Lars Hedenborg walks through a 10-question self-assessment for real estate agents, then explains why eXp Realty's cloud-based model with equity awards and multi-tier revenue-share disrupts traditional brokerages. He shares his own sales history and income examples, plus how to build leveraged residual income through agent recruitment.
All right, so welcome to the truth about EXP Realty and honestly why it's the fastest growing real estate company of all time. And I say this as now a two year insider, having been an outsider to the EXP platform for probably four years, sort of dismissing it or actively or even passively sort of making fun of it. So I'm going to get into that. I want to also get into how we can get into this platform and never pay for coaching, training or technology ever again. I'm Lars Tedenberg. I'm the founder of Real Estate B School. I've been at the game of real estate for a long time. I've been coaching for a long time. I have a really interesting take on some of this and a good, good insights about what I've learned so far. So here's the warning. And this is like me wishing somebody would have slowed me down in the early days. If you've like quote unquote heard of EXP or you dismissed it and you're sort of begrudgingly here, you're halfway paying attention. You really need to slow down and study this model. Somebody that cares about you, if it was me, that's me, I care about you. Or somebody invited you here to take a look at this platform because for some reason you're not in the platform and it's most likely that you don't actually understand why the platform is different. And that is what we're going to cover and today. So I want to make this call all about you. I'm going to take you through a series of questions and if you're able and you could journal the answers, just write 1 to 10 in a journal and grade yourself 1 not so good to 10. Based on the 10 questions I'm going to ask you here, I want you to rate your current platform. So your real estate business, it is your business and right now it's with a brokerage or you're independent and that's your platform. That's where you're running your business. On top of that's what we call a platform. And so I just want you to sort of grade your current platform. So the first question is how would you rate your current real estate business overall? When I say overall, the hours you work, the money you make, the stress that you endure, overall, 1 to 10, how would you rate your current real estate business? Question two, is your broker or brokerage actively helping you grow and scale your business and your life? Like, are they actively in it with you locking arms to make your business and Life better scale of 1 to 10 there's no only a couple of these questions are absolutes. So there's no absolute answers here. It's a spectrum. 1 to 10. Question 3 Does your brokerage offer a powerful technology stack? So that's a set of technology tools that directly help you grow your real estate sales. Scale of 1 to 10 just think for a minute, hey, the technology that my brokerage provides, is it like actually helping me grow my sales? It's 1 to 10, right? Question 4 Are top agents in your brokerage the very best agents regularly, regularly giving away their very best stuff to you? So is the top agent in your brokerage saying, hey, here's my listing presentation, here's what I used to farm this neighborhood, here's how I use social media or I hired this VA or you know, are the top agents giving away their best stuff? 1 through 10 Question 5 Does your brokerage offer affordable health insurance options? So are you taking advantage of with your current brokerage health insurance? Right. A full third of real estate agents have no health insurance. A third are paying like a Blue Cross Blue shield and typically paying compared to the EXP health insurance program, paying more than double what they should. So is your brokerage offering a good option there? Question 6 Does your brokerage give you stock just for selling homes? This is one of those absolutes. If it's a no, you have to give yourself a one. If you're on our platform, you're thinking differently. It's a 10. Question 7 Is your brokerage partnering with you and showing you how to build residual income? So is your brokerage, are you on the transaction treadmill? And all they're sort of giving you is like sell more homes, sell more homes, sell more homes. Or are they showing you how to build residual income? Question 8 Is your brokerage offering timely and relevant training to thrive into what is for sure going to be an absolute shift storm coming up? Like, are they giving you a bunch of training and tools and helping you, like in real time, get through and prepare for what's coming? 1 to 10 question 9 is your broker brokerage teaching you how to gracefully exit real estate production? Like, are you working on an exit strategy with your current broker? This could be a 1 to 10. If you've never had a conversation about exiting real estate production with your brokerage, it's a 1. Question 10 how excited are you about the future of your real estate brokerage? Scale of 1 to 1010 is like I couldn't be more happy about the platform that I've plugged into one is like, I could care less about this brokerage. Have no attachment to this brokerage. Right? And a bonus question, and this sort of sets the stage a little bit for our time today. Do you have a clear roadmap in place to scale your business and crush your financial goals so that you can live a life of meaning, impact and Satisfaction? Scale of 1 to 10 when I asked that question, clear roadmap to scale your business, crush your financial goals, and ultimately live this amazing life. If you have no roadmap, you have no plan whatsoever and your platform, you're really discouraged about it. It's a one. If you have a plan in