Unraveling Real Estate Dynamics: Adapting to Industry Shifts and Empowering Agents

Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:23):
back into production several months back doing basic
shit, and contracts are comingin weird like I'm not doing
anything, you don't see me onfacebook going hey guys, I'm
doing loans yep, no, yep, no.
Slide people's dms, let themknow what you do, you know?

Speaker 2 (00:41):
yep, okay, jc, I'm ready when you are recording all
right you already got it goingyes, sir, all right, if
everybody's ready, here we gookay, hold on real quick.

Speaker 1 (00:53):
Let me put this on silent silence of the land.
There we go.
My one of my last guests.
Check these out.
They're all the different headsof Fed.
I'm ready when you guys are.

Speaker 2 (01:16):
All right, gentlemen.

Speaker 1 (01:17):
Ready.

Speaker 2 (01:18):
Key Factors Podcast Real Estate AF in 3, 2, 1.

Speaker 1 (01:25):
And welcome back to another episode of Key Factors
Podcast, real Estate AF.
In three, two, one.
And welcome back to anotherepisode of Key Factors Podcast,
real Estate AF, where the AFstands for and finance, and I'm
your host, mark Jones, and weare still powered by
ReviewMyMortgagecom, the largestindex of mortgage programs in
the nation, and on the lastcouple of discussions we got
pretty technical in regards todifferent policies regarding

(01:46):
what's going to happen the nextfour years Under Donald Trump.
We talked with some investors,things of that nature, but this
time we're going to have alittle bit of a free-for-all.
It's been about a year sinceI've had these two guests on
together and we want to rehash acouple of the things that we
had discussed and then kind ofreach in a bag and pull out a

(02:06):
couple of topics and go off thedome.
So, without further ado, I wantto introduce my two guests
today.
I've got Jeff Garza.
Jeff, how are you doing?

Speaker 2 (02:13):
I'm doing well, man.
Thanks for having us back.
Absolutely, we're ready tobreak the Internet.
Amen, that's right.

Speaker 1 (02:18):
And then I've got a top producing agent from Neil
and Neil team, chris Jacobs.
What's up, dude?
Same old shit.
Just another day.
Amen to that Right.
So, guys, today, first I wantto kind of get your take,

(02:40):
because the last discussion thatwe had talked about about a
year ago had to do with the NARsettlement.
People were shitting bricks,didn't understand what was going
on.
How do you interpret it, jeff?
You as a broker, you had toexplain that to your crew and I
think the way that you hadexplained it to them was
probably the best way that itshould have been explained to
many.
But there were still many ofbrokers out there that were
literally reading off the scriptwithout interpretation and

(03:03):
going okay, just get with me ifyou have any questions, and if
you're running a big brokerage,that's a lot of questions to
handle without direct answersand seeing the picture of what
it means.
So what's been happening?
How has that progressed withyou guys and then kind of as a
whole, in real estate both ofyou can tackle this.

Speaker 2 (03:22):
Yeah, I'll just jump in there.
The integration, I feel like,has been really actually more
smooth than what I think most ofus anticipated.
I feel like most of thebrokerages, most of the
companies, I think most of theagents as a whole have figured
out that it's not very muchdifferent than the business as

(03:44):
usual, the way we used to do itin Texas for many years.
Right, and if anybody saw thelast episode or when we were on
here, we would have discussedmany other Northern states.
Correct Didn't have thedisclosures and disclaimers that
we have had in our library inTexas as real estate
professionals for many, manyyears right.
So that's the one.

Speaker 1 (04:04):
And you're talking about the buyer's rep agreement?

Speaker 2 (04:06):
Yeah, exactly, Listing agreement buyer's rep,
those representation agreementsright.

Speaker 1 (04:10):
So that way no consumer-turned-client ever felt
like they were strong-armedinto paying a fee they were not
privy to or aware of right,which is the crux of what the
NAR situation was right and, ifI'm not mistaken, you noticed
that Texas wasn't a part of thatRight, because we were doing it
all along.

Speaker 2 (04:28):
Exactly.
So there's that.
The other part is, you know,I've been training.
You know, obviously we trainvery frequently at our brokerage
and I have a class in thereright now that I'm working with
about 12 or 13 agents.
And it was funny because I wasgoing over some of these new
documents, right, that we use,you know, as practitioners on

(04:49):
our side, and I was like, hey,guys, like y'all don't even
realize this, but this is yournew normal.
So, like this, I'm going toshow you what it's like right
now.
But the rest of us old hats,like this was not normal.
So let me explain why.
And half of them are like itkind of seems redundant, like
this added documentation.
I'm like good, I'm like, yes,you know, I'm like you got it.

Speaker 3 (05:06):
You get it.

Speaker 2 (05:07):
Like it is redundant, like it is very redundant,
right?
So, long story short, I feellike the integration and the
rollout actually has been, waswas way more smooth than what
any of us probably were, werewere anticipating Sure, and I
will say, you know it's, itreminds me, I mean, I know
you're, you know big into sportsand you have great taste in NFL
jerseys, so I just want to goahead and throw that out there.

(05:29):
But you know, like you know alot of my.

Speaker 1 (05:32):
This jersey does not burn my skin, by the way, guys,
Okay, Can we get?
Can we get this guy some oxygenover here?
Yeah?

Speaker 3 (05:38):
that's right, yeah.

Speaker 2 (05:39):
Yeah, he's getting red in the face.
Yeah, so real quick, I'll justsum it up so all of my boys,
they're all baseball players,right?
They all play high school andcollege and all this other jazz.
Well, what we used to tell themback in the day when we would
take them to different camps andthings like that was like
you're either going to getexposure or you're going to be

(06:01):
exposed, right?
Yeah, absolutely.
There's the positive andthere's the negative, right.
And what I'll say in terms ofthe rollout here locally is and
Chris, I'm sure, has a muchbetter gauge on this there are
the ones who we know get it.
We're trained recently, overthe last six to nine to 12
months, properly on what thisshould look like and how we

(06:22):
should work together as peers ina industry.
And then there's a couple ofoutliers out there that just are
still making a mess of it andsadly, it's really again up to
us agents and brokers, who knowwhat these documents are meant
to be, unfortunately to maybeschool the other agent who's

(06:44):
still acting a fool.
So there are some that arebeing exposed.
I'm like dude, you literallydon't know what any of this
means.
And then they're beating up myagents or something and be like
no, we don't need to sign thatform.
I'm like.
I mean, I can show you everysingle literature from Texas
Realtors and Texas Real EstateCommission that says these are
the new forms we're using.

(07:05):
So again, there's been a littlebit of exposure and people
being exposed for not being inthe know.
I feel bad for those agents.
I'll just keep it lightly.
I feel bad for those agentsbecause they're lost in the
sauce, but there's not a lot ofthat.
And, chris, I don't know whatare you thinking?

Speaker 3 (07:21):
So I remember sitting at this table a year ago when
all this went down and I saidthe very same thing I'm going to
say today.
It's business as usual.
You're just learning anotherway to do it, to be more
communicative with your clients,be more clear and concise with
what you're doing.
I think the brokerage level hasdone a great job actually of

(07:43):
providing the platforms neededto get the training.
I think the agent side of ithas been lazy to go and get it.
One of the biggest things thatI'm seeing is your high
producers, your good, solidagents.
They were like all right, whatdo we need to learn?
Let's break it down, let's lookat the details, let's make sure
we follow all the rules as setforth, like they change every
single year and say, okay, thisis another, another avenue that

(08:07):
we need to communicate to ourclients and make sure that they
understand.
I will say this and I wastalking about this on another
another podcast is the biggestthing I'm seeing is brokers and
I'm not talking about Jeff,cause I've actually done a
couple of deals with his agentshere recently and I even text
him when I do, and I appreciatethat Absolutely killed the deal
in a good way.
Yeah, yeah, yeah, crushed thedeal.

(08:28):
There you go Brokers wanting tosee buyer's representation
agreements.
Sure, did you know that youcannot ask for that?
That is a private contractbetween a buyer's agent or their
broker and the client, and theywant to see it because they
want to be able to dictate offof that what their client's
going to pay.
Wow, that's where I'm seeingthe taking people taking
advantage of it.
Brokers bullying young.

Speaker 1 (08:53):
So now let me.
I was going to say, I wasliterally just getting ready to
say that part within it.
Is it necessarily bullying, oris what I call pencil whipping,
meaning being better at knowingyour contract and knowing how to
utilize it in certainsituations?
If that new agent doesn't knowbetter, here's my cards.

Speaker 3 (09:06):
Well, I call it bullying, because if you're an
agent to agent and this agentgets their broker involved in,
their broker says I want to seeit.
If this agent doesn't know anybetter, who is that?
Shame on, though.
Uh, shame on the agent's broker.
But also, if you're going to bein this business, know your job
.

Speaker 1 (09:22):
Yeah, and.

Speaker 3 (09:23):
I, I go back to you know I said this going into this
whole deal that it's going tobe on the brokers to teach it
properly.
But again, if you want to begood at what you do, do your job
the right way.
That's right.
Go to every training absorbevery bit of knowledge you can.
I'm I'm a guy that's alwaysalways big on mentoring.
Okay, if you're not seekingthat advice again, a broker runs

(09:44):
150, 200 agents, so there'sonly so much the broker can put
out there If you're not willingto absorb it, if you're not
showing up.
But on the other side of that,a broker has a responsibility to
do things the right way and nottry to take advantage.
Right, and I get questions inour company Slack all the time.
All of our team leaders doabout.
Well, the broker asked me formy buyer's rep.

(10:04):
That's a private contract.
Did you know what to tell them?
And the first thing we tellthem no.
Okay, if the broker's going totry to kill that deal because
you won't give a buyer's rep,they're not.
They're not being a fiduciary.

Speaker 1 (10:16):
The fact of the matter is is they won't kill the
deal because that's notsomething that they should or
can ask for.
Well, I shouldn't say can askfor it, because you can ask for
anything.
You can ask for anything Rightand it kind of goes back to the
know your own business that ifyou now show your cards, shame
on you agent for not knowing,shame on your broker for not
making sure that you knew thatand hats off to the broker that

(10:39):
put that little hurdle in yourway and pencil whipped the hell
out of you.

Speaker 3 (10:44):
And I disagree because I think that broker
should know better.
I mean, you're putting an agentin a very pretty and again this
goes to the agent too Okay.

Speaker 1 (10:53):
So pause on your topic, because I want to compare
it to a VA buyer.
Okay, Most realtors don't knowthat you can ask for more than
4% in seller contributions.
I get it all the time I get thephone call Well, 4% is the max.
4% is the max and I'm like okay, let me send you this video and

(11:13):
this literature, et cetera.
It's 4% plus what's customaryfor a transaction Matter of fact
you can use some of that 4% topay off some of their debt.
That's right.
But the realtor that'sprompting that to me, to the
buyer's agent that I'm workingwith, they're totally in
uninformed about that concept.

Speaker 2 (11:32):
It's their truth, right?
Yeah, that's right.

Speaker 1 (11:34):
So they believe that that's true.
So, therefore, is that shame onthem, and are they using it the
wrong way?
If they don't?

