KGCI: Real Estate on Air - Shift From Transactional Overwhelm to Focused Leverage and High Value Commissions

Episode Date: August 17, 2026

Summary:In this live coaching session, Coach Randy Bird consults with experienced real estate agent Eric to address the severe time constraints and low profitability that can plague high-volu...me agents. Bird explains that closing twenty deals a year can still leave an agent broke if they are constantly chasing low-priced lots or over-servicing high-maintenance buyers. Listeners will learn how to transition into a highly regimented schedule by building automated leverage, using AI platforms for deep localized business modeling, and systematically top-grading their databases to focus strictly on mid-tier geographical listings.

Transcript
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Starting point is 00:00:04 It was like the AI thing. So welcome everybody. It's Coach Randy Bird here for the Tuesday coaching call every single Tuesday, except next week. I'm gone. I'm teaching somewhere next week. But usually it's about 48 times a year. I'm here every single week for 30 minutes of fire.
Starting point is 00:00:20 We do coaching nuggets, coaching takeaways, coaching calls. You'll notice we do some live coaching calls with people like we're doing today. So thank you for being here. So he doesn't know I'm doing this today, but Sean, it's your coaching call today. I'm just kidding. I just wanted to see. his face. I wanted to see his face. Listen, thank you all for being here. My name's Coach Randy Bird. Again, we're here every single week, Randy Bird. Live. If you're here, you know that. If you're
Starting point is 00:00:45 not here, listen to it in the recording and go to the right place. But I've got a special guest today. Eric and I connected this week. We had a little mini-miny little kind of coaching call, talked about business a little bit, connected. And he was like, dude, I'd love to do a call with you. and then I asked, I said, do you mind if we do it live? Do you mind if we record it because it will help others, right? If I do one-on-one with him, that's not a duplicatable event and not a duplicatable experience where it can help other people. So he said yes. I appreciate you, Eric, for that, because it is, it can be vulnerable. I wouldn't want my ass on a live call with my coach and people listening to it. There's no way. But he's like, I'm cool with it, man. I accept the challenge.
Starting point is 00:01:29 And so we're going to do that today. I'm going to be nice to you. I'm going to be courteous. I'm going to give you a legitimate 30-minute, you know, needs a 25-minute, needs assessment call, talking about your business. And I don't know enough to have any preconceived notions of where I'm going with this, right? We're going to do it live. We're going to talk about what's important to you, where you want to go,
Starting point is 00:01:53 and I'm going to give you some real-world advice and what I think you should be doing from a coach's perspective. And this is the thing that I would do for a prospective client that wanted to hire me for a year and pay me $30,000. So this is an $800 coaching call. My coaching is somewhere between, you know, $500 and $800 an hour. And so hopefully you all find value in it.
Starting point is 00:02:15 And I'm looking forward to it. So with no further ado, welcome Eric Katz to the call. Eric, how are you doing, brother? Oh, as I always say, I joke, I say living the dream, that people who are in the real estate business know what that means. My clients feel like I'm excited, you know, we're sales. We have to be excited and enthusiastic, but nobody really understands the challenges of our business unless you're really living it and not just desiring the fantasy land of being
Starting point is 00:02:42 a real estate agent. That's the truth right there. You know, and so listen, to make the most of it, I'm going to get right in. Like I told Randy, you know, I'm not new at this. I am newer at this, you know, but I live in the woods. I live in the mountains. I sell a lot of cheap properties. and I do a lot of volume. That doesn't mean I make a lot of money. That being said, I have my challenges. And I've been a student, I'm a huge knowledge hound, so I love learning.
Starting point is 00:03:12 I love knowledge. But as my career has progressed, the knowledge has frustrated me because, one, it doesn't feel applicable, it doesn't feel real, it feels BS. And as I told Randy, I'm be brutally honest, and he's like that high-end, energy, no bullshit. I have an allergic reaction to bullshit. I'm a truth teller with my clients. I'm
Starting point is 00:03:35 honest, hardworking integrity. That's what they like. I'm not a salesman. I'm a solutions guy, but I do have the gift of the gap. The thing is, I think nothing frustrates me more. I don't watch these shows, but I absolutely have a complete disdain for this selling sunset, selling Manhattan, that what this preconceived notion is of real estate sales, open three doors and collect a big commission. It doesn't work like that. At least I haven't found it. And, you know, there's so much more for caring for your clients and that.
Starting point is 00:04:09 And I thought a little bit about what is my biggest frustration? And where have I not found the answers? And, you know, I feel like the group and when I we call now nation has had really good information for agents getting started. There's a lot of them like, well, you started, I'm excited. What do I do? Right? And they're like, pick up the phone. Like, do your thing, right? And so, like, I feel like that information is good, but it is not helpful or relevant to me in my career right now. One of my biggest challenges is time management, but I understand time blocking. I understand discipline. I understand a lot of these things. Like, I understand the metrics, yet I struggle with some of it, right?
