Nathan Daniel: 0:02
Welcome back to the broker to broker real estate podcast. I'm excited you're here today because we're talking about automatic wealth building inside of your brokerage and we're going all the way to Jacksonville, Florida. So buckle up, here we go. Alright, so we're going all the way to Jacksonvillie, Florida today. And I'm excited to introduce our guests, Mr. Jon Brooks with Momentum Realty. Welcome to the show, man. Hey, thanks for having me on. Yeah, I'm excited. You know, you and I were talking a couple days ago about the topic of the day and I'm excited to jump into that. But before we do, tell us about yourself. Tell us about momentum Realty and what y'all are all about.

Jon Brooks: 0:56
Yeah, absolutely. So I was not originally a real estate agent, I was actually a wall street investment banker, and I had a really bad real estate experience. So I became a real estate agent. In 2016, I sold 66 homes for 12 million in 2017. I sold, it was like something like 70 homes for 20 million. And then I brought my wife into the business. And together we sold 36 million in our third year became net worth millionaires bought a bunch of investment properties, became financially free, became the youngest mastery coach at the company I was working at and was a two time speaker at their their mega camp event as well. And at that point, I wanted to share what I had learned with other agents and I was a little bit restricted with some politics, love the company I was with just needed to get my own platform to share what had worked for me in my business. So we created momentum realty in January 2020. And it exploded. Yeah, and so like the last 19 months, we've served over 1850 families 1850 families, and the agents have just been building wealth faster than we've ever seen before. We have agents who join us that, you know, are two to $4 million producers and then becoming $22 million producers The next year, based on the same systems and processes that we were using that made us so successful, and why they put us on stage and why they made us a coach for other individuals. So we use this as a platform for agents wealth building, and it's been really exciting journey. And it's just the beginning, because we've only been in existence for 19 months.

Nathan Daniel: 2:36
Wow. Okay, so we have a lot to unpack today. There was a lot a lot to that. So first off, congratulations. I mean, your organization's growing quickly. And thank you for coming on today and sharing with the rest of the industry a little bit about what you're doing. All right. I know the topic that we had talked about, for the show, like the direction was really about automatic wealth building through your brokerage. All right. I also want to get into a little bit because I'm sure the listeners out there want to know, how on earth have you gone from 19 months? And in an 1850 family serve the last 19 months? Can we start there? can we can we pick your brain about that a little bit?

Jon Brooks: 3:15
Yeah, so uh, you know, it doesn't just happen overnight on accident. You know, we had a platform of coaching and training before we launched our brokerage. And what happened was the agents who came over started adopting the tools and resources and mindsets that we're sharing with them. It just took off. And there because they were having so much success, they started recruiting in other people that they wanted to see have that same experience. And it just has evolved from there where we don't even advertise anymore. And we had 33 people apply last month, we took 11 we don't take everybody, the people who do come you got to do more than 10 transactions in a year to qualify as a momentum elite agent. The only other way to get in is underneath a mentor or through a team. So we're very specific on who we choose to join the organization in that creates really great positive energy. So we protect the culture, we make sure that the agents have everything that they need to succeed, we're always available for them. So we use the same principles that we're using for our buyers and sellers that made us successful in real estate sales. We apply that to our agent population. And it's the same result they love it and they're making more money and they're having a wonderful experience and trying to get other people involved in now we're actually in nine different locations we just launched look at Orlando as well. We're in Tampa, Gainesville Daytona in agents who are top performers are just reaching out saying, hey, I want to build wealth to I don't want our agents to work harder. I want them to work smarter. And I the whole purpose of getting in real estate to me is to get out of real estate. And so we're teaching our agents like or just take the clients that you really love to work with. You don't want to you don't want to be desperate and have to take every single person just to make it through. So we're encouraging our agents to really have a business plan and have a target audience and figure out What are they? What is it gonna look like the next five to 10 years and really get out of that short term mentality that most agents are, are stuck in. And what's funny is when you think long term, the actions just get a lot bigger, and it pulls them through to the next level much more quickly than than if they were just thinking short term. How do I get my next check?

