Notes about “Meet Kevin’s Guide to Real Estate Wealth – Sales”

Practical experience and career advice from Kevin’s 10-year career as a real estate salesperson and later agent. Builds in big parts on Kevin’s investing course.

If you somehow found this page without being a course member, sign up. The notes can’t replace the course content. This course also has a number How-Tos that can only really be captured in video.

These are my personal notes and comments, bullet point style. I hope they’re helpful to you as a keyword reference. If you feel something is amiss, please reach out.

(1) Welcome

(1.1) intro
Psychology of sales
Adjust course video speed as preferred
Watch in order

(1.2) psychology
The good life
Happiness minimum vs goal
Helps to keep balance, minimum vs beyond
Sales has no real limit, but going extreme will consume you
Keep in mind “no” is an answer too, relativity is bad
Don’t calculate your commission up front

(1.3) future of the agent
Relationship business, personal
automation helps, especially transactional activity
Agent is advisor, empowers good decision in client, not just puppet
Provide knowledge

(1.4) “providing more”
MeetKevin trademark
High-quality advice, service, education
Personalized suggestions, leaving the door open to options
Surround yourself with valuable network of vendors

(1.5) “no-pressure agent”
(Avoid neediness)
MeetKevin trademark
Don’t be too anxious to get that client, deal, etc.
There’s always a “next”, move on, you’ll lose deals and clients no matter what
Be at peace with yourself, educate clients but leave their options open

(2) Mindset and Brand

(2.1) millionaire agent mindset
Don’t be annoyed that others get listings in your neighborhood
“Next”, success will come, misery lowers your performance

(2.2) don’t quit your job
Part time agent real option, especially for a start
Get in front of people, neighborhoods, broker tours
Go full-time once RE makes you more, note it’s not steady
Reserve 6-12mo and emergency fund

(2.3) should you be an agent?
If you like solving people’s problems, on the spot
Take pressure and problems off other people, at odd times
Prioritization, tracking, schedule people for later unless critical interaction

(2.4) communication musts
when client polls for updates, you failed
People MUST trust you will update
Stay in control, make commitments (about updates) and stick to them
May need to say no update, if it is available already forward after delay
Be a few steps ahead, process and prepare information, expect questions

(2.5) building your personal brand
Infographics and brokerage are not personal brand
Personal brand should be transferable
Strong reputation, also online, your pictures and face should rank first
Authenticity, personal

(2.6) graciousness, neediness
Avoid fake nice, ego deflection of blame, sarcasm
Avoid adversarial, stressful
Figure out how to fix problem, money can often fix the issue, call people and change logistics
Taking the blame – and action – goes a long way
Also make a copy of the house key early, just in case

(2.7) “providing more”
Actively solve problems rather than push them off, communicate with others for alternatives
Reduce stress of transaction participants

(2.8) never calculate your commission
Mind drifts to loss mindset, instead keep transaction moving

(2.9) real estate as side hustle
Doable, matches with slow career start
Set aside daily time for advancing career
build savings

(2.10) daily routine
Chaotic, unorganized, long
Clients and vendors reaching out constantly at odd times
Set aside daily growth time slot
Lead followup, marketing, planning days, maintain balance
Honesty in communication matters

(2.11) learning curve
Mentoring with broker makes it relatively easy, learn on the go
If you don’t know, take control via commitment and respond in time
Sticking to commitments is most important to build trust
Communication and human interaction is critical

(2.12) cons of real estate
Unpredictable business, variance, recession
Stress, very emotional interactions, at odd times, need thick skin
No routine, pro-active important, reactive mode fails over the long-run

(2.13) shadow agent
to start, find a successful agent to shadow
Learn from interaction, combine this with knowledge earned in course
Adopt parts of others’ strategies, successful for specific market

(2.14) don’t be a secret agent
Take ownership of real-estate agent, put yourself out there
Car wrap, build familiarity
Best listings come from your own neighborhood

(2.15) how to stand out
Your knowledge matters a lot
Educate and empower clients, handle contractors, builds respect
General education about real estate context matters most

(2.16) be different
Blending in isn’t helpful, avoid generic looks
Brand “different” and “better”
Speed and voicemail, text and email voicemail, smile when talking
Custom url and email
Brand real, authentic, copying others isn’t the only way, sympathy and character matter in sales
Brand car partially wrapped
Dress code, dress up not over, depends on properties and neighborhood
commonality with audience
Engagement of media and fliers, clickbait okay but information too
Signs to stand out
Events with shock factor (lol), halloween party

