KGCI: Real Estate on Air - Becoming a Top Producer Through Rental Leads with Andy Coleman

Episode Date: April 23, 2024

Welcome, welcome, everybody. Happy Monday. Welcome to another episode of Realtor Hacks, Tips and Tricks. I am one of your host, Hallie, a two-time icon agent with EXP Realty, host for American Dream TV, and coach for Tark El Moussa's team at EXP Realty. And I've got my co-host, oh wait, this way, Casey Steyers on. I always feel like confused on Dreamward. Hi. Hi. Also an American Dream TV host out of Raleigh, North Carolina, although she works pretty much the whole state because I've seen you

wearing mountains, beaches, and everything in between the footcoles. City Beach Mountain. We're super excited today. I've actually got a fellow EXP young professionals leader on, but even cooler, he is, you were number three, or number two or number three agent for EXP. So I've been both, and hey guys, my name's Andy. Coleman. Yeah, I've been both. That was number three in 2021 and number, or no, 2002 and number two and two thousand and twenty three time icon agent,

super impressive. Soon to before. Soon to before. I know. I'm like, I'm always working towards the next one. And the cool thing about Andy is that he has had all this major success from rental leads. Yes, you heard that right. Not like, yes, he buys and sells obviously as a real estate agent, but what's cool about Andy is that he's able to do all this through rental leads, which is usually like, you know, if you, I feel like the normal track for, for real estate agents, it's like, you know, you start working on rentals and then you work buyers and then you work listings, but it sounds like, I mean, you can have success working rental leads. So welcome, Andy. Thank you for coming on. We're so excited to hear more about

this. Yeah. Thank you guys so much for having. Yeah, it's, it's actually funny you said that because you seem shocked that you can like, you know, make money doing rentals. And that's what like 99% are realers think that it's just for beginners, you know, that just want to close a couple of deals until they get into the buyers and sellers. Well, I got a secret for you guys because I actually like I'm four years into my real estate career. And I still like doing rentals. I like them more than working with a buyer or a seller. Believe it.

Yes. Okay. Yeah. Let's backtrack a little bit here. Tell us about just a little bit about you. how you got into real estate in the first place. Yeah. So basically I moved from Connecticut to Florida about five, six years ago at this point.

I was doing something completely different. And it wasn't really working out that well for me. So I kind of had to pivot. And what of my buddies who is in EXP reality was like, why don't you get your real estate license? So I did, took the test, passed the test on my first try. And I immediately signed up with EXP. So right. Who's your buddy? I don't know if you know Darren Shashow. I mean,

I don't think so. Maybe not. You probably know. Shout out to Darren. Yeah. Yeah. And then Paul Saperstein was kind of like above him, you know, how it works in the XP. Bigger time agent. And he helped me out, you know, a lot in the beginning of my career. So I get going, right. And we basically like, you know, two, three months before I got my life or after I got my license, we had the pandemic happen. So I'm like, oh my God, what am I? You know, it's like getting thrown into the fire as a brand new agent in a massive state like Florida.

And then all of a sudden, we're in lockdown and everything's like changing in real estate. So the little bit of things I learned as a newer agent, you know, kind of got thrown out the window. So I had luckily started working with rentals. Basically, I wouldn't say from day one, but basically right around December of 2019, that's when I like really started going in on the rentals. And that's why I did my first rental deal. And I was like,

you know what? I kind of like doing this. Like I was helping a family out. It was I think Christmas Eve and they were about to be homeless. They had bad credit, you know, they didn't have the best income and no other realtors would help them out whatsoever. And I was brand new.

So I was taking anything I can get. Right. Right. Yeah. Yeah. I was like, you know what? Like these people,

they need help. And I was like, I don't really know what. doing but I'm going to try it. I'm going to learn. And I must have done, I don't know, maybe 10, 15 showings for this lovely couple, husband, wife, and three children. And I finally found them a place on like Christmas Eve. And like they literally started like when I, you know, did the move in and given the keys and everything. They started crying. And the kids were running around, jumping around like mommy and daddy, we have a we have a house now. And I was like,

wow, this is a good feeling. I like, I like, I like, I like. I like, I like. I like, this it was nice you know listen the commission nothing crazy you know i think maybe i made like i don't know seven 800 bucks you know for the transaction and i put in a decent amount of time nothing crazy but i was new i was learning and ever since then i got hooked i was like you know what instead of focusing on the buyers and the sellers which is nice because you get like you know 10-15 000 commission check um i was like why don't i focus on the renters and change it up a little bit bit because I was at the point where, you know, like I said before, like, you know, we were just about to get into COVID and I was like very inexperienced. So for me, going on like listing

appointments, even working with buyers, like I didn't have that confidence to really like believe in myself that I can, you know, be in charge of a half a million dollar house sale. So I thought that rentals would give me a lot of good experience and exposure to real estate. And I'm telling you right now, it did. Like big time. So like I mean, just, you know, fast forward a few years later. I'm still sitting here scratching my head wondering why isn't this taught in every real estate school, every brokerage. This should be like day one, you know, like like like beginner real estate 101. This should be like like real estate for dummies. Rentals. Like what it should be. Not. It's literally not. So why I kind of got on a mission to start teaching.

teaching agents how to do this because I had, like you said before, I had very fast growth and success very early on in my career. So did you want me to talk about like my first couple years really fast? Yeah, absolutely. Yes. Uh-huh. Yes. Okay. So all right, year one, you know, was, was 2020. Like I said, I did my first deal in 2019 December. And in my first year, I didn't really take this too seriously, to be honest, like real estate. Like I enjoyed it. Like I liked helping families out. And it was fun. I only did about 50. or so deals, maybe 60 deals in my first year. I know that sounds like a lot, you know, 50 or 60.

It sounds like a lot, but there were rental deals, you know, and my average back then was like seven, eight hundred bucks. So I probably. And this is in Florida. Yes. South Florida and you know, if you guys are familiar with like a West Palm area, Alderdale, Miami. So I basically did about 80k in commission.

And I think I like, like maybe like just about capped, you know, for my first year. And I was like, all right, you know, let me, let me see what I can do next year. if I keep this momentum going. And let me try a little bit harder, right? Because I don't know if, I don't know how, how much you guys work. But in the beginning of my career, I was probably only putting in five hours a day, five days a week. I was, I was literally treating this like a nine to five.