place and you're scaling your business and you're financially, you're investing and building residual income earning stock, and you're really able to show up in the areas of life that really matter. That that's a 10, right? So 1 to 10. So just think about that. Where did you end up? If it was a report card and you average those 10 scores and you average like a 5.5 out of 10, that's a 55. That's a failing rate, right? Oftentimes, though, we allow the platform that we're plugged into, we make excuses that maybe it's not their position to provide value in all the ways that I just went through. And Lars, those are all leading questions because we're talking about the EXP platform. But isn't it time we demand more from our brokers? The harsh reality is that the industry has failed to create a path to financial freedom. Traditional brokerages, they only have the next deal to offer you. It's this treadmill. It's all linear income, meaning you just go after the next check, right? And you have to do it. Productivity, coaching and traditional training, those methods aren't getting it done. And most agents will not be able to retire gracefully. So the good news is that today you're in the right place. If you know there's another level to your growth. You want to hang around with folks that are really getting after it. You want to be able to systematically increase your net worth and your time off or away from your business and to use your business to be able to fuel that right? And probably most importantly, you want to make the shift from the transaction treadmill, just grinding, working out of bounds evenings and weekends to more of a lucrative lifestyle business. You're in the right place. But I will say this on the flip side. There are some of you that are here today that you're not where you want to be financially, you're working evenings and weekends. You're letting those around you down. You're stressed more than anyone you know, you can't get it together and you're constantly missing out on the areas of life and that matter more than real estate. So just know that you're in the right place if you're not in a good place as well. A little bit about me, so I get a little bit of credibility. First and foremost, I am a father, I'm a husband. I love business. I have a podcast called Real Estate Team Builders. I wrote a book called Scale or Die and I follow Jesus Christ, unashamed, super bold about it. When I built my business, I didn't have or when I started in real estate rather, I didn't have any sales, marketing or business building experience. You know, fast forward, 5,000 plus families served in real estate. I went from a solo agent in 2008, my first full year in real estate. I sold 44 homes to over 400 transactions. Just five years later, 2013, I launched real Estate B School. I've helped hundreds, if not over a thousand agents and team leaders grow and scale their businesses in a very specific way so they had more freedom to show for growing that business. At this point in my journey, I have multiple seven figure liquid net worth, meaning I could transition assets in as little as three, probably seven days. And that's my liquid net worth. Whatever you can get into cash in less than 7 days is your liquid net worth. And I average about 85 or so thousand a month in residual income, which I'll get into a little bit later. And I work an amazing schedule Monday through Thursday, all the vacation that I really want to take. Here is the thing though. I have made all the mistakes. I promise you. I have made more mistakes probably in my personal life too, but for sure in business, I've made every mistake you can make. I think one of the key differences if you get to know me is that I want to share those mistakes with you so you can avoid making them yourself. This is me, my first year in Real Estate, 2007. Our son was born in November. So this is probably 2008 on the right where I'm just consumed by Real Estate. 44 homes sold in my first full year. 2008, I was working out of bounds consistently. This is the first family vacation we took when I after I got into real estate, my wife still remembers the deal fell apart, didn't even go through. It was an $850,000 short sale. Ironically, it's in the neighborhood that I live in now. But I sacrificed time with my family for a deal, right? Kendall comes into the world. April 2010. Now I'm really sort of feeling the pressure of building this business in a way that it could allow me to have some freedoms. And I figured it out, scaled over 400 transactions in 2014. And that year I think I worked 42 days. So I figured out levers at a very high level. We lived this amazing life. And so at the end of that painful journey, 2013, I started a coaching company, real estate B school, to help other agents do the same thing. To use concepts of leverage and your passions versus, you know, what pays well in your business and to empower, whether they're virtual assistants in other countries or physical, you know, couriers, or showing agents, you know, all the tools and systems and people to allow you to grow and scale your business. All of that said, I still see these big challenges with the real estate agent. If you're a traditional solo agent, you stop making money. When you stop selling. There isn't an exit strategy. And I think traditional success in our industry, the hours and the stress are not worth the sacrifice. So then you go the team model where you spend all this time helping your agents succeed. Eventually they leave you. Ultimately you're training the competition or you cut these one off deals with agents so they stay and your economic model becomes crap. And then you're forced to stay in production as the team leader. And now you have massive overhead, you know, a marginally profitable business and you're doing a ton of transactions. Or