(3) Brokerage models

(3.1) residential vs commercial
It’s all sales, principles are similar
No need to close door, becoming expert in various areas possible
Residential chaotic schedule, emotional, faster start, more competition, loyalty
Commercial more structured, sophisticated clients, higher expectations, slow start
No MLS for commercial (loop net), commercial brokerage more bureaucratic
Dabble in both

(3.2) finding a brokerage
Most beginners check commission and fees covered, not so important to start
For new agent with <50 transactions, find in-person mentor instead, transaction support
Getting deal done despite all the noise
Boutique brokerage with personal interaction, training and mentoring
Observe transactions
Growth after getting training and connections, commission split
Amenities are fluff

(3.3) expectations of broker
Broker should be able to support transaction
Experience, and interaction with clients if necessary
Help with advising clients, cheer leader (?)
Legal advice is secondary

(3.4) your broker’s expectations
Fill out paperwork fully
triple check, interrupt current flow, take break then review again
Stuff always goes wrong, this catches it

(3.5) online brokerages, eXp
eXp multi-level marketing, no mentoring, maybe for experienced agents
Own broker license better if split is issue
In-person valuable in the beginning

(3.6) becoming a broker
No fees to anyone, control, likely end-game when successful
Employees, but be careful
Insurance is critical
Learn the most you can first

(3.7) mentor vs team
Team, main agent with lots of reputation, other agents work for, like assistants
Team model helps busy agent to scale, not to mentor and help you
Mentor need not be compensated monetarily, learning

(4) Communication

(4.1) communication must
Everything should end with mission (call to action, request), even if your own
When possible, create commonality
Create hope by offering approaches, “getting more information” if nothing else
Verbal gratefulness, even if it’s their job anyways

(4.2) followup communication
List of active clients, cycle through for updates and keep communication going
Feeling of ongoing work for each one

(4.3) scheduling is critical
Folio-for-gmail, use custom domain
Automated scheduling and emailing with other parties in deal

(4.4) pre-transaction communication
Most important for smooth transaction
create trust and confidence in your abilities, gives you control
for sellers, timeline, potential vendors and improvements, advise should come from third-party
Matter-port scan also helpful for getting bids and proposals
List of things we could do, minimum to all potential improvements
Offer options, rather than forcing, creates confidence
For buyers, expect missing out on some deals, early okay but not necessary
Talk through properties to ensure matching quality expectations
New construction disclaimer (ability to represent), open house disclaimer (farming clients)
Handing business cards effective to back off other agents

(4.5) transaction communication
Set expectations about what’s the next step
Conditional loan approval, underwriter, analyze loan conditions
Appraisal, restricted in data, may be low, handle that later
Home inspections, sellers out of house, keep re-selling during escrow

(4.6) post-transaction communication
Stay in contact, some engagement, follow up with clients and other agent
Be okay handling some remaining things

(4.7) sales scripts
May be great to handle the moment, especially small transactions
not great long-run in real estate
Think beyond transaction, empathy and authenticity, be genuine
still be prepared for common objections

(4.8) “what’s your fee”
“transparency and savings are important”, seller’s motivation matters to decide
What are the seller’s desired terms? Circumstances and property condition
In-person visit of property for customized marketing strategy, plus fees
Much easier in person, on the phone usually screening only

(4.9) “cancel the listing”
Totally understand your frustration, find seller’s motivation again, get out of line of fire, not a problem to cancel … later
marketing push for time-limit, ultimate broker tour and open-house
“Why not earlier?” Listing rejuvenation
Renting? matterport for property manager tour
Complaints? Options and/or quotes for fixes
Blame usually on third-party, market

(4.10) “how do you market”
Not a list
No one-size fits all, unique features of property
Demographic and targeting, medium, to maximize profit, “yes and all these other things”

(4.11) reduce commission
Never compromise on value I can provide, not congruent with negotiation strongly for seller/buyer
Something else to agree on in the end, we can save money on fees based on connections

(4.12) I’m interviewing
Sounds great, would do the same. Now what matters to seller?

(5) Prospecting and Leads

(5.1) open house value
Avg USD 1500 worth of business, indirect referral, can do 1-3 per week
Face-to-face conversion much easier, investment knowledge valuable
Everyone at open-house is interested in real estate, no matter what they say
Bring food and music

(5.2) where to find open houses
Local networking event, reach out to agents
Offer to hold, provide feedback, clean check, price reduction
MLS vacant houses, call listing agents, best if they know you
Some don’t want to, just call next one
Avoid creating head aches, lock property, general liability insurance

(5.3) first impression matters
Impression should be different and better, professionalism
dress code matters, overdress appropriate for neighborhood

(5.4) music license
Avoid car dealer lot vibe, silence
Depends on demographic, 35+
Hand-select list of reasonable pop-songs, recognizable, likable
bluetooth speaker, in the background, Business music license may be required

(5.5) avoid aggressive greeting
Sign in sheet is intimidating, skip it
People who are interested will be open to followup later
Keep 10-15ft distance from front door to avoid forcing
Smile, purposefully break eye contact, minimize pressure, it’s your space anyways
Property intro is an option, keep it short with a bit of specific info

(5.6) ambience
Depending on outside temperature, set heater and air conditioning
Turn on all lights
Toilet use should be possible, notes for non-working stuff
Remove garbage

(5.7) edu signs
Engagement hack, somewhat self-explanatory, ice breaker close-ish to agent
Investing knowledge
RE cycle, direct offer, etc.

