Why Most Agents Stay Broke (And the Mindset Shift That Fixes It)

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Kevin Kauffman 0:01
Welcome to Next Level Agents, the podcast that's all about breaking barriers and building empires. I'm Kevin Kaufman, and together with my crew, bringing you straight up fire. Interviews with top tier agents, game changing thinkers, plus the strategies and mindset shifts to dominate in real estate. Whether it's personal growth, leadership packs, or next level tactics, we've got you covered. So tell me, what does the next level look like for you? Buckle up because we're about to take you there right now. Hey guys, Kevin here. Today's episode is going to be another share from the weekly Zoom that Fred and I host for our EXP group, next level agents at EXP Realty. I think you're gonna like this. Take a listen.
Kevin Kauffman 0:46
Just know that it's it was actually recorded over Zoom for the purpose of a live audience. But I just thought it was powerful that I'm gonna share it with you today too. Hope you enjoy it.
Fred Weaver 0:57
But why most agents stay broke? I might get excited. I might get fired up. I've had a lot of coffee, maybe an energy drink or two, so we'll see. But this is something that's like it i it it reoccurs so often. As you have like a real estate team, or if you're doing any type of recruiting from a school list or agents getting into the business or agents less than two, two, three years in the business where they're still trying to find their way. I truly believe there's some pitfalls in Why agents stay broken. They never really make this a career, right? Because you're in one of the best vehicles in the world, cash flow-wise. I just met with a buddy of mine, a guy named Kyle, been been a business partner of mine in the investment space for a long time.
Fred Weaver 1:35
And he actually owns a $50 million company. He's been scaling it for the last five years. He has not taken a single dime out of the company. He has over two and a half million dollars invested in this transportation business. He's in Multiple markets. Last week he he his net profit was 125 grand, right? So we were talking about gross profit and net profit. His net profit right now is at six percent of a fifty million dollar business. And I go and I said to him, man, I go. I don't know if there is a better cash flowing business than real estate. And I'll say that again. The barrier of entry to get in this business is by far the lowest of any company that I I know. I that any any company out there. My son just started a trailer rental business.
Fred Weaver 2:22
I've invested 15 grand into buying a couple of trailers. That's more money than I invested in my real estate when I first got into it. Right. So it's cash flow in this business is crazy. But what happens is we stay in one lane. And that lane is servicing clients. We're always trying to get our feet wet. We end up going from one transaction every two months to three to four. And I think the the the core philosophy, and I have some notes. So if you see me look away as this, I'm looking at my notes, but like I have a core philosophy of why agents stay broke is they believe that they've earned freedom. They've earned freedom in this business as soon as they got into it. Everybody wants to get into real estate for two reasons.
Fred Weaver 3:02
You got freedom, freedom of time, and then financial freedom, right? That's why people get into real estate. Well, the truth is you only get freedom of time. As long as you're not successful. Right.

Why do most real‑estate agents stay broke despite earning a license?

Fred Weaver 3:15
So until if you guys know what I'm talking about here, right? So like you you get in the business, you have no clue what to do with your time, you work all your time in lead generation, and then you get busy and then your freedom goes away and then you have to pay for freedom by hiring staff or or it's leverage to be able to do it. Right. So we stay broke in this business because we never actually think about this as an actual company. We always only think about it as a salesperson. We're in this business, we service clients, right? We we go find buyers, we go find sellers, and we just service them. We want to be in this business from freedom of time, freedom of money. Then six months later, you do two, three, four deals, and then six months later you're broke again.

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