Ryan Serhant Reacts: The Solo Agent Who Closed 1,000 Deals

Without further ado, welcome everybody to this week's episode of Sir Hant Live. Our guest today is someone I've known for a long long long long time. Long time. And one of the people in the industry who actually has done the work. I think that's why I liked him so much when I first saw him online and then I saw him speak at a conference. I was like, "Oh, another guy who like who does this. He sells real estate. He's sold so much real estate. Um uh he's done the work and he knows how to talk about it and he has a real passion for helping others. Um Ricky Kruith has personally closed more than a thousand real estate transactions including nearly a decade of doing a 100 plus deals a year. Okay. As a solo agent, that is a lot. No team, no help. Pre-Is also built a massive following. He's coached agents around the country. He has some very strong opinions about where this business is headed. Uh we agree on a lot. I think we definitely don't agree on absolutely everything. Um, so today I want to get into how he built his business, the lessons he learned after losing everything. Um, what agents should be doing right now, where Ricky and I see the future of real estate a little bit differently. And we are right on time. Hey Ricky, thanks for doing this. >> Hey dude, honored and blessed, bro. How you doing? >> I need a catchphrase like that. Honored and blessed. I love it. >> Honored and blessed, baby. Yeah, dude. Your agents are crushing it, dude. I was hearing all the wins. >> Yes. Yeah, we try to pick five. It is It is hard. five wins and then five uh what we call certain effects or or brand effects where you know because no one's born here. We don't take agents who are who are brand new to the business. They've all come from somewhere else. And I love love love tracking how much more they win here than than elsewhere. And so whether it's a a deal, a client, a relationship, something that's come from from being here as part of the brand, if they're winning here, uh then everybody's winning here, which is cool. I also want to keep the chat live and and media here because everyone knows who you are. Um, and they're very excited that you drink Fresca. Um, uh, >> hey, every every time I take a sip of Fresca, I get a new listing. >> Is that true? >> Mhm. >> Oh, that was like three or four listings right there. >> Interesting. Wow, that's awesome. All right, tip I can give you, man, is just go get a six-ack of Fresco. >> It's all you need. >> What a brand moment. Um, you said that you once failed >> because you chased money, >> not value. >> Like you said, you chased the commission, you didn't value the people. >> What? Yeah. What does that mean? What What do you mean? Can you give us a little bit of a backstory there? >> Yeah. No, I I when I got in business, it was 2002. >> Okay. >> And uh the market blew up. Like, dude, I grew up basically like, you know, we we didn't have a lot of money growing up. So, I get in business and I just start. >> Where did you grow up for anybody that doesn't know? >> Yeah. I'm down here in Gulf Shore, the beautiful white sandy beaches of Gulf Shores, Alabama. >> Nice. >> You ever been here, by the way? >> Nope. >> Yeah. Yeah. You need to come down and see me, bro. >> I I That's next. Not Not yet. Not yet. I haven't been there. >> Come down here and swing a golf club. I thought I saw a video of you swinging a golf club not too long ago. >> Yeah, it wasn't a great swing. Keep going. Keep going. You lost everything and you came back. >> So So yeah, I got in business in 2002. The market was like on fire. So like I thought I was some like real estate wizard, but really I was just like a hard worker in a really hot market. And I could make 20 phone calls back then, find some seller that wanted to make 2,300 grand, you know, list their property, sell it in a day, close in 30 days, make 30 20, 30, 40 grand. So I can make 20 calls and make 20 30 40 grand. So and and when they sold, they just like disappeared. They weren't going to reby into that market. They didn't really care to like stay in touch. They were out. And like I didn't need them because I could just make 20 more calls and make 20 more grand. So in the beginning of my career, it was like I I I was born into this market that really didn't require you to build relationships or, you know, care what happens after the deal. And that's literally what took me out. Like I I was swimming naked. Like I didn't even know I was swimming naked. Like the tide went out and there I was. And um I lost everything I had because I didn't understand this one simple principle. Like every relationship you put in place is worth 10 to 20 deals over the life of your career. And it literally hedges you against market swings cuz like what I real what like what I what the re the way I found that out is like when I lost everything, I went back to roofing. I was working on an oil rig. I was sleeping in my car in a Walmart parking lot and I was watching MLS cuz like the the two things I kept was my real estate license and my cell phone. That was the only two bills I had. My friend gave me their car that I was living in. And I was watching MLS and the clients I had that I sold to when the market was was great, they were listing their properties with other agents, selling those properties, buying other properties, and I was like, "Oh my gosh." Like that's when it hit me and um that was the moment for me. I was like like this isn't I didn't have a transaction problem right there. There like wasn't a market. I I thought like there's this divide of agents right now like 5% of agents are