Unlock Hidden Referrals in Your Real Estate Database
[00:00:00] Nazar Kalayji: Let’s go and get started as people continue to trickle on in. I wanted to thank my friend, Tom I’ve known him for a while.
[00:00:06] Tom Tezak: Or five years at least. Yeah.
[00:00:08] Nazar Kalayji: Yeah. So Tom’s in Maui, obviously, as I’m sure you guys have kind of caught on to that. He’s in the luxury, you know, second home vacation home market.
And so I thought it’d be really cool to have him on here. I don’t know that some of you guys don’t deal in that space, but I think it’d be, you know, I’m curious to see what he’s going to address with us today. I think there’s always something to be learned when you’re dealing with markets that are not have to transactions, right?
So in this market that we’re in today, like that, that is something that is more difficult and so I’m curious to see how things have been, how the market’s there and and then what you can teach us. So Tom, go ahead and take it away.
[00:00:42] Tom Tezak: So first of all, can I get the power to share my screen? And Nazar, I’ve got a presentation that really is going to be more.
It’s, it’s, I work in a luxury resort market, but this is going to speak to all of your agents because it really is about, or all the agents that are on here. It’s really all about finding the referrals in your database that people miss and so it, and it works for just about everybody that we’ve got on this, on this space.
So I’m going to attempt to share my screen right now.
Shouldn’t have any issues. Okay, there we go.
Let me just fix my window for one second.
All right. So what we were just sharing with Nazar is that there is, there are, who has database here that have has more than like five people in it. Hopefully, everybody in the room. And what I wanted to just share with you guys is there are there. referrals hiding in your database and it’s amazing how many people miss the opportunity.
You know, and where, what I, what I say with people is resort agents are stealing your clients and they feel really bad. Please help them stop. You know, and I laugh about this because it happens every single day to every one of the agents in the room. And every agent in the country that people, their clients are out there.
And their, their clients are out there and they’re buying second homes. And so a story that I want to share with you guys is about five, maybe six years ago, I was going through my numbers like I do at the end of every year. And something dawned on me. I had about 35 million in sales, about 32 million of it was in.
Resort second home kinds of properties dealing with resort second home buyers, which meant that they already home owned a home somewhere else. And when I started looking at it, what I realized was I only had one inbound referral out of about 30, about 29 clients. And it sort of made me think, wow, what a missed opportunity.
So if I had, let’s say I had 30 sales that were from second home buyers and sellers. One of them was an inbound referral that meant that 29 of the other clients owned a home somewhere else. Most likely had a realtor that they bought it from and probably have friends that were realtors in that other market, but yet they came to me through Zillow, through walking into an open house, through the internet.
They came to me direct without a referral and I thought, wow, what a missed opportunity for so many agents. That they’re just be they’re not thinking about it. And so I call it the 15, 000 question. Are you thinking of buying or selling a resort or second home? And that’s a question that I think should be part of your scripts part of your vocabulary.
All the time when you’re talking to people. And because it’s just such an easy question to ask anything. Hey, you think about buying or selling a second one. Do you have a second home? And if they already own one. Fine. Maybe they need to sell it. Maybe they didn’t have a good experience with their agent.
We know that that agents fall away, especially in resort markets, you just go through the grind of, you know, doing the next deal deal and doing the next deal and your clients are in your neighborhood. You don’t see them at the grocery store. So you lose touch with them a lot unless you’re as a resort agent really good at it.
So one of the things I promise you on this call, the 20 or 30 people that aren’t here that this has happened to you. Okay. You’re walking, you’re in, you’re with your clients, you’re somewhere, you’re talking to somebody and you see your client and you look at them and they’re all excited and they come up to you and say, Hey, Robert, guess what?
Robert says, what’s what’s what’s what’s so exciting. I just bought a house in Vail and Robert looks at him and thinks inside to himself. Oh, crap. I missed. And then Robert looks and goes, Oh, I’m so happy for you. That’s so great. I’m goes light and that happens on a. On a more common basis than you can imagine.
So I, I, I know that it’s happened to Robert. Has it happened to you?
