Introducing The Deep Dive by ProInsight

In this episode, we reveal a game-changing tool for real estate professionals: The Deep Dive by ProInsight. Learn how this powerful service helps you uncover hidden opportunities in your existing client database, transform your approach from transactional to advisory, and build a scalable, sellable business. 

Creators and Guests

Host

Justin Stoddart

What is Think Bigger Real Estate?

The road to success for real estate agents is well-marked. The road to significance is not. Here, we help you to Think Bigger than just your business. We inspire you to seek success AND significance, income AND impact. We do that by interviewing the biggest thinkers and highest achievers in the real estate industry, extracting the secrets to having it all.

As a top professional, you might be surprised to know how many opportunities you're missing from right inside your very own client database. But how do you know about them beyond just waiting for your clients, hoping that they see your marketing, hoping that they remember you, even you proactively reaching out to them, sometimes there's some hidden opportunities. For example, do you know how many properties your clients own? For example, maybe you sold them one property. Or maybe, as a financial advisor, they've disclosed you that that they own, you know, these couple of properties. But do you do you have a full picture today, I'm going to share with you a very exciting moment in the history of the company that I lead, pro insight, in which we're launching a product called the deep dive. The Deep Dive gives you as a professional, regardless of industry, as long as you serve property owners, it's giving you visibility into the property holdings of your clients and details about them, so that you have the ability to really act as a holistic advisor like never before. This episode is going to blow your mind. I can't wait to share with you. You're going to be watching a video in which I entered in which I interview the founder of pro insight, and I'll be giving some commentary as we go along. So stay tuned. This episode again is gonna be one that's gonna change your perspective on how to truly elevate your game and be at an advisor like never before.

So the big question is this, how do those of us in the real estate industry who have crazy amounts of ambition, how do we think bigger than the building of our own empires? How do we create success and significance, income and impact? My name is Justin Stoddart. This is my co host, Stephanie Peck, and together, we bring you the think bigger. All right. Welcome back, everybody. Boy, this is an exciting moment. We've had this product in development for over a year, and my brilliant business partner, Don Jom is the one who conceived this. And we're going to talk through, as you watch this interview between me and Dawn, you're going to hear how this all came to be. So we're gonna go ahead and bring this up now, and I'm really excited to share with you the deep dive. We believe that real estate agents in general are some of the most generous referral givers in the world. In fact, maybe just by a show of hands, I'd love to see how many of you have given a referral to another professional this week. Hands up, okay? And two hands up if you've done more than one this week. It's Wednesday. You guys, you look at that, how many referrals have gone out already from you? Well, in my my quest to to find a way to have those referrals come back around and begin interviewing other professionals, and one of my, my favorite professions that I interviewed were financial advisors. I knew that they had significant trust with their clients, and in many cases, they knew what was happening in their life and that they could be a potential, really good, real referral source for real estate agents. And I interviewed over a dozen of them. And it was really interesting to me, because it was almost unanimous that they said that at least once a month, if not twice a month, they had one of their clients saying, Yeah, we're getting ready to sell a property. Now, when you think about that for a minute, imagine being in a spot where a financial advisor knows that their clients are going to move like, what, like all of us are drooling, like, really, like, one to two a month from one financial advisor? And that was unanimous, like, yes. And then I had the follow up question, which is, how many of those referrals are you passing to real estate agent? And the answer was almost unanimous as well. And it's like, well, I'm not, I don't pass those to real estate agent. And I was thinking, like yourself, you've got to be kidding me. Like, what a waste, right? Like, what an incredible opportunity. And as I dug into that and said, Now, tell me, why? Tell me, what's the disconnect, right? Why? Why is that not happening? I uncovered, if I could summarize everything that I learned, it was that they saw themselves working very different than real estate agents. In short, they said, We have clients. Real estate agents have past clients. Right now, that might just seem like a matter of semantics, but to a financial advisor, it was real enough for them to state that we don't, we don't pass the kind of business, because it's not someone who's going to continue to accompany somebody throughout their life in the way that maybe a tax professional or we as a financial advisor would those people, they see them every single year, and they continue to work with them. And so with that, I began to realize that there are a number of professions who have an abundance of influence and an abundance of opportunities to refer real estate agents, and they're not doing it. And what Don and I set out to do now together is to help these other professions to realize just how beneficial it would be for them to actually send referrals to a real estate agent. And the tool that we've created is, and it really was, Don's like Don's idea right now. Come to life. And I'm really excited to interview Don on this product, so you guys can see by using this tool, I go from being a transactional agent that is never going to get referrals from a financial advisor, aka, that's almost all real estate agents, to being one that is seen as an equal, a peer, and somebody that other financial advisors would say, How do I get in business with that real estate agent? That's the product we're talking about. That opens up the door for you to get more business from your own client base, as well as to start to get that flow coming back to you from very influential professionals.

