Robert Rico: I get asked this question all
the time. I get asked by so many other agents, who are
new like yourselves. They say, Rico, how did you close 325 plus
deals? And I think we talked about this before. 325 plus deals is a lot of deals. And they say, how did you do it, how did you
do it, can you give me some advice? And I say well, sure I can give you some advice. Advice number one is this. I learned this back in, let's see here, the
year 1973. I'm being serious, 1973. Where was I in 1973? I was in kindergarten. I think we may have slightly touched on this. I was in kindergarten, I totally remember
like it was yesterday because the school was right back here on Sixteenth Street and Ocean
Park, kindergarten right there. And they told me that I was much of a troublemaker,
the teacher got me one day, I'll never forget, she got me one day and she says Robert, you
gotta treat others as you ... what ya got? Audience: Want to be treated
Robert Rico: Want to be treated. Lesson number one. Real estate 101, treat others as you want
to be treated. You got that? Years go by, next one is 1976. I get into elementary school. What do I learn at elementary school? I learn in elementary school that it is very,
very important that if you want to make it, you gotta work hard, which means you get out
of it, what? You put into it. Real estate 101, you get out of it what you
put into it. And then I joined Little League. How many of you here have ever joined Little
League, or played ball, or something like that? Did you really? Audience: Yeah. Robert Rico: Did you enjoy it? Were you good? That's good. The cool thing about Little League, when you're
small, it doesn't really matter if you are skilled or not at baseball. What are they trying to teach ya? They're trying to teach you sportsmanship,
right? I'll never forget, before every game, before
every single game, you had to line up on the, on the ... what do you call it? The foul lines? You know, the lines there on the field. The base lines. You have to stand ... I'll never forget, and
the flag is waving, and they make you do this, "I trust in God, I love my country, and I
will respect its laws, I will play fair and strive to win, but win or lose I will always
do my best". I trust in God, I love my country, and I will
respect its laws, I will play fair and strive to win, but win or lose I will always do my
best, real estate 101. You with me? Then I got to high school. Then I got to high school, this will all makes
sense. I got to high school where I got to be creative. You learn how to be creative, right? You learn to think, to be different, to analyze
things, to negotiate, to negotiate. How do you negotiate in hight school? How do you negotiate in high school? There is negotiations in high school. I was in 12th grade, 1986. I was going to graduate in June. It was May 15th ish, two weeks from graduation. I get this card in the mail, letter in the
mail, and it said, it says, "Mr. Rico, you will not be graduating with your class. You failed a class". I was ready to go to Cal State University
the next fall. Oh my God, what am I gonna do? What's the first thing you should do? Never, never avoid trouble, instead you should
go head it on, head on and fix it, deal with it. I went and found the teacher, I said, "Ms."
I forget her name, actually it was a sister, because it was a Catholic school, private
school. I said, "Sister so and so, you failed me. How can this be so? Can you show me what I did wrong?". She pulled out her grade book, and she said,
"Look at your grades.", and she showed me all the assignments that I didn't do. Stick with me, this all makes sense. All the assignments I did not do, and she
goes, "Your final score Rico, was a 59.6". To pass the class you needed a what? A 60. I had a 59.6. I needed a 60. It's time to negotiate. It's time to think creatively, real estate
101. Hey Sister, hold on a second. If I've got a 50.6, aren't we supposed to
round up to the highest number? That would make it a what? A 60. She goes, "Rico, you have a point there, dog
on it, I'm going to change it to a 60." "You are graduating with the class." Now, that wouldn't have happened if I didn't
do what? Audience: Negotiate. Robert Rico: True story. I kid you not. True story. Oh my God, I actually pulled it off. I couldn't believe it, real estate 101. You've gotta be strong negotiators, you've
gotta be able to treat others as you want to be treated. What was the other one? You get out of life, what? What you put into it. And this is the deal, all of this stuff is
real estate related. As you can tell, none of it, yet, is academic. You with me? Have we talked about the laws yet? Have we talked about what licenses you have
to have? Have we talked about any of that stuff yet? No, but that's the important stuff, the important
parts of real estate. Now today I'm gonna talk about the other half. The other half is the academic part. The other half is the literature part. The other half is the laws. I want you to remember one thing, remember
this, the two tank theory. The two tank theory. I'm going to gift you the two tank theory. The two tank theory is simple, I want you
