WEBVTT
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Welcome and good morning to our weekly and W E K L Y, not W-E-A-K-L-Y, weekly podcast.
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Today we're lucky.
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We have a great agent and a good friend, a fun guy I get to play golf with once in a while, which is not often enough.
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From uh Miami Beach, Mr.
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Matt McMillan.
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Matt, thank you for being part of the podcast.
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Thanks for having me.
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My uh my mentor, Mike Ferry, on the golf course and elsewhere.
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That's right.
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I wish I could be your mentor on the golf course.
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I'm getting too old.
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Um, but you've you've probably shot your age, though.
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That's on my bucket list.
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I have shot my age, that's for sure.
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But of course, how old are you now?
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Uh 30, 48, as of a couple days ago.
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So, well, first of all, happy birthday.
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Thank you.
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But if you shoot your age, you have done something never done before.
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It's gonna take a while.
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Give me a few decades.
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Or three three or four decades, I'll be there.
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What the heck?
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So let's start with this.
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What company do you work with?
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Cobalt Banker Global Luxury here in Miami Beach on Lincoln Road.
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Is it a company-owned store or a franchise?
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It is a company-owned, corporate.
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Good.
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It's a great company.
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Cobalt Banker has been around for a long time.
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Um it really is.
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I was at the headquarters of Coba Banker years ago, and they gave me uh the the book, which was written by the guy Colwell and the guy Banker.
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That's how they got the name.
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It was the last names of two men.
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And it was a fascinating book about the development.
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The company started in LA and then went to San Francisco, and they thought they had done something right, and next thing you know, worldwide.
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So worldwide, literally across the world.
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What are you doing in specifically?
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Specifically Miami Beach.
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I mean, I I've sold, if people know the area, I've sold as far north as Jupiter and as far south as Cutler Bay, but that's rare for me.
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Right here in Miami Beach, and Miami is my bread and butter.
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Good.
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What's the average sales price for your business today?
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Mine is 1.6 million.
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Wow.
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We we did an interview with Dan Evans earlier today.
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His Salt Lake City average sales price was 1.6 million.
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Yeah.
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Which it sounds Salt Lake City and 1.6 million don't don't rhyme up together, but boy, yeah, what an exciting thing.
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What was it?
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I saw the low end here, Mike 1.6.
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A teardown.
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I love it.
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Yeah.
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Um what areas do you work specifically?
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You said from Jupiter to the keys?
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Primarily Miami Beach and Miami, here in Southeast Florida.
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Um, you know, right here in the suburbs of Miami, but Miami Beach is my bread and butter for sure.
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You know, condos, a lot of condos here.
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Uh a lot of these snowbirds that come down starting this time of year.
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It's October now.
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That's a lot of our business.
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So, what percentage of your business buys for the winter?
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Oh, that's a good question.
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I don't know that my percentage, but it's a lot.
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I've been blessed to work with a lot of folks that, you know, they're retiring, they're coming down, they have cash, you know, they're coming to buy a second home, and then uh, you know, we work with them years later to upgrade and they they get a new one.
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We sell the one that they had, the one that they got started with.
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Um sometimes we even start with them with rentals.
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You know, they'll come down and rent first and try it out before they move down.
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That's good.
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What what is the population of Florida now?
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Do you know?
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Oh gosh, I don't know.
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But I think Miami, I think Miami Dade is like two million, something like that.
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Two million?
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Uh-huh.
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Is it a heavily populated by real estate successful agents?
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Yeah, so the first of Miami Dade pretty much has this we have like 2,000 licensed agents here.
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Um, but as you've been sharing with us that that NAR stat, most of them aren't doing anything.
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Yeah, interesting.
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How long have you been in real estate?
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22 years.
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Got licensed in 2004.
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How old are you?
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And I've been with you almost um how old am I?
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Yes.
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48.
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48, okay.
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Um I think Dan Evans is 48 also.
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You guys have a lot in golf.
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And you're both good golfers, so it makes it more fun.
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What what did you do before selling real estate?
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I was a personal trainer.
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Were you?
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For how long?
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Yeah, I was a personal trainer.
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Um not long, because you can't make much money, Mike.
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I was making like 25, maybe 30 grand a year if it was a big year.
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I was I was like basically on the path of pre-med in college.
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I wanted to do something with medicine or fitness, something like that.
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And then I I looked at it and I uh I was like, you know what, this is gonna take me 10 or 12 years at least to go through this process.
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I don't know if I want to go through that process.
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So I got lucky and got in real estate, and my father-in-law went on a cruise and he met a guy who was one of your clients.
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I don't know if you remember the name, Ed House.
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Oh, of Ed Insurance House.
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Yeah.
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Yeah.
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He met my father-in-law met Ed House on a cruise, and he came back and I just got my license, and my father-in-law said, You've got to go to this guy.
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Uh, I met this guy, Ed House.
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He said, You've got to go with uh uh I can't remember his name, something fairy.
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And I looked online and luckily I chose the right fairy.
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I got the I got the OG, the original.
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Yeah, that's great.
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Eddie and Sharon were are lived lived in Vegas and were residents here.
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They may still be, I think they're retired, but uh they they're a great couple, and he was a great example of a person putting in hard work to get great results.
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Um what kind of money do you make per transaction?
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Uh it's not as good as this year as I would have liked, um, but you know, at 1.6, you know, my average commission was 30 something thousand last year for 2025.
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So how much did you make last year?
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What was your last year?
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Last year uh right around 800,000.
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And then my wife and I did a little flip, we did a little, you know, some other things.
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We we came close to the million last year, but we didn't quite get there.
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Good.
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And what what is your goal for this year?
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Well, the goal, um Tim, my coach Tim Rowan and I were just talking about that today.
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We've uh we've adjusted the goal a little bit.
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It's uh it's been a little bit of a challenge this year.
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I actually had some questions about that for you.
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You know, um I'm sure I'm not the only agent.
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You take a listing, you you build this inventory, you know, you teach us to take the listings, and you got a seller that wants to sell, and it's just not happening.
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And you've reduced the price, you've extended the listing, and you know, we're just in a challenging market where things are sitting.
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What what would you want us to do with those listings, Mike?
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Well, first of all, you have to have inventory to get the phone calls from the potential buyers.
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And for some reason, a lot of agents today um work buyers only, which to me doesn't make sense.
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I know to a person like you it doesn't make sense, but the challenge with people taking listings that you gave you an example of, Matt, is that if the listing doesn't sell in a reasonably short time frame, there's a lot of conversations that have to be done that don't have to be done if you're working with buyers.
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So it's an investment of time, but it's also an investment in inventory.
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You can't list a lot of properties without listing a lot of properties.
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And I know that's I know that sounds trite, but you your job today is to take listings, get them priced right, get them shown by the competition, get an offer accepted, and move on to the next.
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Um, the ex the expiration rate today is much higher than it has been in the past.
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And I think that will probably continue over the course of the next six months to a year.
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So well, uh where does most your business come from?
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I'm heavily uh, you know, I've been so 22 years I've been doing this.
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I have a pretty large database, so I uh the majority comes from that.
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I'm really good with the just list that just sold around my neighborhoods.
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For me, they're buildings, a lot of times they're buildings.
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I'm good at that.
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That's the majority of my business.
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I will take a few expireds here and there or get some other um somebody online calls and I'd say 90% of my business is those two those two sources.
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What what how big is your database?
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About twelve hundred people right now.
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1,200.
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Okay.
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1200, 1,200.
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And you say the major portion of your deals come out of your database.
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That's correct, yeah.
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Do you operate a small team?
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No.
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I have a full-time assistant, and my wife got licensed with me in 04, and she has pretty much always worked with me on and off.
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Um, she does all the research, she's a great researcher, you know, CMAs for sellers and searches for buyers, but doesn't go on appointments, doesn't show property.
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So I'm the I'm the pretty face, and she's the she does all the real work in the back.
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You're you're a one-man team.
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Yeah, exactly.
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Um have you been approached by agents that want to work for you underneath your license?
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Well, that's kind of one of the questions I thought I might want to ask you since you brought it up.
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I'd love, you know, you know me a little bit in my business.
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I'd love to ask your opinion on that.
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I think about it from time to time.
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Having a buyer's agent or at least a showing agent, something I I don't really have that person who's who's actually wanting to sell or someone I could mentor.
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Um, but maybe that's something I should look into.
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Well, I I think, Matt, that uh the highest return on your time is you taking a listing, getting it priced fairly, getting it sold, and getting referrals from that seller.
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That's the highest and best use of your time.
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And it's where the most money is being made.
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But what I see is people building teams, and the team is eating up all the time of the team leader.
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So the team leader's production drops dramatically, and the truth is the net profit, I think, drops with it.
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You know, you talk to Bernie or you talk to Dan Evans or you talk to Josh.
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A lot of the people like yourself that are very successful, and they're building small teams, eight to ten agents on the team, but they make the agents prospect every day.
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So Bernie and Josh take listings.
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They'll both take probably a hundred plus listings this year, as well as their team doing five to seven hundred transactions.
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So it's it's a leadership versus money.