Like, you know, taking off Saturdays and Sundays, turning my phone off at five o'clock. And I still did decent, but it wasn't until my second year, 2021. That's when things really picked up pace for me. Because then I started working like eight to 12 hours of, day, you know, maybe not that much of my second year, but a good like eight to 10 hours in my second year. Stop turning off the phone at five o'clock. I stopped like taking off Saturday and Sunday. I stopped goofing around.

You know, that was like the biggest thing I took away from my second year. And believe it or not, I did 170 deals in my second year, which is it was, it got better too because my average commission went up a little bit too. So I ended up making about 250,000 in like net commission. And you guys know icon agent. you know, I kept it all. Plus got the 16,000 stock. So I was like, wow. Like I was in real estate for one whole year. And I just made quarter of a million dollars. Like, like is this like I had to like pinch myself. Like, am I dreaming right now? Like is this really possible? And it was. And it was because I was doing something that other agents were taught basically not to do, which is rentals. And I was like,

you know what? I really, really like this real estate thing and work with renters. Let me, let me take this one step further. Let me, let me work even harder in my third year. I was like, what if I, what if I put in 16 hours a day, right? Just like every single second I'm awake, I'm going to try working, right? I'm going to stop taking vacation, stop taking days off. And I'll tell you what happened because I did get burnt out. I'll go into that a little bit. But I was like, let me try it. Right. Because at that point, right, I was getting hundreds of leads coming in every single day, which I'll talk about how I'm getting these leads in a little bit. And I wasn't really responding to all of them because I was over.

That was doing so much. I was still relatively new, only been in the business for like two years up until this point. And I'm like, all right. I'm going to push myself work as much as I possibly can. And let me try to respond to all my leads, right? And just try to like get to everything. Close as many deals as humanly possible this year.

And that was in 2022. And I did. I did. I literally did every single day. I don't think I took a single, well, I think like January and February, I like was a little bit on the slower side because I was like building up the momentum. And then for the whole rest of the year, I closed 250 deals and made $510,000 in net commission. So like I don't know what the GCI is because I do rental. So like the whole thing's weird. Right. Yeah. But I ended up closing about I don't

know how many sales I closed that year. I think it was maybe anywhere from five to 10 sales. Because like you said before, I still do sales as well. I just don't focus. on them and I do no marketing, no advertising. I'm going to try to get leads for buyers or sellers. Yeah. They're going to convert. And also, you can convert your renters into buyers, like, midway through. Like, as you're actually doing a rental deal, a lot of renters or just people in general,

they don't realize and they don't know that they can buy a house with like three and a half percent, five percent down. Like they don't, they think they need 20 percent. And, you know, they're like, oh, I need, I need $100,000 to buy a house. I can't afford that. I'm like, no, you know, you need three and a half, you know, maybe five percent to buy a home right now, which is like almost the price of like first last and security for, you know, renting, let's say a $3,000 place. That's $9,000 moving cost. But I was like, well, if you can come up with another 10, 15 grand closing cost plus down payment, I can actually sell you a home. And they're like, oh my God, nobody ever told me this. Let's do it. So that's how I actually get a lot of my sales. Like earlier on, that's how I got a lot of my sales. Because at that. point, I hadn't been doing real estate long enough to really like convert my old renters into buyers. That happened kind of like last year and it's really happening big time now. Like I'm going into, I guess I've been in real estate four years now. So I'm going into my fifth year right now.

And now my renters are really starting to convert. Even just today, I had two old renter clients of mine convert into buyers where they just reached out to me. I don't know where, you know, I, I send a weekly email and just staying top of mind. And two of them reach out, and we get your emails. You know, we remember you helped us, you know,

a year ago, two years ago, three years ago, whatever it was, can you help us buy a house? We're ready now. And that happened twice today alone. And it's starting to happen more frequently.

Like the further you get along into working with ventures, the more that's going to happen. So that's why I really enjoy working rental deals because not only is it like fast cash. I ended up getting my commission up to 2,000, thousand dollars on average per deal which that's not that because in some places you know right we make 200 here 150 or 200 so what what area again uh raleigh wilmington north carolina anywhere in north carolina it's like okay so you guys have probably a flat fee mm-hmm yes okay so like all right so and like honestly it's different at every single state so i've talked to i don't even know how many

agents at this point. But in most states, right, you're going to get half a month rent commission. So unfortunately some states like North Carolina, you guys just get a very, very, very small. It was quick. You get what? Yeah, you get half a month's rent commission. Okay. Yes. So essentially, let's say the rents $3,000, you know, for the month, you would get $1,500. And then I always charged a transaction fee. And it could be up to $300 per, you know, like deal I'm working on. So do the math on that, right? Let's say you do 20 deals in a month, 300 bucks times 300. That's what, like $6,000 extra that you're getting that month, you know, per just, just for doing the transaction fee.

So even if you're only getting, let's say, $150, 200 bucks, $300,000, you could still charge that $300 transaction fee to the tenant you're working with. At the end of the day, the tenants don't really care that much because think about it, right, if they got to come up with first, last security and let's just say the place is three grand, that's $9,000 they're bringing to the table. And if they have to give an extra $300 to you as the agent, because most of the time, you know, there's some states like Jersey where the tenant pays the commission, but usually the landlord pays the commission. So the landlords pay the commission. These tenants, they're getting a service from realtors for free. So they don't mind giving a tip. You know,

think about it. If you go to a restaurant, you give a 20% tip to your waiter or waitress, usually. And it's the same thing in real estate. It's just like, giving a tip to your real estate agent. And it's a lot less of a percentage. If you're bringing nine grand to move in, you're only giving 300 bucks. So that's like a very, very, very small percentage. Right. So I've had a very good success rate, you know, asking tenants, hey, $300 transaction fee. So that really helped me out a lot to bring my average up. And I find that it helps agents that don't get the half a month rent, you know, it makes it semi, you know, workable for them to work with renters if they're really not getting much business elsewhere,

right? Like think about this way. If you're struggling and like I've talked to a bunch of agents where they're like, oh, we've only made $5,000, you know, last year and this year, we're struggling to get anything going right now. We have to pick up a part-time job. I'm like, well, even if you're only making a couple hundred bucks, you can charge this transaction fee, right?