[00:05:00] Robert Mack: Oh yeah. All the time. And I’m like, I wish, I mean, I have a story about it happening yesterday.
[00:05:06] Tom Tezak: So timeliness here. So, so therein lies the rub for non, you’re a tradition. I call you guys, if you work in a non resort area, I call you traditional market agents.
So that’s the challenge and, and the agent thinks to themselves. Well, why didn’t you call me, Robertson, why didn’t you call me and ask me to help you? It’s because it’s not their job. It’s not their job to call you and ask you to help them find an agent somewhere else. It’s your job. It’s your responsibility to put it in their head that if they’re thinking about it, they should call you.
And because you have a network of agents across the country, around the world for that matter, in all the resort markets, every place that exists, you have a network that you’re connected with. In one way or another. Now, some of the agents in this group are with Tom [00:06:00] Ferry, but not all of them, correct?
Right. Are they all affiliated with National Association of Realtors? Yeah, I’m sure. So that means they have a relationship with every realtor in the United States that is in NAR? Except for Redfin anymore, but that’s okay. So my point being is there’s that opportunity there and we just need to put it in our brains to start asking that question.
And truly, it’s a simple conversation. Like I said, to start generating more referrals to create that that opening. And if somebody says, Hey, yeah, I already own a property. No problem. Then it becomes a listing opportunity for a referral. Because remember the agents in a lot of the resort markets come and go.
They don’t follow up like every other market in the world. And so there becomes this window of opportunity. Hey, who is your agent? How did you find them? How did you connect with them? Were they any good? Did you enjoy this journey with them? Oh yeah, I love them. Okay. You’re probably not going to take that opportunity for a referral away, but you can at least say, well, if you’re thinking about buying another one, if you’re thinking about buying more or somewhere else, which we’ll talk about in a little bit, but that’s an opportunity.
So it’s just a simple conversation. And I want, you know, the 15, 000 question, I put it in there because let’s do the math, you know, any more to in Maui, it’s impossible to find a 500, 000 property almost. But let’s say you’ve got a reef, you do one referral, it’s a 500, 000 deal, 3 percent commission, 25 percent referral, that’s 3, 750.
You know, if you imagine doing four of those, that’s 3, 750. Or, or 2, 000, 000 that’s that 15, 000 or if you get one 2, 000, 000 referral which anymore in our world is not uncommon. There’s 15, 000 in GCI. So, you might be asking yourself, how do I get for referrals. Well, once you know the stats, it’ll be mind blowing what how easy it is because of the numbers that are there.
So, When I started doing this research years ago, I went and I dug in and I found a NAR Investment Vacation Home Survey. Now, they quit doing this, but this was from a few years back, and it says that 10 percent of all homeowners with a median household income of 90, 000 or more are very likely to buy a resort, second home, or investment property in the next two years.
So, Robert, your client, your database, your database is in your audience. What do you think their household income is? Is it going to exceed 90, 000 in most of the markets?
[00:08:28] Robert Mack: I think so.
[00:08:31] Tom Tezak: So let’s, let’s assume that there’s half of the people in your databases are exceeding 90, 000, which I don’t think is unreasonable.
And what would an average agent in your crew have in, in in your database? How many people? Robert, let’s just use you because it’ll be massive, but how many people are in your database? Total database
[00:08:51] Robert Mack: is probably around 5, 000, maybe 5, 500. And when we talk about like A plus clients, I would say probably around 300 for me, and probably about 20 to 30 for the agents on my team on average.
[00:09:03] Tom Tezak: So again, your database, it’s a, because it’s a tool that you can work with. Let’s say that it’s, let’s say that it’s 5, 000. We cut that in half because 90% We at 2, 500, we take 10 percent of that. And that’s 250 potential clients in the next 24 months that are going to be buying or selling second homes. So the number is huge, but it’s a conversation nobody ever has because you don’t think about it, right?
You don’t think to ask your clients this question. You don’t think, have you bought investment properties? Have you bought Airbnb properties because it’s outside of your space. And that’s the whole point of this conversation is to. To open your mind to having that conversation with people because there’s people every day, you know, with the interest rates right now, we’re in a bit of flux.
