298: The Mortgage Team Trap - Chasing Passive Income

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Welcome to the mortgage game.

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I truly, truly believe that

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building a mortgage business, a
successful one is like playing a

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game.

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There's winners, there's losers.

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There's certain things you try.

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Some of us are playing checkers

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while others are playing chess.

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I've had the ability to coach and

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mentor hundreds of mortgage
brokers.

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I myself built a very nice
business.

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So now I want to distill all that
information, all the things I've

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learned from that and bring it
directly to you in a simple to

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understand way.

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I hope you enjoy.

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All right, welcome to the Mortgage
Game Podcast.

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West Coast, Wiley in the house,
coming to you from the Dodge Ram

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studio.

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Americano sponsorship many times

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today.

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Be prepared.

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They need to get their dues.

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So this is a question I get, oh

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man, so many times, rightfully so.

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Should I start a team?

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I've got this person who wants to
join me.

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Should I take them on?
What does that look like, Ryan?

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I want to mentor this person.

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I want to build a team of a couple

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agents.

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Yes, the million dollar question.

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I get this quite a bit.

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And it just so happened in the

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last week, I got it with three of
my own agents.

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And so I figured, hey, let's make
a podcast about this.

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I'm sure this is rattling around
the back of your head, especially

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when.

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times are a little tougher maybe

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in your business.

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Although I do know brokers are

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thriving right now.

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But let's just say times are a

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little tougher and money's a
little harder to come by, let's

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just say.

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So then you start going looking

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for other ways.

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And I don't want to call it

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passive because building a team is
the exact opposite of passive

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income.

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So if you think that, just get

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that out of your head.

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But then you start going, okay,

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well, if I had this and I
earned... call basis points off

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them.

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You start adding it up and you're

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like, that's an extra like 20, 30K
a year.

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Now have to do much.

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Like catch yourself again.

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You don't have to do much.

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It's the exact opposite of that.

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But I get it.

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I get why this happens.

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And so this is inevitably how it
happens.

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You're doing something.

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If you're doing 10 million,

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someone is thinking you're a rock
star.

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If you're doing 30 million,
someone's thinking you're a rock

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star.

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If you're doing 100, same story.

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Everyone has different perceptions
of you.

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And so you're doing 10 million and
someone's coming in and they're

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struggling with one or two
million.

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They think you're like, oh, and so
they're like, hey, can you teach

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me?
How do you get your leads?

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Can you show me the systems, the
process?

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Like that won't make your
business, by the way.

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Can you show me that?
And like, what do you do?

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Can you mentor me?
I'll give you a base.

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It's fool's gold.

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It happens, but this is how it

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happens.

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And then if you're doing 30, 40

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mil, you get the people that are
doing 10 mil going, hey, can I

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join?
And you show me how to get from

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one here to over here.

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And you're like, yeah, maybe I'll

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take you on.

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And then and that's probably the

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most common one I see, although
I'm starting to see a lot of new

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agents now reaching out to people
who are doing 10, 15, 20 mil and

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going, hey, can you take me on
under your wing?

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And it's like, OK, so we need to
chat about this because these

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opportunities, I don't even know
if I want to call them

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opportunities, but these
situations will come up no matter

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where you're at in your mortgage
career.

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They're going to come up.

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Someone's going to say, hey, talk

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to my friend.

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He's getting his license.

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I think you'd be awesome.

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He's so awesome.

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He's going to crush it and he can
learn from you.

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I think you're good.

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And you're like, it's tempting.

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It plays into your ego a bit.

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It also dangles the back of your

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head like, oh, I know some stuff.

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I can teach some people some

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things.

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And then also, oh, maybe there's

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some revenue to be earned here and
I could subsidize my own business.

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And it's like, okay.

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So this happens.

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It's probably happened to all of
you in some capacity who are

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listening to this, unless you're
brand new.

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But if you're brand new or you're
newer, you probably try to

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approach people.

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Okay, so here's my take on it.

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You do what you do with this
information.

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Here's my take.

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I've done it all.

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I've seen it all.

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I've done the mentoring, the

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coaching while running my own
book, bringing on someone from

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scratch, bringing it up.

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I've now had my own team where I'm

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coaching and mentoring and I don't
have my own book of business.

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I've done just straight coaching
where I didn't have a team.

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All I did was I've done every
angle of this business, every

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piece.

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I've been in the trenches where

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you are and above you and below
you and beside you.

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I've been everywhere.

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You will never, without a shadow

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of a doubt, you will never make
more money, highest and best use

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of your time and money out than
just focusing on your own book.

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Okay, but I know that's not
everything for everyone.

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making money.

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And I get it.

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But I just wanted to put that
statement out there because I'm

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not wrong.

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I've seen all the models.

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I've been involved in them and
I've seen, I talked to a lot of

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brokers and usually nine out of 10
of them.

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If I say, if you could go back in
time and unwind this six person or

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this 17 person team you have built
up, what would you do?

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But yeah, I'd drop it in a
heartbeat.

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But I can't now because I'm
invested with them and their

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families and they're in and they
need me.

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And you feel a sense of like
someone needs you.

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So that's like a feeling that we
all need as human beings as well

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as you need to feel wanted.

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And so you feel wanted by your

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brokers because they're always
coming to you for stuff.

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And so it fills that cup.

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But just be cautious.

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Because before you take anyone on,
there's a bunch of things like

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we're just going to go all over
the map here.

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Are you the person that should be
taking people on?

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Are you even what they think you
are?

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Are you what they even need in
their business?

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Just because you got your business
to X doesn't mean you're good at

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coaching someone else on how to do
it.

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So I see this a lot.

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I see a $30 million producer try

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to take on a $5 million producer
and try to coach them up, but

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they're not a good coach.

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They don't have the patience.

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They don't have the structure.

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They're not organized enough.

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Their idea of mentoring is, hey,
I'll give you my phone number.

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Let me know when you have a file
you want to talk about.

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And here's my phone number and
we'll talk about it.

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And then you're kind of off on
your own.

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There's no like structured
training and the person being

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mentored doesn't know what their
week's going to look like.

