Speaker 1 (00:01):
No matter where your business is today or where you want to take it, you'll get there faster and more profitably with an operating system. Welcome to Team Os, your guide to starting, growing and optimizing real estate team. Here's your host, Ethan Butte.

Speaker 2 (00:16):
Melissa, thank you so much for doing this.

Speaker 3 (00:18):
Absolutely. I'm so excited to be here. Check this out.

Speaker 2 (00:21):
Yeah, it's a pretty nice setup, by the way. It's way nicer than the previous episodes I've recorded. These people are taking care of us really well. Oh, so fun. To get us started, I want to ask you a question that I've asked literally everyone who has sat in that chair the past couple of days, and that is what is a must have characteristic of a high performing team?

Speaker 3 (00:38):
Oh, collaborative in nature, 100%. It's like that concept, if you want to go fast, go alone. If you want to go far, go together, that is absolutely it for us. We were running pretty good production. We were virtual actually all the way up until 2020. And in September of 2020 when everyone else went virtual, we went in person. And that ability to gather together, to share ideas, to communicate and help each other out when everyone else was going solo onto an island, it blasted us off into outer space at the perfect time when the market was also blasting off.

Speaker 2 (01:17):
Yeah, I love this so much about, I mean, it's the risk of asking the obvious. Talk a little bit about the in-person dynamic. I mean, I have a very strong bias toward it. I talked my way back into the office before our office was officially open in that same zone, like summer 2020. To me, there's a serendipity in it. I didn't expect this to happen or I wouldn't have asked that question. I would've just gone on about my day, but she's right here or he's right there and we can have a quick conversation about it. Talk about some of why was that so important to you to go against the tide and what was your instinct on it?

Speaker 3 (01:58):
Well, I mean I love to go against the tide. I'm a rebel without a cause by nature, but I've actually, despite how I appear, I've been in the business for 23 years. So I started out in an in-person office and I really saw the benefit. However, the industry kind of went dog eat dog over the years and it was very much like, don't tell them what I'm doing. Don't show them my special flyers that gets me listings. And I really disliked that about the real estate industry. So as I began to grow in my leadership, as I began to scale and grow my office, I really saw the benefit of my agents sharing ideas and just being able to teach each other little tips, little tricks, hearing each other. We're an open format office and we keep no secrets. So if somebody is taking a call and they're trying to talk their client through repricing their home or they're trying to help somebody understand why this offer is better than that offer, there's so much advantage for our newer agents or our growing agents to hear how they did it, what are the words they're using, what is the strategy they're using?

Speaker 3 (03:12):
And I'll actually use all of these things as teachable opportunities and be like, did you hear how she said that? Did you hear how he did this? This is what I would've done. And so you're taking the opportunity to help everybody grow through teachable moments if you just lay it all out on the table. And it also helps me kind of center in on who should be at my office. If you are an agent who's not willing to share, to collaborate to help other people grow, you really shouldn't be in our atmosphere.

Speaker 2 (03:42):
Yeah, so much good stuff there and I can see it. The teachable moment thing speaks to what I loosely referred to as serendipity. The ability to observe something or someone or that moment and turn it into something else. You just can't do that. I'm just going to random zoom, call you to see like, Hey, what's going on? Can I, can I force a teachable moment on

Speaker 3 (04:03):
You? Yeah, 100%. And it's like in the Zooms, is anybody even paying attention? Are you looking at your daughter? Really? You just look like you're looking at the screen. No, it's so important to have those moments and to help everybody grow. That is how you skyrocket these agents. We're really lucky at our company. Every new agent who's joined our team in the past three years has sold a minimum of 15 homes in their first year of real estate. And I credit that to us giving our agents the ability to help teach each other and to work together to team up.

Speaker 2 (04:37):
Yeah, that's awesome. Is this focus on collaboration, all the things that you've shared in the first few minutes here, is any of that captured in the choice to use the word collective to kind of title and brand the organization? So

Speaker 3 (04:51):
It's so funny because interestingly enough, when I came up with the Avenue Home Collective, I was going to be completely solo. So funny, I swear I was just going to be my own broker, but I was actually really intimidated by being solo. I wanted to give the feel as if I was a larger company. I actually had no intention of bringing on other agents. My best friend got her license and she was like, I'm hanging my license under you. And I was like, no, I don't want any agents, not even you. She was like, well, that's too bad. The Dre's already requested that you signed in this document. I'm like, man, alright, well if I'm going to do it, let's go big. And so I actually now very much utilize the Avenue Home Collective because we are a collective of not just solo agents, but also teams of different sizes who come together and help each other grow and use that collaborative nature of the collective. But fun fact, when I first started, people literally thought we were dispensary. That's funny. Because they were like, you're a collective. What is that? It's a real company. But thanks, it's