So maybe it’s not going to be as active in 6 months or they’re looking to sell or they’re looking to reposition. We’ll talk about those things as well. So far. Any questions with what I’m where I’m at.
So with all that said, I mean, I think that every one of you guys probably has the ability, even if you had, you know, 30 A plus clients in your database, that’s still two to three clients that you can pick up the phone and call and say, are you, you’re in this, you’re in this space of being, looking at buying or selling a second home.
87 percent of vacation properties are purchased 50 miles away from their primary home. So most agents are going to, it’s going to be outside of your market area. So that doing that referral and asking that question is going to be important. 25 percent of the vacation properties are bought in urban and city central locations.
So that’s one of the things a lot of times people don’t think about is 25 percent are buying in New York. Like I personally, I own a second home. I bought, I bought it in downtown San Diego. It’s just, so there’s opportunity in these other markets and for some of your agents that are working in these kinds of areas, being receptive to, do I have second home buyers coming in and should I be working on my feeder markets?
It’s another thing to keep in mind. With that as well. So then there’s, and there’s more really great news about the whole system is that once you find a resort second home buyer, they typically buy more than one home, they’ll typically buy multiple properties, or they’ll, they’ll buy something, they’ll test the market, see if they like it.
And then once they, once they do, then they’re going to flip out of that, and either into another one that’s going to be bigger or they’re going to realize they don’t like it and they’re going to sell it so keeping in touch with them to understand what they do. And what they’re up to is going to be important.
So if you know that your clients have second homes, having that conversation with them to control the narrative and be able to be that resource for them is going to be super important. Just like, again, just like
investors, you buy more than one stock. Real estate investors tend to buy more than one piece of real estate.
It’s just because it’s comfortable. They like [00:12:00] it. It’s an ego thing. Whatever those answers are, it all makes sense. 23 and then this is another interesting fact 23 percent of existing home vacation buyers are likely to buy an investment piece of real estate. So that means that they may buy a second home.
But now all of a sudden, they may be saying, I like real estate. Now I wanna buy a law investment, you know, an r o i kind of property. We’ll talk about that in a little bit about this other space for referral opportunities. And then 21% of home vacation buyers are likely to buy another vacation in two years.
And we talked about that just because they’re, they’re upsizing, they’re, they’re right sizing with their vacation properties or they’re just adding to their portfolio Airbnb prop style properties. The other thing that we, I just alluded to, and that’s the other second home to remember, and that is, True residential investment property.
So when you just go buy a three bedroom house, you rent it out long term as a, as a pure investment vehicle to, you know, to put your eggs in different baskets. So all your money’s not in the stock market. You can invest in some real estate and to have it just be generating revenue. Now, some of the challenges, Robert, in your market, is it, can you buy an investment piece of real estate that generates any kind of reasonable ROI?
[00:13:15] Robert Mack: I mean, it depends on your down payment, right? So, so if somebody is going to put like 35 or 40 percent down, there’s going to be cash flow, but I would say if they’re open to breaking even or maybe losing a little bit of money per month, but focusing more on the long term appreciation, there’s, there’s a lot of opportunity there, but it’s a case by case.
[00:13:34] Tom Tezak: So, so my, and that’s the thing is, is, but if somebody is looking for that. ROI on a daily basis. It’s really hard in Maui. I can’t buy stuff in Maui. If I’m playing the short game, it’s tough. It’s tough. So that’s my, that’s the, the point. So the, the journey with that is, When somebody says, I really don’t want to vacation, but I’m thinking about investing in real estate.
So personally, I own I don’t know, nine properties in Little Rock, Arkansas. I own two properties in Huntsville, Alabama, because I can’t buy real estate here and get a 10 percent return like I am in Little Rock, Arkansas. So those are the converse, the another conversation that you have is, so somebody bought a home, they bought it as an investment or they’ve got a rental property.
