Real Estate at a Crossroads

by Gregory Charlop

If you have an Amazon Alexa device, you can check out my daily flash briefing, The Real Estate Flash. I also recommend Jason Frazier’s show, Agent Marketer Flash.[46] He’s a brilliant guy and knows the real estate and mortgage industries like the back of his hand. Jason is also a sought-after speaker and key influencer.

  I’d encourage you to check out all the various real estate shows and add them to your daily routine. It’s an easy and fun way to keep up with the world of real estate.

  Mentorship

  The new world of real estate is leaving behind its newest members.

  Please find some time to mentor the new folks just starting out in the real estate industry. They need your help now, more than ever.

  So many young people have dreams of making it in real estate only to have the harsh reality of the market crush their hopes. New real estate associates fail far too often. You can help them, you can teach them. You can give them a fighting chance to make it in this tough industry.

  If your brokerage doesn’t offer mentorship opportunities, check out the local chapter of your Board of Realtors. Most schools have established programs to help folks looking to mentor. And LinkedIn is experimenting with a career advice feature.[47] NAR offers some great community mentorship programs.[48]

  Whichever path you choose, you'll feel great knowing that you’re giving hope to folks just starting out in an exciting new world.

  Interview with Kim Hughes, CEO of virtual assistant firm Kim Hughes & Co.

  Gregory Charlop: Tell me a bit about you? How did you get into the real estate virtual assistant, VA, business?

  Kim Hughes: My experience goes back to 1983. I always knew that I was going to go into real estate. I went to real estate school, college, and also worked in the real estate industry in Dallas. In Dallas, I was working with mortgage lenders and then went to work for some of the top real estate developers. After that, I went into commercial leasing and did consulting work. Then, I took time off to have a family. By the time I was ready to revisit the real estate world, the internet came about. I knew that I could do something with the internet involving real estate, and that's where the idea of a real estate virtual assistant started.

  The real estate industry itself was still new to the world of technology, and the virtual assistant industry was also new. I was able to witness the merge of two worlds and was one of the first to determine that real estate agents needed help learning how to maneuver the technology being thrown at them.

  At the time, there were only 25 to 50 “professional virtual assistants”, and we all were trying to figure out how we could assist all industries. I was quickly becoming proficient in the area of technology and, because of my extensive knowledge of real estate, I decided to create a niche and work exclusively with real estate agents and offices. That's how the virtual assistant industry started, by finding that niche, determining what you're best fitted for, and making that your focus. That's how my business started.

  I knew real estate, had the background, the education, and I knew what agents needed. I was one of those people who really hustled and got my name out there. I attended conventions, conferences, and because I was the only one doing it, real estate agents showed interest in my business. Michael Russer, Howard Brinton, Allen Hainge, are some of the top names in the industry at the time. They all came together and supported the real estate virtual assistant concept. It is because of the hard work, dedication to learning, and discovering what agents needed, that my expertise became invaluable, and I was able to build a business that is now going on 20 years.

  The one thing that I have been very passionate about, over the past 20 years, is that "virtual assistance" is a great alternative for real estate agents. Agents need to be very aware that the experience the virtual assistant brings to the table is unique, because working in real estate is completely different than working with any other industry. If you think about it, real estate has its own language, rules, and laws. Every state is different, every brokerage is different, and every agent runs their business differently.

  Virtual assistance allows for a great deal of flexibility. You may not need an assistant full-time or even part-time. You just may need assistance on special projects or to handle a specific area of your business. Agents need to be very aware of what that assistant can bring to the table for them. An agent should always know the experience background of the person they're bringing on as a professional virtual assistant—get references, interview them, and do their due diligence when hiring someone.

  Gregory Charlop: Kim, many in our audience may not be familiar with virtual assistants. What is a real estate virtual assistant, and what types of things can they do?

  Kim Hughes: A virtual assistant that specializes in real estate can do just about anything for an agent. An assistant can act as an agent’s business manager by running the entire business for them or can just do one or two tasks. For example, an assistant can handle an agent’s bookkeeping, build their website and manage it, market listings, work as a transaction coordinator, create your daily office procedures, create those systems that go with the daily business, and more.

  A virtual assistant can help agents perform 99 percent of the details of handling a listing. They can make the phone calls, advertise, prepare the direct marketing, internet marketing, and input the listing into the MLS, with restrictions. There are restrictions on MLS, so I'm going to put a little asterisk by MLS. It depends on how your MLS is set up to give access to your virtual assistant. Agents would need to work that out. If you are thinking about hiring a virtual assistant, make sure you talk to your MLS if you want the assistant to have access, because there will probably be some paperwork, fees, etc.

  Assistants can also do transaction management. Once a property goes under contract, they can take that transaction all the way to the closing table. Then, of course, if you are representing the buyer, the virtual assistant can help you make sure that you are updating the criteria, staying in touch with the buyer, and confirm that everything goes smoothly. In transaction management, you can have a transaction coordinator on both sides. Then, once the property closes, they can assist with a past client campaign.