Starting point is 00:04:52 in all fairness with it because reality comes in. Like, oh, I'm just going to call from this time to this time and make my leads, but then you have a deal in play, and somebody's calling on that. And I'm sorry, I feel like if you say, I'm sorry, I can't take your call right now because I'm in my prospecting time and you're neglecting a client where there's a deal is in play. I'm sorry, you're not servicing my client, my opinion. So I don't know.
Starting point is 00:05:18 I'm struggling. And so I want to unload a bunch of things. and then I want to hear what, you know, Mr. $800 an hour has to say about that. And if he can give me some really good value for those ideas, you know, I did about 100 transactions over five years. And again, I sell everything from $25,000, lots of land. And I do a complicated commercial, sole apartment building, stuff like that. I don't need scripts. I never have.
Starting point is 00:05:42 I can talk to anybody. It's not my problem, not connecting. My problem is I have to be focused. And when you start getting a few deals going and you're in the middle of things and people are blowing up. And as an example, I got away a little bit this weekend. And I put on a hot property and I've been working on this for two months. And then boom, we get action on it because we priced it right. I did the marketing.
Starting point is 00:06:07 I could tell you all of it. And it's incredible in this market that I have multiple bids within a few days. That being said, my phone is blowing up at a hot springs when I am not able to be using. the phone and I have agents threatening me well we're going to walk we're going to do this it's an emergency call me I've developed a thick skin to that a little bit but it's still gut wrenching and some of it you know and um you know I just don't have enough time in the day that is my biggest frustration I I you know I could come prepared and excited and after 10 or 12 I could be on the phone for 10 or 12 hours and I'm extremely giving to my clients and some to a fault you know
Starting point is 00:06:49 I'll be on a phone with an hour, and I've had other people, don't, don't, you know, learn how to cut it down. And I'm not, I'm not a transactional realtor. I'm a relational realtor. Like, I can't be somebody I'm not. I can't pretend to care and then not really care. And that puts me at a disadvantage. It makes me frustrated at the ecosystem because I see these high number agents.
Starting point is 00:07:10 It turns my stomach because I'm working my ass off. I'm not making what I'd like to make. And the agents who only care about their commission get up on. stage and we're killing it and I'm trying to hold back to vomit in my mouth because it's angering me because I work harder than they do. I give better value to my clients and they secretly people have told me hey, you're doing better but I should be remunerated for my better service but I'm not. But I'm not a bullshit or I'm not a fake. So I give and I give and I give but I'm exhausted at the end of the day. I'm not hitting the numbers I want. I struggle with
Starting point is 00:07:44 time management. I understand all these tools and I feel stuck in a rut. So I don't know what else to say. I mean, like I said, I'm doing business. But again, it's a tough market. I'm working four times as hard for every deal. You know, if I do one showing, it can take me four hours. I have to drive an hour here, an hour there. I'm focused on the client.
Starting point is 00:08:06 I don't shortchange my clients. And I literally have hundreds of things on my to-do list and I can't keep up. And so that thing that goes over and over every day wears me down to the point that I don't like the business. Well, dude, first of all, thank you for being willing to be here and being, you know, straight up. Like, I like your style. I don't think you're going to like everything I have to say. I heard a lot of good things in there. And I heard some challenges in there that I'm going to hopefully be able to turn a corner and help you with.
Starting point is 00:08:37 It's going to come down to a little bit of trust. But, man, I love, I'm going to just tell you the things I love about you. your your passion for your clients is absolutely 100%. It's on your sleeve. It's on your heart. That's important. You have a frustration with the business that is because of that, that transition between how do you do the best amount of care?
Starting point is 00:09:00 And then also look at how do I feed my family and get all this, the, you know, be equitably, you know, rewarded for your hard work. And then how do you balance that all? And I think what you're talking about is probably one of the most real coaching. opening conversations I've ever had. Because you're not, you're not in a place of being negative Nancy. You're not like a negative person. You're just frustrated against the ceilings that created in your business because of real estate, period. Right. So background to you, Eric, you're in my organization with the XP, you know, you're not close to me in terms of that level
Starting point is 00:09:41 four, five, six, seven. It doesn't matter to me, but you're one of my people, right? You're one of my people, and I'd pour into you regardless. But when we started having this conversation, I go, it would be really valuable for you and I to spend some time together. And again, I want to say thank you for allowing me to do it in this venue. This is going to help a lot of people, I promise you. There's so many people out there that share frustrations and stuff that you have. And then you have some unique things, too, that I'm going to point out that are for you.
Starting point is 00:10:07 Okay. So, number one, the, let's talk about your problems. you need to be focused more. Okay, that's a you thing. That's not a market thing. That's a decision that you can work through self-development and personal growth to focus on that, to be more focused. That is a tactic and a structure that you can absolutely embrace. And there's a lot of tools available for you that.
Starting point is 00:10:32 And I'm going to give you some. The next thing you said was emergency. You feel like agents need you and that you have to be there all the time. And that is, that's kind of a crutch of the real estate business, right? Right. And a matter of fact, when I have agents that are out of balance, it's almost always because they have too many buyers and not enough sellers in their business model. Because the buyers will drive you crazy.
