eXp Commercial - Can Your Brokerage Compete?
Brett Swarts is considered one of the most well-rounded Capital Gains Tax Deferral Experts and informative speakers in the nation. His audiences are challenged to create and develop a tax-deferred transformational exit wealth plan using The Deferred Sales Trust™ (“DST”) so they can create and preserve more wealth. Brett is the Founder of Capital Gains Tax Solutions and host of the Capital Gains Tax Solutions podcast. Each year, he equips hundreds of high-net-worth business professionals with the DST tool to help their high-net-worth clients break out of capital gains tax jail.
Mr. Swarts is passionate about educating high net worth individuals in capital gains tax deferral with a Deferred Sales Trust, how to divest from a business, cryptocurrency, highly appreciated stock, primary residence, or investment real estate to gain freedom from feeling hostage to capital gains tax or a 1031 exchange, then invest back into a new business venture or investment real estate at any time [all capital gains tax deferred] which he calls optimal timing.
His experience includes numerous Deferred Sales Trusts, Delaware Statutory Trusts, 1031 exchanges, and $200,000,000 in closed commercial real estate brokerage and Deferred Sales Trust transactions. He’s an active commercial real estate broker and investor with brokerage experience and ownership in multifamily, senior housing, retail, medical office, and mixed-use properties. He is a licensed California Real Estate Broker who has held series 22 and 63 licenses.
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Brett Swarts:
In this episode, I'm covering all things eXp Commercial, made simple as well as can your brokerage compete. I just got back from Tony Robbin’s whole week mastermind in Dallas, Texas, about 6000 M&A Business Brokers, and Real Estate Agents, Commercial Real Estate Brokers came together to share ideas about building their businesses, building more loyalty with the team and so much more. I'm going to dive into some of those insights as well as just share with you a bit about all things eXp Commercial, quick background, I'm a multifamily broker. I started out at Marcus & Millichap in 2006. I grew up in the real estate business. I love cash flow producing real estate, I love buying real estate helping clients buy and sell multifamily properties. I'm also the founder of Capital GainsTax Solutions, you might see that in the background here, where we help people defer tax, not using the 1031 Exchange, which for cryptocurrency can save a failed 1031 Exchange. You can learn more about that at capitalgainstaxsolutions.com, but we are talking and we are passionate about all things, growing your business and growing your team, and so let's just start with what is eXp, and kind of where the journey has come. I'm going to go ahead and share my screen here, and you should be able to see this now and let me see if I can figure this thing out.
This is all things eXp Commercial, and the goal is to get more from your commercial real estate brokerage. What is your broker's doing for you? What I like to say is are you on the left side of the quadrant or the right side of the quadrant. If you've read Rich Dad, Poor Dad, Robert Kiyosaki, he talks about being an employee, being self-employed, being a business owner and being an investor, and eXp, I believe has figured out a way to basically move you over to the right side of the quadrant, a business owner and an investor by stock ownership revenue share, and in aligning with others who are part owners of a company without having to have massive overhead, all kinds of expenses and a lot of risks. They've done that through technology, and they've done that through innovation and leadership. First of all, eXp Commercial is built on the back of eXp Residential, which went from a penny stock to over $150 a share over 11 year period. In fact, it's known as the fastest real estate brokerage in the history of real estate brokerage, and so eXp Commercial is built on that foundation, and it's focusing like a laser on commercial real estate brokers, business brokerage, and also mergers and acquisition, acquisition. Advisors there, and its core values are here. But what I really want to focus on is that it's a leadership company.
It's a technology company. It's a real estate company, but you can't put eXp in a box. It's truly something that's special, and how they figured out how to maximize value for you and me as the commercial real estate professional as the M&A Advisor is the business broker, and that's a powerful thing, when you can win when you can align financially and strategically your team, your profits, your marketing, technology, and so much more, and let's dive back into the presentation here, and keep this going. I want you to think about the unique model of old-school Brick and Mortar. Old school Brick and mortar, you have, let's say the blockbuster versus the Netflix, but he eXpis figured out a way to scale as Netflix did versus block push like Amazon did a Circuit City, and it's figured out how to do that by cutting out a lot of the overhead. A lot of them, in fact, they're 100% virtual, and they don't have huge, huge expenses, and what they've done with that savings is they pass it on to the agent, and so I just hit an old way and there's a new way to do things old way was blockbuster new ways Netflix.
I use the same thing with Capital Gains Tax Solutions, which is the old way was a 103 Exchange the new ways the deferred Sales Trust circuit city, Amazon, and eXp is kind of like an Amazon of the traditional real estate brokerage and that they are innovating and creating more and more things. You remember Amazon in the beginning, they just did use books, and then through innovation, technology, and growth, they're the biggest company, they have an apple in the world. It's one brokerage, and it's not a franchise, and it's important to understand that it's an international company. But you're not having to put a bunch of money in or buy into, you can't buy your way into eXp Commercial, but you can build your way in through amazing service to your client’s great representation, and creating loyalty and coaching, and bringing others on to do the same. I remember being at Marcus & Millichap and feeling like every time I train somebody that there's a potential that they could I would help hold back a little bit. Because in the past, I'd be burned because some people would either, get a new position at CB Richard Ellis or JLL or Cushman & Wakefield or they'd even compete in the same office, and it was a weird dynamic because the model was stacked against us and that 50% of most commissions in the least the first 100,000 of gross commissions, were going to be paid to Marcus & Millichap or the big brokerage.
That's great because I had amazing training. I have everything great to say about Marcus & Millichap. I love the company. I have a lot of good friends that are still working there. But financially and strategically, it's built for building Marcus and Millichap not building it all for us and I say us as the eXp Family. The typical franchise or typical brokerage has costly overhead as desk fees as franchise fees. It's locally confined, it's a smaller referral network like it's just Sacramento or it's just, Miami, Florida. This is just in the Los Angeles area. It's not global, right. It's inconsistent growth incentives, minimal opportunities for ownership, and limit and in fact, they don't necessarily give stock or rev share anything like that, and also limited technology and support few tools and support resources are in the eXp Models, cloud campus environment, no desk fees and work from anywhere, live training over 50 hours of live hourly 50 hours a week of live training, real-time support multiple brokers at a click of a button. International collaboration, they have over 17 countries now, and then powerful equity opportunities and revenue share and stock equity programs. This is again, eXp has already proven the model is now the fastest-growing real estate brand in North America and has over 60,000 real estate professionals.
We think it's the fastest growing in the world can't quite check that for sure. But that's what we're seeing, and then, in fact, it's also been named by Glassdoor, one of the top places to work, and I can say after being with eXp for over a year, it's lived up to all the hype. In fact, it's exceeded the expectations for me and my team, and I've never been more excited about a company, about leadership about the future of the brokerage world, and so we're growing we have multiple team members across the nation, and we're growing and we're taking all of the fundamentals of real estate brokerage of adding value to clients of solving problems, and what's neat about it is we get different people from different markets, different perspectives, and we bring that together and like a mastermind, for example, part of my business team, the number one Keller Williams agent in the world seven different times, as a part of my mastermind team I get to learn and glean wisdom from he sold over 7000 transactions. Now he's in residential, it's different than commercial. But guess what I can learn a lot from him. In fact, it's good to get other ideas from different industries in different approaches.
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