you have this bright idea to become an independent broker and now you're just playing the churn game, right? Where agents think the grass is greener all the time. Low or no profit margin. Margin. In most brokerages, they make up for it with title and mortgage. And ultimately there's no real way to add value and truly impact agents lives in the brokerage model. But I think the biggest challenge, and this is something you need to grapple with independent of us ever partnering together at exposure is the exit plan challenge. What is your plan to exit real estate? Right. There's no retirement plan. So what's your plan? Let's say you want to earn income of 20,000 in retirement, which is 240,000 a year. Let's say you're able to earn 5% on your money. You'd have to have $4.8 million in the bank. I learned this from Tony Robbins in Fiji at wealth Mastery. Tony said the key to being wealthy is to Spend less than you make, number one, which is hard for some people. Invest the difference. Number two, so that you earn or you accumulate a critical mass of investment capital, which is the savings where you could live off the interest. So 4.8 million earning 5% will give you $20,000 a month pre tax. Right? So it's pretty simple math. We'll get into it a little bit more later. And I'm going to challenge you to look at your own numbers. But that's probably the biggest challenge that I see. So let me talk a little bit about my rejection and my massive ego. My gate being closed to EXP for many years. These are two really important people in my life. Aj, who's on the right, better looking, taller guy than me and John. This is at an event in Miami in early 2018 where AJ is telling John and I and John Mikish is in the middle there, who's now my sponsor at exp. AJ was telling us about exp and like his organization or his team grew to 200 people. And we're like, he made $500,000, $5,000 residual income last month. And I'm like, I don't even really know what you're talking about right now. I remember John specifically. We sort of made fun of him a little bit and we're like, he's kind of in this crazy, crazy land. But then I continue to watch AJ and these are like from his Facebook feed. I coached AJ and Abby as they were scaling their team just north of my market, which is Charlotte there in Lake Norman, where I see that they retire from real estate sales. They do a 12 month trip in an RV, they move to Puerto Rico. And just this like unbelievable, sort of like baffling story. But then I put the pieces together in August of 2020, AJ has this post. Remember in early 2018, AJ was sort of telling John and I about EXP and his organization had reached 200 people on August 19th of 2020. Huge milestone hit yesterday. 2000 agents in my Rev show organization. And then just tells the story of KW and how he loved his time there and where EXP was and where they are today. And then on the right, another post. I think this was on his Instagram where another great month. My revenue share team closed 1,008 houses last month. I'm like, 1,008 houses? You live in Puerto Rico? What are you even talking about? And then I see all these posts on the 22nd. An awesome day. It's revenue share day. And you know how fast my organization has grown and all of that. And so these seeds are planted in August 2020. But then on September 5, 2020, John calls me. So John, you could see I worked with him for a few years in real estate B school to the point where he could physically, I think it was for 14 months, leave his real estate team in Lake Norman, North Carolina. AJ and John are in the same market and go off the grid. And so he comes back on the grid after not shaving for 14 months, and he calls me and he says, I have something to tell you. Are you sitting down? Instantly, I think I'm not kidding. Either terminal illness or something's going on with Jen, like divorce or an illness, something really, really bad. Because he was so serious. He said, I'm moving my team to expand my heart. I'm not kidding. My heart skipped a beat, and my palms instantly started sweating. And I instantly launched into. But we made fun. Like, we decided that that was stupid, and it was like this scheme and like it wasn't anything we'd ever do. And then he stopped me in my tracks and said, have you actually studied the model? And I hadn't studied it. And it's been said that the most expensive thing you can own is a closed mine. 100%. I was guilty of this. The truth is I didn't see the platform for what it is because I dismissed it. I made up my own story about what it is, and I never actually looked at it. So fast forward to this is Cabo. In March 2021, August 2020, AJ hits 2,000, and this is what, like, seven, eight months later, he's at 3,750. He, since, you know, has 6,000 DOL agents in the organization that he leads, Game Changers. And I'm going to talk more about that in a little bit. But here we are recreating that picture, right, where sort of the band is back together, and now we're sort of all understanding what the platform is about. And I only tell this story because some of you are at a point in your studying this model where you've dismissed it or you think it's something that's not. And I can understand that because nobody could have more aggressively dismissed this than I did. And so. But once someone I trusted, John, called me and he forced me. He called me out, first of all, and said, have you actually studied it? I'm like, no. Like, one person sent me one video, and I watched one minute of one video, and then they didn't actually take me through a due diligence process. So that's all we're asking you to do. To do is this is one step of your due diligence process for exp. Whoever invited you here. Your job after this is to go back to them, ask them questions, say hey, send me more videos. I want to learn more. I really want to understand what you guys are talking about because I don't quite get it. Or you're going to say let's go, let's do this. I totally get it. I finally slowed down and I actually understand it. At this point in my journey though, I can say with every ounce of my being that the fastest way to grow and scale your real estate business and create a massive leverage income stream is to partner with Game Changers Nation at EXP Realty. And you could do it without ever paying for coaching, training or technology ever again. I am going to show a nine and a half minute video called EXP Explained in nine minutes and I want you to pay attention to this video. I want you to look for things that you maybe didn't quite understand about the platform and I'm going to give you my take on this nine minute video when we come back. But this is EXP Explained in nine minutes.