Starting point is 00:10:58 It's a beautiful thing having, being able to get somebody to their first house or do something that somebody else couldn't do. But it's a fine line between the time exchange that happens in that and happening, working with sellers and what that provides, right? Like in my own business, when I was growing through my business, I had all buyers in the beginning, which is very customary for people. And Eric, I might talk a little bit in third party with you because I'm talking to people that might be listening as well. But in the beginning part of your career, it's very natural to have more buyers than you do sellers. And then that's the
Starting point is 00:11:32 hardest part of your time in your business. And then as your business progresses and matures, you start getting more sellers and you can topgrade your business, maybe even leveraging out the buyers, right? But I can give you 10 buyers and drown you. Or you can have 20 sellers and be sitting by the pool answering questions, right? So that doesn't mean you don't care for them. And I'm going to say this to you personally because I think you take personal responsibility for everybody, and that's a downside of yours. You don't have a personal responsibility to everybody. You can't be the best you can be without finding your niche and providing a hundred percent value service in that niche being something to everybody that might be a little takeaway that you might listen to this again
Starting point is 00:12:20 or you might get it now but i think that's going to be an important takeaway as we as we progress with this call and so i'm going to use this analogy i've used it before it might not apply to you and you might not grab onto it but let's just say you're a doctor right you were a doctor and you a doctor's office with staff and all these things, right? The one thing that you have the same as everybody else that's in business for themselves or working for somebody as you have a finite number of hours in the day and the week, right? We all have the exact same number of seconds and minutes and hours in the day. Would you agree? Absolutely. So if you have a doctor's office, right? What are your hours of a doctor's office? Just rip it off. What do you think? You're a bitching-and-nine and seven.
Starting point is 00:13:03 What's that? I don't know, nine to seven or so. Okay, nine to seven. If somebody needs to you at 8 a.m. and your hours are at 9, do you come in at 8 to serve that client, or do you have to fulfill your calendar? Definitely not. Because you're a professional, correct? That is correct. Too many agents put themselves in a position where they're not a true entrepreneur boss. They're not living an entrepreneur life that is by design, right?
Starting point is 00:13:32 The beautiful thing is this. The canvas is blank. You could say, I'm going to work from six to six. every day. I'm going to work 12 hours. That's where I love to do this for my life and my passion. And you could be available during those hours. Right. You can also say I'm going to work at 10 a.m. to 6 p.m. and that's it. And Wednesdays are off or Saturdays are off for religion or whatever it is that's your perfect schedule and then work back from that. That's obviously where I live because that puts us into the category of being a professional in our
Starting point is 00:14:02 business. Now, will the doctor answer your call at 7.30 at night if you've been a of a patient of his for 10 years, yes. But it's special. It's not expected. And it depends on the practitioner. Someone's having an emergency and you're an emergency doc. Totally agree. That's a little different. You're working in the engine or the emergency room versus having a practice, right? Whether it's general practice or specialty practice or whatever. But analogy-wise, you see where I'm going with this. No, I get the analogy. And I've heard it- Professional hours and they have professional structure. professional expectations, right? Sonia, please mute yourself if you can, please. So that's, I just want you to be there mentally for a minute to understand that that doesn't
Starting point is 00:14:47 make you bad to other agents or to clients or anybody else. I have agents, I have clients that have done 1,000 transactions in a year, two of them, one in Utah, one in Canada, and they have the most regimented schedule I've ever seen. Some would say they have to be able to do a thousand transactions, but they do prospecting three hours a day, both of them. And I'm like, here they are running a thousand transaction businesses, and they're doing three hours of locked in a room, nobody bothers them prospecting. And I was really amazed and enamored by that. And they go, I couldn't do a thousand transactions without having a lead funnel that created the business to support that. So everything else is secondary to that first three hours. And then they had like Josh Barker
Starting point is 00:15:36 in Reddy in California, he's going to do 1,000 transactions this year. And he works five days a week. He's in the office at seven. He leaves it four, not 405. He leaves at four. There's got to be a missing piece. He's got to have a team. He's got to have systems. 100%. He's got a massive team. Massive team. Massive team. Massive team. But I'm getting to that with you, Eric. You are ready for a team if you have more clients than you do have hours. I had been like that. Okay. Can I share something with you real quick?
Starting point is 00:16:08 Yes. Because I think it is a dysfunction and I also think a lot of agents, so I say this, I'm spelling it out because I think it would be helpful. I think to get to the point where you're busy enough, you have this PTSD about answering the phone because if you pick up the phone and you actually like get a lead, get a business, you return the call, you get the client. And you learn in this business, he who picks up the phone gets the business. Right.