Speaker 2 (05:58):
Funny. Well, and it was also the rage for a while. It was

Speaker 2 (06:04):
As the market was getting fully saturated, your story is different than almost every other story I've had in this context. I think it's like a couple dozen now that you did not intend to start a team. I think the story that we hear the most often is, I did all this production, I got to a point, I still had leads or I achieved this thing and I wanted to do more, but I was physically exhausted. I was working seven days a week, 12 hour days, 14 hour days, et cetera, et cetera. How did you get turned on to talk about that period from, oh, okay, I guess we kind of are doing this, so we might as well do it big. How did you turn around on that? Because I just think about the mental preparation of how I'm going to approach the business in general shifted dramatically for you in some window of time. Talk about that shift a little bit and maybe some of your first moves after your friend made her way into the collective.

Speaker 3 (07:04):
Yeah, absolutely. So I truly had never wanted to start a team. And as I was achieving my broker's license, I had a lot of agents who were coming to me just for help, support guidance. At that point in my career. I'd been in real estate for 10 years when I got my broker's license. So my ability to navigate the market and the number of recessions I'd already gone through at that time was more than most people. So I began to mentor other agents and I did not realize the value that I could bring to the table as a mentor. I just wanted to help out some great agents. And what I realized at that time is there were not a ton of leaders in my space that were willing to mentor in the way that I was helping people grow as a human, helping them look at the soft power skills that could help them increase their business.

Speaker 3 (08:04):
And as a team, there were not many, many leaders who were helping people outside of the paid lead space. I was 100% and still am 100% referral word of mouth, building relationships, nurturing community. And I did not understand that that was a lead generation system in and of itself. So once I really started to refine my systems and my processes around growing SOI business and growing referral business by creating community and relationships, I realized that I could teach and share that to my agents. So when that happened, I set a process and a system and decided to join and partner with side real estate so that I can release some liability so I could gain more tools, resources, some help with onboarding, offboarding, accounting, those fun things. And when I did that, I was able to grow from eight agents to over 40 agents go from 40 million in production to over 250 million.

Speaker 2 (09:09):
Awesome. That's wonderful. That may be part of the answer to my next question, which is as this got more complex, were you the operational person? Did you bring an operational person alongside you or did some of that come through your relationship with side?

Speaker 3 (09:24):
Absolutely. So a lot of the operations I was able to release to side, I mean, I had been so alone for nine years. I had to do everything. I had to go and vet tech, I had to go and figure out how to just create an entire brokerage on my own. And so it was really nice when I joined side, I was able to release all of those very busy duties and that way I can focus on actual mentorship for my agents, I could focus on growth strategies. And then my admin was able to really take a bigger role in just helping me grow our company without having to do all of the boring stuff, without having to do the very highly high liability items. And so yeah, it was a really great partnership for me and they also helped recruit. So I actually didn't use that aspect of it as other people have, but it was just nice to have that option and have a partnership that really I could fall back on.

Speaker 2 (10:25):
That's awesome. I'm going to paraphrase it and maybe butcher it slightly, but I feel like I read on your website something about delivering a level of service that makes you wonder whether you've ever really had service. Yes. I mean, I didn't nail it, but it is a standout thing that I was like, I'm going to take note of that and I want to ask about that. Thank you. What does that mean to you? And then as a second layer, maybe we can go back and forth on it, but how do you, across going from under 10 agents to over 40 agents, how do you maintain that standard? So first, when did this occur to you and what does that mean to you? It is just extra little touches. Is it a truly exceptional, remarkable experience? What does that language mean to you?

Speaker 3 (11:17):
Absolutely. So I think at the heart of it, one of the things that I knew about myself that was very different from a lot of people in the industry is that I care so much. I fight for my client's money as if it's my own. If we're fighting over five $50. So it we're fighting over $50 and I was incorporating tactics within our negotiations, within our marketing strategies that most people wouldn't do for a client, but they would definitely do for themselves. And so when I was really teaching this to my agents, for instance, when we're asking about if there are other offers on a table before our clients make an offer, I ask no less than four times if there are other offers on the table and what price those offers are. I don't want my clients to go in blind. I'm going to ask four different ways.

