What advice does Ryan Serhant have for new real estate agents?

He recommends finding the best agent in your market and petitioning to work for them, even for free initially. Treat the first three years as graduate school, focusing on learning and gaining experience.

How did Ryan Serhant scale his business from small rentals to billion-dollar deals?

He focused on consistently doing the biggest deals of his career at the time, gradually increasing his price point by leveraging client networks and focusing on higher-value referrals. Success begets success.

What are the most important characteristics for success in real estate sales?

Empathy, energy, and enthusiasm are crucial. Agents need endurance to handle the challenges and a genuine enthusiasm for the business and interacting with people, not just the money.

Why do many real estate agents fail?

Most agents fail because they can't handle rejection and aren't honest with themselves about their capabilities. Unlike traditional schooling, sales requires self-awareness and resilience against setbacks.

What is Ryan Serhant's investment strategy?

He primarily practices a 'buy and hold' strategy for real estate investments. He believes that holding onto properties, especially in urban areas, generally leads to greater long-term wealth than flipping.

Should new agents work for free?

Ryan Serhant suggests working for free or at a very low pay if possible to gain experience, especially during the initial 'grad school' phase of your career. If not feasible, having a side job to support yourself is recommended.

Ryan Serhant: How to Sell a BILLION DOLLARS of Real Estate Per Year!

Graham Stephan

Education5 min read25 min video

Sep 26, 2018|176,634 views|7,338|475

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Key Moments

TL;DR

Ryan Serhant shares insights on building a billion-dollar real estate career by embracing "grad school," shameless hustle, and strategic scaling.

Key Insights

Embrace "grad school" for the first three years of your career, focusing on learning over immediate high earnings.

Shamelessness and hunger are key early on; take on difficult clients and small deals that others avoid.

Success begets success: consistently focus on and communicate your current level of deals to attract similar clients.

Authenticity and enthusiasm are crucial; genuine passion for sales and client interaction differentiates successful agents.

Scaling requires delegation and building a strong team, but maintain a clear brand identity and value proposition.

Long-term real estate investment, particularly buy-and-hold strategies, is often more rewarding than flipping.

THE FUTURE OF CONTENT AND BRAND BUILDING

Ryan Serhant emphasizes the growing importance of platforms like YouTube for building brand awareness and a dedicated audience. Unlike traditional TV, YouTube offers direct engagement and an alert system for followers. He sees it as the future of content consumption, especially for younger generations who increasingly rely on streaming services and online videos. This proactive approach to content creation is about future-proofing his brand and reaching a massive audience by establishing a presence where people are already spending their time.

FROM ACTING ASPIRATIONS TO REAL ESTATE REALITY

Serhant's journey into real estate was unconventional, stemming from a background in acting and modeling. Running out of money in 2008, a friend suggested getting a real estate license as a practical way to earn income, contrasting it with less sustainable service jobs. The initial appeal was the potential for significant commission from a single rental deal, even if it was a modest amount. This pivot marked the beginning of his real estate career, driven by necessity and the perceived opportunity to create income from his own efforts.

THE POWER OF HUMILITY AND SHAMELESS HUSTLE

In the early years, Serhant and others like him were "shameless" and "hungry," taking on rental deals and difficult clients that more established agents avoided. This willingness to do smaller deals, like $2,000 a month rentals, was crucial for survival and building experience. He contrasts this with seasoned agents who may resist returning to smaller deals. This relentless pursuit of any available business, combined with leveraging his youth as an advantage by promising unparalleled dedication, allowed him to gain traction when the market was challenging, like post-Lehman Brothers bankruptcy.

BUILDING MOMENTUM THROUGH STRATEGIC SCALING

Serhant's approach to scaling involved a deliberate strategy of "success begets success." He focused on exclusively promoting and working with clients at the highest price point he had achieved, gradually pushing his price ceiling upwards. This meant that after doing $2,000/month rentals, he'd leverage those connections for $2,500/month rentals, and so on. By consistently communicating his capabilities at each new tier, he attracted clients in that same bracket, slowly moving from rentals to sales and increasing his deal value over time.

THE ESSENTIAL TRAITS FOR REAL ESTATE SUCCESS

Key characteristics for success in real estate, according to Serhant, include empathy, energy, and enthusiasm. Agents must be able to connect with clients on an emotional level through both good and bad times. High energy and a positive, enthusiastic outlook are vital for maintaining momentum in a demanding sales environment. He also stresses the importance of endurance, as agents will inevitably lose deals. Ultimately, genuine enjoyment of the sales process and interacting with people is more sustainable than solely focusing on the potential financial rewards of large transactions.