Starting point is 00:16:31 And he who doesn't pick up the phone doesn't necessarily. get the business. And so you want to pick it up at six at night, seven at night? Well, you just, you just, people respond to that and you get business. And it, in one hand, when you're starting out with not very many clients, it's a great advantage to beat out people who are more experienced. In the other hand, you realize this as you get busy and then you feel like you have to pick up every caller.
Starting point is 00:16:53 You're going to lose clients, lose business. Correct. You're on the growth. So it's a catch-22 trap. It is. I'm going to answer that for you. Again, you might not like what I say, but this comes from. just experienced doing this for a decade. When you're at when you're at that level,
Starting point is 00:17:08 then you have the ability financially, you're either sweat equity or check equity. Right. Once you start getting to a level financially and or in your business demanding more than the hours you have, you start leveraging. The beautiful part of the world we live in now is you can have a calling service for pennies on the dollar now. The answers the call at five o'clock when you put it on, Do Not Disturb, for instance. And they, will do a great job with that preserving that client until you're available again. They can even, you can even set boundaries to say, if they say the right things, if they go, we need to buy and we're coming to town this weekend, I want a live transfer.
Starting point is 00:17:46 Right. But you're creating leverage in your real estate business. This is the one word that I want you to take away from this is leverage. Right. Real estate happens to be the most leverageable business I've ever experienced. I've owned plumbing stores. I've own kitchen bath stores. I've own construction companies.
Starting point is 00:18:02 leverage in real estate is absolutely available to you almost at every level. So I don't want to get off on a wild goose chase right now, but I want you to think of this. A line, just picture a line right in the middle of the paper. Above the line are the activities Eric has to do. Servicing buyers, servicing sellers,
Starting point is 00:18:22 negotiating contracts, negotiating repairs. Those are above the line that should be done by you. Everything else can be done by somebody else. better than you over time. Yeah. And I want to put a finite point, right? This is something that, again, real world is different than just the fairy tales.
Starting point is 00:18:42 Yep. You said to myself, what is the best thing you've done in your business like last year? And I would say it's hiring an assistant. And I did that to create the leverage. I've done through my transaction coordiners, I had not so good. Perfect. I invested in an assistant and training and I made him exceptional. And I invested a lot of time.
Starting point is 00:19:01 I actually created training material before I even hired him, how to, and all of this. And he is literally one of the best in his company. And they actually keep me as his client or I'm not his client. But anyway, but I'm telling you this because I had to tell him the other day, I said, when I'm watching you and we're working together, you produce exceptional work. When I'm just on the phone doing my thing and you're doing your work, your work is good. But when I'm not watching you, your work is really not good. And I have absolutely found that. And it's one of the biggest frustrations is there are entrepreneurs, there are doers, and then there are employees.
Starting point is 00:19:39 Okay. I appreciate that. But you're talking about other people. Let's talk about you. Why aren't you meeting? The point is that the leverage that you exist is I have struggled to find the ability to execute with people to work as independently. And even I figure I've got a great. I just want to make that point because it's easy.
Starting point is 00:19:57 accurate, you're not wrong. It's just you have to take ownership because you have to inspect what you expect. And almost every time that I hear a conversation like that means somewhere along the lines, you've gotten either your policies and procedures or your training or something is lacking to not allowing them to have an accountability that matches when you're not there. My assistant, my director of operations does the exact same thing when I'm not around as when she's around. And it's because I have an expectation that we've established, and then I inspect what I expect. Even though she's been with me years, you could ask her. To this day, I'll still say, hey, next week on Tuesday, I want to get with you. I want to go about two hours into what your
Starting point is 00:20:40 daily procedure is, and I'll find gaps. I'll find missing pieces that they're not doing, and we'll shore up that procedure, okay? But I'm just going to say that particular employee, may be the wrong employee, but give them the grace, especially if they do a great job when you're there, they may need your motivation. They may need, you know, you're pushing. They may feel the necessity to do it while you're watching them. But you can't have that in a scalable, leverageable, leverageable business. Right. So you have to go back and reestablish the ground rules, reestablish the expectation, and then hold them accountable to that through expecting what you inspect. So why don't you give me specifics in the tagline is great. How do I put that in place so I set
Starting point is 00:21:25 the right expectations and not create excessive administrative overhead and having them fill out reports and what did you do with your time? And they're like, what, what actions specifically what I do to take a good person to make them great with this? 100%. Number one, do you have a checklist that they go through or a job description that's crystal clear? It's evolved. Is how rate at one to 10, 10 being the absolute best it could be? Six or seven. Okay, that's too low. I would say the first thing you do is say, okay, and guess what? Now with AI, you can have this done in minutes. You could have this done in 30 minutes max. You just talk into it like a third party professional, right? And you could say, Claude, I want you to act as both my attorney and my guidance counselor. I have an
Starting point is 00:22:12 employee that's not living up to deserlectations. I want to develop an SOP. I want to develop a workload, whatever, right? My assistant, we have a cloud-based document that we both look at 24-7. I could add things to it and then she could add things to it. I have a training on it. I'll show you or I'll break it into more information later. But basically, we have a running flow chart through this whole list. We meet every single morning. I go through the list. I determine what's important and I put at the top and she's only going to have three things in that top at a time. And I look to give her three activities that are going to be completed on the day. That's an accountability. That's a structure. And she loves it because she can follow my orders instead of looking at this list of 20 things
Starting point is 00:22:52 trying to decide what's in my brain. Right? So then guess what? She'll text me. Hey, I'm done with the three. Okay, great. I'll jump in the list and I'll grab the next couple items or I'll say, hey, I'm out today. Use your best judgment.
