Daniel Beer - Keller Williams Mega Agent & CEO of Daniel Beer Home Selling Team joins EXP
Daniel Beer Interview
Joining us today is Daniel Beer. Daniel is the CEO of Daniel Beer Home Selling Team in San Diego California and has been in real estate since 2005. In 2017 his highly leveraged team was the top producing team in Southern California.
Daniel shares his story about his business with us, talks about his decision to move his already successful business to EXP Realty and explains why he believes EXP is the most important opportunity that has ever existed in the Real Estate industry.
Remember our disclaimer: The materials and content discussed within this podcast are the opinions of Kevin Cottrell and/or the guests interviewed. This information is intended as general information only for listeners of the podcast. Listeners should conduct their own due diligence and research before making any business decisions. This podcast is produced completely independently of eXp Realty and is not endorsed, funded or otherwise supported by eXp Realty directly or indirectly.
In this episode
- Why EXP is the most important opportunity in Real Estate
- How easy it is to move to EXP
- Many mega agents are making the move to EXP
- Creating revenue and passive income through EXP
- EXP is currently the fastest growing company in Real Estate
- The benefits of moving to EXP in these early stages
- EXP is like buying in to a business without paying for it
Want to Learn More about eXp Realty?
If you are interested in learning more about eXp, reach out to the person who introduced you to eXp or contact Sean to inquire or ask questions.
Contact Daniel via his website www.fastforwardwebinar.com
“It’s killing the traditional model and this is the highest value proposition available today to people selling houses.”
“Me being at EXP has nothing to do with wanting to move away from Keller Williams vs it actually just has to do with me wanting to move towards something that I see as being a phenomenal opportunity”
KEVIN: Welcome to the show Daniel.
DANIEL: Thanks Man. It’s good to be here.
KEVIN: Looking forward to the conversation.. The market and the industry are a buzz when you made the move recently but before we jump into all that why don’t you give a little bit for those that maybe are listening to this that don’t know you personally and know what you do as far as your real estate practice a little bit of your background.
DANIEL: Sure. So having been real estate full time since 2005 and this past year 2017, my team was the number one producing team for all of Keller Williams and the Southern California region IGCI. And number two buy units. So we closed 222 houses for 164 million dollars in sales volume. We have what I call a highly leveraged fully built out team everything from operations, listing management, transaction management through company listing, showing agents inside sales and of course our sales agents or sales executives. It’s been an incredible journey. And I went through the same Genesis that I think a lot of agents go through. I like most other stumbled into the industry. In 2005 I was 23 years old and my dad was about to sell a house and of course I got licensed because it’s unfortunately are too easy to get licensed. And I started selling homes basically just doing friends and family business and that was cool. Up until the market crash.. The market crash happens we all know how devastating that was. All the friends and family business goes away. And I’m left to either make a decision to leave the industry or learn how to build a true business that can predictably systematically create leads in income for my family. So fast forward there were a lot of learning that you know that I went through is some winds some fails and here we are today having a ton of fun and now at EXP man I can’t even begin to tell you how energising this has all been. I haven’t had as much fun in a long time.
KEVIN: And that’s great. I like Gene Frederick we’re team leaders and in leadership at Keller Williams I was with Aaron Lancaster and Andy Allen in the early 2000s and they had a team and we ran and we were doing about 600 transactions a year and that was the genesis for the whole MREA and so we thought we were having a lot of fun back then but it’s nothing like this. So tell me about the process. Obviously well before you decided to move you started to hear about the EXP and you start seeing agents moving. What was the genesis for you making the decision to take a major big business like yours and make a change.