And the tenants are happy to pay it, you know, as long as you do your job and you're good and you get them into a place. And it's only when they actually move in and get the keys. It's not like you charge it, you know, up front. There's no retainer or anything like that. And then you can get that average up a little bit more, 500 bucks, 600 bucks. Then if you do 10 deals in a month, that's $6,000. And it is very easy to do.

I don't want to say easy to do 10 deals in a month. You have to put in work to do it. But it's doable. Like I can like my best month. I did 30 rental deals in a month alone with no team. no VA, no transaction coordinator, no assistant. Literally nothing was just me. And I did 30 of these deals in one single month in 30 days.

So it's possible to do 10. Like that's why I say easily because I set up a system. Yeah, that's where. Yeah. Yeah. There's no chance. Oh, go ahead. No, I was just going to comment.

Yeah. I mean, just from what you were saying, it's like, I'm sure he has a system down at this point. And so as long as you have your systems in place, you can knock those out quick. And then on top of that, hiring for leverage too. So. Yeah, like, listen, like, there was no chance I could have done 30 deals in a month in year one because I didn't know what the hell I was doing. I was like doing trial and error. I was experimenting. Like, I was coming up with all of my systems and processes and coming up with all my strategies. Like, I had to really like hone it in. And, you know, I'm sure you heard the saying before it takes 10,000 hours to match.

or something. And it did. It took me like 10,000 hours to master doing rentals. But I finally did, you know, and I'm teaching agents now at everything, which is really cool because I found that other agents, you know, can replicate the exact same thing that I'm doing in most places in the country. Like you just made an example of North Carolina where you guys don't get much commission. So I would say like, yeah, like in some states, honestly, rentals might not be worth it unless you're having like zero success and you can also convert your renters into buyers. So that extra, let's say four, 500, 600, 600 bucks that you'll get on the rental deal is still okay because you can also get referrals, friends and family referrals.

And that's why I do it most of the time because they came from a referral or they're going to turn into a buyer or I can start working with women. Let me talk to you about that then, actually. That's awesome. You brought that up because you're in an area where you're only making. a couple hundred bucks. Do you charge the transaction fee? Not on that because most of the time I just do the transaction and they're coming from like another agent and stuff. So the lease and stuff, I'm not having to handle it. Now, if I'm handling the lease, I do. So you do good, good.

So sometimes you'll just basically like what, get a referral bonus where you just like give the tenant to. Well, if I'm the one with the listing that's a rental, I'll charge that transaction fee to my client. But if I'm not to me like I've got two people right now that they can't buy and they're just struggling to find they're getting turned down. So what I'm doing is I'm going to help them. I'm waiting to hear back from a few people actually. So and just see if I can't get them in. I know I'm only going to make probably $150 on each of these. But at the same time, I'm working on them to turn into buyers. So the long game. Exactly. It's the long game as well. I mean, listen, In some states like South Florida, like Texas, like California, New York, you know, Connecticut even.

I mean, there's a lot of states where it's very profitable to do rentals where you could do both. You could literally do like the fast cash now plus the long game on top of it. So it depends on what state you're in, you know, is really beneficial that. But even for you, you know, those two renters that you're working with, try charging them a $300 transaction fee. because then at the end of the day, if you explain it to them correctly, like literally, and you're like, you're being honest. You're just saying, hey, we don't get paid that much for rentals. I really want to help you out, though.

But I do kind of. I do preface that sometimes. I'm like, just, I want to remind you, I'm not making hardly anything on this, $100 tops. And that's normally what when I break down what I make an hour, I'm losing like $50 at this point. So. Yeah. So these tenants you're working. And like, do something nice for me.

Send me a good buyer or something. Yeah. Even on top, I'm telling you, just be like, hey, is it cool? You know, if you give me a $300 transaction fee to, you know, obviously paid out to XP, they throw it into your commission. Is it cool if you do that? Like, and just explain it to them like that. And I'm sure, I bet you'll be surprised with the tenants when they say, you know what?

You've worked hard for me. You just got me into a place. Nobody else wanted to help me. You helped me. I bet you, I bet you'll give you that $300 transaction fee. And then you can keep doing more rentals, then you'll stack up the friends and family referrals. You'll make, you know, like I said, if you do 10 in a month, that's $6,000, you know, or $5,000 or $4,000 extra you can make.

Plus, you'll start getting buyers off of that. Like I'm telling you right now, like people really underlook doing rentals, especially in areas like you're in where the commission isn't as much as like my area or like, you know, Texas, like Arizona, like other areas that are really popping. What is it for you? So, all right. So basically of course 100%. So basically the average three bed two bath around here is like 3,400-ish, give or take.

You know, I'm in like the Boka area. So, you know, even Miami, Fort Lauderdale, like Boca West Palm, like it's, these are nice areas, you know. So the average commission is half of that, which is $1,700. So I charge the 300 transaction fee because I have a team and, you know, we do a split with my team and everything. Now I have a team. And I could talk about that in a little bit. Because I did this as a solo agent for my first three years of my career. And then 2020, it's weird because it's January now.

I keep saying like this year, but it's really last year. I created a team. So I created a team, the Andy Coleman team. I have agents. I started teaching, you know, to do this. And then they're under me, basically. You know, I brought them in the XP. And we work as a team now.

So I'll talk about that in a little bit. But it's about $2,000, you know, some months, we can have a $2,200 average. commission because if we do you know 30 40 50 deals in a month sometimes the commission is 1800 on average you know i have a whole spreadsheet where i track all of this sometimes it's 19 sometimes it's 2 200 so um i i like to say on average 2 000 per deal and then think about it right if you can do like i was a maniac to do 30 deals in a row like i was just like out of my mind like you know i was like grinding my fingers into the dirt just like really just you know pushing hard yeah But, you know, if you can have that kind of like motivation, you can make $60,000 in pure profit.

Because listen, expenses for doing rentals is almost non-existent. All you're spending money on gas, you know, like literally five bucks a deal, you know, 10 bucks a deal for gas money. So it's all profit. So you can make that 60 grand in pure profit doing it every single month. If you can do 30 deals, if you could do 10 deals, you would make $20,000 profit. If you could do 20 deals, $40,000 profit. So if I can do 30 deals, there's no reason why anybody else can't.