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Um it's it's too often the case, Matt, where that great agent starts to build a team, pays them 50%, 40%, whatever the percentage is, loses their personal production, which is where their pre-tax net profit lives.
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A profit.
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In your personal profit.
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So that's what you taught us.
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I'm so glad I met you years ago.
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You taught me about profit.
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It's not just about how many people know your name and how many deals you do.
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Yeah, it's really about what you take home at the end of the day.
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And how many times have we seen agents in your organization that they go out and start a big team, and then I'll see them two or three years later and they're back to just their own personal production with their assistance.
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That's right.
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It happens all the time.
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Um, what would you say percentage-wise comes from your database of your total?
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It's a large percentage.
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I'm gonna say it's around 80%, 75 or 80 percent.
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So that's one thing I'm struggling with.
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I wanted to ask you about also, you know, you get out, you know, you're a new agent and you're gung-ho, and you don't have anything to do but build your business, right?
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That's right.
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Going out and you're adding to your database.
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Once you've been around 22 years, you know, I've been guilty of kind of relying on my database and not continuing to build the business.
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And um I want to get back to that.
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I was gonna ask your opinion on how to do that.
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Well, first of all, you Pat McVeigh, who you've heard me talk about, the broker I work for 50 years ago, and I want to always qualify that I haven't been in real estate for 50 years as an agent.
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But what I learned then, I'm teaching today, and it seems to be working good for people like yourself.
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Pat McVeigh said there's two jobs that a real estate agent has: prospect every day, talk to people, and preview property every day, because properties on the market are what you need to be seeing.
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So when you knock on doors around somebody else's listing, make phone calls around somebody else's listing, you're familiar with the properties, etc.
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So Pat said all you have to do is prospect and preview, which is all I did.
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And it made me a ton of money as an agent in 1970.
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My average commission check was$270, which was based on the$25,$25,000 to$28,000 average sales price.
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So I my my belief is a team is good, high-level productivity, doing 50,000, 75, 100 deals a year is much better.
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You'll do more deals with the team, but you'll make more profit if you're doing it on your own.
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I like the profit.
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I I'm with you.
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You know, we we only have so many lives to live.
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We have so many listings to take.
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Um, you want to make each day as profitable as you can make it.
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And that and that's what you and all the other people I get to hang out with do, which is the name of the game.
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I appreciate you saying that you haven't sold real estate in a long time, but I I hear there's speakers out there that are teaching realtors but have never sold real estate.
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So at least you've sold real estate.
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Uh, there's a lot of those out there, let me tell you, and no question about it.
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You know, we often hear about the same two complaints um from non-producers to me about our friends that are good producers.
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Um, top producers buy BUI their business by overpricing listings, and second by cutting commissions.
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How how do you handle these objections?
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You know, Mike, it's it's more and more of a challenge, especially since what was it, August last year we had a big change with the commissions within AR.
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So yeah, even more so now I'm seeing the commission cutters.
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Uh like you've taught us, like you've taught me for 23 years, you know, you can you can say no, you can move on and say next and keep prospecting, you know.
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If you can't get that one and someone is is hell bent on on hiring that person.
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I was speaking to someone uh just yesterday in a building where I do the majority of the business.
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It not being um, I'm not bragging, just like I'm the guy, they should hire me for sure.
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There's no doubt.
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And they want to hire their friend because their friend is giving them a deal.
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Uh a deal on commission.
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Yeah.
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Yeah.
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A deal on commission and a real deal on service.
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You know, yeah, exactly.
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Yeah.
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Yeah.
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So you look at those and you think, you know, if you can get it and you can try to bridge that gap, like obviously you do, but I've been around long enough that I I'll tell my wife all the time, we laugh, like, I'll get that one when it expires.
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It'll expire eventually, and I'll just I'll talk to them then.
00:16:49.440 --> 00:16:50.159
That's right.
00:16:50.320 --> 00:16:56.000
Well, I I talked, I'm lucky I get to spend a lot of time talking to people like yourself.
00:16:56.159 --> 00:17:09.839
And it's interesting because um the good agents, as you stated, are willing to pick up the papers, walk away without a listing signed, because they know there's another listing available.
00:17:10.160 --> 00:17:22.000
It's a question is do you want to find that listing or do you want to take it overpriced to cut your commission and really do a lot of damage to you personally and to your seller?
00:17:22.400 --> 00:17:39.359
Because, you know, let's face it, today, with technology being as advanced as it is, they can go online in a matter of minutes, see what commission is being paid on the listing, and decide not to show it because there's not enough commission being paid on the listing.
00:17:40.000 --> 00:17:40.480
Exactly.
00:17:40.799 --> 00:17:46.319
Well, in my market, especially with the condos, there's so much inventory.
00:17:47.440 --> 00:17:51.920
It's just it makes sense to try to chase listings that are going to list too high.
00:17:52.000 --> 00:17:54.640
It's just there's just too many of them out there.
00:17:54.960 --> 00:17:57.279
Why do you already have too many choices?
00:17:57.519 --> 00:18:00.079
Yeah, why is there so much inventory?
00:18:02.319 --> 00:18:09.039
Well, you could probably tell me better than I could answer, but obviously we had that that high during COVID, so it had to come down, and it has.
00:18:09.599 --> 00:18:13.519
And the interest rates have caused a lot of buyers to just sit on the sidelines.
00:18:13.680 --> 00:18:21.039
I can't tell you how many buyers I thought I had who were definitely going to buy a property who still have not a year or two later because they're renting.
00:18:21.279 --> 00:18:28.480
So in a funny way, the rental side of the business has been gangbusters because so many of these would-be buyers still need somewhere to live.
00:18:28.559 --> 00:18:30.160
So we still do a lot of the rentals.
00:18:30.400 --> 00:18:35.519
I'd rather do sales, but you know, you kind of go with you kind of go with the flow, right?
00:18:35.759 --> 00:18:36.480
You think that's right?
00:18:37.200 --> 00:18:37.839
100%.
00:18:38.799 --> 00:18:42.960
Um how many transactions did you do last year?
00:18:44.240 --> 00:18:47.279
You know, I do so we do both the little ones and the big ones of sales.
00:18:47.359 --> 00:18:53.599
So I think last year it was around 45 or something like that total with the rentals and the sales.
00:18:54.160 --> 00:19:00.799
Well, 45 at your average sales price is three times what the average agent does.
00:19:01.119 --> 00:19:06.240
Because the average agent does, you know, 10 to 12 at one-third the sales price.
00:19:06.400 --> 00:19:10.960
So, you know, they must look at you and say, we got to talk to Matt.
00:19:11.039 --> 00:19:12.400
He he's making all the money.
00:19:12.480 --> 00:19:14.720
We've got to find out how he does it.
00:19:15.039 --> 00:19:18.400
So, what is your goal for say three to five years?
00:19:18.559 --> 00:19:22.079
You're a young guy, you know, you still have a lot of time.
00:19:22.319 --> 00:19:23.200
What is your goal?
00:19:23.279 --> 00:19:25.119
What do you want to accomplish?
00:19:26.960 --> 00:19:34.400
So I sat, you may not remember, but I sat with you in your house in Naples years ago, and I told you I want to become a real estate investor.
00:19:34.559 --> 00:19:36.400
I want to, that's what I want to do eventually.
00:19:36.480 --> 00:19:41.759
I want to transition from sales and then owning real estate and becoming an investor.
00:19:41.920 --> 00:19:46.799
So it's taken a lot longer than I've thought, but we're on that on that path.
00:19:47.039 --> 00:19:47.200
Yeah.
00:19:47.519 --> 00:19:57.200
My goal in the next three to five years is to become financially independent, where the rental income from those will cover our normal living expenses.
00:19:57.519 --> 00:20:02.640
And then anything we make from real estate, you know, is is extra, is a bonus.
00:20:02.799 --> 00:20:03.839
So I'm excited about that.
00:20:03.920 --> 00:20:06.160
And that's you know, I'm focusing on that every day.
00:20:06.480 --> 00:20:07.279
That is great.
00:20:07.359 --> 00:20:09.440
That's working on that with Tim all the time.
00:20:09.839 --> 00:20:10.160
Good.
00:20:10.319 --> 00:20:12.160
Who's your coach today?
00:20:13.920 --> 00:20:14.720
Tim Rowan.
00:20:14.880 --> 00:20:16.240
I got a great coach from North Carolina.
00:20:16.400 --> 00:20:18.319
He is great coach.
00:20:18.480 --> 00:20:22.960
He's not only a great coach, he's a great guy, and he's a lot of fun to be around.
00:20:23.599 --> 00:20:24.240
He really is.
00:20:24.559 --> 00:20:26.960
How long have you worked with uh Tim?
00:20:27.519 --> 00:20:28.480
Yeah, I couldn't believe it.
00:20:28.559 --> 00:20:29.519
We talked about it recently.
00:20:29.680 --> 00:20:31.039
I think it's been five years already.
00:20:31.119 --> 00:20:32.079
It just it flew by.
00:20:32.559 --> 00:20:34.000
I would have thought two or three.
00:20:34.160 --> 00:20:34.799
Five years.
00:20:35.680 --> 00:20:36.799
That's interesting.