DANIEL: Yeah it was an interesting journey. And so for me my personal story goes back to being in Gary Keller’s mastermind of killer Williams so I have to say by the way it was a wonderful company. I was very very happy there and me being he has nothing to do with wanting to move away from kW vs it actually just has to do with me wanting to move towards something that I see as being a phenomenal opportunity. So anyway I was at Keller Williams. I was part of Gary Keller’s mastermind. And you go back over a year ago. All of a sudden in our group we had a Facebook group. We suddenly started having people asking you know and making comments asking questions about EXP. And you know questions like “EXP just did this in my market” or “what are you guys doing about EXP saying this” or taking this person or “oh my god you hear we lost that one”. And I found that to be really interesting because first of all I don’t know who the EXP was. I had never heard of it. And of course at the time it was like a 2000 person company. And so I started to asking myself this is where do you think it’s curious that the most elite group in the biggest company in the world or at least in North America is talking about some 2000 person company. But I have never heard of. So that’s over a year ago and you know going back to say mid 2016. And the interesting thing about that too is that.. that group never talked about Berkshire Hathaway and they never talked about Remax they never talked about Coldwell Banker. They never talked about anybody. Yet they were talking about some little 2000 person company. So that’s kind of interesting right. That was my first introduction to it all. I have another group that’s a very very high powered mastermind. Everyone’s number one or two in their market. There’s about 35 or so people in it and that group all of a sudden three of them went to EXP. I’m talking about big heavy hitters. And so I learned the model and Kevin I think this might resonate with you. You know there’s an evolution in this whole thing just when you hear about it, there is when you learn the model. So you go back over about a year ago. I understood the model okay call their stock. There’s revenue share. There’s the fact that you keep selling houses right? We’re not being asked to become essential oil sales or anything we’re just simply selling houses as stock revenue share. Cool. I got it. That was a year ago. But then there’s when you finally kind of see the entire picture come together Kevin and you see the real power of the opportunity to step into the fastest growing brokerage in the country in the very beginning of the first inning. And when you see real productive agents start moving into the business. For me that was Curtis Johnson. Johnson was another guy that I was friends with he’s a guy I followed actually been stocking years back before we knew each other. I was trying to learn from him. Now all of a sudden he goes yes. There’s just that moment when you say wait a second what is going on. Too many incredible smart strategic business people that I respect are making the same move to the same group that Gary Keller’s private mastermind’s talking about. That’s interesting. And so… you know I’ll take a pause here Kevin in case anything to throw in there but when you start seeing that and then start seeing how truly financially incentivize the people at EXP are to help each other and essentially make it true the thing that we all tend to say in all brokerages that we are all for each other we want to share. We want to do this. Not in my market right or not too much. Not my true secret stuff. Well I started finally seeing a model that really incentivize people to open up completely and help one another because everybody financially benefits and the power of that and being able to go from one bucket of income to three right? just simply selling houses getting checks. It’s also owning your brokerage and having passive revenue became so compelling that I made the move and I have been having a ton of fun since.
KEVIN: Couple of interesting tidbits that you’ll know who I’m talking about I’m not going to mention by name because I’ve got a good friend and he’s in St. Louis and he’s got a mega mega team like yours Daniel. I mean he was my mastermind in St. Louis when he was just getting started and I had my team and we were the number three team in the market. So I was talking to him about EXP and he said I get it. I know the model. Don’t worry about it. Let me tell you this I’ve been accumulating stock and EXPI for over thirty four months. I’ve got thirty or forty thousand shares. I can’t tell you the number of people. And he’s with an NRT company. So guys like that are buying stock and the EXPI. There’s a mortgage lender in central Texas. I think he’s got close to 50000 shares. The industry is betting that this is the new model. And so some of the stuff that you know I just wanna throw in here because this predates your entry into KW and I agree with you it’s a great company for people like Gene Frederick and I and others. We were there in 1999 when Keller Williams was a small little company and I’m going to tie down why you said it’s kind of interesting to you to give you some perspective. Gary Keller and the team and the regional directors are all getting ready to launch a ton of market centers. They’ve got somewhere around 50 700 agents in 1999 and they have to go through the process of fining agents finding investors they have to go the 14 to 18 month process that other people have talked with me about on other episodes mentioned this. It’s a slow process right. I could have met you in San Diego. Got you all excited about a market center and then 18 months later we’ll be all through the process and opened. So now Brent Gove and I always give the story because it’s most enlightening when you listen to his interview you’ll hear him say this. He was in San Antonio for the EXP meeting met with Glenn met with Gene met with the team brought some people that were his best Devil’s Advocates said poke holes in this model. Tell me why I shouldn’t do this. Ten days later he is up and operating as the EXP and basically being powered by the brokerage. So the reason that people like you are seeing these antidotal people dropping in and out and it gets mentioned 12 times at fam reunion is this is Netflix versus Blockbuster. If you’re sitting in the private room with Gary Keller’s insiders not the people in the company but the guy that he’s paid millions of dollars in consulting fees to they’re going to tell him this is Netflix vs. blockbuster. You have all this bricks and mortar. You have all these franchise locations. It’s a great company but so is Blockbuster and they couldn’t pivot they didn’t pivot.