to fill up this tank with what? Education. Got it? And I want you to fill this tank up with effort. Fill this tank up with what? Audience: Education. Robert Rico: Fill this tank up with what? Audience: Education. Robert Rico: Fill this tank up with what? Audience: Effort. Robert Rico: This one? Audience: Education. Robert Rico: This one? Audience: Effort. Robert Rico: Fill them both up, and I promise,
if you let them overfloweth with each others ... with effort and education, you'll make
tons of money, if you do it the right way. You with me? Does that make sense to ya? It should because it's very, very simple. I trust in God, I love my country, I will
respect its laws, I will play fair and strive to win, but win or lose I will always do my
best. I love it, love it, love it. Ready? Here we go. You guys ready to do this? You guys ready to do this? Audience: Yeah. Robert Rico: Are you guys ready to do this? Audience: Yeah. Robert Rico: Check it out here. Congratulations on your new real estate venture. Very simple, those of you that are brand new,
you should have gotten an email. Did you guys get an email? Audience: Yeah. Robert Rico: And it simply introduced you
to the program, and explained as to what you should do. Open it up, sign up, sign in, get your log
in and all that good stuff. Number two, you're gonna have to have some
quizzes. The quizzes are mandatory. So, if you have already been doing them, the
quizzes are mandatory. Simple, 10 questions, take you five minutes. 10 questions per session, very simple. They're mandatory so that you can get to the
State Exam. Not the State Exam, to the module exams, to
our exams. To get our exams for the certificates, you
gotta pass those quizzes. Not a big deal. Last but not least, once you get your three
certificates, you will of course, be eligible to take what? Audience: The State Exam. Robert Rico: The State Exam. To take what? The State Exam. The whole idea for you guys here is to get
to that big party. There's a big party going on over there, and
your job is to get those three certificates, and those three certificates will simply be
your invitation to that big party that's going on in here. And what's that big party that's going on
in here? The State Exam. I'm going to show you how to Cha-cha, I'm
going to show you how to Boogie. Once this three months are over, you'll be
able to do this like it's no big deal. Are you with me? Robert Rico: You guys sure you want to do
this? Audience: Yeah. Robert Rico: Are you sure you want to do this? I don't know why you want to do this, but
I'm supporting ya. And I know you can do this. Just follow my lead. I know you can do this. Let's go. Let's get this thing going here, getting started
with this. You're gonna take three ... you have to take
three modules. No ifs, ands, or buts. The state of California says you have to take
practice, no ifs, ands, or buts. The state of California says you must take
principles, and the state of California says you must take an elective. The elective that we have chosen hee at California
Reality training is? Audience: Finance. Robert Rico: Is? Audience: Finance. Robert Rico: Finance. Those three, get your three certificates,
go to the Bureau of Real Estate, take your State Exam. The session consists of these four items here. Stick with me. Basic real estate concepts and terms, real
estate experiences and advice, typical everyday agent activities, contrast and disclosure. Lets go up here. Basic real estate concepts and terms. Real estate concepts and terms. Real estate concepts and terms. Here it comes. You ready? Study long, study wrong. Say it with me. Everyone: Study long, study wrong. Robert Rico: A five dollar bill-
Everyone: Is a five dollar bill. Robert Rico: It's not $4.99. It's not $5.01. Study long-
Everyone: Study wrong Robert Rico: A five dollar bill-
Everyone: Is a five dollar bill. Robert Rico: All right, now, you guys sure
you wanna get this thing going? You sure you wanna do this? Audience: Yeah. Robert Rico: Are you sure you want to do this? Audience: Yeah. Robert Rico: This is a big deal for some of
ya. How many of you here are dying to change your
career? No, seriously. How many of you are dying to change your career? Raise your hand high. That many are disgruntled? Geez. You know what? Real estate has been very, very good to me. It's not a big deal to get your license, oh
my gosh. It's what you do with it that's so beautiful. It's what you do with it when you get it,
and it starts like this. Ready? Here it goes. Next slide is where it all starts. It's the magic. Here it goes. Number one, up top. And I want you to take it like, a five dollar
bill is a five dollar bill. Study long, Study wrong. Up top there it says what? Buyers. What do buyers want? Audience: House. Robert Rico: To buy a house. What do sellers want? To sell a house. Nice and easy. From now on, when I point to this door over
here, I want you to say, buyers. When I point to this door, I want you to say
what? Audience: Buyers. Robert Rico: When I point to this door I want
you to say what? Audience: Buyers. Robert Rico: Buyers. When I point back there I want you to say