THE "GRAD SCHOOL" APPROACH TO CAREER DEVELOPMENT

For new agents, Serhant advocates treating the first three years as "grad school." This means prioritizing learning and gaining experience over maximizing immediate income. He suggests working for established agents, becoming an assistant, or interning to learn the ropes. This approach mirrors that of lawyers or doctors who invest years in education before earning substantial salaries. It requires a willingness to work for free or at a lower initial compensation, focusing on understanding the business, client interaction, and sales techniques.

ADVICE FOR NEW AGENTS AND COMMON PITFALLS

Serhant's primary advice for aspiring agents is to find the best agent in their market and work for them, even if unpaid initially. If working for free isn't feasible, securing a side job for financial stability is recommended. He also cautions against common pitfalls like not taking the career seriously, not learning from others, and struggling with rejection. Many agents fail because they expect immediate success without understanding the hard work involved or because they cannot handle the inherent ups and downs of a commission-based sales career.

LONG-TERM INVESTMENT VERSUS SHORT-TERM GAMING

When it comes to personal investment, Serhant favors a buy-and-hold strategy, especially in a challenging market like New York City where flipping is difficult. He notes that many clients express regret over selling properties too early, rather than regretting holding onto them. The emphasis is on holding properties long-term, leveraging them correctly, securing good tenants, and maintaining them, as urban real estate typically appreciates significantly over decades. This long-term perspective aligns with the wealth-building strategies of many successful property owners.

STRATEGIES FOR EARLY CAREER GROWTH

A critical aspect of early growth for real estate agents is how they handle their first deals. Serhant advises against focusing solely on small rental deals and instead strategically leveraging them to move up. For instance, after completing a $2,000/month rental, the agent should aim to secure referrals for $2,500/month rentals. This incremental approach ensures clients and referrals align with the agent's increasing capabilities and aspirations, preventing stagnation and paving the way for larger, more lucrative transactions.

HONESTY AND RESILIENCE IN SALES

Serhant credits his parents' brutal honesty for his resilience. Being told he was bad at certain sports, while initially painful, prevented him from wasting time on activities where he lacked aptitude. This honesty is crucial in sales careers where many people are falsely told they are great at everything. Agents who cannot accept rejection or face their limitations are more likely to fail. True success comes from trying many things, understanding one's strengths and weaknesses, and persevering through inevitable setbacks.

FUTURE ASPIRATIONS AND WORLD DOMINATION

Looking ahead, Serhant plans significant expansion beyond New York City, aiming for "world domination" in real estate. This involves establishing a presence in multiple markets and managing diverse offices, a feat he wishes to achieve in a way no one else has. While he contemplates opening his own brokerage, he currently sees his primary value as a salesperson, focusing on selling developments and resales. He acknowledges that owning a brokerage involves significant management responsibilities that would pull him away from client-facing sales activities.

Mentioned in This Episode

●Software & Apps

●Companies

●Organizations

●People Referenced

Real Estate Sales Blueprint

Practical takeaways from this episode

Do This

Develop empathy, energy, and enthusiasm.

Embrace endurance and enthusiasm for life and the business.

Work for the best agent in your market, even for free initially.

Treat the first three years as'grad school,' focusing on learning.

Consider working as an assistant or intern to learn the ropes.

Be relentlessly proactive: never be late, stay late, take initiative.

Always communicate your successes loudly and clearly.

Buy real estate with the long-term expectation of holding it for decades.

Focus on deals within your current price point to gradually scale.

Build your network by leveraging existing clients' friends and contacts.

Avoid This

Don't expect to make a lot of money in the first three years.

Don't try to jump directly into the highest price points without experience.

Don't rely solely on posting ads online; actively seek opportunities.

Don't avoid difficult clients or small deals, especially early on.

Don't focus only on the commission amount; enjoy the process.

Don't neglect to tell people about your successes.

Don't be afraid to work for free or take a lower salary to learn.

Don't solely invest in speculative flips; prioritize buy-and-hold strategies.

Don't be dishonest with yourself about your strengths and weaknesses.

Common Questions

Ryan Serhant initially pursued acting in New York City but ran out of money in 2008. A friend advised him to get a real estate license, seeing it as a more stable path than bartending or waiting tables.