Understanding Your Net Hourly Income-with Lars Hedenborg-EP95

During this episode of the Lab Coat Agents Podcast, host Jeff Pfitzer speaks with Lars Hedenborg, best-selling author, host of the Business Freedom Podcast, and Founder of the Real Estate B-School. Lars focuses on teaching agents how to calculate their net hourly income so that they can make the most of their time! Episode Highlights:  Before leaving New Jersey, Lars got his start in real estate investing while he was still working a corporate job. Lars was relocated from New Jersey to Charlotte in 2002 with his corporate job before leaving to become a real estate agent in 2007. In just 5 years of building his real estate business, Lars sold his last house at $1.2M before letting the business run without him. Lars’s stint with his first broker lasted only 10 months as he began to realize the true value of the money that he was bringing in. Jeff’s issue with eXp Realty is that it started with the model of just creating future wealth. It took Lars 6 years from the time he became an agent to the time that he owned his own business. Real Estate B School teaches each person in a given real estate team how to do their job at a professional level. To be at the top of your game in 5 years, you have to be willing to go through the first 2 years that will suck. Too many agents focus on percentages and numbers when they should focus on who can bring them value. Both Lars and Jeff consider themselves brokerage agnostic as they believe each brokerage has its own benefits and downfalls. In 2008, Lars determined that he wanted to make $500k in a year while working 40 hours per week. Most agents spend 2-3 hours a day doing the tasks of the lowest member on the team, thus wasting their time. The only way to maximize the use of your time is to be honest with yourself about how you are spending it. Lars has found that most agents that handle a lot of the technical work only earn about $20/hour. Jeff appreciates agents like Lars that know all of their calculations and data because those agents know what they need to do. By using your adjusted gross income (AGI) and tracking the hours that you work, you can figure out your current hourly rate. Figuring out your hourly rate via time study may be the most painful thing you ever do but it will help you correct course. Doing the same thing over and over again while expecting different results is the definition of insanity. There are different ways to conduct a time study; Lars continually uses this method to achieve his financial goals. Stop wasting so much time throughout the week watching Netflix and sports instead of spending time with your family. Lars has been the person that binge watches 9 seasons of Dexter in 2-3 months, but he pulled himself out. Being intentional with your time will help you realize just how much time you waste every day. Lars has noticed that TikTok and other social media platforms suck you in from a variety of angles. No one wants to look back at the end of their life and think that they focused on the wrong thing. 3 Key Points: Lars left his cushy corporate job to become a real estate agent in 2007. It took him 6 years to stop selling houses and start the Real Estate B School. Once you decide how much you want to make on an hourly basis, you will start to see all the tasks that should be delegated out. Prospecting, lead follow-up, negotiations, and closing deals are the 4 things that agents need to focus on to make the most of their time. Resources Mentioned: Lab Coat Agents (website), (Facebook), (Facebook Group), (Twitter), (Instagram) Lars Hedenborg: Podcast, Website, Real Estate B-School Time Study Exercise Business Growth Navigator E-Myth (book) StreetText (sponsor) Followup Boss (sponsor)