Speaker 3 (11:43):
know.
Well, I think we're talkingabout two different things.
I don't think this is the samething, because one agent's
responsibility is to do your jobcorrectly, to know what you're
doing, make sure that youunderstand the process.
You're talking about somethingthat isn't necessarily in an
agent's wheelhouse.
To understand, I get the 4% andknow your caps, but there's so
many different loan methodologythat you can apply to different
loan factors that agents won'tknow, because that's why we rely

(12:06):
on you, on the finance guys, tobe able to tell us that is
correct.
When you're talking about anagent, a broker that I can't
name, a broker that I don't,that I know that knows that they
cannot get that like that.
That is a private concept.
You should know that.
You should know that if you'reasking for it, you're hoping
that you can get someone to giveit up in order to manipulate
what the contract commission isstated.

Speaker 1 (12:28):
That's basically what it is, is manipulation right in
the forefront, because then I'mgoing to say give me your
listing agreement.

Speaker 3 (12:33):
What does your listing agreement say?
Yeah, because if your listingagreement says they're going to
give up 3%, why does it matterwhat my buyer's rep says?
Right, because I can amend mybuyer's rep, just like you can
amend your listing rep listingagreement.
So I think it's a little.
You need brokers and agents tobe responsible for their actions
and take care of each other,because, again, this whole
market works If we, ascolleagues, work together

(12:55):
absolutely.
And that is what got us in thisposition in the first place, and
now it's our job to digourselves out of it, and I don't
think anything really changedoutside of.
Just make sure you explain itbetter.

Speaker 1 (13:06):
Yeah, I mean I think you are on the money, both of
you guys.
It has a lot to do with we gotlawyers involved and when you
get lawyers involved you tend toget a lot of redundancy in
contracts in anything that alawyer's hands touch.
Attorney's concept.
By the way, they're changingagain this month, really, yeah,
in addition to regulations, onthe last discussion with Andy

(13:29):
and John, we talked about all ofthe regulations that it takes
that are unnecessary to startbuilding a home.
So the idea is they're going tocut some of those regulations,
get some of the pork out ofthere so that it is less
expensive for builders toactually build affordable
housing.
When attorneys get involved, isit necessary?

(13:51):
We know it is.
Why?
Because somebody said it'snecessary and that's what we
abide by.
But is that something that willend up almost queer in our
business, if that makes sense inthe long run, with all of their
additional what they want tomake somebody else happy?

(14:12):
That maybe happened once.

Speaker 3 (14:14):
That then affects all of real estate.
So I don't trust anything thegovernment tells us they're
going to do regardless but youhave to understand that there's
only a level with which thefederal government can get
involved.
Anyways, because you'repermitting, depending on where
you're building, that'smunicipality-based, that's
city-based.
Cities are going to run theircities like they want to run
them.
Correct your developmentpermits, your annexation

(14:35):
agreements, all of that stuff isgoing to cost the same.
The federal government can'tget involved in that anyways,
right, the only time they couldis if they gave up federal land.
Could is if they got up, gaveup federal land, but even then
you're going to want to annexbecause you need utilities.
Yeah, so I don't see that being,or if they were using federal
funds to build their project insome way, shape or form like a
grant program but then they'regoing to give that then then

(14:56):
you're going to run into a fairhousing issue, because then
they're going to say, well, thisis only for federal backed
loans, Conventional is forfederbacked loan to an extent
but, FHA, va, low-income houses,USDA.
I don't see that actuallyhappening.
I see you need to make theproduct more affordable.
You need to make the labor moreaffordable, which go with that,

(15:17):
whichever way you want to go,but I don't think that there's
anything the federal governmentcan do outside of spending more
money which you don't want themto do on grant programs to build
these houses, to allow moredown payment assistant programs,
which again gets you in aposition you were in in 2008.
If you're giving the wrongpeople money, helping people
that can't afford to buy a house, buy a house.

(15:38):
That's right.

Speaker 1 (15:39):
They'll end up right back with it.
That's exactly right.
And what I've actually seenlately and I talked about it
with another lender recently iswe've got plenty of down payment
assistance programs.
Let's be honest, I'll be honesthere.
There are down paymentassistance programs on top of
down payment assistance.
In many of the cases, a lot ofthese DPAs are adding

(16:04):
requirements like three monthsreserves if we're going to give
you the money.
So it's taken a ton of buyersthat would have otherwise been
able to get this assistance andgoing.
You got to save a little bit,put some skin in the game.
It's not necessarily in thegame, but in the bank, and
that's intended to help folksget into homes In a second lien
for 10 years or something likethat.

Speaker 3 (16:24):
Yeah, like Lenar's program.
So is it?

Speaker 1 (16:25):
really free money.
No it's not.
Nothing really is ever free.
You're either going to pay inthe rate or you're going to pay
it back and pay in the rate theidea behind affordable housing.
And we can roll into thisconversation, because I think it
stems for the next kind oflayup conversation of why
listings are taking so long tosell, why buyers are still on

(16:47):
the fence, why rates are stillhigh.
We can go into all these roads,but what do you see potentially
solving the immediate fix foraffordable housing?

Speaker 3 (17:00):
I'm going to let Jeff get on this, because I've
already answered this questionand I've got a perfect answer
for it.

Speaker 2 (17:04):
So for me, I've been on some panels over the last few
months, especially ramping upthrough the election and stuff

(17:31):
and ultimately what it boilsdown to, in my humble opinion,
so that now, all of a sudden,they had this magic bag of money
to be able to buy a house.
That makes housingaffordability worse.
Correct, because when you, it'sa simple economy formula.
It's an in and out you, youdrive more people to the market.
With less supply, thenwhatever's on the on the lot

(17:53):
becomes worth more, right?
In addition, it's you'recorrect.

Speaker 1 (17:57):
You know, I mean double whammy.

Speaker 2 (17:58):
Yeah, yeah, so so I'm gonna go back to exactly what
chris is saying and what you'resaying.
Right, you make me I'll say itin different terms.
Right, you know, and y'allnailed it, the building permits
are not at the federal level.
The building permits are herein the municipality, in the city
, in the city of Helotis, in thecity of San Antonio, in the
city of Cibolo, in the city ofConverse, right, right, who

(18:20):
really excuse my French, butgives a shit about affordable
housing?
They need to be talking to thepeople who make decisions at the
municipal level and at theirmayor's office and at their city
council meetings to be able tosay how can these builders
because there's plenty out therethat want to be in the
affordable housing range andmarket how can they get to the
front of the line?

(18:41):
That's right, like, at the endof the day, can I get my permit?
Can I get infrastructure?
Can I get roads?
Can I get utilities dug?
Can I get electric you knowelectricity out to this plot of
land so I can start building,you know up, right, and so for
me it's really a simpleconversation about make it
easier for developers that havea plan for price pricing in X

(19:05):
range to be able to move quickly, right?
Because if we can talk aboutaffordable housing all day long,
which we've been every day thatwe've ever been in this
industry collectively,everyone's always talked about
it, but it's like the freakingunicorn, because nobody in the
political realm, in thegovernmental realm, wants to
actually make simplified,streamlined, fast track ways for

(19:29):
builders and developers to beable to get permitting utilities
and get get their ass going.

Speaker 1 (19:34):
You know and I'm going to add to that one piece,
because that was perfectly said.
In addition to making money,the builder, in order to do
whatever they do, they've got tobe able to make a profit.

Speaker 3 (19:47):
For sure.

Speaker 2 (19:48):
Let's be honest 100%.

Speaker 1 (19:49):
And the reason why they're not in the affordable
housing range ring is becauseit's not profitable at the
moment.
Why?
Because before you're donegetting your permits and
inspections, and pest the sandand the soil and everything else
.
There's nothing else to be made.
So who in their right mind isgoing to run a business model

(20:09):
going?
Let's break even every time,guys we're doing right for
everybody.

Speaker 3 (20:13):
So let me ask y'all this, please.
First I'm gonna ask you aquestion.
I'm gonna follow it up.
Okay, what is affordablehousing?
Um, that's a.

Speaker 1 (20:20):
it's all relative, I mean, give me an average, I
would say, based on San Antonio,I would honestly say, because
our average income combined islike 65 grand.
So that puts you almost aroundmax of 200,000.

Speaker 3 (20:35):
Okay, Now back up three years ago.
Okay, what was affordablehousing?
Still 200.
So you're saying that a personthat can afford a $200,000 house
right now couldn't afford a$300,000 house three years ago.

Speaker 1 (20:46):
Actually they could.
Why?
Because rates were lower.

Speaker 3 (20:48):
We don't have an affordable housing problem.
We have an interest rateproblem.
We have a federal governmentspending problem.
There's no such thing asaffordable housing.
You buy what you can afford.

Speaker 2 (20:57):
It doesn't matter what you're financing over 30
years.

Speaker 3 (21:00):
It matters how much you're paying for it every
single month.

Speaker 1 (21:04):
So would you then take it a step further to say it
is a misperception problem bythe general public or these
potential buyers, because theyare still living on a?
I can afford that becausethat's what I was pre-qualified
for back then, or that's whatthe payment was back then, at a
3% rate.
That's an us problem.

(21:24):
You think so.
We're not educating our buyersappropriately Well, even the
education of it, and I'm on yourside on this.
I just want to make it clearthat we have the conversation
every day with these folks andthey still cannot come to terms
with okay.
So you're saying I've got tolook in this range for my
payment to be where I want it tobe?

(21:45):
Yes, oh, I'm just going to goahead and rent again.

Speaker 3 (21:48):
Okay, Then that's on them.
But you know we do what we gotto do to make sure they
understand it because at the endof the day, there is no
sustaining this housingaffordability.
It's what you can afford,period.

Speaker 2 (21:58):
I like that.

Speaker 3 (21:58):
Because if you go back and you I just went over
this with a client that justclosed on a VA loan three weeks
ago, right before Halloween.
He went into the search sayingman, my max budget is $250,000.
Why, well, that's just kind ofthe range I want to stay in
because of my payment.
I'm like so your max budgetisn't $250,000.
Your max budget is this payment.
He goes yes, and what if I canget you into a bigger house at a

(22:21):
higher list price but at thatpayment?
I don't do the two on buy downs.
But if I can get a permanentbuy down that the seller's going
to pay for, I can get you in ahouse it's going to be easier to
resell later on nicer, nicer,neighborhood cleaner, better
payment, or the same.
He was like well, yeah, I wantthat.
So it's not the list price,it's the issue.

Speaker 1 (22:45):
It's how do you get that payment Right?
And I'm even more so believeyou're accurate in this, because
list price let's go a hundredgrand difference in list price.
It's only going to move theneedle a little bit.

Speaker 3 (22:52):
It's not very much, not much.
So you want to get it back towhere.
You want to talk aboutaffordable housing.
We had a podcast about this.
What two months ago?
Yeah, the federal governmentneeds rain and spending.
We need to make jobs moreaccessible in the States.
We need to make sure people aregetting paid a fair wage.
We need to make sure businessesare making money so they can
pay their people a fair wage.
That's going to increase buyers.