DANIEL: It becomes very difficult when you wrap up in hundreds and hundreds of franchise agreements.
KEVIN: Absolutely. The interesting part about that I wanted to tie that down is there were fifty seven fifty eight hundred agents now eight years later they were at 78000 agents right. They executed extremely well. There were a bunch of us in leadership and I ran some market centers in South Florida. Gene was regional director as well as a team leader and phenomenal model lots of execution. The thing is and this is where Gary and the others realize this if it takes some 14 18 months to open a markets and with 100 agents EXP adding agents at 250 plus per week and you don’t need a slide ruler to do the calculus to figure out if we’re disproportionately high on producers like you or in the parlance of the franchise system cappers or better they can figure out what the picture looks like in 3 years when the company has 100000 agents. And I want to do two more data points you may not even know this in a one week period somewhere around Baltimore one of the market centers number one through five at one market center in one week they all basically said we’re going EXP. So that is how you end up with a small little company being mentioned 12 times at fam reunion. The momentum is crazy.
DANIEL: It is an incredible thing and here’s how you know I truly believe this will be the first 200000 person company in North America. And the reason why and that it will also get there much faster than what is currently the biggest company is simply because let’s imagine that you’re an agent somewhere in remote Montana. Okay. And you want to be at Keller Williams and let’s rewind right years back is I don’t know where the market centers are but let’s imagine it’s the year 2000. And you want to be a Keller Williams And you’re in remote Montana. Well they had to award the franchise fine the space build up the space they need to get X amount of what they called capping agents to be able to finally launch. And then eventually you can join that. That’s a long process. If an investor chooses to build a market center in your area. You know that’s that could be a one or two year process there. And again if they choose to build a market center in your area well you could be on a remote mountain top somewhere in Vermont right now without an agent within 500 miles of you and you could be speed this afternoon. And that is why this company without the restrictions of brick and mortar and traditional franchising territories and regions. When you remove all that you allow scale to happen at an exponential rate versus what companies not just in real estate but in any industry can traditionally experience. And so when you take all that in when you hear a guy like me that know I’ve had the privilege of being connected to some of the most incredible producers in the country I have a unique point in that I know what those conversations are. I know there’s market centers being quickly unwinded so that people can move to EXP I know that headline making names across the country across every major city are all in motion right now. Right now is an opportunity that I saw to essentially step into Keller Williams in 1990 and in the very beginning the first inning. It it’s been around for nine years by the way. But I would still say this is the first inning of a productive agents that will quickly and exponentially grow the awareness and the conversation which is already the loudest conversation in our industry is only being magnified each time one of these large producers in a different region nor a different city moves to EXP and the real aha is that if you can do that and you can have world class uplined support from big influential names and people and you’re the first productive agent or among the first if you’re in this first wave the first inning of agents that are really selling house it’s moving into it. Yes. Well everyone wants to know about it. The conversations will naturally flow to you. What I saw Kevin is an opportunity to essentially own my region. It’s like buying a Williams region without ever having to pay for it. And that opportunity was when I could not even I had not pass up. And this happened just like that right?. This is the loudest conversation in our industry.
