EXP Special Announcement from Brant

EXP Special Announcement from Brant

***SPECIAL ANNOUNCEMENT: Brant Phillips Joins EXP Realty

Yes, it’s true, I recently made the move to go to EXP Realty with a Broker model that is absolutely changing the way the game is being played in the real estate world.
Connor Steinbrook and I also had a little business conversation today about EXP Realty 🏚
…AND….
Why Agents & Investors are Running (not walking) to the EXP Opportunity 🏃‍♀️🏃‍♂️🏃‍♂️🏃‍♀️
👉 Connor’s gonna be in Houston next week @ our ReiAction event, speaking with me about how you can grow your Investing & Agent business with a new BOLT-ON BUSINESS Model that is changing the game for Agents and Investors with stock options & passive income 👨‍💼👩‍💻🔥💰

Brant:Hey everybody. I am here with Connor Steinbrook, and I’m making a big announcement today on social media. We tried to pull this off on Facebook Live earlier, sorry, a little bit technically challenged. But, I’m making the announcement today that I’ve officially moved over to eXp Realty and man, I’ll tell you what. I know some of you know about this, but not everybody does, so I wanted to make that official announcement and also talk about why I’ve made this change in my business. And I’ll tell you: this is something that completely blindsided me. It’s not something that I saw coming at all. You know, for those of you who know me, know I’ve had a license for almost 10 years, but actually deactivated a while back, and I really never used my license just for my own stuff and I never, you know … honestly, I was never … the realty model, the realtor model, was never in alignment with helping me honestly go out and create the life and the business and the goals that I wanted to accomplish until this man that you’re looking on the other side of the screen-

Connor S.:Hey.

Brant:… Hey. I’ll tell the quick stories, introduce Connor, but you know, Connor, I knew of Connor through social media and through Facebook and some of his investor army podcasts and stuff like that, and I went up to speak at a Quest event in Dallas, and one of the girls came up, and she’s like, “Hey, Connor’s gonna get up and speak before you. He’s sponsoring the launch.” And I was like, “Oh, that’s cool. He’s probably gonna raise private money.” He’s in a room full of lenders and there’s other real estate investors here and then, you got up and started talking about eXp Realty and about the cloud-based brokerage model and how it’s just destructing the industry and revenue sharing, passive income, and all this kind of stuff, and I was like, “Why in the hell is Connor talking about eXp Realty?” ‘Cause I didn’t know what it was at the time. And since that time, obviously, a lot’s changed for me. But Connor, introduce yourself to everybody as well.

Connor S.:Hi guys. So, some of you all know who I am, some of you all don’t. I’m an entrepreneur out of Dallas/Fort Worth, Texas. I run a real estate acquisition company. We’re on social media right now. I built a You Tube channel called Investor Army. We have Investor Army podcasts, Brant’s been on there, some of you all know him as Stephen, a lot of the big guys that you all probably follow, we’ve had them on there. I mean, I’ve been in the business for quite some time. You know, we’ve done everything in the single family world except really build houses, and just like Brant, eXp kind of came out of nowhere and kind of hit me like a tsunami.

Connor S.:And you know, the big thing that resonates with a lot of entrepreneurs like us is multiple streams income. And the traditional brokerage model that we’ve always seen … it’s a great model, but it’s all based on a franchised brick and mortar model and usually, one income stream commission based model. And what does that mean? It means the agent’s out there working really, really hard to make that franchise owner and that company wealthy, essentially. So, what Glenn Sanford’s done with eXp Realty is he’s created an agent-focused agent-centric model instead of a franchise-focused model. So, I like to say, you know, these other big companies out there, they’re great. They’re always gonna be better than eXp, but for the franchise owner. Since we’re a non-franchise company, we’re focused around agent success, which we’ll talk about. We have three different income streams. Right now, personally, guys I’ve looked at just about every brokerage model in the country and I haven’t found anything when you put math to paper, pen to paper, you take emotion and feeling out of it, and let’s say let’s just look at facts, logic, reason and mathematics, there’s just nothing that I’ve seen anything like this.

Connor S.:And so, that’s why I moved my license over here. It’s been a huge blessing for us. I now run a real estate team that operates in 14 going into 15 states, and I did this in eight months due to the technology that this company allows us to have, the ability to build teams across the country. It’s been an amazing run and we’re just grateful that Brant came in and saw it. And so, yeah. Let’s dig in. Let’s talk about it. Let’s knock it and show these people why it’s such a great opportunity for them because a lot of agents are stuck on that hamster wheel and we now have a path for them to really get that freedom that they want.

Brant:Yeah. Yeah, man. It was breaking up a little bit at the end, but you’re right, man. Like, what drew me to it was people were so like … when I was first being drawn into real estate, it was all about passive income. It was about that lifestyle and going out … you know, I believed that if I could go out and build it, that I could create like that life with this passive income and all this kind of stuff that we dream about, and that’s one of the reasons why I was never attracted to the realtor model side of the business honestly. It was just transactional income, right? And that’s what I saw, and I’ve seen over the years, is that there’s a lot of really hard work and very smart agents that they get caught in that hamster wheel where they’re just constantly, constantly working, working hard for transactional income over and over and over again. And unfortunately, they may be on that hamster wheel for decades and decades and decades and never get off.

Brant:And that’s what attracted me so much to eXp when I started hearing you talk about and I started reading about it, it was just what Glenn Sanford has created has to be one of the most genius business models that I’ve ever seen and I started learning more about it and I started talking to friends about it, friends who were really, really successful business owners and entrepreneurs, and basically, given them the invitation. I’m like, “Hey. What I want you to do … I’m gonna show you this eXp business model that’s completely cloud-based business model and what I want you to do is poke as many holes in it as you can.”

Connor S.:They can’t.