(23:13):
That's going to get them out ofdebt so they can afford to take
on better debt.
So, for example, if you thinkyou're going to go into buying a
house and you're like man, I'mgoing to go put a hundred
thousand dollars down in thehouse, why pay off your car?
That's right.

Speaker 2 (23:26):
Pay off your truck, pay off your boat, pay off your
camper put as little down in thehouse as possible.

Speaker 3 (23:30):
As long as we can get the payment threshold you need,
because maybe your payment is$2,000, but your budget was 1800
, but you have a car that costsyou $600 a month, that you owe
$8,000 on.
That's right.
Pay the car off, put less downon the house and your payments a
little higher in the house.
But you don't have that $600car.

Speaker 1 (23:45):
You just got rid of that car.

Speaker 3 (23:46):
It's again, we don't have a housing affordability
problem.

Speaker 1 (23:50):
So then would you say that it is more of a uh,
obviously, education that's hugein in every discussion,
hopefully, that we have with ourbuyers, with other listing, et
cetera.
But would you say that from abuyer's perspective, it has a
lot to do with their sentimentand their lack of confidence?

Speaker 3 (24:08):
I think it's that.
I think it's a ego thing.
I think people in general theybelieve too much of what they
see on TV, what they see onsocial media, and not talking to
the people that they shouldactually talk to.
When buyers call me, one of thefirst things I ask them like
I've got a guy texting me rightnow.
He's like man, I really want tobuy a house.
Okay, cool, what's your budget?
Well, I think it's this.

(24:29):
I'm like no, your budget iswhat the lender gives you.
That's right, because thenthey're going to tell you okay,
this is what he can afford.
Okay, now we know what to lookfor.
If you're caught up on socialmedia, if you're caught up on

(24:49):
the news and everything you seeon TV, you're not getting it
from the experts.
You're getting it from peoplethat don't know what the hell
they're talking about.
That's right, like the $25,000.

Speaker 1 (25:05):
Well, that and you're seeing the end journey that
they took.
You don't know what it took forthem to get whatever that is,
and most people aren't going toenlighten them on that.
They're just going to show thefinished product and I would
honestly say social media isnothing but a bunch of finished
products out there.
That a part of a journey.
It's about the journey and howyou get there that us experts
can help guide these folks,educate them.

Speaker 3 (25:24):
It's the old adage First impression is the lasting
impression.
Typically, buyers take thefirst thing they hear and that's
what's buried in their brain.
And now you've got to convincethem that that's not right.
If it's not right, right.
And it's hard to convincesomebody, it very much is.

Speaker 2 (25:38):
It's an education issue for sure, like you
mentioned.
You know, as y'all were havingthat conversation like my mind
went to, so so I have an officein central texas right.
So we have a a nice big oldoffice there in harker heights,
texas right for those of y'allthat are listening, that don't
know where harker heights is.
It's right between killeen,temple, belton and everything
else right, and so you knowthere you go, so you know that's

(25:59):
where, you know elvis got hisuh, his famous, you know his
haircut right.
So now it's Fort Cavazos, right?
And so we got several agents upthere, and one of the
conversations that I have withthem weekly is about them being
able to convert military membersthere Because obviously it's a
military town, a huge militarytown.

(26:20):
Convert them from renter tobuyer, right?
That's the conversation we'rehaving and it's almost sad I
have to.
And this is I think this isgoing to be really interesting
for you all to hear.
The conversation I've beenhearing for the last two years
from my agents up there is thatthe military connected member,
the service member, is tellingour agents my BAH doesn't cover

(26:42):
what the cost of a home isbecause of today's interest rate
and the BAH doesn't cover whatthe cost of a home is because of
today's interest rate.
And the BAH there is actuallyreally low.
So that's a very differenttopic, but it's very low and
it's somewhere like $1,475,$1,550 a month.

Speaker 1 (26:55):
It hasn't caught up to what is actually going on.

Speaker 2 (26:56):
It hasn't caught up to the cost of living and all
that other stuff, no-transcriptaccess, the VA loan, the VA home

(27:17):
loan.
Their argument or theirrebuttal to the agent is like
hey, let's make you a homeowner,let's get you out of renting in
tenantville to landlordville,own a piece of the property you
defended or whatever right, andthat kind of thing right.
Absolutely.
And so what happens is theirmindset is well, it's I was
gonna say mindset right there.
If my BAH doesn't cover it,then I'm good, that's right.

(27:39):
I'm gonna stand pat and I'mthinking to myself like man, if
your BAH covers 75% of amortgage and you're not willing
to cash flow 25%, I don't knowthat there's anything that I can
.

Speaker 3 (27:54):
I get it now.

Speaker 2 (27:56):
But there is expendable money because I
promise you these people and Ishouldn't say these people, but
I promise you.
Well, they are these peoplebecause they're the ones that
have that mindset Are able to goto Starbucks and able to go get
an extra haircut a month.

Speaker 1 (28:11):
And haircuts ain't cheap these days.

Speaker 2 (28:12):
I mean, it ain't what it used to be when we were
young, you know, in high schooland stuff like that.
But you know it's a choice andit goes back to the first thing
they hear.
And the problem is is that ifthey're in a circle of other
people, it's like nah, man,screw that man, I'm not, I'm not
dropping my BAH on a house thatdoesn't cover the payment.
Man, when's the last timesomeone was to say, hey, I'll
offset 75% of that, so you'reonly cash flowing 25% of it for

(28:36):
the two or three years thatyou're here anyways.
Well, as a matter of fact, andthen when you PCS out, you can
rent it and then recoupeverything.
And now you have an asset 5, 10, 15 years from now, because you
listen to someone who, in myopinion, was smarter, more
educated, more knowledgeableabout wealth building, asset
building, knowing what aportfolio was and actually being

(28:58):
a real estate land bearing.
You know what I'm saying.

Speaker 1 (29:00):
Meanwhile, you've got investors personal mom and pop
investors that are going.
My goal would be to break evenif possible, but you know what?

Speaker 2 (29:09):
I'm willing to spend up to about $500 additionally
each month so that this is beingpaid off majority by the
tenants and I should say I don'twant to be beat up by anybody
that VA connected, but I'm justsimply saying that reasoning you
can't argue with, with thatreason at all.
If they're stuck in their mind.

Speaker 3 (29:28):
I don't even think you need to apologize.
There's nothing.

Speaker 2 (29:29):
You can say about that?
I can't convince you, I justcan't convince you.

Speaker 3 (29:34):
And coming from my perspective, cause I was active
duty, I was actually stationedin Fort hood there's two ways to
look at it.
One, they get BAH and BAS,which is your basic allowance
for housing, basic allowance forsubsidiaries.
It's about $1,500 a month forBAH and it's about $380 a month
for BAS.
Now that is adjusted based onhow many kids you have family
size.
So just to put it inperspective, the average rank

(29:56):
for Fort Hood, texas, is an E4.
That's a specialist.
So E4 makes $2,633 a month.
Okay.
So you took.
You take that and you considerokay, if you're off base at an
E4 with a family, your wifehopefully works.
But the point Jeff's making isspot on.
You're getting $2,633 a monthat a two year mark.

(30:17):
If you're an E4, you should beat two years, three years.
You should be an E4 by then,okay.
So if you're getting $2,600 amonth, let's say you got a car
payment, you're going to needtwo vehicles.
That's $1,200 a month roughlydepending on what you buy.
As long as you're smart aboutit, you're still got, you know,
14, $1,500 a month, plus another$1,500, plus another $380

(30:38):
something dollars that adjust.
You should be willing to give alittle.
But the biggest fear and thisis what I see a lot on the
military side and I talk to guysall the time about this they're
still in.
Recruiters have a big problemwith this.
Um, you get the guys that go inand you don't.
The military doesn't havestatuses on orders.
Okay, so you could be there twoyears, three years, five years,

(30:58):
seven years.
It doesn't, it could, just itfluctuates.
You could go to Korea, whereverthe problem is, you go and you
bought the fear and I'm notagainst it.
You go and you buy somethingmore than likely it's going to
be a new construction becausethat's what you can afford.
And then incentives and stufflike that.
Well, because that's what youcan afford.
And then, incentives and stufflike that.

(31:19):
Well, you're not going toappreciate until that
subdivision is developed.
So you can't sell and you'rehoping that you can rent it out
for what you pay for it becauseyou can't buy.
And you're still going to getBAH and BAS once you PCS.
The problem is your BAH and BASfollows you.
So if you PCS to Benning orBragg or it adjusts, it doesn't
just adjust but you're off post.
You have to live off base.

(31:40):
Gotcha, on base housing isgoing to be reserved for your
upper enlisted and your officers.
If they want to take it, mostof them won't.
But off base housing is full.
They're not building any morebases, any more houses on base.
So your affordability like nowyou got okay.
That same veteran that says well, man, I, I'm renting this one
bedroom apartment for me and myfour kids because I own a house
in Fort hood or I own a house,or I own a house in Fort Sam and

(32:02):
I got to rent that out and I'mpaying a little extra to pay for
that and that's eating up allmy BAH.
There's a fine line there,which is why I tell agents all
the time don't steer, but youwant to make sure they
understand when they go into newconstruction, what you could be
faced with?
Oh for sure.
Most definitely, I think wehave to find a better way to

(32:23):
provide for your militaryservice members, whether that's
increasing BAH or doubling up onit.
If you have the PCS shorterthan your standard enlistment
window two years, three years,whatever it is we as a country,
our federal government, has tofind a better way to do it for
them, because homeownership isthe quickest path to wealth,
absolutely, and these guys, andin most calculations it's the

(32:47):
only way.

Speaker 2 (32:48):
And it's interesting, man, because it also gives us
an opportunity to create asolution to maybe a newer or
more spoken about problem, right, and so just a quick little
story.
So I'm in the propertymanagement business as well,
right, so I have a propertymanagement company, a lot of us
are in property management, sowe do property management there

(33:09):
in Central Texas, right,obviously, we have a ton of
agents, we get tons of referrals, we have a bunch of stuff up
there, and so I actuallyshattered and broke apart our
old fee structure at the end ofthe spring Because I realized
very quickly, texas homeownersinsurance highest it's ever been
, absolutely Property taxes.

Speaker 1 (33:27):
Matter of fact, it's killing most deals, yes, yes,
yes.

Speaker 2 (33:30):
So property homeowners insurance and then
property tax, right, so thosetwo are the biggest issue right
now.
Right On a bottom line scenario, right.
And so I was thinking about, Iwas like man, you know how can I
be innovative for myself and mycompany and my organization?
Right, for property management.
And so what we did is like backin the good old day, the last
four or five years, you know,your standard was 10% monthly

(33:51):
management.
We would do 8%.
If you were VA, give you alittle bit of a discount, and
then, if you were an investorand brought us multiple doors,
we would charge 7%.
I shattered that and now,moving forward, all we do is 5%
monthly management to be able toaccommodate the rising cost of
holding that investment.
So that way we can partner withmore landlords who can continue

(34:12):
to afford us right.

Speaker 1 (34:13):
It's basically a cost of living and it's funny
because people have.

