Ten reasons why I chose insurance versus real estate once I chose to leave the United States Marine Corps after eight years on active duty...
I needed to quickly find a way to replace the income in lifestyles providing my kids while in the military I grossly underestimated the job opportunities with the basics because I had while in the military with no college degree even if it did choose to go to college is still take me three to four years to realize the possible potential of doing so
so the scenarios presented with how do I make money now how do I make sure that I can translate myself from being a helicopter crew chief and a door gunner and translate those skills onto a resume for managers say you're hired at least at a decent paying job plus I didn't have any money to start a traditional business or let alone have the patience to sit in a classroom for years plus in less than six months my cash flow my income from the military would be cut off from a lifestyle I was accustomed to for almost a decade so I was presented with three choices
number one consider being a real estate agent number two consider being a loan officer for a mortgage company right across the street from the base or number three consider being an insurance agent in this video I'm going to share with you my ten reasons why I chose the insurance industry over real estate and if I had to make the decision all over again I would do it the same way here's why so stay tuned
where's cracking everybody money-smart guy maps of Paulo here handing to you from the value
Taemin Studios here in Addison Texas so let's get right into it
number one it's simple understanding the nuances of insurance was much more simple to understand than the different deals that will go down in real estate for example how to ten people how many people right now out of ten people will be prone to buy life insurance versus people ready right now to purchase real estate would to be less people to buy life insurance or more people to buy life insurance would to be more people to buy real estate right now assuming that the qualified and got the credit score afford and approved by a mortgage company to go shopping with the money or would they be more prone to to sit in wait for six months would I realize that in real estate there are so many variables to anticipate and so much more field training would have to go into learning how to become a successful real estate agent plus and real estate there are so many more emotional layers about purchasing the biggest thing you've ever had in your entire life or selling the home that you have so many emotional nails attached to holding you back from making a decision
number two is speed listen in real estate there are so many steps 1 2 3 4 in so many different conditions that can pop up even a client today says man I'm approved I got the right credit score I get down I got the down payment the mortgage companies rarely finance my deal even then at best case scenario is gonna take anywhere from 30 45 days to close in a piece of property as a real estate agent I need to pay bills now I don't wanna make money two months later to retroactively pay my bills from a month ago see the flipside then in life insurance it's only one or two sit down listen what do you got where are your exposures at is this something you want to fix once you get to know your clients and once you get to know their needs its simple let's flip it open a laptop feeling an electronic application with some insurance carriers today it's automatically approved what does that mean for you as an insurance agent as soon as the clients get approved the policy gets enforced you get paid not at its 30 45 60 90 day deal in insurance you get paid within one or two weeks of you closing that insurance policy number 3 saturation listen I really appreciate HGTV to bring to light how awesome it is to be either a realtor or a real estate investor or even an interior designer or anything that's really simple
the real estate community they've made it so sexy to be a real estate agent or real estate investor the challenge with the big flood people entering the real estate energy they think a flip or fix or purchase or a sale happens within 30 minutes no it doesn't you see in those 30 minute shows its weeks upon weeks upon weeks of recording filling
trial-and-error negotiations deal busting deal breaking deal mending make that transaction go through and that's what a lot of people don't realize watching these real estate type of shows any real estate agents or any real set investor will tell you that it takes a lot of work with so many different unexpected scenarios that come up that you got to put the fire out and with all these real estate agents crowding the marketplace guess what happens nobody's paying to this Lilin insurance industry this trillion dollar industry known as life insurance and retirement planning nobody's paying attention to it and just to give you some context the insurance industry based on the limo study the entire industry has about a hundred fifty thousand insurance agents contrast that to how many real estate ages are just in California law there's just about as many real estate agents just in California as there are insurance agents in the entire national industry ain't that something and here's the challenge because of the lack of people inside the insurance industry there's a lack of life insurance actually helping people in the community and what's the example of that with example of because people don't have sufficient life insurance coverage because then I have this conversation and in daily basis or in a generational basis guess what happens when people fall into financial crisis instead of leaning on their life insurance policy as they did maybe 40 50 years ago people are leaning on GoFundMe are you kidding me check out the need for life insurance ages in a marketplace look how many life insurance claims look how many life insurance pages for a gofundme around look how many medical expense GoFundMe pages are around look how many disability health care expenses GoFundMe pages exist today that is crazy and the big epidemic is people aren't having a conversation with an insurance agent annuity why there's just not enough agents in the marketplace and here's the scenario too as well other 150,000 agents in the insurance energy I just mentioned you know their average age is it's 60 and guess what's gonna happen the next three four five years they're probably going to retire they've done a whole 20 30 40 years of