Brant:They can’t. And nor could I. You know, when I sat down and looked at it all and sitting there with my wife and we went over it all, for me, it wasn’t a matter of like, should I do it, it was a matter of like, where are the holes? Like, why shouldn’t I do this because it’s giving me everything that I wanted to get into real estate for. It’s giving me not only … it’s a bolt-on business, really. For some of you guys, I know focus is so important in this business, and just as being an entrepreneur in general, that to me the really successful entrepreneurs and business owners have multiple, multiple income streams. And the most successful ones I’ve seen, they’re typically income streams right from the same field. And that’s the cool thing about it for real estate investors or agents, this doesn’t take you away from what you’re already doing. It adds onto it. It is a bolt-on business that you can begin generating wealth through stock options with the company, but also additional passive revenue each and every month and I make no bones about it.

Brant:Like, I love everything about eXp, but that’s been one of the big things that’s drawn me to the company, that we’re able to build teams and give … but also at the same time, it sounds cliché, like, helping other people, but that’s what we’re doing, man. Like, you’re right. Whenever I go into the eXp world and into some of the private groups that we have, you’re hearing these agents talk about how eXp’s changing their lives-

Connor S.:Changed my life.

Brant:… and it is because you know, you and I, you know, we have the skillsets, we have rental properties, and we built passive income. We already have that, but we know the rental property model’s not the most passive model in the world. It’s actually a very active model, but we’ve got some owner financing properties, you know, we flip properties, make 30 or 40, 50000 dollars. I know that you and I both have businesses that we buy and sell 50 to 100 houses a year. So, I’ve got people asking me like, some people I know that I’m moving into doing eXp as well, and they’re like, “Why are you doing that?” And I’ll let you take over a little bit and share what you’re seeing, but it’s because with essentially a no-risk business model, we’re able to outproduce …. me from already from what I’m seeing is, I’m gonna be able to vastly outproduce income-wise what I was never able to do with my rental portfolio. And so, for me, it was a no-brainer for me.

Connor S.:I mean, that’s what you keep hearing: no-brainer. That’s just two words that keep coming up. And it is, because when you guys slow down to look at it, and we’ll show it to you here in a second, but I want to bring up something that’s very important what Brant said there. So, unless you’re Elon Musk, you can’t really tap into multiple different markets when building different businesses. So, you have to create symbiotic cash flow income streams into the same business model. So, you have your eXp business, you can invest in real estate, you can do things within the real estate world, maybe even have a mortgage license, but if you’re trying to start a real estate company and a restaurant and laundromat and different industry guys, that’s gonna be very, very tough for you to cheat. Now, the other thing is, multiple streams of income are very, very important.

Connor S.:So, let me quickly run through kind of how I got here ’cause it’s gonna resonate with a lot of you all because if you have one income stream right now guys, you are at an incredible risk. You are one bad day away from having your life fall apart. And that’s what happened to me. That’s what happened to Rob Slake and a lot individuals that you’re gonna meet in entrepreneurship. So, I was a very high transactional earner for about 10 years, and I just show up to make an income. I put my energy in. So, we’re talking about active or transactional income. We’re trading our time and energy and resources, but we’re only getting paid in direct relationship to that time and energy you put in. And once you stop working, income stops coming in. And so, in 2011, the industry that I was part of disappeared overnight. And I did what most real estate agents do, which is, I lived for immediate gratification for the entirety of my career to that point, which means that I spent my money as fast as I made it. And I didn’t have, just like most agents, that self-discipline or that business maturity to plan for that business horizon to clip money with. And there is no 401K for agents.

Connor S.:And so, what do we see, Brant? We see the very sad thing that constantly happens with innovator’s careers, which they’re not looking at down the road, ’cause they’re content with living the way they are right now: going on vacations now, having a nicer car now, trying to keep up with the Jones’s. But what we see is that they sell houses, as they get older, energy levels drop, liabilities and life pick up, they have kids and grandchildren, they don’t have the energy that they used to, and they don’t want to put in those long hours when they were making that high income. And then, what happens is, they wake up at 75, they’re still selling houses, they tell everybody they just love the business and real estate’s in their blood and it’s just the biggest lie that we see because they can’t live off Social Security, they can’t retire, they still have to try to get income for themselves, and they didn’t have anything to live off. They built no residual income, they didn’t build up equity in anything, and they’re stuck. And it’s very sad. And you see that happen to so many of them.

Connor S.:So, when I hit rock bottom, I promised myself, similar to what you did, two things: I’d always have multiple streams of income, and I’ve always have a residual income stream as part of that business model that I was working on. So, when I saw this model, and the three-income stream model that we have, we have a commission-based income stream, we can go sell houses, and we have around 80/20 split, just how agents have always run their businesses, we’re real estate agents. But Glenn Sanford introduced an equity model, as y’all saw back in May, we uploaded to the NASDAQ, now it’s the second publicly-traded company as far as real estate brokerages here behind ReMax, very big news. We have five different ways that we can acquire stock through the company through stock awards, just doing what we normally do as agents. And then, we have the really strong residual income stream, which allows agents to build teams, similar to the KW profit share model, but what we’re doing is called a revenue split.

Connor S.:So, if you understand business and verbage of business, revenues before expenses. Profit is after expenses. So, it’s like splitting the pizza into the slice. And so, that’s why a lot of agents are coming over. And the reason why so many big agents and big real estate professionals like Brant, myself, and a lot of industry leaders are coming in, it’s not ’cause they didn’t like where they were at or they had a problem with their current brokerage model, in fact, a lot of these guys were coming in and talking about how they were at some of these big box branches for 15 years and they absolutely loved where they’re at, but they’re coming for more opportunity, not because they’re leaving somewhere that they had anxiety against or some type of issue with.