00:20:36.960 --> 00:20:39.119
So let's create a scenario.
00:20:39.359 --> 00:20:42.079
Um, I'm doing a superstar retreat.
00:20:42.240 --> 00:20:55.119
Um, I've invited a handful of agents, 15 or 20, and I've invited you to speak to them for 30, 40 minutes about how you have done what you've done in Miami Beach.
00:20:55.279 --> 00:20:58.640
Um, what are the two or three things you would tell these agents?
00:20:58.880 --> 00:21:01.759
They would love to have your income.
00:21:02.160 --> 00:21:07.680
They just don't want to go through the pain and suffering of the first few years trying to get it.
00:21:07.920 --> 00:21:10.880
What what would you what would your advice be for them?
00:21:11.200 --> 00:21:11.839
Yeah.
00:21:12.559 --> 00:21:15.279
So I struggle with this often.
00:21:15.359 --> 00:21:23.119
So this would be my, I guess, advice is you have to focus on urgency and patience at the same time.
00:21:23.519 --> 00:21:24.079
That's right.
00:21:24.240 --> 00:21:25.359
Balance them off.
00:21:25.920 --> 00:21:30.079
Urgency, you know, if you can get the appointment today, don't wait for two days.
00:21:30.400 --> 00:21:35.359
If you get the signature from the can from the counteroffer from the seller today, don't wait till tomorrow.
00:21:35.519 --> 00:21:38.640
Like my my coach Tim says, time kills all deals.
00:21:38.880 --> 00:21:41.839
You know, the urgency of not wasting a day every day.
00:21:41.920 --> 00:21:50.720
You know, if you if you start, if a young agent starts with you and they really go after it, in five to seven years, if they do it the way you teach it, they will be a millionaire.
00:21:50.880 --> 00:21:52.240
No doubt in my mind.
00:21:52.880 --> 00:21:55.759
So, but then at the same time, there's the patient side.
00:21:56.000 --> 00:21:59.440
This has taken me a lot longer to get here than I would have thought.
00:22:00.000 --> 00:22:01.440
And I'm still a little impatient.
00:22:01.519 --> 00:22:02.880
I wish it would have gone a lot faster.
00:22:02.960 --> 00:22:04.559
Maybe I'm just a slow learner.
00:22:04.880 --> 00:22:06.640
Um, but there's that patient side.
00:22:06.720 --> 00:22:11.440
Look, you have years like the COVID years, which we never would have thought when COVID started that it would have been a boom.
00:22:11.599 --> 00:22:12.799
We thought the world was over.
00:22:13.119 --> 00:22:22.079
So there was that, and then there's the other side where you have a market like this where rates are going up, and there's you know, things that out that are out of your control, and you just have to be patient.
00:22:22.240 --> 00:22:28.160
And there's there's deals that happen that you have no control of uh things going on in the deal sometimes.
00:22:28.240 --> 00:22:31.119
So you just have to be patient, have the long view.
00:22:31.440 --> 00:22:37.759
So it's it's embracing the urgency, working every day hard, but also you gotta be patient.
00:22:38.480 --> 00:22:48.079
And for those that are willing to take that advice, it's still gonna take, if they're new licensees, three to five years to get established.
00:22:48.319 --> 00:22:51.519
And nobody wants to nobody wants to talk about that.
00:22:51.759 --> 00:23:05.920
And for a veteran like yourself to go from 45 to 50 to say 75 could take only a couple of years, but you have to have the urgency, as you just mentioned, to make that happen.
00:23:06.240 --> 00:23:11.680
Um talk for a few minutes about the listing process you go through.
00:23:11.920 --> 00:23:15.920
Do you pre-qualify the majority of your sellers?
00:23:16.240 --> 00:23:16.720
Uh-huh.
00:23:16.960 --> 00:23:18.799
So thank you for asking.
00:23:19.359 --> 00:23:24.960
When um when I was earlier in your system, I followed that five-step process verbatim.
00:23:25.039 --> 00:23:26.480
I would, you know, I was lucky.
00:23:26.559 --> 00:23:29.839
I did a lot of phone uh lessing listing presentations, so it was easy.
00:23:29.920 --> 00:23:33.200
I literally could walk around my office and read the script to them.
00:23:33.440 --> 00:23:38.000
Um, as I've gotten older, I I kind of just rely on these relationships that I've had.
00:23:38.079 --> 00:23:41.839
And I've I gotta be honest, sometimes I get away from the process.
00:23:41.920 --> 00:23:49.119
So that's why I go back to your retreats often, you know, and I see someone like Dan Mum, who is an amazing listing agent.
00:23:49.759 --> 00:23:52.160
But and say, and I'd say this to him if he was here.
00:23:52.400 --> 00:23:53.599
He's not doing anything special.
00:23:53.680 --> 00:23:57.039
He's just doing your system, he's following your script.
00:23:57.599 --> 00:24:00.640
And he's just he's just doing what you're teaching us.
00:24:01.039 --> 00:24:06.160
Um so but I I I do prequel, I do send out a pre-listing packet.
00:24:06.240 --> 00:24:09.440
Um, I I try to follow your system as best I can.
00:24:09.759 --> 00:24:10.240
Good.
00:24:10.880 --> 00:24:14.559
And non and non-ego, non-ego like you taught me years ago.
00:24:15.039 --> 00:24:18.079
How about the listing presentation itself?
00:24:18.319 --> 00:24:24.799
Um ours is scripted, it's question-based, it's not very challenging to learn it.
00:24:24.880 --> 00:24:28.480
You can virtually read it to a seller and win.
00:24:28.640 --> 00:24:32.400
How much of the presentation do you do you actually use?
00:24:32.880 --> 00:24:42.640
Yeah, so like I mentioned just now, I would say years ago I probably used 80-90%, and I've gotten a little uh lazy in my old age, I guess.
00:24:42.720 --> 00:24:52.000
I you know, I can I can you know a client that I know well, especially a past client, I know I'm gonna get the listing, or I think I am, but you know, you lose some.
00:24:52.240 --> 00:24:56.160
You know, you can just call and say, hey, I already know your situation.
00:24:56.319 --> 00:24:57.759
You want to just talk to the comps?
00:24:57.920 --> 00:25:01.119
Um, and that's probably a mistake to not go through the whole thing.
00:25:01.440 --> 00:25:02.079
Yeah.
00:25:02.480 --> 00:25:20.000
The more experienced you are, and time is on your side, um, and the more you're trying to list property, which is your your favorite thing to do, you're gonna spend more time with people that you know well and have probably listed or sold their properties for them.
00:25:20.319 --> 00:25:23.279
You communicate with them through your database.
00:25:23.839 --> 00:25:40.720
But honestly, I tell agents all the time experienced people working with past clients are not as likely to use the scripts because you you can cut the time down that you're investing in a presentation dramatically.
00:25:41.039 --> 00:25:41.920
That's right.
00:25:42.640 --> 00:25:46.079
So, any questions you have from I do, I do.
00:25:46.799 --> 00:25:55.039
So selfishly, I want to learn from the from the real estate investor, Mike, because that's that's the kind of path I'm on.
00:25:55.440 --> 00:26:00.720
When you saw when you saw a buyer's market like we're in, we're full-on buyer's market here, lots of inventory.
00:26:00.799 --> 00:26:01.519
I think I looked it up.
00:26:01.599 --> 00:26:04.160
We have a between a 16 to 17 month inventory.
00:26:04.240 --> 00:26:05.920
It's a fantastic time to buy.
00:26:06.160 --> 00:26:09.920
Yeah, of course, so many seller buyers are just fearful of buying.
00:26:10.000 --> 00:26:13.200
We have to do a better job of explaining to them that they should.
00:26:13.519 --> 00:26:16.240
What what were you as an investor looking for?
00:26:16.400 --> 00:26:19.680
What was your strategy when you saw opportunities like this?
00:26:19.839 --> 00:26:23.920
When every every other buyer is like, no, I'm not buying, it's it's too scary right now.
00:26:24.000 --> 00:26:25.680
What did Mike Ferry do?
00:26:26.079 --> 00:26:31.359
Well, I was always looking for properties that I could do one of two things with.
00:26:31.599 --> 00:26:42.000
Turn them over to the next buyer in 12 to 18 months by doing a minimal amount of rehab work to bring it up to bar.
00:26:42.240 --> 00:26:43.200
That's number one.
00:26:43.359 --> 00:26:52.400
Number two, I was looking for properties that I could create reasonable cash flow, because cash flow is the name of the game.
00:26:52.720 --> 00:27:02.160
So um Sabrina and I looked for properties that uh, let's say the property in Las Vegas is listed at 475.
00:27:02.559 --> 00:27:08.000
Um, we're we're willing to pay 475, put 25-30%.
00:27:08.480 --> 00:27:11.119
The more you put down, the higher the cash flow.
00:27:11.359 --> 00:27:18.400
And so we're looking for properties that either A we can turn over in a reasonable length of time.
00:27:18.559 --> 00:27:23.759
Um, I've done a lot of work with Dan Mum, and I've done a lot of work with John Sullivan.
00:27:23.920 --> 00:27:25.440
They work in the same office.
