Get a taste of a long and successful career in Real Estate from Johnny’s mentor, Jim Flaum.
They discuss his vast range of experiences in real estate from selling, managing and running an entire company.
Get insights into how Jim accomplished his goals of making others successful and how he surrounded himself around the right people from so many different backgrounds and walks of life.
They discuss real estate’s transition into technological solutions and what it means for the business at large.
Other topics include what makes salespeople great, the commonalities and the ultimate success in the business.
Transcript
S3E7
Johnny Pfeiffer: [:With this comes a new year in a new direction in our. Well, we have explored the details of the current market and how it has shifted from the past couple of years. I thought it might be fun for you, all of our listeners to hear a little bit about the HA past and the history of real estate to do so.
al Estate because we had the [:So Jim, I just would love to welcome you to the show today. Thank you so much for joining us. Hey, thanks for including me. . Absolutely. We are so excited to have you on air today and so excited that our listeners get a chance to learn from you and kind of hear your wisdom and great words and commentary on the history of real estate.
got started in real estate in:ile I figured out, gee, I, I [:And, um, then, uh, in about:y with East West partners in [:In different areas, different stages In your career from selling to managing to running an entire company, do you feel like, what was your favorite part of that entire history you just shared with us? Well, one of the things was funding When being involved in development business and, uh, working on planned communities, we, uh, did a.
d, but to take that piece of [:Oh, that had an eagle living in the middle of it. . Oh, really? Okay. . That's another story. We, we, we, we created 40 acres of green space around that eagle to protect him, and it turned out he could care less. He used to land in trees next to where houses were being , get a kick outta all the activities. And he, he didn't really need the 40 acres, but that was about a $3 million.
Green space we created for him. And that was back then . That was back then about 15 million now. Yeah. It, it was fun to take a piece of land and then see it get developed and all of a sudden families living there and, you know, we ended up with, um, 5,000 homes there, uh, golf course community, and a million square feet of commercial.
that was, that was fun. And [:They're gonna list with them and buy from them, and they find out, , you know, the first year it's not quite as easy as it. , but then, uh, the ones that stick it out and uh, do the right things. end up having a, a pretty amazing career. A lot of people, you know, just to see them change their lives with, with what they can accomplish in real estate's been been exciting for me over the years.
listen to get with the right [:Would you say given you ran one of the most iconic and. Today, most successful companies in real estate nationwide, you're in, you know, real estate trends in the top 100 and expanded across the state of Colorado throughout several luxury markets. Is it about the brokers? Is it about the company? How did that success happen for them and for the company overall?
I, I think it's a combination of both, you know, , you know, especially the, the folks coming that are new in the business, they, they need to support and they need to be surrounded with successful people that are making things happen. And that they, they see the success and they say, oh geez, well I, I could do that.
a company is, is important. [:When they wake up in the morning, uh, how are they gonna build that company of theirs? And then we had a big umbrella to help them do that through marketing and all the other things so forth. And so that, that's, I think it's a combination of both to be successful for the company and for the individual brokers of that.
I agree a hundred percent. And Jim, what's interesting to me, we have a broad list of listeners. We have, uh, everyone from, they're considering getting in the business. They're brand new to, they've been in it 25 years. I get a lot of comments and chats and questions after the podcasts episode is over. And it's always consistently, what can I do best?
ve for you to share with our [:Is that correct? Yeah, that that's correct. . Yeah. So my first folks came from, uh, they were, uh, Navy Seals with Seal T one outta Coronado, and several of them were just coming back from two tours in Vietnam, uh, back in those days. And, um, got them involved in real estate and, um, it, it just, it was amazing. Now, these were enlisted people in the Navy.
say, Jim, were they shy and [:offend somebody by asking for their order, and they might sell them something, God forbid. Okay. . But, but, um, but anyway, so yeah, so that, that was, that was interesting for me. But talk about people from different backgrounds and, and like even in Sniper Smith and Forton, out of our 160 brokers, if you just profiled all those folks, that there was so many different, different people, different walks of life and different, uh, different personalities.
people trusted them because [:And the people. Would realize that and trust them, those are the best brokers. Absolutely. And I think the key to that is, is the training and the experience that companies like a lifer Smith and Frampton can provide to agents. Because at the end of the day, people by real estate, from their real estate broker, not from the company.