making 50% of the money. >> And so I feel like there's like this 95% mindset 5% mindset. And this 95% mindset is like the market is correlated to my success or the market dictates how well I'm going to do or not do. And it's if you want to be a 5% agent, you have to think the exact opposite of a 95% agent. The market has nothing to do with it. Like every day you wake up, you look at MLS and there's like closings, like tons of closings every single day. And like it took me it took me a minute to really I had to hit rock bottom to really realize it. But that was the moment. Something that I've I've also learned the hard way and what I tell a lot of our agents here is [clears throat] you can be transactional, which would be great when markets are great, really really bad when markets are bad, or you can be transformational. M >> which you'll be great when markets are great, >> maybe won't be the greatest because you're not just going to be focusing on every single transaction. Um but when the market falls out, which it's going to >> like, and it will. It falls out every time. When it's good, it's never been better. And when it's bad, it it it's never been worse. And that's how people feel. Like in 2020, we're all going to die. By 2021, holy heck. [laughter] Holy heck. Right. In 2008, we're all going to die. by 2010. Huh, this is great. We just needed a good reset. And so being prepared for those moments, making a choice, do I want to be transactional only or transformational? >> And then if you choose transformational, how do you attach helping people transform their lives, helping your team members transform their lives, helping your clients move forward and all that stuff while still doing as many transactions as possible? There's there's process there. And one of those processes is never losing touch in a business that is really based on the people. And what AI has done is it's made what makes us so unique that much more valuable because if if follow-up is now a commodity because you don't have to do handwritten letters. You can just everything's automated, automated, automated. People are focused so much more on real conversations. And um uh uh you know, I think you realized >> when you quote unquote lost everything um uh that you built your entire business after that on really staying in touch. >> And you talk about this a lot. You and I have talked about this before. >> What does that actually look like in practice? >> It's easy to say, "Yeah, follow up forever. It's awesome. Stay in touch." But what are you doing every week? What are you coaching your people to do every week to make sure people don't forget you? >> No. Yeah. I think um transactional versus transformational, right? I think that's pretty pivotal because like agents have transaction brain. They're just like get the deal done, do the deal, do the deal, do the deal. Like they they believe prospecting, the purpose of prospecting or talking to prospects is to set appointments, close deals, show a house, sell a house, whatever. It's not >> that's transa that that's being transactional. That's having transaction brain to be transformational. >> Okay, here's the difference between transactional and transformational. To be transformational, your job when you're talking to that prospect is not to set an appointment, show a house, get a deal. is to simply this is where the transformation happens. Make them feel so comfortable with you that they open up to tell you everything they want to do and why so that you can just simply help them do it. Like we don't have to get people to do things. They're already doing it. Again, look on MLS. Like look in your MLS wherever you are and just count the closings every day. Like even in this down market right now, it's unlimited. You can't do all the deals that are there. you. No agent can do all the deals that are available to each and every agent because there's so many there's so many prospects and clients and people in every market that would say yes to any agent. It's just a matter of getting to those getting to those prospects. But you said, how do you stay in touch? You know, what do you do on a weekly basis? Like step there's two parts to it. Step one is to be transformational in terms of not trying to close someone, but just understand what it is they want to do and why so you can help them do it regardless of what that is. I want to sell in 5 years. Great. What's going on in your life in five years that's causing you to want to or need to buy or sell this house in 5 years? Susie's going to college and Billy's retiring and we want to be on the water. Awesome. Now I got something right. >> And you're following up with that person about that every every week. Is it are you using a CRM? Are you just excelling? Are you in your Outlook, your Gmail? What are you doing? >> Nah, so here's the thing. If they want to do something 0 to six months out, I'm making a list. That's my ABS's, right? Active buyers and sellers. People that are looking to do something in the next 0 to 6 months who may choose me as an agent. And I'm just following up with them based on what they want to do, what's the next step in the process for them, and and I can actually calculate how many deals I close every week based on how many ABS's I have. Long-term people like Susie that wants to sell in five years. Weekly email like a weekly email. It's so boring. It's so easy. It's so simple, but it's so scalable. >> Yeah. >> And so, like my thing was compounding relationships. I wanted to make a million bucks as a a year as an agent. Like I grew up in Alabama, there no money. I'm in a small market. Like a million