00:27:25.519 --> 00:27:34.240
And what first thing I told them, Matt, when when we started working together is how many homes do you own and how much do you owe?
00:27:34.480 --> 00:27:37.279
And how quickly can you pay them off?
00:27:37.440 --> 00:27:37.759
Yeah.
00:27:38.319 --> 00:27:47.759
Aren't you better off owning five homes that are free and clear than owning 10 homes that you have an 80% mortgage on it?
00:27:47.920 --> 00:27:48.079
Yeah.
00:27:48.319 --> 00:27:51.440
So, but part of that also is age.
00:27:51.599 --> 00:27:53.119
You know, I'm 81.
00:27:53.519 --> 00:27:58.240
My time for investing is shorter than yours is.
00:27:58.480 --> 00:28:03.200
Um, but urgency is the name of the game, as you mentioned.
00:28:03.279 --> 00:28:03.519
Yeah.
00:28:03.680 --> 00:28:06.960
But I I looked for those two things on a property.
00:28:07.359 --> 00:28:07.680
Okay.
00:28:08.559 --> 00:28:12.000
How quickly can we make a profit that is reasonable?
00:28:12.400 --> 00:28:26.319
And second, um, if we're not buying it to make a profit quickly on our turnover, what can we do on the expense side to make it profitable and create cash flow?
00:28:26.720 --> 00:28:28.799
You know, thanks for that reminder.
00:28:28.960 --> 00:28:30.880
And thanks for pushing on paying them off.
00:28:30.960 --> 00:28:36.000
I paid off my first one last year, and it's nice to just know that's just forever, that's forever income.
00:28:36.079 --> 00:28:42.720
If I just keep it, it's literally forever income that I can have till I'm 81, or I can give it to my daughter.
00:28:43.039 --> 00:28:43.920
That's right.
00:28:44.400 --> 00:28:50.240
Well, we're we've been talking for almost 30 minutes, which time flies when you're having a good time.
00:28:50.480 --> 00:28:50.880
Absolutely.
00:28:51.119 --> 00:28:52.640
Um, when will we see you again?
00:28:52.720 --> 00:28:53.039
A production.
00:28:53.519 --> 00:28:56.480
We're coming out for a prospecting clinic next month in November.
00:28:56.640 --> 00:29:00.400
I think it's like the 15th, 17th, somewhere around there.
00:29:00.480 --> 00:29:00.640
Yeah.
00:29:00.799 --> 00:29:04.400
And I'm gonna I'm gonna try to uh play Shadow Creek when I'm out there.
00:29:04.480 --> 00:29:06.720
I'll talk to John and see if he still has that connection there.
00:29:07.119 --> 00:29:10.960
Well, uh, let's try to arrange a golf game if I'm in town.
00:29:11.200 --> 00:29:12.079
I'd love to.
00:29:12.319 --> 00:29:20.960
Yeah, and we'll get John to play because I tell everybody that John Sullivan is the easiest money you can make on a golf.
00:29:23.759 --> 00:29:25.440
Mike, he's he's probably gonna watch this.
00:29:26.880 --> 00:29:36.720
We just spent an evening with he and his family, and we had a lot of fun laughing about the fact that he hits the ball a mile, and sometimes we can find it.
00:29:37.519 --> 00:29:40.880
But he's a way better um football player than us.
00:29:41.119 --> 00:29:42.079
Yeah, that's right.
00:29:42.319 --> 00:29:43.599
Well, thanks for your time.
00:29:43.680 --> 00:29:49.519
I'll look forward to seeing you in a few weeks and uh enjoy the fourth quarter a lot.
00:29:49.680 --> 00:29:50.000
Thanks.
00:29:50.400 --> 00:29:50.640
Thank you.
00:29:50.720 --> 00:29:51.440
Thanks, Mike.
00:29:51.599 --> 00:29:52.960
Have a great day.
00:00:03.600 --> 00:00:12.480
Welcome and good morning to our weekly and W E K L Y, not W-E-A-K-L-Y, weekly podcast.
00:00:12.640 --> 00:00:13.599
Today we're lucky.
00:00:13.679 --> 00:00:21.359
We have a great agent and a good friend, a fun guy I get to play golf with once in a while, which is not often enough.
00:00:21.600 --> 00:00:23.600
From uh Miami Beach, Mr.
00:00:23.760 --> 00:00:24.800
Matt McMillan.
00:00:25.199 --> 00:00:27.679
Matt, thank you for being part of the podcast.
00:00:28.000 --> 00:00:28.879
Thanks for having me.
00:00:29.039 --> 00:00:32.320
My uh my mentor, Mike Ferry, on the golf course and elsewhere.
00:00:32.880 --> 00:00:33.439
That's right.
00:00:33.679 --> 00:00:35.600
I wish I could be your mentor on the golf course.
00:00:35.679 --> 00:00:36.880
I'm getting too old.
00:00:36.960 --> 00:00:39.359
Um, but you've you've probably shot your age, though.
00:00:39.439 --> 00:00:40.719
That's on my bucket list.
00:00:41.600 --> 00:00:43.840
I have shot my age, that's for sure.
00:00:44.479 --> 00:00:46.479
But of course, how old are you now?
00:00:47.280 --> 00:00:50.640
Uh 30, 48, as of a couple days ago.
00:00:50.960 --> 00:00:53.439
So, well, first of all, happy birthday.
00:00:53.679 --> 00:00:54.079
Thank you.
00:00:54.399 --> 00:00:58.479
But if you shoot your age, you have done something never done before.
00:00:59.280 --> 00:01:00.159
It's gonna take a while.
00:01:00.320 --> 00:01:01.520
Give me a few decades.
00:01:01.679 --> 00:01:03.679
Or three three or four decades, I'll be there.
00:01:04.319 --> 00:01:05.120
What the heck?
00:01:05.359 --> 00:01:06.560
So let's start with this.
00:01:06.719 --> 00:01:08.480
What company do you work with?
00:01:08.799 --> 00:01:12.640
Cobalt Banker Global Luxury here in Miami Beach on Lincoln Road.
00:01:12.959 --> 00:01:16.640
Is it a company-owned store or a franchise?
00:01:16.959 --> 00:01:18.719
It is a company-owned, corporate.
00:01:19.040 --> 00:01:19.439
Good.
00:01:20.079 --> 00:01:21.359
It's a great company.
00:01:21.519 --> 00:01:24.239
Cobalt Banker has been around for a long time.
00:01:24.400 --> 00:01:25.519
Um it really is.
00:01:25.840 --> 00:01:35.760
I was at the headquarters of Coba Banker years ago, and they gave me uh the the book, which was written by the guy Colwell and the guy Banker.
00:01:35.840 --> 00:01:36.799
That's how they got the name.
00:01:36.879 --> 00:01:39.439
It was the last names of two men.
00:01:39.599 --> 00:01:42.879
And it was a fascinating book about the development.
00:01:43.040 --> 00:01:51.760
The company started in LA and then went to San Francisco, and they thought they had done something right, and next thing you know, worldwide.
00:01:51.840 --> 00:01:54.640
So worldwide, literally across the world.
00:01:54.959 --> 00:01:57.760
What are you doing in specifically?
00:01:58.079 --> 00:01:59.599
Specifically Miami Beach.
00:01:59.680 --> 00:02:07.200
I mean, I I've sold, if people know the area, I've sold as far north as Jupiter and as far south as Cutler Bay, but that's rare for me.
00:02:07.359 --> 00:02:10.879
Right here in Miami Beach, and Miami is my bread and butter.
00:02:11.199 --> 00:02:11.520
Good.
00:02:11.680 --> 00:02:15.039
What's the average sales price for your business today?
00:02:15.360 --> 00:02:17.360
Mine is 1.6 million.
00:02:17.919 --> 00:02:18.400
Wow.
00:02:18.560 --> 00:02:22.400
We we did an interview with Dan Evans earlier today.
00:02:22.639 --> 00:02:27.840
His Salt Lake City average sales price was 1.6 million.
00:02:28.080 --> 00:02:28.319
Yeah.
00:02:28.639 --> 00:02:38.159
Which it sounds Salt Lake City and 1.6 million don't don't rhyme up together, but boy, yeah, what an exciting thing.
00:02:38.319 --> 00:02:38.879
What was it?
00:02:39.759 --> 00:02:42.319
I saw the low end here, Mike 1.6.
00:02:44.800 --> 00:02:45.599
A teardown.
00:02:45.840 --> 00:02:46.400
I love it.
00:02:46.479 --> 00:02:46.719
Yeah.
00:02:46.879 --> 00:02:49.520
Um what areas do you work specifically?
00:02:49.759 --> 00:02:52.240
You said from Jupiter to the keys?
00:02:53.439 --> 00:02:57.360
Primarily Miami Beach and Miami, here in Southeast Florida.
00:02:57.599 --> 00:03:03.360
Um, you know, right here in the suburbs of Miami, but Miami Beach is my bread and butter for sure.
00:03:03.439 --> 00:03:05.360
You know, condos, a lot of condos here.
00:03:05.520 --> 00:03:08.240
Uh a lot of these snowbirds that come down starting this time of year.
