, a high pay, low passion for me was new business development. That's having conversations every day with new prospects that come into my world or follow up conversations. Building systems that was high passion, high pay. Love building systems, marketing systems, lead generation levers. We've got 12 of them. Our database touch blueprint, the agent brand authority builder. Those are the first two we install in our million dollar agent method. So that's the homework here. This is work that we do. We are this group, we are real estate business builders. We don't screw around just watching, training and not doing stuff. So here's the challenge. If you don't have leads coming in, that's the first thing that we work on, a million dollar agent method. So if you, you know that that's a big problem for you. I guarantee, I make a very significant guarantee in our million dollar agent method. If you don't generate 40k of new business inside of the 13 weeks. We only worked together for 13 weeks to build out all the lead gen levers, all the conversion systems, all the sales frameworks and if you need leverage, client care, you get all of that as well. We only work together for 13 weeks. Inside that 13 weeks, I guarantee you'll generate an additional $40,000 of gross commission income. So if you know that's you go to milliondollaragentmethod. Com. Much love, much respect. We'll see you next week. Be good.