Welcome to EXP Realty. This is an overview of one of the most innovative real estate brokerage models today. A global community designed, powered and owned by our agents and partners transforming the real estate experience. Our family of agents build their own businesses while having equity opportunities in EXP World holdings. As technology has transformed entertainment, hospitality, transportation and retail, it's now transforming the real estate industry. There's been little to no innovation with the old fashioned real estate models. Franchise brokerages all start with the company at the top, which feeds down to regions, followed by offices or market centers, followed by a local manager or team leader. The focus was on the brokerage and their brand, not on the agent and their business. The evolution of real estate brokerages has always been driven by how agents get paid. This can be clearly seen with EXP's growth compared to old fashioned models. At EXP Realty, we've eliminated old fashioned bloat by removing franchises, territories, brick and mortar and redundant layers of management. By doing this, we've created opportunity to give equity back to the agents and have made the agent the focal point of their business. We do this by having multiple income opportunities within our model and leveraging our fully immersive cloud office environment where agents enjoy 24. 7 access to State of the art collaborative tools, coaching, support and socialization. EXP Realty continues to experience consistent record breaking year over year growth with a mission to reach 1 million agents globally. It all began in the United States and Canada with Exp Realty perfecting the model over the first 10 years laying the foundation for our global expansion. Our international footprint now expands over six of the seven continents. Our core values define our culture and ensure decisions are always aligned. Like Being agile allows us to make adjustments at any time for our agents and their clients. EXP is at the forefront of technology. Every agent gets their own lead generation CRM system called KVCore. For a non exp agent, it could cost over $5,000 a year. This industry leading system provides you with a behavioral driven personalized idx, website, CRM, email and text campaigns. You'll always be notified of your contact's behavior, helping you convert and close more transactions. Skyslope allows agents to manage their business totally paperless. This all in one transaction management system helps you effortlessly stay organized with your transactions. All of your important data is contained on one detailed checklist so you have everything in one place. One of our top priorities is building our own technology. Our Back Office Business Intelligence center gives agents both autonomy and great visibility into their business. Within your dashboard, you'll be able to monitor your performance metrics, commissions, revenue share, equity awards, transactions and more. Whether you need a quick postcard or a full presentation, the EXP Marketing center has it all. You can edit marketing collateral within minutes by choosing from over 5,000 marketing pieces. In fact, when a new listing is added to your mls, you'll get an email with marketing items created automatically for your listing. Welcome to EXP World, our three dimensional virtual cloud based office environment. Meet, learn and collaborate with agents and staff from anywhere with an Internet connection. Join a meeting or training within a community via your phone, tablet or computer. In EXP World, agents get real time live support from our over 1000 full time staff members. Access over 80 hours of live training weekly in Exp World. Our training focuses on industry best practices, how to grow profitable real estate, business, professional development and much more. These sessions are taught not only by our highly experienced training department professionals, but also by our top producing agents and teams from around the world. EXP Realty agents also have access to Workplace by Facebook which is a dedicated and secure working space to connect, communicate and collaborate with other agents and EXP staff. You'll be able to use familiar Facebook features like news feed, groups, messages and events to get things done quickly and efficiently. We understand that some agents enjoy the office setting from time to time, which is why every agent at EXP gets a global membership to Regus Shared Offices and their new brand spaces. Regus offers 3,3000 office locations in over 900 cities in 120 countries. Every agent at EXP has the opportunity to become a shareholder in EXP World Holdings. Earn Equity awards for closing your first transaction each year Capping each year and every time an agent you attracted joins EXP and does their first transaction. Our Agent Equity program helps agents prepare for retirement. You can elect to take 5% of your gross commission per transaction and buy the company's stock at a 10% discount. Our