what? Audience: Sellers. Robert Rico: Sellers are back there. Buyers are over here. Who's over here? Audience: Buyers. Robert Rico: Back there? Audience: Sellers. Robert Rico: Back there? Audience: Sellers. Robert Rico: Over here? Audience: Buyers. Robert Rico: Your job here, real estate agent,
your job is to put these people together. You're the match maker. You're gonna get these two to fall in love,
you understand me? You guys know this. Your job is very, very simple. You put these two people together, you will
earn yourself a nice, handsome commission. That sound good to you? It should because these commissions are pretty
darn big in this area. Are you kidding me? They're huge. Even if they're not, can you use an extra
4 or 5,000 dollars? Of course you can. Next is this. Who's back there? Audience: Sellers. Robert Rico: Over here? Audience: Buyers. Robert Rico: You put them together, we've
gotta have somebody babysit this thing. We've gotta have somebody take care of it
when you give it to the person dead center, from now on when I point to this table dead
center, I want you to say escrow. Who's dead center? Audience: Escrow. Robert Rico: That's going to get more complicated. Who's dead center? Audience: Escrow. Robert Rico: Back there? Audience: Sellers. Robert Rico: Over here? Audience: Buyers. Robert Rico: Here? Audience: Escrow. Robert Rico: Here? Audience: Sellers. Robert Rico: Here? Audience: Escrow. Robert Rico: Good. What is escrow? Ah. What is escrow? What is escrow? This is the deal. I'm gonna gift you the definition. Some of you guys, the escrow, uh that's a
big ole definition this long. Listen, ready? I made this one up, it works, I love it. Escrow, ready? A neutral third party that protects the integrity
of the transaction. A neutral third party that protects the integrity
of the transaction. One more time. Everyone: A neutral third part that protects
the integrity of the transaction. Robert Rico: Listen to that. Soak it in. A neutral third party, I got it. That protects, okay. The integrity of the transaction. Their job is though, once you put these two
people together, and you hand off the transaction to them here, their job is simply to do this,
protect it and back off. Something has been created, and it's our job
to keep it solid, to keep it intact. You with me? Who does that? Audience: Escrow. Robert Rico: Who does that? Audience: Escrow. Robert Rico: Escrow does that. Keep that in mind. Here we go. Next one. The lender, whenever I point over there I
want you to say who? Audience: Lender. Robert Rico: Lender. Lender's over here. Let's go take a walk over to lender. Lender, how you doing? Good. Hey listen, the lender is important, or not
important? Audience: Important. Robert Rico: No seriously. Is he important or not important? Audience: Important. Robert Rico: Why is he important? Audience: Lends the money. Robert Rico: Say it again. Audience: Lends the money. Robert Rico: Lends the money to who? Audience: Buyer. Robert Rico: Lends the money to who? Audience: Buyer. Robert Rico: What if the buyer has ... what
if the buyer over there has cash, and he wants to buy the house cash from the seller? Do we need the lender? Audience: No. Robert Rico: No, but most people do need a
lender, don't they? How many of you here have bought a house before? Did you use a loan or did you pay cash? Maybe I should ... did you use a loan? Did you get a loan? Did you use a bank? Audience: Yeah. Robert Rico: Let's go back over to the lender. Hey lender, how you doing? Hey lender, how many products do you have,
products meaning, types of loans. How many types of loans do you have over here? They're gonna say they have a whole bunch,
and the way to pick the best one that is good for the client. Are you with me? They'll decide which one is the best one for
the client. You real estate agents do not do that, because
you are not a what? Audience: Lender. Robert Rico: You are not a lender. You are a what? Real estate agent. Let the lender do his job. You got it? Very important job, gives money to the buyer,
buyer buys the sellers house, we have to have somebody take care of this. We give it to who? Audience: Escrow. Robert Rico: Escrow, what is escrow again? A-
Everyone: Neutral third party that protects the integrity of the transaction. Robert Rico: Look down here please. Prospecting, at the very bottom there, prospecting. Prospecting. That is the core. Stick with me, don't let me lose ya. That is the core, the core of real estate. Prospecting. Prospecting. What the heck is prospecting? What is prospecting? Without looking up there, what is prospecting? What is it? Anybody? Audience: Finding clients. Robert Rico: Finding clients. What else? What? Prospecting is talking to people. Prospecting is somehow, someway getting a
clients. From now on, I want you to call your client
a principle. Prospecting is going out there and hustling,
and getting clients. There's three ways to make money in real estate. There's three ways to make money in real estate. There's three ways to make money in real estate. Number one, you go wait for it. When's the phone gonna ring? Number two, you can buy it. How do you buy it? You market yourself. Is that gonna cost you money? It's gonna cost you tons of money if you do