a successful career in the insurance industry now they're retiring here's a problem there's gonna be a vacuum inter
and at that point where people get their life insurance, we're gonna people have a conversation with the retirement lining you see in that problem therein lies the true opportunity you wanna be saturated or you wanna be unique your choice number four is solutions listen as a real estate agent I know you provide housing I know you're helping people provide their piece of the American Dream through the purchase of real estate I totally get it
but here's a question for you as a realtor as a person is generating business for your family for your business as generate revenue from real estate sales what's the next time you're really gonna see that family they just help them buy the home six months or now nope a year from now nope how about four to five years and we're from three four five to six-seven years is when the family says you know what let's upgrade let's move let's transition then you as an opportunist some that you kept in contact with them have the
opportunity to list the same properties you just saw them years ago meanwhile who's been in there you meanwhile had they moved you as a person in the real estate life with somebody else are they sitting everybody else's billboard everybody else is an advertisement for therefore so, therefore, they can get their listing through them are they shopping you around now here's the thing with insurance every six months usually things in people's lives change what am I talking about new job
new car new home no kid marriage divorce so many different things can happen every six months in a family's financial life so you as a life insurance agent can be more readily available to them and be in front of the face and not only address their needs every six months but you become very close in terms your relationship with that family so, therefore, the next time money comes up the subject about retirement subbies about insurance coverage subject making sure their assets are protected they're gonna be thinking about you now do you see the long arc of financial solutions you can provide a typical family that has moved into a home and with that being said do you realize that the insurance energy is also a passive income industry too as well that's right once you establish solutions for clients and establish a book of business his loans is paying the premium instead of policies at a monthly basis you get paid
number five is the scale you can start off as an agent but come off as a real estate agent to a real estate broker where you're now recruiting
employing many real-estate associates on your team inside your real estate brokerage and usually, that's the attraction for people to progress from being a real estate agent to becoming a real estate broker because there are diversified our income and when they recruit and build a team yes
well guess what so can an insurance agent and insurance agent can start from an insurance agent start getting subtraction start building your team and start building their agency from day one unlike the real estate agents a life insurance agent doesn't need to get a special license to be a life insurance broker I know a lot of real estate agents once they progress to becoming a real estate broker they have to get another license in addition some of the states require them to have more liquid cash deposits in their bank before they get issued a real estate brokerage license that situation is not the same in the life insurance industry where an agent can gravitate to become a life insurance broker and have multiple agent working in their agency and there's no special licensing or capital requirement necessary by the regulators or the state and plus back to number one due to the simplicity of the insurance industry in the insurance products that you can teach your agent to sell your agent base can grow that much faster all right six reason stress
listen there are so many real estate agents I talked to that in the middle of a birthday party on the weekend in the middle of a family gathering I get together a wedding an anniversary celebration a client calls him at one o'clock in the afternoon and on a Saturday hey ring ring ring mister real estate agent call me up right now why I want to see the house that you listed and the realtor is like I'm in the middle of a birthday party I'm in the middle I'm standing up in a wedding and their thought process if I don't get out of this situation right now and show that property and be there for a potential client to open the door to around the house I might lose that deal and there are so many honorable real estate agents did I know that
honestly pull up so many different options on an MLS provide that package to the client go on tours to go see the different pieces of profits available on the MLS for purchase do a lot of legwork drive around God's country through traffic going through this house to this house open house tours this and the client changes their mind