Starting point is 00:23:04 Pick another one or two items that you can work on and report back tomorrow when I meet with you. I meet with her every day to go over this because it's that that important in my real estate business. Right? And then when I meet with her, I might say, hey, I need a new VA in India. that's going to do this activity, and here's the boundaries of what I need to have happen. I want you to run with the rest of it. She doesn't like that
Starting point is 00:23:30 because she's a compliant personality where I'm a visionary, right? So she needs more direction, but given her that, then she'll go do it? And do you mind if we go over a little, because I was a little late today, do you mind if we go over a little bit? No, no.
Starting point is 00:23:45 Okay, cool. I'd like to give you a little more time. I've got about another 10 minutes and I got a hard stop. but here's here's what i'm looking at man and again don't take this wrong don't take this wrong the first thing you started with with your opening um you know analogy and kind of information about your business is you're in a small area small sales price you're not salesy you're an incredible person to talk and articulate value which i see and totally get that you don't like scripts i think
Starting point is 00:24:18 that's a limiting belief scripts are perfection That means taking the best thing you said one time and being able to recreate it. Right? When you're just flying by the sea of your pants because you have a natural ability, by the way, I'm talking to me right now in the mirror because I'm that guy. I have a natural ability. But also after I get off the call, I'm like, I forgot all about saying this because it wasn't scripted into my conversation.
Starting point is 00:24:45 Right. So scripts are really valuable. But I think we're talking about just perfecting your delivery and value. And then you said, for instance, one thing I'm going to pull you on, you go, the now nation, the new team thing is just really not relevant to you. I think that's where you're wrong. You're in a small area. I happen to go in high school right in your backyard, right? I'm from Calaveras. I went to Calaveras High School. I know that whole area pretty intimately where normally that's not something that would be in my conversation. You've got some things working against you and some things working for you by being in a small town. Yeah. The things working against you, are putting yourself in a room that's bigger than this, a room that's bigger thought process. I would challenge you to get to some events with big minds, people going for big things. They're going to open your mind up to different possibilities. And it may be where you say, hey, I love helping first-time home buyers.
Starting point is 00:25:42 I'm going to stay in this price category. That's a choice of yours in your business. But it has a threshold of income and a threshold of opportunity. Would you agree? yeah yeah so if you had to increase the amount of income brought into your business which you're entitled to you you're owned that you owed this to yourself right you owe to your family to provide the most amount of income that's why we do what we do it's good to have a passion and love for it but you have a responsibility to your family in my opinion prior to your business
Starting point is 00:26:14 and so that family responsibility might say hey i need this level of income to have safety, security, put away for the future, have an exit strategy, whatever it may be. Let's just say that number is $150,000 a year or whatever. You want to design your business backwards from that by saying this is the amount of hours that I'm willing to put 100% into my business. And this is the number of units I need to do. And this is the average sales price I need to focus on. And that becomes your business avatar, just like that doctor, right?
Starting point is 00:26:48 when he just got out of school, he didn't charge $400 a visit for facelifts or whatever it may be. He worked up to that and top graded his clients along the way. That does not mean he doesn't like that client that he did his first facelift on when he fresh out of school. As professionals, we're elevating ourselves along those lines. Now, you're allowed to go sell $25,000 mobile because you love this lady and she's been a client of yours for years. But if a new client called me with that same thing, I'd probably refer it to somebody else because unless you have no business, right? But you do. You have actually a robust business. So I think you're a little bit of a yes man because you believe, and maybe you've tied it to, Eric, that that is making you a successful
Starting point is 00:27:37 entrepreneur. Right. Now, I'm not going to psychoanalyze. It's because you got dropped on your head as a baby and whatever. That's not important here. What's important is recognizing where you are in your real estate business and where you want to go with the trajectory of a perfectly built, designed, planned business model. Does that make sense? Like tell me, you might not know the answer, but just tell me, what's a perfect number of hours to work for you a week? 40, 30. 30? Yeah, is that the true number 30? Because I don't know what you like to do, but if you want to fish, you want to do some fun things, it's not working 60 hours a week. Yeah, I know. Okay. So 30, hours. I love the number, by the way. Okay. So, and what's your perfect income if you don't mind me asking?
Starting point is 00:28:29 I picked 150. That would be nice. That was the top. Okay, 150K a year. The cool thing about real estate, it's very mathematical. No, I know. And I've done the business plans before. And I've been in the bigger rooms. I mean, that's how I'm here with EXP. I've been every conference. I did all of that. I went down to class. Why aren't you doing it now then? Because it's, because, because when you, you do it and you try and, you know, life and reality happens and you grind through things and you make things successful. You don't. And it doesn't outcome doesn't even come close.
