Real Estate Classes: bad training leads to high wash out rate (via Periscope)

Real Estate Classes: bad training leads to high wash out rate (via Periscope)

Historically the wash out rate for realtors is somewhere between 80-85%.
A little higher in some years a little lower and other years. So somewhere around
80% of all new agents drop out of the business or fail in the
business or leave the business for some reason within their first two years. With
that being the case and look up and down the line at the training that’s offered
by your brokerage or by other folks I don’t care who it is I don’t care what
company or what doesn’t matter what your brand is, what color it is, I
don’t care about that. Just think about this, if the training is the same program
that they’ve been doing for years and the washout rate is 80 percent, meaning that only about 20 percent of the people that you’re gonna see sitting in that room
are going to be successful and or even stay in the business (we’re not talking
success) we’re just staying in the business. Don’t put a whole lot of weight into
that training that you’re getting. There’s a lot of nuts and bolts and
things that are helpful but it’s not the thing that you need to focus on. Focus in
on being a businessperson first. You are in business and your business is in real
estate. If you focus on running a business which means attracting and
retaining customers, taking care of those that you have, taking making sure that you have processes and plans in place to deal with whatever situation arises that
are adaptable and scalable across a wide range of circumstances…then you’ll be
successful. If you go to real estate class and get all hemmed and hawed about how to fill out chapter 3 on page 2 of the contract good enough information but you
need to be spending your time trying to figure out how to run a business first. DoggieDog, you just passed
your exam what you look for in a broker? Real simple you need to look for a
broker that has a helpful attitude. And is available and accessible to you. Everyone will say that are most agents
will going hey we have this we have that but the minute they start saying hey
we’re going to put you in this training program, we’re gonna set you up like this, we’re
gonna make you do this, what they are doing in fact and they’re not trying
to do it mean or or just as they don’t know…they’re trying to put their goals
in you. They are trying to form your goals around what it is that they’re doing. So
they’ll take their plan, “this plan has worked for so many agents over so many
years”…but the wash out rate is 80 percent! So we’re gonna put you in that same training and then we’re going to hope that it works out for you. So really you want that broker that says,
“no I like to meet with you, I’m gonna sit with you, you want that mentor, you want to be able to pick your mentor. John Frederick, I’m with Keller Williams Leesburg. But you want to be able to pick that broker and that you want to be able to
pick your mentors. Don’t just get assigned a mentor. Talk to some people in the office and before you determine who your mentor is gonna be, figure out the
personality types and the type of business, and the type of person that you
want to be. There is nothing wrong with the little Susie grandma who likes to
(awesome thank you for that HMCKaw) but there’s nothing wrong with a little
grandmother likes to sell their real estate. That’s wonderful that’s a
fantastic thing. But understand that if you are a little bit more of a pitbull
the two of you probably aren’t gonna mesh on a lot of your things. So to
get a good mentor you need to find a person and quite frankly I look at
several folks for several different things. I know that this you know very
experienced broker specializes in this area that’s who I’m going to when it
comes to… when I have a question about that. And when it comes to this area or
that specific subject I know where to go. So I dont per se have a a singular
mentor that I go to. I have a bunch. And quite frankly a lot of them aren’t in this office
or even in this state. So reaching out on social media and doing some of those
things that I’ve developed some relationships with agents in Vegas and San Diego
and Texas and Tennessee that I really like their business model. I like what
they put out I like how they talk. I don’t like the…I don’t think anybody
that talks about (hey Brazil) I don’t like any agent that talks about “buyers are
liars” or “my clients are idiots” I don’t have anything to do with you because
your clients may not understand what it is that they want. They may not be liars, they may just not understand or not know what
they need or what they want. And as part of your job is to help them do that. So
there are some certain traits that I look for and how you run a business and you act and how you run yourself. Taking full responsibility for yourself and
your actions, not to say that aww “the market is down” or “I didn’t have any people at
my open house” so it’s ….. negative people equal negative transactions. Yeah
absolutely. It’s it’s not just the negativity though. You know everybody
kind of gets their little down in the dumps, I certainly do, but the thing about
it is the thing that I’ve noticed over my over my life and my career as I do I