but the company is paramount in ensuring the real estate broker can successfully, honestly, and finish it to the end and do it well and take care of their clients. I think that's the key formula. Yeah, and what fascinates me is so many of our listeners, I hear from people who have. You know, their attorneys or their accountants or their housewives or, I've just, I hear from everyone and I think they're gonna enjoy the Navy Seal story for sure, because definitely you wouldn't align that in your head.
lways say on these podcasts. [:It's hard to believe when I started with life where I was only 31, but we, back in the day when I first started in real estate, we had books. That was the. And we would all photocopy pages and try to go show real estate from a book. You know, you have seen the evolution of real estate with computers, the internet, MLSs emails to today we're doing a podcast that's gonna reach worldwide via our computers.
one of the things that, that [:I'm dating myself, , tell I'm an old guy. So, but, um, you know, what we did in real estate then and how we did it and now how we do real estate now with computers and, um, where we. send contracts to DocuSign. I can remember Southern California, our brokers driving two or three hours up to Los Angeles to get paper signed, uh, contracts signed where, where now we would do that in, in 30 seconds through DocuSign, things like that.
u go out, you meet somebody, [:You talk about what you can do for them. either list their house or sell their house or show them property. And you know, granted, all technology helps all that now with the MLS and so forth. But the really basic things that make great real estate brokers, most of 'em are great technology people. No, no , great relationship building people.
And, and they're, they're salespeople. You know, I, I get a kick out, ask them what, what business and. Well, I, I, I'm an, I'm a, I'm a realtor. You're a realtor. Well, oh, I thought you were a salesperson. Oh, yeah. I'm a salesperson too. Yeah. That, that helps. . . Well, Jim, one of the things you taught me very early on, I can remember very well, it's okay when you're putting people in your car to sell 'em something cuz they know that's your.
salespeople. I'm not a pushy [:And, and yet they're being closed like with a sludge. , but they don't feel it at all. Those are really great salespeople, and once again, it works because they're only selling what they really believe in some of our, our best salespeople, they would show up property and then people say, oh, geez, I think that's good.
I think that's what we gotta buy in, in a Scotty scale and say, no, that is not what you guys should buy. And they go, what are you talking about? And say, and he say this, this, and that. So don't buy it. . And then two or three months later he'd call 'em up. When he found a property he really was excited about, knew it was right for them, he'd say, now this is what you should buy.
lized that he was absolutely [:Absolutely. And I wanna drive home. This topic has come up in previous episodes. What I want to drive home to our listeners that Jim just shared with us, the commonality in successful real estate people is, as Jim said, relationships, but it's sincerity and it's not about the. . It's not about that one deal in that moment.
ients to refer everyone else [:And I think that's the key to success in real estate. Don't you agree? Oh, yeah. And, and think about when you get a prospect, if it's someone that was referred to you, it, it starts out so much better. So much trusting where someone like will walk into one of our real estate offices, which we, we do still get a lot of those because we have key retail locations in the Mayo Valley.
But, and people are so excited about a new walk-in they just had, and I said, guys, you could get, go through your book of business, make 16 calls, and come up with one of your clients that are ready to buy another piece of property faster than you ever sell that new walk-in. But they're so excited about the.
Get excited about the people you already have. That's where your next deal's coming from in Jim. That's where the one piece of technology today has changed. With our CRMs and our customer database management systems, we have an opportunity to stay in touch with our sphere. Better than we ever have.
Easier than we [:a newsletter that goes out to:You know, that covers:Absolutely. But some follow up is just different follow up and, and much more efficient follow up because of technology. Well, and Jim, with that, that was a profound statement earlier. You're the first person to make a statement like this on one of our episodes over all the years of real. . It's changed in so many ways, but the fundamentals have not changed.
It's a people business. It will always be a people business. And right now we're all looking at this market. We're seeing the influx of news and the media and negativity and such. Where, what do you feel about the current state of the market? What are your thoughts? Cuz you and I both know the entire world.
[:So I was just had lunch with somebody. Uh, one of our very best clients in the company is a, a custom home builder and, and, uh, we sell like, uh, 15 to 20 million. Uh, homes that he's built over the years. And, uh, he said, Jim, so what do you think about the market? I said, well, uh, the market right now, I have nothing to compare it to.
