PODCAST
Attention Real Estate Agents and Brokers — This Cloud Based Real Estate Brokerage is the Path to Residual Income
Episode 14:
Mike Powell is a creative real estate investor from San Antonio, Tx. He began selling commercial real estate in his early twenties to put himself through college at Texas A&M.
His goal was to make his first million by age thirty. He smashed that goal. Today he specializes in finding private lenders, seller financing, and buying self-storage facilities.
Mike continues to grow substantially year after year and attributes his success to God and his endless desire to keep learning and improving. He says, “I am a reflection of the mentors in my life”.
Tim Macy is an Air Force Veteran and Real Estate Investor. He is a licensed agent with eXp Realty and leader of the Terrell-Macy Group. Tim and his partner Emily bring a unique product to the San Antonio real estate market, offering investors an investor friendly team while providing all of the great marketing and sales of a retail team. Tim is experienced in renovations, rentals, REOs, auctions, owner finance, and many other types of transactions.
What you’ll learn about in this episode:
- What eXp is and how it’s changing the game
- How using a cloud based real estate brokerage will save YOU time
- The training that eXp provides and why it’s better than traditional brokerage training
- Why eXp is simply a financially superior solution to your brokerage needs — both now and in the future
- How eXp’s revenue sharing system rewards mentorship
- How eXp eliminates a lot of overhead for brokers and allows them to have many more agents underneath them
- The physical office spaces that eXp offers when needed
- Why Mike and Tim can’t imagine going back to the old way
- Why eXp truly is for everyone
- Why you won’t have any problems with eXp when it comes to protecting your brand
- The great success rates Mike and Tim have seen when selling people on joining eXp
- The great CRM you get to use with eXp
- The financial numbers you need to know about eXp
Resources:
Transcript:
Mitch: This is Mitch. Yes, indeed. Your all-knowing and gracious host, you believe that? [LAUGHTER]
Hey, we’ve got some special guests on today. I have Mike Powell and Tim Macy, and they’re gonna talk to us about eXp. What the heck is eXp? Let me tell you. There is a new cloud based real estate brokerage that is agent owned and is taking over the country by storm and, if you are tired doing the business the old way, there is a new way in town. They are going to tell us how they are taking advantage of it. And with no further ado, let’s get on with the Real Estate Investor Summit Podcast, with Mike Powell, Tim Macy and eXp.
Hey, Mike. How is it going?
Mike: Good, Mitch. How about yourself?
Mitch: I am doing great. Tim, how are you?
Tim: Not too bad. It is a good morning here, happy to be on.
Mitch: You know, I am not a real estate agent or a broker. So, this didn’t really affect me that much. But, I have so many people and so many friends that I know that are agents and brokers, and when I heard what you are doing and what the concept is about, I said, “You know, I’m just gonna have to do a community podcast here and just put the word out here”. I have no stake in the game. I don’t — it doesn’t matter to me whether you go one way or the other but, I just thought it was a tremendous opportunity for agents. I want to let you guys explain it. So, tell us, what is eXp?
Mike: Well, as you said Mitch, eXp is the first agent owned and cloud based real estate brokerage. So, what that means is we are not a brick and mortar brokerage. It is all based off the cloud, obviously on a computer, so you can run your entire real estate business through this cloud.
Mitch: Do I hear this kind of like, the Uber of real estate? It’s gonna change the way things are done in real estate?
Tim: I know for Mike and I, we were — Mike’s been at far more brokerages than I have. But, we looked at eXp, and we sat down and we really look at, we just realized it was a smarter way to do brokerage. Kind of like when you take your first Uber ride, you realized it is the smarter way to get a ride somewhere. eXp has just eliminated a lot of the things that I never really used in brokerage anyways.
Mitch: Okay. So, how’s your experience using this technology? How’s it has been?
Mike: Well, Mitch. When I started 10 years ago, everybody came into the office because there wasn’t any of the technology, you know — e-sign and all that kind of stuff — everybody came into your office. When we don’t need the brick and mortar because of how great the technology has gotten with e-signatures and all the MLS data that you can get. Everything you can do on a computer, eliminates the need for brick and mortar. So, the technology has been amazing, and then, if we ever need help with the technology, eXp has phenomenal staff. You call them, they can log into your computer and help you with technology right then and there.