(5.8) invitations
Flyer for neighborhood, 150 doors/hour
Color print, address, basic info, invitation, call to action, picture and contact info

(5.9) converting conversation
no need to stress out, if you have an ongoing conversation stay focused
Invite interaction, avoid being occupied with electronics
Build basic rapport, what are you looking for? More details, open questions
Closing questions late, can I send you relevant info? Contractor? have a realtor?, preapproval?
Get realtor info if already taken, reach out to agent to build reputation
Followup same day

(5.10) must know info
Schools, median DOM, pending house offer count, expireds, comps

(5.11) what you’re holding
Knowledge, help make money, reputation
Avoid sleazy, client success stories instead

(5.12) The Branded Neighborhood Expert
Even if not the most listings
Neighborhood details, number of lots
Branding via signs, cars, flyers
Builds trust via familiarity

(5.13) loan programs
Be familiar with loan programs
Special programs, downpayment, options
Okay to do math in-place

(5.14) farming
Be in front of people, long-term, branding, flyers/direct mail
Cash in on reputation over time
Target <500 properties, slight above median, add later, avoid over expansion
Door knocking an option early, pass flyer

(5.15) drive farm
Wrapped car, drive around, simply greet people
Recognition, even without actual listings

(5.16) every mailer
Brand, neighborhood expert, getting to listing appointment interview

(5.17) every door direct mail
EDDM, exact same letter, USPS discount service
Match farm and carrier route
Twice per year, larger, branding only, after everything else

(5.18) facebook ads
Tough, branding only, promote open-houses, conversion in person

(5.19) best CRM
The one you use, the cheapest
actual tools typically too many notifications and too complicated
Spreadsheet real option, sortable priority and last contact dates
Priority, name, last contacted, contacted how, contacted by whom, buyer/seller, expected action date, notes/desires, contact info, address extra, other flags

(5.20) FSBO targeting
Good practice, may not convert
On call transparency, ask whether they collaborate with buyer agents
Property preview, offer to take photos and share when there
Establish rapport, follow up, open house

(5.21) door knocking
Business casual, go easy on shoes and tie
professional but at ease, minimize your own pain

(5.22) door knocking goal
Not looking to convert on the door
Get brand and reputation out there, neighborhood realtor
“When are you planning to make your next RE transaction”
Face-value helps develop business most

(5.23) door knocking tracking
Track properties and people you visit
Map view of neighborhood, comment box annotation
Document potential clients, take notes, transfer to CRM if promising

(5.24) door knocking frequency
Don’t become annoying, if answered wait at least 3mo+, if not then more frequent visits okay
Alternate with flyers, open-houses
Don’t overwhelm yourself, chose small farm first

(5.25) expireds
Previous agent didn’t get it sold
Either marketing or price
Seller always thinks it’s the agent’s fault
Get the recent ones, either be first or follow up 4+ weeks later, 18mo window works for Kevin
stand out important
Kevin got (cheap) for sale signs, pictures, bonus for photoshop for sale sign

(5.26) expireds followup
Wait 2-3weeks after standout outreach, then call or door knock
When listing expires people either re-sign immediately or want a few weeks break anyways

(5.27) drive for dollars
Run-down houses easy to find, yard and condition, fixers
Water bills, probates, okay but farm in-person most effective

(6) Advertising

(6.1) local sign shop
Signs and vehicle wrap, use local printers and designers to get it faster, connection

(6.2) online printer
When ordering stationary, shop online, crazy competition, high variance in price and quality
Call them to price match and compete

(6.3) stationary design
Don’t do it yourself
Crowd spring, fiverr, upwork
Choose ballpark price
Freelance designers, auction
Get your photo on there

(6.4) most important stationary
2 things, Business card, workbook of services offered and pitch

(6.5) coming soon advertising
helps close listing contract, coming soon – for sale sign
“Create awareness, sell fast”, get quotes during period
Online listings as “coming soon”

(6.6) ad funnels
Listing presentations
Click funnels (.com), landing page, opt-in to emails or text, call to action
Expensive and time consuming, mainly to close on listing
pixel tracking, run ads