will hit bottom, man this is really tough but the thing is my bounce is outrageous!
That day literally the day after a man I’m so high I’m flyin high because I got
down to the bottom and my view changed. And I’m not talking I’m like
depressed and running around crying over you know glass of wine that is not the
case. I just get, you get so much goes on in your head was running a business and
doing all these different things and family, kids, the whole nine’re going ok what am i doing? What have I accomplished? Am I going in the right direction? And you start questioning yourself. But the
bounce is the most important thing and you bounce back higher than ever because you go wait a minute…I see things clearly now and I can’t quit! There’s no such thing as quit! It’s my
responsibility to get out there and get going! So that kind of went off the original subject but just make sure that when you’re looking at new training for agents whatever your
situation might be, just understand that how the brokerage model works. At
least with the current brokerage model how the… how that works. The more
people that get in the door for that broker or for that company, the more people will….more people make
them more money. So you have a lot of agents it’s a law of numbers. It doesn’t cost a
brokerage very much to…. it doesn’t cost very much to have an agent come in to the office. In most offices or a lot of them you pay office fees anyway, so you
do all these different things, and then the agent goes out and especially in this area with an average home prices about
$450 give or take. $450,000 so that commission that comes in more than covers most of what you paid for in that year. So you’re not necessarily… your fishing, you’re trying to put a lot of lines out there and seeing which one comes back. So (hey SoCal) yeah dollars 450,000 dollars average home price out here. And its average so
there’s some things that really skewed that there really aren’t many places
that are less than that. See what is your best pet peeve oor
biggest pet peeve about a title escrow company and real quick on the Tom question I don;t have any idea how that converts to Euros. Unfortunately do not know the conversion rate. Biggest pet peeve he was a title escrow company I want those that are proactive and if I am proactive so I
come out and I wanna talk to you about what you’re gonna do in the process. I
need to be able to inform my clients exactly what’s gonna happen. The worst
thing that I can have my client’s do is to be sitting at home wondering what is
going on with their transaction. I want you or me don’t care who it is but one
of us is gonna talk to our clients explaining exactly what’s happening now,
what’s happening next, and who is responsible for the next thing. That’s the key, key point so if we’re in the middle of a transactional of a transaction and
financing is the thing that’s holding us back at this moment time, I want my
clients to know that ok right now our biggest focus is finance. When we get done with this it moves to that but right now we’re focused on finance and the person who’s
responsible for getting that finance done is….(fill in the blank). Maybe you, maybe the clients need to get some information back to the lenders. Maybe the lender is
holding something up, you know it’s it’s stuck with them for whatever reason. But
that’s where I wanna know and have a title or an escrow company that has a
plan for that, that has a very clear…. very clear objective of what they’re getting
ready to do it how the process works and where their clients get into that is
really something that Ilook for. As far as a pet peeve I don’t like the ones that
market themselves a little bit too much. As you know you can be the greatest
thing since sliced bread but it from the title company really comes down to can
you close? Sometimes a lender will hold a deal up and quite frankly the way rules are right now they’re in…with the new closing
statements coming out now in October they’re kind of in a scramble mode
so there’s part of their time is divided between getting their current client
situation taken care of and also having you know preparing for that, which puts a lot of new pressure on them to get things done and a lot of time frames that they haven’t had before. Good, bad, I don’t know we’ll see. So clear title and get the job done, yes that’s that’s our job!
That’s right. So we we are transactional in nature. We are in charge of the
transaction and there’s a big difference between being involved in a transaction
and leading the transaction. I do not like I even have a call log or
communication log…so when I talk with a client, I put down the time and date, what
we talked about, and what the next step is …why did I talk to them, right? I talked to
them because our next step is fill in the blank. And then who is responsible
for that…Thanks guys follow me here Twitter. Check out our YouTube channel or and I gotta get going…gotta go work! Thanks everybody, thanks for watching… see you next time.

One thought on “Real Estate Classes: bad training leads to high wash out rate (via Periscope)

  1. Love all your videos but I think this is probably one of your best to date.

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