Nathan Daniel: 5:18
Yeah, yeah. Avoid the commission rollercoaster, right? Well, okay. So I want to unpack that a little bit. So so what I heard you say is that you've set standards, you've had some pretty high standards for the organization, as far as who you will actually take in,

Jon Brooks: 5:30
I don't even think they're that high, honestly, oh, really, you can't even make enough money selling less than 10 units. So it really should be closer to 15. For that, for our average price point with where we're at. Um, the reason we take people around the 10 mark is because they they know the transaction, we don't want to teach fundamentals, we want to teach people who already have a business and want to learn how to build profit without giving the rest of their money to their broker or spending it on online leads and things like that, you know, we really that one of the things that had us leave the previous company was that they're putting all these people on stage that were showing huge units, huge volume, and gosh, you would think that they were the richest person in the room, the richest person in the room is the referral agent in the back that doesn't talk to many people, and has an incredible referral business. It's making pure profit, not the person that's buying Zillow or realtor.com. leads, had a gigantic team and a big ego talking on stage. And we recognize that me and Brittany as a two unit team were outperforming teams that had 200 agents on it in terms of profit, and profit is the scoreboard of business of a profit oriented business. And we were like, well, who has the better business model, and who has the better lifestyle and who's actually building wealth versus just creating actions that actually don't generate anything because no one else in the organization is getting wealthy either. And we see that with a lot of teams. And so we decided to open momentum in a way that would make the team members also profitable, not just the team leader. And that's really important, because our our best buyer agent on our team at our big box brokerage, she sold 30 homes in her first like six months with our organization, and she's like, I don't even have enough money for for daycare for my kids. How is this possible? We broke down the model, you know, 36%, monthly fees, transaction fees, 5050, oh, there's a referral fee. Oh, it's 2.5 instead of three, right? And you break it down, you're like, I'm gonna have to sell 60 homes. Yeah, to be able to live like that doesn't include my health insurance, my home expenses, the self employment taxes that I have to pay. And so we broke down the model and say, what would it have to look like for everybody to win in the organization, and then also do what some other companies are doing, which is the automatic wealth building is revenue share for recruiting, which is equity, stock options, things like that, where it just because you're a top performer, it's going to build wealth through your brokerage as your brokerage continues to grow.

Nathan Daniel: 8:01
Okay. And one more thing before we talk about atomic or atomic, automatic, automatic, automatic automatic, you know, you said that people apply, and you had what 33 apply last month, and you only took 11. So there is a process that you have in place to actually apply, as I say, you know, there's it's, it's not just a one way application anymore. It's two way correct.

Jon Brooks: 8:26
Yeah. And we still believe that 70% of agents should not be in the industry, or it should be illegal for them to practice because you're managing someone's largest financial transaction. And you need to have the skill set and mindset to be able to handle that for them. And unfortunately, there's, there's a ton of great part time agents out there. But a lot of agents who are part time or don't do enough volume should not be in the industry, because it's doing a disservice to the agent community and to the consumer. And that does allow for wall street to come in and pick up share. So we're looking to change the industry from the inside out by being a brokerage that has standards that doesn't allow those type of people to enter, at least in our organization. We encourage other organizations to raise the bar and raise their standard and think about the industry as a whole whole rather than just their pocketbook. For sure.

Nathan Daniel: 9:13
For sure. Okay, I love that. Well, let's let's jump in. And let's talk about wealth building. All right. Let's talk about wealth building a little bit. Sure. So Alright, so you mentioned a couple things in your organization, right, you wanted the opportunity for those that are on teams to be as profitable and have the same opportunity to build wealth that the team leader does so. So talk to us about how you're doing that?

Unknown: 9:38
Well, the first thing is the split. The The most important thing for most top performers is the compensation structure. And it needs to win for everybody. Because if you're constantly if you're a team leader, and you have a revolving door of agents, because your top performers can't net enough money to stay, I just had this conversation with somebody yesterday. They're like, I'm doing $10 million in sales and I'm broke and I'm like, Well why and then they're like, well, I keep running the numbers. And it doesn't make sense. Well, just because your brokerage is taking too much, or that the only way you're generating business is through Zillow or realtor.com, and you don't have a database that you own, the minute you leave, you leave with nothing. And so the our brokerage is basically a 6% split plus a 250 transaction fee. So automatically, we're extremely affordable, we're able to do that, because we are a string of independent contractors, we don't have a physical office location, that's, that's really expensive. It's virtual. And we have one employee who's my wife, who is also the sole broker owner of the organization. And so we don't have, you know, this heavy staff and have a bunch of junk. That's, that's a distraction or shiny objects that we pitch to the agent, we just do what we know works. And it allows us to pass on those savings to the real estate agents. So the number one is the splits are better number two, with the way that we became hyper profitable is through hiring, showing assistance. And that leverage is your time and leverage, and it's very affordable. And our agents have built an internal web of showing agents for the entire organization where if anybody needs a showing done, all they have to do is post in a group. And there's someone who's available to help them that's on that side of town that they know is good, because they're a momentum agent. So they work together. So it's like we're one big brokerage, but we all work together as a team. And that's how that's how everybody works. Anybody can call anybody in the organization and pick their mind, and they'd love to do it, they'd love to grab lunch or coffee. And that's a totally different mindset than the other big box companies that are kind of like, Hey, don't share your secrets with everybody. There's no agent that's going to take your business away from you. It's it's not agent versus agent anymore. It's agent versus Wall Street. And I just want to be very clear with that. And I think that the agents really gravitate towards that message, because it's true. There really is no competition other than yourself or Wall Street trying to come in and disrupt your your business plan.