Speaker 2 (34:16):
Actually, I'm just going to tell you, I mean, y'all
know the industry that we're in, man, a lot of people love it,
right.
We hardly ever get told no whenwe interview a landlord or
investors or anybody, um, butsome naysayers just like oh my
god, jeff like that's too, lowthat's the dumbest thing ever.
if you're going to pay fivepercent monthly management, then
you must be really gettingshitty service.
I'm like no, the exact opposite.
Like, if Netflix can do whatthey do for $14 a month, we can

(34:37):
do what we do for 5% a month,plus you know any other, you
know random fees that areincluded in that or whatever.
But my point is is that peoplenow have an option in our side
of the world to create newversions of what used to be to
be able to help that consumer orthat client that needs a
service, right.
So because taxes are high andbecause insurance is high, I

(34:59):
don't want to lose doors in myproperty management company.
I want to go ahead and adjustand make it make sense for both
parties, right?
And so we just have to continueto show value, you know,
obviously at 5%.
So that way people can be likethat's not even close, like
these guys are solid and they'resharing into the modern-day
economy of being a landlord.

Speaker 1 (35:18):
You're evolving and adapting to what is almost
necessary in these times.
Will it get back?
Not ever to what it was, butwill it be close?
It always does.
And back to your VA discussion,just something for the veterans
out there, and what I do tohelp those that are veterans
understand the concept of whatwe're talking about is easily

(35:39):
compare it to an FHA loan,conventional loan.
You don't have mortgageinsurance veterans.
So therefore your budget and itkind of goes back to this
perception issue or thiseducation and what they see beer
budget on whatever they want tocall it, and what they see beer
budget on whatever they want tocall it hey, you're qualified
for $250,000, here's yourpayment.
Instead of buying the $250,000at where their payment is, they

(36:04):
stretch it a little bit more andnow all of a sudden, no, that's
not going to be affordable.
You're now at what it would beif you would have bought at FHA,
if that makes sense.
Why?
Because now you're in more home.
Exactly so it's just somethingthat I think.
Education is huge in this andmore discussions need to be had
and more of the veterans thatare interested in becoming
homeowners or future investmentsinvestors need to seek out

(36:28):
similar to realtors that are notseeking out the information or
I'll.
There are tons of realtors thatgo to every damn class out
there.
And it's like how many moreclasses are you going to go to
before you actually startputting this stuff into action?

Speaker 2 (36:44):
We call.
We call them PMAs professionalmeeting attenders.
I like it See, fillers I mean.

Speaker 1 (36:50):
I mean, you can expect this person to show up at
some point.
You got to start performing thesurgery.
I mean, you can expect thisperson to show up at every class
.

Speaker 2 (36:54):
At some point, you've got to start performing the
surgery.
Like you can be in theauditorium learning how, but you
need to get your hands dirty atsome point.

Speaker 3 (37:00):
There's no better way to learn than on-the-job
training, I agree.

Speaker 1 (37:03):
I just don't see there being a lack of education
out there, and now we're goingto roll into this conversation,
I feel like it is a lack of fireunder their ass.
Lazy, I don't know, but theinformation is there.
Once YouTube launched andcontent started flowing, then
you've got social media, inaddition to the internet and

(37:25):
guidelines and all of the things.
There are plenty of folks thathave done it already, that have
shared their stories in multipleplaces books, podcasts.
Why are they not seeking thatinformation?
So, as we roll into this, whatthe hell is up with these new
agents?

Speaker 2 (37:41):
Well, this is a two-hour continuation here, so I
mean be careful, you know.
But you know, I'll just startthis one by telling everybody
out there that's listening.
According to the NationalAssociation of Realtors, right,
you know better than you andChris and myself.
Okay, like, don't believe us,right?
Like, what the hell do we know?
That's right, okay.
National Association ofRealtors says that a brand new

(38:02):
agent licensee today has at besta 13% chance of staying an
agent slash realtor by yearthree.
In other words, the dropoutrate in the first 24 months US
wide, nationwide, is 87%, andit's getting higher, okay, and
so so again, what do we know?

Speaker 1 (38:25):
That's almost.
It's a very close stat to thefolks that start a new business
for the first time and fail.

Speaker 2 (38:30):
Most of them fail, exactly Right.
So so what happens here now andI think we've all studied this
for sure.
You know where I'm at now.
You know, in the brokeragebusiness, right you know?
And recruiting and retentionand all these other things.
I'm looking at these thingsevery single day.
I sleep about it, I sleep onthem, you know whatever, and at
the end of the day, what I willsay is just to kind of kick this

(38:51):
little segment off, because Iknow Chris has got a ton of
boiling over to talk about this.
But you know, a lot of peoplecome in with employee mindset
and that is a huge one, right?
Yes, I interview agents leftand right.
That's the truth of thebusiness that I'm in.
Right, I meet with people thatare aspiring, soon to be, want
to be about to get into school,just about to test or whatever

(39:14):
types of folks who are vettingus out to see if maybe we might
be a good fit for them and whatthey want to do in their real
estate career.
So we interviewed with thesepeople and they're all soon to
be brand new and a lot of theirquestions are very simply put
like what kind of leads do youprovide me?
Do I need to go get thebusiness or do you give me the

(39:36):
business?
And there are different answersto that, based on if you're
going to be in a team, in a teamridge, in a boutique brokerage,
in a midsize to a large sizebrokerage.
There's all kinds of differentstyles, which they're all good.
There's the great ones and thenthere's those same ones that
are the bad ones.
But ultimately, I just cannotsleep at night and tell a new

(39:56):
rookie agent hey, come to me soI can make you successful.
Because the problem is in thatone little 45-minute hour
meeting, which is a reverseinterview.
Right, they're interviewing me.
They're interviewing my brand,my company, my support system,
my staff, my systems, mytechnology.
That's what they should beinterviewing right.

(40:19):
I don't get to necessarilyreverse the mirror because
there's not enough time to beable to say hey, now that you've
asked me for 45 minutes, I wantto poke and prod in your mind
for 45 minutes to figure outyour level of grit, your level
of grind, your desire, yourfinancial goals, what bills
you're paying with this, whatyour treasure, your war chest,

(40:40):
looks like.
Getting into this, that'sanother one.
A lot of people get into realestate without a job or broke,
and getting into real estatewithout a job or broke makes you
broker.

Speaker 3 (40:50):
That's right, that's true.

Speaker 2 (40:51):
Because a lot of companies out there, whether
they're pushing their agents toeither run the table with buyers
or lead with listings, whateversellers or buyers they all cost
, yes, Right, Because all of asudden you're a business owner,
you're a business operator andyou didn't realize that gas
costs money and your time costsyou a lot of money.

(41:13):
Right, Most don't understandthat concept.
Yeah, and then let's just sayyou get lucky on the phone and
you're a cold caller and you gotlucky in your first week.
Now you've got to putprofessional photos, or at least
if you're worth a damn, youshould be using professional
photos.
You should be using the $115super lockbox, not the $20 combo
, right?
But that's a choice thateveryone is listening to can

(41:34):
make for themselves.
You should probably be offeringsome sort of virtual staging if
it's the right house, maybesome actual, real staging if
it's the right house thatqualifies for that.
Maybe a little landscape makeready before the photos, like
all the things that people do toget homes really, really sold
right.

Speaker 1 (41:47):
Isn't it amazing that and you sparked something that
needs to be said isn't itamazing that there are agents
out there that are stillcharging 3% and not doing what
you're talking about?

Speaker 2 (41:58):
I was just talking about this to my class two days
ago because they're brand newand we were going over the
listing agreement and Iexplained to them that they can
either be professional marketersin this environment, because we
do know now that right nowhomes are sitting on the market
in the greater San Antonio metroarea, which is about five or
six contiguous counties orwhatever.
That is about three to four anda half months, maybe five

(42:19):
months in some cases.
We'll call it three to fivemonths, so if you get a listing
right now, that might be apayday in March if you're lucky.
Correct you know what.
I'm saying Kind of sort of right, there's going to be outliers,
but you've got to start.

Speaker 1 (42:29):
Even if you price it accordingly, that's right.

Speaker 2 (42:32):
So you've got to load the pipeline, get the pipeline
nice and full so that way, asthese things start to pop,
everybody's winning.
That's right, you can haveconsistent paychecks or whatever
.
But I was basically explainingto them what we know.
Some of us old school guys likethe three Ps.
Right Back in the day it usedto be like, okay, put a sign in
the yard, put a lockbox on thedoor and pray.
And going back to what you'reasking me, who?

Speaker 1 (42:52):
is that that I saw on social media that was planting
those not planted, burying those.
You see that I was like.
Are you serious?
It works every time.
Nothing to do with your pricing, though.

Speaker 2 (43:06):
The saint of real estate right, but yeah so
ultimately, there's 3P agentsout there and I'm going to tell
you right now because cause Imean you know we're all in
different types of organizationsand things, and mine is a
larger one, based on citynumbers or whatever.
Like man.

Speaker 1 (43:22):
I, I, I I.
I'm ashamed if I have an agentin my organization.

Speaker 2 (43:30):
I'm ashamed that if they have a listing, if they, I
always tell people close mouths,don't give head, Absolutely.
If you need professional photosand you can't afford them at my
company, call me Holler Yep.
If you need a super lockboxbecause you just can't afford it
, call me.
Yeah, Because.
And if you need a sign, call me.
And the reason I say that isbecause my name's on that

(43:51):
listing agreement.
Damn right, and you justassociated me with that listing
because you're my proxy.
I mean we can get into that tooas well.
But I'm a representative of fillin the blank, right, but that's
people like us at this tablethat have taken pride in our
craft and refuse to go chargefour, five, six, seven, 8%,
whatever that number is becausecommissions are all negotiable,

(44:13):
right, but whatever that fee isand not be able to look at you
in the wide of your eyes and say, hey, with that charge comes
this amazing service, that'sright.
Right, you know, because agentslook at me all the time and
they're like Jeff, like you know, the van in the driveway like
it doesn't turn on, and you knowI really make your house look

(44:35):
like shit on the MLS that onceit's syndicated across the world
we can't pull it back.
Right, like, this is your oneshot.
You know this is like your M&Mone shot.
That's right Like you.
Better make sure it makes sense.

Speaker 1 (44:52):
First impressions are everything Well, jeff, you know
, let's get it done.
Do it yourself if anything, doit yourself.

Speaker 2 (44:55):
And then the listing agent is just like well, you
know, like well, who pays forthat?
Well, the guy that wants tomake 6%.
Thank you, like what the hellyou know?
Like let's get off of our lazylaurels.
And like let's get into thegame.
No, you are correct, becauseit's not hard, honestly, to
distinguish an agent who gives ashit about their craft, who
refuses to be average.
And then there's a bigdistinction amongst the ones who

(45:19):
are okay being the 3P listingagent or the 3P buyer's agent.
I think it's ridiculous whenbuyers are out there walking
into open houses on Saturdaysand Sundays alone and their
answer to the agent in the openhouse is well, they sent me out
here and told me to call them ifI find something I'm like wow.

Speaker 1 (45:36):
I've heard that so many times.