it the right ... I used to spend 2,000 bucks a month, back in my high days, 2,000 bucks
a month just on marketing. Most people who just get started, it's not
a very good idea to spend so much money on marketing. Last but not least, the third way to make
money, to make it in this business is, anybody? Go get it. Go get it. One, you could wait for it. Two, you could buy it. What's the third one? Go get it. What's the third one? Audience: Go get it. Robert Rico: Who's dead center? Audience: Escrow. Robert Rico: Who's over here? Audience: Buyer. Robert Rico: Give me dead center again. Audience: Escrow. Everyone: A neutral third party that protects
the integrity of the transaction. Robert Rico: Over here? Audience: Lender. Robert Rico: Ladies and gentlemen, I present
to you the cast of characters in the world of real estate. How do you like that? Let's give them a hand. There it is. There it is. That's, in a nut shell, the real estate world
. It's not what ya know, it's what ya do with what ya know. It's not what ya know, it's what? It's what you do with what ya know. You ready? Here we go. Let's get this party going. The business of real estate, here we go. Hold on to your seats. Look up here please. Administration of real estate law, nice and
easy. The Bureau of Real Estate, there it is, right
in front of you. The Bureau of Real Estate is a division of
the California department of Consumer Affairs. Their mission is simple. They exist for a reason. They exist because, if we read it here what
their mission ... their mission is very, very simple. The mission states, "To safeguard and promote
the public interest in real estate matters through licensure regulation education enforcement". BRB, straight shot here. the one that manages all this is the Real
Estate Commissioner. Not a big deal. The Real Estate Commissioner, he's the one
that controls the entire Bureau of Real Estate, he's the Chief Officer of the BRB as appointed
by the Governor and enforces the law. The Real Estate Advisor Commission consists
of 10 people on the panel. 10 people on the panel, six of them must be
licensed, and the other four don't have to be licensed. How does this affect your real estate license? How does this affect your real estate career? How does this affect your real estate career? How does this affect your real estate career? Anybody? Anybody? Anybody? Keep your noses clean, because if you don't
keep your nose clean, if you don't follow the rules and regulations of the BRB, what
can happen to ya? Robert Rico: Say it again. Audience: Lose your license. Robert Rico: Lose your license, or the license
can be what? Audience: Revoked. Robert Rico: Revoked, suspended, all that
stuff. Don't do it. Keep it clean. Make a good living doing this. Changed my life completely, real estate did,
but I kept my nose clean. I did it the right way, the ethical way. Take a look up here. Look at this guy here. He's actually the current Real Estate Commissioner. His name is Mr. Wayne Bell. Does he look familiar to anybody? Does he? No. Of course not. But, you know which number I want you to focus
on? Look at this one here. He actually oversees ... look at this. Mr. Bell will oversee the licensing and regulation
of approximately 415,000. Listen to this, 415,000 real estate licensings
in the state of California. Is that a lot? Audience: Yeah. Robert Rico: Is it really? 415,000 agents in California. Yeah, to bet. Tell me about it. That's a lot of agents. A lot. It goes down here to my trainer's corner. Look at this. Check out my trainer's corner. You like that? With so many licensees in California, there
seems to be a lot of competition with the real estate field. What are my thoughts when it comes to competition? Is there enough business for everyone? Competition. How many people here, and be honest with me,
how many people here are afraid of the competition once you get your license? Oh, you're confident that you're not afraid
of the competition? Audience: I respect the competition. Robert Rico: What does that mean? You respect the competition? Audience: That it's gonna be hard work, but
that's fine. Robert Rico: Okay. Anybody else afraid of the competition? Are you concerned about the competition? Does it bother you that there's so many agents
out there? What do ya got? Does it bother ya? Audience: It doesn't bother me, but I wonder
how I'll fair against the competition. Robert Rico: You wonder how you'll fair? Listen, I don't want you guys to be worried
about it, and I'll tell you why. You ready? Wait for it. That's exactly how ... this is why this class
is so good. I want you to do it this way. Each and every one of you here ... I don't
know, maybe there's 30 of you here. Each and every one of you here has something
that the others don't have, and that's what we call ... ready? Wait for it. Wait for it. The SOI. Now, what is SOI stand for? A sphere of influence. A sphere of influence. Say it with me. Everyone: A sphere of influence. Robert Rico: What does that mean? Simple, it means this. It means you know people that he doesn't know,
and he's got his own people that you don't know, and you've got your own people that
you know, but they don't know, and everybody in here has people they know that nobody else