And they’re just breaking even now the question becomes, well, would you like to make 10 percent on that money instead of breaking even because if you take that and sell it, what do you’ve got, you’ve got a listing, right? You sell that property. And now I can connect you with an agent in, you know, Little Rock is what I’m going to use for an example, I can connect you with an agent in Little Rock, who’s going to give you a 7 to 10 percent return on your investment on a daily basis.
And you take that million dollar California property and turn it into four properties and divested. Now that becomes an opportunity. I sold a condo for a gal here. It was a vacation rental condo. It was doing, it was performing very poorly. She was feeding it. She sold that 3 million or 2 million condo.
I got the sale from her and then I called up my buddy. And I said, I said, where do you like to travel to? She says, well, I really like to go to Vegas. So what did I do? I called up my buddy, Matt Farnham, who’s on the call. I said, Matt, I’ve got a client who we’re, we’re doing a, we’re selling her property. And she’s doing a 1031 and she wants to bring a reposition of money.
Matt, I don’t know if Matt, if you’re on still I think he sold her three properties. So he sold her, they sold her three properties. Two million dollars. They sold he bought some she bought something else in Reno, but it was worth what million bucks for you guys in sales I think she did about 1. 5 million here 1.
5 million So I got the sale and then I got one and then I got two million dollars worth of referral money back from so again trying to think of when because she Her property wasn’t performing Let’s take a property that’s not performing, turn it into a sale and then turn it into referrals. So it was a beautiful opportunity to, to do that.
And where I would encourage the agents on the call to start to understand, it’s like, okay, does my market work here for income properties? If it does, then let people know about that. Hey, we’ve got a great. You know, ROI on our properties here. If it doesn’t, then start the network in your, in your crew here of saying who’s got good ROI on their properties.
Who’s generating good returns? Cause I want to turn around and tell some of my clients, Hey, we probably need to reposition you and get you in out of what we’re in. That’s not making the daily revenue and get you into something that will give you better ROI. Any questions?
Does that make sense?
[00:16:50] Nazar Kalayji: So Tom, I assume that you’re going to be going into this, but you know, from, from us having normal conversations, day to day conversations you know, what, what is the ways in which you would feel would be an easy way to approach to find out if they are in that market or if they are interested?
[00:17:05] Tom Tezak: My goodness, Nazar, how did you, how did you know? Yeah. We’re going to get there, but a couple just things and this is just basic real estate. But for those of you who haven’t done much referrals, I mean, honest to gosh, referred clients are always tend to have the greatest sense of loyalty because when they’re referred by you, somebody they trust to an agent.
They’re, they’re much easier to work with and they’re much more likely to close. Referred clients are typically closer to decision making process, which is great. So there’s, there are a lot easier again in that journey. When you refer to an outside market, you become an inbound resource for referrals from those agents and their fellow agents.
And by that, I mean, if I refer to Matt. And Matt’s working in his office and I give him some referrals. And then somebody walks into the office and says, Hey, I’m looking for an agent in Maui, what’s Matt going to say? Matt’s Hey, call Tom. He just sent me a referral. So it’s, it’s exponentially builds on your opportunities.
When you become a referring agent [00:18:00] outbound, you become, you start to get inbound referrals as well.
[00:18:04] Matt Farnham: And then we, which we did do that, but Tom, the one we sent you wasn’t nearly as nice as what you sent us.
[00:18:09] Tom Tezak: Well, but that’s okay. It was opportunity. And that’s what we, we always appreciate. You closed it. We closed it.
And that unfortunately was one of the properties that was impacted by the fire. So and then the last thing is, is as every one of the senior agents on this page or in this group knows is there’s no higher return on your time invested than by creating By creating referrals. I don’t know. I know I spend, when I get a referral opportunity, I probably spend an hour because I want to go in and I research, I go in, I go to Tom Ferry, I go to Inman.
I’m not in, I go to Tom Ferry. I go to Zillow. I go to a few different places, try to look at the agents that I think are really powerful, then I’ll go to their websites and check and make sure that they’re active and then I’ll, I’ll reach out to them and try to see if they’re a good connect for my clients, but all of that takes an hour and.