Well, thank you, Justin. And this product is a genesis of a couple things. One of them was that I was on Facebook one day a few years ago and I saw a question, and the question was put out by the administrator of the group and said, Well, what's your retirement strategy? The one that was the most impactful to me was just about a third said death was their retirement strategy. And I'm just thinking to myself, that's totally insane. And yet I've been in this business. My first full year was 1990 and I have not been to too many retirement parties. Has anybody been to a real estate retirement party? Okay, not, not a very positive state of affairs. And so that was the, probably the genesis of this. And then, as Justin chaired, I did come into contact with Justin, and he told me about his engagement with the financial advisors, and particularly how the financial advisors viewed us as very transactional and viewing our clients as past clients and so basically unreferable, right? So my, my favorite analogy of this and and really the reason why I started pro insight was that at least my experience of being in real estate was that there was a buffet. I brought the food, the affiliates brought a fork. And to be honest, it really pissed me off. And as a driver personality, we don't like me take it for granted or take it advantage of and so that's why I'm trying to solve that problem for you guys, so that you do receive professional referrals. The Deep Dive product was designed to meet the agent where they are today. And in fact, when you interview most relationship based agents, they will tell you that more than 70% of their business is by referral by client. Hopefully, they don't refer to them as past clients anymore, by client or sphere of influence. And what this product does, you're you're looking at the screen here, and it says 500 to one clients. So what this is saying is that this member, this agent, and it actually we do it for all 38 categories on the platform that we serve. So that would include lenders, financial advisors, attorneys, insurance, painter, plumbers, roofers, landscapers. But in this case, we'll we're using a realtor that has 501 clients that they had compiled into a CSV file and then hit against our portal, and we have written an integration into all 150 5 million properties in the United States. And so what that does, five to 10 minutes later, because it's literally having to tick against 155 million properties to see if it's a match. Is it kicks back their assets under management. And in this example, this individual has 503 million in assets under management. For context, by the way, one of our agents and members, Stephanie Peck, has 800 in her data set, and she had 934 million assets under management. And then it does break it down between income, property and primary addresses. Quick,

quick, quick comment on that. In case any of you are not familiar with how financial advisors talk about their book of business, that's exactly how they talk about it. In fact, last week, financial advisor said, Yeah, we're actually required legally to know what our assets under management are and to report that so simply by you taking the sum total of all of the properties owned by your clients, which is how you would define assets under management, right? Don, that that that is now leveling the playing field, is that what I'm understanding? Don, is that that's really causes you to talk like a financial advisor.

100% Yeah, and this actually not only tells you your assets under management, it tells you how much of those assets are being held with income property, in this case, 30% or primary residences and. Then it translates that into volume. So 150 2 million in income property, 351 million in primary residences. The next thing you know, we we often will say that the transfer rate in the US is roughly every 10 years, and it tends to be a little bit higher when property values are going up really high or down really fast. But a typical turnover is about 10% in fact, it's a little bit less in most areas right now, because folks are naturally reluctant to give up their 2.853% interest rate and move into a 6.75 but we are still seeing transfer rates. I'm suggesting here for income property, about 12% for primary residence, about 8% which is about every 12 and a half years, and in this case, the portfolio had 80% of the properties that didn't turn over at all. And then it translates that transfer rate, and this is the transfer rate, mind you, of that particular member. Or actually, you don't have to be a member to get the deep dive, but that the owner of this data and their client base,

and you know, I'll just share this was an aha for me, is that I was in title for a number of years. And anybody can pull can go to their title company and say, for this neighborhood, right? Tell me how many properties are there, right? And, but the challenge with that is it's just a bunch of it's a bunch of strangers, much people you don't know and they don't know you. And, and what I think is really interesting here is that these are your clients, these are your warm relationships, right? This is, this is a snapshot into your client database that's never been done before.