Speaker 2 (45:38):
I mean I'm sorry, man , but everyone is nodding their
head in the car and truck or inthe shower right now listening
to this.
When it comes out, or whateveryou know, like man, your buyer's
agent is a sorry ass.

Speaker 1 (45:46):
You had a client.
Now they're ours.

Speaker 2 (45:49):
Yeah, exactly, yeah, exactly.
They get in front of a Chris ormyself like they're done.
Yeah, they're toast, yeah.

Speaker 1 (45:54):
So and you mentioned something that I want to kind of
hone in on and I'm painting apicture because the scenario
just took place the idea ofpride.
I'm not seeing the level ofpride that should be taken by
professionals like us.
And here's the example.
I had a solid agent reach outto me yesterday, said I'm

(46:16):
working with these buyersveteran buyers are buying around
600,000 right now.
They've shopped with VeteransUnited, They've shopped with
that, that, that, that, thatthey're looking for the best
rate.
Okay, no problem, I'm going totell you right now I'm maybe not
the best rate, but I can tellyou I'll get the deal done,
smooth transaction, et cetera.
We're set to expect we'll haveoptions for them, all that jazz.

(46:37):
So I finally jump on the callthis morning with the borrower
and, after reviewing just whatthey submit, said ma'am, you've
been shopping with all thesedifferent lenders, You've got
these rate quotes that you sentme, all this stuff.
Did any of them raise the redflag that your front end ratio
is at 60%?

Speaker 2 (46:57):
Well, what do you mean?
We're well qualified.

Speaker 1 (47:00):
Well, I mean, based on, maybe, what you entered into
the system.
How many of these lenders didyou send your documents so that
they could verify what youentered into the system was
actually what they could use,because you've got a close date
of the 6th and you still haven'tpicked a lender, but that's you
being an educator.
You know what I mean.

Speaker 2 (47:18):
That's you being an educator In this case scenario.

Speaker 1 (47:20):
I told her verbatim God, I wish more lenders would
start taking pride in what theydo, because if I was somebody
that was just throwing outapproval letters and getting
people under contract, at somepoint it's going to catch up to
that person and you're going toruin your reputation, if you
even care.

Speaker 3 (47:39):
Well, we live in a society that's full of instant
gratification, like he said,with agents coming into the
business broke.
You want to come into thebusiness because you saw your
friends mom's a real estateagent and she drives a whatever.
They think they're going tocome in and just start making
money.
Come in and ask them for leads,ask them for this.
Well, they don't understand.
Being a real estate agent isowning a business and you have
to invest in your business,right, and you go and you look

(48:00):
at the businesses you're talkingabout.
They're the I'm not gonna saynames Um, I almost did, but
they're online and they're toobig to fail.
Yeah, so they can as they want,because they don't care, because
they're going to try and get asmuch as they want and their

(48:21):
service sucks.
And that's the people that youand we are competing with the
online brokerages, differentaffiliations.
That's where you're runninginto this constant problem with
these agencies.
They want to go and they wantthe cheapest splits, the
cheapest whatever, but they'renot willing to put in the work
to make the money they need tomake to make their business
successful.
That's right.
You know, when I got in thisbusiness almost almost eight
years ago, I said I'm not goingto start full time until I have

(48:41):
six months of reserve saved up,and I was coming from a business
where I made really good money.
Sure, now I run off of a 12month operation, so I have 12
months of reserves put away justin case you never know what's
going to happen.
And we get so many agents youngagents that come into this and
like well, I have a house that Irent or an apartment that I
paid you know $2,000 on.
I need to make a paycheck quick.

(49:02):
That ain't my problem.
Nope, that's a you problem.
That's right.
So what do you want from me?
I can train you.
You know we're on the team side, so we do provide some leads,
but my business is probably 94%sphere and that's 60
transactions a year.
These agents come in andthey're like well, I want all
the team leads I can get.
Well, first of all, we don'tjust give you team leads.

(49:25):
You got to earn it because weconverted a very high rate.

Speaker 1 (49:28):
In addition, if the leads coming from me, just like
you said, my name's stillattached.

Speaker 3 (49:32):
And every one of our listing agreements, bi-rep
agreements, is our brokerage andShane so it's his name on it.
So you're not just going tocome in and just get leads.
You have to show that you canbe established, stick with the
program.
You have your 90 daysonboarding.
But these agents, they wantinstant gratification and it
goes back to like well, we'vetalked about us together, me and

(49:52):
you together.
They see social media, they seethe Grant Cardone's, they see
the high end producers, andthey're the same agent standing
at the foot of the apartmentstairs with a busted ass Kia
taking selfies saying I'm thetop producer.
You're not.
You're not.
You're asking to be one, butyou're not willing to put in the
work.
It's a business.

Speaker 1 (50:20):
You have to run it like a business.
I'll even go in further it'snot just a business.
You are the business there.
There is no biz.
Yes, there's a P and L thathopefully you should be keeping
track of expenses, what comes in, what goes out, taxes got to
move those aside, et cetera.
So, matter of fact, somebodyposted uh, what should I get a
buyer or a seller after alisting?
I have no idea.
I said you collect your checkand put some away for the next

(50:41):
time because you're going tohave expenses.
Hopefully you did a good enoughjob that the gift to them is
their money.
But of course you can get themanything.
But the idea of it being you asthe business needs to be
adopted more in the mindsetaspect of these folks, because

(51:02):
then in that case you're nowinvesting in yourself.

Speaker 2 (51:05):
Yeah.

Speaker 1 (51:05):
You're not throwing money into this business that if
it fails you get to just walkaway from.
No, you as the realtor, as thebusiness schedule, C 1099
employee, when you walk away,the business is dead.
You are the business, so it'sfollowing you.
That's your reputation.

Speaker 2 (51:20):
That's everything that you supposedly had worked
for or up to to get to thispoint, yeah, so one of the
things that you know, as I'mhearing this I'm thinking about.
I always tell people in thatinterview process, right?
I always tell them at ourcompany yes, you're going to be
a real estate professional, yes,you're going to be in the real
estate gang if you will in ourclub right.

(51:42):
But you're an entrepreneur.
The real estate cartel, baby,that's right yeah, but at our
company you're an entrepreneurfirst who specializes in real
estate.
Ooh, I like that.
Right, so it's like, instead oflike peeling it back, let's
package it back up.
That's right.
Okay, let's put the bow on.
Let's start at the bow.
The bow is you're theentrepreneur who specializes in
real estate, right, right, buteveryone gets into it.

(52:03):
Most people, and when we sayeveryone, like Chris, yourself
and myself, anyone listening,like almost everyone, to what we
do they're like I want to be arealtor, I want to be a realtor.
I'm like what does that looklike?
Well, I don't know.
What does that feel like?
I don't know what are the dailyactivities.
I don't know what are the highleverage activities.
I don't know what are themoney-making activities.
I don't know, and I'm likethat's why you might want to

(52:25):
consider joiningitional side.
We can teach you all of it.

Speaker 1 (52:35):
Matter of fact, jeff, I think you've actually
mentioned this before in aprevious discussion, but the
idea of the kind ofapprenticeship I mean it takes
an appraiser how many years to-actually become an appraiser.
Matter of fact, when you becomea police officer, they make you
do ride-along before you evenmove forward, make you work in
the jail first.

Speaker 3 (52:53):
That's right.

Speaker 2 (52:53):
It's like they make you do ride along before you
even make you work in the jail.
That's right, yeah.
Like do you really want to dothis?
Yeah, you're a cadet first,right, yeah, before you ever get
some action for sure.

Speaker 1 (52:59):
And what happened to the idea of and this is
something that I do, I don'tknow anybody else when I would
hire a brand new to the businessloan officer.
I want to be a loan officer, Igot licensed to hang my hat here
, et cetera.
My number one goal is to scarethe piss out of you, because
it's not fun and games Once youactually become under an

(53:20):
umbrella.
The same thing happened on thereal estate side, and that's
it's like anybody come on.

Speaker 3 (53:26):
This is something we talked about when the NAR
lawsuit came out and we weretalking about that, the three of
us you you mentioned.
Only 13% of agents succeed, 87%fail.
Fine, Good, I'm good with that,because we need to.
We need to clean the purge thesystem because there's not
enough quality, there's notenough um testing, there's not

(53:47):
enough education.
It's too easy to become arealtor.
It's too easy to go and getyour license and to go jump into
the business and get yourselfsued.
It's too easy to bankrupt yourbrokerage or bankrupt your ENO.
And that's the problem I thinkI see with with agents now is
they do come into this businessmassively uneducated.

Speaker 2 (54:03):
I heard somebody the other day said they got their
license in like seven days, Likeyeah, if you didn't go to sleep
, you could do it online and inperson night weekend you know,
self-paced and all that.

Speaker 3 (54:21):
I think I think I've heard like nine or twelve days.
Wow, I knuckled down, it tookme six and a half weeks and that
was every day going online andI went to champions for, uh, the
prep course on the state andnational and I'm like whole like
and they walk in like okay.
So what do I do?
Yeah what are you talking about?

Speaker 1 (54:32):
what do you do what?

Speaker 3 (54:33):
are they teaching and I?

Speaker 1 (54:34):
guess, with the power of social media, it's pretty,
it's fairly simple to give theperception that you know what
you're doing.
Uh, before you've even actuallydone something like you were
talking about, you tiktok reels.
Here and there you're takingselfies.
You know, you get a deal andyou go.
Uh, what do?

Speaker 2 (54:52):
I do, I think, something that y'all both would
agree with um, and and mymindset has my mindset has has
changed over the years, right, Imean.
So there's like establishingyour business, then there's like
solidifying your business, thenthere's like creating more of a
legacy for your business so onand so forth.

Speaker 3 (55:04):
Right, yeah, all of that jazz, right.

Speaker 2 (55:06):
And so, um, yeah, early on, man, I I'll, I'll be
the first to throw myself underthe bus.
It was take anybody with abeating heart, Absolutely Period
.
End of story, Like there's nobones about that.

Speaker 3 (55:16):
Like it is.

Speaker 2 (55:17):
It is what it is, or was what it was right.

Speaker 3 (55:19):

Speaker 2 (55:20):
So bring them on Right, because again, you don't
know exactly who they are orwhat they can become, until you
see them in a trainingenvironment, if they're falling
asleep, if they don't come totraining, if they're eager
beavers like, if they're alwayscontributors like, you just
don't know, right, until yougive someone an opportunity.
So that's kind of where I dohave like you know it's an open

(55:41):
door, like okay let's see whatyou got.
Let's see what you want to do.
Right, if you want to buildyour own business, then we're
here to support you.
But you know, if of goes to mypoint, which is this is
something actually my wife and Ihave been talking about for the
better part of, I think, thebetter part of 12 months or so
about a year is the, the desirein the true flex to be able to

(56:06):
deselect people.

Speaker 3 (56:07):
You, you're in business with right.

Speaker 2 (56:10):
Like, like, let's say your story about that consumer
who you know has been shoppingaround rate blah, blah blah.
I feel like I know you wellenough to say this.
If they were not going tolisten to your education and
absorb it as truth, I canpromise everyone listening Mark
Jones does not want to do theirloan, sorry.
I won't do it Now, maybe canyou admit years ago you might

(56:31):
have been.
I'm going to do everyone's loan.
Maybe or were you ever that?