Boom, if I don’t already have an, a network like we do with Tom Ferry, like for Vegas, it was easy. It’s like call Matt. And I don’t know how much money he sent me, but for a million and a half bucks, it was, you know lots of thousands of dollars. So so keeping in mind referrals and again, back to the title of these are all hidden opportunities in your database, because you’re not thinking about, this isn’t something you think about on, on the everyday.
Just to review some of the things that it’s average household income of 90, 000 a year, 6 to 10 percent of those clients are going to be buying or selling a resort home or an investment property. And again, if you have 1000 people in your database with 90, 000 in income, 60 to 100 people are in that market space.
So just again, refreshing that to talk about it.
So sorry, guys, little breakdown here. So again, asking for the referrals, it’s so simple you, and then this is what you were asking. It’s really easy in an email, in a social media post and, or in a question with a client, just doing that, having those thoughts in your brain to how to do it. So we’ll start with an email and I apologize, but I’m going to read this because I think it’s just, it’s so simple.
It’s important. And your subject line is, you know, are you thinking about buying or selling a second home? This could also be in your newsletter. In one of the, in one of the parts of it, it was just, the body is, I was just checking in and thought I would see how you’re doing and crazy events of the world.
Recently, several of my clients have reached out to me because they have been starting to think about buying or selling a second home and asked me if I could help them. It dawned on me that my friends and clients may not be aware, but I have a network of resort second home and investment agents across the country.
And if you’ve been thinking it is time to invest in some additional real estate anywhere in the country or actually the world, I can help you. Knowing there are so many ways to search real estate online or on vacation or while on vacation, I came to realize the biggest problem my clients were having is not a relationship with great agent who is not having a relationship with a great agent they felt comfortable with.
This can make the buying and selling process away from home a bit scary and daunting. So I wanted to let you know that I can help. I have an amazing network of professional experience agents that I trust and can connect you with. My clients that I have already assisted have found this to be a far better experience than randomly selecting an agent they find on the internet or an ad in an open house.
If you’re thinking this might be a good time for you to expand your real estate portfolio, I would love to assist in finding you a great agent wherever in the world you need help with your signal. So, again, something very simple, easy. This will be, I’ll, I’ll send a put a QR code, you can grab my workbook at the end of this.
You’ll have this available to you. It’ll also be a link that you can get from Melissa. We’ve sent that off to her, or you can email me and I’ll send you the link to the book as well. Again, super simple, just put it out there. And if, if, you know, five people respond, it’s a grand slam because it didn’t cost you anything.
And if one person responds, it’s still a win. And this is the kind of thing that may take some time to develop because it’s putting it in their mind that they know about it.
[00:22:12] Nazar Kalayji: I think what’s kind of cool, I never thought of this before, but I wonder if it’d be cool, especially on social media, and maybe even as an email, to ask the question, who of my friends own a second home or an investment property?
So that’s… Because I think, you know, a lot of people don’t own second homes, a lot of people don’t own investment properties. And so if you’re able to isolate those that do you know, there might be more of a way for them to like, either want to buy more of those or… You know, get rid of the ones that they have
[00:22:41] Tom Tezak: right and and that’s this page right here.
So social media. It’s a different strategy, right? I mean, there’s are you’re absolutely right, but you want to do a little bit more coy and You want to ask these leading questions like when you retire you plan on moving to a new community or stay where you are So it’s a very open ended and that elicits conversation.
So there’s a bunch of different questions You can be putting on your your social and like the last one is it’s a poll On vacation, I prefer to golf, ski, fish, or read, whatever that is. Now you’re enlisting those people to respond. I think the important thing in this journey is whether you’re on Facebook, Instagram, Tik TOK, when you start that conversation with them, when they respond, take it off, take it to private message space, take it offline because they, they’re not going to want to share their success necessarily.
They’re not going to brag. They’re not going to talk about buying a second home publicly. Some of them might, but you know, it’s much more likely that they’re not going to want to, but if you take it to a private message channel, I think it’s going to be a much better way to do that. And when you start in that private message channel, stay on the channel.