no deal no cash knowing
come to no revenue a big waste of time that is stressful when you got to pay the bills and support your family what's the flip side to insurance listen to the life of it insurance agents it's so much more simple
listen if traffic is a problem no problem flip up your laptop call them on the phone
go on videoconference zoom GoToMeeting Facebook video whatever the case may be google hangouts sit down to client they're in the in downtown you're out in the suburbs to have a conversation with them boom you get the needs analysis done boom provide them some solutions boom show them some options boom you can transact business online through e applications through email
correspondence no fighting through traffic no unnecessary hours on the road no haggling over clients over thousand dollars here or $5,000 or $10,000 here you can get business done online on the phone conveniently in your home or office and that is a big stress reducer and that's why I chose to be in the insurance industry
and a big reason why is because I was a single father I tested in my kids I had to drop off my kids at a certain time I'd pick them up at a certain time how to make sure we did homework and church activities in the evening whatever martial arts activity is doing I couldn't be controlled by a client wants to see the property now and I'm
unavailable I've other responsibilities to do I want to be in a business where I ran my business and my business wasn't running me
number seven is the cost to start up your business as a real estate agent can cost anywhere between five hundred a thousand two thousand three thousand dollars just based on who the pre-licensing provider is for your real estate license the same license on the insurance industry instead of costing a thousand two thousand dollars is less than five hundred dollars at least in the state of Illinois and some cheaper like Texas Florida in California a lot less expensive and in addition to that the insurance exam compared to the real estate exam listen I've seen people study for months
to get the real estate license and I've seen guys in the insurance industry study on a Saturday sitting in the classroom on that Saturday the following Friday six days later pass the exam it's a very simple lesson 150 questions in motion most states you need is seventy percent to pass in addition to that in terms of cost what's the cost for you to expand your real estate practice what's the cost for you to expand your insurance practice
what's the cost for you to expand opportunities and in terms of business development and getting people to call your phone getting people to know you as a person your local community to do this remember back to saturation you're fighting with a lot of people in your industry as a real estate agent and a lot of people don't realize there's a lot of the insurance agents to provide a lot of value there's just again just not enough of us in this entire industry and so therefore the overall cost to running a real estate operation versus an insurance operation is much less number eight here's a big one compensation well Matt I'm attracted to the real estate industry because I see these guys sell property and they make buku money they make tons of money when they sell one two three four five properties cool well let's take a look at a couple real estate ages that we've recruited into the insurance industry and I'll let them tell you what their experience was from transitions from the real estate industry and the Commission's they've been making in the income they've been making inside the insurance industry first one is Richard Welch based out of Atlanta who's a six-figure earner with us the other one is Danny sinks him out of San Mateo California also a
six-figure income earner let's cut to them and see what they have to say about commissions in a real estate industry versus the insurance industry I'm gonna talk I'm really gonna hold it on the Commission card or basically the money part show me the money but I wanna make sure that I go through these numbers so you'll understand how we get to those numbers okay so right now in order to factor that in we're talking about that average sales in the market so my market anywhere from 8 to 16 sales per year we're talking most realtors um do a little bit more so most a little bit less average Commission and our and our market here in Georgia is about 5k that's bigger broker fees or whatever and enough so you're looking at those numbers you're talking 40 to 80 km that's on average okay and then average time spent to close one of those properties and then we're talking 30 to 90
right so let's talk about the issue as a mission assurance of mining industry and let's just work the numbers here you 8 to 16 here 6 to 12 per month, okay and that's my personal pair that's me just personally going out in generating Mundo but I'm also blessed with the
opportunity here to have a team of Ages to work with me and they're doing about 30 to 60 per month themselves so when I'm looking at the cases and the Commission per case myself personally I'm generating about $1,500 per case in finishes personally as 9 to 18 a per month as a my team of course they're doing my override or I'll say my spread my broker spread it's about 25 percent so 25 percent of 1500 375 and that's per case so you're talking eight even or from 11 to 22 taken one or 40k from one solo and right here in the 30s in 90 days I've even spent longer than that six months to a year with some clients you took it one to three days here here if I'm not working I'm not eating right if I'm not working with my family my bills are not paid so when the phone rings I have to get up and go here my wife and I will go on vacation and our team still generates eleven to twenty two cakes a month while we're on vacation so what's so great about it is that I have a business here here I have a job bought myself a job I am what they consider to be self-employed but here I'm a business owner