Connor S.:So, that’s what’s actually happening. And when you kind of go through this model period, and breaking down fees, and kind of the income streams as far as the stock awards and how that works, if you want, or if you want to add to anything I just said.

Brant:No. I would love to get into that. And talk about it from the investor point of view as well where you know, I just came from a two-day mastermind on the West coast for investors from across the nation, and you know, one thing that I’ll tell you that I felt to really take advantage of as an investor over the years is the fact that I have had my license, but I viewed my license as just a way to list my properties and save some money here and there. That was it. And access to the MLS. And that’s a viewpoint that a lot of investors have, but I’ll tell you what: I was in a mastermind not too long ago, and one of my mentors, they say you should … they buy over 250 houses a year from real agents, so they’re up to over 800 houses a year, but almost 25%, more than 25% of those houses they buy are from agents. And so, that really got me thinking. I’m like, “Man. I’m really not utilizing … I haven’t built some really strong team of agents. We buy houses every year from agents, but not very many.”

Brant:And then, another thing that a lot of investors do that have the license and they have a team of agents is they’re able to capitalize on their ad spending. As real estate investors, if you’re spending time, money, energy, effort and resources for direct marketing and you’re only looking at making cash offers on your deals, you’re really leaving a lot of money on the table and keeping away from listings. So, we’ve been focusing more on that in our business, but more importantly, we’re really trying to build a team of agents who understand the investment model, then we can work with them on the investment side of things so they can grow their business through working with us, working through other investment company, then they’ll understand that. But then, at the same time, whenever I really start putting those two things together, but at the same time, I could grow a team of agents that could come onto our eXp team with this model, and it’s been game changing, you know?

Brant:We’ve already been bringing some team members on and you just see people like, I love to coach and teach and motivate, educate, inspire and all that kind of stuff, but that’s why I love eXp too because of what you’re about to share with people. When people start to see it, they get fired up. They get fired up and excited about it because it’s answer really to … a lot of people have dreams, prayers, and what they’ve been wanting their whole live and Sanford’s just created an incredible model.

Brant:And you know, I’ve watched a lot of videos Glenn too when I was doing my research and I heard him talk about, you know, really going back to the drawing board and we’re like, building it for the agent’s benefit, not the broker’s benefit, that really, really resonated with me. And the more I’ve learned about the company when I’m talking to agents, and agents are considering eXp, they’ll ask questions and it’s almost like they’re expecting negative responses from what they’ve seen in the past. Like, “Well, what about this? Well, what about that?” “Yeah, well, here’s what it is at eXp. This is how Glenn’s structuring it.” Like, “Oh.” Like, they almost weren’t expecting it because everything is in their benefit, even little things, like there’s no desk fees or you know, insurance is capped at $500 where other brokers will just continue to charge and deal and deal and deal. All those little things are built in. It’s baked into this nice little eXp cake, man, and it’s like pretty delicious.

Connor S.:Yeah. I mean, Glenn Sanford’s an incredible individual. It puts a lot of confidence in myself and you and all of us in the company when we see a leader like that because if you don’t have any belief in the company that you’re a part of or you have any doubt in those leading your company, but when you get in this company, you see that there’s a uniformity between all of us that we know the vision, we know Glenn’s vision, we respect him and we’re grateful. I mean, I guess that’s all I can say is, I can’t believe that this exists for us. As agents, we’re grateful that you created something like that and everybody’s winning together. But also, ultimately, what it comes down to brands leverage. And that word, if you don’t understand that, you will never succeed past what we call solopreneur. And so, everybody knows what it’s like to be a lone wolf out there, trying to build a business. You wear every hat in the business. You’re doing accounting, you’re doing marketing, you’re doing everything. You can’t leverage. So, we need to leverage other people’s money, other people’s time, technology, and what we’re doing right now.

Connor S.:So, one of the things we’ll get into is the cloud-based brokerage, where we have 200 paid employees in the cloud. I just want to talk about this real quick because when you have agents and investors, they kind of live in the same world and they interact and they cross paths regularly. And so, but there’s kind of two different worlds but at the same time, I don’t know what the exact percentage is, but there’s a massive percentage of real estate agents that are also investors. And so, a lot of y’all become agents, you work really hard and you create a high active income for yourself, but what we talked about earlier, is as income goes up, so does consumption rates. So, as you go from making 50 grand a year to 100 grand, 200 grand a year, you’re not really saving anything and you’re basically just spending more. So, you go get a nicer car, you eat nicer dinners, you go on more vacations, and so you start to realize, “How am I going to retire?” And so, a lot of agents decide they want to move into the investing world: to create a rental portfolio, to start creating nooks.

Connor S.:So, let’s look at what it takes just to create three to four, $500 a month net after total liabilities on a rental property. So, as you all know, right now, the market’s heating up, or it has been heating up for a long time. It’s competitive. We’re competing against the marketplace: headstrongs, private equity firms, companies like Open Door, other investors, and most people are telling me as I travel around the country, cost of acquisition or to get a house under contract or monetized lead, could be anywhere from three to five thousand dollars. Some of y’all are franchised operations, and it’s even more expensive than that. So then, we have to have that money, take the risk of marketing, compete against the marketplace, arrange that short term high interest rate money to close on the property. Then the contractors come in, we risk them extorting us, walking off the property, stealing from us, all the risk of contractors. Then, we have to be financeful on the back end, be able to finance out that amortized long term loan on it, then have a property management place keep cash reserves, and that’s ultimately to create three to four hundred dollars net in that cash flow.

Connor S.:And so, now, we’re able to build teams through our revenue share relation. If an agent comes on your team that you personally introduced to the company, when they sell a house, you can receive 3 1/2% of gross commission, of GCI, I guess you can say.