(6.7) ad retargeting
Tracking pixels, allows targeting people with pre-existing interest
(Online advertisers are creeps, use tracking blockers)
Facebook pixel plugin

(6.8) flyer hacks
Color flyers and black-white flyers
Kevin used black-white, hand-stamped flyer “please don’t throw me away again”, crumbled, under mats, weeks later
bring a cart

(6.9) email musts
always keep your inbox clean, don’t delete but archive
Prioritize, track todos externally
Gmail is amazing
Todos as daily goals, high and low priority, will be re-ordered actively
Poll based system rather than push, reminders

(6.10) email hacks
Decide, unsubscribe, delay/todo list
Don’t get yourself marked as spam by sending junk mail

(6.11) email signature
Avoid junk and images
contact info, immediate call to action if contact needed, branding, license numbers, link to website

(6.12) email list
Use CRM for outreach
Mail chimp for large broadcast
Stars in subject (?!), market updates
(Partially) personalized email to leads, use your CRM notes for personalized intro or finish
Rapport and education, it’s about relationships
Don’t farm email lists, gets you marked as spam

(6.13) car advertising
Builds familiarity, face suggested, free advertising via presence
Clean design wins, for sale sign, cut as much redundant slack as possible

(6.14) billboard and tv
Real expensive making and placing it
(is it still a thing?)
Kevin’s Biff ad didn’t convert, great for branding only, in-person converts
Instead just maximize in-person interaction

(6.15) ultimate broker tour
Hosting agents in a great mood, build reputation with other agents
Maintains your relationship with other agents

(6.16) social media in real estate
Not so much about showing off listings and infographics
Remember it’s about relationships, branding yourself as a person
Website can have the data

(6.17) twitter
Polarizing content, consider cost to reputation and professionalism

(6.18) youtube
Not so great to convert clients, put out your brand
Some personality

(6.19) instagram
Daily story to show personal action and dedication
humanity matters, not just professional work

(6.20) facebook business page
Closing pictures, throwbacks
Educational okay, opinion

(6.21) lead lists
Don’t do it, they’re cold
Education and in-person way better

(6.22) website and SEO
Yelp, Zillow, usually first
Importance of top ranking for geo maybe not as high as it used to be
WordPress great, blogging and content helps
Provide plenty of text for indexing, keywords in sentences, schema text
Top intro video

(6.23) Kevin’s new website platform
Still prototype, square space, single page, way easier than wordpress
Media content, testimonials, and social proof
Before and after photos

(6.24) analytics and website priority
Enable google and Facebook tracking, targeting later
Not that important
But having a website is

(6.25) white pages
Reverse address search to find property owners
Cheapest option for address to number search, get data and cancel immediately

(7) Sellers

(7.1) listing appointment
Having for sale sign creates notion you’re producing
Correct questions are important, what’s the motivation?
On phone or in open house, why, where, any defects?, want to rehab? what price thinking?
People like talking
See where people are entrenched, keep notes, prepare strategy
If rehab, offer getting quotes, returning to house in-person later dramatically increases odds of getting the listing
Preempt irritation by suggesting to bring comps, asking for minimum price “for curiosity”
Did they check with CPA yet? Gauge seriousness

(7.2) arriving at appointment
It’s a show, arrive 10min early, park across street, look busy in view of the house, don’t go in early
If you’re running late, communicate, give them updates
Ring bell 1min early, knock, the side-ways
Shoes on/off? Respect
Take control or initiative, ask to sit down and talk first

(7.3) icebreakers
Have notes ready, listen and take notes, re-iterating questions helpful
Fact finding, keep ready for later, take picture of notes
filling a page looks good too
Building rapport, don’t keep it too long, 15min max

(7.4) property tour
Keep notepad ready, upgrades, defects, date work done
“Caring and documenting”
Have quotes yet? Want quotes? No obligation
They’ll ask for opinions. Tricky! you’re not in yet, suggest to take pictures to get best strategy

(7.5) the strategy
Open dialog, “comps are not our best friends right now”, wait and listen
“The market suggests … I think this is low, considering you did …”
We could do work to maximize return, but might miss market move
Conversation about what they want to do or not
Set up “push hard on price but might hit deaf ears”
“Want to find that one buyer that doesn’t want to any work …”
“Want to find that one buyer that wants to do the handyman work …”
Moving towards closing
“Want to sell as high as possible, is going to help me get clients too”
“Recommend to set up 3d tour, handyman, cleaning – I have the vendors”
“Coming soon marketing 4-6weeks, sign and online, create excitement, no showings yet, want multiple offers”