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And so they're just reacting and
then reaching out to you.

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And then inevitably your book, the
$30 million producer's book is

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priority number one, two, three,
four, because it feeds their

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family.

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Your priority five, six, seven.

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And if there's multiple people
there, you're never going to be

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there.

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So I'm looking at it.

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I'm wearing two hats here.

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I'm wearing the person.

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Be careful who you get to mentor.

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You're kind of in desperation mode

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a lot of times though.

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So you'll take anyone that like

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looks like they have something.

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So you're more there.

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So maybe I'm more talking the
other side.

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I'm talking about the $30 million
producer who has agents

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approaching, making them feel good
about themselves, making them feel

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like they're going to be wanted
because maybe they're not getting

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that in other areas of their life.

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So they're like, oh, at least

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these people need me.

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And I feel the love.

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And yeah, sure, I'll help you.

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I know some things.

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And you're like, okay, but it's a
slippery slope.

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Because when you get in there, all
of a sudden now, people who came

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in with the split, remember,
they're not paying you a dollar

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until they earn.

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So that's like a whole broken

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model right there.

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Right?

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You're just hoping they do all
these eight things.

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And my mentality has changed so
much on this.

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It's really changed who I bring on
the team.

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You're hoping as a $30 million
producer that they're going to do

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all the things.

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Because you're going to pour your

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heart and soul into a lot of
things.

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And then they might not come
through and then you don't really

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earn.

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So you need to make sure if you're

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going to take these people on that
you also want to fill the cup of

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you want to give back.

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And I want to help the industry

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and I want to help someone who is
in my shoes because someone helped

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me.

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If you have that mentality,

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phenomenal.

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But is that a forever mentality?

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Like, is that something where you
help that person?

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You want to help them here or
there, but do you want to help

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them for the next seven, eight
years?

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Ongoing?
all the time.

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You're never going to get the
money back out of it.

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It's a sunk cost.

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Like you're losing opportunity

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costs on your own book by doing
it.

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So it's actually going to cost you
money to go and mentor someone.

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So if you're cool with that and it
fills your cup, bravo.

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Good for you.

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Amazing.

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You know that going in.

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Let me make that statement again.

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You mentoring someone or bringing
them onto your team is going to

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cost you money.

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You're actually paying.

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You're not paying them directly,
but you're paying cash out of your

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bank account so that you can sit
and coach them on things.

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That's true.

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So true.

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Because your time can be spent
building your own brand, your own

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referral partners, your own
marketing, getting better at your

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advanced strategies, better at
your discovery call, better at all

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the things you're not really good
at, and going and building an

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actual business and working with
your own team, your support team,

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to get them better, to pull you
out of the business more.

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Like that's where your energy
should go.

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00:08:18,520 --> 00:08:24,040
And you could pull out a half
million dollars working 20 hours a

257
00:08:24,120 --> 00:08:24,200
week.

258
00:08:24,200 --> 00:08:27,420
But we like to go over here and we

259
00:08:27,420 --> 00:08:29,220
like to go, oh, I have.

260
00:08:29,220 --> 00:08:30,920
And then some of it plays in the

261
00:08:31,620 --> 00:08:32,059
ego.

262
00:08:32,059 --> 00:08:35,159
Well, a big part plays in the ego.

263
00:08:35,159 --> 00:08:36,799
I've got six people on my team.

264
00:08:36,799 --> 00:08:39,659
I've got 12 people on my team.

265
00:08:39,659 --> 00:08:41,020
This and we go for lunches.

266
00:08:41,020 --> 00:08:42,140
We have lunch and learns.

267
00:08:42,140 --> 00:08:44,880
We go to Zoom and it feels like a
little pack we have.

268
00:08:44,880 --> 00:08:46,240
And it's like, yeah.

269
00:08:46,240 --> 00:08:46,920
And it's exciting.

270
00:08:46,920 --> 00:08:48,680
It's like, I'm like, that's cool.

271
00:08:48,680 --> 00:08:49,060
That's awesome.

272
00:08:49,060 --> 00:08:50,260
I love it.

273
00:08:50,260 --> 00:08:51,890
I don't know if your bank account

274
00:08:51,890 --> 00:08:54,750
or your spouse or your business
partner loves it, but if it fills

275
00:08:54,750 --> 00:08:56,530
your cup, it fills your cup.

276
00:08:56,530 --> 00:08:58,610
If it keeps you going, it keeps

277
00:08:58,610 --> 00:08:59,170
you going.

278
00:08:59,170 --> 00:08:59,970
We're all wired differently.

279
00:08:59,970 --> 00:09:01,830
You never know until you walk a
mile in someone else's shoes.

280
00:09:01,830 --> 00:09:03,150
So I get it, but it's costing you
fucking money.

281
00:09:03,150 --> 00:09:04,570
Let's just call it that.

282
00:09:04,570 --> 00:09:06,350
And if you say I'm wrong, like I'd

283
00:09:06,350 --> 00:09:07,970
love to talk to you.

284
00:09:07,970 --> 00:09:09,910
I have never seen a model where it

285
00:09:10,110 --> 00:09:10,230
works out.

286
00:09:10,230 --> 00:09:11,570
If you're talking from a input

287
00:09:11,570 --> 00:09:13,230
output stage, there was a, geez,
give you an example.

288
00:09:13,390 --> 00:09:17,590
One broker I know runs his own
book and he does 20 million.

289
00:09:17,590 --> 00:09:19,900
And after everything, that's out
150.

290
00:09:19,900 --> 00:09:20,040
Okay.

291
00:09:20,040 --> 00:09:22,800
So 150, he could do that in 10, 15

292
00:09:22,800 --> 00:09:27,000
hours a week, but he also decided
to bring on a team and the team

293
00:09:27,000 --> 00:09:28,800
kind of grew up between 15 and 20
at any given moment.

294
00:09:28,800 --> 00:09:32,020
And when you roll the revenue out
of that, he nets out 125 ,000 from

295
00:09:32,020 --> 00:09:34,600
the team, but he's spending 30
hours a week on the team.

296
00:09:34,600 --> 00:09:36,840
So he spends 30 hours a week to
make 125.