knows. A sphere of influence. Your buddies, your family, your loved ones,
the people that do your hair, what do you call it? The hairstylists, that do your nails, your
bowling league, your church. What other kind of groups are you guys involved
in? Anybody have kids here? What do you call it when you go to Family
Night? What do you call it? PTA, PTA, anybody involved in PTA? All these people that you guys run into on
a constant basis are your what? Everyone: Sphere of influence. Robert Rico: Your sphere of influence. Listen, you might want to write this down,
that's where you're gonna get started. I believe the sphere of influence is so overlooked. Competition, ha, I laugh at competition, because
nobody has my sphere, and that's how I got started actually, with my sphere of influence. I called everybody I knew, everybody. I called everybody I knew and the people they
knew. I said, "Hey, guess what? My name is Rico, I'm over here at Cali Santa
Monica, I know you from the bowling league, I know you from church, I know you from the
Monday night football game parties we went to. You ever need any kind of real estate service,
why don't you give me a shot?" Your sphere of influence. That will probably be your best and safest
way to get started. You with me? You with me? A five dollar bill is a five dollar bill. Nice and easy, lets go. All right, real estate brokerage, all right. So, once you get your license, you gotta pick
a brokerage. You can't just work for yourself, you guys
know that, right? You can't get your license and say, "Yay,
I have a license, I'm gonna go start selling some houses", doesn't work that way. You gotta select a brokerage, which means
you have to select an office. You gotta pick and office you want to work
for, and you're gonna hand them your license, you're gonna say, "I would like to work here". That's called a brokerage. What do they do here? They supervise you. A sales person can do business only as the
employee of the broker. Look down here. All of the agents are independent contractors,
the represent clients on behalf of the brokerage. All though you guys are independent contractors,
you're going to be independent contractor. Independent contractor, what does that mean? Independent contractor, it means that you
are going to be your own what? Audience: Boss. Robert Rico: Boss. Doesn't that sound nice? You're gonna be your own boss. But, and there's a big but, but you'll be
representing your clients on behalf of the brokerage. What does that mean? Ready? Watch this one. When you hang your new license with the brokerage,
you'll be representing them in the real estate world, which means, all though you are an
independent contractor you are representing the name on the front of the jersey, not the
one on the back. You got it? You'll be playing for this team, which means,
play hard, play fair, put lots of effort into it, because the one who's going to benefit
at the end is who? You. You got it? Very simple. You'll be playing for this team here, whichever
team you decide to work for, but go at it. Do as best as you can as Kobe Bryant did. Anybody any Kobe Bryant fans here? Really? All right, good for you. Really, Kobe Bryant fan, all right. Lets keep going. Real estate brokerage office activity, this
is what you'll be doing when you get your license in a brokerage. Deal with transactions, properties such as,
residential properties, commercial properties, mobile homes, business opportunities, a whole
bunch, but the majority of new people, and that's where you guys come in, the majority
of brand new licensees, as yourselves, typically start with residential sales. Now, why do you think we do residential sales? Anybody? Why would you want to do residential sales? We talked about this a little bit, I think. I'll tell you why. Because residential sales are the easiest
to get going with. Watch this. Who's over here? Audience: Buyers. Robert Rico: Who's over here? Audience: Buyers. Robert Rico: Who's back there? Audience: Sellers. Robert Rico: Your job is to put them together. Lets assume he's selling his house back there
for one million dollars. One million dollars over there, and your commission
is 3%. If you close this deal you're gonna get 3%
commission. Buyer, seller, give it to who? Audience: Escrow. Robert Rico: Give it to who? Audience: Escrow. Robert Rico: Escrow runs its 30 to 45 day
escrow period. When it's all said and done, you'll get 3%
of a million bucks. What's 3% of a million bucks? Audience: 30
Robert Rico: Was that hard to do? We just closed a deal. Nice and easy. This is why we knew it, because the majority
of the regulations and the process involved is rather simple. You can do it, and you get a lot of help doing
it. Not a big deal. You can do it. This is why the majority of new licensees
get involved with residential homes, it's nice and easy. Lets keep going here. Brokerage responsibility, their job is to
maintain a valid real estate license from you guys. Just so you guys know, when you get your license,