(7.6) fees and close
Get contract paperwork ready, “only until you’re ready, just a walkthrough”
important terms highlighted
“commissions”, rate, split with other agent, plus fee estimates (1%)
“Sale proceeds”, “want to run this at what price?”, include go-away money, “how much do you own”, net estimate
Any questions? Bring extra copies too
If not ready reiterate next steps, prepare quotes and strategy, get back within 48h
“For me to work for you I have to be fiduciary by law”, “coming soon paperwork”

(7.7) fee negotiable
“Don’t unfortunately discount my service”, “bad precedent for me negotiating on your behalf”, “cannot be weak, work really hard to make you back every dollar you invest”
“Can offer discounts if representing both sides, 1% less if no other agent”

(7.8) meeting followup
Email thank you, copy of paperwork, reiterate the next steps
Once you follow up, provide quotes, get “coming soon paperwork ready”

(7.9) check early and often
If set up with folio, check, keep dates updates, so that reminder don’t go out incorrectly

(7.10) listing remarks
Simple story, appeal to emotions and feelings, walk through house, highlight good and unique things
Area for “focus of attention” is the bad stuff
Don’t skimp it matters to some people

(7.11) photography
Always hire professional photographer
“photoserge” for interior on youtube for DIY
It’s mostly about photo adjustments
Drone short
Cost USD 250ish to hire out

(7.12) photography tips for DIY
Canon 80D now reasonable, wide-angle lens, 10-16 lens, USD 1-2k used
Stand in the corner, never shoot back of furniture
Waist-height camera, or 10in above counter tops, with tripod
Get photo as good on camera as possible
Use flash on camera plus secondary with umbrella
Lights on, toilet lids down, clean up, pillows straight, change light bulbs if necessary

(7.13) 3d tours
Kevin’s fav
Offer before and after 3d tour
Always have public link ready, before and after even better (avoid showing fixers to prospective clients)
If done frequently get your own, it’s USD 5.5k, also big sales power
Give it to people to play with, wow effect

(7.14) broker tour and open houses
Once listing signed, schedule work and photo
First weekend is private showings, get their feedback and reaction
Open house on second weekend (not in bay area)
Broker tour 2nd week
“Stay fresh“, life cycle of listing
Also depends on your schedule, ammo for conversations with sellers

(7.15) consider renting
Have you considered? If not, re-iterate your value, give benefits of renting out
Depending on reaction, estimate your effort, bad if seller set on price or rent out

(7.16) extra funnels and ultimate broker tour
Plant seed around day 14 for price reduction
Offer additional things when going for price reduction
Option to avoid getting fired
<3mo contracts are helpful, losing listings happens, better than being bitter

(7.17) keep communicating
Twice a week give updates
Additional feedback, upcoming actions
If price too high keep re-iterating implied price reduction
If on market (and condition livable), price is the only problem

(7.18) price reduction
Educate sellers on DOM, it’s the most critical
In rising market waiting is fine
30 okay, 45 stale
Stuff that didn’t matter at first, do matter now
People start rationalizing defects
Incentivize price change with options of announcement blitz
Plant seed with “we try this, then we reduce”, no red light is a green light, otherwise repeat the cycle

(8) Buyers

(8.1) buyer appointment
Slow down, get their ability to buy first
Are you working with anyone yet?
If the first, get together but not prioritized, get pre-approved first, then show properties
Unless cash buyer or experienced

(8.2) buyer appointment
Laid back meeting, arrive 10min early, icebreakers, buy coffee option
If first time buyer, be relatable, likability and energy, no buyer contract
Learn expectations, showing another time
Laptop/tablet to go through existing listing
Take notes, get them set up on MLS

(8.3) search for buyers
New construction disclaimer
Statistics for types of sales
Are they comfortable doing rehab? Everything from scratch, nothing at all, everything in between
In between are your bread and butter, benefit most from your contacts and vendors
Realtor is the “yellow pages”
Set up for MLS, add slightly smaller property types too
mind search issues on MLS, wider search
“Team” strategy, you don’t have to drive initiative

(8.4) stand out
Education and likability important
You’ll have to check in again every week or so

(8.5) buyer showings
Okay to share your thoughts with buyer immediately
Kevin wants to look at properties without sellers there
Know sqft, school, year built (at a minimum)
Take photos of construction questions, permits

(8.6) converting to an offer
Don’t pitch shitty properties
Pitch is about what’s next in the process, if buyers are “slightly interested”
example get information from listing agent, then cycle back and strategize
You should stay in control, suggest possible action first, then allow them to decide

(8.7) the anti pitch
Must be sincere, if property is bad, builds trust
don’t close door completely, explain severe trade-offs
Propose solution to check other types of properties, wait and see what happens
They may still want to offer on it, then switch to pitch