297
00:09:37,140 --> 00:09:38,060
And he's a smart guy.

298
00:09:38,060 --> 00:09:40,160
He's got his shit together.

299
00:09:40,160 --> 00:09:44,440
He's not like a lot of you are
just fucking winging it.

300
00:09:44,440 --> 00:09:49,890
Saying I have a team and you have
my cell number and call me and

301
00:09:49,890 --> 00:09:51,210
we'll go over a file.

302
00:09:51,210 --> 00:09:52,390
And like, that's your value.

303
00:09:52,390 --> 00:09:57,830
He's got way better value adds and
they're dialed in and stuff.

304
00:09:57,830 --> 00:10:00,870
But he still spends 30 hours to
net out 125 or he spends 10, 12

305
00:10:00,870 --> 00:10:01,630
hours to net out one fifth.

306
00:10:01,630 --> 00:10:03,190
And he was one of the people asked

307
00:10:03,190 --> 00:10:03,970
if you could unwind.

308
00:10:03,970 --> 00:10:06,890
He's like, hell yeah, all day

309
00:10:06,890 --> 00:10:07,330
long.

310
00:10:07,330 --> 00:10:08,410
I'd unwind it.

311
00:10:08,670 --> 00:10:09,490
Didn't realize it.

312
00:10:09,490 --> 00:10:12,990
I wish I would have listened to

313
00:10:12,990 --> 00:10:15,980
you earlier because I talk people
out of this all the time.

314
00:10:15,980 --> 00:10:19,220
If anything, hey, you're going to
do what you're going to do.

315
00:10:19,220 --> 00:10:22,300
It's more, I just want you to go
into it with eyes wide open, much

316
00:10:22,300 --> 00:10:23,080
like my clients.

317
00:10:23,080 --> 00:10:25,680
I'd be like, I just need you to go

318
00:10:25,680 --> 00:10:26,960
into this with eyes wide open.

319
00:10:26,960 --> 00:10:28,000
If you're going to go there,

320
00:10:28,280 --> 00:10:28,640
that's fine.

321
00:10:28,760 --> 00:10:31,120
I just need you to know what's

322
00:10:31,120 --> 00:10:33,880
over here or what comes from that,
you know, the ramifications are

323
00:10:33,880 --> 00:10:35,640
from what your decision you're
going to make.

324
00:10:35,640 --> 00:10:38,160
Hey, you don't get me in your
corner.

325
00:10:38,160 --> 00:10:39,960
I'm talking to a client now.

326
00:10:39,960 --> 00:10:40,220
That's massive.

327
00:10:40,220 --> 00:10:41,040
So like I go bye bye.

328
00:10:41,040 --> 00:10:41,840
I don't answer calls.

329
00:10:41,920 --> 00:10:42,740
I don't answer emails.

330
00:10:42,740 --> 00:10:45,020
I don't like you aren't my client.

331
00:10:45,520 --> 00:10:46,140
You're their client.

332
00:10:46,140 --> 00:10:46,700
So you lose me.

333
00:10:46,700 --> 00:10:48,540
All these interactions we had, all
the knowledge I have, all the what

334
00:10:49,700 --> 00:10:51,280
about this?
What about this?

335
00:10:51,280 --> 00:10:51,620
You should do this.

336
00:10:51,620 --> 00:10:52,040
You should do that.

337
00:10:52,200 --> 00:10:52,980
I'm the idea guy.

338
00:10:52,980 --> 00:10:53,600
I show you the numbers.

339
00:10:53,600 --> 00:10:54,180
I break it down.

340
00:10:54,180 --> 00:10:55,400
That goes away.

341
00:10:55,400 --> 00:10:57,160
For what?
You can save a couple dollars

342
00:10:57,160 --> 00:10:58,680
every month, but then you don't
get me in your corner.

343
00:10:58,760 --> 00:10:59,100
I don't know.

344
00:10:59,100 --> 00:11:00,380
You just, you tell me.

345
00:11:00,480 --> 00:11:01,480
Does that sound smart?
I don't think so.

346
00:11:01,480 --> 00:11:04,380
I know what I bring to the table.

347
00:11:04,380 --> 00:11:04,940
So, regardless.

348
00:11:04,940 --> 00:11:06,380
So, back to the team.

349
00:11:06,380 --> 00:11:08,460
Now, we're going to break down

350
00:11:08,500 --> 00:11:08,980
some of the math.

351
00:11:08,980 --> 00:11:10,640
Before we do that, this podcast is

352
00:11:10,640 --> 00:11:12,930
brought to you by America.

353
00:11:12,930 --> 00:11:13,770
That was a good one.

354
00:11:14,390 --> 00:11:14,750
Okay.

355
00:11:14,750 --> 00:11:17,170
And I know some of you have a team

356
00:11:17,170 --> 00:11:17,350
already.

357
00:11:17,350 --> 00:11:17,990
And that's cool.

358
00:11:17,990 --> 00:11:21,130
And some of you are going to go do
this.

359
00:11:21,130 --> 00:11:22,630
It's just you're going to do it.

360
00:11:22,630 --> 00:11:24,650
I know you're going to do it.

361
00:11:24,750 --> 00:11:25,330
And that's okay.

362
00:11:25,410 --> 00:11:25,510
Right?

363
00:11:25,510 --> 00:11:25,830
That's okay.

364
00:11:25,830 --> 00:11:26,290
Go build a team.

365
00:11:26,290 --> 00:11:26,750
I build one.

366
00:11:26,750 --> 00:11:27,870
I just think only certain people

367
00:11:27,870 --> 00:11:30,670
should really be building teams
and set the expectations up front.

368
00:11:31,350 --> 00:11:34,390
If you're going to go build a
team, don't tell them you're

369
00:11:34,390 --> 00:11:35,890
always around because why would
you do that?

370
00:11:35,890 --> 00:11:39,280
would you do that?
I don't know why you do that.