do you know how many years it's good for? Audience: A year. Robert Rico: How many? Audience: One. Robert Rico: Uh. One year? Audience: Five. Robert Rico: Five? A good try. Anybody else? Audience: Three. Robert Rico: What do you say back there? Audience: Four. Robert Rico: Four. Anybody else know? Four is the right answer. Ding, Ding, Ding, four. Four years, it's good for four years. What do you do after four years? Audience: Renew. Robert Rico: What do you mean by renew? You've gotta take extra classes. You've gotta take additional courses. That's what we call continue education, you
take a couple more classes, not a big deal, and you keep that license active, keep it
active. And it's the job of the brokerage to make
sure you have your license's' active. But dog on it, at the end of the day, it's
your job to make sure it's active because if it isn't active, if it's not updated, no
bueno amigo, you can not sell real estate. You just can't do it. Can't do it, and then of course, the have
to supervise you guys and retain records. Nice and easy. Now, lets talk about the sales person. Take a look at the folders down there. This is actually what a real estate license
looks like, right there. You guys ever seen one before? Audience: No. Robert Rico: No? The one on the right there, the big large
one, is the one they'll mail you in a nice big envelope. That's the one you're gonna be handing over
to the broker. The broker's gonna hold on to this one. Then they're gonna give you a small itty bitty
one. This one here's for you, and you're gonna
hold that in your wallet or your purse, whatever, but that's like the size of a driver's license,
the small one there. And of course, like I said, the large one
goes to the broker that you work for, and they're gonna hold it because you are working
for them, and you are representing that broker. The license laws and real estate activities,
only if the sales person's controlled and supervised by the broker. The sales person receives compensation only
from the broker. Ready? Who's back there? Audience: Seller. Robert Rico: Over here? Audience: Buyer. Robert Rico: Dead center? Audience: Escrow. Robert Rico: You close a deal you make 30,000
dollars. Boom, they're so happy that you just did your
job fantastic that the seller says, "Great", the seller hands you a check for 30,000 dollars. That pretty nice? Audience: Mmm-hmm. Robert Rico: That pretty nice? Audience: Yeah. Robert Rico: The seller hands you a check
for 30,000 dollars, ain't that nice? Audience: Yeah. Robert Rico: Is that the way it works? Audience: No. Robert Rico: Is that the way it works? Everyone: No. Robert Rico: How do you get paid? Audience: The broker. Robert Rico: How did the broker get paid? Audience: From escrow. Robert Rico: Huh? Escrow, escrow. Watch this. Who's back there? Audience: Seller. Robert Rico: Who's over there? Audience: Buyer. Robert Rico: All these ... the entire process
is going through the escrow department. The deal is over, it's done. Yay, hallelujah, it's over, it's done. Everybody did a fantastic job, it's time to
pay everybody. It's payday. Escrow has all the compensation right there
in their office, and they say, "Okay, who represented the seller? Here's your 30, 000 dollars. Who represented the buyer? Here's your 30,000 dollars." And they send it to the brokers, you guys
understand that? Now, the broker's get it and the brokers say,
"Okay, we've got the 30,000 dollars in here, who's the one that closed the deal?" Let's assume it's you, give me your name. Audience: Ali
Robert Rico: Ali closes the deal, and whatever the broker and Ali have agreed to, I'll then
cut a check to Ali. So, let's assume the broker said, "Hey, Ali,
we have a great office here, we're gonna let you keep 70% of this commission". "We're gonna let you keep 70% of this 30,000
dollars." What's 70% of 30,000 bucks? Come on, you know this. What's 70% of 30,000 ... what? Audience: 21
Robert Rico: 21,000 bucks, Ali here's a 21,000 dollar check. What's the first thing you're gonna do with
it? Come on. What are you gonna ... cash it, yeah. Cash it, you'll have a hole in your wallet. What are you gonna do with the money? Audience: Put it in the bank. Robert Rico: Put it in the bank is what she
said. Yeah right. Put it in the bank Ali? I don't think so. The point is they're gonna give him a check
for 21,000 dollars, and the broker keeps what? Audience: 30%
Robert Rico: 30%, and that's how it works. Where did he get his check from? Audience: The broker. Robert Rico: The broker. The broker gave him the check. Where did the broker get it from? Audience: Escrow. Robert Rico: Where did escrow get it from? Audience: The seller. Robert Rico: The seller. Nice. Nice. That all make sense? The seller gives it to escrow, escrow gives
it to the broker, the broker gives it to? Robert Rico: The agent. To you. Nice and easy. Cool. Let's keep going here. Becoming a sales person, these are the rules
and regulations to becoming a realtor. I hope you guys have these abilities. Number one, You must be 18 years old. Is anybody here not 18? You must be 18 years old. You must be honest and truthful. You must be honest and truthful. You must pass course in real estate principles,
real estate practice, and an elective. What's the elective here again? Audience: Finance. Robert Rico: Finance. You must pass a sales persons licensing exam,