Mitch: Well, don’t you miss having a physical broker, though? I mean, some guy that you can run to or talk to or give you advice. How does that work?
Mike: Well, because it is an agent owned brokerage, Mitch, there is a brokerage you can call, you know, anytime you want with eXp. And there’s also other staff members that can help. But, there’s also other brokerages that are part of eXp that are more than willing to help because it’s a big team. And they really believe in that concept, in helping each other out, and growing the brand. Purely, a broker — they’re only a phone call away. You can call somebody with more experience than you or another broker, or you can call an actual eXp broker.
Tim: I found the support at eXp, as far as the brokerage, has been far more than I received at previous brokerages, just because the person that I call, the person that I email all my problems, that’s all she does is handle, you know, problems coming in. Whereas, my previous broker, may be out trying to do some deals himself, may be out meeting with somebody or maybe he is in his office with his other 30 agents he has, and so, his time wasn’t always readily available. Where eXp has people that is just dedicated to answering your questions whenever you need them to.
Mike: And you’re giving that broker a whole lot more money than you are giving to eXp.
Tim: There you go.
Mitch: We’ll get to the commissions splits in a second, but, I want us — to make sure see some of the benefits because, the other thing that I noticed right off the bat was, because this is a cloud based real estate brokerage, the training is always the same for everybody. And the training is online and the broker doesn’t have to worry about training people now. So, in a way this is good for the broker, too, because he is not having to spend his time training people. Did I get that, right?
Mike: Exactly, Mitch. It really benefits the agents more than anybody because it is all online. If you are a new agent and you join, there’s lots of training that these other brokerages wants you to go physically sit in. And, as a self-employed person, it is very hard to sit in meetings 3 and 4 times a week when you know you should be out pounding the pavements, trying to drum up business. So, with all the trainings and all that kind of stuff, you know, online, it not only frees up the broker but it allows the agent to watch the training after dinner, or on their lunch hour, or if they are waiting for a client. They can log in and watch these trainings anytime rather than having to, you know, go to a meeting at a certain time, a certain part of the day and wait on somebody else, and all that kind of stuff.
Mitch: Mike, that frees everybody up. Frees the broker, frees the agent up, every one works it into their own schedule. And, what I really like about it is, it is super consistent. You know, because that training video doesn’t change.
Mike: Exactly.
Mitch: You know. I like that part. So Tim, what are your comments about the training?
Tim: So, for me, I found the training to be very high quality, because this training they’re developing is for the entire brokerage. Whereas, a lot of the times, you know, your broker will pay somebody to come in and give a training or you’ll have to pay for somebody to give a training. And, when you can leverage the cloud, you can provide better training at a much lower price. I mean, all the training at eXp is included in a small yearly tuition fee, so you’re not paying $50 every time someone goes and gives the class on social media or something. I mean, it is all there.
And the other thing, Mike was saying, it is very convenient that you can do them whenever you feel like. But, there’s also live training online, which some people need a little bit more of an interactive training. And the live webinars are great, where — I mean, Mitch you’ve done them, where like you can have a student or agent asking questions during the training, so, you’re not just sitting there watching a video. There are great interactive online trainings that you can do where you can actually interact with the trainer. You don’t lose that personal feel just because you are doing it remotely.
Mitch: Well, as a matter of fact, I do have a coaching-mentoring group, coaching Q&A every Tuesday night, and I’ve been doing it for 5 years. And, I’ve, you know, I know how effective it is. I’ve watched people change their lives, quit their jobs, fire their bosses, and so, I know exactly what you are talking about. And it is an effective way to train people or to get educated. I’m living proof, and I see it — I’ve seen it with my own two eyes and so, I know that that works.
Mike, how has eXp changed your business?