  Connecting with past clients is very important and is one of the things I encourage my agents to do. I started out as a virtual assistant and have built my company from there. I now have 10 virtual assistants who work with me, enabling me to branch out in the area of real estate coaching. A lot of virtual assistants should be able to help you think outside the box. When you interview a virtual assistant, I would ask them, "Well, what skills do you have to help me grow my business, or help me be more organized, or help give me more time in my day?" They should be an asset to you. A lot of virtual assistants who excel in their niche will bring ideas to the agents. Our philosophy is that the agent doesn't need to be spending time researching all the greatest things that are out there. The agent needs somebody to tell them these ideas, and then they can decide if it's something that's going to work for them or not. That's what we do. We're not just virtual assistants. We take it to another level.

  The big thing in the industry today is that agents need help with all aspects of their business. Some of the key areas we are asked to assist with are marketing listings, transaction management, and client relationships. A virtual assistant is not somebody who’s going to do lead generation. I don't do that. My company does not do that. I believe that if an agent gets a lead, they should be the one calling that lead. It provides them an opportunity to connect and capture that lead.

  In the years that I've been doing this, I have clients who have been with me for over 18 years and others who have been with me two years or less. Everybody's a little bit different. The main thing is to make sure that your virtual assistant can help you in the areas that you need help with.

  Here are some tips before you start looking for a virtual assistant. First, I highly recommend that you sit down and make a list of everything that you feel you do not have time to do, don't want to do, o
r don't know how to do. Then, look at that list, and pick the top three to five things that take you away from doing what you enjoy. Now you've got a good idea of what you need help with, and you can be very specific with that virtual assistant. Then, that virtual assistant will be able to say, "Yes, I can help you with that," or, "No, I can't help you with that." That way, you have an idea of where you need help and who can take over and run that business for you.

  Gregory Charlop: Kim, what's the difference between a licensed and an unlicensed virtual assistant, and what can each of them do?

  Kim Hughes: It's really not relevant, but a licensed assistant can have more conversations with the agent's clients and can even show a property if they're local. They can negotiate on a contract if the agent wants them to. Those are a couple of things that are beneficial but not necessary. An unlicensed assistant is not going to be able to negotiate or relay things to the seller/buyer that must be legally explained by someone who is licensed. That's why I recommend, when looking for a virtual assistant, you make sure that they know and understand real estate. I have seen agents go out and hire virtual assistants at a very low cost because they thought, "Well, I can get the same quality work." You can't do that. You get what you pay for, basically. Hiring someone who doesn’t know what they are and are not legally capable of doing can get you in a lot of trouble.

  An agent I knew hired somebody who was not licensed and didn't really understand the real estate industry. That assistant went outside the scope of what they were able to say. They answered a question that should’ve been directed back to the agent, and the client sued the agent because of it. As an agent, you don’t want to be put in that situation. So, when looking for an assistant, I would recommend starting with ones who have experience in the real estate industry. I don't want to talk about pricing but be aware that it's not going to be your minimum wage person. If you want somebody who really has a vested interest in an agent's business as a virtual assistant, you're going to have to pay for it. You're paying for the knowledge, the experience. You need to trust them to be your right-hand person and look out for you. They're going to be more than just a virtual assistant.

  Gregory Charlop: You mentioned pricing, so I'd like to ask you a bit about that. Obviously, without mentioning specific prices, how do real estate VAs typically charge? Is it usually by the hour, by the project, by the month?

  Kim Hughes: It really depends on what you have your virtual assistant handling. For example, if you need a virtual assistant to do marketing for your listings, write the content, label the photos, put it on social media, blog it, do the mail outs, do the whole 10 yards. That could be a package, which is a flat rate fee, or it could be by the hour. It really just depends on the virtual assistant.

  If you want someone to create systems for your business, implement those systems, create drip mail campaigns, help you set up your CRM, and other things that are outside of the box, then you're probably going to pay an hourly rate for that. This area differs greatly from agent to agent, so there’s no way to streamline it as a package. So, more than likely it would be an hourly rate.

  When you talk about transaction management, that is a flat rate fee. You're doing the same thing for every transaction. It's just a repetitive thing, but, at the same time, a good transaction coordinator will take the ball and go with it. They're going to say to the agent, "The only time you need to step into this transaction is when there's a negotiation." Like I said, it just really depends on what your needs are. Your virtual assistant can help you maneuver through all of that when you start interviewing.

  Gregory Charlop: Do the rules governing virtual assistants and what they're allowed to do vary state by state? Are virtual assistants allowed to be used in all states?