you must get fingerprinted, which is a life scan, you must pay the required license fee,
complete 45 hours of continue education every four years, like we discussed earlier, obey
applicable laws and regulations, and become a member or NAR. Anybody know what NAR stands for? Audience: National Association of Realtors. Robert Rico: Say it again. Audience: National Association of Realtors. Robert Rico: Yes or no. Audience: Yes. Robert Rico: Yes. National Association of Realtors, perfect. Nice. So, take a look at that. I'll give you about 10 seconds. Ask yourself, "Do I have these abilities?". I think you do. I think you do. Let's keep going here. Becoming a real estate broker, anybody here
wanting to become a broker? Really? Just curious as to why you want to be a broker? Audience: I want to have a lot of agents working
under me. Robert Rico: You want to have a lot of agents
... why do you want to have a lot of agents working under you? Audience: Make a lot more money. Robert Rico: What do you mean by make a lot
more money? Robert Rico: Say it again. So, you want to take it, your agents commissions? Isn't that a bad idea, or is that a good idea? Audience: Good. Robert Rico: That's a good idea. Nothing wrong with that, but is it worth it? Oops. Is it worth it? Is it worth it? Lets look down here. What are the advantages of becoming a broker? Keeping everybody's money. Any disadvantages to that? Audience: All the responsibility. Robert Rico: All the responsibility. What else? Anything else? Audience: Taking another test. Robert Rico: Taking another test. That could be difficult, I guess. What else is a disadvantage to being a broker? Audience: Don't you have to carry the insurance? Robert Rico: That's what I was going to go
at. You've gotta carry the insurance, the accountability,
the fees involved. You know how much they paid for this office? Think about the rent, if you have to rent
a space. I was working for a broker, not long ago,
take a guess at how much they were paying a month just on their lease. Take a guess. What do you think to lease a building would
run, now a days? I don't know. But I know- How much? Audience: 40? Robert Rico: Yeah, you're pretty ... yeah. 30,000 bucks a month. 30,000 bucks a month. Now you want to be a broker? Audience: Yeah. Robert Rico: Do you really? Anyways, accountability, the cost involved,
I mean, in the long run maybe not a bad idea. You do make a lot more money if you have a
whole bunch of realtors working for ya. Nothing wrong with this, go for it. Ain't nothin' wrong with that, but you must
pass the test, and what of the tests? You must be 18 years old. You must be honest and truthful. Are you honest and truthful? You must be honest and truthful. You must complete eight college level courses,
fulfill two year experience requirement, pass a license exam, send the required fee, complete
45 hours of continue education every four years, and obey the laws and regulations. Not a bad idea. I thought about getting my broker's license. I thought about it. I actually have taken the courses, all I have
to do is take the state exam, the broker's exam, and I have been procrastinating, and
procrastinating, and I don't know what I'm waiting for. Don't procrastinate. Do as I say, not as I do. All right. Real estate course requirements, course of
a sale's person's license, real estate practice and state principles, and elective fingerprints. One set of fingerprints, life scan, those
are sent to the Department of Justice. I want you to remember that. Those are sent to the Department of Justice. Did you guys have any idea that you had to
do this? Audience: Yeah. Robert Rico: Did you really? Yeah, so get ready. When you send in your application, you're
gonna send the applications, you're gonna send your three certificates, you're gonna
send your life scan. It's all gonna be in envelope, and I want
you to send it off. Not that big of a deal. It's just part of the gig. It's part of the deal. Just do it. Don't let it sit there. The last thing I want you to do is get your
stuff and then shelf it. Do not shelf it, do not self it, do not what? Everyone: Shelf it. Robert Rico: Don't shelf it. If you self it, it's gonna collect dust, and
before you know it, two months go by, or three months go by. I've had people, I've had students like you
call me one year later stating, "How do I take my State Exam?". What? Yeah, I said, "What?". A year later. Don't wait so long. Do it, do it. You can knock this out, get it done. The BRB real estate website, I would love
for you guys, when you have a moment, to go to the Bureau of Real Estate website. Here's the website, it's brb.ca.gov. Have you guys gone to it yet? Has anybody ever visited this website? Audience: Yeah. Robert Rico: Have ya? What'd you think? It's got cool stuff on there. Very good stuff on there. It will answer mist of your questions when
it comes to the State Exam. Some of you guys aren't so far from taking
that State Exam. It answers a lot of your questions. A lot of your simple questions, what can I
take to the state exam? You guys have any idea what you can take to
the State Exam? Audience: Nothing. Robert Rico: Yeah nothing. Yeah, it's almost worse than the airport,