(8.8) buyer concerns
bidding war, multiple offers indicate below market deal, offer term strength matters, not just price
Deposit, explain contingencies, give comfort via inspection scheduling, financing and appraisal
Fear of overpaying, weaponize appraisal

(8.9) referring to others
when you’re tired of them, as soon as you start feeling regretful
Some buyers are emotional vampires, fire them, refer them to others
“It not you, it’s me”, “family health problem”, also you might get a referral fee

(8.10) “we want to sleep on it”
“Not a bad idea at all”, we can make an offer and let it evolve
demotivates people who want to avoid multiple offers
Float offer in, then sleep on it, can always withdraw offer

(9) Investors

(9.1) finding motivated investors
Always ask in person, are you interested in flips or rental properties?, interested in me touching base
Rent investors highest priority, can pay highest price
Everybody wants a good deal

(9.2) making investors happy
Good deals are the only thing that matters
Some may want you to coordinate rehab, but secondary

(9.3) referrals from investors
Investors are talkative, brings many retail buyers

(9.4) building brand around investors
If you make people money, they’ll refer other people
In-person open houses and door knocking make it happen

(9.5) avoid spaghetti investors
Spaghetti-against-the-wall offers, low-ball
Always talk to listing agent first, you’ll get the relevant info
Only then write offer

(10) Contracts

(10.1) contracts disclaimer
“I’m not a CPA, I’m not qualified to give you tax advice and I might be wrong. You should consult a CPA.”
Same for lawyer, insurance agent, …
Put the disclaimer everywhere, “I have to add this”, “Here’s my opinion as a real estate agent”

(10.2) writing quality contracts
Read the contract, mark up, as buyer, as seller, see what’s included or excluded
When writing addendum, take a break, come back and poke holes into it, ifs and buts

(10.3) explaining contracts via stories
Best way to explain paragraphs and actions via practical stories
Get stories from broker and others when new

(10.4) when sending paperwork
Prepare everything, entire email, before sending it walk away and take a break
Draft externally if necessary
Tone, typos, content
Then read again, improve and clean it up
It’s all about relationships, happier clients, more money

(10.5) contract changes
More Kevin legal disclaimer
“If any” for termite or sewer work avoids lender concerns
Fast contract changes via initials, only valid once both buyer and seller initial, right next to it
No need for full counteroffers

(10.6) contract highlighting
When walking trough contract with your principal, highlight important terms
yellow and green, yellow disappears on scans, green becomes grey
Important vs action items
Location, price, COE, deposit, loan, contingencies, possession, condition, …
Note that markup may be seen by both buyer and seller
Save time, avoid confusion
Same on listing agreement, price, commission, split
Tablet with pen great

(10.7) contingency removal
Two different styles, depends on area
Contingency retention until signature, CAR forms, good for buyer
Contingency expiration, bad for buyer, make objections in writing before that date
May receive threats from seller anyways, don’t worry

(10.8) Templating and DocuSign
Open-escrow email template, helpful
it’s easy to miss parts, errors look bad for agent, only put pertinent info in template, highlighting
Docs-Sign templates

(10.9) buyer’s agreement
Not worth it
You’ll lose out on some, but don’t worry

(10.10) referral agreements
Always in writing with other agents
You tend to get paid faster when written too
your own reputation matters, qualify other agents first

(10.11) listing agreements
If people want to cancel, let them
First pull out your ultimate broker tour and other moves
30-90days easy and typical
Never negotiate your own commission, or that of the buyers agent

(10.12) “must sell at appraised value” clause
Laziness, forces seller lower
Instead put up a fight, usually doesn’t have to give up quite as much

(10.13) unlicensed practice of law
Not an attorney disclaimer, document it in writing
When in doubt find out, broker, DRE, CAR, attorney (?)
Be transparent to your client, often problem goes away

(11) Negotiation

(11.1) negotiating with sellers
Understand their motivation, goals, interest in moving or renting
It’s not TV, people recoil from bluntness in reality
The reason is always “the market”, we’re doing everything we can and more
Asking the right questions, customized towards sellers speed and motivation
Adapt reasons to seller motivation, suggest buyer pool has the same reasons, “tax”, “rat race”

(11.2) negotiating with buyers
End game for buyers is to buy “a” house
Perspective is best investment, not the perfect house, keep moving, build wealth
even better if you’re buying properties yourself
downsizing and reduced expenses another common motivation

(11.3) negotiating with other agents
Treat other agents as team members, they want a deal too
For small issues, just pay yourself, or split cost with other agent
Do the best for your client, also build a reputation with other agents
Reason is always outside force, “buyer family”, “tight money”, “I’m working with them”
“could we figure out something?”
Kevin really likes bringing up his achievements with his principals