and that's a big difference if you're familiar with the cash flow quadrant to go from self-employed to the business owner it's very difficult but the easiest way to do that is with the team I'm blessed to have that and I might think about the growth of both of these industries this one is more linear just basically means it's real steady and it's not a lot of growth right it's just staying here is
exponential because as my team grows so does my income but guess what doesn't grow because I help people open up offices
I don't carry the expenses of their offices so I have a teak anything and have a lot of expenses here I have very few expenses I only pay for the office that I have here now for rather Georgia I was a cop for 19 years I was actually doing real estate on the side okay everyone seemed like they were doing real estate on the side when I get their license and make a couple dollars and you know me like everyone else I thought wannabe millionaire selling to all my friends and family and I thought gosh maybe I can meet some clients things like that but here's the thing I was chasing people I don't know about you guys but I just hate chasing people here's the thing when I stopped working the money would stop coming in and that was a big problem guys right because if you're in real estate by the way I love real estate okay it's just you got to look at the platform on how income is hurt and if your income is earned and it solely depends on you you got to look at them the average realtor you know they say here especially here in the Bay Area is making maybe one to two transactions a year now either the the price point of the actual home is pretty high like let's say 800 to a million dollars maybe your maybe your income if you if you only have one side of the deal is maybe twenty thirty thousand dollars right with your split with your broker let's just say you know what you spent I know a couple of months on the deal you know 30 to 45 days in escrow alone that doesn't even go to all the time invested finding the client do in the open houses and all this stuff trust me I have much love or the average real estate person but here's the thing once you stop your income stops and that was one of the biggest considerations that I really considered why money industry and insurance industry over real estate in the money industry guys it's it's never a dull day because you can have a pipeline can you imagine instead of doing one or two transactions in a year you can do 30 40 50 60 70 80 100 transactions in a month think about the scale of income last month right what would have taken me I don't know five six seven eight maybe sales on big deals and real estate you know I earned in one month over six figures last month you can find me on instagram at Danny sinks in 1 or Facebook Danny sinks in you see I'm talking about doesn't that blow your mind the insurance industry
it's cool too as well the insurance industry is sexy it pays you sexy and guesses what the work that you do is very noble for the clients that you serve in the insurance industry number nine come out a cessation one of my top med commoditization listen there's a couple of thing going out because the technology well number one the conversation about artificial intelligence inside the real estate community is a very heavily talked about subject as well it is inside the insurance industry so here's the thing commoditization has forced technology to replace some of the roles and functions that a typical real estate agent does everybody can see a property online now everybody can see the curb appeal
people see the front yard people see the back yard the rooms inside and what I've seen a lot of real estate agents come back to me saying man you know what technology they've just reduced me down to becoming a professional door opener and I know there's a lot of hard working real estate agents out there putting in the honest work and earning a solid income but yet technologies is eroding some of things that you're doing which erodes some of the Commission's the average commission that you're making on that deal because a lot of people are doing the legwork already they're seeing the property they get in contact with whoever they need to get in contact with to make the deal sweeter and they're coming to you just to help them close the deal a lot of people feel that real estate commissions are something that shouldn't be paying anyway it's a commoditize a line of work that's getting worse and worse over time versus those artificial intelligence come into the insurance industry well it might to the cousins of our industry which is property and casualty and homeowners and renters et cetera but when it comes to life insurance when it comes to
retirement planning this is a big intangible conversation because this involves emotional intelligence you can't teach a robot how to have a heart you can't teach a computer how to feel for one's kids how to feel for one's wife and husband their spouse you can't teach a computer how to feel for one wanting to create a legacy for their family for multiple generations