00:03:08.319 --> 00:03:09.280
It's October now.
00:03:09.439 --> 00:03:10.960
That's a lot of our business.
00:03:11.439 --> 00:03:16.400
So, what percentage of your business buys for the winter?
00:03:17.360 --> 00:03:18.479
Oh, that's a good question.
00:03:18.560 --> 00:03:20.240
I don't know that my percentage, but it's a lot.
00:03:20.319 --> 00:03:31.919
I've been blessed to work with a lot of folks that, you know, they're retiring, they're coming down, they have cash, you know, they're coming to buy a second home, and then uh, you know, we work with them years later to upgrade and they they get a new one.
00:03:32.000 --> 00:03:34.719
We sell the one that they had, the one that they got started with.
00:03:34.879 --> 00:03:37.280
Um sometimes we even start with them with rentals.
00:03:37.439 --> 00:03:40.719
You know, they'll come down and rent first and try it out before they move down.
00:03:41.039 --> 00:03:41.840
That's good.
00:03:42.000 --> 00:03:44.400
What what is the population of Florida now?
00:03:44.479 --> 00:03:45.120
Do you know?
00:03:45.520 --> 00:03:47.039
Oh gosh, I don't know.
00:03:50.159 --> 00:03:54.080
But I think Miami, I think Miami Dade is like two million, something like that.
00:03:54.479 --> 00:03:55.280
Two million?
00:03:55.680 --> 00:03:56.000
Uh-huh.
00:03:56.479 --> 00:04:01.360
Is it a heavily populated by real estate successful agents?
00:04:02.719 --> 00:04:10.240
Yeah, so the first of Miami Dade pretty much has this we have like 2,000 licensed agents here.
00:04:10.719 --> 00:04:16.319
Um, but as you've been sharing with us that that NAR stat, most of them aren't doing anything.
00:04:16.639 --> 00:04:17.839
Yeah, interesting.
00:04:18.079 --> 00:04:20.160
How long have you been in real estate?
00:04:20.959 --> 00:04:21.839
22 years.
00:04:22.079 --> 00:04:23.680
Got licensed in 2004.
00:04:24.000 --> 00:04:24.720
How old are you?
00:04:24.879 --> 00:04:27.839
And I've been with you almost um how old am I?
00:04:28.079 --> 00:04:28.639
Yes.
00:04:29.279 --> 00:04:30.079
48.
00:04:30.959 --> 00:04:32.560
48, okay.
00:04:32.879 --> 00:04:36.079
Um I think Dan Evans is 48 also.
00:04:36.240 --> 00:04:37.839
You guys have a lot in golf.
00:04:38.160 --> 00:04:41.519
And you're both good golfers, so it makes it more fun.
00:04:41.920 --> 00:04:44.959
What what did you do before selling real estate?
00:04:46.720 --> 00:04:48.560
I was a personal trainer.
00:04:49.279 --> 00:04:50.000
Were you?
00:04:50.319 --> 00:04:51.120
For how long?
00:04:51.360 --> 00:04:52.959
Yeah, I was a personal trainer.
00:04:53.600 --> 00:04:56.639
Um not long, because you can't make much money, Mike.
00:04:56.720 --> 00:05:00.480
I was making like 25, maybe 30 grand a year if it was a big year.
00:05:00.800 --> 00:05:04.879
I was I was like basically on the path of pre-med in college.
00:05:04.959 --> 00:05:08.160
I wanted to do something with medicine or fitness, something like that.
00:05:08.240 --> 00:05:14.319
And then I I looked at it and I uh I was like, you know what, this is gonna take me 10 or 12 years at least to go through this process.
00:05:14.399 --> 00:05:16.160
I don't know if I want to go through that process.
00:05:16.639 --> 00:05:22.959
So I got lucky and got in real estate, and my father-in-law went on a cruise and he met a guy who was one of your clients.
00:05:23.040 --> 00:05:25.439
I don't know if you remember the name, Ed House.
00:05:25.920 --> 00:05:27.920
Oh, of Ed Insurance House.
00:05:28.160 --> 00:05:28.480
Yeah.
00:05:28.720 --> 00:05:29.040
Yeah.
00:05:29.279 --> 00:05:37.759
He met my father-in-law met Ed House on a cruise, and he came back and I just got my license, and my father-in-law said, You've got to go to this guy.
00:05:37.839 --> 00:05:39.279
Uh, I met this guy, Ed House.
00:05:39.360 --> 00:05:43.120
He said, You've got to go with uh uh I can't remember his name, something fairy.
00:05:43.519 --> 00:05:46.399
And I looked online and luckily I chose the right fairy.
00:05:46.480 --> 00:05:48.720
I got the I got the OG, the original.
00:05:49.199 --> 00:05:50.480
Yeah, that's great.
00:05:50.639 --> 00:05:55.600
Eddie and Sharon were are lived lived in Vegas and were residents here.
00:05:55.759 --> 00:06:08.000
They may still be, I think they're retired, but uh they they're a great couple, and he was a great example of a person putting in hard work to get great results.
00:06:08.160 --> 00:06:11.920
Um what kind of money do you make per transaction?
00:06:12.959 --> 00:06:22.800
Uh it's not as good as this year as I would have liked, um, but you know, at 1.6, you know, my average commission was 30 something thousand last year for 2025.
00:06:23.120 --> 00:06:27.519
So how much did you make last year?
00:06:27.839 --> 00:06:28.959
What was your last year?
00:06:29.199 --> 00:06:32.800
Last year uh right around 800,000.
00:06:32.879 --> 00:06:36.000
And then my wife and I did a little flip, we did a little, you know, some other things.
00:06:36.079 --> 00:06:38.800
We we came close to the million last year, but we didn't quite get there.
00:06:39.120 --> 00:06:39.600
Good.
00:06:39.759 --> 00:06:41.839
And what what is your goal for this year?
00:06:43.600 --> 00:06:47.279
Well, the goal, um Tim, my coach Tim Rowan and I were just talking about that today.
00:06:47.360 --> 00:06:49.519
We've uh we've adjusted the goal a little bit.
00:06:49.600 --> 00:06:51.680
It's uh it's been a little bit of a challenge this year.
00:06:51.759 --> 00:06:53.839
I actually had some questions about that for you.
00:06:54.160 --> 00:06:57.439
You know, um I'm sure I'm not the only agent.
00:06:57.680 --> 00:07:06.560
You take a listing, you you build this inventory, you know, you teach us to take the listings, and you got a seller that wants to sell, and it's just not happening.
00:07:06.639 --> 00:07:11.519
And you've reduced the price, you've extended the listing, and you know, we're just in a challenging market where things are sitting.
00:07:11.680 --> 00:07:15.839
What what would you want us to do with those listings, Mike?
00:07:16.959 --> 00:07:24.319
Well, first of all, you have to have inventory to get the phone calls from the potential buyers.
00:07:24.560 --> 00:07:32.800
And for some reason, a lot of agents today um work buyers only, which to me doesn't make sense.
00:07:33.040 --> 00:07:55.680
I know to a person like you it doesn't make sense, but the challenge with people taking listings that you gave you an example of, Matt, is that if the listing doesn't sell in a reasonably short time frame, there's a lot of conversations that have to be done that don't have to be done if you're working with buyers.
00:07:55.920 --> 00:08:02.480
So it's an investment of time, but it's also an investment in inventory.
00:08:02.879 --> 00:08:09.199
You can't list a lot of properties without listing a lot of properties.
00:08:09.519 --> 00:08:24.160
And I know that's I know that sounds trite, but you your job today is to take listings, get them priced right, get them shown by the competition, get an offer accepted, and move on to the next.
00:08:24.399 --> 00:08:30.000
Um, the ex the expiration rate today is much higher than it has been in the past.
00:08:30.160 --> 00:08:35.600
And I think that will probably continue over the course of the next six months to a year.
00:08:35.919 --> 00:08:40.159
So well, uh where does most your business come from?
00:08:41.120 --> 00:08:44.639
I'm heavily uh, you know, I've been so 22 years I've been doing this.
00:08:44.799 --> 00:08:48.000
I have a pretty large database, so I uh the majority comes from that.
00:08:48.240 --> 00:08:53.039
I'm really good with the just list that just sold around my neighborhoods.
00:08:53.120 --> 00:08:55.440
For me, they're buildings, a lot of times they're buildings.
00:08:55.600 --> 00:08:56.480
I'm good at that.
00:08:56.639 --> 00:08:57.840
That's the majority of my business.
00:08:58.000 --> 00:09:10.320
I will take a few expireds here and there or get some other um somebody online calls and I'd say 90% of my business is those two those two sources.
00:09:10.720 --> 00:09:13.200
What what how big is your database?
00:09:14.480 --> 00:09:16.159
About twelve hundred people right now.
00:09:16.480 --> 00:09:16.960
1,200.
00:09:17.200 --> 00:09:17.279
Okay.
00:09:18.320 --> 00:09:20.080
1200, 1,200.
00:09:21.759 --> 00:09:25.840
And you say the major portion of your deals come out of your database.
00:09:26.240 --> 00:09:27.440
That's correct, yeah.