If you don’t know them well, and then start asking the questions like, when, when are you thinking about doing this? Where are you thinking? Why are you thinking about doing it? [00:24:00] The why’s are important as well because it’ll help you to understand their, their journey. And sometimes people will buy second homes because they’re older and they think, well, this is a great place for me to have my kids.
And they don’t really care about their kids. They really want their grandkids to be part of the journey. So understanding what’s important for them and that as well. And then, and then more, most importantly, let them know that you’ve got networks everywhere in the world that you can help them. You’ve got agents that can help them all over the place in doing this.
So, and then if you’re in a, in a live conversation, whether it’s on the phone or in person you might say, Hey, have you ever considered buying a second home? And, and, and then you list it, the response. And it’s just, I’m just asking because I’ve been talking to my clients and, you know, again, take these scripts there they’ll be in the book when you get it.
And internalize it. As we all know, with scripts, you’ve got to own that script. It’s got to make sense. It’s got to work, but you’ve got to be able to feel like you’re saying it from the way you would say it, not the way I wrote it. So, as with all scripts, just take it, make it make sense, and have it work for you.
And then the other thing is, is know where they go. When you start to talk, when you start to think like this, you start to talk to the friends and your neighbors and, and you start finding out that, holy smokes. A bunch of my friends own second homes already, and I didn’t know about it because they don’t want to brag, but you’re starting to find out where are they going.
So Nizar, where do people go from your marketplace to second home?
[00:25:33] Nazar Kalayji: In California, I mean, I think all over, but I would imagine, you know, Hawaii being one of the destinations that they go. They also stay local now, like by the mountains, like. Right.
[00:25:47] Tom Tezak: So, and that’s it. Once you start to understand that, and there’s a real important reason why you start to learn this journey of where they go on one is because you can become educated about that space.
So when they say, Oh yeah, I want to buy a ski resort. Now, you know, well, Hey, most of my friends that have already bought have bought in big bear or Lake Tahoe or Vail or wherever it is. And now you can talk that language and they say, Oh, you’re familiar with that. It’s like, Oh yeah, I love, I love the ski resorts.
And these are the ones in fact. I know so and so who’s a great agent there if you’re thinking about buying. Now you’ve got that natural segue when you know where they go. So you start the conversations, figure out what they’re thinking about in the way of a second home, and now you, you, when you know the different places you can have those conversations get as much detail about what they’re after when you’re in that conversation.
Let them know you have agents in the networks. And then this is the part that I think a lot of agents miss. And that’s considered networking with some second. So when you are, when you know where they’re going, do you know any realtors in big bear? Okay. So have you ever thought about having a first time second home buyer seminar and bring in your realtor from big bear and bring in the realtor from Maui and bring in the realtor from somewhere else and then invite your clients and say, Hey, who’s been thinking about buying a second home?
I’ve got agents from. The beach, the mountains and whatever, you know, and bring them in and create some, that opportunity so that these folks come in there now in a perfect world, every one of your clients, Nazar would want to buy in Maui and they’d come to me, but I know that that’s not realistic. So for the second home agents out there that are looking at this and thinking, okay, how do I manipulate this?
Be a proponent of getting the agents in the traditional markets to just simply ask about referrals. By doing that, you know, they’re not all going to come to Maui and I get that. But if I can help all of you guys find second home buyers, I know that there’s at least one or two of them that are going to come to Maui and I’m going to win.
So yes, sir.
[00:28:01] Matt Farnham: I did a this is Matt and Vegas, everybody. I did a I was one of multiple agents on a virtual seminar. It was myself Boise, Idaho, Phoenix, Arizona, I think somebody from Denver and San Antonio, but it was a San Diego agent at that time that had me as a guest. One of the guests of that seminar actually ended up buying because he was exploring.
It was for people exploring leaving California to basically the feeder markets that are there. Very commonly going to long story short. We ended up helping them sell the house And i’m pretty sure we sold the second house to a family member or referral or something from that because I did a 30 minute seminar So it worked.
[00:28:42] Tom Tezak: So yeah, I mean it doesn’t have to be in person I mean just doing it on zoom whatever because everybody’s everywhere. It’s just the whole again the whole goal of this is you know Zara came to me and said, I want you to create something. It’s like, I want to bring something to you guys that nobody thinks about.