ticker symbol is EXPI. Note that some stock awards are subject to vesting. EXP's ICON agent program is unmatched within the industry. Our founder, Glenn Sanford, strongly believes that top producing agents should be rewarded for their contribution. There are two ways to qualify for Icon $5,000 paid in post cap transaction fees or $500,000 annual GCI with a minimum of 10 closed transactions. When you achieve Icon status, you'll receive 100% of your cap that you paid to EXP back in the form of company stock, essentially putting you at a 100% commission split. One of the most exciting aspects of our compensation plan is our revenue sharing model, which allows you to build a monthly leveraged income by attracting productive agents to the company. Here's a breakdown of how the revenue sharing model works. Tier 1 contains the agents that you personally attracted to the brokerage. For each transaction on this tier, you'll get 3.5% of their total commission. This amount is taken out of exp's 20%, not out of the agent's 80% commission. Once the agent has hit their annual cap, they start receiving 100% of their commissions. You therefore no longer receive income from their deals for the remainder of the year, which is why the max you can earn on this tier per agent is $2,800. You can earn on all seven tiers, but it's contingent upon how many agents you've personally attracted to the brokerage and their level of production. For example, if you attract five producing agents, you earn exponential share in commissions on Tier 1 and Tier 2, which are agents that your Tier 1 agents attracted. If you attracted 10 producing agents, you earn exponential share in commissions on Tier 1, Tier 2 and also on Tier 3, which are agents that your Tier 2 agents attracted. On Tiers 4 through 7, you'll still receive a reduced share in commissions, which is called our expansion sharing. So let's go through a quick example of how you can create a monthly leveraged income through the revenue share program. Here's you you personally attract five capping agents. Then each of those five agents attract five capping agents of their own, giving you five agents of Tier 1 and 25 agents on Tier 2. For the five capping agents on Tier 1, you earn up to $2,800 each, and for the 25 capping agents on Tier 2 you earn up to $3,200 each, giving you an annual leveraged income of up to 94,000. But note that these figures are based on each one of these agents capping, which is approximately selling $2.7 million of real estate per year with an average commission of 3%. You can speak to an exp agent or staff member for further explanation. Express offers a revolutionary new home selling option for homeowners who want to skip the hassle and uncertainty of a traditional home sale. The platform connects sellers with institutional buyers who can pay cash and close quickly. Unlike other ibuyer platforms, Express offers allows agents to receive real estate commissions. At exp, you'll never pay a desk fee, royalty fee or franchise fee. Every agent is treated equally and is on an 8020 split which caps each year at $16,000. You then receive 100% commission for the remainder of your year. Here's the Amazing it's only $149 to join exp and that includes your first month's $85 brokerage fee on each transaction. There's a $25 broker review fee and a $40 risk management fee. The risk management fee caps at $500 each year. We're also excited to announce that we've added a low cost healthcare alternative. Our agents get a one on one virtual consultation to ensure they've selected the right plan. EXP Realty continues to set industry records, becoming the number one independent brokerage in the US for closed transactions. For more information, reach out to the agent who shared this video with you.
I love that last part there.
Welcome to EXP Realty.
The last part where it says, you know, once you've seen it, you can't unsee it. I think that's, that's definitely what I experienced after having dismissed this for as long as I did and then finally just looking at it and just calming down a little bit about it and just say all right, it's just a brokerage, they've chosen a different platform and I'll get into a little bit of what excites me most about that now. But really when I looked at it and at this point I'm already you Know, seven, eight years into real estate beef school and I've done the ton of real estate sales. This is straight from real estate B school website. Like my mission in life, my obsession is to help agents and team leaders scale their businesses so that they can achieve true freedom of time and money and ultimately have greater purpose and impact. So it's like straight aligned with my core focus and values. And whether I liked it or not, this thing is doing its thing. So it's disrupting our industry at a pace that is twice as high a growth rate as remax and twice as high a growth rate as Keller Williams. And innovation is happening in every industry, right? So Exp Realty is just doing what is happening in other industry. They're just doing it in the real estate brokerage space where there are businesses that succeeded in brick and mortar that are non existent in this anytime anywhere world. The Blockbuster to Netflix, right? The Circuit City or anyone selling anything competing with Amazon if they're not on the Amazon platform now selling their stuff. And same goes with all the traditional brokerages. And now Exp and this quote by the blockbuster CEO back in 2008, Jim Key says neither Redbox nor Netflix are even on the radar screen in terms of competition. Can you imagine saying this about Netflix? Even Redbox? This is Redbox in my local market. They have 52,000 kiosks in just the US. Tony Robbins at one of his events, and this is a little outdated, but compares Airbnb that owns no real estate only 10 years old is worth more