371
00:11:39,280 --> 00:11:42,020
And like, if you have your own
book, you're not always going to

372
00:11:42,020 --> 00:11:46,100
be around because your own book's
going to have a lot of stuff going

373
00:11:46,100 --> 00:11:47,280
on, right?
And your own personal life and all

374
00:11:47,280 --> 00:11:48,120
this stuff.

375
00:11:48,120 --> 00:11:49,060
So don't set that.

376
00:11:49,060 --> 00:11:54,460
Go, hey, we're going to have a
structured call every week.

377
00:11:54,460 --> 00:11:55,600
It's going to be every Monday.

378
00:11:55,600 --> 00:11:57,900
We talk about X, Y, Z. If you have

379
00:11:57,900 --> 00:12:00,120
Y files and you want me to review
them before you hit submit, you

380
00:12:00,120 --> 00:12:03,460
have the letter notes read and you
want to review the documents, as

381
00:12:03,600 --> 00:12:07,730
you should do with a new person on
your team, you should be reviewing

382
00:12:07,730 --> 00:12:08,330
every file.

383
00:12:08,330 --> 00:12:09,570
Then I will do that.

384
00:12:09,570 --> 00:12:11,910
But like, I need to set these
guidelines, these boundaries.

385
00:12:11,910 --> 00:12:12,430
You need to do this.

386
00:12:12,590 --> 00:12:13,730
But here's the math.

387
00:12:13,730 --> 00:12:17,530
So the math I'm starting, this is
the allure that people have with

388
00:12:18,290 --> 00:12:19,150
starting a team.

389
00:12:19,150 --> 00:12:21,130
You go, okay, I'm at, I'm throwing

390
00:12:21,130 --> 00:12:22,190
just random numbers out here.

391
00:12:22,390 --> 00:12:22,830
Okay.

392
00:12:22,830 --> 00:12:26,650
They're going to be pretty
accurate, but like, don't hold me

393
00:12:26,650 --> 00:12:27,670
to this just from what I've seen.

394
00:12:27,670 --> 00:12:30,790
So you got a person running a $30

395
00:12:30,790 --> 00:12:33,160
million book, which right now
they're probably netting out, you

396
00:12:33,260 --> 00:12:35,600
know, gross commission on a $30
million book, 80 basis point comp.

397
00:12:35,600 --> 00:12:37,340
That's three year fixed plus some
volume minus some buy downs.

398
00:12:37,460 --> 00:12:39,180
So you're at 240 minus expenses.

399
00:12:39,180 --> 00:12:39,520
They're making 200.

400
00:12:39,520 --> 00:12:41,320
Let's call it that because they
might have fulfillment and

401
00:12:41,320 --> 00:12:42,320
assistant and all the other stuff.

402
00:12:42,320 --> 00:12:43,960
Let's just call it 200 to 210,

403
00:12:43,960 --> 00:12:45,040
somewhere in their range for this
200K.

404
00:12:45,040 --> 00:12:47,440
So $30 million producers netting
out 200K.

405
00:12:47,440 --> 00:12:50,420
They bring on someone on their
team and their team, let's say

406
00:12:50,460 --> 00:12:51,040
they're doing 5 million.

407
00:12:51,040 --> 00:12:52,740
Well, what do you charge that 5

408
00:12:52,740 --> 00:12:53,060
million person?
Right?

409
00:12:53,140 --> 00:12:55,420
Some of you I see are charging
five basis points.

410
00:12:55,520 --> 00:12:57,920
Like what the fuck?
You need to charge way more than

411
00:12:57,920 --> 00:12:58,120
that.

412
00:12:58,640 --> 00:13:00,580
The split for a $5 million

413
00:13:00,580 --> 00:13:00,840
producer.

414
00:13:00,840 --> 00:13:02,160
should be ballpark somewhere in

415
00:13:02,320 --> 00:13:05,980
the 70, 30, 60, 40 to 80, 20
range, somewhere in that.

416
00:13:05,980 --> 00:13:08,460
Let's just go in the middle and go
70, 30.

417
00:13:08,460 --> 00:13:08,680
Okay.

418
00:13:08,680 --> 00:13:10,380
And I'm not in here to like debate

419
00:13:10,540 --> 00:13:11,060
splits with you.

420
00:13:11,060 --> 00:13:12,880
That's not this because every

421
00:13:12,880 --> 00:13:15,900
split comes with something else,
some level of support or it

422
00:13:15,900 --> 00:13:19,920
should, or some level of value or
some tool or some coaching or some

423
00:13:20,380 --> 00:13:20,820
something.

424
00:13:20,820 --> 00:13:21,760
They're all different.

425
00:13:21,760 --> 00:13:23,080
It's this matrix.

426
00:13:23,080 --> 00:13:25,250
I'm not doing that.

427
00:13:25,250 --> 00:13:27,530
I'm giving you generalities here
so you get the idea.

428
00:13:27,530 --> 00:13:29,890
So 70 -30 for someone doing 5 mil.

429
00:13:29,890 --> 00:13:31,330
Someone doing 5 mil, think about

430
00:13:31,330 --> 00:13:32,070
this, is walking away.

431
00:13:32,070 --> 00:13:33,970
The average mortgage broker in

432
00:13:33,970 --> 00:13:36,490
Canada is 6 to 7.

433
00:13:36,490 --> 00:13:37,670
They're probably netting out 30,

434
00:13:37,670 --> 00:13:37,910
40K.

435
00:13:37,910 --> 00:13:39,190
You can't make a living on that.

436
00:13:39,190 --> 00:13:41,130
But let's just call it what it is.

437
00:13:41,130 --> 00:13:43,210
A $5 million producer, let's just

438
00:13:43,210 --> 00:13:44,750
say they've got $40 ,000 of gross
commission.

439
00:13:45,050 --> 00:13:48,150
So how much of the split are you
getting?

440
00:13:48,150 --> 00:13:52,450
If someone's joining your team, if
they're already at your brokerage

441
00:13:52,450 --> 00:14:00,400
and they're joining your team,
well, the brokerage gets their

442
00:14:01,280 --> 00:14:01,580
cut.

443
00:14:01,880 --> 00:14:04,040
Then you get some peace over.