Yeah. Yeah. And to your point, that was a huge revelation for me when I was coaching some loan officers some years ago, when rates were really favorable and you could do these streamlined refi on FHA loans. And so they pulled up a list, and they were contacting these homeowners, I mean, and I'm telling you, the people, the homeowners, could have very easily saved 789, $100 a month. But let me tell you, as a cold call, they would not give these guys the time of day, even though they would potentially be saving them 800 bucks a month, right? Because they just they didn't trust right? But because it's your clients, as Justin said, it's a completely different communication. And so the next question, though, is we, we know the volume that you have of your assets under management. Now we know the transfer rate. Well, what percentage of that are you actually capturing? And so we will track that as well. And it was interesting because I was analyzing Stephanie's pecs database, because she was in the beta of this. And I said, So, for example, you know, Stephanie has roughly 900 million in assets under management with about a 60% capture rate and and so she would do about $54 million a year. And she was like, well done. That's exactly what actually did 55 million last year. So it it is not only is it powerful for you to be able to have such more informed conversations with your clients now, and by the way, she also said to me, you know, I had no idea I had a client that had 30 rentals in Flint, Michigan. Okay, so you're also it gives you a barometer of how you're doing in terms of your level of relationship with your own clients, like I'll talk to somebody yesterday, as a matter of fact, I talked to somebody from Colorado that had been in the business for 23 years, and I asked him, Well, how you know how many, usually, agents know roughly, how many people they have, how many leads they have in their database? This guy wasn't actually even sure. And then when I explained the assets under management, I was like, I was talking a foreign language to him, and this is a guy, by the way, that's doing 60 deals a year. It was crazy. Anyway, we want something better for you guys, obviously. Well,

I think that's the powerful component, right? Is sometimes we kid ourselves that maybe we're not as good as we actually are, or maybe we think that we're way better than we are. It's like, yeah, all my clients know me, they get my emails, and are they using you? And sometimes I think that it's because we don't even have transparency on all the properties that they own, right? It's like, yeah. Like. Yeah, I sold them that house. Of course, they're my clients. Little did you know they've got five rental properties in your town that they're using somebody else right now, of a sudden, you've got visibility on that, and you're not going to go to them and make them feel bad about that, but you're going to open up conversations about their real estate portfolio and how you might be able to help them, right? So anyway, just you know that this is really opens, kind of opens up under the hood of like, what do my clients really need and who should I be focusing on, versus just right? The Yeah, the first last name, right?

Yeah. We'll get into how to concentrate your energies. But it was funny when Stephanie heard that she goes well 60% huh? Because she, she works with the mentality like anything less than 100% is not cool, right? So that was fun. But the difference, by the way, from 60 for 100 for her 46 million bucks a year. Uh, okay, so, but in this scenario, this agent's doing 20, roughly $27 million in business, which you know, for most people, they would like doing that amount of business. One of the things that I want you guys to pay attention to is that, well, and I'll go to the Commission next. Sorry, I'm assuming about a 2.5 and 2.75 commission. But you know, it'll vary by client and area and agent, of course, you would put in what it is appropriate for you. And so what this is saying is that this agent, with 500 clients, with 503 million assets under management, is making roughly $720,000 per year, which is a mighty good income. You know, that's definitely a top one percenter and but what I want you to see is that there's a relationship between for one client basically adds about $1,000 a year in income. So if I've got 100 clients in my data set that you've transformed into a client base, and you maintain a 60% capture rate, you could roughly figure you were going to do 100,000 a year. 200 will get you. 200 300 300 actually, in this case, it's a little bit more than that. But you know, property values will vary by area as well. The US average is about 425, and your area maybe a little more or less. The point is, there's a very direct correlation. And so, you know, we're not w2 employees, folks. If you want to increase your income by 100,000 bucks, then add 100 people to your client base for whom you are a real estate resource to become their realtor of choice. All right, the way that we know, like, let's say Stephanie, she has 800 clients in her data set. Who do you call? Well, we've identified the key areas where there are opportunities to serve. And this is why, this is how we're we want to be able to take you from being a transactional professional into a relational professional, where you're really giving consultation to your clients and making a difference for them. No and