Mike: Well, Mitch, it’s changed mine tremendously in a couple of different ways. The biggest thing is that the technology is really, really good, and this is something that I want Tim to touch on. It’s got a system called Conversion, and it is for your leads and CRM and all that kind of stuff to help you keep track of your buyers, sellers, new leads. You know, if somebody plans on selling in 6 months, you can put in and it’ll keep track and have you give him a call and hit him up for a listing or whatever it may be at the right time. Another thing for me is, a lot of brokerages want you to help recruit, but they want to give you next to nothing for doing it. They wanna give you 10% of their first three commissions or something like that for recruiting somebody to their brokerage, so they can sit there and make a ton of money on them for the next 5 years. Well, with eXp, they’ve got a profit sharing program where you bring people in and you get a piece of every commission they ever do. So,–
Mitch: “Ever do.” So, you bring someone in, and they do one or two deals, say, like in 2 years from now, they’re still doing deals, you’re still getting a piece of their transaction?
Mike: Exactly. And it can amount to a good amount of money. And so, for me, it’s excellent. Because I deal with so many agents, all day, every day, on the investing side, I’ve been able to recruit and bring on a lot of really good agents under me that have gotten me paid out on a monthly — I get my monies deposited into my account every month that’s kept track of and it tells me who sold what and how much., and put some money straight in my account.
Mitch: Okay. So, Tim, let’s say that you are an agent, and you go get someone — you go get Mike under you. Mike goes and gets someone — Do you get a piece of that?
Tim: Yeah, you do. And this is an objection, right? I hear from a lot of agents. Because, of the revenue share program, there’s a lot of really salesy people out there pushing eXp, which Mike and I are not like — we’re pretty honest guys when we present this stuff. We don’t try to oversell it. What people will say is, “Ah, a pyramid!”, right? And, what I always say is, look, when you were at your previous brokerage, right, and you paid that 70/30 or that 60/40, and that split, where did it go? It went to your broker, right? And your broker drove a Porsche, and had a big house and he had this beautiful office, and he has someone come clean it twice a week, and all this other stuff. When you’re at eXp, you know that your 80/20 split, which is 80/20, which is a pretty good split, your twenty is going towards better technology, it is going to another agents. So, me personally, I’d rather have that happen. When you are talking about recruiting and if Mike brings on an agent, you can rev share up to 7 levels. So, it’s great to see —
Mitch: Seven levels. Let me get this straight, Tim. I don’t mean to interrupt you, but, you said 7 levels. So, that means, you get Mike. So, you have a piece of Mike. But, Mike gets somebody. But, you get a piece of that guy. And that somebody gets somebody, and it goes down 7 levels?
Tim: Seven levels, yeah.
Mitch: Okay. Wow. That’s tremendous. That can be huge in no time, exponential.
Tim: The reason why it makes sense, right? Like, if somebody’s selling a guava shake that doesn’t really do anything and it is overpriced but there’s this big revenue share thing. To me, that doesn’t always makes sense. This makes sense, because I’ve helped agents come on, and I’ve helped them out and I’ve watched them go be successful where I’ve gotten zero percent of their success after they leave. I’m sure you’ve done that on the investment side. I mean, we’ve all helped people out and gone and seen them be successful with the knowledge that we gave them. And I kind of believe that, if there was a way, we should get some cut of that. So, with this, I am encouraged to bring an agent on, to get that agent successful, and then to have that agent go and build a team and build a business just like I have. So, it incentivizes the right kind of mentoring and training, as opposed to the traditional brokerage, which is you train somebody, get them successful and then, you know, try to make as much off them as you can and hope they don’t leave.
Mitch: Well, man, I’ve got just a plethora of questions now, because, or observations I might say. For one, let me say, I have trained a ton of people that, once they’ve figured it out and I’ve got them going, they left me. And, I never received any benefit from all the work that I did. Some of them left quite early, which was disappointing for me. So, if you signed someone up, it doesn’t matter where they go in the world, there still under you, right?
Tim: Well, we talk about at eXp it’s like we have agent ownership, right? We have this revenue share. So, I actually signed up under Mike, and I have a couple of agents under me. He has a couple of agents under him. I already have revenue share. I already have stock, which has doubled in the last 3 months. I’m already invested in eXp, like I would be leaving a lot on the table if I were to go elsewhere. So, I may leave Mike, I may — which I’m not going to — but I may stop working with Mike in the future, but I’m not gonna leave eXp, right? I’m already invested in eXp. I have monthly income coming from eXp. I already have stock in eXp. So, I can leave Mike and go do my own thing, but I’m always in his downline and he’s always got a rev share off of my business.