bucks a year. It's a big deal down here. Especially back then, like we're talking about like early 2000s. It's crazy. I knew that when I came back the only way there's only one path to a million bucks or whatever like whatever that number is for you 5 million 10 million 3 million to whatever it is right it's subjected to whatever your goal is there's only one way to that goal as a real estate agent it's by compounding relationships into the year you like the year you hit your goal is not going to be from leads that you got the year you hit your goal >> correct >> it's going to be from all the leads you got all the years leading up to the year you hit your goal and so how do you make sure each and every one of those people over the years never forget you. You tell me a better way. Like social's great, but I I view email as a social media platform. Like it's it's a place where people scroll, click on things they like, you you you know, you you hook them with a great subject, you bring them. It's the same thing. It's just a different format. >> So interesting. >> Yeah. And so for me, it's like email being social. That's my social that like I own the data. I control the algorithm. I think I think social like social should the objective should be how do I get them off those platforms that I have that I have zero control over and get them into my platform whereas in 10 years they still see my stuff like you know you follow people online and like you like you know you'll stop seeing their stuff after like three or four five weeks >> but then you'll see something of theirs like 3 months later you're like oh forgot about that guy >> like the algorithm does not like that's not a good like >> um this is how I stay in touch the inboxes, social media for conversations. Um, uh, yeah, non-stop communication, I think, is incredibly clear. So, when the client has the idea to move, to do something, they think you without you having to remind them that you still exist. >> Dude, the system is like, be present when they're not ready. >> Yep. >> So that you're the only name they think of when they are. >> Yep. Huge. Great bite. Everyone remember that. How did you do this though? Solo. You said you did over a hundred deals a year, >> 10 years, no team. >> Are you Are you sick? Like, are you Do you have a problem? >> I am. I am. I'm deranged. >> I am. I am. Something's wrong with me. But you There's got to be something wrong with you to do this business. Which is why why I got out of there as soon as I could, by the way. Nah, like I had a system for everything. I had a system for like starting the conversation, staying in touch, following up, like processing listings. Um, I uh soon like I would see a property and as soon as a seller was like, "Yep, let's list it. We got the price. We got the commission." I just texted my assistant the info, which is like eight pieces of information. I never heard anything about it until an offer came in, right? She sends the listing. you know, orders the pictures, puts a partial MLS, gets the pictures back, puts an MLS, handles all the showings. >> So, is you plus an admin at the time? >> Yeah. >> Oh, yeah. Yeah. Dude, let people are like, well, team versus like solo versus like build a company or ex like people want to categorize things as either like a lifestyle business or an empire. I'm like, why can't you do why why can't we create an hybrid like a lifestyle empire? >> Yeah. >> Right. Like Let's put it this way. Being solo versus team, I was out selling every single team in my market. Like my volume was higher. Like I was the number one guy over everyone including teams. And those guys are running on like 20% margins. I'm running on 80%. I'm doing more I'm doing more volume at four times the margin. So for me in my market, it was just kind of the way to go. Like everything's subjected to where you are, what the environment is, what the opportunity is. So there's >> exceptions. >> What do you think? Like that brings up a good point about inefficiency. I do think that a lot of agents spend a lot of time doing things that are not a great use of time. >> Something that we say something we say a lot. I'm in a lot of of of engineering meetings these days and it's a lot of time with tech team. It's super cool. But we talk a lot about just because it's working doesn't mean it's worth it. >> Yeah. No doubt. Right. Right. >> So to that to your point, agents >> what are agents spending too much time doing right now that feels productive but doesn't actually produce being productive and producing are two different things. >> I can I can break it down like this for like a visual for everyone. >> Yeah. >> You could literally agents right now, especially your agents because you said you're you're helping winners win more, >> right? So they're already established. They're coming in, you know, they they've already got an established business. If you have an established business, like you've tested things, you have things that work really well. You could triple your business overnight and you do it by this. You look at everything that you're doing that produces business and every single time you're going to find 20% of what you're doing is producing 80% of the results. Right? That's cliche. Here's where it gets interesting. is that if you the reason why they won't quit doing the things that aren't working great is because it is producing something and they're scared to let that little bit of something go, but it's taking up the same like say you have two activities in your business that produces say 30% a piece of your overall business, right? And then you've got like several activities