Speaker 3 (56:34):
guy?
No, I was, I absolutely was.
I think we all were at onemoment Okay.

Speaker 2 (56:37):
I absolutely was, because that's just our bravado,
that's just our ego, that'sjust our desire to win right,
Because we're all winners right.
We're all fighters right.

Speaker 1 (56:44):
Because at that point and I can't fault the folks
that are doing that, especiallyif they know who to turn to when
shit and shit hits the fan orbefore it gets to there and I
have to have a solid answerYou've got mentorships and
whatnot, but early on it wasI've got the resources.
How else do I get business Now?

(57:05):
Mind you, I didn't makepromises to people that I knew I
could not keep just yet.
I would always give anexpectation.
I would always say you knowwhat, let me find out.
I'll call you back.
It was never a yes it was a.

Speaker 2 (57:21):
Let me find out so that I can ensure that this is
accurate.
And I think what it goes downto again is do we have the
muscle to be able to deselect acurrent or future client, a
current or future associate, acurrent or future partner, right
In any realm that you want totalk about?
Okay, and so, like I alwaysmake it very crystal clear at

(57:41):
our company, it's not Jeff's wayor the highway, it's the legal,
ethical and moral way or no wayhere, because there are
multiple ways to skin a cat inreal estate, right, but if it's
illegal, ethical and moral, I'mgoing to back you to the hill.
You got me, you got me LikeI'll fight for you, I'm all in
right, but I tell agents all thetime, like you think you're,

(58:04):
this is for the brand new agentlistening, which there should be
a shit ton listening to this,to be quite honest, okay, this
is for the brand new agent orthe brand new in business agent,
or the struggling and businessagent that's listening to this.
Right now, your job is not to goget the next listing, your job
is to go get the next rightlisting for you and your style.
If I take a listing right now,let's just say, in Garden Ridge

(58:25):
or in Stone Oak, and it's a$789,000 listing right and it's
a gorgeous home.
You know MLS and data will tellus we'll get it sold in the
next 90 days.
Okay, if that seller will notallow me to do open houses and
we believe it probably needs it.
Maybe if that seller will notallow me to do the power washing

(58:48):
or the make ready as an example.
I mean there's a million things.
If they have, you know, 17 catsin that house and they don't
want to get it, you know,deodorized and cleaned and all
that other stuff.
I don't know that I want thatlisting, but that's me telling
you after 11 years in thisindustry right, Because when I
first started I thought my jobwas take the next opportunity,

(59:09):
take the next opportunity.
And I'm here to tell the youngagent in business or the
struggling agent in businessonly take the ones you can win
with, because they partner withyou.
That's right.
Don't just take anybody'slisting.
That's not a model.

Speaker 1 (59:22):
Well, that's taking your experience and looking down
the future scope of what thistransaction could end up
becoming.
And it's not.
We have to forecast the trainwreck.
You have to forecast this isabout to be a train wreck.

Speaker 2 (59:33):
Yes, and this is not going to be a five-star review.
This is going to be a one-starbecause we live in a Yelp
society and that seller will bequick to blame you when their
house smelled like dog ass.

Speaker 1 (59:44):
That's also another reason as to why, let's say, you
, as the listing agent, chargeyour six to give the other three
, et cetera, why you can stickto that.
Because you can't get cheap.
You can't get great for cheap.
It's just this thing that weall want as consumers.
I want the cheapest and I wantthe best.

(01:00:06):
How does that make sense?
I mean, somebody else said iton here at some point but you go
to school, you get all thesedegrees so that you can be the
cheapest.
Right, how much sense does it?
You become the expert in yourfield so that you can be the
cheapest.
You're not going to be able todo all of the steps that is
required to be the expert, likeyou're saying, for the cheapest

(01:00:30):
kind of wages.
It just doesn't compute andthose that are willing to part
with the deal that probably theyshould not take are going to be
the ones that are able to stickaround, do show that value, can
get the transaction from A to Zwhen they expect to get it from

(01:00:50):
A to Z, like you're saying andthe magic is being able to
assess if the consumer or theclient, the buyer or the seller
has expectations that you caneven meet, because many of them
have very unrealisticexpectations.

Speaker 2 (01:01:04):
And no matter how good a Chris Jacobs is, he won't
be able to meet them where theywant to be because they're
coming from an unrealistic pointof view right Now.
It takes us, with our historyand our experience, to be able
to say man, that's just, I'dlove to get you there, but that
version that you want me to golike it's like taking an
overpriced listing.
You know it's one thing to do.

(01:01:25):
At 5 or 10K, okay, maybe cool,whatever, not a problem.
That's probably something wecan all agree that you would do,
correct.
But if I could list it for 25Kmore, I would list it for 25K
more Absolutely.

Speaker 1 (01:01:35):
I make more guys Like why would I not?

Speaker 2 (01:01:37):
Why I'm here telling you this is the threshold, right
?
And so, again, I always tellpeople like man, be careful that
you don't get loaded with threeor four overpriced listings
because you weren't strongenough and I say that with love
to be able to say you know what,I don't think we're a good fit.
I don't think we're a good fit,right?
If you can come down to mymarketing approach and my price
approach, my pricing approachBased on the data, I'm good,

(01:02:00):
call me back, but I don't knowthat I'm the agent for this,
because then the youngin-business agent or the
struggling in-business agenttakes that on, knowing they
should have never done it.
They neglected to listen totheir gut intuition, yep, and
now they're in deep with two orthree really bad situations that
are keeping them away from thenext blessing that was supposed

(01:02:22):
to come down their way anyways,and then people like us are just
ready to receive it for youbecause you muddied the road
ahead of you and you weren'table to say no, and I guess
that's kind of what I startedwith saying is like being able
to deselect and being able tosay no is a strength, absolutely
.

Speaker 3 (01:02:36):
And it takes a muscle and you got to work that out
sometimes because right now wewant yes, yes, yes, yes, yes,
I'll take it, I'll take it, I'lltake it, but adding onto that
too, and from the new new agentperspective, as I still remember
being very new, this is where Isay and we talked about this
yesterday in the group textagents that are going out there
and you're spending five, six,seven, eight, nine $10,000 a
year on coaching and all thisbullshit stop, because what he

(01:03:01):
just talked about, yourimmediate solution, is all right
, mr Seller, my number is this.
Your number is this how about Ipay for an appraisal on your
property?
You sign the listing agreementand we see what that appraisal
comes in.
That's strong, because insteadof going and spending eight,
nine $10,000 for some dude inFlorida that has no idea what
market I'm in, that's not evenin production anymore and it's

(01:03:23):
been a coach for 10 years out ofproduction I just took that
$8,000 and I invested it back inmy business and said, okay,
it's going to cost me 500 bucksto maybe get this seller to see
my side of it.
And so if he says, no, what'dyou waste $500.
Cause you're going to get moredeals like that, then you're
going to lose.

Speaker 1 (01:03:39):
And I think most importantly, you removed emotion
from that A hundred percent.

Speaker 3 (01:03:43):
But you also showed him you were willing him or her,
sorry you were willing to putskin in the game and say I'll
take care of your pictures, justlike I'm going to take care of
your marketing.
I'm doing it right now.

Speaker 2 (01:03:56):
Hey, I like you enough.
I want to work for you.
I want to be yourrepresentative.

Speaker 1 (01:04:00):
Or at least I believe in myself enough.

Speaker 2 (01:04:02):
But we're only off on one thing and let's figure out
how we can, and at the end ofthe day, that seller called you
because they need to sell Iagree 100%.

Speaker 3 (01:04:11):
Somebody is going to sell that house, why not be me?
Let's start with this and seeif we can get to a number that
makes sense for everybody, andmaybe, maybe that house is one
of those outliers out there thatsomeone will still overpay for.
That's fine.
But if it's that good, multiplepeople are going to want to
overpay for it, which is thengoing to drive it up closer to
your number and make you moremoney and me more money, because

(01:04:33):
I'm percentage based but.

Speaker 1 (01:04:35):
I think the the for you.
For you, it's not difficult tohave those conversations.
Matter of fact, as a lender,it's not even difficult for me
to have these kinds ofconversations with buyers that
are selling a house and tryingto buy it's like okay, if your
realtor hasn't told you this,let me be the guy.
But in your mindset, man, thisis going to go down another

(01:04:59):
rabbit hole.
Where are we at on time?
We are at 106.
Okay, maybe another 15 minuteslet's go.

Speaker 2 (01:05:08):
The people want more, I agree, but I think I know,
where you're going to go withthis.

Speaker 1 (01:05:16):
Go for it, no go for it.

Speaker 3 (01:05:18):
Our mindset is very different than new agent
mindsets and, to sum it up, Iwas a new agent and I did that,
and if you're dumb enough to getin this business broke, with no
education, no way of supportingyourself, don't get in the
business.
That's why I'm happy with 86%of the industry not working out,
because at the end of the day,you're going to lose the deal
anyways, because I'm going totake it from you, because I'm

(01:05:39):
willing to invest in my businessand you know what new agents.

Speaker 2 (01:05:41):
It's caveat you know what new agent needs to do.
They need to find themselveshaving a conversation with
someone like him, Agree Withsomeone like me, agree With
someone like you.
They need to humble themselves.
They need to put pride aside,that's right.
They need to offer to.
I'll buy the coffee.
Yes, hey, can you just give me30 minutes of some real talk
about what you think it wouldtake for me to maybe make it?

Speaker 1 (01:06:04):
and get smacked with some real shit.
You know not what you see on tvthis isn't selling sunset,
we're selling san antonio andsurrounding here.
This is real.

Speaker 2 (01:06:13):
You know it's funny because because you know,
obviously, obviously, at thebrokerage level, we recruit all
the time.
It's part of our business model, there's no doubt about it.
You know it's like AGB istrying to get more customers
through the door, like that'swhat they need to do, right, to
be able to do what they do.

Speaker 3 (01:06:25):
I'm pretty sure you put a flyer on my windshield.
Yeah, there you go.

Speaker 2 (01:06:28):
So when we go to you know, at Champions we're a proud
sponsor of lunches andbreakfasts and dinners and stuff
and we go talk to all kinds ofpeople.
And one of the other questionsthat I get at that environment,
like in the school environmentand we even do this in Austin,
man, we're at multiple campuses.
And so they'll raise their handwhen I'm done with my little 10
minute and they're like youdidn't really talk much about

(01:06:49):
training.
How much training do youprovide?
And I'm at the point now wheremy answer is very select or
deselect with my answer.
Ah, okay, my answer is I don'twant this to come across weird,
but I provide more training thanyou'll ever come to.
That's right, okay.
And I just kind of pause andthey're looking at me like what

(01:07:11):
did?
Why?

Speaker 3 (01:07:11):
huh.

Speaker 2 (01:07:13):
And I'm like, let me repeat that I give more training
than you'll ever come to.
That's right.
So you won't have a trainingproblem at our company, it'll be
a you problem.

Speaker 3 (01:07:22):
Exactly, and the only reason you should miss that
training is if you're busy.

