As a real estate investor Connor Steinbrook understands the power of passive income, wealth building, and exponential returns.
That’s what he saw in eXp Realty’s revenue share plan and equity program.
Connor got his real estate license and steadily built a revenue share team to the point where over 100 agents are joining every month.
As a result, he is passively earning a high six figure revenue share income that is growing faster than he ever imagined.
Transcript:
Chris Bounds 00:02
You took a different approach to building a team. You had zero desire, actually, you weren’t even a real estate agent but you’re a real estate professional. You were an investor, rental properties, notes, subject to, you’re even doing flips and wholesaling. And then, this, the stars aligned. What happens? Start there, and why did you decide to even go and get your license and do all this craziness?
Connor Steinbrook 00:26
A lot of people have been reaching out to me on eXp for a long time. And just to be honest guys, I just blew everybody off, for over two years. I would look at five seconds for a presentation, I’d say I understand why it’s powerful. I understand what’s going to work for somebody.
It’s just not for me. I never really took a deep look at the business model. And now speaking of owner financing event in Jackson, Mississippi, and I got to stay at a house with other speakers at that event, and one of them was the number one guy in our company. Now, it’s finally kind of wrangled down, and I couldn’t escape for three days, and I was able to see, what everybody else is saying, which is the best bit small my opinion it’s ever existed in the brokerage role.
And I saw that, this was gonna give me the ability to run a full real estate entrepreneurship business, meaning on both sides of the business, sales side, and investing side. I could have an active income component, residual income component and an equity component to my business. As I said, this is the first time this has ever been able to be done.
The other thing I said is, this is going to give me an international platform, to grow an organization all around the world. So, because of social media, the world’s connected. It’s getting smaller and smaller. And I realized that the size of my business is directly related to the size of my market share, and to be able to leverage this business model and get outside the management, meaning I’m not in inside legal review, I’m not handling contracts, I’m not handing paperwork, I’m not handling accounting, I was going to be able to scale this business and all these different markets and connect with partners that have in different markets, use social media scale.
I scale all my businesses simultaneously alongside this one. That was the big one international growth opportunity, and an ability to create wealth, with my sales with a license that just hadn’t seen before. On the sales side.
Chris Bounds 01:57
Yes. And so, you basically took the- it’s almost like affiliate sales and referral fees. Referral fees are basically what agents called affiliate sales. But you were able to do that in a way that exponentially grows. We both own rental properties, but our rental properties, never get up, walk down the street and buy another one for us.
We’d love it, if they did. It’s never happened before. Rental properties do call us, like one last night, that their gauge back went out. They do call us and say “Hey, we’re going to be late at rent, we’ll pay you at the end of the week”.
Rental properties are great, but they do cause- There’s some headaches, they’re not completely passive. You took a different approach, to the revenue share, to the affiliate sales, referral fees, something that grows exponentially and grows over time, and it pays you every single month. And it truly is passive. How’s it truly passive? And why would anyone even focus on that? Because, I mean, what can you really make? Is it even worth it?
Connor Steinbrook 03:02
But I mean, it’s a substantial income stream. I mean, people are making five, six, and even multiple, six figures a month in residual income. And the ability to have a recurring residual income stream that comes in that you created one time with their time ahead of time is the most important thing every entrepreneur needs to understand.
It’s the only thing that really matters is residual income streams. Because, if you trade your time for income, what happens when you can’t trade your time for income, and this happens to everybody. Life liabilities, pick up children, grandchildren, taking care of your parents, you know, health issues. All sorts of things are gonna pull your time away from your business. And there’s a ton of people in the industry that are money free.
A lot of top sales agents, a lot of top investors, flip houses, a lot of active income earners create money freedom, but they don’t have time and money freedom. Residual income is the only way to do this. Now, the traditional ways we’ve always done this through investing our rentals, notes, passive money lending side businesses, affiliate marketing businesses for information products, but there’s never been anything like the revenue share model that I’ve come across.
Because I’ve been in different industries over the past decade or so. I’ve built over 20 separate income streams. Some are big, some are small, some are average, but I’ve had a taste, and I’ve been able to test I guess you could say lots of different ways of creating income. And as far as scalability with low risk,
I’ve never seen anything like this because it’s leveraged like you just said, a rental houses don’t relate and walk down the street buy houses for me. On top of that, it’s like not only do is if you look at it as cashflow numbers, like a rental house will buy a rental house, they will also as far as agents go out there and marketplace and find inventory to bring back for investors to buy for their investing business.
It’s a complete cyclical pattern of how you can run both sides your business together. Now, the income for the risk register is massive. I think you asked me how much we’re making. It’s right around pk a month. Last month I made just over $48,000.
Chris Bounds 04:49
And how long? How long does it take that?
Connor Steinbrook 04:52
Just a little over three coming up on about three and a half years I’ve been here. We’re growing it over 100 agents a month. Now I think we’re now in 43 states. Eight Canadian provinces or something like that, or seven. And it’s just growing so fast. It’s really in control.