KEVIN: Absolutely. I mean I want to come back to what you just said because for people we’ve been talking a lot about wins it doesn’t matter if you’re at Remax or even if you’re independent. The analogy of the fact that you can build a business where it’s the equivalent of owning a region something that was out of reach for anybody in the franchise systems is the reality. And so if you’re Daniel Beer and you’re a major producer in your market and you have a couple of choices for additional income this is where I see the next phase of this momentum and rapid growth. You could go expansion right go into multiple markets and there’s a lot of the franchise focus on that and certainly we’re starting to see a lot of talk about this loud conversation from people looking at the EXP from an expansion standpoint and there’s a lot of momentum there but it’s that revenue share regional ownership if you will in the building a business around that that we have enough demonstrable examples whether you listen to the episode by Pat Hayes look into the Gene Frederick ston or even Sherry Elliott and Dallas. It’s incredible now and I think the market with this loud conversation can no longer go. Well yeah. You know what they don’t have anybody that has any real success because now regardless of how you’ve been introduced to this episode or any of the other episodes and as my guest ask whomever introduced you to EXP to go get you success stories. It doesn’t matter if you want to talk to Daniel you want to talk to me Gene Frederick Pat Hays. We’re all agent shareholders we’re all here to help you. And again I want to get your perspective on this. Isn’t that the craziest part of this culture that’s not apparent from the outside. Anybody will help anybody because we’re all age owners we’re all either going to benefit through share or through our ACLI because the stronger the company can become the more our stock is worth in the most simple terms. Like I said the math finally makes sense. It’s the first time it’s been able to put the numbers and the altruistic or altruistic aspirations finally in alignment with the numbers and the math. It’s a beautiful thing. And here’s something I was listening to as I might say to myself OK that’s helpful and great. So the 160 million dollars of real estate in the last 12 months. Sure. What about me. What I have seen over and over and already has set for us here locally in San Diego just within our first literally the beginning stages of us being at the company is if you’re 5 million or 10 million or producer if you’re an agent that’s been operating with integrity showing up as a professional in your marketplace you are vastly underestimating your influence whether it be at a branch level or a zip code level a neighborhood. A town or county or city or state your region your underestimating your influence and keep something in mind. Again you’re stepping into the loudest conversation only is being magnified by every big iconic agent keeps coming into the company which seems to now be happening on a weekly basis. So I’m stepping into the middle of that and your boots on the ground doing deals. Talking to agents talking to a hundred plus agents on a yearly basis. No one’s asking you to go become a recruiter. In fact make sure you keep selling houses. Do what you do sell houses. All you needed really did was alter 10 percent of your awareness 10 percent of your script when speaking to an age. Something as simple as closing a deal out with somebody and just simply calling them hey is great doing that. You know what let’s do another one soon. Let me know. Let me know if you listening coming up. You know I had the same conversation you’re already having. And then just adding. And by the way you mentioned earlier during our transaction you know you’d asked me about EXP. We’re actually having an event or there’s this wedding or going on or blah blah blah. What I’m trying to say is that someone like me someone like Kevin and a lot of other folks across the country there’s a lot of opportunities to it regardless of sponsorship there’s a lot of people like us that have already created the system. Or you could just alter 10 percent of your awareness and introduce people into the system so that you can continue to do what you do and sell houses. You’re going to go from what I call one bucket to three real estate sales but can we just sell a house and get a check. Transition to now having ownership. Because you actually get ownership simply for doing their jobs and having passive revenue here locally. Kevin like it points out an agent great agent just you know your bread and butter productive long time respected agent. She’s not a YouTube star she’s not on stage. She’s just doing what she does in her local market place for some time. And she has five hundred ish dollars of profit sharing the last 12 months that her previous company her revenue share based on which she’s already introduced. It’s unnatural attraction and conversations coming to her is already on track for seven thousand dollars this year. And I think that’s incredible. I think that’s the most incredible thing because it makes seven thousand dollars in passive revenue in San Diego. You need to invest about a hundred and twenty thousand dollars cash to do it in real estate on a rental. So that’s power.
KEVIN: There are tons of examples and you’re going to see them on these podcasts episodes. I mean I always love to tell the story of Sherri Elliott. It’s one of the other episodes she was age at number 14 in Dallas and they have over a hundred there now. So when you look at the growth of the company the other thing I want to point with that comment is even if Daniel’s point you’re in a market where there aren’t 800 agents. Here’s the deal if you’re in a market like San Diego it’s coming. Right. Less than two years ago Dallas had 14 agents they have 800. Austin’s over 315. I’m just picking a couple of markets. Daniel have every confidence that you’ll be at a huge number in the southern California San Diego market and it will be but here’s the point nobody in real estate does a good job of saving like you can with an opportunity like EXP. I want to talk about her two numbers that she talks about publicly. One is the equity she’s been hurt less than two years she participates and in the GCI program where she dedicates 5% right? And if you’re at a franchise and you pay that royalty. Think of it as the same thing off the top she has. And when she told Gene this recently, even hundred thousand dollars in her stock account in EXP stock and less than two years. So I challenge anybody listen to this. If you’re an independent you’re in the franchise model and where you are you’re never going to see something like that. We were telling the story and one of the lunch and learn actually explain meetings and one of the three agents from Austin was in there and she said well I don’t know nearly as much business as Sherry does and this is your point. I probably do a tenth of what she does in production she said. Isn’t it interesting that my stock portfolio in less than two years of the EXP stock is 155000. I’ve never seen that much money in a investment account my life. Those are why Daniel’s point of you don’t have to be 150 million dollar producer with a big team. You could be a capper in that parlance.