Like I'm not better than anybody. I just put in the time and effort. I put in my 10,000 hours to mastering. You know what I mean? Right. So I've, because I've had way better months than 60,000 because of what you said before. I also do, you know, purchases and listings.

So think about it. If I can do 20, 30 rentals in a month that, you know, let's just say I make 50 grand that month off of rentals, then I do one or two purchases. on top of that that month, boom, I just added an extra 10 grand, 15 grand, 20 grand, 80 grand, you know, to that month. Like, I'll give you an example, right? So this is why working rentals is so beneficial. I had a renter where he wanted a place for like $6,000 in my very first year of doing real estate.

This was 2020. And I was like, wow, that's a big, that was my biggest commission to, you know, back then. I made $3,000 on that deal. And I was like, okay, let me stay in touch with him. So I did the very next year. He's doing better in his business. He reached back out to me and said, Andy, I want to upgrade my rental. Let me, I want a $20,000 rental now.

And I was like, whoa. I'm like, that's a $10,000 for a rental. And we're talking one, two hours of work. You know, these rental deals, if you're doing them correctly, it's one or two hours of work, you know, maybe like three or four on like a very, very, very tough deal. but nothing more than that. Like it's usually on average, I say like two hours, you know, per rental deal. So think about that, two hours of work and I made a $10,000 commission off a renter deal,

which is great, right. But then the next year after that, you know, which or maybe it was like a year after that, whatever it was, right, it was last year. He comes back to me and he's like, Andy, he's like, I'm doing even better now. He's like, I think, you know, I want to talk to you about buying right now. So I'm like, all right, cool. I'm like, you know, how much you make it now? He's like, oh, you know, a million dollars, a million and a half dollars per month.

And I'm like, oh shit. That's a lot of money. I'm like, you could afford a, you know, a nice house. And we settled on like, you know, three and a half million or so. So I find him a three and a half million dollar home. It was, I think it was like 3.4. And I literally made $85,000 as my commission check, which, you know, it blew my mind. And that month, I think I had done like 20 something rentals.

So I made like 135 grand. in one single month just from working rental deals. Because remember, no marketing, you know, for buyers whatsoever. This came from a renter that turned into a buyer. So I literally made more money in one month than the average family of, you know, like a husband and wife makes in like two years, basically. You know what I mean? Like in one month off just working with rental deals.

So that's why I always tell everybody like, you know, yeah, maybe, you know, in your area, like for you as an example, like, you know, if you're only making 200 bucks, No, maybe you're not going to get, you know, filthy rich off doing rentals in your area now, but you never know when one of those renters can turn into an $80,000 commission check. Correct. And that's what I always say. You never know when they're going to refer you that million dollar listing that. You just never know.

Exactly. That's, yeah. And if you say no to them, then you definitely know you're not getting it. 100% not. So like, listen, it just, it just varies for every person, right? because if you got a good business going where, you know, you're making a lot of money focusing on, let's say, FISBOS or open houses or expires, whatever you want to go, door knocking, mailers, you know, whatever it is you're doing,

then that's cool, right? If you're making half a mill, 250 grand off of that, just stick to doing that because you figured it out and you got a good thing going. But if you're not, because I don't know if you guys know this, but I think there was a stat that I just saw that we lost like 60,000 agents in the past, like few months. Yeah. I was like, whoa, that's a lot.

So I did some further research. And I think there's a NAR says there's a 75% failure rate in year number one. So that means, let's say 100,000 agents get their license. That means 75,000 of them are going to go under, you know, like losing, you know, going to give up real estate within the first year of then getting a license. And over the long term, there's actually a 90% failure rate is from my research. So I find that to be very strange because like real estate in my mind is not that difficult. Like I think that, you know, realtors are kind of just doing the wrong things. And I think that's why we have such a high failure rate.

Like even if you're not working with renters, which I personally think every, every agent should start off working rental deals regardless, like no matter. Unless you cannot do them in your state. Like I think I've gone through all 50. Oh, go ahead. Um, that's kind of like, uh, so I work both San Angelo, Texas and Dallas, Texas. Dallas is like, whoa, you know, a very big market. San Angelo is about 125,000 people tops. Wow. Um, and we don't get paid on rentals here. So I've never worked. I've never done. I've not done one single rental deal. Um, not because I didn't want to. I just, we don't get paid on them here even. Did you say Dallas, Texas? In Dallas, we do. But in San Angeles. well, we don't.

Exactly. So Dallas. And Dallas is market for me. So that's, I, yeah. Well, I'll tell you, go into Dallas and I don't know if you want, I mean, you're an I kind of agent. So you probably already have your systems down for, you know, whatever niche that you choose or chose.

But for Dallas, you guys can make the same half a month's rent commission as we can make. And your rentals, I think, for a three bed is right around like $2,800 or so. No, I'm definitely open to it. So yeah, you can make a killing in Dallas, in particular doing it. So and then then if you charge that transaction fee on top of that, boom, you just upped it from that, let's say, 1400 average to 1700. Then you're going to get the friends and family referrals. Then you're going to convert your renters into buyers.

Like it's just a cascading effect. Like I literally created a 10 year plan, you know, based off of rentals. Like like, like after my first year of doing this, I was like, all right. Like I saw my good results, made my 80. close my 50 deals. And I was like, you know what? Like I started to see the light at the end of the tunnel where if I kept this up, like kept the momentum going and which I explained before I did in year two and three.

And I did last year two, I can actually create like a whole entire buyer pipeline and a seller pipeline all stemming from rentals. So it's more of like a 10 year plan obviously because, you know, the first three, four years or so you're going to be. working like strictly renters right. Like I said, I do five to 10 purchases per year as well, but I don't know marketing for them. So just focusing on renters, I still will do, you know, anywhere from $50,000 to $250,000 a year commission just from buyers. So then after year like four, you know, you're going to start getting a lot of your renters

converting over like saying, I don't want to rent anymore. I want to buy. And that's literally happening to me now. we're only 15 days into the year. And I can't even tell you. I think I've had more people reach out to me now than in the past like six months. Because the market's starting to soften a little bit. So all of my hard work, you know, for the past few years is starting to finally pay off.