444
00:14:04,040 --> 00:14:08,600
So when you start doing the math,
you start going, am I going to

445
00:14:08,720 --> 00:14:11,920
make, hopefully, if they do
everything well, if they do it, am

446
00:14:12,260 --> 00:14:15,880
I going to make $400 a month on
average off this person?

447
00:14:15,880 --> 00:14:18,300
Am I going to make $800 a month on
average off this person?

448
00:14:18,300 --> 00:14:20,800
Am I going to make anything off
this person?

449
00:14:20,940 --> 00:14:24,390
Because that's, I don't want to
mean that, but it's, is what it

450
00:14:24,390 --> 00:14:24,530
is.

451
00:14:24,530 --> 00:14:25,530
These are the splits.

452
00:14:25,530 --> 00:14:29,230
Like, what are you going to earn?
This is, remember, it's only if

453
00:14:29,230 --> 00:14:33,570
they show up, stay in the
industry, get shit done.

454
00:14:33,730 --> 00:14:34,590
Your clients love them.

455
00:14:34,590 --> 00:14:35,390
They're building their brand.

456
00:14:35,390 --> 00:14:37,150
They have awesome referral
partners.

457
00:14:37,150 --> 00:14:39,710
They don't lose deals.

458
00:14:39,990 --> 00:14:40,750
They can handle objections.

459
00:14:40,750 --> 00:14:42,410
If it's picture perfect,
everything goes right.

460
00:14:42,410 --> 00:14:44,890
Then you get what?
But you don't get it till after

461
00:14:44,890 --> 00:14:46,470
you've done a lot of stuff.

462
00:14:46,470 --> 00:14:48,490
So you're telling me you're going

463
00:14:48,490 --> 00:14:51,930
to go for that agent where you
could maybe make $5 ,000 to $10

464
00:14:51,930 --> 00:14:52,330
,000 max.

465
00:14:52,330 --> 00:14:52,490
Facts.

466
00:14:52,490 --> 00:14:53,110
That's two deals.

467
00:14:53,110 --> 00:14:54,650
One to two deals in your own book.

468
00:14:54,650 --> 00:14:57,330
So could you go find one to 2 ,000
a year?

469
00:14:57,330 --> 00:15:01,210
Or could you have this person who
is looking up to you like a puppy

470
00:15:01,210 --> 00:15:03,650
dog with those eyes going, hey,
what do I do now?

471
00:15:03,650 --> 00:15:06,970
What do I do now?
What do I do now?

472
00:15:06,970 --> 00:15:08,610
And then what?
And then what do I do?

473
00:15:08,610 --> 00:15:11,250
And they're just hoping you've got
like, oh, the holy grail, the plan

474
00:15:11,250 --> 00:15:12,270
laid out.

475
00:15:12,270 --> 00:15:14,010
Like, oh, show me the way.

476
00:15:14,010 --> 00:15:15,870
And you're like, fuck, I don't
really know.

477
00:15:15,870 --> 00:15:17,070
I don't really know how I got
here.

478
00:15:17,370 --> 00:15:18,790
Because there is no roadmap.

479
00:15:18,790 --> 00:15:19,890
There's just certain pieces you

480
00:15:20,050 --> 00:15:24,510
have to focus on and get up to a
six out of 10.

481
00:15:24,510 --> 00:15:26,570
But no one explains it like that.

482
00:15:26,570 --> 00:15:28,450
That's why I started the team, my

483
00:15:28,590 --> 00:15:29,050
own team.

484
00:15:29,050 --> 00:15:31,170
If you do the math there, you're

485
00:15:31,170 --> 00:15:32,570
like, it's never worth it.

486
00:15:32,570 --> 00:15:34,730
Just be cognizant of it, right?

487
00:15:34,730 --> 00:15:37,630
Are they calling you at night?
Are they calling the evenness?

488
00:15:37,630 --> 00:15:40,590
Just never seen it work out.

489
00:15:40,590 --> 00:15:42,330
And so, man, this is me really

490
00:15:42,330 --> 00:15:44,270
trying to talk to you out of the
team.

491
00:15:44,270 --> 00:15:50,930
Now, if you're trying to go build
something bigger, and I get it.

492
00:15:50,930 --> 00:15:53,590
Let's just say you've got someone
you want.

493
00:15:53,590 --> 00:15:56,110
This is an exception to all the
rules I have here.

494
00:15:56,110 --> 00:15:58,450
This is the only way me
personally, I would ever, ever,

495
00:15:58,450 --> 00:16:02,630
ever serve a team if I'm running
my own book, ever.

496
00:16:02,630 --> 00:16:04,150
Most of the top producers I know,
their team is the people that work

497
00:16:04,270 --> 00:16:04,950
in their own book.

498
00:16:04,950 --> 00:16:05,430
It's not 10 agents running around

499
00:16:05,430 --> 00:16:06,550
out there doing stuff.

500
00:16:06,550 --> 00:16:08,730
That's not the top agents.

501
00:16:08,730 --> 00:16:11,730
Like the agents who have a good
book of business running, majority

502
00:16:12,070 --> 00:16:13,230
of it's like it's their book.

503
00:16:13,230 --> 00:16:14,170
Here's the only time, the caveat.

504
00:16:14,170 --> 00:16:17,510
The only way I would go and hire
someone were bring on a team like

505
00:16:17,510 --> 00:16:18,110
that to mentor.

506
00:16:18,110 --> 00:16:19,130
If I have a vision that that

507
00:16:19,130 --> 00:16:21,990
person could come and be a part of
my team with my own book.

508
00:16:21,990 --> 00:16:25,090
So I bring someone in who I see,
man, this person, I like X, Y, Z

509
00:16:25,090 --> 00:16:25,730
about them.

510
00:16:25,730 --> 00:16:27,850
They're really good on the phone

511
00:16:27,990 --> 00:16:28,470
and all that.

512
00:16:28,470 --> 00:16:28,970
There's two kinds.

513
00:16:28,970 --> 00:16:31,350
You got the people who are not
afraid to put themselves out

514
00:16:31,350 --> 00:16:31,510
there.