Speaker 1 (01:07:27):
Or if you've experienced enough that you're
able to teach that class.

Speaker 2 (01:07:32):
Amen, give that training.

Speaker 3 (01:07:33):
Amen.
I got lucky enough that I getto go in every once in a while
speak to other brokerages thatI'm not affiliated with.
I went and talked to anotherbrokerage a couple weeks ago.
Actually, I did my brokerage inanother brokerage and we had a
bunch of new agents in there andsome of the questions they
asked me like what do you do?
How do you, how are you sosuccessful at what you do?

(01:07:54):
And when I go and lay out myday, they look at me like I'm
absolutely out of my mind andI'm like first question to them
was why?
Why do you feel like that'scrazy?
Well, that's a lot.
I'm seven and a half years intothis doing numbers and you think
that's a lot.
Right, you need to be doingdouble what I'm doing in terms
of the work you put into it.
That's right.
And it goes back to how muchtraining are you willing to go
to.
It's where you're good enoughto give the training yourself.

(01:08:16):
That's right.
And these agents they have noexpectation as to what goes into
it and it's like bye, go,because I'm not going to
bullshit you around and tell youthis is easy because it's not
people that People got into 2020, 2021.
Sure, your year was easy, butguess who's sucking wind now?
Right, that's exactly I'm goingto have my second best year ever
and my best year was beforethat, so it's like the work

(01:08:37):
doesn't stop and they justwanted to magically appear and
go.

Speaker 1 (01:08:43):
Well, it leads me to my final question of this
discussion, and it's kind of atwo part question.
That can be.
Can be, but point blank, prettybluntly.
Number one is it obviousbecause you guys deal with
additional realtors all the timeis it obvious to spot either an

(01:09:04):
inexperienced agent or a lazyagent?
And then here's the second partwhat does it take in today's
market to be a successful realestate?

Speaker 3 (01:09:14):
agent Easier to spot a lazy agent.
Okay, right off the bat, causeas soon as they send the
contract in, the pre-approval ismissing, the third party's
missing, the HOA is missing,they missed filling out the
brokerage section of pages.
I think it's nine lazy agents.
Inexperienced agents, will sendeverything.
It may be wrong and I have noproblem saying, hey, this is

(01:09:35):
what's going on, I'm going to goahead and fix it for you but, I
want you to see what you didwrong.
So before we go to the secondone, let's go cover the first
one so my my, my answer to thatis very similar, but a little
little different approach.

Speaker 2 (01:09:44):
Lazy, I can, we can spot in documentation.
Yes, lazy, I can't identify youin the flesh Oof.

Speaker 3 (01:09:56):
That's strong.

Speaker 2 (01:09:56):
And that's why we are a yes first company.
Come on, and then we got tostart to vet you out and see
what your energy is like andwhat your reputation becomes
right, and then if we're justnot a good fit, then maybe
that's a conversation down theroad.
But yeah, I can spot lazy in acontract, I can't spot you lazy
in the flesh.

Speaker 1 (01:10:16):
And, chris, you said something that I think all three
of us would more every timeagree with.
Yes, it's easy to spot the lazyagent because of the lack of
what they do on the contract.
But if we spot an inexperiencedagent, we have no problem
filling in the gaps, helpingthem get to where they're going

(01:10:36):
to be.
Why?
Because they took the time toat least complete the work at
its entirety, to do what theyneeded to do.
Maybe they were lacking whatneeded to be here and dotted, et
cetera, but for those people,you've taken that step, versus
just throwing shit together andgetting it to you.
How many other contracts areyou writing right now, sir,

(01:10:58):
ma'am?

Speaker 2 (01:10:58):
I tell our agents all the time if you're on the other
side of a deal where you justare with a really nice agent who
just doesn't know what theydon't know.
When this deal is done, recruitthem to our company Because
they strong yes, Because they'realmost there Correct and,
unfortunately and sadly for theworld that we live in, lazy in
one document can get everyonesued.

Speaker 3 (01:11:18):
Sure that's my good point.

Speaker 2 (01:11:20):
So it's just a matter of like did they do it because
they don't care, or did they doit because they don't know
better, right, right.
And so a lot of our agents cometo our meetings and they're
like, hey, jeff, like I'm, I'min this deal with this one and,
man, I want them to talk to youCause I feel like they could be
great over here.
That is correct.

Speaker 1 (01:11:36):
I'm like, well, shit, set that up, like let's let's
talk to them Like maybe theycould be great over here, you
know, um, but yeah, this guy'slazy, this chick's lazy, no,
it's not a situation of they'redoing the best that they can,

(01:11:56):
they don't know, et cetera, theyare just lazy.
Then the last part, and this isthe grand finale, is what does
it take in today's marketbecause it's not the same market
, more than likely, than whenyou first got in the business to
be successful?

Speaker 3 (01:12:14):
So I don't use that word.
Okay, that's a, that's a, um,that's a bad word to me, because
success, success can beadjusted right.
So if you're coming from anindustry, you're making $60,000
a year, and you get in realestate and you say okay what is
that word?

Speaker 1 (01:12:29):
They use subjective.
It is because you can alwaysmove the goalposts to success.

Speaker 3 (01:12:32):
Because if your goal is 150,000, but, you make a
hundred, most people say, well,that's pretty successful.
I made double what I used tomake.
I measured off goals.
If I don't hit my goal, I'm notsuccessful.
I like that.
So I think the biggest thingthat we can do now to be
successful in this business issimplify your systems.
So we had a conversation aboutthis on my podcast not too long

(01:12:53):
ago, about how to be successful.
What do you use?
And a lot of people say thesame things.
When I go to these differentbrokerages and go talk to
different people their CRM,their lead generation software,
whatever they use, my CRM is notwhat makes me successful.
My YLOPO, whatever I use, doesnot make me successful.
What makes me successful is mycalendar right, because

(01:13:13):
everything I need to do is on mycalendar.
My calendar is my number onekey to success, because I don't
care if I'm going to have drinkswith the boys doing a podcast
with you listing appointment.
I get alert 24 hours before it.
I get another one two hoursbefore it and it comes to me in
the form of an email, and thatemail does not go into that
client's folder in my Googleuntil that that action has been

(01:13:34):
completed.
That is my to-do list.
That is my organization, thatis my lead generation, because
it calculates everything I needto do when I need to do it.
So simplifying your systems andfinding something that works
for you is the fastest path tosuccess in this business, on top
of consistency in it, I meanwow, that's summed up basically

(01:13:54):
and it is as basic as you'retalking about here For the folks
viewing this, those listening.

Speaker 1 (01:14:01):
You won't be able to see what I'm going to throw up
on the screen, but, jc, if youcould toss that up there, I will
tell you.
Guys, I being ADD, guys, Ibeing ADD, adhd AF was difficult
for me as a top producer when Iwas slinging going to.
What you're talking about issimplify your business,
determine what is necessary,what's unnecessary and, more

(01:14:24):
importantly, what's necessaryfor you to do or who else can do
it or be automated, et cetera.
I found this from my coach thefocus funnel, and it takes all
of the guesswork out of what youdo to determine your business
plan, your goals, your processas a producer.

(01:14:45):
You're basically taking all ofthe tasks that you think it
requires of you to do your jobfrom start to finish.
You list those out as tasksindividually and if it's I've
got to go pick up signs.
From putting that sign into theground, you throw it through
this funnel.
Anything that can be immediatelyeliminated, get rid of it.

(01:15:05):
Anything that can be automated,which there's plenty of tools
to automate a lot of things putit on automation and anything
that can be automated, whichthere's plenty of tools to
automate a lot of things.
Put it on automation andanything that can be delegated,
give it to the person and thencoach that person and fire in or
up as accordingly.
But everything that's left isup to you to do, and that gives

(01:15:26):
you your basic roadmap of how doI get to these goals.
Well, what does it take to be asuccessful realtor?
Well, what is success?
Well, let's first start withhow much you want to make.
Determine how much productionit requires of you to get to
that point.
Yeah, jc, you can kill that,jeff.
What are your thoughts on this?

Speaker 2 (01:15:47):
So, I mean dude, I feel like I could write a book
about this one topic, right?
I think that you willeventually, yeah, maybe.
So yeah, I'd buy it.
Yeah, there you go, get yourbook Put it over here.
Yeah, and we'll put it over here, yeah, so I think you're 100%

(01:16:12):
right, both of y'all, withsaying that success and I put it
in air quotes is a bastardizedterm.
Okay, it's been beat the hellup.
Absolutely, because a lot ofpeople have perception with
their eyes and what they see,they believe Right and seeing is
believing.
And you know a lot of people,like you know throughout our
lives, will come up to me likeman, congratulations, bro,
you're killing, you're killing,you're kicking ass.
No-transcript man, chris, keepit up, man, you're killing it.
But in the back of our P&L mind, you're like if you only knew,

(01:16:35):
yeah, if you only knew what I'mdoing to make it right now, to
keep pushing and surviving.

Speaker 1 (01:16:41):
No, you are correct.

Speaker 2 (01:16:42):
So success?
I'll say the same thing thatChris said Success is relative
to the person who hopefully canobtain it Right is relative
right to the person whohopefully can obtain it right.
Right, but I'll answer this intwo different ways.
The first one is because I docoach you know, some team
leaders and some agents every sooften, and I normally do like a
90-day.
I don't want to be your forevercoach, Right.

(01:17:03):
I want to set up some platforms, some systems.
If you really want to dig in, Ican devote some time for you
and we can figure something outright.
But want to dig in, I candevote some time for you and we
can figure something out Right.
But for, from the coachingperspective, I would tell any,
any production agent you know,even any aspiring broker owner,
even any aspiring team leader,like you know, the ones that I
know that are successful, have acalendar that they follow

(01:17:27):
religiously.
They have.
They know how to time block,they follow religiously, Yep,
they know how to time block,they know how to time manage,
they know the worth and value oftheir time, yes, Right.
And they surround themselveswith people who will not let
them fall into victim mentality.
They surround themselves withlions that understand everyone's

(01:17:51):
worth right, and so I thinkyour circle.
It has a lot to do withsomeone's success.
To take it to a biblicalperspective, you gotta be
equally yoked.
I don't know a successfulperson who's got a spouse who's
rooting against them.
I agree, I don't know a singleone.
I don't know a single businessowner or partner and some other
things that I have partners in,and I'm proud of the partners

(01:18:12):
that I have.
They're great people.
But I've watched them, I'vevetted them, I've seen them,
I've had dinner with theirfamilies, had dinner with their
spouses, I've been in theirhomes.
The dysfunction is pretty muchnot even a thing Correct,
because everyone that I knowthat's successful has kicked to
the curb any sense or form ofdysfunction in their life.

(01:18:33):
Right, baby mama drama, childsupport drama, you know vice,
you know different vices, drama,you know ego drama, yeah, all
that shit, man.
And so there's a lot ofcommonalities with people that I
deem successful, right.
And then the other trait of asuccessful person is they fight.