I don't want to say finally pay off because I've made a lot of money. I've made. Yeah, but like some of the long. Yeah. Exactly. But like, let's say, let's say I, you know, let's say. What is it they say you're so in your wheat? you sew or you're reekind the weed you so.

You know what I'm trying to say? I don't know. I don't know anything. It's something and it grows and now you're reeking the benefit. Reefing what you sew. It's a hundred percent true because like if you do, like if you plant a seed in the ground a couple years ago and you keep watering that plant every single day, you give it enough sunshine, give it enough attention.

Eventually it's going to turn into a big tree. And I like to call it a money tree. in real estate because it's literally an effect where, you know, that one person is not only going to be that one rental deal that you've got and not even just that one buyer and then not even just that one seller because eventually, right, what do they do when they buy a house? They sell the house, right? So eventually if you keep watering that plant, you know, they're going to be like, all right, you know, you just gave me water for seven years.

Let me sell my house with you. So that's one thing. But then along the way, you're going to be always reminding them that. You still exist. You're still doing real estate with like an email, like a weekly email that you send out. And then they're going to be referring you to all their friends and family. So you're going to get multiple deals off of one client. I have clients like literally where I do a rental deal.

We click. We really get along really well. And they have set me dozens of referrals at this point. Over the years, I've gotten dozens of deals from one renter lead that I happen to call and or answer the phone for, you know, because I get warm leads coming in, which I can talk about in a little bit. And he sends me people every single month. So like, I don't know. I just like me personally, that's why I think real estate agents are just, I think they're taught wrong in the beginning because I don't remember, do you guys remember ever hearing anything about doing rental

deals when you, when you went to like class for this or school for this? No. No. No. No. We also don't hear about like a lead generation or anything either. It's pretty crazy. It's non-existent. Like it's really crazy. So that's why I'm trying to like, you know, I literally made it my mission in 2003. Last year I was like, all right.

Like, yes, I can, you know, grind myself into the dirt again and again and again and again every single year. And I can keep doing half a mill, $750, a million. You know, I keep going up and up as I scale. But is that really? what I want to do forever. I don't know. I figured out something, you know, like really interesting because like you said before, like it's a niche that nobody has ever really done before. So I started teaching other agents how to do it. You know, I was like, all right, if I can do this, let me see

if I can teach other agents. And I did. I created a team. I had a bunch of agents doing really well, you know, like for me as I was kind of like, you know, I had phases where I went with the agents and every single month we're doing good. They were learning. It was working for them so then i started making my youtube videos and i got on youtube and everybody you know follow me it's just andy coleman on youtube um so i i come up you know multiple yeah yeah i come with multiple videos for you guys so um i started having agents reach out to me and they were like i saw your youtube video i saw your strategy that you were telling us about i tried it and i started getting leads coming in i started closing deals and they were like this worked they're like why have i not heard about this before

I was like, I don't know. I'm like, your guess is as good as mine. Like, I don't know. Um, because I had kept this a secret for years. Like I literally for years when I was doing this,

I did not tell anybody because I was like, oh, I don't want any competition. Like I got it, you know, like, I didn't want competition. Um,

so I kept it a secret. But I was like, you know what? That's like, that's not nice. That's not right to do. Like if I find something, right.

Like, I was like, I didn't, I didn't sit well with me that I was keeping something that was working so well a secret. So I was like, all right, let me just throw some videos out there. Let me try to help some agents.

And they started working for them. So they started coming to me and was like, Andy, you know, we realize there's only so much you can put in like a 10 minute YouTube video. Do you have anything like more? Like a program. And I was like, I was like, no, I was like, no, I'm like, no, I'm just giving. You're like, I know, I don't. I'm going to.

I was like, I was like, it's like, well, I mean, what do you? What do you want? Like, they were like, well, you know, can you hop on a call for an hour? And I was like, all right, you know, I'm like, sure. because, you know, I'm like, I make, let's say, whatever, 500 an hour or whatever. I'm like, then it's worth my time to actually hop on a call and like really in-depth teach you, like one-on-one. So I started doing those for multiple agents that would just reach out to me. And I started working for them.

They would come back to me like a month later or two weeks later. And they're like, oh, my God, we've closed five deals. We closed 10 deals. We closed 15 deals. We made 10,000, 15,000 in our first 30 days doing this. And I was like, wow. I'm like, so it doesn't just work for me. It doesn't just work in South Florida.

it works in a lot of other places really well. So I was like, all right, maybe I'll just create a program, you know, where because doing one-on-one is like it's exhausting, you know, like having to do multiple every single day. Yeah, it just gets really tiring. Yeah. Yeah. So like I couldn't reach. I couldn't help enough agents doing one-on-ones.

So I was like, all right, let me create a program. And it took me months, literally like months and months and months and months and months of worked. And I got fortunate. My girlfriend is like a master of like marketing and business. like teaching other businesses how to go on social media and, uh, you know, like, helping that way. So she helped me create like a program. So I did.

It's called Rich with Rentals because I literally got rich off of rentals. Um, so I just, I call it rental rentals. Um, so if you guys want to check it out, it's just rich with rentals. com.

Um, just check it out, you know, book a call with me. You know, if anybody wants to book a call, I, I basically do little discovery calls where if you go through my whole site and

still have questions, call me, you know, schedule a call with me, reach out to me, and I'd be more than happy to find out if it's a good fit because, you know, I don't want agents to sign up. Truly, truly, I do not want agents to sign up unless it's beneficial for them, right? Like, I'm not here to just be like, sign up to my program, sign up my program. No, no, no, no. I literally want to help agents. I want to make sure this is going to work for you. It's going to be a good fit for you. Like you're going to dedicate yourself to it.