Speaker 3 (12:15):
I'm going to find out and give my clients some sort of clue to where they should place their offer. And I can't even tell you how many times my clients get their very first offer accepted, even in the busiest of markets, even up against 10 offers, even if we are up against cash or we're not the highest, we really strive to build relationships with the people across the table where most people don't even call or text the other agent or read the MLS to see what the instructions are for writing an offer to that person. So when people are working with other agents, there are things that happen that they don't even know their agent is not serving them at their highest capacity. That's what I mean when we're giving luxury level service. It's across the board, it's care more, do more work harder, protect their fiduciary needs as if they're your own. And it's all about building those relationships across every single portion of the real estate process and just doing the most you can for your clients. Yeah,

Speaker 2 (13:23):
Love it. I assume that that's an important part of training as well as probably the ongoing, sorry, the onboarding as well as the ongoing training.

Speaker 3 (13:32):
Absolutely. I mean, I think

Speaker 2 (13:35):
It's probably even part of how you attract people.

Speaker 3 (13:37):
Oh, absolutely. It's part of how we attract people. I'm teaching, I'm teaching my agents how to communicate with other agents, how to build relationships within the industry and with our clients. We're focusing not just on how to make the most money from our clients, but how to be the best we can be to elevate the industry at large. And I'm trying to teach why that's important no better so that we can be better so we can do better for our clients. Absolutely. It's something that I teach through onboarding. It's something that runs through our ethos. I constantly am talking about our ethos, our values, our unique value proposition so that my agents can really understand what we're trying to go after. I want agents whose clients want to stand behind their code of ethics. I want them to stand for something so that they're proud of who their agent is.

Speaker 2 (14:41):
How has your role and responsibility changed in that move from, there are a few of us to, there are dozens of us, probably a lot, but maybe what's stayed the same and what's changed for you and how has that changed you personally?

Speaker 3 (14:56):
It's really interesting because I've taken on a lot more, but I would say my role itself is very similar. It's my job to be the visionary. It's my job to understand the pulse of the market and to teach that to my agents, to prepare them for the future, to help them shift their communications. Are we focusing on buyers now? Are we focusing on sellers now? What's going to happen next? What do I need to learn and understand so that I can help my clients and do be the best of what I can be? But at the same time, I'm still in active production, and I think a lot of people in my position typically step very quickly out of active production, but there's kind of a need that I feel is very important. If I can stay in active production and still talk to buyers and sellers, I can better guide my agents to understand what they need to do, how to shift your conversations, what's the temperature of the market, what do people need to hear to feel secure right now?

Speaker 3 (15:56):
And I think when as leaders, we start to separate ourselves from understanding that it can hurt our agents because we can't guide them as closely, you better have somebody who's very, very good, as good as you are to guide your agents in that area if you're not going to be the one to do it. But generally, I am doing a lot of the same things just on a bigger, higher level. I'm just now bringing in people that are going to take some of the duties that I just don't have time for anymore. But I just make sure that who I'm bringing on is high quality of high caliber integrity and who will maintain the same quality level of service that I provide.

Speaker 2 (16:41):
Yeah, that's great. How do you decide, obviously you have a lot of ways. First of all, I'm hearing I like to stay in production so that I can stay in touch for my own benefit and for the benefit of the people that I've brought into this team. So I appreciate that. How do you decide who to work with and who not to? Where I am

Speaker 3 (17:09):
Is as far as clients.

Speaker 2 (17:10):
Yeah, because you have a lot of different responsibilities. You have a lot of people who need your time and attention. You have a very high level of service. I'm sure. You don't want too much overstretch yourself. So how do you toggle that a little bit so that you're not, how do you maintain,

Speaker 3 (17:30):
It's funny because the question you're really asking is do you take the 2 million and over listings or not?

Speaker 2 (17:36):
I'm not, I'm just kidding. Well, I guess, yeah,

Speaker 3 (17:38):
That's what a lot of leaders in my position would do. We would take the highest listings, but to be honest, was first agent on a mobile home sale last summer? I'm on a listing right now that's at 500 when my median price point in my neighborhood's 1.2. So I am very loyal to my past clients. If my past client is, yeah, if it's a past client of mine, if it's an investor of mine and they're used to my level of service, I want them to know and understand that I'm here. At least I'm watching it. At least I'm watching their text messages. I'm watching what homes they're seeing, and I'm in it. When we're negotiating, I'm calling that agent, or I'm making sure that my agent who's working on it with me is asking all the questions, giving the right information. It's less about how to choose, and it's more about who needs me, who needs me the most.