that produce like 5%. >> Well, but if you replace these 5% things with one of the 30% things, just do more of the 30% things. triple your business overnight because it's the same time that you spend over here that you can spend over there, but they're scared to because they don't want to let go of that little bit of business. And so they're saying no to this this thing that they've already tested. They've already put the work in to test the thing that works great. I think people also lie to themselves. I mean, a lot of couples that should not be married anymore because they think that's what makes them happy and they ignore the part when they're happy that other time when they were, you know, I think that's I think much bigger. >> They're holding on they're holding on to that thread of >> Yeah. You know that >> they're holding on to the idea of I'm supposed to I think I think you know in that movie Whiplash JK Simmons says the two scariest words in the English language are good job. I think >> I think the other two are supposed to >> I'm supposed to >> build this. I'm supposed to >> do this. And I think asking the question are you? Um uh uh is important. I think too for solving for an efficiency I think never has there been a better time than right now. >> Um honestly like for the first time where ambition has leverage >> that used to require an entire organization, an entire team of people. Um, you know, just my my just my my two cents. Um, we only have a couple minutes left. I want to get to the I have three final questions for you really really quick. Um, we'll be succinct here. >> One, you're incredibly bullish on 2026. >> Mhm. >> As far as I can tell. >> Why do you think, >> sorry, on on 2027? Um, uh, are you? Yes, I think so. >> Oh, yeah. >> Why why do you think this could be a much bigger year? >> So, number one, like people expect >> Yeah. Number one, 26 was gonna be hot. Like before the war started, you know, like rates were under six. We had a bad jobs report after the war started. Like, yeah, >> it would have went down even more. Like, and and and look at what the market's doing right now. It's basically like holding its own in the middle of all this. Like, that tells you how strong the market is. So, yeah, we were about to have like not like a crazy breakout year, but a step in the right direction, and that got that got that got delayed because of the war, guys. That's the biggest opportunity that that's that's that's that was the biggest gift that you could have gotten as an agent because the the bigger you build your business while the market's down, the the more your business expands. Like the rebound, the market rebound will expand whatever business you built while the market was down. Let's just say it like that. If you don't build any business while the market's down, the rebound has nothing to multiply your business against. >> Yeah. >> Like you've got to go hard now because once it happens, you can't go back. Right. Here, here, here. I I think I think agents should focus on right this second because who knows if the rebound actually happens next year, but you should be preparing for it in case it happens either way. How many active listings do you have March 1st? Can you get to 20, 30, 40, 50, 60, right? That that should be all you're focused on between now and then. I want to do open houses. Do it after March 1, you know? I want to do this thing of social like do it after March 1. I like that. Setting a clear list by goal for for for March one. What is something you think you and I disagree on? Is there something you think that I I talk about a lot or teach a lot that you completely disagree with? >> No. >> Oh, okay. >> Do you >> I don't I don't know. I don't know. I'm always I'm I'm open to feedback. I'm open to to >> No, I think I think we're pretty lined up on everything. I mean I mean the market's going to rebound. I think AI like AI is a game changer. Like it is reshaping the industry. I think the problem is that agents spend way too much time time trying to learn AI and figure out where to where like where that puzzle piece fits in their business that they take so much mental capacity off the table that they should be expending in other places. So, it's like you're gonna get left behind if you don't learn AI. No, you're gonna get left behind if you don't sell some homes pretty soon. >> Yeah. >> Like AI AI is uh it's a tool. It's not a replacement. It's a tool that you use to optimize the systems that you got. Um and I tell you this about AI. I think it's going to make agents so much it's going to make agents rich even if they don't use it. How, Ricky? It's going to create so much global GDP, I believe. And where's that money going to flow to? >> Right into real estate now. >> Right. So I mean like AI is going to make you rich even if you don't learn it because like the amount of money that's going to flow into real estate over the from here on out basically. >> Yep. No, it is a it is a trickle down economy. A lot of our agents and a lot of our markets are feeling that right now. Ricky, I wish we had four hours to talk and not just these 20 minutes, but you and I talk all the time. We meet all the time so people can get more of this in the future. Thank you so much for being here. This is super cool. Thank you for being a special guest on our live. Um everybody else, that is all the time we have today. I was going to bring US Open semi-finalist Ben Shelton on as our second guest. He was supposed to join us, but apparently he didn't get off of work until 3:30 a.m. Eastern time last night. So maybe next week. Ricky, everyone else, I'll see you soon. Bye.