than a company that's been around for 100 years and has a lower market cap, right? So the world of business has changed. And I'm going to go through a very, very brief history of the traditional real estate model. This is the last hundred years. This is the model that you'll see for the last hundred years. And essentially these are all companies, right? It starts out with an international. So pick your franchise, doesn't matter which it is. An international goes out and slices up the world or the United States in regions. They go out and find these franchise owners. They sell franchises who then hire people, staff, team leaders or market center administrators, recruiters who then go and find agents and then agents go sell a bunch bunch of homes where all the income generated in this model, I mean it's kind of a reverse pyramid, but all the income is generated by the agents, right? So they're like low man on the totem pole, but they feed the whole machine. So wipe that out for a second and you look at what would it look like if we put the agent front and center, right? And they instead of being the low man, they were the man or woman and everything revolved around them, they became owners in the company. You know, staff would, could be wiped out the overhead there. Owners don't need to exist anymore because this is not a franchise model. There are no regions. This is growth without borders. And when you think about like aligning the interests of like the corporate office with the agent as an owner, then it becomes fun. And then we can look about like what are the lead gen tools, the technology training, like what if we could do health insurance or give stock awards instead of trophies and you know, reward folks that are bringing their friends over to the companies through revenue share. And what if we can make this thing so freaking collaborative that it would be irresponsible for agents not to hang their license with exp? That's a. I don't know if it's the exact words, but that's as direct a quote from Glenn Sanford as you can get. And I remember asking myself, literally, Lars, are you really going to sit on the sidelines while EXP continues to disrupt the real estate industry? In that moment where it was decision time, I saw it, I couldn't unsee it. I made the decision that I was not going to sit on the sidelines. I was going to be a part of this disruption because it was just a better platform for real estate agents. So I could ask this question like, how is it really different? And these are three things that are really powerful and worth understanding, is that every other industry has already gone through the economies of scale where value needs to be placed in terms of bringing as much virtual or to the cloud as possible and getting rid of the layers of overhead that don't drive value. In this platform, we can align our interests in a way where we can collaborate at the highest level without having to pay for it. So all of our top agents are sharing. I'm sharing my best stuff, right? And there's no company other than EXP that offers a clear and proven path to real wealth and exiting production while making real estate fun again. There's a recent article, and this is just on the 17th, so as I'm recording, this is five days old. Mike Delprit what's giving exp the edge right now? As the market makes profitability more difficult to attain, cost control measures will become ever more important for brokerage companies. Look at this. And I really have to slow you down here to understand the implications of what this means. When I saw This I was like, what the heck? These are operating expenses divided by the number of transactions for five companies. Doesn't matter what five companies for the first quarter of 2022 in dollars, just straight dollars. So look at the different companies. You know, 8,000, 8,500, almost 9,000, almost $10,000 per transaction that the company is is spending to essentially make that transaction happen or not. Right. The question is, are all those funds being used in the Most efficient way? Exp is $691. So anywhere from 12 to 15 times less money we're spending per transaction in operating expenses. Take exp versus compassion. Our operating expenses overall for Q1, 2022, less than 100 million and more than 400 million. And the number of transactions we did over 110,000 for exp and around 45, 47,000 or roughly for Compass. Some of you will say, but yeah, Compass is like higher price point probably and like it doesn't matter. When you're looking at what we're about to go through in terms of a platform, what platform do you want to be in? One that's positioned to be super optimized and efficient, that has eliminated all of the inefficiencies and taken advantage of the economies of scales that our models take advantage of or something that probably might not weather the storm as well as EXP will. So let's shift gears. So that's kind of like a little bit about my journey and I want to have a conversation with what it specifically looks like, not just to come to EXP because that nine minute video explained that. I want you to consider joining Game Changers Nation specifically, either with me if I invited you here or someone invited you here at EXP Realty and what it looks like, we focus on big picture. It's freedom by you being in our world. Will you be better off in the future when it comes to making more money, having more freedom, and ultimately having more impact in the areas of life that matter to you. It's not about just selling more homes. And like end all, be all is just production, production, production, production. It's a balance of, yeah, we want to sell homes, but we also want to earn stock. We also want to earn residual income and we want to learn how to do it in a way where it's easy, it's lucrative, and it's fun. Elf. Everything I want to