00:09:28.080 --> 00:09:30.480
Do you operate a small team?
00:09:30.960 --> 00:09:31.279
No.
00:09:31.600 --> 00:09:38.879
I have a full-time assistant, and my wife got licensed with me in 04, and she has pretty much always worked with me on and off.
00:09:39.039 --> 00:09:48.320
Um, she does all the research, she's a great researcher, you know, CMAs for sellers and searches for buyers, but doesn't go on appointments, doesn't show property.
00:09:48.399 --> 00:09:53.360
So I'm the I'm the pretty face, and she's the she does all the real work in the back.
00:09:53.759 --> 00:09:55.679
You're you're a one-man team.
00:09:55.919 --> 00:09:57.519
Yeah, exactly.
00:09:57.840 --> 00:10:03.840
Um have you been approached by agents that want to work for you underneath your license?
00:10:04.159 --> 00:10:07.200
Well, that's kind of one of the questions I thought I might want to ask you since you brought it up.
00:10:07.279 --> 00:10:09.440
I'd love, you know, you know me a little bit in my business.
00:10:09.519 --> 00:10:11.200
I'd love to ask your opinion on that.
00:10:11.440 --> 00:10:13.519
I think about it from time to time.
00:10:13.840 --> 00:10:24.720
Having a buyer's agent or at least a showing agent, something I I don't really have that person who's who's actually wanting to sell or someone I could mentor.
00:10:25.200 --> 00:10:28.080
Um, but maybe that's something I should look into.
00:10:28.639 --> 00:10:43.600
Well, I I think, Matt, that uh the highest return on your time is you taking a listing, getting it priced fairly, getting it sold, and getting referrals from that seller.
00:10:43.759 --> 00:10:46.000
That's the highest and best use of your time.
00:10:46.080 --> 00:10:48.559
And it's where the most money is being made.
00:10:48.799 --> 00:10:57.600
But what I see is people building teams, and the team is eating up all the time of the team leader.
00:10:57.840 --> 00:11:05.200
So the team leader's production drops dramatically, and the truth is the net profit, I think, drops with it.
00:11:05.360 --> 00:11:10.399
You know, you talk to Bernie or you talk to Dan Evans or you talk to Josh.
00:11:10.799 --> 00:11:23.120
A lot of the people like yourself that are very successful, and they're building small teams, eight to ten agents on the team, but they make the agents prospect every day.
00:11:23.440 --> 00:11:27.279
So Bernie and Josh take listings.
00:11:27.440 --> 00:11:36.799
They'll both take probably a hundred plus listings this year, as well as their team doing five to seven hundred transactions.
00:11:37.120 --> 00:11:42.159
So it's it's a leadership versus money.
00:11:42.480 --> 00:12:01.600
Um it's it's too often the case, Matt, where that great agent starts to build a team, pays them 50%, 40%, whatever the percentage is, loses their personal production, which is where their pre-tax net profit lives.
00:12:01.919 --> 00:12:02.720
A profit.
00:12:03.519 --> 00:12:05.120
In your personal profit.
00:12:05.360 --> 00:12:06.960
So that's what you taught us.
00:12:07.200 --> 00:12:08.960
I'm so glad I met you years ago.
00:12:09.039 --> 00:12:10.240
You taught me about profit.
00:12:10.320 --> 00:12:14.720
It's not just about how many people know your name and how many deals you do.
00:12:14.879 --> 00:12:17.279
Yeah, it's really about what you take home at the end of the day.
00:12:17.360 --> 00:12:27.600
And how many times have we seen agents in your organization that they go out and start a big team, and then I'll see them two or three years later and they're back to just their own personal production with their assistance.
00:12:28.480 --> 00:12:29.039
That's right.
00:12:29.200 --> 00:12:30.639
It happens all the time.
00:12:30.879 --> 00:12:36.159
Um, what would you say percentage-wise comes from your database of your total?
00:12:36.559 --> 00:12:37.840
It's a large percentage.
00:12:37.919 --> 00:12:41.039
I'm gonna say it's around 80%, 75 or 80 percent.
00:12:41.279 --> 00:12:43.360
So that's one thing I'm struggling with.
00:12:43.440 --> 00:12:51.200
I wanted to ask you about also, you know, you get out, you know, you're a new agent and you're gung-ho, and you don't have anything to do but build your business, right?
00:12:51.919 --> 00:12:52.240
That's right.
00:12:52.720 --> 00:12:54.879
Going out and you're adding to your database.
00:12:55.120 --> 00:13:03.759
Once you've been around 22 years, you know, I've been guilty of kind of relying on my database and not continuing to build the business.
00:13:04.559 --> 00:13:07.519
And um I want to get back to that.
00:13:07.679 --> 00:13:10.480
I was gonna ask your opinion on how to do that.
00:13:10.960 --> 00:13:24.399
Well, first of all, you Pat McVeigh, who you've heard me talk about, the broker I work for 50 years ago, and I want to always qualify that I haven't been in real estate for 50 years as an agent.
00:13:24.639 --> 00:13:31.440
But what I learned then, I'm teaching today, and it seems to be working good for people like yourself.
00:13:31.679 --> 00:13:48.240
Pat McVeigh said there's two jobs that a real estate agent has: prospect every day, talk to people, and preview property every day, because properties on the market are what you need to be seeing.
00:13:48.559 --> 00:13:59.440
So when you knock on doors around somebody else's listing, make phone calls around somebody else's listing, you're familiar with the properties, etc.
00:13:59.919 --> 00:14:05.279
So Pat said all you have to do is prospect and preview, which is all I did.
00:14:05.600 --> 00:14:11.360
And it made me a ton of money as an agent in 1970.
00:14:11.519 --> 00:14:22.799
My average commission check was$270, which was based on the$25,$25,000 to$28,000 average sales price.
00:14:23.120 --> 00:14:36.240
So I my my belief is a team is good, high-level productivity, doing 50,000, 75, 100 deals a year is much better.
00:14:36.879 --> 00:14:42.639
You'll do more deals with the team, but you'll make more profit if you're doing it on your own.
00:14:43.200 --> 00:14:44.480
I like the profit.
00:14:45.120 --> 00:14:46.320
I I'm with you.
00:14:46.480 --> 00:14:50.000
You know, we we only have so many lives to live.
00:14:50.159 --> 00:14:52.720
We have so many listings to take.
00:14:52.879 --> 00:14:56.960
Um, you want to make each day as profitable as you can make it.
00:14:57.200 --> 00:15:03.200
And that and that's what you and all the other people I get to hang out with do, which is the name of the game.
00:15:03.679 --> 00:15:11.919
I appreciate you saying that you haven't sold real estate in a long time, but I I hear there's speakers out there that are teaching realtors but have never sold real estate.
00:15:12.000 --> 00:15:13.759
So at least you've sold real estate.
00:15:14.159 --> 00:15:18.559
Uh, there's a lot of those out there, let me tell you, and no question about it.
00:15:18.799 --> 00:15:29.919
You know, we often hear about the same two complaints um from non-producers to me about our friends that are good producers.
00:15:30.240 --> 00:15:39.200
Um, top producers buy BUI their business by overpricing listings, and second by cutting commissions.
00:15:39.360 --> 00:15:42.159
How how do you handle these objections?
00:15:43.679 --> 00:15:53.279
You know, Mike, it's it's more and more of a challenge, especially since what was it, August last year we had a big change with the commissions within AR.
00:15:53.440 --> 00:15:57.600
So yeah, even more so now I'm seeing the commission cutters.
00:15:57.759 --> 00:16:06.559
Uh like you've taught us, like you've taught me for 23 years, you know, you can you can say no, you can move on and say next and keep prospecting, you know.
00:16:06.720 --> 00:16:10.799
If you can't get that one and someone is is hell bent on on hiring that person.
00:16:11.039 --> 00:16:16.159
I was speaking to someone uh just yesterday in a building where I do the majority of the business.
00:16:16.320 --> 00:16:21.919
It not being um, I'm not bragging, just like I'm the guy, they should hire me for sure.
00:16:22.000 --> 00:16:22.960
There's no doubt.
00:16:23.200 --> 00:16:26.480
And they want to hire their friend because their friend is giving them a deal.
00:16:26.559 --> 00:16:28.559
Uh a deal on commission.
00:16:28.720 --> 00:16:29.039
Yeah.
00:16:29.279 --> 00:16:29.519
Yeah.
00:16:29.759 --> 00:16:33.360
A deal on commission and a real deal on service.
00:16:33.519 --> 00:16:34.720
You know, yeah, exactly.
00:16:34.879 --> 00:16:35.200
Yeah.
00:16:35.360 --> 00:16:35.600
Yeah.
00:16:35.759 --> 00:16:46.399
So you look at those and you think, you know, if you can get it and you can try to bridge that gap, like obviously you do, but I've been around long enough that I I'll tell my wife all the time, we laugh, like, I'll get that one when it expires.
00:16:46.480 --> 00:16:48.879
It'll expire eventually, and I'll just I'll talk to them then.
00:16:49.440 --> 00:16:50.159
That's right.
00:16:50.320 --> 00:16:56.000
Well, I I talked, I'm lucky I get to spend a lot of time talking to people like yourself.