515
00:16:31,690 --> 00:16:33,150
They're good on the phone, good at

516
00:16:33,150 --> 00:16:33,510
handling objections.

517
00:16:33,510 --> 00:16:33,930
People just naturally like them

518
00:16:33,930 --> 00:16:34,790
and gravitate towards them.

519
00:16:34,790 --> 00:16:35,830
They build trust quickly and

520
00:16:35,830 --> 00:16:38,010
easily with people.

521
00:16:38,010 --> 00:16:39,550
You got those people, which those

522
00:16:39,550 --> 00:16:40,630
are hard to find people.

523
00:16:40,670 --> 00:16:42,270
But they just suck at all the

524
00:16:42,270 --> 00:16:42,650
other stuff.

525
00:16:42,650 --> 00:16:45,230
The paperwork, the nuances of the

526
00:16:45,230 --> 00:16:46,490
deals, all this stuff.

527
00:16:46,490 --> 00:16:48,130
But they're just a really good

528
00:16:48,130 --> 00:16:51,190
salesperson with a good vibe, good
energy, trustworthy, all that

529
00:16:51,190 --> 00:16:51,370
stuff.

530
00:16:51,370 --> 00:16:52,270
You've got that.

531
00:16:52,270 --> 00:16:54,430
And you've got the flip side.

532
00:16:54,430 --> 00:16:55,870
You've got the person who wants to

533
00:16:56,230 --> 00:17:00,610
hang in the shadows, hang in the
paperwork, grind through files,

534
00:17:01,290 --> 00:17:05,430
but does not want to get dressed
and go out and talk to people.

535
00:17:05,430 --> 00:17:08,089
That does not want to go on social
media.

536
00:17:08,089 --> 00:17:12,010
That does not want to ask people
for referrals.

537
00:17:12,300 --> 00:17:13,619
does not want to ask people for
things.

538
00:17:13,619 --> 00:17:14,619
You've got those.

539
00:17:14,619 --> 00:17:16,400
Those people are pushing a rock up

540
00:17:16,400 --> 00:17:18,420
a hill, really never going to have
a business.

541
00:17:18,420 --> 00:17:21,119
That's going to be anything worth
having for the amount of energy

542
00:17:21,119 --> 00:17:22,540
they're going to put in.

543
00:17:22,540 --> 00:17:23,420
There's other industries they

544
00:17:23,420 --> 00:17:25,579
should just go do or go support a
mortgage company.

545
00:17:25,720 --> 00:17:27,640
The flip side, the people, the
sales people, those people are

546
00:17:27,640 --> 00:17:29,300
going to eventually, they'll have
a business, but it'll be chaos

547
00:17:29,300 --> 00:17:31,360
behind the scene unless they get
the right team in.

548
00:17:31,360 --> 00:17:34,740
If you envision one of those
people being a part of can help

549
00:17:34,740 --> 00:17:37,380
you today in your business, either
take over your discovery calls,

550
00:17:37,380 --> 00:17:39,600
learn on that, put custom
proposals together, teach them how

551
00:17:39,600 --> 00:17:41,260
to do pre -approvals like that.

552
00:17:41,260 --> 00:17:42,840
Or you got someone who, hey, you

553
00:17:42,840 --> 00:17:47,040
could train up and bring in and
they're going to run their own

554
00:17:47,040 --> 00:17:47,860
book off the side.

555
00:17:47,860 --> 00:17:49,940
And that's fine because, you know,

556
00:17:50,080 --> 00:17:52,140
it's never going to come to
fruition.

557
00:17:53,240 --> 00:17:54,480
And they just run their own book.

558
00:17:54,480 --> 00:17:55,520
But in the meantime, they're

559
00:17:55,520 --> 00:17:57,540
running your files and you're
training them on fulfillment and

560
00:17:57,540 --> 00:17:59,580
maybe a little underwriting here
and there.

561
00:17:59,720 --> 00:18:01,660
And they start taking over that
and you're signing packages and

562
00:18:01,660 --> 00:18:02,080
your compliance packages.

563
00:18:02,080 --> 00:18:03,920
And then they move into a

564
00:18:03,920 --> 00:18:04,160
fulfillment role.

565
00:18:04,160 --> 00:18:06,080
They start learning all that.

566
00:18:06,080 --> 00:18:10,440
And then eventually they just go,
hey, I'm cool making 60 to 90K,

567
00:18:10,440 --> 00:18:13,420
maybe more if we grow big, big a
year.

568
00:18:13,420 --> 00:18:16,000
No, I never have to fish for any
deals.

569
00:18:16,000 --> 00:18:16,520
They always come in.

570
00:18:16,520 --> 00:18:19,280
I don't ever have to go build

571
00:18:19,280 --> 00:18:20,100
something on social media.

572
00:18:20,100 --> 00:18:21,040
I don't have to put myself out

573
00:18:21,280 --> 00:18:21,680
there.

574
00:18:21,680 --> 00:18:23,060
And I like the industry.

575
00:18:23,060 --> 00:18:25,940
that could be a valuable piece of
your own business.

576
00:18:25,940 --> 00:18:27,440
That I can get behind all day
long.

577
00:18:27,560 --> 00:18:30,140
You give them a fighting chance at
their own book and then eventually

578
00:18:30,140 --> 00:18:31,980
they just go, hey, I had deals in
my own circle.

579
00:18:31,980 --> 00:18:37,210
You go, cool, bring those deals in
and I'll give you a 25 split on,

580
00:18:37,210 --> 00:18:40,030
25 me, 75 you, and then you're
running fulfillment for me.

581
00:18:40,030 --> 00:18:42,770
So they feel like they still have
that option.

582
00:18:42,770 --> 00:18:44,110
That right there is cool.

583
00:18:44,110 --> 00:18:44,950
I like that.

584
00:18:44,950 --> 00:18:46,530
Or the flip side one.

585
00:18:46,530 --> 00:18:48,030
But if you're bringing them in so

586
00:18:48,030 --> 00:18:49,270
that you hope they do everything.