do anymore is elf. It needs to be alpha. I'm not doing it. So there's the sales and production side and then there's the agent attraction side and we're going to teach you both on the sales and production side. Every Tuesday at 12pm eastern@production mastermind.com you're invited. We do a sales production related mastermind. This is an example of what we did this past month. We looked at a guy that went from a solo agent to building a $350 million real estate team and we dug deep into all the things that he was doing. He's like the most interesting personality that you will ever meet. Nathan Abbott. Every month now, especially while it's relevant, we do what the shift, you know what the shift is going on. And I did a podcast episode. I said what the fud is going on? Fear, uncertainty and doubt. And so we'll do a market update. We'll bring agents on from the west coast east, you know, to get a real sense of what's going on and what are you guys doing to stay relevant, to stay busy, to keep selling homes. We did one on a 25 times return system. The power of giftology to be able to drive referrals in your business. That was just this past week. Once a month we'll bring agents in that are selling a lot of real estate. That will give their perspective on what's working, what's not working. That's the top agent mastermind. So that's our sales and production focus. Every Thursday at 12:00pm this is invite only when you're in our world is that we will teach you how to do agent attraction and how to build residual income the right way the system is built, you simply need to swipe it and deploy it. You know, there was no single source of and one thing I'm good at is taking everything that's out there, distilling it into things you need to be successful in real estate sales and also in agent attraction. So this platform is built and you just need to swipe and deploy the systems. All the building blocks of revenue share are taught by my fearless leader John Mikesh who is the fastest growing organization in exp and he's got this thing sort of built out in a step by step fashion. Soon we're going to be offering we've done this on a beta level with my organization. We're going to be rolling out to all of game changers is to help help you build funnels, email sequences, text sequences, a complete done for you agent attraction system because I do believe in your ability just through even production or people that you know to invite them over. So that's kind of what game changers nation is about. So now I want to shift into a little bit more about agent attraction and what it could mean for you financially. And so the question is, do you have an exit strategy? What is your exit strategy to get out of the grind of real estate? If you haven't read the book Rich Dad, Poor dad by Robert Kiyosaki, he talks about these. It's a good book. You should read it. But he talks about the four quadrants of cash flow. Where on the left is. It's a job. You either have a job, like a corporate job. I left my corporate job to get into real estate. I created a job. It pays a little bit better, but there's no leverage in it. So I work to get over to the right side. Where I was a business owner, people work for me. Massive leverage. Agent attraction. You get referral income from agents that you invite into the company. Massive leverage gives you more money to invest. You can have passive leverage, Right? So we want to do everything we can to get as much of our income coming from being a business owner and being an investor. And so in terms of agent attraction, I want to take you through an exercise that will really drive this point home. You need to have. Even if we never partner and you never come into our world, you need to understand what I'm about to teach you. This is straight from Tony Robbins. So you need to have an I'm done number. A number where if you were guaranteed that amount of monthly residual income, you'd be done like I'm done. For me, the number was $30,000 until I decided I wanted to give away $144,000 a month. And then it changed. Now it's $288,000 a month. But your number might be $20,000 a month, right? So that's two hundred and forty a year. At 5%, that would mean you'd have to have $4.8 million saved. So here is the math that you have to understand, and you have to do. And you can't dismiss it. If your I'm done number is $4,800,000 and you have nothing saved. To use a simple example, you're saving. Let's say you're saving $10,000 a month, which is a lot of money. It would take you 40 years to save $4,800,000. So $10,000 a month is $120,000 a year, times $40,000 is $4,800,000. If you, you know, let's use a different example. Your I'm done number is $4,800,000. You have $1,200,000 liquid. You're saving $5,000 a month, which is $60,000 a year. It would take you 60 years to save the difference. And I know it's simple math. I know there's compound interest. But a lot of that compound interest never happens because we're not actually saving money. Right? And so when you look on, or essentially when you really be honest with yourself about where you are today, how confident are you in terms of where you're going? How much residual income do you have right now? What's your critical mass of investment capital? What is your liquid net worth? Are you even tracking your net worth? Where's your confidence level in terms of where you're going based on where you are currently? I want to give you three examples of revenue share. Very, very simple. They're all based on the same average production of seven deals at 350,000 at 2.75%. This is not a full capping agent, but if you were to invite five people in. Take the leftmost example. Invite five people in, and they invited five people in, on average, we call it a five by five. That would be $5,100 per month of revenue share, which is residual income, referral fees, which is the equivalent of having saved $1.2 million. That's inviting five people into exp. Based on the production that I showed there, if you invite five, maybe you could do 10. And if you invite 10 and they invite five on average, that's 10 and 50 in your first and second level. 