Starting point is 00:29:03 You don't believe it. Well, it's not just the belief, you know. But it's true. If you do it and it's not working, that that's a belief, right? Your experience didn't get what you thought it should have provided. You know, here's the thing. It's like there's no million dollars. I mean, there's a couple million dollar homes, but I'm going to make a joke.
Starting point is 00:29:22 If I just said, well, I'm only going to work. with million dollar buyers. If you're in San Jose, that's a 100% accurate. Correct. But I can't do that up here. No. What's your average sales price across your region you work in? It might be $2.95 in San Andreas.
Starting point is 00:29:37 It might be $4.95 and Brett Hart. It might be, you know, what's your average sales price in your area if you'd say there is? $300,000. Okay, that's a good number. Let me do some quick math with you, okay? And do you do a normal 2.5% commission? Yes. Sometimes three.
Starting point is 00:29:55 More often three. More often three? I mean, when I'm selling, yeah. Would you say your average is 275 or two five? Just say two and a half because I do do some low. I get. Okay. So 300,000 times 2.5% commission, $7,500, correct?
Starting point is 00:30:11 Yep. And that's gross. So 75, we're going to go $150,000, divide by $7,500. That means you have to do 20 transactions at average sales price of $300. You have some more, some less, but you've got to be somewhere in that wheelhouse, right? Every $25,000 trailer you sell, you have to sell another $300,000 house to offset her 275 on the other side, you know? Yeah. So if you sell 10 of these, that means you have to sell 30 homes just to break even at neutral.
Starting point is 00:30:42 Right. No, and part of it is I am saying I'm going to turn that business away. I'm just saying mathematically, okay? No, I understand. It doesn't lie. So that means you have to sell 20 homes a year at average sales price. ASP. Okay. That becomes my battle cry. 30 hours a week, 20 homes a year, right? And then you could start breaking this down mathematically saying, okay, that's one and a half homes per month, basically.
Starting point is 00:31:09 So here's the deal. Okay, the mathematics don't lie. That's why I'm frustrated because I do sell 20 homes a year, but it's 50,000 here, maybe this, maybe that. And then you start at 150, you take this, you take the cuts, hold on, you take that. And I end up. up grossing over 100 and netting out 20 a year. And that is where I'm, and so when I go and I hear people say, oh, well, just do your numbers, do that. And I'm like, I fucking do 20 a year and I'm netting 20. I know. So, so I'm going to give you the straight answer and you're not going to like it. I'm just telling you. You're saying yes to shit. You shouldn't say yes to. Probably. No, not probably. It's a coaching call. I'm going to tell you 100% for sure.
Starting point is 00:31:54 because what happens is every time you do, it takes away the time and energy that you can devote to make sure you're working in that other envelope. And that may mean prospecting $300,000 neighborhoods. It may be setting up a geographical farm and being very purposeable about your client you're going after. It may mean upgrading your marketing material potentially. It may be marketing or maybe upgrading your circle of influence that you're typically involved with. right like i've guys guys to go i've been with the rodeo association 25 years and that's my greatest asset of clients and i go yeah but they're buying 50 000 horse things and you want that and so you might have to evolve out of that right not saying that's the case just yeah yeah
Starting point is 00:32:40 identification bro i would do this i would leave this call and i'd say okay i have clarity 150 000 a year you actually probably are like 25 deals which is cool because that's icon I'd make it 25 because the $16,000 you have to pay the company. I would go net 150. Now, gross income net. You still have cost of goods sold. You have to buy a sign. You have to put it in the help wanted ads, all that stuff.
Starting point is 00:33:05 But you do 150 gross income after your split. It means you've got to pay $166,000 of commission income to get $150, correct? If you reach icon, there's benefits and all that. But forget about all that, just mathematically. you go okay 150 i got to sell 25 homes a year that happens to be two homes a month let's just say 24 two homes per month period end a story that becomes your battle cry you can accomplish that and 30 hours a week very easily i think you need coaching i'm not trying to solicit my coaching to you i'm just saying i'll help you for free but i think you could use a coach because you need somebody that's going to
Starting point is 00:33:44 help help sorry not i keep trying trying to say hold you a accountable. It's not. Lay the path out that you're going to follow that has the experience to help you do that. You don't need somebody going, get out there and just do it. You need tactical. Like, okay, let's get a subdivision that's got a $300,000 price range. Let's rock our arms around it. You ain't got the money. We're going to start with check, sweat equity. We're going to walk door to door. We're going to get every person that subdivision to know us, start with 500 homes, increase it up to 1,000 once you get a couple transactions. Then you go to check equity. where you now have a postcard and a system that's feeding that thousand homes and you're doing nothing.