(01:18:53):
They're fighters, right, you'vegot to be able to fight to be
able to say you won.
Everybody just wants to skipthat chapter and say I'm a
winner.
Well, are you a fighter, right?
And so that's like the coachpart of it.
And then I did make a note herebecause I wanted to make sure I
nailed it right.

Speaker 1 (01:19:06):
While you're grabbing that ahead, in addition to the
fighter logic, you've got tohave had your ass kicked a
couple of times.
Yes, because it goes back toOJT on-the-job training.

Speaker 2 (01:19:16):
Amen yes, and on-the-job training for rookie
agent, for second-year agent,for struggling agent.
It's okay if you took theshitty listing.
That's right.
But, you better learn from it.

Speaker 3 (01:19:25):
Yes.

Speaker 2 (01:19:25):
Because if you go do it again, that's on you.
Yeah, you know what I'm saying,so I don't want people to like
to hear us and be like oh, theseguys know it all.
Nah, you know like.
No, what I'm trying to say islike live and learn and don't
repeat the same freaking mistake.
Amen to that.
Like, that's it, man.

Speaker 1 (01:19:38):
Like you know, everyone should at least, and
I'm not saying I wish this uponyou, but everyone should.
You know, yeah, by it beingyour fault.

Speaker 2 (01:19:48):
Yeah, you had a buyer .
You know buyer's agents outthere.
You have a buyer.
You've been showing them homesfor 14 months straight which is
already a problem, yeah, butyou've been showing them homes
for 14 months straight and thenone day you look on your social
media and they closed with theircousin.
Like you need to learn fromthat.
Yeah, you did something verywrong assessing this person a
long time ago and that's whatsuccessful people do is say, hmm

(01:20:11):
, I don't like the taste of that, I don't like how that went
down and I'm not doing thatagain.
So I'm going to create newsystems and filters to make sure
I don't ever do that shit again.

Speaker 3 (01:20:23):
Right, but I'll end my part with this.

Speaker 2 (01:20:25):
Right.
So the other part you know thatwas like the business part
Right, but this is my definitionof success right, and how you
can get there.
Right In just life.
Right, forget real estate for asecond it's having an

(01:20:45):
unreasonable belief in self.
My belief in myself has to bevery unreasonable to anyone else
that hears it, and I'm okaybeing the butt of anyone's joke
in this city anyone else thathears it, and I'm okay being the
butt of anyone's joke in thiscity.
I'm okay of people talking shitabout me on TikTok and
Instagram and Facebook.
I'm okay with it because thescoreboard never lies and
because my dreams are soaudacious that they scare you.
That's a you problem.
And the fact that I believe sobig in this grand vision that I

(01:21:09):
work day in and day out to getto, to achieve, it's not because
I want to say I told you so.
It's because I want to tellJeff, I told you so, and so you
have to have an unreasonablebelief in self to be successful.

Speaker 3 (01:21:23):
There's so much truth in that Cause.
I was literally on the phonewith somebody before I walked in
this office and we were talkingabout how she's struggling and
she's trying to get her, youknow, get back on her feet with
the whole real estate thing.
She was a high producer at onepoint and she was like I don't
know how the hell you do this.
I'm like I I held myself tosuch a high standard that my

(01:21:43):
goal what I consider failure isunder my goal and my goal is so
high that I bet there may be twopeople in this state that'll
hit that goal.
And I won't hit it this yearand I'm pissed about it.
And I'm revamping my systemsgoing look, but it's like I will
.
I am not scared to take on somuch more I'm.
I'm literally building a $2million gym that's the largest

(01:22:08):
gym athletic facility in atri-county area where I live
because I am absolutelyconfident in myself to get the
job done.

Speaker 2 (01:22:16):
That's right.

Speaker 3 (01:22:16):
On top of running a $30 million real estate business
.

Speaker 2 (01:22:19):
And it doesn't have to make sense to anybody else.

Speaker 1 (01:22:21):
I don't care.

Speaker 3 (01:22:22):
That's right.

Speaker 2 (01:22:22):
It ain't your money on the line and I think we would
all agree, because we've beenin the entrepreneur world for
many years.
If you're rooting against me, Ican see it in your eyes, you
damn right.
If you think that I'm notnecessarily crazy cool, but you
think I'm crazy dumb, yep, Iknow it.

Speaker 3 (01:22:39):
Yeah, I know it, I know it Rich people rich,
wealthy people, successfulpeople do not hang out with lazy
people.
No, they don't.
My business partner in the gymthinks the same thing of
themselves as I think of myself.
That's why, you see, when richpeople travel, they travel deep
with rich people.
When poor people travel, theytravel deep with drama with
other poor people.
When I was broke, I wanted tohang out with the top dogs.

(01:23:01):
That's right, because I'm goingto sit there and I'm going to
listen to every damn thing yousaid.

Speaker 1 (01:23:04):
Yes, and that is something we can close this off
with, but the idea of people'smindsets to not want to be
around other successful peopleor people that are better than
them, currently at the fear oflooking bad or not being able to
to match what they're doing howelse do you learn you?

Speaker 3 (01:23:26):
know, and then if you're hanging out with those
kinds of people, that's thewrong people you should be
hanging out with.
Like, I hang out with a groupof guys that are very well known
in the veteran community, verywell known in the YouTube
community, that areastronomically wealthy.
They don't belittle me, right.
They pick up the meals.
I try to pick them up when Ican.
They invite me everywherethey're going and these are, as
everybody here has heard of,that are literally like world

(01:23:47):
famous.
Those are the people that Iwant to align myself with,
because you get to a point inyour career where you're you.
You you start early and you'rechasing somebody.
They're chasing the Jeff Gargesin the world, you're chasing
the Gary Kellers, the GrantCardone, whatever.
I'm at the point in my lifewhere I'm chasing myself and
I've got some really bad-asspeople that are like hey, what
can we do to help?

Speaker 1 (01:24:06):
That's right and.

Speaker 3 (01:24:07):
I'm like I don't need you to help me, I'm good.
No, how can we help yourbusiness?
And they put me on some oftheir social media stuff.
They let me host a huge dinnerevent for the largest content
creators in the world.
That's awesome and it's likethat's how you do it.
That's right, that's how you doit.

Speaker 1 (01:24:26):
Find the right people .
Well, much as you want to seeyour own success, but I think
that's when the cohesiveness ofgrowth starts to take place.
You see yourself surrounded byother people that are also
rooting for you, with zerovested interest into whatever it
is that you're doing.

Speaker 2 (01:24:40):
I got to add man Chris is on to something right
here.
So the more that youdemonstrate your daily efforts
and your daily commitment Idon't want to say hustle and
grind, because that's adifferent thing but the more you
demonstrate your dailycommitment to your audacious
goals and you're actuallygetting there and accomplishing

(01:25:01):
them and then just leveling upand leveling up and leveling up
all that other jazz the morecachet you have with people who
are either at the same level ofsuccess that you are or greater,
who will take you to dinner ortake you for a freaking press
juice and be like hey, I don'twant anything from you.
A, what A pressed juice.

Speaker 3 (01:25:21):
Yeah, yeah.

Speaker 2 (01:25:21):
Cold press.

Speaker 1 (01:25:22):
You don't have those in La.

Speaker 2 (01:25:23):
Verna, there you go.

Speaker 1 (01:25:23):
Yeah, well, you need that On your way out, hold on.

Speaker 2 (01:25:27):
I want rights to put the cold press juice bar in your
gym, okay, so anyways, it'llkill it, right?

Speaker 3 (01:25:32):
It'll kill it.

Speaker 2 (01:25:33):
But but what I'm saying is you have more cache
with people who will take you togo grab a steak and say hey, I
don't want anything from you.
But if you ever need me andthey mean like from a investment
or financial standpoint I will.
I, it's a yes.

Speaker 3 (01:25:49):
I got you.

Speaker 2 (01:25:50):
Yeah, and I've been a part of those meetings.
I think all of us probably haveat some point.
That's when you know thatpeople believe what they see and
know enough about you becauseof not what you've said, but
what you've done.
Absolutely, and I tell peoplethis all the time.
Right, and again, you know, yes, I actually did go to a

(01:26:11):
biblical place.
We all have builder's hands.
It's true, we all havebuilder's hands, and every man
and woman that's trying to makeit in this world has the same 24
hours, you and I and Chris have.
But we've got to go put in thework and you know it's like
anything else.
Lebron has haters, kobe hashaters, tim Duncan has haters,

(01:26:32):
shaq has haters, you're going tohave haters.
You have haters, I have haters.

Speaker 1 (01:26:36):
It's okay, that's right, because haters focus on
winners, that's exactly right,and so I just like to work hard,
and if you don't have anybodyto hate, you can hate on me.

Speaker 2 (01:26:45):
Yeah, yeah, yeah that's right.

Speaker 1 (01:26:48):
So with that being the case, guys, for those of you
listening, if anything that yougot out of this discussion, I'm
hoping that it goes along thelines of if you look back at all
the things that you've done andaccomplished thus far and
determine how many of themistakes that you made along

(01:27:09):
that road and how many of thosemistakes you made that you
learned from and changed whatyou were doing to allow yourself
to not make the same mistakesover and over I mean without
being insane, so to speak.
Now think for a moment.
Could you imagine where you'dbe at if you never made a

(01:27:31):
mistake at all?
Just think about that.
Guys, I want to thank you foralways providing some fire
aspects, and I mean it just.
This discussion went so manydifferent places with so much
valuable information.
And it's from real shit.
It's not.
I read this in a book somewhere.
No, I'm sure we all read inleisure.

(01:27:52):
When it's time to take a lookat the next something I've never
done before but for the mostpart it's time to dig in, it's
time to get your hands dirty,it's time to mess up, make some
mistakes, learn from them.
Don't make the same mistaketwice.
If you can do that, man, you'llbe pretty damn successful in
this business.
I think For sure.

(01:28:13):
Thank you both for joining.
I really appreciate it.
Those of you out therelistening, thank you for
continuing to support.
We just hit 15,000 subscribersthis morning, so somehow,
someway, we're making mortgageand real estate sexy again.

Speaker 2 (01:28:28):
And I have a juice bar coming in to the greater La.
Verna, you heard?

Speaker 3 (01:28:32):
it here first.
There you go.

Speaker 1 (01:28:35):
Guys, we will catch you on the next one.

All Episodes

Episode Transcript

Popular Podcasts

Stuff You Should Know

24/7 News: The Latest

Crime Junkie

.css-15opob5{left:0;position:absolute;top:0.8rem;} All Episodes

.css-14f5ked{margin:0;word-break:break-word;display:-webkit-box;-webkit-box-orient:vertical;box-orient:vertical;-webkit-line-clamp:2;overflow:hidden;}Unraveling Real Estate Dynamics: Adapting to Industry Shifts and Empowering Agents

Episode Transcript

Popular Podcasts

.css-r6mb8g{margin:0;word-break:break-word;display:-webkit-box;-webkit-box-orient:vertical;box-orient:vertical;-webkit-line-clamp:1;overflow:hidden;}Stuff You Should Know

24/7 News: The Latest

Crime Junkie

All Episodes

Unraveling Real Estate Dynamics: Adapting to Industry Shifts and Empowering Agents

Stuff You Should Know