A real estate agent scaled from 60 to 400+ transactions and $500k to $4M in five years by following three stages: doing the work yourself, hiring support to mirror your systems across agents, then building leaders to replace you. The key move is hiring your first administrator around $300k-$500k in revenue.
Questions this video answers
Started ~60 transactions the first year they began working together; grew to over 400 transactions.
Top line grew about 7×; bottom line grew more than 10×.
About $500,000 GCI.
In the $300,000–$500,000 GCI range (speaker says 3 to 500,000 GCI).
Up to about $1.5 million GCI.
What must you do to scale your real estate business without giving your life away in the process? At Real Estate B School we are fanatical about a few things. It's helping you make more money, you know, have more freedom and have more of an impact in your family and in your community. So it's more money, more freedom, more impact and every tool and system, tactic and strategy that we help our members with align with those three things. So when I think about, you know, scaling a real estate business without giving your life away, this is a multi step process and I invite you to join us in a free training that I'm going to tell you about if you stick around to the end of this video. If you like these videos, give me the thumbs up and make sure you subscribe to the channel and turn notifications on. Alright, so when we talk about scaling our real estate business, you know, this word scaling a business is thrown around pretty loosely. And when I talk about scale, I'm talking about building your business in a certain way. Where the business scales, the business grows, but you're not stretched beyond your capacity. In fact, we can put it together in such a way where you're not going to have to put more hours or experience more stress. We can grow your business, you can make more money, have more freedom and have more impact. One of our members, Dave Friedman out of Charleston, South Carolina, we worked together for just about five years. I met Dave when he was a solo agent. So he was just beginning this journey of, you know, busy agent, you know, kind of losing his mind a little bit to wanting to be a business owner. And when I look at his journey, fast forward, you know, five years, he went from 60 transactions the first year that we started working together to over 400 transactions. So about a seven times increase in his top line and more than a 10 times increase in his bottom line. He took no weeks of vacation the three years his first three years in the business. He was new to real estate when I met him or he had just about a few years under his belt before we started working together. And consistently for the last three or four years he's taken anywhere from 12 to 15 weeks of vacation. Most recently he spent 30 days in the Galapagos island off the grid, two weeks with his wife Hailey and two weeks fishing with his buddies. And he actually just got his pilot license and he was able to, you know, invest a whole bunch of time in becoming a pilot. And he doesn't go to the office anymore. He works about two to three, three days a week he's launched multiple business businesses using the same principles that we teach in real estate B school. So I want to break down his journey into three parts. I do it, we do it and they do it. And this is pretty much how we teach the progression in real estate B school to build a seven figure plus real estate team. So I do it is all the disciplines and routines, skills, you know, cadence personally and professionally and organizing your day and getting good at your craft and getting good at convincing buyers to do business with you and to have, you know, convince sellers to list their home with you at the right price for commissions and fees that you want. Right. So all those baseline skills are going to help you build a business and get momentum to be able to go to in the we do it phase. The I do it are the first two stages of our progression in real estate B school. And that'll get you to about 500,000 of GCI. When it's we do it, this is where you're inviting in administrative support. Typically your first administrator is, is hired in the 3 to 500,000 GCI range. That first administrator is going to help you get all the way up to 1.5 million. Where you, they may hire a VA, a virtual assistant, one or two virtual assistants, but for the most part you'll get a lot of leverage out of that first hire. That first hire is your marketing coordinator. They're your listing coordinator and they're your closing coordinator. And so that next we do it phase is marked by getting administrator support and having that administrator build out systems. And you're also bringing in other salespeople at this point. So you don't need to really sell more than 500,000 GCI. You're adding in salespeople that are following those same disciplines and routines that you follow to get to 500 in the I do it stage. Now you're just standing shoulder to shoulder and you probably have four agents, one administrator. You can go from 500,000 to a million to 1.5 million. That journey for Dave, this whole journey for Dave, you know, he accelerated in about two years through the I do it to get to over 500,000. Took him another two years to get the 1.5 million and another two years or so to get to. He'll do over 4 million GCI. So he scaled his biddy business quite rapidly on the right economic model. You know, he's got sound, sound profit margins, a few leaders that are running his business. And so again, let me go back. I do it is 500,000. We do it is 502 million 2 million 5. And now this transition to they do it is, you know, your recruiting system, your agent onboarding system, your agent achievement systems. Those are systems you're building out in the we do it phase. With that key administrator. You're still in the trenches with your team doing the work of a salesperson. The step out comes when you have enough talent on your team where they can take over your production. And as long as you have the right value based commission splits in place and you have the right economic model, you can step out of production. We call that the exit part of this. And then you're able to own the business. And so at about 1.5 million to 2 million, you can exit out of production. It's not as complicated as we make it out to be. The thought of not selling homes for some real estate agents, it's like blasphemy, right? And it's like you can't even envision what that could possibly look like. And it's 100% possible. You know, I have served over 4,000 families in my real estate career and I've only personally sold about 220 homes. Even when I personally, you know, sold a property and bought a new property a few years ago, I did not represent myself. I was willing to pay a top agent on our team, actually two top agents on our team to handle each transaction because I know they can do it better than I can do it right. So you have to picture yourself in this progression of I do it, we do it, they do it. That you're going to find people that fit your culture, that you want to train up, and they're going to be able to do your position better than you could do your position. And so this shift to they do it is mostly mindset where you just need a couple leaders in the business, one sales leader and one operations leader. So it's not this complicated business. It's you as the CEO managing a couple people who are managing a handful of people each. So it's a 12 person business doing 2 to 3 million plus GCI. And for Dave, that was, you know, about three years ago, he hit the 2 million mark and he blew through the 3 million mark and hit 4 million in a couple years. And so this journey of scaling your business without scaling your hours, it's just picking off the pieces of the job of the things that matter most in the business, which ultimately is leading and managing and even managing, you get to the point where you're only managing a couple of key People and the cadence of the business takes over when they are doing it. The business has a cadence, it has a life. Everyone knows what they're doing every morning. Everyone's, you know, developing new business every day, right? We're setting appointments, we're meeting appointments, we're signing new clients, we're getting testimonials from our closings, we're using those testimonials back in our marketing, right? This self fulfilling, sort of virtuous cycle that we create by doing a good job for our clients, that is that they do it face and you're running a few key meetings at that point. When you're hitting the owner stage, you're running, you know, a team meeting. You're sort of responsible for the culture and maintaining the culture and maintaining the cadence of the business. Happens from the people in the business at that point. So it's a lot to cover. And you know, you may even have some limiting beliefs of like, is that really available to me? Can I really go from, you know, being a top agent to sort of scaling my business? You know, that training I put together, I go through five steps, I slow the whole process down of really what does it look like to go from where you are today to building a million dollar plus business, right, and what that journey actually looks like. And you go to realestate business freedom.com to get access to that training. It's realestate business freedom.com if you like this video, give me the thumbs up. If you haven't subscribed to the channel, make sure you do so and turn your notifications on and also comment on this video. So it's easy to say, hey, just go scale your business. It's going to be great. Without all of these sort of things in place and this realization that it's a multi step process, you're probably not going to get there smoothly as you could. So join me in that free training. Go to realestatebusinessfreedom.com and we'll see the next video. Ra.