Starting point is 00:34:26 You're now leading with check equity, right? But that only comes after you've put in the sweat equity to make that work. All right? That's just one solution. Top grading your database, meaning that you're going through your database purposefully and saying, these are the clients in my price range that my business requires me to be in. and start referring out clients that don't. You can give clients away for free for 25 grand
Starting point is 00:34:55 because the commission is that, what, $1,500? Sometimes they don't want to split $1,500. No. Just say, I have one rule. They have to give me a five-star review when you're done with this. I don't want a penny. You can buy me a Starbucks card or Dutch Brothers, whatever your sweet spot is.
Starting point is 00:35:10 What I want is them to be a freaking raving fan of me because I gave them you for $0. But they are going to refer you business, right? Because everybody is my client, even if they can't afford a Schwinn, because they know somebody that knows somebody. But that doesn't mean I'm not working or I'm working with the somebody that doesn't know somebody. I'm just saying that they're going to be taken care of in my universe. That referral is a three-minute conversation, right? Even a referral fee is still a three-minute conversation.
Starting point is 00:35:41 And you can be purposeful about that. And you might have to transition, Eric, you might have to transition from like, I can't do this today because I'm scraping by doing all this stuff I'm doing. But I'm telling you, you put this action into place. And I promise you from 10 years of coaching, you'll get the things that we're talking about. And now you'll have a clear, crystal clear plan and get rid of that frustration and noise. You know, like small area, you don't understand. We have different, you know, this is horse country.
Starting point is 00:36:09 That's all horse shit. It's all horse shit. You laser focus on what you got to do. And I told you I was going to be bold with you. Okay, I know your area very well. I'm the pinball champion of that little place right there in San Andreas. Nobody's ever beat my score, at least when I was there. I know that stomping ground well.
Starting point is 00:36:27 It's a great area. But it's very country. It's very, once they love you, they love you and they'll take a bullet for you. But you've got to get into that sometimes, right? And you're not the country club, dude. You're not going to go hang out the golf course. That's not what I'm asking. I'm saying being laser focused.
Starting point is 00:36:43 Maybe put an expired campaign. into your calling where your calling expires there between 250 and 350 or something like that. It may be door-knocking neighborhoods that support that price range for you. Taking that time back from those lower price ranges and putting it into the forward-facing prospecting and development of that other price range is equitable value. It will pay for itself. Can I ask one quick question? Just on the idea of like let's say I'm being more deliberate about my business, which I hear
Starting point is 00:37:13 loud and clear, it makes total sense. Yes. So I want to get rid of lower price, but I start going expires. I feel like expires, I understand that's a good strategy to try to find business, but I feel like they require probably way more time because they're already skeptical of agents. You could be a big time waste. They're going to suck your brain. I don't disagree with you.
Starting point is 00:37:36 And I'm just saying that's one of about eight pillars you could be doing in your business. We've got to find the pillars that you like. Right. If you hate expires, you hate picking up the phone call and expires, don't force yourself to do it. There's lots of things you could do before that. Well, yeah, it's not that. I just, I feel like those certain ones that are, they're just time sucks, right? Well, for instance, open house strategy is another, another good free strategy. Expired is free, right? You might need Vulcan 7 or a CRM, but you can make, you can call eight hours a day and it doesn't cost you anything, right? And there are people that are ready to sell. They just failed the market somehow. Right? But open house strategy is another thing. You do an open house in an area that's specific to where you want to be in price point. And then what about if you door knocked 50 doors across the street and 25 down each side of your open house and made a point to meet every one of those neighbors to let them know you're having a mega open house. You do things differently. Your marketing materials on point. Your professionalism is on point. Right, right. But hold on. You're conversational. So I like that. I did try door knocking in one neighborhood and like one time. but you also know the area, you know, there's a lot of closed fences. Yeah, you get shot in some of those areas. Exactly. You would get shot.
Starting point is 00:38:50 So again, geographically, that may not be your best thing ever, right? Geographically, that may be a boundary that you have to cross. So if that's the case, we might need to do Facebook advertising and be specific about where we're getting. I can give you eight pillars, but I don't have the time. What I'm telling you is once you get crystal clear on what you have now, 166,000 of income, 30 25 transactions average sales price 300 now that you have that figured out
Starting point is 00:39:20 you have a rifle with a scope on it where you're pointing going that's exactly what I'm doing and anything else that comes into its contrast you might need to do it but now you have a crystal clear plan this is how I would set you up if this was our first coaching call and by the way now we got a year to do this this is not next week this is a year
Starting point is 00:39:39 But in a year from now, you should acquire all that and have that life. Yeah. And then we're not frustrated. Then we're in a place where we're loving what we're doing, right? Yep. This is what I fucking love about you, dude. When we talked, you were totally, you were like, don't BS me. Tell me the straight truth.
Starting point is 00:39:55 And I go, I can coach you very easily, but I need a little more information. That's why we did this call. I take really good notes, right? That's the notes just from us talking. And that's me trying to be present with you and take notes. it's because this is what we're looking at here. We have a game plan now, in my opinion. Yeah.