(11.4) negotiating with contractors
Team member approach, let’s make this happen
“Clients are stuck”, because external force
(they’re still contractors though)

(12) Coordination of services

(12.1) coordinating renovations
Sounds overwhelming, you’ll probably have to do it anyways

(12.2) setting renovation budgets
Spreadsheet, all vs medium vs minimum amount of work
Cleaning, reports, touch up, minimum
stay away from major work or systems, it’s not flipping
Basic things to increase market value, reglazing tiles, plumbing fixtures
Switches, light fixtures, outlets, carpet, door hardware, even more
Major painting powerful but costly
Projected value-add per category, sellers tend to default to medium option

(12.3) bids and tips
Once seller decides
Walk contractor through property, be clear it’s for sale
Make list of vendors, group them up
Don’t meet vendors of same type on same day
First bids, then turnaround to seller, ask for second bids
Also builds long-term relationships with vendors

(12.4) scheduling and visiting
Only schedule work once you’ve received the trust funds
If seller insists on paying directly, pass final confirmation on to seller
Schedule with folio
Make sure vendors are not tripping over each other, reach out and ask
Visit properties at least every 2-3 days, make sure progress as planned, adapt work

(12.5) reserves and trust funds
Build in 20% buffer with seller, it always goes over budget
Ability to take opportunities as they come up
Disclaimer you’re not a licensed contractor, you’re merely coordinating repairs

(13) Trust funds

(13.1) trust funds
Most common license violation
Completely separate trust account, money only leaves with invoice or check
If you mess up, reimburse from your own funds, that money is gone
Avoid shopping or getting credit card points
Kevin only takes funds if he’s coordinating the whole repair, complete control

(13.2) trust fund log
All the money upfront from seller
Only then hire vendors
Multiple logs, auto accounting log for each client, manual spreadsheets for checks
What?, when?, how much?
Both logs required, charges may not show up immediately
Reconcile log and spreadsheet regularly
Keep receipts

(13.2) trust fund log example
Matches to the penny, keep receipts

(13.3) bonding for employees
If another person touches the funds, you need separate insurance
Handle all funds yourself

(13.4) trust fund addendum
Complete control
60d buffer period after closing, for delayed expenses
Disclaimer for free coordination, not contracting for a fee
Insurance and license verification up to seller
Permits up to seller

(14) Inspections and Appraisals

(14.1) who is present at inspection
Other side shouldn’t be present, avoids “us vs them”
Home inspection is for buyer to get familiar, unless buyer not present
As seller counter problems later

(14.2) appraisal
Only listing agent present, nobody else, no seller
Less pressure on appraiser
As seller agent comps and list of upgrades with date and price
Greet them, give space and let them do their thing, don’t follow around

(14.3) buyer inspections
Home inspection, termite, primary
once indicators available, explore red flags, additional exceptions
permit checks, ballpark checks with vendors, send inspection and pictures
Sewer inspection all the way from toilet, through sewer, to street

(14.4) seller inspections
Sewer and termite only (depends on area?)
Systems are can of worms
Buyers expect to find stuff during inspection anyways, ammo for negotiation
Avoid overwhelming buyers

(14.5) tenants and deal killers
Be sensitive, 24h notice not enough, otherwise tenants make your life miserable
give heads up of sale early, open door to them moving early
minimize showings, maybe money off rent
For photos and scan, clean up property, fewer showings
Good relationship is important, happy tenants, happy sale

(15) Valuations

(15.1) valuation spreadsheet
Past info vs current trajectory, from MLS
Region with 1000ish annual sales, active vs sold, per month
Median sale price, median DOM, num transactions
Month-over-month, year-over-year
Active data doesn’t allow lookback, requires pulling info

(15.2) price per sqft
Not in california, utility of additional sqft different, especially in residential
Sqft range of 15% for comps, USD 50-100 per sqft value

(15.3) MLS comps
You have to know neighborhood boundaries
Busy streets lower value, other bad regions
Local info very important to find comps, views
Bounds along subdivision, roads
Find properties of same type and neighborhood
Eliminate larger lot, different model, different year, “funk factor”
Match model, pending even better, call listing agent
“Did you get multiple offers? Was it above 550? But low 575?”
Use bracketing, high/low comps, look at pictures
Combine comps with recent market history and trends

(15.4) off MLS comps
Comps that show up on Zillow, Redfin
Less useful for pricing, but your principal may come across those
Ignore trust transfers

(16) BPOs, short sales, probates, foreclosures

(16.1) doing broker price opinions
Get on list, do opinions, eventually become bank REO agent
If you want, sign up for all BPO lists, BPO providers
Very low compensation, maybe when starting
first come first serve, be fast when email comes in

