BLOODHOUNDBLOG.COM

There’s always something to howl about

The Millionaire Real Estate Agent

If I have seen further it is by standing on the shoulders of giants.

- Isaac Newton

First things first – WOW, what a fantastic collection of writers and contributers this blog has! I came to Blodhoundblog to quickly see what had already been written before I started to write my post. I wound up spending over 90 minutes reading every single post, going to each of the links (thank you SO much, Richard for http://www.psychotactics.com/). I am so pleased with Greg’s decision to change the direction of Bloodhoundblog – and I was already happy before the changes. I may not post everyday but I sure will read it every day.

What follows in this post may seem to some like Earl Nightingale meets Buddha - and maybe it is – but I think you are going to like it.

Last week Matt wrote:

I might have missed something in the post, but to say that all listings for the discounter were $299 is probably not correct. “58 X 299 = $17,342.”I see a lot of “Discounters” using low selling price as a tool to get people in the door, or on phone. $299 is usually a no support price…and then they tack on a-la-carte items to raise that price up. True, it will never be full commission, but I doubt all 58 sold for only $299. How would he still be in business only making $17K per quarter?Russell, How hard was it to get to the level you are at today? Many realtors never get to this level, because it is very, very hard. I would bet that it is a lot easier to throw up a bunch of ads, that say you will sell a home for $299, and get a ton on people in your office. It can’t be that hard…

I don’t know how much selling up occurs at his site. But assume he only sells half of the listings he takes and gets paid on twice as many as he closes and manages to up sell every possible option he has – I still don’t like the numbers. I am still saying it is NOT that easy to make money by lowering one’s prices. Please understand I am not saying it can’t be done – just that making money doing it is not easy.

But the question of yours that really caught my eye was, “Russell, How hard was it to get to the level you are at today? Many realtors never get to this level, because it is very, very hard.”

I don’t believe that is even the correct framework for understanding what is involved. To think of it as “hard” or “difficult” is trying to grasp it in terms of how much effort is involved vs. charging less and “getting a lot of business” that way. One of the huge advantages I have over most highly successful Realtors (this year we will take over 600 listings, close over 400 escrows – for over 100 million in volume) is that I was an “ordinary” agent my first twelve years in real estate. My first 12 years I sold between 18 – 24 houses a year. I was heavily in debt, lived from deal to deal and was not exactly happy with my “real estate life”. Compare this to Craig Proctor – who at age 29, his third year in the business, was the number one agent in the world for Re/Max. My first TWELVE YEARS were a struggle. So my perspective about achieving an extremely high level of success isn’t all “book learning”. This understanding has enabled me to not only create a completely stable level of success in my own business but also to share my wisdom on this subject with others and help to make them successful, as well. To get to the level I am at (and there are hundreds of other agents making the kind of money I make or more) isn’t a matter of “difficulty” at all. Does it take a lot of effort and dedication? More than an ordinary person can even imagine. But the work isn’t “hard” – it is almost a non-stop joy, a reward in itself. I smoked for 29 years and quit smoking in 1989. For some years after I quit smoking I would get asked if it was “hard to quit”. My answer was always, “No, it wasn’t hard to quit”. I had a few days of unbelievable cravings (I took off work and spent two days non-stop TALKING about smoking – my wife got to listen to all this). I had about three weeks where I had to have Nicorette gum. But it wasn’t “hard”. I had DECIDED. Now deciding – oh my GOD was that difficult. I “thought about” quitting for TWENTY NINE YEARS. People who get to my level DECIDE to get to this level. There will be numerous times along the way where it will seem right to “coast” – I did for three years at 60 deals a year, again at 130 deals (2 years there), again at 200 deals a year (3 years at that level). You get the idea. The operative word here is: DRIVE. It isn’t “hard”, it requires drive. The person has to really want it.