Nathan Daniel: 12:01
Yeah, for sure. Well, and I know that that's a pretty hot topic, right? I mean, I know, there's been a lot of news recently, around, we'll just call it a big technology company, Wall Street driven company that is moving into the space. And they're they're rattling around a little bit hiring people on w twos, you know, and making them agents, right. And so and there's a there's there's an exodus leaving that organization right now. But hey, it's it's reality, right? So how are we going to shake things up? And one of the things that you said, like, when we were talking was this was constantly putting yourself in a room with bigger thinkers and action takers than you. So I love that quote, because if, in my opinion, in our opinion, if all of a sudden we band together, as organizations to, you know, actually make this thing work and pour into people, like, that's the game changer, in my opinion, what do you think about that?

Jon Brooks: 12:56
Yeah, I mean, so I've been doing that in my personal life ever since I got into the entrepreneurial world, which is, you know, I became a real estate agent, I reached out to the top agent in my market, and said, Hey, would you want to grab, you know, coffee? Is there anything I can do to add value to you follow up with a thank you card, right? And start building relationships with people who were actually doing something, not the people who are saying they're doing something, people are actually doing something? And then your second level is, are they actually making anything? So are they just mistaking movement for achievement? Or are you actually going to break it down and talk about the hard things? Like how much money are you making? are you investing in real estate properties? What's your wealth building? Like? How long have you been doing this for what have been the biggest mistakes you've made, right? Understanding how they think about things as well, and figure out who is real and who is not the real deal. And it's really hard, there's smoke and mirrors all over the place. So you have to be really diligent. And so what I've been able to do is find people who are valid leaders that know what they're talking about, that can show you have the numbers to back it up, and learn from them. And then I bring that knowledge back to my tribe, at a fraction of the cost in a fraction of the time, and put it in our own lingo that resonates with real estate agents, and they get to benefit from everything that I'm learning in all of these incredible groups from that I'm a part of from around the country with entrepreneurs that are doing 100 million plus, like, like net worth, not volume net worth. And they instantly their mindset in the level of conversation in the tone for the organization is so much higher than any other big box brokerage conversation that's occurring, and it's non stop. And so the agents are like, we know that there's no tool I just almost got sold yesterday, hey, we have this tool at our at our company, that if you get it, your agents will be 51% more productive. And I'm like, that's just not true. I don't know it or it's like your two units, two, three units. Congratulations. You're 50% you know, whatever. Yeah, it's, it's just not true. It's personal development, how the only thing that's going to move the needle is how these people think, because how they think will change the way that they act. And they'll go out there and produce differently. And they'll, they'll change the way that they talk. So we're creating distinctions and these agents lives that make all the difference for them. And we bring in these top speakers, I pay for it myself to bring them into the organization, TEDx speakers, multimillionaires, real estate investors to come in and share what they're doing, why they're doing it and how they think. And instantly the agents minds expand, which allows them to grow into that. And they're not getting that where they're currently at. Most agents come to us because they're stuck. And they don't have anyone left to learn from or they've become the number one producer in their organization. And they look they're looking for what's the next step in my career path that's going to take me to the next level, we're looking for high achiever personality profiles that we work very well with. And we view ourselves as their poor personal Board of Directors, and we're really partners with them. And we work for them to help them whatever their goal is, we want to help them get there.

Nathan Daniel: 16:00
Well, that's good stuff. So I mean, I heard a couple different things like you're really focused on splints and compensation, that's the first element. second element is showing assistance, you've built out a network inside your organization of showing assistance. The third thing I just heard was focusing on their mindset and developing them at a deeper level than just the surface level of the business. So yeah, a lot more to that.

Jon Brooks: 16:23
And then I would add a fourth thing is that we're doing we do revenue share as well. But of course, everybody has to be approved to join. So they have to jump through three or four hoops to get into the group. So it's exclusive. And that even makes it more attractive to top producers because top producers don't want to be around lower producers generally unless they're in their their giveback mode. And then we're also starting by the end of the year momentum stock awards program, where you're going to be able to get stock of a private company, pre IPO, which instantly if your top producer will be the most attractive place to bring your business in the state of Florida for now. Because all the other companies that are public that are handing out shares, their multiple earnings are so high, it's it doesn't even make sense, it's probably gonna be worth less than three years, not more. So you know, you don't have any upside left. It's been projected for the next 100 years. So so that's what's different about us is we're resetting that tree and making it available to the next wave of agent entrepreneurs that want to live a big life.

