The expansion model in real estate is one that many teams fail at, even when they are really strong in their original market. What are some of the reasons expansions don’t work out, and how can we prevent those issues? How do we choose the right area to expand in? How do we staff our expansion teams, especially when it comes to the leadership? On this episode, Brandon Landro shares how his team is crushing their expansion, and the pieces they’ve put in place to make it work.
It’s our job to build the systems to allow them to be successful. If you don’t have the resources or the time, you are not doing your part. -Brandon Landro
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Three Things We Learned From This Episode
How to choose the right expansion market
If you’re looking to expand, consider a market you can drive to, not somewhere that requires a flight. You’ll understand how things work and can quickly get there in the event of a crisis. The branding can step in and answer every single question in a market that’s still local, whereas in a market that’s far away, you just won’t know the contractual information, and no amount of branding will be able to make up for that.
Why you need to expand from a position of strength
When you’re expanding into another market, remember to continue to do business in the market you’re in because that market is feeding the expansion one. You’re not going to make money in your new market immediately, so your original business has to be strong enough to support the expansion.
The wrong point to step out of production
Many people say they want to step out of production way too early, when their transactions are still the bulk of the team’s production. If you step out too early, we’ll end up weakening or even destroying the team.
Expansion isn’t something to do on a whim— certain conditions have to be present in order for it to succeed. There has to be an opportunity for it, and you have to have a running well-oiled machine running already. If you’re making mistakes in your current market, they will be carried over into the next one, and if you’re doing well that will carry over too. It’s a lot easier to build from a center of strength. The fruits of a good expansion is market dominance, and the perception that you’re everywhere which will attract both clients and agents to our teams.