Mitch: Okay, great. Then, I also have this other observation, because it sounds like, on the surface, this is very detrimental to a broker. But, then I start to realize, this could be better for a broker than it is now. Because, and tell me if I am wrong, Mike — Brokers, now, have to bring on agents, be responsible for training them, have to answer all their questions, and all the brokers’ time gets sucked up taking care of these agents. And he doesn’t have time to go out and do deals himself. And I am getting this sense that, with eXp, brokers could kind of change the way that they think about their business. They could go and get a whole bunch of people signed up. Like, man, it seems to me like, if I was a broker, I would get all my agents in a room and say, “Look, we’re all going to eXp, I am signed up right here. You guys sign up under me, like you are under me now. And, let us start recruiting people, and by the way, don’t ask me about training anymore. Go over here and when you’ve got questions about the law or whatever, you can go over there and all of a sudden, this broker’s freed up and he still getting a cut of everybody. He is letting his agents make more but he could sign up a multitude more agents under him and not increase his workload. Am I right about this?
Mike: You’re exactly right, Mitch. But, that’s just the tip of the iceberg. You know, a brokerage can have some really high overhead between the brick and mortar, the secretary, the phone lines, you know, all of the overhead they have can get scary, especially in a down market. You know, in a down market, people aren’t selling, brokers don’t make as much money, so, we have that to consider. Because, the way that technology is doing, you won’t need the brick and mortar. Banks are going to online banking. I mean, they are shutting buildings down left and right, you know, like what we are talking about.
Mitch: This is a super important point. Because, in the good times, you’re ramping up your office, you’re getting bigger space, you’re adding more secretaries or peripheral people, and, then all of a sudden, you’ve got this big machine going and then, here comes the down turn. You know, you can’t just break those leases. You can’t just fire all those people, you know.
Mike: You know, he’s gonna hold on for dear life. [LAUGHTER]
Mitch: Yeah. So, if you are not doing a brick and mortar business and you’re doing a virtual business via the cloud, everybody’s — you know, you don’t need the phone lines, you don’t need the rents, you don’t need to expand the copier room, and the break room, and the lobby and all that stuff. You just have a virtual office. And there’s a plenty of places to meet, right? I mean, there is no substitution for meeting face to face with your customers and stuff, but where do people go when they want to do that?
Mike: We are affiliated with the Regus Offices. Have you ever heard of them, Mitch?
Mitch: Is that like the office spaces that you can — what you call, that you can rent?
Mike: eXp has a deal that we can go to any Regus facility in town and go in there and use an office space and get a work room, if we need, or a private room or a conference room, or whatever it may be. So, we have access to offices. I haven’t had to use a room, most of my clients just want to sign, get it done on their iPad sitting at home and drinking a cup of coffee. So, if I did have to meet with them, I would go to Regus, though.
Tim: I do conference calls and screen shares. So, I go over CMA’s and Market Analysis with my clients, and it’s much better, I think, than having them in an office, looking at a small screen, you know, and pushing the screen back and forth. And I’ve used the Regus offices for a team meeting. We use their shared space, so, for free, you have access to their shared space and you can use any of them and there’s thousands of them. But, I always meet people at houses. That’s what we’re in the business of. We’re not in the business of coffee and snacks. We’re in the business of houses, so whenever I meet somebody, it’s to look at a house and we go to the house, and when we are at the house, we talk to them. I don’t really need an office. I will say we do have meetings, not that they have to go them. But meetings the eXp way are my favorite, because we just had our Texas meeting yesterday morning.
And so, I was at my house, my wife brought me breakfast. I am drinking my coffee. My daughter’s, you know, in the same room, I’m watching her play, all the while sitting in the meeting in the cloud and talking about what we have been going on. I’m not stuck in traffic. I didn’t have to put my suit and tie on. I didn’t have to find a parking spot. I didn’t have to go sit at a desk and look at a PowerPoint. I am at home, getting work done, while I am in a meeting. To me, I could never imagine going back to the old way.