00:16:56.159 --> 00:17:09.839
And it's interesting because um the good agents, as you stated, are willing to pick up the papers, walk away without a listing signed, because they know there's another listing available.
00:17:10.160 --> 00:17:22.000
It's a question is do you want to find that listing or do you want to take it overpriced to cut your commission and really do a lot of damage to you personally and to your seller?
00:17:22.400 --> 00:17:39.359
Because, you know, let's face it, today, with technology being as advanced as it is, they can go online in a matter of minutes, see what commission is being paid on the listing, and decide not to show it because there's not enough commission being paid on the listing.
00:17:40.000 --> 00:17:40.480
Exactly.
00:17:40.799 --> 00:17:46.319
Well, in my market, especially with the condos, there's so much inventory.
00:17:47.440 --> 00:17:51.920
It's just it makes sense to try to chase listings that are going to list too high.
00:17:52.000 --> 00:17:54.640
It's just there's just too many of them out there.
00:17:54.960 --> 00:17:57.279
Why do you already have too many choices?
00:17:57.519 --> 00:18:00.079
Yeah, why is there so much inventory?
00:18:02.319 --> 00:18:09.039
Well, you could probably tell me better than I could answer, but obviously we had that that high during COVID, so it had to come down, and it has.
00:18:09.599 --> 00:18:13.519
And the interest rates have caused a lot of buyers to just sit on the sidelines.
00:18:13.680 --> 00:18:21.039
I can't tell you how many buyers I thought I had who were definitely going to buy a property who still have not a year or two later because they're renting.
00:18:21.279 --> 00:18:28.480
So in a funny way, the rental side of the business has been gangbusters because so many of these would-be buyers still need somewhere to live.
00:18:28.559 --> 00:18:30.160
So we still do a lot of the rentals.
00:18:30.400 --> 00:18:35.519
I'd rather do sales, but you know, you kind of go with you kind of go with the flow, right?
00:18:35.759 --> 00:18:36.480
You think that's right?
00:18:37.200 --> 00:18:37.839
100%.
00:18:38.799 --> 00:18:42.960
Um how many transactions did you do last year?
00:18:44.240 --> 00:18:47.279
You know, I do so we do both the little ones and the big ones of sales.
00:18:47.359 --> 00:18:53.599
So I think last year it was around 45 or something like that total with the rentals and the sales.
00:18:54.160 --> 00:19:00.799
Well, 45 at your average sales price is three times what the average agent does.
00:19:01.119 --> 00:19:06.240
Because the average agent does, you know, 10 to 12 at one-third the sales price.
00:19:06.400 --> 00:19:10.960
So, you know, they must look at you and say, we got to talk to Matt.
00:19:11.039 --> 00:19:12.400
He he's making all the money.
00:19:12.480 --> 00:19:14.720
We've got to find out how he does it.
00:19:15.039 --> 00:19:18.400
So, what is your goal for say three to five years?
00:19:18.559 --> 00:19:22.079
You're a young guy, you know, you still have a lot of time.
00:19:22.319 --> 00:19:23.200
What is your goal?
00:19:23.279 --> 00:19:25.119
What do you want to accomplish?
00:19:26.960 --> 00:19:34.400
So I sat, you may not remember, but I sat with you in your house in Naples years ago, and I told you I want to become a real estate investor.
00:19:34.559 --> 00:19:36.400
I want to, that's what I want to do eventually.
00:19:36.480 --> 00:19:41.759
I want to transition from sales and then owning real estate and becoming an investor.
00:19:41.920 --> 00:19:46.799
So it's taken a lot longer than I've thought, but we're on that on that path.
00:19:47.039 --> 00:19:47.200
Yeah.
00:19:47.519 --> 00:19:57.200
My goal in the next three to five years is to become financially independent, where the rental income from those will cover our normal living expenses.
00:19:57.519 --> 00:20:02.640
And then anything we make from real estate, you know, is is extra, is a bonus.
00:20:02.799 --> 00:20:03.839
So I'm excited about that.
00:20:03.920 --> 00:20:06.160
And that's you know, I'm focusing on that every day.
00:20:06.480 --> 00:20:07.279
That is great.
00:20:07.359 --> 00:20:09.440
That's working on that with Tim all the time.
00:20:09.839 --> 00:20:10.160
Good.
00:20:10.319 --> 00:20:12.160
Who's your coach today?
00:20:13.920 --> 00:20:14.720
Tim Rowan.
00:20:14.880 --> 00:20:16.240
I got a great coach from North Carolina.
00:20:16.400 --> 00:20:18.319
He is great coach.
00:20:18.480 --> 00:20:22.960
He's not only a great coach, he's a great guy, and he's a lot of fun to be around.
00:20:23.599 --> 00:20:24.240
He really is.
00:20:24.559 --> 00:20:26.960
How long have you worked with uh Tim?
00:20:27.519 --> 00:20:28.480
Yeah, I couldn't believe it.
00:20:28.559 --> 00:20:29.519
We talked about it recently.
00:20:29.680 --> 00:20:31.039
I think it's been five years already.
00:20:31.119 --> 00:20:32.079
It just it flew by.
00:20:32.559 --> 00:20:34.000
I would have thought two or three.
00:20:34.160 --> 00:20:34.799
Five years.
00:20:35.680 --> 00:20:36.799
That's interesting.
00:20:36.960 --> 00:20:39.119
So let's create a scenario.
00:20:39.359 --> 00:20:42.079
Um, I'm doing a superstar retreat.
00:20:42.240 --> 00:20:55.119
Um, I've invited a handful of agents, 15 or 20, and I've invited you to speak to them for 30, 40 minutes about how you have done what you've done in Miami Beach.
00:20:55.279 --> 00:20:58.640
Um, what are the two or three things you would tell these agents?
00:20:58.880 --> 00:21:01.759
They would love to have your income.
00:21:02.160 --> 00:21:07.680
They just don't want to go through the pain and suffering of the first few years trying to get it.
00:21:07.920 --> 00:21:10.880
What what would you what would your advice be for them?
00:21:11.200 --> 00:21:11.839
Yeah.
00:21:12.559 --> 00:21:15.279
So I struggle with this often.
00:21:15.359 --> 00:21:23.119
So this would be my, I guess, advice is you have to focus on urgency and patience at the same time.
00:21:23.519 --> 00:21:24.079
That's right.
00:21:24.240 --> 00:21:25.359
Balance them off.
00:21:25.920 --> 00:21:30.079
Urgency, you know, if you can get the appointment today, don't wait for two days.
00:21:30.400 --> 00:21:35.359
If you get the signature from the can from the counteroffer from the seller today, don't wait till tomorrow.
00:21:35.519 --> 00:21:38.640
Like my my coach Tim says, time kills all deals.
00:21:38.880 --> 00:21:41.839
You know, the urgency of not wasting a day every day.
00:21:41.920 --> 00:21:50.720
You know, if you if you start, if a young agent starts with you and they really go after it, in five to seven years, if they do it the way you teach it, they will be a millionaire.
00:21:50.880 --> 00:21:52.240
No doubt in my mind.
00:21:52.880 --> 00:21:55.759
So, but then at the same time, there's the patient side.
00:21:56.000 --> 00:21:59.440
This has taken me a lot longer to get here than I would have thought.
00:22:00.000 --> 00:22:01.440
And I'm still a little impatient.
00:22:01.519 --> 00:22:02.880
I wish it would have gone a lot faster.
00:22:02.960 --> 00:22:04.559
Maybe I'm just a slow learner.
00:22:04.880 --> 00:22:06.640
Um, but there's that patient side.
00:22:06.720 --> 00:22:11.440
Look, you have years like the COVID years, which we never would have thought when COVID started that it would have been a boom.
00:22:11.599 --> 00:22:12.799
We thought the world was over.
00:22:13.119 --> 00:22:22.079
So there was that, and then there's the other side where you have a market like this where rates are going up, and there's you know, things that out that are out of your control, and you just have to be patient.
00:22:22.240 --> 00:22:28.160
And there's there's deals that happen that you have no control of uh things going on in the deal sometimes.
00:22:28.240 --> 00:22:31.119
So you just have to be patient, have the long view.
00:22:31.440 --> 00:22:37.759
So it's it's embracing the urgency, working every day hard, but also you gotta be patient.
00:22:38.480 --> 00:22:48.079
And for those that are willing to take that advice, it's still gonna take, if they're new licensees, three to five years to get established.
00:22:48.319 --> 00:22:51.519
And nobody wants to nobody wants to talk about that.
00:22:51.759 --> 00:23:05.920
And for a veteran like yourself to go from 45 to 50 to say 75 could take only a couple of years, but you have to have the urgency, as you just mentioned, to make that happen.
00:23:06.240 --> 00:23:11.680
Um talk for a few minutes about the listing process you go through.
00:23:11.920 --> 00:23:15.920
Do you pre-qualify the majority of your sellers?
00:23:16.240 --> 00:23:16.720
Uh-huh.
00:23:16.960 --> 00:23:18.799
So thank you for asking.