And then I would be more than happy to help out because the whole goal is to change. that failure rate like get these average commissions off like i think agents on average the ones that do succeed only make like 50 000 in a year which is tough i mean for the amount of work a lot of a lot of right that's tough like like what is that like 2000 a month no maybe like three thousand four thousand a month right that's like four thousand dollars per month right you should be making that in a couple days you know like if you're doing real estate right like the top producers top earners they're going to make you know 1500 bucks 2,000 bucks every single day like as long as you do the right things because we're all putting in well I wouldn't say we're all

putting in the same amount of time but as long as you put in your time and your effort you're if you're not making the money that you want that means you're doing something wrong because if other agents like let's say I'm sure you guys have heard of Ryan Sartan right the big time agent yes we guys heard him right yeah right yeah I'm actually been in his pro um in his pro program one of my mentors yeah so it's see amazing because he'd make he's making millions of dollars every single year like millions and millions so he's putting in the same amount of time as every other agent out there that's trying that's trying there's some agents like in my first year I was only putting it five hours a day so no I wasn't going to become a millionaire in year one I really had to

put in my time and effort but as long as you're putting in the time if you're if you're not making money you're doing the wrong things like you should be making money you should be closing deals Like it shouldn't take, I think the average stat is nine months for a new agent to close their first deal. What? Like nine months. What do you how are you surviving for nine months? What do you do it for that for nine months? Like who's paying your bills?

Let me ask you this on that note. Like how did you? So obviously it sounds like a lot of this snowballed with referrals, but what were you doing initially to get your first couple of rental leads? because I think that's what agents struggle with is like I mean for me like I came from a sales background. I knew how to lead generate but I think that's what agents struggle with even rentals or buy herself just in general. Yeah. I should have probably mentioned this a long time ago. So yeah, my actual strategy. Listen, first of all, first of all, you hit the nail on the head there because you just said the one thing that basically is the determining factor if you're going to make money in

real estate, which is lead generation. That is literally, like if you think of a pyramid and you've got the base of a pyramid, the base of a pyramid is thick, it's strong. It's bigger than the top of the pyramid, right? The top of the pyramid is the finish line. That's your commission check. And the bottom of the pyramid, that is your base. And your base is the lead generation. It's always going to be lead generation no matter what business you're in, especially real estate. You have to get leads coming in, people have to know you exist and want to help them. And that's, that's leads. That's literally leads. So as long as you're getting a lot of leads coming in every single day, then you can have a successful real estate business because it's all about the numbers.

Like you just said before that you were in a sales business. In your last sales business, if you didn't have leads coming in, did you make sales? No. No. No. So why would it be any different for real estate agents, right? Like it's not. Like it's literally, the most important thing by far you can do. And it's the one thing that you should be doing every single day without question no matter what. So before I jump into, I'll tell you my strategy in a second. But before I jump into that, I had one of my, my, my girlfriend's sister, she's a real estate

agent in a different state. And she used to do, you know, maybe 150,000 a year, something like that, right, in commission. I was like, that's pretty good, right? And then she complained to me last year. She was like, Andy, she's like, I didn't have a good year. I'm only making like 60 grand or 70 grand, whatever it was, right, that year. And she's like, I'm going down in my business. So I sat there.

I talked to her and I kind of dissected what she was doing. And I came to the conclusion that for whatever reason, like maybe she forgot what got her there. She stopped doing lead generation every single day. She would get leads coming in at the beginning of the month. And she would get to all the leads, respond to them for maybe like a few days, maybe a week. And then she would start setting up all her showings, start putting the offers in and start closing the deals, but she would stop doing lead generation. For those other like three weeks of the month, she would completely stop until she got all

those deals under contract. Once she got all those deals under contract, she would start doing lead generation again that very next month. So that means that she was only putting in 20% or 25% of her time in lead generation every single year or month, whatever you want to call it. And that's why she had a bad year. I told her this and I was like, well, why did you stop doing lead generation every day? She was like, oh, well, I have my clients.

I have enough work to do. I'm like, but you're not going to scale that way. You see how you're going down in business right now? Because the market obviously turned in 2000. If you're working with buyers and sellers in 2020, you were in for a rough year. Unless you had like a massive, massive pipeline, like a Ryan Sourhan, you know, I'm sure he did fine. But, you know, for other normal ages, it was a tough year. So she did not get to all of her leads every day.

And she struggled because of it. So she changed doing that. She started getting to her leads. And boom, just like that, her income started going back up again. And she was like, I can't even believe how I forgot to get to my leads every day. Like it was something that got her to, you know, got her to the, there's like a saying like got her to the game or whatever, you know, and you forgot what you did to get you to the game, right? Whatever it is.

Like it's a baseball quote. We all forget it. We're forgetting our quotes here today. But it really works lead generation. So the way I personally did it is I took listings on the MLS, right? And there's a couple different strategies to do this. But I took listings from the MLS and I got permission from the listing brokers, right, or the listing agents.

And in my MLS, we have something called any broker advertise and it'll either say, yes, you can advertise it or no, you can't advertise it. If it says no, you can't advertise it or you have to reach out to the agent and ask for permission. But if it says yes, you know, you're allowed to advertise it. Or you can just, you know, call them, email them, text them, whatever you want to do to to the listing is, be like, hey, I know you have a rental list. listing, you know, it's been on the market for 30 days or whatever it is or been on the market

for 10 days or five days or in one day. Can I help you out and try to get you a tenant? Like bring a tenant to you by putting this up on Facebook Marketplace, on Craigslist, whatever, right? And if the agent says yes or, you know, gives you permission to advertise a property, you can then take it and throw it up on your social media, like Facebook Marketplace, like whatever, right? And then you can try to get a tenant for that listing. So then you get, you know, tenants reach out to you like, hey, is this property. Oops.

Hey, is this property available? And they're going to, you know, you're going to say, yes, it's available. Do you want to set up a showing?

Like, you know, little things like that. And then, you know, you can even do things like, um, I'll meet you at the property. And then if you want to see a couple other places,

just in case you don't like it, you know, or in case the owner doesn't accept you. I can set you up on the MLS to give you some other options. Like you can do things like that as a just in cases of backup, you know, because like during the pandemic, uh,

it got very competitive where there was like 20, 30, 40, a property. So it got very competitive. So like the chances of them actually getting that one property was like pretty slim. So I mean, yeah, that's that's basically it. Right. So you'll get leads coming in. You'll go and do the showings, you know, for those properties. And that's it. And then you can, like I said before, you can, I'm obviously like really, really simplifying this because when I teach this now, I have like a five hour in depth program with like all the details. Like I said before,

like in my first year doing this, I didn't do that well. You know, it took me a couple of couple years to really master this, get this down, figure out what listings to actually post, how to talk to all the leads, how to do the showings, how to put the offers in, how to work with like bad credit, low credit, you know, eviction, section eight felonies, like how to work with all of that. Like I had to learn all of that, like negotiating the listing agents, like doing volume, like organizing everything to where I can do 30 years and a month. And now having a team too. Yeah. And then now having a team, which helps out a lot to where I can do things like this, make YouTube videos and help other agents because I have a team.