Nathan Daniel: 17:24
Okay. All right. Well, um, I think that's that's a lot of great information, right, focus on the person focus on your splits your compensation, and develop a wealth building plan, you're doing it through revenue share, and in the future stock options into into a company. So pre IPO, I like that. Alright. So another thing that you mentioned also is a bundle, right? And I know he said this, like bundling, bundling is a future evolve or die. Like I love that quote. But tell us about what you mean about that.

Jon Brooks: 17:55
Yeah, so Wall Street, what they're looking to do is control the entire real estate transaction. So the eye buyers, they want to buy the home, and then force you to work with their real estate agent, their title company, their mortgage company, their insurance company, everything. That's what they're looking to do. And they want the agent removed, if you actually listen to their earnings calls and look at their mission, they don't believe in you as the real estate agent. So anybody that's listening to this, like think about that, and I'm not saying you need to make changes. Now just be aware that that's the case. Well, the only companies that are going to be able to compete with that are brokerages, independent agents aren't gonna have the volume flow to be able to compete with Wall Street. So you have to pick a brokerage that understands where the future is, and build it with them. And the cool thing is, you can get, you know, stock options now with it. And so our goal is to have a holding company that will also have title and mortgage rolled up into it. And then we IPO that holding company, and we're getting to that scale very quickly. And that way, we'll be able to compete with Wall Street in terms of the products that they're providing and streamline it for the agent versus them who's trying to remove the agent. So we become the alternate option in the in the revenue pie almost triples when we do this. And if the agents have access to that, through the ownership of the stock, that's that's phenomenal. And that's something that's different and is currently not being done on a wide scale. Pre IPO, you know, situation. So that's where we believe the future is is the bundle, because that's what the consumer wants, the consumer wants an easier transaction less expensive. One wants the agent, which is while that which is awesome that wall street does not want the agent involved. So that's that's where we differ.

Nathan Daniel: 19:34
That's kind of dividing the divide in the industry up a little bit, right, there's there's Wall Street,

Jon Brooks: 19:39
there's pick sides, you're gonna have street agent, or you're going to be a local hyper celebrity agent that's partnered with a brokerage that also sort of has the same bundle.

Nathan Daniel: 19:48
Yeah. Yeah. I agree with that. And I see that coming in the future. Like I can get on a whole rant about that. But anyways, I'll save that for another show. But Alright, so so I want To wrap this up, there's been a lot of great information in this. You know, you started 19 months ago, but I want I want to talk to the brand new real estate broker, brand new leader of an organization right now, like in the last six months, what's the greatest lesson that you've learned? And, you know, maybe any advice like last minute advice before we wrap the show up today? What would you give somebody?

Jon Brooks: 20:24
develop yourself. So, you know, we're weird, top 10 brokerage, maybe the number one independent brokerage in our market, and we don't even think we're scraping the surface, we aren't like our volume is like less than 1% of the whole market. So we're not important right now, we're not a market mover. We're not a market changer. And we constant even though we're near the top, we're constantly aware that there's so much more to learn. And again, just like we're talking previously, get into a room with people who are doing the big things that that's as an agent, as a broker, like if you're a broker, reach out and connect with other top brokers who are who are wanting to change the way of real estate is done in the future. Not for today, we have enough of the agents that live in the past and yesterday, and today, we're talking about the agents who really want to shape the future of this industry, get in touch with those people and create masterminds with them. We're all here, I'd love to talk to anybody. If anybody wants to connect, I have a lot of opinions. It doesn't mean that I agree with everything I say, I'm not right all of the time, I make a ton of mistakes. And I'm learning and growing. And I'm aware of that. And so I think the key is like being aware of where you are and where you want to go and getting around people that are going to do big things with you. And that's the best advice I can give is get into those rooms as soon as possible.

Nathan Daniel: 21:40
Yeah, I like that. I like that mastermind come together as an industry to take a stand for industry right. Alright, so everybody Today we've been talking to Jon Brooks with momentum Realty. JOHN, thanks for coming to the show. If people want to connect with you, I've got the website up here. It's movewithmomentum.co . Can they also connect with you I'm sure on Facebook, soc al media.

Jon Brooks: 22:01
Yeah, shoot me a message. I also have a newsletter that about 16,000 people read every week. So if you want to subscribe to that as well just reach out to me I can get you the information, more than happy to connect if if there's other brokers out there who are struggling want to learn want to just share in mastermind, I mean, honestly, there's no secret here. We're all just trying to do the best we can. So that's awesome.

Nathan Daniel: 22:22
Well, john, thank you so much for being on the show today. I appreciate you to give it back to our industry. Thanks, man.

Jon Brooks: 22:29
Thanks, Nathan.