Speaker 2 (18:40):
Yeah, I really appreciate, and then that also then speaks to this idea of I'm doing it in part to stay in touch with what's going on. And I know it's kind of cliche, but I've heard it for over a dozen years now. There's always something new, right? Yes. When you get into these things, whether it's on the buy side or the sell side, things happen. They're like, I honestly have never seen that before. And then there's also the changing and shifting stuff.

Speaker 3 (19:07):
Absolutely. And if I'm pulling out of active production, if I'm not even talking to any buyers and sellers, if I'm never talking to agents, I can't feel what that is. I can't tell my buyers and sellers what to do in all honesty and say, this is exactly the direction that you should go. That's why I love to be so involved in the conversations. At the same time, I'm making sure that when I'm bringing my agents on, I'm teaching them what are the questions I ask? How am I conducting my conversations? What is my strategic, what is my strategic mindset around the way that I'm conducting this conversation with another agent or a client? That way they are reproducing who I am and how I conduct myself in a transaction. And then I can kind of step a little back, just make sure everything's running smoothly. Okay. They're doing it the way that we support in our office, and I know that they're still getting the highest level of service, but I'm just kind of like a little fly on the wall, making sure it's all running smoothly.

Speaker 2 (20:09):
Yeah, that's great. So as we record this, this is the time year when people start thinking about the year ahead. You don't never want to get too far ahead, but what are you expecting, hoping for setting your sights on for the collective in 2024?

Speaker 3 (20:24):
Absolutely. So I really like to run about a year ahead on starting to shift my agent's mindsets around what to expect from the market. So a year ago, we were telling all of our clients, or I was telling all of my agents, Hey, get all of your sellers to get on the ball, sell their homes now, because we're going to shift into a buyer's market. Well, here we are. We're in the middle of that buyer's market now. I was just sitting with Jordan, our state economist, and they're estimating that the interest rates are going to be sub six in second quarter of next year. I know that's going

Speaker 2 (21:00):
To open something up.

Speaker 3 (21:01):
It is. And they're estimating that the home values in California are going to increase by 22% between second quarter and third quarter of next year. So what I'm talking to my agents now is like, I'm like, you guys got to get all of your buyers off the fence. Right now is the time where they can still get deals. Let's get them all to purchase their homes with less competition over the next six to nine months. And then once we hit that six month mark and we're starting to see interest rates soften, we're starting to confirm that that shift is really going to happen in Q2 of next year. Then we're going to start going to sellers like, Hey, sellers, start getting your ducks in a row. Paint your front door, tidy up your stuff. We're going to hit it hard as soon as the seller market explodes. So yeah, I like to prep my agents really far in advance so that they can start prepping their clients far in advance.

Speaker 2 (21:54):
So smart. And it also, as you're carrying this message, not only to your agents, you're also carrying it into the market yourself. Absolutely. And seeing how the market responds and all that.

Speaker 3 (22:04):
Well, I mean, here's the thing. The bottom line is all of the news that they're getting, the consumers are months behind what we're doing. Totally. I'm like, no, don't listen to the articles. They don't even know what they're talking about. Because I'm writing offers today. I know exactly what's happening in the market today. They're talking to you about numbers that were four months ago. They just reported those numbers. That's inaccurate data. So if you want to be four months behind what's actually happening, go ahead and listen to all the articles. But I'll tell you, we're in it. We have 38 homes in escrow right now. I mean, we can advise you and give you the best of what we can provide.

Speaker 2 (22:40):
Awesome. I wish you a fantastic 2024. Thank

Speaker 3 (22:44):
You.

Speaker 2 (22:45):
You too. And your team. Thank you. Before I let you go, fun question for you. Okay. What is one of your most frivolous purchases? Or you only have to answer one of these, or what's a cheapskate habit you hold onto even though you probably don't need to?

Speaker 3 (22:58):
Interesting. So here's a fun fact about me. I cannot make frivolous purchases. My most frivolous purchases are literally vacations with my family experiences. But I am a cheap scape habit person all the way I'll take home, not just my leftovers, I'll take home your leftovers. Your leftovers. We'll save it all because there are starving people out there, and I can't, even if we're not going to eat it, it's like, what if someone gets hungry later? What if we need to drop it off on the sidewalk with somebody? So yeah, I'm a leftover queen.

Speaker 2 (23:34):
Love it. And you're fighting the food waste issue, which is an issue that doesn't have a high enough profile given the scale of the problem.

Speaker 3 (23:40):
Exactly.

Speaker 2 (23:41):
Cool. You're awesome. I appreciate you. Thanks for doing this. Nice to meet you.

Speaker 1 (23:45):
Thanks for checking out this episode of Team Os. For email exclusive insights every week, sign up@realestateteamos.com.