DANIEL: Well the story I told news about someone that’s been in the company for three weeks its simply for this reason. And really this is the thing that people have to take with them. If you go and see who’s making six figures profit share. Keller Williams which again a wonderful company that I love respected. Gary Keller will forever be one of my biggest influences if he goes to you. Who’s collecting six fingers of profit share at Keller Williams what you’re going to find is that it’s not the superstar agents it’s not the guys on YouTube on stage and being created around panels and it’s not the celebrity agents that you whose names you know today it’s actually the people whose names you don’t know who were simply there early period. Now that doesn’t mean they just showed up and didn’t do it thing. And he EXP isn’t that either. You can’t just show up and not participate. It’s not a get rich quick and just you just sign here you a million. No that’s not what it is. But the people collecting six figures of profit share at KW And that’s profit share revenue sharing exponentially more powerful only to talk about why in a moment. And a key reason why as we go deeper into it the number one reason why is top line revenue can’t be manipulated. People collecting six figures of a profit share in this. You have to allow them to land. It’s not a celebrity agent. It’s not the people you saw on stage at the last conference convention etc. It’s people that were there early. In my view is 1995 all over again being given the chance to enter. What’s about to be the fastest growing company in the history of North American brokerage and I might be wrong right. I mean I’ve done an incredible job of being right more often than not in terms of my vision of where to take my business which is how we’ve got here. But I’ve also been wrong but was a guy like Curtis Johnson also rock the guy like Jay Kinder was a guy like Frank go wrong and Gene Frederick are all of these producers Kyle Wessell 200 million dollar producer was he also wrong are we all seeing the same thing and are we all wrong. Well I’m excited to find out. Here’s the thing. The odds of all those people being very low and if we are we’ll just go back to selling houses because that’s what we’re doing is we’re selling houses. And so you obviously can hear the enthusiasm and buy my voice around what’s going on here. It’s just been on fun I keep coming back to that. You know what I’m talking about Kevin like me the amount of energy that you feel around all this. It’s something I hadn’t felt until…
KEVIN: Absolutely I would agree with that completely. Before we drop off today if somebody is listen to this and they want to reach out to you and talk more about it what’s the best way to reach you.
DANIEL: Well two things you could do. One is my name is Daniel Beer. So just like the drink I’m easy to find. Go get me. Call me e-mail me it was jump on a call. The others go to fastforwardwebinar.com spell out the whole model. We spell out exactly why we’ve done what we’ve done not just my self on the way but some other mega producers that have made to jump as well. Independent brokerage’s you know I’m giving you the KW because that’s my history but independent brokerages are seeing that this becomes a platform where they still get to operate their brand. They’re what they wanted to build their brokerage associates operated they just can get rid of this stuff it’s not so unlike the broker stuff repurpose that time to building your passive revenue it and not have to take your eye off the ball at all as it relates to real estate sales. So you want more detail around it it is fastforwardwebinar.com and yeah it takes a whole webinars. The reason why is it’s a completely different model. It’s a model that I hadn’t seen in my entire career. And it’s just different. And when we’ve been looking for what’s going to disrupt our marketplace. You know Kevin we always thought it was going to be someone that would create a button that would allow a buyer to purchase a home. That’s actually not where the disruptions coming in disruptions coming in the brokerage space and how the agent is demanding value from their brokerage on a level that had never been previously demanded before it and that’s happening more and more. It’s killing the traditional model and this is the highest value proposition available today to people selling houses.
KEVIN: Absolutely I agree with you. Thank you so much for coming on the show.
DANIEL: You’ve got it!