Dave Zajdzinski, a real estate professional with 20 years of experience and over 1,500 homes sold, discusses his innovative business model that leverages virtual assistants to enhance profitability. He highlights his 2023 net profit of 84% and a cost of sale under 4%, contrasting it with traditional team models that often result in high outsourcing costs. Dave's approach involves using virtual assistants to manage client communication and appointments, allowing him to maintain a personal touch while scaling his business. He also shares his success with a new investment strategy called "pad splits," which involves converting homes into multiple-room rentals for higher returns.

Transcript

https://otter.ai/u/gXtFvghlAg63rxxMRZ_qJPNbUwk?view=transcript

Action Items

• Ask Dave about his lead sources and where he finds his virtual assistants, as well as how he trains them.
• Discuss with Dave how he overcame the limiting belief of conducting meetings virtually vs. in person.
• Inquire with Dave about his strategies for exit planning and long-term wealth building, such as the pad split properties he has invested in.

Decisions Made

• Dave decided to abandon the traditional team model for a more profitable approach.
• He chose to take responsibility for production himself, leveraging virtual assistants in the Philippines.
• Dave opted to maintain client relationships virtually, reducing the need for in-person meetings.
• He decided to implement a showing agent model for property viewings.

Issues & Risks

• The traditional real estate team model has low profitability due to high agent splits.
• Rainmaker's personal production hides flaws in the traditional team model.
• Typical real estate teams outsource time for 75% to 90% of hourly rate, reducing profitability.
• Many team leaders struggle with profitability despite high sales volume.
• Some real estate agents are losing their right to operate Airbnbs in certain areas.

Next steps

• Dave will attend the spring mastermind in 2025 to share his strategies.
• Dave will be available to discuss his lead sources and VA management at the mastermind.
• Dave is seeking advice on exit strategies and asset management at the mastermind.
• Frank mentioned he needs to review Dave's blog created by Vyral.

Questions discussed

• How long has Dave been selling real estate?
• Why didn't the traditional team model work out for Dave?
• What was Dave's net profit and cost of sale in 2023?
• How does Dave's virtual assistant model work?
• What does Dave want to know more about for exit strategies?

Timeline

• Dave will attend the spring mastermind coming up in 2025.
• Dave is in his 20th year of selling real estate.
• Dave started his current business model with salaried people six years ago.

Outline

Dave Zajdzinski's Introduction and Background

• Frank Klesitz introduces Dave Zajdzinski, highlighting his upcoming appearance at the Spring Mastermind in 2025.
• Dave shares his background, mentioning he has been in real estate for 20 years and has sold approximately 1,500 homes.
• Dave clarifies that his 16 years of resale business is the primary focus, excluding his initial four years of new home sales.
• Frank acknowledges Dave's familiarity with building a team and the challenges he faced with the traditional team model.

Challenges with the Traditional Team Model

• Dave explains that the profitability of a traditional real estate team is reversed, with agents outsourcing time at a high cost.
• He highlights the issue of splits, where agents only see about 15% of their earnings due to high agent splits.
• Frank summarizes that Dave decided to abandon the traditional team model and focus on leveraging virtual assistants in the Philippines.
• Dave shares his 2023 net profit of 84% and a cost of sale under 4%, emphasizing the efficiency of his new model.

Dave's New Business Model and Profitability

• Dave describes his hybrid approach, involving a dozen agents as a separate team from the Dave Z Home Team.
• He explains the importance of segregating expenses to understand profitability better, using a software tool for agents.
• Dave uses an analogy of a grocery store chain to illustrate the challenges of subsidizing losing businesses within a team.
• He shares an exercise to help agents understand the financial implications of their business model.

Utilizing Virtual Assistants and Technology

• Frank outlines Dave's business model, which involves virtual assistants following up on leads and conducting Zoom meetings with buyers.
• Dave elaborates on the use of virtual assistants to manage communication and maintain a personal connection with clients.
• He emphasizes the importance of branding and maintaining a direct relationship with clients, even when using virtual assistants.
• Frank and Dave discuss the cultural shift towards Zoom meetings post-Covid and the benefits of data-driven presentations.

Overcoming Limiting Beliefs and Adapting to Change

• Frank and Dave discuss the initial challenges of adopting virtual meetings and the cultural acceptance of Zoom.
• Dave shares his experience of transitioning to virtual meetings and the benefits of presenting data and market insights.
• He recounts a recent escrow experience where he closed a deal without meeting the client in person, highlighting the effectiveness of his model.
• Frank praises Dave's ability to earn his fee and adapt to the changing market conditions.

Dave's Exit Strategies and Long-Term Wealth Building

• Frank asks Dave about his interests and areas he would like to discuss at the mastermind.
• Dave mentions his interest in exit strategies, particularly pad splits, where he converts four-bedroom homes into eight-bedroom homes for rent by the room.
• He explains the financial benefits of pad splits, including high occupancy rates and cash flow.
• Dave shares his experience with Airbnb and the challenges faced by others, emphasizing the stability of pad splits.

Dave's Model and Its Implementation

• Frank summarizes Dave's model as a professional firm with junior and senior agents, similar to a law firm.
• He highlights the importance of leveraging technology and virtual assistants to maintain profitability.
• Dave shares his excitement about sharing his model at the mastermind and the positive feedback he has received.
• Frank encourages attendees to engage with Dave and learn from his experience and strategies.

Dave's Blog and Resources

• Frank mentions that Dave has hired Vyral to create a blog for him, which is now live.
• Dave shares the URL for his blog, leverageagent.org, and expresses his satisfaction with the work done by Vyral.
• Frank and Dave discuss the resources available on the blog, including standard operating procedures and virtual assistant training.
• Dave emphasizes the importance of having virtual assistants to manage a high volume of sales and maintain a manageable workload.

Final Thoughts and Excitement for the Mastermind

• Frank expresses his excitement for Dave to share his model and strategies at the mastermind in San Diego.
• Dave reiterates his commitment to helping other agents and sharing his knowledge and resources.
• Frank thanks Dave for joining the podcast and looks forward to their upcoming meeting.
• Dave expresses his readiness to share his insights and help other agents improve their businesses.