artificial intelligence will never be emotional intelligence and that's why the commoditization of the insurance agent versus a real estate agent there's no comparison and here's the thing to come out today ssin I realized that in my community I wanted to be valued right and so the evidence of that has been the expansion of our offices just with the inside of Chicagoland location
we've been to four different offices in four different years and a consecutive basis each time growing our location so the demand is there which is not everybody knows about the insurance industry and that's why I'm glad you're watching this video and number 10 last but not least recession-proof is real state recession-proof gives the
insurance industry recession-proof listen I've been doing this now for twenty years I got involved the
the insurance industry in 1998 the tail end of 1998
I saw the bull market of the late 90s and the dot-com crash of 2001 I've also seen the bull market of real estate in the mid-2000 and also the real estate crash and mortgage-backed security crash in the O 809 I've seen over time what happens to people in the real estate industry in the mortgage industry and of real estate attorney fields what happens to them when the recession takes place and you know what we're due for another recession and guess what happens in an insurance practice an insurance agency or big business actually gains volume it actually gains traction in the middle of a recession why because in the middle of a financial crisis the insurance agents the insurance agency owners are the financial first responders in the middle of a family tragedy in the middle of a financial crisis we're able to provide capital
Raible defied cap to provide cash we're able to fight claims to people in the worst times of their financial life and then that's when people say oh I'm so glad I set this up a year ago I'm so glad instead of fighters I didn't know I was doing it but now I'm glad as it because in the worst of times
I now have found myself in the best of times because I financially prepare myself through the leadership of my insurance agent and that local insurance agency owners are a business and now I'm financially prepared I'm still able to send my kids to college I'm able to make sure that the people I love and care about are taken care of is something we happen to me that's what the life of an insurance agent does I know it's counterintuitive think that insurance business thrives during the middle of a recession but think about this our agency called PHP agency' was birthed in October of 2009 in the middle of a recession we started with 66 guys then and today close to 10 years later we have close to 10,000 agents from coast to coast and
Rico I remember delivering my first death benefit claims and my first set of retirement plans going from one parent to the beneficiary which is the child and I remember pulling these checks from my jacket at the funeral and handing it to the family and says by the way I know you didn't want anything from your parents but guess what they plan for it and throughout that moment she teared up she gave me a big hug
she started introducing to all the family at the funeral at the wagons that listen uh-huh I like referrals and I like what you're doing here right now but just not at the funeral just not at the wake here I just feel very uncomfortable listen what didn't come across from mine at that moment was financial worry
what's financial pain was financial grief she can honestly mourn the life that her parents had given her she could mourn the death of the people that she loved and cared because Bozeman had passed away and yet to receive all this money tax-free or transfer from an IRA not to her as an inherited IRA and have a house paid off is all through
insurance is all through the work of somebody diligent going through
somebody's financial details and finding the financial leaks and making sure that worst-case scenario happens you can still keep on to people that you love and care about what you originally plan for them without government involvement without people getting seized by the state probate courts to make sure that people's hands from the creditors are away from your family estates that are the life of what an insurance agent does it's very noble and honorable
profession to be in closing for me I've realized that have much rather work instead of bricks and mortar and property in real estate I would much rather work with real people so with that being said investing time into our agents into our agency builders managers and leaders there is an exponential dynamic that comes with teaching them financial products and services they can deploy with their clients in the community instead of investing in brick and mortar I get to invest in real people and unlike real estate where real estate is limited and linear investing in real people is unlimited and
exponential for example I can recruit a guy
I can build a guy I can teach a guy this industry and here's the thing I don't realize this the size of the fighting this guy's heart of how much he wants to win for his family and in this industry based on the book of business he can build on the agency that he can build it's an exponential market that can be exposed to it which means exponential revenue for that agent or agency builder and I've discovered that over my 20 years in the insurance industry the investment of time coaching teaching mentoring and leading those inside the insurance industry has given me a hundred times return than what I've experienced with my own personal experiences in real estate so listen these are the reasons why I chose insurance or real estate that may not match yours I'm not saying I'm the end-all-be-all but I would love your feedback I'll know your thoughts and what you're thinking
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