Connor S.:So, let’s look at this right here and kind of do some basic math to show you how powerful this is. So, if someone came onto your team, essentially, you gotta look at this guy as if you’re a broker without a broker’s license building a team. And so, you have, say they sell a $400000 house. That’s gonna be a $12000 commission. But, you’re gonna get 3 1/2% of that, which is $420, which is the equivalent to a rental property, right? But you don’t have any leveraged debt on your shoulders. You don’t have that anxiety of holding all this weight and everybody that owns rental properties and everybody that deals with debt understands that. But we’ve always known, understanding leveraging other people’s money, leveraging bank’s money, but think about that. An agent just selling once house a month is equivalent to owning a rental property if they’re selling a property in that price point. But here’s what Rob Flake impressed upon me: Rob Flake’s the number one guy in the company. Everybody loves Robert Flake, incredible inspiration for so many of us. And I’ll never forget: he tapped me on the shoulder, he said, “Connor, I know you love the real estate business. I know you own a lot of properties and you understand residual income, but houses will not buy houses for you.” And that was always impressed upon me.

Connor S.:And so, you guys all understand J. Paul Getty’s famous saying: you can put 100% of your effort, or you get 1% of 100 individuals’ effort. And so, it comes down to leverage, right? And elimination of risk. And so, that’s what was very … hit me very, very hard when he said that to me ’cause it just clicked. And so, that was why I kind of gravitate towards business. It’s just an extra ability to build residual income. And then, when I found out that we could receive stock, it blew my mind because you don’t see that very often. In fact, besides ReMax, I don’t know any other companies out there. There could be, but they may be on OTC. I’m not quite sure. Other people may be able to comment that.

Connor S.:So guys, when you come into the company and you sell your first house, right now, they’re gonna give you 35 shares of stock. And I think yesterday, the stock closed at like, $16. So, think about that. Just doing what you’re normally doing and selling houses, the company’s gonna award you stock. So, that’s why they’re calling this essentially an agent-centric company because everybody’s part of the same company and we’re all equity owners together. Now, also, if you want to come in and you’re a high-producing agent and you get 2.66 million in gross sales, they’re gonna give you another 75 shares of stock. Now, if you want to take part in it, we have an optional stock program, where they essentially allow you to buy back 5% of your gross commission at a 20% discount. So, 20% against equity. So, say you did $10000 commission, you can buy back 5% of that commission at a 20% discount. Now, this is optional; you don’t have to do it. But, most people are taking advantage of it.

Connor S.:Now, maybe we want to talk about the ICON program, ’cause this is very, very powerful because this is allowing top agents that are low fee shops the ability to come in and leave there, which they never had an option to do, when you look at it, and how I explain it here in a second. So now, coming to eXp and having more opportunity.

Connor S.:So, let’s look at the way traditional agents come into the business. Now, this isn’t how everybody follows this path, but most of them do. So, when a new agent gets their license, they comes in and decides to become a real estate agent. They usually go to a big box brand company because those are the ones spending money, sponsoring the real estate schools, they’re coming in and doing lunch sponsorships, and they come in and they tell them all the same stuff. “Oh, you need name recognition. Oh, you need an office. You need all these bells and whistles.” So, they sign up to a great company like Keller Williams or Coldwell Banker or one of these big companies, but they’re paying a high commission split. They’re paying transactional fees, a commission split, they’re paying into a cap, and what happens is, they go through the training, the ones that make it, they start selling 10, 15, 20 houses, and they quickly realize that, “I can do this without the help.” And they handle it for them.

Connor S.: So, they want more of a commission. So then, they gravitate towards what’s called flat fee shop. So, flat fee shop guys, where they basically just let you hold your hat there, hold your license, and most of them are between $250 and $500 a transaction. And so, the way this ICON program’s set up, it benefits top producing agents. And let me kind of explain how it works because why would someone who is paying $250 a transaction look at a big company like KW or eXp or something like that that’s got a 16 to 20 plus thousand dollar cap? Why would they ever leave? ‘Cause they’re seeing that gap, you know, of 12 to 15, 20 thousand dollars. Well, with eXp, we have what’s called an ICON program. And so, if you come in and you’re doing … you know, most people can do this in 25, 35 transactions, depending on price point of your market. If you sell your 2.66 million in sales, you’re gonna pay into the company a $16000 cap. But after you pay into your cap, you’re gonna go to what’s called a flat fee shop. Then we go to a $250 transaction fee per transaction. If you do 20 transactions, after this point, the company’s literally going to give you the $16000 back in stock.

Connor S.:So, if you figure it takes you 30 to 35 houses to do that, you’re really only paying 20 transactions by 250 or $5000. So essentially, if you want to look at your cap drop from 16000 to 5000, but if you did 20 transactions, how many houses did it take for you to take to get to your 2.66 million? So, say it took you 10 other houses, now you can see that you’re actually dropping your transaction fee below what would be a 250 shot. Also, you’re gonna get 35 shares when you sell your first house, you’re gonna get 75 shares when you cap out and you do your 2.66 million, and then if you’re taking advantage of every program, if you’re doing a lots of different line item transactions, you know, you’re buying back lots of different line items at a 5% discount, or a 20% discount, you can quickly see how basically you can come in and take advantage of all of the benefits eXp has to offer: 200 paid employees in the cloud, lead generation platforms like Conversion and Commissions Inc., making it rain, you’re able to build stock in the fastest growing brokerage in US history, and you’re dropping your monthly transaction fee.

Connor S.: And we were talking to a guy the other day. When he ran his numbers, once he started leveraging in these other equity models and residual models, he was actually gonna get paid to come over to sell his houses instead of … he was actually gonna get paid I think it was like, $100 we figured out, to sell a house than to pay his $250 flat fee shop. So when, these big mega agents see this, it blows their mind and that’s why you’re seeing so many accounts partner up with Brant, myself, and other people at eXp. So, it’s really, really powerful and it’s just changing lives all across the country.