  Kim Hughes: I have clients all over the United States and in other countries. As long as you understand what the laws are and what the rules are for that state or that country, then you're okay to do anything for that agent within those laws or those guidelines. If an assistant is going to offer to work in a specific state or country, they should've already researched what they can and can't do in that state, or even for that brokerage. Some brokerages and franchises have rules about working with virtual assistants. You have to know what those guidelines are. The agent should know what the assistant can do, but the virtual assistant should know more.

  Gregory Charlop: Are virtual assistants covered by insurance? Do they have their own insurance, or are they covered by the agent's insurance? How does that work?

  Kim Hughes: I can't speak for other virtual assistants, but I'm insured. I would think any business owner would have the E&O insurance. This is where it gets a little tricky working with virtual assistants. I would say 99.9 percent would have a home office. This is not putting anybody down. It's just common sense. A lot of people in a lot of industries—not just virtual assistants—need to make sure that they know what they're doing in their business. Are they a categorized business? My company is an LLC. I have insurance, an attorney, a CPA; therefore, I run a business.

  A lot of virtual assistants don't make that investment because they don't really see the need or can't afford it. It takes money to run a business. When I first started, I was doing it just because I didn't know what else to do. As I grew, I realized there were certain things that I did need. I was very lucky that I had people who advised me to get an attorney, insurance, and a CPA. My business is run as a true business, but I work from home.

  Gregory Charlop: What type of real estate agent do you envision using a virtual assistant? Would it be somebody who's just starting out, learning the ropes, who has very little business? Or would it be someone who's very busy, who has little free time?

  Kim Hughes: That's a really good question, because they're all over the board. It would be beneficial to real estate agents who were just getting their license and coming out of the gate. A good virtual assistant would be able to help them set up their business correctly and then help them manage it. Even though the new agent may not have the budget, they could say, "Well, I can afford X amount per week to get this person to help me get my business started or help me market my business." That would be the perfect solution for a new agent, but we all know they may not be able to afford it because everybody works on commissions. So you've got to keep that in mind.

  I have agents who are brand new that come to me. I have agents that have been in the business 10 years who realize that they can't do it all themselves, and they need somebody to help them. Agents may have lost an assistant, and now they're looking at the virtual assistant because it just makes more sense. I have agents who have been in the business 40 years or more and have come to me in a different phase of their career. I have agents all over the spectrum. I have clients that have very large teams, and then I have some agents that have maybe one or two on their team. Some brokers bring me on as the virtual assistant, and then offer the services to their agents. There's not just one particular mold of what I have as a client or what would make the perfect client.

  Gregory Charlop: That was actually a perfect segue to my next question: are virtual assistants typically hired by individual agents, or are they hired by a real estate firm, brokerage, or a larger company?

  Kim Hughes: I would say 97 percent are hired by a single agent. An agent may work with a franchise or have their own brokerage. It is unusual for a brokerage to hire a virtual assistant to work with all the agents on the team or in their office. To give you an example, I have a team of seven and the agent works for a franchise. He offers transaction management to his team. He encourages his team to give all their transactions to the transaction coordinator. Then the agent pays for that service because he understands that having someone handle those transactions allows the agents to focus on other areas of their business. This agent pays for all of the transactions, and that’s not uncommon.

  Another client that has a large brokerage with multiple offices and over 100 agents. He offers the transaction coordination services to all
the agents, but the agents are responsible for paying me. He does provide an incentive. His top three agents can use me for a set number of hours per month on whatever they need, but they’ve got to be in those top three. Those top three could change every month, or it may be the same people all year long. It just depends. It is an incentive and a reward to those agents to be able to use me for that service.

  Gregory Charlop: I believe that there is a trend for real estate agents, particularly top agents, to move away from high price brokerages with high fees towards either discount real estate firms or online brokerages. Do you feel that real estate virtual assistants will make it easier for these types of agents to move away from the larger high price firms to function more independently?

  Kim Hughes: Yes, I'm already seeing that. The great thing is that the agents are going to be able to keep more of their commission, they're going to be able to have more control over what they want to do with their business, and they're not tied into the franchises. The biggest problem is that agents are hesitant to make that change because some think the only reason they're being hired as the listing agent or as a buyer agent is because of the franchise name. That's not true. I tell all my agents: you're being hired because of who you are and what you bring to the table. A buyer/seller does not care what your brokerage is or who your franchise is. They care about what you're going to do for them. Being part of a brokerage can be a plus or a minus. Home buyers and home sellers care about who the agent is and what that agent is bringing to the table.

  Gregory Charlop: I completely agree that virtual assistants may give agents the opportunity to be more independent and strike out on their own—particularly successful agents, because they can probably meet a lot of their own transaction needs and support needs without being part of a large agency.

  Kim Hughes: Right. I do see that agents are a little nervous about making a transition because they are used to having certain things provided to them through their brokerage. I know it’s bold to say this, but you're a real estate agent. You are a community leader. You need to put your big boy pants on and act like one. You need to have a business that runs successfully in the background.