587
00:18:49,270 --> 00:18:50,270
And that till you get little

588
00:18:50,270 --> 00:18:52,350
snippets and breadcrumbs off of
their comp, if it even comes

589
00:18:52,350 --> 00:18:54,830
first, and then that they stay
with you and they don't just move

590
00:18:55,370 --> 00:18:56,170
on to another thing.

591
00:18:56,370 --> 00:18:57,450
And you hope that they're loyal,

592
00:18:57,450 --> 00:19:00,470
that loyalty plays into it because
you built them up and now they're

593
00:19:00,570 --> 00:19:02,150
going to stick around so you can
reap the benefit.

594
00:19:02,150 --> 00:19:04,490
I'm here to tell you, very rare
that that's going to happen.

595
00:19:04,490 --> 00:19:07,530
And they might tell you up front,
but it's like they're eventually

596
00:19:07,530 --> 00:19:11,550
at some point going to want to
grind you down on splits.

597
00:19:11,550 --> 00:19:13,230
That's the nature of being a
broker.

598
00:19:13,230 --> 00:19:14,210
It's what they do.

599
00:19:14,210 --> 00:19:15,410
They're going to want everything.

600
00:19:15,410 --> 00:19:16,210
for nothing.

601
00:19:16,210 --> 00:19:18,050
Or they're going to keep on with a

602
00:19:18,050 --> 00:19:21,490
curtain split with you at a 85 -15
and they're going to hold a little

603
00:19:21,650 --> 00:19:24,240
resentment because they're going
to hear John over here gets that

604
00:19:24,240 --> 00:19:26,920
split and Sally over there gets
that split and there's all these

605
00:19:26,920 --> 00:19:29,300
shiny things over there but
they're going to stay here because

606
00:19:29,300 --> 00:19:31,000
they have to feel like they're
loyal and then resentment builds

607
00:19:31,000 --> 00:19:31,160
up.

608
00:19:31,160 --> 00:19:32,640
I'm not like making this stuff up

609
00:19:32,740 --> 00:19:33,300
by the way.

610
00:19:33,300 --> 00:19:34,620
This is like all stuff I've seen

611
00:19:34,620 --> 00:19:39,420
firsthand I've been involved in
either personally or help coach

612
00:19:39,420 --> 00:19:40,720
people off the edge of the cliff.

613
00:19:40,720 --> 00:19:41,960
This podcast is brought to you by

614
00:19:42,300 --> 00:19:42,660
Americana.

615
00:19:42,660 --> 00:19:43,920
So now the other part about

616
00:19:43,920 --> 00:19:44,580
building a team.

617
00:19:44,580 --> 00:19:46,620
And this is the thing.

618
00:19:46,620 --> 00:19:48,380
I'll mention this on the podcast.

619
00:19:48,380 --> 00:19:50,760
I'm going to do, I think my next

620
00:19:50,760 --> 00:19:54,400
one, but about brokers just throw
the world around like scale on a

621
00:19:54,400 --> 00:19:55,140
scale of my business.

622
00:19:55,140 --> 00:19:56,620
And I don't like you're out to

623
00:19:56,620 --> 00:19:58,020
lunch if you want to scale a
mortgage business.

624
00:19:58,860 --> 00:20:01,220
Mortgage businesses, like the
definition of scale is exponential

625
00:20:01,220 --> 00:20:01,980
growth without exponential
resources.

626
00:20:01,980 --> 00:20:04,480
Like, so it's like I'm doing 100K
and these are my fixed costs.

627
00:20:04,480 --> 00:20:05,220
I want to do $400K.

628
00:20:05,220 --> 00:20:08,900
I don't want to keep my fixed cost

629
00:20:08,900 --> 00:20:09,580
relatively low as well.

630
00:20:09,580 --> 00:20:11,100
Like to go scale with quotation

631
00:20:11,100 --> 00:20:12,700
marks, a mortgage business, like
what the fuck?

632
00:20:12,700 --> 00:20:13,440
That doesn't happen.

633
00:20:13,440 --> 00:20:14,440
Like on average, every $250 ,000

634
00:20:14,440 --> 00:20:17,020
of revenue that you have, you have
an employee.

635
00:20:17,020 --> 00:20:18,200
That's like a thing within just
businesses.

636
00:20:18,500 --> 00:20:18,980
Mortgage as well.

637
00:20:18,980 --> 00:20:22,060
Every $250 ,000 you do, you

638
00:20:22,060 --> 00:20:22,900
usually have an employee.

639
00:20:22,900 --> 00:20:24,140
So you can never scale because it

640
00:20:24,140 --> 00:20:26,600
always comes with an employee.

641
00:20:26,600 --> 00:20:27,040
Now you're managing people.

642
00:20:27,040 --> 00:20:29,180
And this is the flip side of
building an internal team.

643
00:20:29,180 --> 00:20:31,960
And I'm going to talk about it and
then we'll shut this down.

644
00:20:31,960 --> 00:20:33,860
You have a team where you're like,
hey, I'm doing 60, 70 mil.

645
00:20:33,860 --> 00:20:35,100
At that point, you need two to
three people.

646
00:20:35,100 --> 00:20:37,720
I had one, but I ran my shop a
little differently.

647
00:20:37,720 --> 00:20:39,660
But let's just say you have two
people.

648
00:20:39,660 --> 00:20:41,140
Let's say you want to keep
growing.

649
00:20:41,140 --> 00:20:43,140
You want to go to 100 mil.

650
00:20:43,140 --> 00:20:44,480
OK, well, now you're going to need

651
00:20:44,480 --> 00:20:45,860
three, four people.

652
00:20:45,860 --> 00:20:48,260
OK, so now you start turning into

653
00:20:50,640 --> 00:20:53,720
if that's the model you want to
build and you're like looking at

654
00:20:53,720 --> 00:20:56,180
what you net out every year,
you're doing 100 million in

655
00:20:56,180 --> 00:20:56,240
volume.

656
00:20:56,240 --> 00:20:58,520
I know people doing 100 million in

657
00:20:58,520 --> 00:21:01,220
volume and after all expenses and
everything, they're netting out

658
00:21:01,220 --> 00:21:01,860
five, six hundred.