Brant:Yeah. So, you covered a lot and that’s basically where we go. There’s so much to talk about. And so, one thing is, as business owners, business owners I think, especially when we talk about real estate investors because if your goal is to make more money and create a better lifestyle, that kind of stuff, you really have to put your ego at the door. Let’s check your ego at the door a little bit. And so, one thing that I’ve talked about in some of conversations that I’ve had with real estate investors to really help them understand the opportunity here, ’cause sometimes, maybe people aren’t fully engaged. Like, “I have no desire to be an agent.” Or, “I have my license.” Or whatever. But I’m telling real estate investors, I’m like, “Hey, look. If I was just getting started, if I could go back and do it all over again, if I had the choice between owning rental property, being a landlord investor, which so many investors, they want to do that. Like, that’s the one hit thing to own real estate and I get it and I’ve owned a ton. And I could only choose one, or be an agent in eXp Realty, hands down, it is such a no brainer.” The business model is so much better.

Brant:Connor, you held up your phone and it said $420, right? $420 would be what that agent could produce for you when they go out and sell a house. Or, think about it: so, how many houses can you buy in a year? So, we’re all gonna experience some type of bandwidth capacity when it comes to buying houses. And I know a lot of guys who, like, we buy 50 or 60 houses a year. That’s a lot of work, right? And that took a long time to build up to build that business to get to that point, and we have literally millions of dollars in expenses with our staff and our overhead, our contractors, materials, insurance. All of the things that we can’t … and there is a ton of risk. There is a ton of risk. We have pipes break, we had three ACs go out last month when we were in Texas. You know, there’s things that happen. We have an eviction right now, all this kind of stuff. But the opportunity that’s here with eXp is Connor, you’ve been in this less than a year and you have 70 agents on your team. And it’s just amazing, right?

Brant:And so, we’re pushing in just a couple of months to get to double digits of agents. You can’t do that with real estate.

Connor S.:Right.

Brant:You can’t do that with real estate, but at the same time also, without any financial investment, you’re without any risk. And you touched on earlier, like, this is essential, like, the broker model, and it is, but without the risk, right? And that’s a big thing. And without the expenses and the overhead and the liability and having to do the training and all that kind of stuff. And it’s absolutely the best of both worlds. And really, I think, for people who’ve never owned their own business, it may be a little bit more difficult for them to understand how incredible this is ’cause if you haven’t been through those bumps and bruises and taking losses and just the whole start up of building a business. I know a man who buys and sells businesses and that’s all that he does. He buys businesses from Shark Tank, from the sharks on Shark Tank. He’s waiting in the back to actually buy it from them, ’cause they don’t even buy a lot of those businesses.

Connor S.:Wow.

Brant:He’s in there to buy them. And his number one piece of advice for entrepreneurs is, never start a business. Never start a business because one, it doesn’t really make financial sense. You look at the failure rate of starting a new business, and there’s so many businesses that you can buy under value, he doesn’t know about the eXp model, though. This is like a whole nother level where you’re getting a business in a box. You can go out and build … if you’re an agent, you can get new listings. Not only does this model not gonna slow you down, it’s gonna speed you up because it’s a technology-based company. It’s very agile. It has the top of the line training, support, the systems, the software, everything you need to grow your realty side of your business.

Brant:But at the same time, at the same time, when you begin bringing on the agents, you know, like, I’ll be honest. I look at my agents as like, they’re properties, in a sense, you know, just in terms of what they represent to me ’cause my real estate, my rental properties, my owner-financed properties, those represent an asset to me. The only thing is, I don’t know whether or not they’re gonna produce a cash flow for me or not, but when I’m bringing on agents, like, they’re assets to me and they’re team members and we’re treating them like that. Like, I know that you and I are on the same team, and you’re in Dallas, I’m in Houston, that’s something that we’re doing is really getting behind our agents so that they grow their business as well.

Connor S.:Right.

Brant:It’s like wildfire, man. It’s just catching on like crazy from everything else here.

Connor S.:Yeah. I mean, it helps somebody to have a high-powered entrepreneur that’s been there and built a business like you have, that’s scaled a business from the ground up. So, when you look at, I mean, really guys, there’s not many options if you want to get in business. You’ve got four options: you can join a network marketing company, you can build a business from the ground up, you can buy a business, or you can buy a franchise. That’s pretty much it when you break it down. If you don’t have the money to buy a franchise, how are you gonna join a business, right? Very, very risky to start a business.

Connor S.:Those who follow me and follow Investor Army know my story very, very well. I went from 25, 27 grand in my bank account to six months later making $65000 in debt because I made every mistake in the book. As a real estate investor, y’all know what it’s like to drop 10 grand on a mail campaign, and not get a deal. Very, very risky. And then, like Brant’s talking about, I had a house flood just … it was like three weeks ago. The tenants were out of town, water heater exploded, nothing stopped it, flooded the house. Two years of cash flow gone even with insurance, right? So, these things happen and you know, when you really look at it, owning a rental portfolio, even owning a portfolio of notes, it’s not passive. Like, the closest you can get to actually being passive is just lending money. But if you don’t have a lot of money to lend, and you need a lot of money to lend to create a decent passive income, for example, Chris Sorinetti, who’ve you’ve met, my sponsor in this business, he’s making more in revenue share he told me now off of his apartment complex deals that he’s got across … he’s in a bunch of syndications and he’s leveraged across millions of his own dollars, and he’s making more through his residual income stream with eXp than he is across all of his apartment complex with zero risk. Yeah. It’s crazy.

Brant:And then, how long ago a time period has Chris been with eXp?