one, one term that stands out to me, Don As I think about this. It's been said before. Don't, don't be a real estate agent, be a real estate advisor. And oftentimes, the only time, the only thing people shift in, actually in, in their business to call themselves that is they just like nothing. They just say, Yeah, I'm actually a real estate advisor. Because that sounds better. And what, what I hear you saying, is that this actually empowers a real estate agent to actually be an advisor, right? They actually have all the information in front of them to advise that client, not just on the one property, the transaction, right? He's seeing the correlation there. If you're you can be a transactional advisor, right? In other words, I advise people on this transaction. What we're saying is you can step back and be an advisor to their real estate portfolio. You can be a wealth advisor for their real estate portfolio. And although that sounds cute, it sounds nice, you actually have something substantive to be able to actually help you to do that, right? It's not just a pretty new title that makes you feel more sophisticated. No, it's real. You actually have the data to be able to do that

once you have uploaded your data set, transformed it into a client base. Now what's happened is you have opportunities to serve and so case study number one is you. Client has free and clear property. It's an income property. He's over 60 years old, and he's looking to simplify his life. I was talking with Tom Daves and also Russell in your in the Sacramento market, for example, if you had a $500,000 home, you know roughly what the rent would be. And then after you figure for maintenance and management and vacancy, what would the cash flow be? And it came out around 24 2500 bucks a month. And what this scenario is saying? Because, by the way, if somebody has bought this rental, say 20 years ago, they'll have a very low basis. In other words, they're going to have a very significant capital gain if they sell. So you'll get these older folks that have that are very property rich, but but cash poor. And so here's a solution where they could do seller financing. Of course, they're going to want the buyer to put a material down payment at least 20% but in one of the benefits of the high interest rate environment that we have relative to a few years ago is that you could actually get pretty good money on a note right now, probably seven seven and a half percent. And so at 7% amortized over 15 years, it's $3,595 in income. So you take somebody that was earning 2400 a month net, and had to worry about managing the property manager at occasional vacancies to not having those worries anymore, and increasing their monthly income by over $1,000 a month, and spreading that capital gain over 50 years. So in this case, you probably want to have a realtor and a tax specialist involved. Next scenario, we have a couple that they have a free and clear property again, but this one's a personal residence, and again, they're cash rich. By the way, in America today, we have record equity. There's I saw a quote the other day that Americans are holding over 35 trillion in equity right now. More than 30% of the homes today are free and clear, and so what somebody could do in that scenario is they could do a reverse mortgage, and they could pull out half of their equity. They could go buy pay cash for a motor home. They could travel the country and have to be able to live in their home for the rest of their lives with no mortgage payment, just be responsible for taxes and insurance. So that's another solution for them that would change their lives in a really material way. So Brett, this is, this is your department. So I, Brett, has started a company called Capital Gains Tax solution. And, you know, and I've been in the business, I told you, my first full year was 1990 and I thought I had heard everything, or most things, but when I met Brett, he enlightened me that it was possible to be able to shelter or defer. Brett, you're going to probably want to give me the correct language around this, but we have a an individual as you I'm sure you guys know there's a $250,000 gain exclusion on personal residence, or if you're married, it goes up to 500,000 Well, turns out some folks have done a lot better than that. And Brad will probably share an example or two, where if they sold their primary residence, they'd have a huge capital gain. So Brett, can you come off mute and just share? Maybe I'd like to hear, or we'd like to hear of a real example in how you help that client. Yeah, we had

a client in Palo Alto, near Stanford University. The sale of the price was sales price about 8.3 million. He had six kids. Kids were all out of out of school, in in college and on their career. And his entire equity, basically net worth, was tied into this property. So exactly what Don's saying here, where you're looking, he's looking for an ability to retire and achieve what's called truly passive income. And the challenge is, when you live in a house, it's, it's not producing income, you know, primary home, unless you're renting the house, which he doesn't want to do, and it's tough. So his basis down this scenario was around five and a half million. And so you do the math on that, he's, he's single at this point, so, you know, he has a 250 exclusion. So he's looking at, you know, call it at least, you know, two and a half million dollars of gain. And California, you're looking at tax at about 33% on a primary home. So you do the math on that, that's, you know, hundreds of 1000s of dollars of tax on 2.5 million. I think you would have paid like, 800,000 I don't have the math in front of me exactly, but so we were able to help him set up a plan where he could sell his primary home and defer the tax and not have to do a 1031, exchange. And that's really the key here is people want the ability to be passive. Most do not want to go into the toilets, the trash, the liability. Most don't, even if they have a primary luxury home, they don't have necessarily have experience with investment property, nor does the primary. Them eligible for for a 1031 exchange, and so, yeah, that's one example. If you don't bring a solution to the problem, you're not kind of likely get the listing, and the deal would have just died. The seller, the listing agent, wouldn't have sold the property. You know, he wouldn't have got his dream, which is to retire and sell that house.