Mitch: Wow. Incredible. It is the Uber of real estate. It’s gonna change everything. And that’s the world we live in; it’s changing every minute. So, my advice to people is, try to get on early instead of later, because, right now there’s a whole lot of people that don’t know about eXp. So, there’s a lot of low hanging fruit there, if you want to recruit some people. Who would you recommend join, Mike?
Mike: I would recommend anybody. Obviously, with the profit sharing program, you’re gonna make money on the people who are well established and sell a lot of homes. However, I think it’s a good deal for anybody. I’ve been into a lot of different brokerages and this is, by far, my favorite. It’s the cheapest to be at, month to month. It’s just — everything about it is phenomenal. And so, I would recommend it for anybody. If you’re a brand new agent, the training is there, everything that you need is there. If you’re a well-established agent, everything you need is there. So, whoever is getting into real estate as a realtor, I would highly recommend eXp.
Tim: I’d also say to the brokers and the team leaders out there, you know, your brand name that you built is important, right? When we talk to brokers, when we talk to team leaders, or kind of going over their business and what that look like with eXp, I mean, everything seems to connect. But, they’re always hung up on control. Right? Like, it’s their company, they’re not gonna move over to someone else. But, if you look at our website, terrellmacygroup.com, you can see our team site and there’s no, like, eXp control on it. We are the Terrell Macy Group powered by eXp. They let us do whatever we want really with our brand, and not stopped us from branding. There’s never been a, “Hey, you need to make the eXp logo bigger”. We have full control over what they let us do, where our team marketing lies. It’s really the control thing is definitely, usually, a personal thing, not a business thing. And I would’ve loved see a lot more team leaders and brokers give up control, put themselves into a system that’s already built; they don’t have to build a new one, and use it. I mean, it’s just a better way to do things.
Mitch: So, have you had brokers go over and convert their whole team to this cloud based real estate brokerage, yet?
Tim: We’ve had some team leaders come over and bring ten or eleven people. I know there are some brokers that are in the process of moving, but that’s kind of “hush-hush”, because it is a larger deal, so nobody wants to talk about it. But, there are some bigger brokers that are in the works, making their move over to eXp.
Mitch: Okay. So, I’ve heard that you guys are out recruiting people for eXp, obviously that’s why we’re here, but, I also heard that you have great conversion rates, I mean. You know, when I’m talking to Mike, you guys are getting a lot of yes’s and the only no’s you’re really getting are people that are emotionally tied to their brokers. Their brokers are their best friends or something, and they have a little trouble leaving because of the allegiance they have. And, you know, they try to win the broker over to come, but, you guys are having a tremendous success rate, right, with yes’s. People saying yes to this, right?
Mike: Definitely, Mitch. It’s funny, because you don’t have to really sell the product; it sells itself. Anybody who’s been in it a while, has been in a couple of different brokerages, or even been in one brokerage and sees the model, they understand it really, really, really quickly, and it’s a no brainer, so, it’s very easily sold on its own. You don’t have to push it real hard.
Tim: It’s kind of like Uber gives their first ride free, right? Just so a rider can experience it and realize that it’s much better than taking a cab. And, it’s the same thing with eXp. Once we kind of show the ins and outs of it and what it is, it’s just the smarter way to do brokerage. And people tend to see that, and converting is not too hard.
Mitch: I know most of the people in the real estate business are supposed to be sales people, but some of them don’t feel comfortable in this sales capacity. Do you have a push and play that they can just push something and show it to the agent they’re trying to recruit?
Tim: Yeah. Most areas have, you know, informational sessions that you can bring people to. So, even if you don’t wanna sell it, you just say, “Hey, if you wanna learn more, just meet me at this place for lunch”, and there’s usually informational sessions in most areas. There’s plenty of content on the web in videos that you can show to bring somebody through what’s involved in eXp. And I think we’ll put a link in the show notes where anybody interested can go check it out. But, overall, Mike and I don’t oversell this thing. We may sound a little salesy on the podcast right now. But, honestly, we really just show people what it is. And it just makes more sense like technology is disrupting everything, and this is just one way, I think, that it is a smarter way to do real estate.