they're gonna pat you down. How long before they give you your results
on the State Exam? Audience: Immediately. Instantly. Robert Rico: Instant. Yeah, you're right, instant. Many, many moons ago, when I took my license,
we had to wait weeks to get our results. Not anymore, you walk in there, you're confident. You walk in there, you had your breakfast,
you had a cup of coffee. You walk in there, you're positive, you're
ready to do this, you take your exam, you get out of there, you hand it in to the lady
who's watching the door. You say, "Here you go", she says, "Okay, go
get your stuff out of your locker". Because they're gonna give you a locker. Get your stuff out of your locker, by the
time you get back, they're gonna hand you an envelope. They're gonna hand you an envelope, and they're
going to tell ya, they're going to say, "Please open this envelope up outside in the parking
lot". "Do not open it up in here, because we don't
want to hear your reaction to what's inside." But they tell you right then and there. They tell you right then and there if you
passed, or if you failed, and dog on it, I know you're gonna pass, just follow my lead. You got it? Some of you are like, two months from taking
that ... or maybe three months from taking that exam. You've been waiting this whole ... you've
been busting your tail off for the last three months to get to that big party in there,
which is the Real Estate Exam, and you have been taught to Boogie and Cha-cha. You're gonna go in there, and you're gonna
show them how it's done. You're gonna show them how it's done. Why? Because you're going to be prepared. Who's dead center? Audience: Escrow. Robert Rico: Who's dead center? Audience: Escrow. Robert Rico: Who's over there? Audience: Lender. Robert Rico: Give me lender definition, not
lender, escrow definition. Everyone: A neutral third party that protects
the integrity of the transaction. Robert Rico: Nice. Lets keep going. Lets go, lets go, lets go. Enforcement of real estate law, to have a
fortune real estate career, it's important to stay out of legal trouble. Do not break any laws, if you do so this will
happen. They'll investigate you, a hearing may be
required. Bottom line, you get in trouble. Let's cut to the chase, look at the bottom
here. Do it the right way, and go a long way. Do it the right way, and go a long way. You may be tempted to do some funny stuff,
don't do it. It's not worth it. It's not worth it. Do it the right ethical way, and you will
last in this business. How many of you here want this to be, like
a major, major flourishing career? Really? You want this to be like, this is it, I'm
going to jump in full blown, I'm gonna dive in like a pool, and this is gonna be it? Listen, take it from me. I've been doing this for almost 25 years,
do it the right legal way. It goes back to the two tank theory. The two tank theory I came up with it about
two years ago. What's in this tank here? Audience: Education. Robert Rico: What's in this tank here? Everyone: Education. Robert Rico: What's in this tank here? Everyone: Effort. Robert Rico: That's all you gotta do, and
do it the right way. There would be no reasons for you to even
have to bother with any of this stuff here. None of it. None of it. Keep it clean. Listen, this is the deal. 1973, treat others as what? As you want to be treat ... and I mean it. It's as simple as that in real estate. You're going to have a lot of colleagues in
this business. Other realtors that need you, and you need
them. I'm being completely honest. 1976, you get out of it what? Everyone: What you put into it. Robert Rico: I trust in God, I love my country,
and I will respect it's laws, I will play fair and strive to win, but win or lose I
will always do my best. And last but not least, I want you guys to
be creative, to work hard, to learn how to negotiate. Don't be afraid to ask. You've gotta be sociable. You've gotta be likable. You've gotta be likable. How many you here believe you're likable? Really? How many of you believe you can work on that
a little bit? Hey, would you enjoy taking yourself out? Would you enjoy taking yourself out for a
cup of coffee? Audience: Yeah. Robert Rico: Could you sit there with yourself
and have a good cup of coffee, and have good conversation? Audience: Yeah. Robert Rico: If the answer is no ... and seriously,
you've gotta be sociable, you've gotta be likable. Listen, you don't have to ... listen, real
estate. We just went over all the things you must
go through to get your license. What's going to help you get money, what's
gonna help you get business is your likeability factor. Now think about that, I mean it, are you likable? You don't have to be the smartest, you don't
have to be the strongest, you don't have to be the best looking, you just have to be what? Likable. If people like you, they're gonna give you
an opportunity. The brokerage will train ya. The brokerage is gonna help ya, the broker
is gonna make you be the best of the best. But you can't be the best at real estate if
you have no clients. The only way you're gonna get your clients
is to prospect. Prospect, and what's the third one? Audience: Prosper. Robert Rico: Prosper.