What I know now is that every person has a “set point” for just about everything. On any subject there is a certain amount of “X”that is considered “good”. Any amount less than “that amount” is not enough. Any amount over that amount is too much. Although this concept applies to anything; motion, speed, food, sex, free time, affection, etc – I’ll use the example of money. There is a certain amount of savings, for example, that is “right” for a person. Less than that amount and they must get it back up to the correct level. More than that and they feel like they have “a surplus” and will find a way to get rid of it. Same with income – make less than the “right amount” and the person will find a way to get their income back up to that “correct amount”. For some years the amount of money I was “allowed” (by myself) to keep was a minus number. As you can imagine, this made for some very interesting checkbook balancing from time to time. So the first “rule” to know if one intends to change the amount of money they will earn or have would be for the person to change their ideas about “how much they need”. Many people may think of this as “positive thinking” – but it is the VITAL first step and can not be omitted.

Here is a link to a positively wonderful short video that a friend sent to me. It is called 212 degrees. Please turn your sound on and take a few minutes to enjoy it.

There is also a movie out on DVD called “The Secret“. You can watch it on line for about $5 or order the DVD for $30. If you have not experienced it you are missing out on something quite special.

A truly key point is covered in the following, and if you understand and grasp it – you will never see your business potential the same again.

Excerpt from policy letter 28 Aug 1973, Organization Executive Course, Volume 7:

WHAT DETERMINES STATS

“It is also true that the volume an organization handles is NOT dependent upon public demand. The volume it gets and handles is solely determined by its internal organization. This sounds so strange that many an Executive Director has had great trouble until he believed and and used it. You can always internally shoot the stats up and keep them up. It is THAT, across all divisions, which determines the volume an organization gets and handles. This is sometimes hard to teach people but once they see the results of it they become converts to that principal —- that it is internal, not external actions that determine stats.”

- L. Ron Hubbard

So long as I believed (my first 12 years in real estate) that “the market” had something to do with my income I was like a cork floating in the ocean – my destiny controlled by forces that were – for the most part – completely out of my control. What I know now is that agents who are “geared up” for 50 – 60 deals a year are not going to do much more than that. They may have little spikes up here and there but they will get it “back to normal” quite soon – whatever it takes to accomplish that.

In Gary Keller’s outstanding book, “The Millionaire Real Estate Agent” this (although not stated explicitly like above with the Hubbard quote) is covered in the correct sequence for hiring assistants. Any real estate agent who plans on ever moving past “having a job” into having a business needs to read this book. At least twice.

It is not just the most important book ever written on the subject – it is the only book ever written on the subject. Imagine if you could get author, Michael Gerber, “The E-Myth Revisited” to stop by and write up for you what to do in your business to build it up into a stable operation so you would not ever have a problem that money would solve. The proceeding sentence is my book review for The Millionaire
Real Estate Agent (known to affectionados as the “MREA”).

To get to the next level (life is improved on a gradient) your organization would need to be set up for actually handling the level of business you want to do. This, of course, would include promotion. Advertising and marketing would not be for the level you are doing now – but for the level you plan to do. If, for example, you did not have an assistant (then you factually ARE one) to do “all the little things” for you – the growth ceiling is to some degree set right there.

The MREA, which was on the Business Week best seller list for over a year, features numerous quotes from me and they featured me in the book, along with about a dozen other top agents in the United States. Vice President of Keller Williams International, Dave Jenks, along with a camera crew, flew from Austin to Phoenix and came to my office (currently a building attached to my home) and spent a day here filming me and my staff. It was the first video they ever did of a mega producer. It was and still is used to train KW agents at their KW Mega Camp. Their video production techniques are SO much better now but that crude video is still used today and I get told (by KW agents and brokers) it is still the one they like the most. Why am I telling you this? There are KW agents whose incomes dwarf mine. They have direct access to some of the most successful agents in the world. The year they interviewed me for the book we closed just a bit over 50,000,000 in volume. Respectable, sure. But not amazing “world class”. The year in question was 2001. I wasn’t here much that year. I was diagnosed in July of 2001 with bladder cancer. I had an aggressive stage 3 tumor in the bladder wall. The urologist wanted to (was insisting on) completely removing my bladder and my prostate. The Mayo Clinic would not accept me as a chemo patient – they would only accept me I would agree to have my bladder removed. I decided I would rather not have this body than have that kind of life. I wound up with a nut for my oncologist (her main nurse was an angel), I had a wonderful surgeon – had three surgeries and I spent nine months traveling to Los Angles once a week for Scientology counseling to get rid of the grief and “deathfulness”. I was physically in Phoenix about 3 days a week and with the chemo I could actually do “real work” in my office about 6 -7 hours a week. I was unable to go on listing appointments anymore (I tried it but would space out so much while talking to them it was kind of pointless).