In 50 years, we've never had the situation like a covid come along. And, uh, we know that changed the world, changed lots of things, including the real estate market. So we have to say, okay, this used to happen, then this would happen. Well, we can't say that anymore. So we really, all bets are off. What's going to happen in the market?
do know long term, I pretty [:The stock market's out there, that's a big factor for real estate. When the stock market's doing. , certain things happen. Real estate when stock market's not doing good, you know, so that's, that's at play. But when you look at long term, the charts and graphs of real estate over the last a hundred years in this country, it's supply and demand and real estate is always gonna be in demand.
It's the basis of all wealth. And so the market's gonna be. Will there be up and downs in the market? Yes, there will be. But in the brokerage business, I mean, if you're in development business, that's what you really gotta worry about. UPS and downs, brokerage business, you can make money in down markets.
ney in up markets, you know, [:n my career in real estate in:d say, yeah, we all know what:And Jim, I think the key to this is, is one, accepting the up and down. But wouldn't you also say what's so important for the current generation of realtors who've enjoyed this? Boom, we've had save some of that . Prepare for the rainy day . Yeah, I've watched that over the years where realtors, you know, in the good times, they do make a lot of money.
And the, the one thing that you always have to be, make sure you're , make sure you're putting your, uh, estimated tax away for the i r s . Uh, that's time. Some brokers over the years where they, they just lost control of that. But then also, You know, make sure you're saving your money or investing in real estate yourself.
uld just encourage anyone to [:That, that's where you'll made your money. Well, and Jim, this is something, yet again, I, my, my favorite thing about these podcasts is there's always new takeaways for everybody, including myself in these. And you're the first person to mention to the agents listening, invest in real estate yourself. It isn't just about your clients build your own wealth.
What was the story? It was years ago you told me what people could buy lots on, on Mill Creek in Vail Village. Yeah. And then what they're worth today for the land . Yeah. Well, I'll give you one, one of the most exciting real estate stories of the Veil Valley, and I don't think that particular opportunity is out there, but who knows?
investors in Vail, they were [:But anyway, those investors. also had the option of buying one of the lots that the company was developing. And uh, there was this area called Mill Creek Circle. It had 19 lots, but if you bought one of those lots, you had to, uh, to uh, guarantee that you would start a house in the next 12 months, cuz they, there was nothing here that it was cheap.
. Okay. Okay. and I [:They're tearing down the houses. You could sell that lot for 25 million . Just so $1,000 turned into 25 million. Um, granted it took. 60 years, but still, I, you know, a lot of people would wait 60 years to turn a thousand into 25 million. Absolutely. And, and I, it's one of my most favorite and most fascinating stories in real estate to me.
ncial future. I think that's [:Wouldn't you agree? I I would you, there's one other thing I'll throw out there for your audience, and I, I don't want to get into details. You can Google it, look it up yourself, but I think one of the greatest. , uh, retirement things out there for, for independent contractors like you folks, is a program called Defined Benefit Plan.
It, you, you can put, if you're doing well in real estate, you can put, uh, as much as like 200,000 a year tax free into that plan, or 50,000 or a hundred thousand, uh, and. . So that's something I would look into of creating a defined benefit plan for, for yourself, uh, in real estate. Well, and I think that's one of the things to this point, I wanna drive home to our listeners.
a business. As Jim said much [:And I don't know if a lot of agents run their business. Like a business, but I think it's a good point to drive home for sure. Well, everyone, I, I always say this at the end of every episode. I can't believe it's already been 30 minutes. I, I could talk to Jim for four hours as he knows. I've talked to Xer off for many years.
But Jim, I just, I can't thank you enough for coming on the show and you're insight and anything else you want to share with our listeners before we wrap up? Yes. There's, there's one other thing I'd like to leave. Which I think is the most important thing in, in any endeavor, real estate, just your life in general is it's so important to set goals and you hear all that and they all the books out on that.
But believe me, [:Just not real estate, but your personal life, your marriage with your kids, everything. It's, it's an amazing phenomen. I'll leave you with that one. Well, y'all, you heard it here first, so y'all ask me all the time. I get messages from people. Johnny, what's the silver bullet? You just got it from Jim Flom . You just got it.
ing Fork Valley and the Veil [:Uh, Jim, thank you so much for coming today. Thank you for joining us today for the Brokerage Insider, and we ask all of our listeners to stay tuned for our next episode when we will be bringing you more exciting news and insight from the real estate industry. Please listen to us everywhere. You're able to listen to your podcast and they are always available on our tribu website@tribu.com.
Have a great day everyone.