Mitch: So, Tim, I think we’ve covered most of the technology side. Is there anything else we need to know about technology before we move on to the revenue sharing topic?
Tim: Well, Mike touched on it, and one of the most powerful tools that you get when you join eXp is Conversion, which is a CRM. And, CRMs are customer relations management tools that keep track of all your leads that come in. I mean, if you guys are doing off market stuff, you need to have a central system that keeps track all of your leads. Well, it’s the same thing on the retail side with Conversion. It’s keeping track of your buyers and sellers. But, it is not just keeping track of them, it is sending out your automated drip campaigns, right. So, my wife is on my Conversion — I send her houses all the time, even though, I’m not actually sending her houses, Conversion is sending her houses. And then, if she looks at a house, Conversion will send me a text and say, “Hey, you know, so and so has looked at this house six times in the last week.”
So, I should call them and say, “Hey, do you wanna go see 123 Main Street?” So, it’s very smart and intuitive, and it makes you seem like you’re doing a lot more work than you actually are when you’re sending out emails and text. And Conversion has studied the best drip campaigns, and they’ve put them into action for you. So, you don’t have to build the drip campaigns; the best ones that they’ve found in their research are already there, and they’re just waiting for you to learn how to use them.
Mitch: Well, that’s incredible. So, you’re saying, like, if someone goes and looks at your house online, you get notified that, you know, “Mr. Smith is looking at house at 123 Main Street”. And then, you get to see that he keeps going back to that house, and you keep getting notified, and say, “Maybe, I need to call Mr. Smith and get him to see the inside of this house in person, because he’s sure is interested in this house”. And that’s an incredible advantage.
Tim: It actually does a little bit more than that. When somebody looks at a house, it’s gonna schedule the phone call for you. So, you’ll gonna wake up in the morning, and it’s gonna say, “Hey, you’ve got three calls to make”. And then you’re gonna click on Call No.1, and it’s gonna say, “Mr. So and So has looked at these 8 houses in this price range and they’ve looked at this one this many times”. It’s actually going to tell you who to call. You don’t even have to worry about that.
Mitch: That is incredible. That’s got to up your sales. I mean, it just has to.
Tim: It does. But, it’s just like anything else, you have to put the effort in to really learn the system and learn how to use it. It does a lot and there is a little bit of a learning curve, but that is what’s so great with eXp is that all the training is there. I mean, there’s hours and hours of Conversion training. So, you can become an expert in Conversion, and leverage that to really build your business. The thing I wanted to get to, because Mike and I try to stay away from dealing with buyers per se, right? We really try to focus on investment properties, but we also want to monetize everything that we can. If you can monetize your knowledge, if you can monetize your leads and however you can do it, you need to do it.
So, we’ve found a great way to monetize our relationships with our agents through recruiting, but we also have listings. I mean, Mike and I have a couple of houses that we flipped here. And our signs are in front of the houses. So, people can text the number on the sign for more information. Well, that lead goes right into Conversion, then I can pre-qualify that lead, I can have an assistant pre-qualify that lead. And then, I can give that buyer lead, that strong buyer lead to another agent, and now, I’m getting referrals. So, before, I’d have a sign in the yard, and I was getting annoyed with buyer phone calls, because I don’t really want them. Now, I’m monetizing those phone calls from our listings.
Mitch: Wow. That’s incredible, I am glad I asked if there was more to know, because that was a big piece right there. Now, before we go, I just wanted to re-visit, you know, the benefits, the financial benefits of eXp, one time and maybe you can give us some contact information. Give us the basics of the revenue share.