That year we had the best year (at that time) we had ever had. My business went UP with me GONE. As the MREA was all about systems, they liked mine. And there is nothing I do that can not be replicated by anyone who wants to move up. Nothing. My most recent spectacular success is the top agent in Tucson – in business less than three years and they will close about 75,000,000 this year.

I am totally cancer free – have been “officially” since March of 2002. At the time I even bought myself a Porsche to celebrate (yes, of course it was a 911 convertible. Yes, of course I had to have supercharger added to it later:-).

And I have exactly the same attitude towards helping agents “break through” any barriers they may have between themselves and the success they desire as I do about giving a cancer patient a “lift”. Attitude is EVERYTHING. Everything.

Please read this book:

MREA

Related posts:
  • Is the Goal is to Have a Big Team?
  • Facebook Works If You Work It. If You Won’t Work It, Just Play Farmville
  • Maybe We Need More Salaried Agents

  • 17 comments

    17 Comments so far

    1. Benjamin November 30th, 2006 5:53 am

      Hey Russell…

      Too funny – I was just going to email you on this exact topic.
      Yesterday I had the honour of joining Gene Rivers (ringtherivers.com) for breakfast. Gene was in town to give a half day workshop to my KW office on implementing the MREA models.
      While I was re-reading the book, I came across your name, and flipped to the back, and there was your profile! Pretty neat eh.

      Anyways, for those reading this, go out and buy MREA. It’s the definitive tome for success in Real Estate.

      Benjamin
      http://www.benjaminbach.com

    2. Jeff Brown November 30th, 2006 11:35 am

      Russell – Although we come from vastly different belief systems, we’ve ended up believing the same things. You are definately the guy I pegged you for.

      You hit it over the fence and outa da park!

      Nothing, but nothing happens in the world without first happening in someone’s mind first. And you my friend are sporting a “world class” mind indeed.

      Phenomenal post – maybe the best of 2006.

    3. Athol Kay November 30th, 2006 12:43 pm

      It’s a great book. The most important point I got from it is the need to create leads endlessly no matter how busy you are. Leads leads leads. I’m looking forward to the hiring people part ;-)

    4. Trevor Smith December 1st, 2006 7:06 pm

      Russell,

      Truly great post. Personally, I cannot stand L Ron Hubbard and his Scientology garbage, but this quote fit well. Good insights, you have a great business mind.

    5. The Real Estate Tomato December 4th, 2006 2:00 am

      Carnival Of Marketing, Something Different

      Welcome to the December 4, 2006 edition of Carnival of Marketing. Normally the majority of the audience that either subscribes to, or uncovers the Real Estate Tomato is interested or involved in the real estate industry. In an effort to expand not only…

    6. John C December 4th, 2006 10:05 pm

      You had me until you quoted L. Ron Hubbard.

      There are so many other inspirational thinkers out there, why select a con man? Yikes. I was really enjoying the post up until then. Thanks, John

    7. the Property Monger » The Hangover December 5th, 2006 12:20 pm

      [...] Russell Shaw, the first recent addition to the Bloodhound gang, writes from his experience that the market has a lot less to do with what you earn, than you think. [...]