I mean, I don’t know if there’s anybody who’s had created this journey for themselves in their real estate career that’s on this group. But I’m guessing if there are, there’s not very many of you that are doing it. And it’s just so simple to do and create the opportunities. And then again, it’s really super fast way to find referrals because they’re, they’re already in your database.
There’s already people that are sitting in there thinking right now, I’m getting older, I’m getting tired. I just got a bonus. Grandma just passed away and left me money. I mean, there’s a plethora of things that happen that motivate people to then buy second homes. And being ahead of the curve and being, being able to help them on the journey is really positive.
The other thing to keep in mind is when somebody starts the journey of saying, I wanna buy a second home. They don’t necessarily say, I wanna buy a second home in Maui, or I wanna buy a second home in Vail. What they’re saying is, I wanna buy a second home on the beach, and whether it’s Maui or San Diego, or Kauai, Having that versatility [00:30:00] when you’re talking to them, it’s going to be really important and then having that network of agents that can roll off the tip of your tongue so it’s not like, Oh, I think I can find to somebody.
But if you know your feeder markets, or you know where your market feeds to, you’ll be able to have that relationship with the agents so just start to build that is what I would encourage you. If you want more information. If you want the I created a book on issue you can scan that code, and that will allow you to download it will also be able to send you.
A link to the book, and it’s got all of the information, sort of, it’s the same information we presented, a little bit more detail, and then all the prompts for social media, and all the prompts, you know, the email. And again, I take, I encourage you guys to take it, be inspired by it. You’re welcome to copy it, but make it your own voice.
I, I know that when it’s not our own voice, sometimes it gets misconstrued so rewrite it, take it, create it, make something. That works for your best interests and and send me some referrals. This is a little about me. This is, I’ve been doing this for about 32 years, 33 years, 23 years in Maui.
And been proactive in trying to be a resort agent. I’ve also, if there’s any resort agents in the group, you’re welcome to join our group on Facebook, Resort and Second Home Agents. There’s about, I don’t know, 1400 agents in that group from all over the world. So it’s a great way, a great place to go out and reach out and network and market with those different markets that you’re in.
Part of it’s Tom Ferry, but it’s a lot of agents from all different, all different venues and all different associations. So I’d love to have you be part of that. If you’re not a resort agent, you’re still welcome to join. You just have to be a realtor and we, we qualify every agent that there’s nobody in the group that’s soliciting.
It’s only real estate agents or people that are affiliated with the industry. Any questions?
[00:31:57] Matt Farnham: Questions for Tom. That was excellent, bro. Thank you.
[00:32:01] Nazar Kalayji: Quick question for you, Tom. In your, like in Maui, I know it’s a, it’s a fairly decent size island. If someone wanted to get like a, a three bedroom condo that faces the ocean, what’s that going for nowadays?
[00:32:15] Tom Tezak: Well, so three bedrooms are really uncommon, just so you know.
It’s more likely that we’d find you a two bedroom and a nice two bedroom across the street from the ocean is going to be right at a million bucks. A nice. Two bedroom on the ocean is going to be anywhere from about a 1, 000, 003 to I just sold the three bedroom condo sort of set back off the ocean for 8.
6 million. So lots of, lots of and they have a realtor in Seattle, by the way, they didn’t come. I mean, the business is there guys. I mean, there’s so much opportunity. To do that, but anyway, our market ranges from about 600, 000 dollars. To 2030 2 million, 35 million right now. And it’s not just re you know, there the Airbnb.
I guess the other thing I would encourage is to do is understand the language. Airbnb V R B O, short-term rental all is a daily kind of rental. And then, but not everybody is after that. You know, sometimes we pigeonhole ourself and think, oh, everybody wants to rent it. But I have a ton of clients that just want a second home that sits vacant for, you know, 45 weeks of the year and they’re okay with that.