10 unlocks your third level. I'll get into that example later, but you're at $10,291 per month, which is 2.469 million equivalent saved at that 5% interest rate. Take the third example. If you can wrap your head around inviting 10 friends in and they can take our swipe and deploy Systems and invite 5 in on average, that 50 can invite only 1 in on average. So it's 10 on your first level, 50 on your second level, 50 on your third level. That's $15,765 per month, or the equivalent of having saved $3.783 million. These are not. They're fake numbers in that they're not based on actual numbers. I'll show you my actual numbers and you'll say, lars, you're a real estate coach. It's not fair. It's not. Whatever, right? Stop that. What if it took you 10 years to create what I created in two years, right? So go back. This is a 16 month snapshot of my numbers. You could see my seven levels. You can see in month five, the left green box. I was at seven FOQ 20 that I invited in. The 20 turned into 150, right? Fast forward 16 months. My 29 FOQAs, 42 in my front line, 1279 in my organization. Crazy. My 42 almost a 30 times multiple in terms of leverage. In the last three months I made 89,000, 84,000, 85,000. So I'm averaging mid 80,000 or so. My net worth equivalent as a result of spending some time on this is $20 million coming into exp. My net worth was like 10 to 15% of that in that range. So I had done a good job, I saved a lot of money. My net worth is more than that, but my liquid net worth that I can translate into cash in three to seven days was about 10 to 15% of that $20 million number. So just think about what's possible if you just apply a little bit of leverage and lock arms with us on it. And so I've got 1299 in my organization. I've only invited in 41 last month. I got paid 85,000 my last 30 days. Even though it's a slow for recruiting 63, only one of which was my own. 62 came in to my organization that I'm now paid referral fees. So this is massive, massive leveraged income. And even if the market shifts, right, I'm not worried. My goal now is to just provide massive value to the people that have joined me. So I think you just have a choice, right? Anthony Robbins choose his way, right? Spend less than you make and invest the difference so you have investment capital that you can live off the interest. That's the right side. Save 4.8 million to 7.2 million. Might take you 20, 30, 40, 50 years. Or you can sort of lay down your stress about EXP and just realize that inviting people to join you in your brokerage that you're excited about is not crazy, right? It's a proven system. All the tools are there for you to swipe and deploy. And it may take you two to three years to invite 10 to 15 and probably a lot quicker than that, but. But that will build out over time to represent that amount of residual income. And just to know that not only is this possible, but it's also predictable. But most importantly to know that you're not alone. The whole point here, partnering with Game Changers Nation, is to help you Go further, faster. And so when I was going through the, like, you're in the right place. If all these things, like we're looking for folks that are feeling underpaid, overworked. You want to scale your business. You want to put things that matter more first in your life. You want to create this awesome future. You want to challenge the status quo. You want to let go of your ego around not joining EXP or thinking you're too late because you're not. You want to start building real wealth. We're going to do really, really well together. So I'll end with a couple thoughts, is that this platform is disruptive because they've organized the entire company in the cloud, so we have live on demand support for any aspect of our business. The compensation package is unlike any other opportunity out there for the value that we receive. We're able to take advantage of leading others into this opportunity and supporting them to succeed. The tech stack and the training, I didn't really get into the training. There's like 80 hours of training a week just by exp agents and then you have the equity opportunities. So this thing is disrupting because it's disruptive. It's a different model altogether. And this quote from Mike Michalowicz, I'm actually going to have him on my podcast and in a couple of weeks he wrote the book Profit first and Clockwork Orange and the Pumpkin Plan. Super cool guy. Putting your nose to the grindstone is a really easy way to cover up an unhealthy business. We think if we can just work harder, longer, better, we could just hold out. Something good will happen one day. And very rarely, my friends, does that day ever come. So I am here to help you make more money. That is just something that we are driven toward, especially if we're in real estate, to go 100% commission. We want the reward of more money, but oftentimes it comes without freedom. So I want to teach you how to do it in a way where you're free so that you can have more impact. So I urge you to reach out to the GCN Game Changers Nation member that invited you here today for more information to get your questions answered, to say, send me another video or two or three or four. Let me talk to your fearless leader. Let me talk to their fearless leader. We build this thing together and we support you once you've come into the platform. So, my friends, that is all I've got for you. I have a ton of love for you, a ton of respect for you. Being here. This is Lars Hedinburg. I am out, and we'll talk to you guys soon.