    8. [...] Russell Shaw: The Millionaire Real Estate Agent. [...]

    9. Kieran Rodgers February 19th, 2007 10:54 am

      Unbelievable book, my name is Kieran Rodgers and after reading this book, I made some steps to increase my sales, handle my goals differently. This book was motivational, taught me so much. People say think outside the box, who ever made the box is my question. I do commercial loans, business brokerage and I am in love with the industry. I am currently top producer right now, I am also 23 years old! So thanks for the kick in the ass !

    10. dinkydinkydo April 28th, 2007 6:52 am

      I found your post quite exciting.

      I had been a single mom for many years and had a whole “polyanna” view of the world until I hit real estate. I am now a granny and wife to a great guy.

      I thought a handshake meant something. A person’s word was a badge of honor. I guess being a country girl put a whole different prospect on the real world.

      I have the MREA and put it down and then pick it up over and over. Now, I will pick it up again.

      There is a mad zoo of animals out there that will take everything you have and not blink, how do they sleep?

      Assisting a consumer in their real estate efforts is not difficult but creating an umbrella of security is nerve-wracking. This extends from the lender to the home inspector to the appraiser. Any of these practitioners can be pocketed for the right amount of money.

      A daily errand ran me into a young couple who had been “had” by bad guys have become my friends. Mr Buyer serves our country and she takes care of the 3 young children. Their desire to purchase a home led them to the bad guys. To make a story short, their home was purchased at $80k over actual value which led them to shortsaling their home. From the RE broker to the lender to the appraiser, all 3 professional fields in RE took this young couple to the cleaners. They are now struggling to get out of the mess. The devastation has led to huge marital disputes, needless to say, and the list goes on.

      I hear nightmares all the time. I try to maternally aid each client in the concern as human and professional realtor. My heart hurts but it also causes me to whip out the old armor and umbrella their environment. YUPPERS, I am a private advocate for the underdog and abused real estate victims.

      Recently, Colorado passed the requirement for all lenders to be licensed to hopefully eliminate the bad guys. Is there a public rubber bullet firing squad anywhere?

      I love this profession. I am great at being a Realtor. BTW, I know when to not have the victims’ emotions interfere with my position as their representation. It is funny how human greed throughout this industry can ruin one family after another.

      So, please share your stories with me and advise me on any aspects that you feel could strengthen my success and future in Real Estate.

    11. Jason Fox August 18th, 2007 3:54 am

      Truly great info! The Secret was a great dvd but I don’t believe that quote was in the movie. Was it from the CD’s they also sell?

    12. Andrew Masters September 20th, 2007 12:26 pm

      I to found you’re advice quite helpfull. I will be picking the book up today.
      I myself am brand new to the game, getting my license just today in fact.
      I am so anxious to get going, what are the essential first steps for a “newbie” in the business?

    13. [...] with divergent ideas. Greg Swann scoffs at the Chokepoint Charlies and Brian Brady worships at the altar of Keller & Jenks. Jeff Brown will beg you to evangelize while Sean Purcell encourages a more holistic approach to [...]

    14. Hunter Jackson June 23rd, 2008 11:23 am

      We do miss russell. I have not read that book yet, and was searching for info about it, and now I ended back up on bloodhound…imagine that! All you need, all in one place!

    15. [...] social media and “building a fence around that herd” through the system outlined in the Millionaire Real Estate Agent.  If you’re in “my herd” you’ll recognize my e-mails, radio shows, blog [...]

    16. Art Sobczak October 29th, 2008 7:25 am

      Can someone help me with a quote that is in Gary Keller’s book? I have it ordered but could use the quote now…something about how you can’t control the market but you can control yourself…I’m not in real estate other than owning a bunch of it, but I understand the book is applicable to all sales, and life in general.

    17. [...] Shaw has mentioned the film The Secret a couple of times. Cathy bought the DVD, and we took the time to watch it tonight. As an expression of the [...]