Connor S.:I believe Chris has been probably between a year and a half and two years now, he’s getting in. Yeah. Unbelievable.

Brant:Can you just repeat that? I want to make sure that they heard that, ’cause I don’t think it had the effect.

Connor S.:Alright.

Brant:So, he has millions of dollars invested in multiple apartment deals across the country-

Connor S.:Right.

Brant: … already, in a year, year and a half, he’s making more passive income with eXp than with all his apartment buildings he invested millions of dollars with.

Connor S.:Right. It’s incredible. And he doesn’t have to have that money tied up. That’s the thing that people don’t understand is that we’re taking out a lot of loans as far as investors go to build a portfolio. And so, a lot of people that want to build passive, they can’t handle that weight. So, it’s not like HGTV when you watch it on TV, guys. Once you strike, strike that signature on that dotted line, you have money on your shoulders. And a lot of people are doing it incorrect. They’re personally guaranteeing these loans. It’s tough. That’s a lot of weight. So, what if these new agents want to come in and build a team and they don’t have the ability to come up with the money to buy a franchise, to launch an office. It limits the average agent’s to get into the marketplace. There’s a barrier of entry and it’s a financial limitation for the normal agent. But now, agents are able to come in. For example, here in Texas, you know, it’s a number of years before you get your broker’s license.

Connor S.:So, say you’re talking to an agent that’s at a different company, you talk to him and you talk about them and their family and what their future goals are for their business, and you’re like, “John, what does the future hold for you? Do you just want to continue on selling houses basically as a commission-based employee and selling houses for active income? Or, do you really want to be an entrepreneur and run a business someday and leverage a team of agents going out there and selling? Do you want to build a brokerage?” And pretty much, I’ve talked to a ton of agents lately across all … I’ve bounced around the country, about one in three Brant tell me they want to run a brokerage and have a team of agents, but they may be years away from getting their brokerage license. Then, they have to take all these classes. I think we have to take 900 hours in Texas, from what I understand, someone may correct me later. And then, they have to have all these extra costs. Then, they have the liability. What happens to those agents that are out there acting unethically and doing things that are lacking in integrity? It reflects upon them.

Connor S.:And so, what we have to offer them is something so amazing because as we all know, time is the most valuable thing we have. So, if they’re two years away from getting their broker’s license, we can give them two years of their life back. We can take their future goals, their future dreams of being a team leader and building a team and bring it to today’s present moment, and all they have to do is change into eXp. And now, they can start building a team today without any liability.

Connor S.:So, we can literally take years of what they’re working towards away for their goals and bring it to the present moment. It’s incredibly powerful and you’re just changing so many lives. You know Pat Hayes; you met Pat Hayes. We were at the eXp leader event, you know, a number of us that had built larger teams went down to Phoenix and he was on stage with his wife. They wound up having an incredible family, and after 11 years of his wife having to work at corporate America, they were on stage crying. A lot of people were on stage crying that weekend because so many lives have been changed. And they’re like, “Look. After 11 years, she can now quit her job and spend more time with her kids and be at home and do what she wants with her life. She is no longer caught in that corporate trap.” And we’re seeing this happen all across the country and that’s why we’re actually hearing agents changing their lives through this eXp model. It’s crazy when you really start thinking about it.

Brant:It’s crazy, man. And so, I’m thinking about this statistic of nine out of 10 businesses fail.

Connor S.:Mm-hmm (affirmative)-

Brant: So, when I’m doing my real estate events, you know, I talk about that because there’s a lot of new people coming into the business. And I go over that statistic that nine out of 10 businesses fail. And I share with them, I stress like, don’t become a statistic. It doesn’t have to be that way. Even in investing, it doesn’t have to be that way that nine out of 10 investors fail. They fail to reach their goals. But, that’s the way it unfortunately shakes out, right? Like, I would say nine out of 10 don’t have good coaching support, mentoring, the right model and the fundamentals to follow, but that’s another story. When we look at eXp, I don’t know if there’s a failure rate at all because there’s essentially no risk. You look at the upside, which is amazing, and I know we can’t really disclose too many numbers, what people are making monthly, but it’s amazing. And just do the math of, you showed it on your phone, and you’ve got 70 agents on your team, I’ll let people just kind of do the math. But, you look at the success rate, you look at other opportunities … look at how many brokers fail with the broker model. So, this opportunity, it’s plug and play and it’s really … it is a absolutely risk-free essentially, financially … like, there’s no financial commitment to eXp.

Brant:And then, the upside is really what you want to make of it, you know? We’re seeing people come into eXp, into this business model, and absolutely crush it. And I’ll tell you another thing that’s really … just, it’s validation … and one of the things that was validation for me when I first started doing my research, when you start looking at the top brokers, the number one agents from Keller Williams in the past consecutive years have all come to eXp. Like, you raise your eyebrows. You’re like, “Oh. I need to take note of that.” And all the other brokerages, they’re top agents and brokers are coming here.

Brant:But then, also for me, it was even more validation when I’m seeing some very high-powered elite investors come to eXp, some of which, like yourself, you didn’t even have a license. My license was deactivated. And I didn’t understand that at first when you mentioned that. And I was like, “Now, I understand.” And now, I understand why elite, elite investors, extremely successful business owners, are coming to eXp because it’s a business model that’s never been created before, right? Like, there was never an Amazon before there was an Amazon or an Uber before there was an Uber. And that’s the way I look at this and that’s why when we started this thing, I said I was blindsided. Like, I was completely blindsided. Didn’t really have the time or desire to start another business and luckily, this hasn’t really been like, starting a business. It’s just been like, plugging into a business. You’re really plugging into it. But, I still wasn’t expecting that. It was just like, man.