(16.2) short sales
Plenty of time from foreclosure, get long listing agreement
Get 3rd party authorization, bring short-sale package from relevant bank
Constant followup, Mon and Thu, with negotiator
Hardship letter, very easy to get through if thoroughly processed
Multiple offer situation best case, find buyer that can sit out the 90days

(16.3) REO accounts
Usually via BPO accounts, not REO conferences
Lender relationships with major banks, backdoor into bank REO

(17) Relationships with vendors

(17.1) building relationships
Look at sales volume, busy but not too busy
invite them for lunch/coffee, looking for the best person, most business
Learn from vendors, common mistakes, best practices

(18) Motivation

(18.1) motivation
Happiness vs possessions, experiences vs stuff
Relativity with others may be an issue
Spend more on experiences, document them
Legacy and purpose
It’s all about self-motivation in real estate

(18.2) money trick: changes
Kevin goes through monthly expenses, always make a change, cut something
Avoids regret on waste later on

(18.3) money trick: routine
Always cut part of your commission checks to savings, debt payoff
Investment in stocks or real estate

(19) Employees

(19.1) employees
Helps you scale, also big distraction with other noise and expenses
Delay hire as long as possible, improved business focus usually better
If you get a hire, aim at helping them grow with the business
Communication differences with clients can be issues
Hire slow, fire fast, 1099 to start with
Consider liability, insurance, taxes, supervision

(19.2) 1099 vendors
Rather than salaried vendor, hire outside vendors
Per-item cost rather than constant overheads
Desirable when starting out
Virtual assistants common, billed per hour
Vendors need autonomy

(19.3) salary vs hourly vs 1099
Salaried employees have fixed cost and benefits, independent decision making
If not decision making or managing, usually hourly employee
Hourly employees get overtime protection, daily assigned tasks
1099 vendors cannot have a schedule, otherwise hourly employee
Check with attorney

(19.4) team members
Bring them on very slowly, firing people is tough
Meet regularly every week, mentor and train them
Scale slowly, and build the experience

(19.5) workers comp and records
Insurances will audit you, keep records
Lots of extra cost and overhead for hourly employees

(20) The office

(20.1) having an office
Kevin never had issues without an office, Starbucks works
People care about reputation, not offices
Office is probably just overhead, except if you need quiet space

(20.2) postal mail vs PO
Postal mail box at UPS/FedEx, doesn’t say P.O. Box like USPS
Suite number required when signing up, but not for receiving mail

(20.3) faxing
Sign up for fax number, e.g.
May be required for banks or companies

(21) Incorporation

(21.1) costs of incorporating
Ask an attorney, CPA
Sole proprietor is fine, with insurance
Incorporating 2k + 2k per year, legal protection, added insurance costs
Liability aspects not so important unless you have employees
Potential tax benefits

(21.2) separate accounting
Different entities need separated bookkeeping
Maybe hire CPA for bookkeeping
Focus on your business first

(22) Insurance

(22.1) insurance
worker’s comp, when you have employees

(22.2) E&O and general liability
E&O, professional liability, depends on policy
General liability, damage caused by accident for you and your associates

(22.3) umbrellas
expand limit for existing policies, only covered stuff

(23) Equipment

(23.1) printer
Kevin doesn’t like combo devices
Printer cost mainly from toner and ink
Brother color laser, HL-L8360CDW
Use original ink

(23.2) scanner
Go 100% paperless, unless notarized deeds
Kevin likes dedicated device
Fujitsu ScanSnap S1300i
Phone app “scanner pro” real alternative

(23.3) tablets
They’re useless, unless you’re reading
Maybe presentations

(23.4) laptops
Kevin likes the cheapest MacBook 12 or air
It’s all email and contracts anyways
Apple may give you 10% business pricing discount
Stay mobile
When editing video, get storage and ram (?)

(24) File storage

(24.1) file storage
File management is critical
Use sync tool, google drive
Business, personal, investments
commission checks
Folders per year, Insurance, clients,
property address
Reports, disclosures, escrow, other, offers, sort/todo
Use searchable file names, type, address, date
Can use shortcuts for date and address expansion, “TypeIt4Me”

(25) Closing

(25.1) closing and review
Get 5 star review online, on the very day of closing
Will help dramatically to grow your business (?)
Give closing gift, non-consumable, not branded

(x) Bonus Material

(x.1) appraisal required repairs
REOs usually do not perform any additional repairs, it’s bureacracy
exceptions may be loan-related issues in inspection and appraisal
may work, may blow up the deal

(x.2) termite on contracts
avoid like the plague, instead “repairs, if any, handled by …”
may come handy as a negotiation tool if other side less experienced
can blow up deal as well