One observation that I've had is you come across people like Brett that have real solutions like that, and this tool that will empower you to do that is that I believe that order takers, meaning agents, who just get a phone call and say, Come list my property those days are limited. I think consumers want more value for what they see as they're paying out. They don't see all the stuff that we do to get to that point, and all they know is that they don't want to pay somebody a lot of money for what they perceive as not being much. And I think those professionals who will continue to thrive moving forward are those who will do exactly what Brett just described, which is they will identify with real data what's happening, and then they'll be able to produce solutions to the problems that others don't know of.

I just want to reiterate that that one solution netted that realtor an $8 million Listing. Okay, somebody wants to do the math on that two and a half percent, I think that is over 200,000 and and save the client 800,000 in taxes, one of the things that we plan to do. You know, it's just fascinating what's happening with AI right now, and the intelligence that you can compile, and you can look at these different key indicators, like I had referenced somebody that was 60 years old, free and clear, property, income, property, low basis. These are all public record information. And I want to reiterate, all the information here is all public record right? It's just that we've compiled it in a way that it can be useful for the professionals to be able to have informed conversations with their clients. And yet, I know, because I've had roughly 5000 agents work for me that there's only a few percent that will pick up the phone and do that, and so our plan is to done for you solution. So once we've identified, let's say, the top 20% of opportunities, you could hit Select All, and we'll communicate to the clients on behalf of you and in your name, of course, because that's the way you have influence with the client, and then literally have them calling you or booking appointments in your calendar. So that's a goal for this and for you to make possible. To wrap up here, I've been in communication. Remember, I told you that the genesis of this was that I saw that post that 1/3 of agents viewed death as a retirement strategy and and I'm really, you know, on a mission to change that. And yet, I was talking to a business broker, and he was saying, you know, Don there's 34 million businesses in the US, yet only 5% sell. I didn't tell them, Well, 5% that's pretty good. I'll bet less than what half of 1% of the real estate practices sell, even on a referral basis. But he goes, but when you can get the income to 500,000 or more, you hit this tipping point, and you create a sellable asset. And it's because 500,000 is a level of income that most people can't just earn. A lot of us have six figure incomes, even a quarter million dollars a year, but to net over 500,000 a year usually requires owning some type of business, and so that becomes you move from having a database and retiring with a whimper. If somebody is making $100,000 or more today, we know we can get them to 500,000 within three years. Now they have a sellable asset. You can retire from this business with dignity. You can actually have a sellable asset that can secure your family's future and and it

all right, as I mentioned, it's something that we're absolutely ecstatic about. That, as Don mentioned, we can take someone who earns over 100,000 now, get them to 500,000 in three years, and give them to where they actually have a sellable asset. And we can do that because of a number of things. Number one, the deep dive data gives unique insights into your clients. It also makes you very attractive to your clients because, number one, you can be you can be wildly helpful to them seeing opportunities that you you couldn't see before. Number two, it makes you wildly attractive to professionals in other industries who, before, just saw you as a. Transactional professional. Now they'll see you as a relational, someone who has influence, ongoing influence, and they'll want to be in business with you. And then, last but not least, all of that, that those types of referrals, that types of that type of business, makes it towards not contingent, and hinging entirely upon you and your lovely personality. It differentiates you in a way that allows your business to be tied to relationships with other businesses, versus your very personal relationships that are not transferable. So all of this, again, begins with you accessing the aggregated data property, holding data, publicly recorded data, by the way, of your clients, real estate holdings, and then we'll help you utilize that from there to take it all the way across the finish line like we described. So anyway, I'm really appreciative of you tuning in and listening to this announcement that we're so excited about, and it's really making waves in the industry, and we're excited to get get it in your hands and really help you to elevate your game in so many ways. So many ways. So thanks for tuning in. We look forward to talking

soon. Before you go, we've got one more invitation for you. We all know that listening to a podcast is not enough to help you to become a big thinker and high achiever. We must take action. So the very first step, think about one Aha, one lesson learned from this podcast that you'd like to apply and send it to us in the form of a direct message at Think bigger real estate. We look forward to hearing from you and helping you to go think.

Transcribed by https://otter.ai