Brant:When I teach investors about real estate, we teach them the formula, the numbers, the buying criteria, what we’re looking at, and I tell them, I say, “If you’re a real estate entrepreneur, when the numbers make sense, you have to do the deal or you have to ask yourself, am I really a real estate entrepreneur if you’re saying no to deals when the numbers make sense.” And so, for me, as an entrepreneur, that’s why I just laid it out on the table. You know, when you say you meet with agents, and we do that, we take pen to pad, and I’m meeting with agents and they’re saying, “Well, I’m happy. I’m here new.” I’m like, “Let’s have a business conversation about where you’re at, what you’re doing, and what this is.” And that’s what I did. I just put pen to paper, got an excel spreadsheet out, and I’m like, “How can I not do this?” And the excel spreadsheet is kind of mind blowing when you really look at it, man.

Connor S.: I believe it. I can’t tell you, probably close to 100 different models, all the big box brands, different little boutique brokerage models, so right now, I’m up in New Jersey. I flew into the Northeast part of the country. I was in New York, then I went to Connecticut, then to Pennsylvania, New Jersey, Virginia, North Carolina, and now I’m going back through and meeting with our team leaders up here. So, they’ve taken off the geographical restrictive handcuffs. Now, I can build teams all across the country. And it’s just incredible when you start thinking about it. But, I personally have always wanted to run a team. Like, guys think about it: who doesn’t want to have a team of agents? But, I was years away and a lot of effort before I could even get to that point.

Connor S.:So, I was a busy individual and what’s been really cool for me is, you had played sports, I played sports, a lot of people that go into entrepreneur had a athletic background. They had a team mentality and wake up and jump into the world of business, and when you start a business, it can be lonely. You’re all on your own. You’re the only one up at night. All the risk is on you; no one’s helping. And now, it’s exciting. Look what we’re doing: bringing our own team now. You know, I’ve got all these different individuals we’re working with and it’s exciting because everybody’s winning together. And so, we’re all working together to grow this thing, and I truly, sincerely, my heart believes it’s gonna be the biggest company on the planet. That’s just my opinion shared by a lot of individuals being that they want go worldwide with this thing eventually just down the road. We can already build teams in Canada, so for $85 a month, somebody … some of you all know Ian Flanagan from our other podcasts. Brant knows him; he’s on our team. Well, actually, I’m on his team, but he’s got a team that operates in Canada now for $85 a month.

Connor S.:So, let’s look at the fees here to join the company, ’cause I think people are … it’s gonna blow their mind. It’s just $150 sign up fee and that counts for your first month’s sign up fee. It’s $85 a month. And they’re gonna give you incredible training and give you incredible lead generation platforms. And the reason why they’re giving us so much support and so much help, guys, is because, you’ve got to look at it: when you look at these other big franchise models that came for us with brick and mortar, they have a lot of overhead. Some of them have between a half a billion to a billion dollars a year in costs that we don’t have.

Connor S.:And so, if you have all that extra money that you can wipe off the balance sheet, at a franchise operation, where does that money go? It goes to the company or the franchise owner. But, we’re agent-focused, agent-centric. So, they can spend more on each agent. They have more money in the account to spend more on each agent. So, they’re giving us Commissions, Inc. They’re giving us KD Corp. They’re giving us Making Great. They’re giving us live training in the cloud. They’re giving us 200 paid employees to help us leverage the growth of our business because the better agents they make us, the better we can serve the community, we can do better for the community, help sell more houses and more profit goes back to the company.

Connor S.: So, it’s all a circular business model, I guess you could say. It all intertwines and it’s just amazing when you really start looking at it. And then, it comes down to all these different brokers I’ve been meeting, I’ve done the same thing and I simply challenge them because the biggest issue Brant that people are not slowing down to look at this. Which is why I didn’t look at it because I put it off for a year, which was one of the biggest mistakes I’ve ever made, probably the biggest mistake I ever made is ego and bias. Because when an agent is at a current brokerage model, where they’re at right now, they chose to be there. That was an individual choice on their own. They said, “I’m gonna be at this brokerage model.” So, for you to come up to them and say, “Hey. You gotta look at this other model. It’s better. I’ll prove it to you.” You’re basically telling them that they’re wrong. And instantaneously, nobody wants to be told they’re wrong. So, they’re gonna push it away. Plus, when people are busy, and you throw a shiny object on their plate, what happens? Anxiety picks up and they want to push it away as fast as possible because they’ve already got too many things on their plate in the first place.

Connor S.:So, if you’re watching this right now guys, I beg you, slow down for yourself, your future and your family, and sit down with Brant and I so we can run the math because math doesn’t lie. We want to take feelings and emotion out of it, take all of the bias and ego, and let’s just look at math on paper because I open challenge everyone that watches this, show me that you have a better business model for the agent’s success and I’ll move over to your company because it hasn’t happened yet. I can’t find any model, not only that, I haven’t found anyone that’s remotely close as far as when I look at my time, energy, resources, and risk leverage to get the return on investment with my time and energy that I’m seeing. So, yeah. It’s just a really remarkable company, super excited where it’s going, and yeah. It’s happening, guys. It’s happening right now, live time. You can just hear the buzz around town.

Connor S.:And also guys, a lot of you who are at other brokerage models, you have to understand where you’re getting your information. There’s incredible things I’ve heard from some of these other agents when I talk to them about it. Things are being said about eXp and I’m like, “Where did you even get this?” And they’re like, “Well, my broker said it.” I’m like, “Okay. Let’s just step back and retract a little bit. So, the individual that makes money off you right now is taking a 50/50 cut of your leads that he promised he would get to you and now you’re the one generating your own leads and they’re still getting 50/50. He’s telling you something about a company that he knows nothing about, trying to keep you there. Do you think he’s gonna say anything good, right? Of course he’s not.” So like, if you’re out there with your girlfriend and another guy comes up and starts talking to her, and then he walks away, you’re not gonna go say good things about them, are you? Of course not. These are your competitors.