And then my team is doing very, very well. You know, they're making six figures every single year. You know, so they're happy. I'm happy. I'm helping agents. Like it comes like, giving you a platform to grow and scale yourself. So exactly. Exactly.

So like that's not even like when I got into real estate, I was like, all right, am I going to do real estate like forever? Like am I just going to do transactions forever? And no, you don't have to. Like I took a certain path where now I'm teaching agents. I have a team of agents. Like I make YouTube content and videos. Like I work with like brands and everything.

Like there's a lot of different things that I do today that I never would have even dreamed of doing when I got in a real estate. So like there's other things too. Like if you don't want to go down that path, you can become an investor. You can start like buying properties. You can start, you know, doing long term holds where you get equity in the house from the tenants that you have in

there and then eventually sell the homes. You could do flips where you're going to buy a house, you know, and flip it real fast with the real estate knowledge and the connections that you made to get pocket listings off markets. Like there's so many different things. You could recruit agents, you know what I mean? And build like a massive team. Like, I mean, guys, there's like so much you can do.

Like you don't have to just do real estate deals forever as an agent. Like, I mean, look at Ryan Surn. Like he's doing other stuff. Like, like, like Ricky Caruth. Like, there's guy, like there's people out there. that transitioned into other things. So that's why I really fell in love with real estate because you don't have to do the same thing all the time.

Like you can do a certain amount of work for, let's say, the first few years. I'm a very, very, very big believer in like working really, really hard for the first few years, you know, grinding. And I've heard this from all the big entrepreneurs, like the Jeff Bezos. Like, did you know that Jeff Bezos lost money every single year for 10 years? Did you guys know that? No, I did that. No.

I could not, like, like, imagine the perseverance and the resilience to be able to sit there year over year because he believed in himself. He knew that he was on to something. That's everybody knows. Jeff Bezos owns Amazon. Yeah. The best company in the world probably. I love Amazon and get everything off Amazon.

And he was losing money for 10 years, you know, before he actually became profitable. I mean, he, but that's what I'm saying. Like, like, I don't want anybody as a real estate agent to lose money. There's no reason why you should lose money. I'm just saying, like, you should be putting in a lot of your effort in those first years grinding really, really hard until you build something big enough and get the momentum, right? And then once you get the momentum, you can start taking, like, you can hire people. Like, you can do things like that, right?

So, yeah, I really feel like, you know, a big part of my success was, you know, trial and error, you know, when I was like early on in my career and then just putting in a lot more time and effort and then just staying consistent, you know, like consistency is the biggest key, like lead generation every single day, like consistent, like never stopping, never taking a day off, like really just grinding. And then now, like I still do, believe it or not, like I'm four years in now and I still grind every day because I love what I do. There's a bigger picture.

Yeah. There's a bigger picture. Like, and then now I'm helping, like I was helping families before like, I got. I said before in the beginning, like I helped the family get in to, you know, a house on Christmas Eve that couldn't get into a place and they were so happy. Like, that was cool. And I love that. And now I can do it for agents where agents are coming up to me.

And they're like, we're about to quit real estate because we can't pay our electricity bill this month. And we're not making money as a realtor. So I'm like, well, did you try this? And they're like, no, we never heard of this. And then they start making money. They could pay their bills. They could buy their kids presents at Christmas and buy their wife a nice, you know, Valentine's Day present. Like, I'm like, okay, that's a good feeling.

too. So, um, yeah, word of mouth. They'll mention your name. Hey, this guy helped me get to where I'm at. And that's going to help you sell more of your platform stuff. Yeah. Absolutely. Exactly. And it works the same way for realtors too. Word of mouth, you know, for families you helped that then they're going to tell other family friends. And then like they help me this and they help me that. Like, I mean, it's just like there's a whole world of like leads out there. And obviously you don't have to work with renters if you don't want to. Like you can do a whole bunch of what the lead generation strategies. Like I feel like the one thing I would want agents to take away from, you know, this podcast is that it's not

just the rentals that made me super successful. Like, yes, that was a big factor of it because it's the most overlooked or overlooked strategy and niche in real estate by far. And it's not so that was big. But it's also the other things that I did on top of that. Like I can give an agent my exact blueprint. I can even guide them along every single day and like have them shadow me. And they can still not do well if they don't put in the time and the effort.

Right. It's like they're not consistent. Right. If they if they work for a day and take a day off or like right. Like you have to have those features and you have to have that motivation inside of you to become successful. No matter what blueprint you have. Like Ryan Sartan can give you his blueprint of how he became successful. But if you don't put in the eight to 12.

to 16 hours every single day doing it, you're not going to be successful. You might make enough to make a living, but then you're going to sit there wondering, like, well, why am I not making a million dollars a year, half a million a year, a hundred thousand a year? It's because you're not putting in the time and the effort. Like that's a right. Like, you know, have you guys experienced that in your careers? Yep.

That's exactly what I say. It's all about the consistency. Yes. All about the consistency. Yep. 100%. 100%. So for you guys, like how long have you.

You've been and I was just, I don't even know how long I was just talking for. How long have you guys, you know, been doing real estate for? I'm going on nine years, nine years, nine and a half years. So I'm on fourth year. Fourth year. So you're, you're like me as well. And you're iconic too. So what are you doing?

Are you iconing as well or are both of you iconing? I have not yet, but I have a feeling that's going to happen this year. My year's kicking off very strong. Yeah. Because, Hallie, I know that you icon, you know, a couple times. I know why I didn't. Oh, yeah. Yeah, I was like, I know why I did a lesson for everybody out there.