So don’t, don’t worry. I mean, don’t, don’t get in your way of saying, Oh, it’s gotta be a vacation rental because they don’t. There’s, there’s tons of opportunities. And I mean, our homes in this market, what’s interesting as well as for some of you folks that are in lower price point markets, I sell second homes to a lot of people that are way more money than the cost of their primary home, because in their markets, they don’t have to spend.
Six or seven million dollars to get something they can buy a really nice house in Texas two million bucks But when they come to Maui to replace that two million dollar house They’ve got a spent six or seven million and it’s not uncommon for that to happen So those referral opportunities can be huge when you start think about in that place.
I mean go to Aspen or bail I mean Jesus right now in Aspen. There was just a house that sold for somewhere near a hundred thousand dollars
[00:34:27] Nazar Kalayji: Are there any restrictions for for Maui when it comes to Airbnbs and VRBOs or is there there are there are restrictions in Maui.
[00:34:34] Tom Tezak: You have to buy for the most part. Airbnbs VRBOs are going to be only condominiums and that’s in Maui. In the other islands. The rules are different. And that’s the thing is, is that why it’s really important to have an agent who understands the different nuances of rentals to be able to Know what’s going to be safe and what’s not in Maui.
It’s really safe because we’ve got a super established system, but a lot of places where they’re now selling Airbnb is that we’re not resort second home markets, but have become these Airbnb property markets, the communities are freaking out that, you know, the city councils are passing laws. So you might buy something, make it an Airbnb.
And then all of a sudden that opportunity is taken away. And when you buy it as an Airbnb, the numbers make sense. But when you lose that, all of a sudden it’s a losing proposition. So. Being aware of those kinds of dynamics of rentals is really important. And, you know, and the, the other thing is that, that resort, not the non resort, that pure ROI kind of property, like we were talking about, where I’m, you know, I’m just re I took and sold them.
I did a flip in Maui for 1. 6 million bucks, took that and flipped it into six houses in little rock, Arkansas. So, you know, there’s these different. Because in Little Rock, I’m getting 10 percent or 9 percent of my money. And, [00:36:00] and I’m just, and for me, I’ll share this, that story for me, I’m older. I’m trying to look at my portfolio and say, what happens when I kick the bucket?
I want it to be something that my kids can take. They can split up, they can do that, but I don’t want them to sell them because there’s such cash pigs. That I want them to be able to figure out how to manage it and have it be something that’s easily divestible or, or my, with, if I die, my wife needs money.
It’s not like you have to sell one big piece of real estate. You can just spin off one at a time and get some, some cash. So those are my theories, but I share that with you so that when you’re talking to people, when you’re talking to somebody who may be older, like me, you can start leading them down the path and giving them some, some ideas of how and why it might make sense too.
[00:36:47] Nazar Kalayji: Perfect. Thank you, guys. Thank you, Tom, so much for taking your time to do that. If you guys have any questions, you can reach out to Tom, follow him on social, and and, you know, I think it’s a great opportunity, like, if you think about the amount of sales that we do in our own spaces, getting those referral checks is, you don’t have to do anything, right?
You just make that connection, and that’s it. So it’s an easy way for it to be a win win situation.
Alright, guys. Have an awesome day. Guys, thank you, Tom. Thanks so much.
[00:37:16] Matt Farnham: Appreciate it. Awesome call.
[00:37:17] Tom Tezak: Bye. Alright. Hope it helps. Aloha.
ABOUT: Fiv Realty is a high-split, low-cap, cloud-based brokerage that believes in COLLABORATION with a growth mindset. Empowering real estate agents to take Fiv steps forward to ACHIEVE SUCCESS and BUILD WEALTH.
🙌 Collaborate with top real estate agents in the country.
💰 Get more money in your pocket with a cloud-based brokerage.
🏆 Highest revenue share in the industry.
➕ Commission+ helps you develop your business.
🌿 Grow with us as a founding partner.
CURIOUS ABOUT FIV REALTY and want to learn more?
Schedule a call with us at https://calendly.com/fivrealtyco
Let’s Get Social!
Want to learn from top nationwide real estate agents? Go to fivrealty.com/masterclass.
Fiv Realty: Together We Can Simply Achieve More!