Connor S.:So guys, you need to talk to someone who’s experienced what was happening at eXp, someone that’s changed their life through it with this model and listen to them un-objectively without bias, without skepticism ’cause this could change your life, too. And if you’re taking your information from a competitor, man, it’s just … it’s not very smart as far as a business intelligence to make a decision going forward. At least that’s my take on my committee on it.

Brant:Yeah. Yeah, man. I agree. Like, for any of you out there who are agents or maybe you’re a real estate investor and you’ve thought about getting your license or it’s just something that you’re more open to considering right now, just reach out to myself, reach out to Connor. So, at the time of this recording, next week, you’re gonna be here in Houston. Next week, you’re coming to speak at our reaction event and we’re gonna block out some time also to follow on Thursday, we’ve got a lot of agents who want to meet with us, talk to us. Just answer questions.

Brant:Guys, there’s no sales pitch. There’s nothing Connor and I … we don’t have anything to sell. It’s not anything like that. This is just a business decision for you. The topic has come up before, like, “It sounds like MLM. It sounds like multi-level marketing kind of thing.” And I’m like, “Look. Here’s the thing. I don’t make a penny. Connor doesn’t make a penny. Nobody makes a dime in this company unless you’re an agent selling a house.” This is built just like the entire brokerage model. The only thing is guys, when you’re going out and selling houses, your team members are getting paid, not just some broker, not some franchise owner, that we’re real. And that’s why it’s like, the synergy with this company and the opportunity is so incredible because when Connor’s selling houses, our team is winning. Everybody’s profiting from that. So, that’s why it’s a synergy like I’ve never seen before. That’s why it’s on fire. That’s why you said you believe it’s gonna be the biggest company in the world and I agree because if it took Keller Williams 20 plus years to get to 10000 agents, and we’ve done that in less than 10 years, there’s proof, right? It not just we’re-

Connor S.:Well, we don’t have 10000.

Brant: … I’ll say projecting, right? We’re tracking for that. And there’s a reason. It’s just a model like I’ve never seen, like Connor’s never seen before, not just in real estate but in any business model across any industry. So guys, if you want to talk, you want to schedule a call, just reach out. You know where to find us. You know where to find me; you can find Connor online. Just reach out, schedule a time, we’d love to talk to you, and just really help you find out if it makes sense for you. If this is really like … Connor and I both did, we looked at it just very objectively, is this going to help me create the life, the business, the cash flow, et cetera, et cetera, that I really desire? And for us, it checked all those boxes, and that’s why we’re here. And if you want to figure out if it makes sense for you, then we’d love to sit down and talk with you, schedule a call, whatever it may be.

Connor S.:Right. Yeah. And there’s so many things that we didn’t go over that we could explain to you when we sit down. I mean, so y’all, if you run small brokerages, you can come over and maintain your branding, you can just partner with eXp Realty so you don’t have to give up your branding and your name that you’ve been building for so long. A lot of you team leaders and small realty brokers, everybody wants to grow a natural company ’cause what’s that old saying? If you’re successful in your local markets, you can become a millionaire. If you’re successful nationally, you can become a multi-millionaire. If you’re successful globally, you become a billionaire. So, everybody understands expansion, expanding across markets, but if you look at what I just did in eight months to go into what we’re … I think when they’re fully on board. We’re now in 15 states. I have a team. Think about that. For $85 a month, now I run a team that operates in 15 states for those agents to go out and sell houses. We’re getting up close to 100 agents. Should be there, who knows? Not too long.

Connor S.:So, if I was to do this with other brokerage models, what they have is a multi-cap model. So, we have a one cap that we pay in the company, $16000. And some of these other models I looked at, if I was to go into 14, 15 states, I would have to pay that $16000 cap every single state that I went into, which is hundreds of thousand dollars. Also, some of these other companies, they have an accelerated cap, meaning if I was to build a team in Hawaii or Canada or some parts of California where the average sales price accelerates and goes higher, the cap rises with it. Our state’s static is 16, so we have one cap of 16000 and it never accelerates. So, for those of you who are team leaders, that’s incredibly beneficial to you. And so, we no longer have to take time off our business, have that opportunity, costs loss, traveling up to other markets, figuring out where we want to hold a brick and mortar lease, then taking the risk of signing that lease for hundred of thousands of dollars of long term liabilities on our credit. And then, on top of that, we have to buy a franchise. Guys, we’re a one-brokerage model, no franchises, no brick and mortar, unless you choose to, which a lot of these eXp teams choose to have a brick and mortar, just other brokerage models don’t have the cloud-based brokerage.

Connor S.:So, yeah. There’s just so many reasons. We could go on and on about why I love this company and why I think it’s just such an incredible opportunity but if you want to sit down with us, reach out to Brant, we’ll sit down, especially if I’m in Houston. And guys, I really think it’s worth 30, 60 minutes of your time because I mean, if you’re watching this and you made it to this point of the podcast, you’re already experienced about what you’re doing. But, if you’re not willing to take 30 to 60 minutes out of your life to sit down and take a look at the fastest-growing real estate brokerage in US history, the first three income stream cloud-based brokerage which is changing the way the industry is compensating and changing lives all across the country, you’re just simply put are not serious about your business and your future and you really don’t deserve the opportunity is kind of how I see it. So, reach out to us, guys. Let’s sit down. Let’s talk about what this can do for you.

Brant:Yup. Our man. Appreciate it.

Connor S.:Yeah, man. Let’s do it. Awesome.

Brant:About to take care of … thanks for watching. Reach out and give us a call. Let’s talk. See if it makes sense for you.

Connor S.:Bye, guys.

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