Mike: The first thing is that eXp doesn’t nickel and dime to death. I’ve been at brokerages where, you know, they charge you for every single piece of paper you use, for office equipment, for a telephone that you never use. They nickel and dime you to where your office bills can get really high. With eXp, you pay $50 a month for the cloud, which is phenomenal. You know, $50 a month is nothing in a business like this. So, that’s a big financial advantage, and the other one is the commissions splits. Now, the first brokerage I was at, I had to give 50% of my first commission away, and so, it was very hard to make any money when you have given half of your income straight to your broker right off the bat. Then, there were ways to work up to better commissions splits, but the put stuff so far out of the reach, it was hard to achieve. So, with eXp, you start off at a 80/20, and you stay at a 80/20 until you hit your cap. And I believe the cap is $16,000, Tim?
Tim: Yeah. It’s $16,000, which ends up being about 2.5, I think, in sales.
Mike: $2.5 million in sales, Mitch, which is not very much at all. A decent realtor does that — usually, will cap out within the first couple of months to the first 6 months. You know, a lot of other brokerages have much higher splits and much higher cap rates. And, the beautiful part with eXp is with the revenue share, you have a chance to make that $16,000 back based off your revenue share. You can make your $16,000 and a lot more back. So, really, you could be at a close to 100% deal pretty easy. And, so, you can get a little piece of that revenue share we talked about earlier that can add up to a lot every month, and it wouldn’t feel like you’re giving them anything on your 80/20 split.
Mitch: Yeah. I happen to know, personally, from talking to you, that your first commission split, was — your commission was $30,000 and you had to give $15,000 of it up. A home run on your first deal, and you had to give up 50% of it.
Mike: Well, what happened was, I actually owed a — because I was brand new, I was 20 years old — I owed some office fees; they gave me 3 months for free so I could get rolling. So, I had to pay all those office fees. So, I actually wound up with about $13,000, when it was all said and done, and I wanted to cry.
Mitch: Wow. What a difference that would have made, huh?
Mike: Yes.
Mitch: Okay. And so, in the revenue shares, it’s what you get when you recruit other agents and they sign up under you and you get a piece of their action. You know a little piece of everybody’s action, forever. And that is a tremendous upside. I just don’t see any downside to this, unless you’re just really a person that wants to put on a suit and tie and go to an office every day. So, how do people get a hold of you to learn more about the revenue share or to get more involved?
Mike: Well, they can call me, Mitch, and I can send them some videos and some other stuff, and personally talk to them about how it’s changed my business and changed Tim and I’s life. They can call me at 210-556-4144.
Mitch: That’s 210-556-4144. And ask for Mike Powell. He’ll get you the information you need. I just wanna ask one last question before we go. How cool is it to get those revenue share checks every month?
Mike: It’s funny, Mitch, because I didn’t even see the first couple that came in. They automatically deposited into your account and I didn’t realize it until the third month. My wife said, “Hey, this company keeps putting money in our account. Do you know what it is for?”.
Mike, Mitch and Tim: [LAUGHTER]
Mitch: What about you, Tim? How is it going for you?
Tim: I know for me, it is like I am out here trying to find rental properties or owner financed deals.
Mitch: You’re more of an investor, you and Mike focus more on the investor side. But, when you saw eXp – this new cloud based real estate brokerage – you just recognized the potential, because you’re meeting agents everyday in your career. Every day you’re meeting them, right?
Tim: Yeah. When I get a $600-700 check in, and that’s just being here for a couple of months now. I mean, Mike and I have not been at eXp too long, and we’re already getting pretty substantial checks. You know, that’s two rental properties, which I don’t have to own and manage. You know, the income that comes in from the revenue share, when you have agents out there that are performing is substantial. And, you know, we’re obviously still gonna buy owner financed, we’re still gonna do our investing. But, to have that other income stream coming in is fantastic. I mean, our vacations will be much better next year as a result of our eXp rev share.
Mitch: Yeah, well. Just multiple streams of revenue, it’s what they teach. And this is a great way to get a really passive residual revenue stream. So, I think it’s a great idea, I think it’s worth looking into. Again, you can call Mike Powell at 210-556-4144. Anything else we need to address before we call it a day?
Mike: Please call if you are interested or even if you just have a question. Please call. And thanks for having us on, Mitch.
Tim: We should have some links in the show notes, so, we hope to hear from you guys, soon.
Mitch: All right. Been a good call. Appreciate you both. Bye.
Tim: Thanks.