And that’s really what you guys need to understand about, this is leverage, duplication. This grows without you having to grow it. It’s outside of your time element, which means you’re leveraging other people’s time other people’s money, which is how you grow a business, that’s why it’s so powerful.
Chris Bounds 05:22
And you still buy rentals. I buy rentals. A little tougher. I mean, the market is hot, low inventory, people will pay pretty much full retail for rentals. The rev share that like just be personally, just this month, so month over month, rev share went up is now three times what the rental income is. I did that in just one month, and went up three times. Like, I would love it if my rental properties tripled within 30 days.
It’s has never happened before, maybe it will one day, I don’t know. But the revenue share has and I didn’t have to sign a ton of paperwork for all that to happen. But more importantly than that, actually, it’s developed some amazing relationships like us. I can now like- you’re a social media expert, you’ve been able to pour into our business, and even some of the colleagues that we work with helping us build like channels like this, like the invested agent, YouTube channel, how to do social media marketing, video marketing. And then partners like Matt Gardner in Destin, Florida, someone in which, from outside of this dynamic, we’d really never have any reason to overly collaborate.
I mean, we’d be friends, acquaintances bump into each other, but outside of this, there would be no reason for that. But instead, we can actually actively collaborate so much, that he’s actually recruited agents that live in my hometown, that I’ve actually hired. And we work with, we’ve worked with on numerous occasions. – Tell us about that collaboration, just from the duplication and exponential growth, how that’s turned into real people and real communities that you’ve actually collaborated to help your core business?
Connor Steinbrook 07:13
We’ll look at a couple different ways. Investing versus sales, obviously, as an investor, people always wanted to reach out to me and wanted me to mentor them and shadow me. But if you think about what investor does is kind of a personal business, I don’t need to bring people on to help me buy rental properties.
I can buy my own rental properties, right? This is a duplication business, this is taking your competitors and turning tournaments, your partners essentially. There’s a big difference between the investing world, and this and what we’re doing on this side of business, where people have access to top entrepreneurs, to get information from them to get training and consulting and mentorship from them.
In the way we’re set up, we do it for free for our partners. Now, if you look at inside the industry on the sales side, differences between the traditional franchising model versus what we’re doing over here, is at a franchising model, if you think about it, this is a market center model inside of the market center, not everybody’s partners, not everybody’s working together, right? It’s actually kind of a dangerous place to go to run our vision.
Chris Bounds 08:10
They have silos.
Connor Steinbrook 08:11
Yes. It’s like unless your direct team leader is benefiting financially above you, not only will they not helping you, they’re incentivized to mislead you because they’re in your local market competing against students. They’re not just going to not give you information, they’re going to steer you in the wrong direction. It’s a complete difference.
Where here at the eXp, you see different teams override each other, different agents in different organizations, still doing the same events together, still mastermind together, and they’re all trying to help each other. I think that has a big part to do with the fact that we’re publicly traded.
And we’re all on one dream together, I guess you could say, we’re all working to get this ship as far down the line as possible. Everybody’s working together as compared to working against each other, which is a complete shift in the way the business is done.
Chris Bounds 08:55
You mentioned, publicly traded eXp is publicly traded on NASDAQ. But there’s also tremendous value and incentives for agents to earn stock and get awarded stock. One of that is through the revenue share program. We have 30 seconds left. Can you tell us how that has impacted your business?
I don’t know if you know offhand how many shares you’ve earned. And I will put one preface on this. Do the revenue share team, the sponsoring agent only owner earn shares when the agent that was sponsored the person coming on board wins, when they do the first transaction every year? You’re incentivized by helping them win and how has that in turn helped you?
Connor Steinbrook 09:47
Get the stock awards just forgiven, the ones I’m given it’s been great substantial. It’s a definitely a very solid six figure number. And that just comes off from pretty much the majority of that came from just sponsoring agents to helping the company grow. Now, the big thing that I see the stock awards helped me as a team leader and someone that grows a large organization is the ability to attract talented people to the company through the icon program in the Asian equity program.
And also, even more importantly, retention, right? Most brokers struggle with attrition, we’re in a very attrition based business is absolutely vicious in our industry. If you don’t have something to keep and retain talent within your organization, you’re gonna have agents coming in and leaving, like revolving door bounced around like ping pong balls.
The ability to have wealth creation opportunity here at the company, and build up these equity awards throughout your career, agents are building these five, six and seven, even seven or multiple seven figure stock portfolios, as you can imagine what that does for retention. I use these stock words, obviously, the way they’re supposed to, for my own personal portal, or my own personal awards.
I grow but I had probably more of a benefit by using them to attract talented people that company icon agents, and helping these families create wealth as well. Everybody’s winning. It helps you benefit yourself, building an extra income stream, helps you attract talented people to company, retain talented people to company and help your partners change their lives.
It’s a really powerful system they created for us very grateful that they did. I wish more people that kind of turn over here and look a little bit closer because I think a lot of people are still sleeping on how powerful the bizmole is here at eXp and what it can actually do for them long term in their career.
Chris Bounds 11:20
Yes. I really think the equity program is one of the most undervalued, value props for those successful agents.