00:23:19.359 --> 00:23:24.960
When um when I was earlier in your system, I followed that five-step process verbatim.
00:23:25.039 --> 00:23:26.480
I would, you know, I was lucky.
00:23:26.559 --> 00:23:29.839
I did a lot of phone uh lessing listing presentations, so it was easy.
00:23:29.920 --> 00:23:33.200
I literally could walk around my office and read the script to them.
00:23:33.440 --> 00:23:38.000
Um, as I've gotten older, I I kind of just rely on these relationships that I've had.
00:23:38.079 --> 00:23:41.839
And I've I gotta be honest, sometimes I get away from the process.
00:23:41.920 --> 00:23:49.119
So that's why I go back to your retreats often, you know, and I see someone like Dan Mum, who is an amazing listing agent.
00:23:49.759 --> 00:23:52.160
But and say, and I'd say this to him if he was here.
00:23:52.400 --> 00:23:53.599
He's not doing anything special.
00:23:53.680 --> 00:23:57.039
He's just doing your system, he's following your script.
00:23:57.599 --> 00:24:00.640
And he's just he's just doing what you're teaching us.
00:24:01.039 --> 00:24:06.160
Um so but I I I do prequel, I do send out a pre-listing packet.
00:24:06.240 --> 00:24:09.440
Um, I I try to follow your system as best I can.
00:24:09.759 --> 00:24:10.240
Good.
00:24:10.880 --> 00:24:14.559
And non and non-ego, non-ego like you taught me years ago.
00:24:15.039 --> 00:24:18.079
How about the listing presentation itself?
00:24:18.319 --> 00:24:24.799
Um ours is scripted, it's question-based, it's not very challenging to learn it.
00:24:24.880 --> 00:24:28.480
You can virtually read it to a seller and win.
00:24:28.640 --> 00:24:32.400
How much of the presentation do you do you actually use?
00:24:32.880 --> 00:24:42.640
Yeah, so like I mentioned just now, I would say years ago I probably used 80-90%, and I've gotten a little uh lazy in my old age, I guess.
00:24:42.720 --> 00:24:52.000
I you know, I can I can you know a client that I know well, especially a past client, I know I'm gonna get the listing, or I think I am, but you know, you lose some.
00:24:52.240 --> 00:24:56.160
You know, you can just call and say, hey, I already know your situation.
00:24:56.319 --> 00:24:57.759
You want to just talk to the comps?
00:24:57.920 --> 00:25:01.119
Um, and that's probably a mistake to not go through the whole thing.
00:25:01.440 --> 00:25:02.079
Yeah.
00:25:02.480 --> 00:25:20.000
The more experienced you are, and time is on your side, um, and the more you're trying to list property, which is your your favorite thing to do, you're gonna spend more time with people that you know well and have probably listed or sold their properties for them.
00:25:20.319 --> 00:25:23.279
You communicate with them through your database.
00:25:23.839 --> 00:25:40.720
But honestly, I tell agents all the time experienced people working with past clients are not as likely to use the scripts because you you can cut the time down that you're investing in a presentation dramatically.
00:25:41.039 --> 00:25:41.920
That's right.
00:25:42.640 --> 00:25:46.079
So, any questions you have from I do, I do.
00:25:46.799 --> 00:25:55.039
So selfishly, I want to learn from the from the real estate investor, Mike, because that's that's the kind of path I'm on.
00:25:55.440 --> 00:26:00.720
When you saw when you saw a buyer's market like we're in, we're full-on buyer's market here, lots of inventory.
00:26:00.799 --> 00:26:01.519
I think I looked it up.
00:26:01.599 --> 00:26:04.160
We have a between a 16 to 17 month inventory.
00:26:04.240 --> 00:26:05.920
It's a fantastic time to buy.
00:26:06.160 --> 00:26:09.920
Yeah, of course, so many seller buyers are just fearful of buying.
00:26:10.000 --> 00:26:13.200
We have to do a better job of explaining to them that they should.
00:26:13.519 --> 00:26:16.240
What what were you as an investor looking for?
00:26:16.400 --> 00:26:19.680
What was your strategy when you saw opportunities like this?
00:26:19.839 --> 00:26:23.920
When every every other buyer is like, no, I'm not buying, it's it's too scary right now.
00:26:24.000 --> 00:26:25.680
What did Mike Ferry do?
00:26:26.079 --> 00:26:31.359
Well, I was always looking for properties that I could do one of two things with.
00:26:31.599 --> 00:26:42.000
Turn them over to the next buyer in 12 to 18 months by doing a minimal amount of rehab work to bring it up to bar.
00:26:42.240 --> 00:26:43.200
That's number one.
00:26:43.359 --> 00:26:52.400
Number two, I was looking for properties that I could create reasonable cash flow, because cash flow is the name of the game.
00:26:52.720 --> 00:27:02.160
So um Sabrina and I looked for properties that uh, let's say the property in Las Vegas is listed at 475.
00:27:02.559 --> 00:27:08.000
Um, we're we're willing to pay 475, put 25-30%.
00:27:08.480 --> 00:27:11.119
The more you put down, the higher the cash flow.
00:27:11.359 --> 00:27:18.400
And so we're looking for properties that either A we can turn over in a reasonable length of time.
00:27:18.559 --> 00:27:23.759
Um, I've done a lot of work with Dan Mum, and I've done a lot of work with John Sullivan.
00:27:23.920 --> 00:27:25.440
They work in the same office.
00:27:25.519 --> 00:27:34.240
And what first thing I told them, Matt, when when we started working together is how many homes do you own and how much do you owe?
00:27:34.480 --> 00:27:37.279
And how quickly can you pay them off?
00:27:37.440 --> 00:27:37.759
Yeah.
00:27:38.319 --> 00:27:47.759
Aren't you better off owning five homes that are free and clear than owning 10 homes that you have an 80% mortgage on it?
00:27:47.920 --> 00:27:48.079
Yeah.
00:27:48.319 --> 00:27:51.440
So, but part of that also is age.
00:27:51.599 --> 00:27:53.119
You know, I'm 81.
00:27:53.519 --> 00:27:58.240
My time for investing is shorter than yours is.
00:27:58.480 --> 00:28:03.200
Um, but urgency is the name of the game, as you mentioned.
00:28:03.279 --> 00:28:03.519
Yeah.
00:28:03.680 --> 00:28:06.960
But I I looked for those two things on a property.
00:28:07.359 --> 00:28:07.680
Okay.
00:28:08.559 --> 00:28:12.000
How quickly can we make a profit that is reasonable?
00:28:12.400 --> 00:28:26.319
And second, um, if we're not buying it to make a profit quickly on our turnover, what can we do on the expense side to make it profitable and create cash flow?
00:28:26.720 --> 00:28:28.799
You know, thanks for that reminder.
00:28:28.960 --> 00:28:30.880
And thanks for pushing on paying them off.
00:28:30.960 --> 00:28:36.000
I paid off my first one last year, and it's nice to just know that's just forever, that's forever income.
00:28:36.079 --> 00:28:42.720
If I just keep it, it's literally forever income that I can have till I'm 81, or I can give it to my daughter.
00:28:43.039 --> 00:28:43.920
That's right.
00:28:44.400 --> 00:28:50.240
Well, we're we've been talking for almost 30 minutes, which time flies when you're having a good time.
00:28:50.480 --> 00:28:50.880
Absolutely.
00:28:51.119 --> 00:28:52.640
Um, when will we see you again?
00:28:52.720 --> 00:28:53.039
A production.
00:28:53.519 --> 00:28:56.480
We're coming out for a prospecting clinic next month in November.
00:28:56.640 --> 00:29:00.400
I think it's like the 15th, 17th, somewhere around there.
00:29:00.480 --> 00:29:00.640
Yeah.
00:29:00.799 --> 00:29:04.400
And I'm gonna I'm gonna try to uh play Shadow Creek when I'm out there.
00:29:04.480 --> 00:29:06.720
I'll talk to John and see if he still has that connection there.
00:29:07.119 --> 00:29:10.960
Well, uh, let's try to arrange a golf game if I'm in town.
00:29:11.200 --> 00:29:12.079
I'd love to.
00:29:12.319 --> 00:29:20.960
Yeah, and we'll get John to play because I tell everybody that John Sullivan is the easiest money you can make on a golf.
00:29:23.759 --> 00:29:25.440
Mike, he's he's probably gonna watch this.
00:29:26.880 --> 00:29:36.720
We just spent an evening with he and his family, and we had a lot of fun laughing about the fact that he hits the ball a mile, and sometimes we can find it.
00:29:37.519 --> 00:29:40.880
But he's a way better um football player than us.
00:29:41.119 --> 00:29:42.079
Yeah, that's right.
00:29:42.319 --> 00:29:43.599
Well, thanks for your time.
00:29:43.680 --> 00:29:49.519
I'll look forward to seeing you in a few weeks and uh enjoy the fourth quarter a lot.
00:29:49.680 --> 00:29:50.000
Thanks.
00:29:50.400 --> 00:29:50.640
Thank you.
00:29:50.720 --> 00:29:51.440
Thanks, Mike.
00:29:51.599 --> 00:29:52.960
Have a great day.