659
00:21:01,860 --> 00:21:03,480
Whereas you could do 50, 60 with

660
00:21:03,480 --> 00:21:05,480
one fulfillment and have a really
good quality of life and probably

661
00:21:05,480 --> 00:21:07,800
net a high force.

662
00:21:07,800 --> 00:21:09,980
Start doing the math on all this

663
00:21:09,980 --> 00:21:15,000
and you're like, geez, I don't
even know if it's worth building

664
00:21:15,000 --> 00:21:15,660
out your own team.

665
00:21:15,660 --> 00:21:17,710
Otherwise, because like, what am I

666
00:21:17,950 --> 00:21:18,210
doing here?
What am I like?

667
00:21:18,210 --> 00:21:22,230
What is my day to day look like?
Because you're going to end up

668
00:21:22,230 --> 00:21:26,870
being a project manager, a project
manager where you're just now

669
00:21:26,870 --> 00:21:27,930
managing different departments.

670
00:21:27,930 --> 00:21:30,130
So sure, you took yourself at the

671
00:21:30,130 --> 00:21:31,290
day to day of doing mortgages.

672
00:21:31,590 --> 00:21:33,670
But now you're managing, you know,

673
00:21:33,670 --> 00:21:35,850
your underwriter, two
underwriters, fulfillment,

674
00:21:36,110 --> 00:21:36,890
customer service person.

675
00:21:36,890 --> 00:21:38,010
You're managing an agent who's

676
00:21:38,010 --> 00:21:39,230
taking discovery calls.

677
00:21:39,230 --> 00:21:40,830
You're listening to recordings of

678
00:21:40,830 --> 00:21:41,170
discovery calls.

679
00:21:41,170 --> 00:21:42,390
You're coaching them up on that.

680
00:21:42,390 --> 00:21:45,140
You're looking at all your
metrics, all your data, all your

681
00:21:45,140 --> 00:21:45,480
KPIs.

682
00:21:45,480 --> 00:21:46,720
You're trying to find holes in the

683
00:21:46,720 --> 00:21:46,900
boat.

684
00:21:46,900 --> 00:21:47,340
You're working on the brand.

685
00:21:47,340 --> 00:21:49,080
Like you're just doing all these
different things.

686
00:21:49,080 --> 00:21:52,140
And so this is where I've seen
people go all that way and then

687
00:21:52,140 --> 00:21:52,420
pull back.

688
00:21:52,420 --> 00:21:55,260
And they go down to one person and

689
00:21:55,260 --> 00:21:56,740
they live like out and work 30
hours a week.

690
00:21:56,740 --> 00:21:59,080
You know, live with the results
and I'll bank my 400K and just do

691
00:21:59,080 --> 00:21:59,140
that.

692
00:21:59,140 --> 00:22:00,400
And I see other people going the

693
00:22:00,400 --> 00:22:01,080
other way and they're ramping up.

694
00:22:01,080 --> 00:22:03,600
I don't think they've talked to

695
00:22:03,600 --> 00:22:05,420
people who are already there
because there's only certain

696
00:22:05,420 --> 00:22:07,260
people have figured out how to do
that effectively.

697
00:22:07,260 --> 00:22:10,380
Everyone else, you're kind of
like, now you're an HR department

698
00:22:10,380 --> 00:22:10,640
too.

699
00:22:11,050 --> 00:22:11,870
You're hiring, you're firing,

700
00:22:11,870 --> 00:22:13,990
you're training, and then all the
other stuff you're project

701
00:22:13,990 --> 00:22:14,350
managing.

702
00:22:14,510 --> 00:22:16,590
And it's kind of like, oh, so I

703
00:22:16,590 --> 00:22:19,950
don't know if that's the answer
that a lot of people want either.

704
00:22:19,950 --> 00:22:23,450
But they say, I want to scale, but
I'm like, be careful when you

705
00:22:23,450 --> 00:22:24,030
scale, it comes with people.

706
00:22:24,030 --> 00:22:25,050
You drag people along for the

707
00:22:25,050 --> 00:22:25,170
ride.

708
00:22:25,170 --> 00:22:26,830
So just be careful to use those

709
00:22:27,510 --> 00:22:27,830
words.

710
00:22:28,010 --> 00:22:29,110
So this was me, just three people

711
00:22:29,250 --> 00:22:30,670
asked me this week, hey, I want to
start a team.

712
00:22:30,670 --> 00:22:31,610
And I'm like, hey, let's break
that.

713
00:22:31,610 --> 00:22:32,410
Let's unpack that a bit.

714
00:22:32,410 --> 00:22:34,570
And then let's talk about it.

715
00:22:34,570 --> 00:22:34,910
That's it.

716
00:22:34,910 --> 00:22:37,510
Then you're going to go do what

717
00:22:37,510 --> 00:22:37,970
you do.

718
00:22:37,970 --> 00:22:38,790
I've got two very exciting podcast

719
00:22:38,790 --> 00:22:39,920
episodes coming up.

720
00:22:39,920 --> 00:22:43,120
Episode 299 is I'm pulling the

721
00:22:43,620 --> 00:22:48,560
curtain back on my team, how I
built it, the challenges I had,

722
00:22:48,560 --> 00:22:49,980
big time challenges I had.

723
00:22:49,980 --> 00:22:52,020
You're going to learn a lot of

724
00:22:52,020 --> 00:22:52,300
stuff there.

725
00:22:52,300 --> 00:22:53,620
The underbelly of our industry.

726
00:22:53,620 --> 00:22:55,940
I'm going to pull the curtain back
on everything.

727
00:22:56,080 --> 00:22:58,440
And then number 300 is a special
guest I have talking about what I

728
00:22:58,620 --> 00:23:01,340
think is the biggest pandemic in
the Canadian origin industry.

729
00:23:01,340 --> 00:23:02,160
So we talked about that.

730
00:23:02,160 --> 00:23:03,080
So super pumped on that.

731
00:23:03,080 --> 00:23:04,200
Thank you for the support,
everyone.

732
00:23:04,320 --> 00:23:04,880
Enjoy your day.

733
00:23:04,880 --> 00:23:05,140
Peace out.