I spent more time focusing on people on my team that weren't willing to put in the time and energy what you were talking about. And as soon as I got back into action, taking care of my leads and taking care of my pipeline, things have turned around. And I'm starting to year off at six million. So, yeah. Yeah. And then for me, it's been consistency with social media, with Facebook groups. So I just, I've kind of found my niche and how I lead generate and I've set up systems for it like we've talked about. So yeah. And then just grow from there, just numbers. I'm curious even too, you know, about iconing through your social media because I've talked to a lot of agents that, you know, do really well doing social media.

Like I'm on social media for a different reason. And like I'm trying to help agents, not families, but it sounds like you're trying to help families on social media. So talk me through. How does that work? Yeah. So I got two different platforms now. So I was, I guess when I first got started, it was, it was just like, Hallie, I had my own

personal Instagram that was just like, just personal, like not really any real estate stuff. And then I had a real estate Instagram. And I eventually, um, that. I guess I joined EXP and knew I wanted to build a team like you. So now I've made my personal more about agent stuff, a little bit more now incorporating some Dallas stuff too. But then I made my real estate Instagram more of the team Instagram. And it's just like making little funnels with it, basically.

And then, you know, of course there's branding with it too. But yeah, just funnels at this point. And then I do a lot of stuff with Facebook groups, which is. again, is just consistency in posting and having funnels and systems for it. So what I'm hearing basically is you're going to take, I guess, like, are you, is it like listings that you do or is it just like listings on the MLS that you'll go do a showing for, take a video of that showing and then put it up in a Facebook group or like Instagram? Yeah, that's a lot of what I did for sure, for sure.

Now I'm just doing listings at this point and then I have my team help me out with buyers. So I might go to a system of where I have one dedicated showing agent, but that's, you know, down the line. Right now it's spreading the wealth between my team I have here in San Angelo and then hoping to build that out in Dallas as well. Dallas. Yeah, because it sounds like, you're going to. Yes. Oh, yes. I am.

No hoping. Yeah. Oh, yeah. Because I mean, listen, because like it sounds like you basically did a little bit of like, you know, my strategy. because I had to get permission to post on Facebook marketplace, like from the agent. So you asked the agent, hey agent, can I go do a showing for your property? Can I take a video? Can I put it up on my social media, right?

Yeah. And then I leverage marketplace as well. Yeah. Yeah. Like it works. Like the whole strategy works. But, you know, unlike for Dallas, you know, like you can do it or you can have your agents do it, you know, where they can do it for rentals too.

And then they can stack those deals up very, very fast. So instead of doing like the one thing that I honestly like I said at the beginning that I like doing rentals more than purchases because like I don't know if you guys have have you ever lost. I mean, I'm sure you have nine years and four years. Have you lost a deal before? Mm-hmm. Have you lost what? It broke up for me. A deal. A deal. Have you lost like a deal? Yeah. Yeah. We all have.

How bad does that hurt when you lose like a $10,000 commission? Yeah. It sucks. It hurts. I mean, you just have to keep going. But yeah, if we could have a strategy to, you know, not have that. Like that not happen. That'd be fabulous. Yeah. I honestly, I haven't figured that part out yet of like not losing deals. You know, I just figured out that minimizing my losses. So like if we know we're all going to like I just had a listing. And after like two or three months of work, I put in dozens of hours of time and effort. into this listing. I lost it and, you know, we had to cancel the entire thing. I got paid zero. And it's just like, oh my God, I just put in so much time and effort. Like it really, you know, it's it hurts and you just wasted so much time. So that's why in particular, I said before, I still, you know, to this day, like like I do, I do not go out there and try to get, you know,

listings. I don't try to get buyers. Like I'll do them if I have them. But I just for me, like if I lose a rental deal, it doesn't. know, it doesn't kill me because I just lost a $2,000 check, you know, but I have another 25, you know, for that month, you know, where it's like, all right, I didn't, because if you only have that one, you know, listing or that one buyer where you're under contract for that month and you're counting on that 10 or $15,000 check and then you lose it, you're kind of screwed for that month. Like, it's, it's, it's, it's really like, that's in the very beginning of my career, like I got lucky I got a, um, uh, renter that I converted over to a buyer.

like almost right away and like the first couple months of my career. And then I lost that deal. And I wasn't really making much in the beginning. And that's what like really, really propelled me. Like a few things, you know, propelled me. But that really got me on the path of doing rentals because once I lose a rental deal, it's like, okay, you know, that sucked in everything, whatever. But at least I'm still going to make money for that month.

Yeah. Yeah. Does that make sense? Yep. It does. It does. Yeah. I just love all these.

there's so many different benefits that I didn't even think about with rentals. And I'm so glad we were able to have you on to talk about it. Thank you. We're coming up on our hour. It sounds like we need to do another podcast, though. Yeah. I think we have a whole other episode that we could take out of this. So.

Yes. Yes. Yeah, I'm sure there's a lot. Where can everybody follow you, Andy? Or you want to plug your social? Yeah. So everybody follow me on YouTube, which is just Andy Coleman. I got lucky somehow.

I got the Andy Coleman handle on YouTube. Yeah. So I did. So just follow me on YouTube at Andy Coleman. And then Instagram, I didn't get so lucky. I'm at the Andy Coleman on Instagram. And then Facebook, I think just like Andy Coleman, EXP or something. Yeah, but guys, follow me, you know, subscribe to my YouTube channel.

I post a lot of videos. If you want further help, you know, rich with rentals. com. I do teach agents. I have an entire like coaching program. I do weekly sessions where you get like an hour every single week with me, including the whole like program like the membership area, like five, six hours of training content plus downloadables and everything. So yeah, guys, if you want that, you know, reach out to me for that, go on my site. But yeah, thank you guys so much for having me. I had a blast. Whenever you want to have me back on again. Yeah. Absolutely. That was, That was fun.

Yeah. I really enjoyed it. Thank you. I love it. All right, bye, guys. Thank you. Don't forget to subscribe to our YouTube pages.

I'm at Hallie B. McCrory on Facebook. Oh, there, there goes, little bubbles. And Hallie Beeler McCrory on Facebook. Casey at CB Steyers on Facebook. And Casey Steyers on Facebook. Awesome. Thank you guys for listening in.

And we will see you guys next week. Thanks, Andy. everybody have a great week Bye Bye