Starting point is 00:40:14 And if you agree with my game plan, I honestly would go into Claude, not chat Chb-T, Claude is like, makes chat look like a third grader. Go into Claude and say, build me a business plan. I'm a real estate agent in this area, this zip code. I currently do this. Give it as much information. Act like you were sitting down with an attorney designing your business plan. talking to Claude that way, and you'll be shocked of the detail it will give you.
Starting point is 00:40:41 And then you could ask it to go, okay, geographically lay this out. What part of this county do I need to work in? How do I focus in this medium price point? Where do these people work? Where do these people's kids go to school? You can go micro on this thing and make it fun, honestly, because this excites me. When I think about this, I'm like, shit, now I've got a plan. Now I can put all this energy I have instead of working 60 hours a week,
Starting point is 00:41:03 answering everybody's freaking phone call and not being happy, you could say, you know what? That was life-changing. Randy turned a corner for me. Now mentally, I have a plan, and now in 12 months your life's going to look totally different. I believe that with every ounce of my body. Because what you just described is absolutely plausible, doable,
Starting point is 00:41:22 end the story, period. Now, I can't say that about everybody. Somebody wants to go from 400 to 1,000 transactions. There's a lot of pieces of moving parts in there. What you're telling me, if you done zero transactions, I wouldn't feel as confident about my statement. You're doing 20. We just need to focus you. And by the way, that focus might mean locking you in a room for two hours and let you focus on one thing and removing distractions.
Starting point is 00:41:49 I don't know what your weaknesses are yet. Yeah. Okay? It might be noise because your text is going off all the time. I'm going to leave you with this. I had a coaching client recently paying me a lot of money. And I said, bro, I know what your problem in your whole world is. And he goes, what?
Starting point is 00:42:03 And I go, your cell phone goes off every three minutes. It's like, ding, ding, ding. We're doing our coaching call. He's ding, ding, ding. He's like this. He's like this. He's like this. And I go, what are you doing?
Starting point is 00:42:12 And he goes, what? I got to know what's going on. He owns like 200 doors. He's a big deal. And I go, I don't care how many, what you own, what you're doing. Your balance is out of whack because that thing's controlling your life. You need to have an assistant answer all that. And then take 90% of it, answer it.
Starting point is 00:42:29 And then you get the 10% that needed to come to you. And he's like, I can't. I can't let go of this. And I said, then I can't coach you until you do. Because I recognize that as being a broken part of his world. And so he can't ever be attentive. He can't ever pay attention to a client. He can't ever do this.
Starting point is 00:42:50 Everything he's doing kind of halfway. And it was a really, really big breakthrough, but it was a challenge. So brother, I enjoyed this a lot. I enjoyed this a lot. I want to honor you, once again and just thank you for allowing me to record and put this out to other people because I'm telling you a lot of people are in the same situation and this is a tough business it will grind
Starting point is 00:43:13 you and break you if you let it yeah but you allowed me to to give you some of my you know expertise that I've blood and you know been cut over right it didn't get free and I've also walked in all these shoes that I just tried to coach you on yeah I'm not coaching from a place of like theory. I'm coaching from a place of hundreds and hundreds and hundreds of personal transactions, then coaching some of the top minds over the last few years of how to have breakthroughs. And dude, I'd love to hear this journey of yours. I'd love to have a follow-up call in 60, 90, two months, six months, something like that. I'd love to do that again and really bring this into some way that not only you can change, but I think you'll inspire others to do the same.
Starting point is 00:43:59 Totally. Thank you. It's very helpful. and understanding just even the concept of top grading clients. You know, I've thought about grading my clients a lot. I have my metrics in my mind about it, but I need to really kind of put it in action and apply it. And remember this as the last thing I say. You're not letting them down by not handling them. There's other ways to service them and be a good human being
Starting point is 00:44:24 and steward of the real estate industry. I think you could do a disservice for you trying to take care of everybody. Right. The Coast Guard yesterday was Memorial Day, so I'll throw in a military analogy. The Coast Guard, we had a saying, save the ones you can. That means you have to let somebody drowned. But you can save the ones you can because if you try to swim out to the furthest person to save them because they're the furthest away, these three people that were savable now drowned and die as well. It's like not taking care of yourself first.
Starting point is 00:44:54 That sounds selfish, but save the ones you can and then be laser focused to your family first in your business plan instead of the client. All right. All right. Brother, I appreciate you. Thank you, brother. Thank you, everybody for sticking on a little late. I appreciate that. And yeah, Eric, keep swinging, brother. I love that. Casey's a rock star and Sturgis area. You got, you know, you got a lot of people that have done a lot of big things here. And everybody can relate to everything I said today. Would you guys agree? Yeah. Everybody's shaking their head, man. Everybody's with you, brother. All right. All right. All right. Appreciate you. Thank you. Thank you, man. Appreciate it.
Starting point is 00:45:31 Have a great day, everybody. You too. Bye.

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