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The Entrepreneurial Web

Friday, July 17, 2020
17
Jul

2020/07/17 - Do You Really Need An Office?

[NEW EPISODE] Do You Really Need An Office?

Matthew Parrella is a broker for real estate cloud brokerage, eXp Realty. About two years ago they made the bold decision to let go of their conveniently-located Midtown office space, choosing to take it to the streets and reinvest in company growth.

Were they ahead of their time with such a move?

Matthew and I have had many conversations about this and other residential & commercial real estate topics over the years on the quiet streets of our picturesque Brooklyn neighborhood, Windsor Terrace. It's a pleasure to welcome him to the show!


Segment 1

“If you got your head in the game things don’t always go the way you thought they would but often show up the way you expected.”

 

Jeremiah introduces the guest of the show, Matthew Parrella. Matthew explains the unique situation of eXp Realty and what differs them from other real estate firms. He explains how the company prioritizes its agents and how they operate in NYC without any offices. The two talk go back and forth about the nature of NY realty in certain neighborhoods

Segment 2

Matthew explains how their cloud office works and different deals and partnerships they have with other companies and local governments. He also talks about the local and international spread of the company and how they give their agents and clients flexibility, establishing offices for themselves all over New York. The two also talk about how the pandemic affected the real estate industry.

Segment 3

The two talk about the state of the realtor industry and project how these will turn out on the other side of quarantine, how the situation has exposed a lot of inefficiently and faults in the current system. Matthew talks about what he’s been hearing about the industry in New York state and how it’s been progressing with the reopening as well as divulging canceled parties and conventions.

Segment 4

Matthew projects on how his business model will fare in the future. Jeremiah talks about how absurd NY realty has gotten, even for brick and mortar businesses. Matthew drops his contact information and company website for listeners.


Transcript

00:00:23.790 --> 00:00:35.190 Jeremiah Fox, The Entrepreneurial Web: Happy Friday everybody. It's that time it's 12 noon the entrepreneurial web is upon you. Now you are stuck in it. We are all stuck in it, as we are in many things.

00:00:35.610 --> 00:00:42.150 Jeremiah Fox, The Entrepreneurial Web: Before we get started, the message of the week. And boy, does this one apply today so

00:00:42.750 --> 00:00:50.790 Jeremiah Fox, The Entrepreneurial Web: Something I heard as a teenager stuck with be morphed it some along the way. But the basic premises. If you've got your head in the game.

00:00:51.210 --> 00:01:03.660 Jeremiah Fox, The Entrepreneurial Web: Things don't always turn out the way you thought they would, but they often turn out the way you expected. Today Show, maybe a perfect reflection of that as the guests that I

00:01:04.320 --> 00:01:19.950 Jeremiah Fox, The Entrepreneurial Web: had planned to come on has not signed on yet. I don't know where he is. We're not in the station. We're all remote so we can kind of do what we want. So definitely not what I thought it was going to be, but you can bet this is going to turn out maybe even better than the way

00:01:21.210 --> 00:01:36.480 Jeremiah Fox, The Entrepreneurial Web: That we expected it. So the topic of today. My guest Matt perella he is managing broker for XP realty he manages the definitely New York City, possibly be our state, possibly even the Northeast.

00:01:38.100 --> 00:01:49.680 Jeremiah Fox, The Entrepreneurial Web: They are a cloud based real estate brokerage and what was fascinating. Matt and I have been neighbors and friends for a long time and the Windsor terrorists neighbor hood of Brooklyn.

00:01:50.070 --> 00:01:59.820 Jeremiah Fox, The Entrepreneurial Web: Representing the fort Hamilton station and we've had many, many, many conversations over the air about residential real estate about commercial real estate about just

00:02:00.210 --> 00:02:11.040 Jeremiah Fox, The Entrepreneurial Web: Business the goings and Cummings of what happens in local communities like the cool one that we live in. And about two years ago. He informed me that his company XP realty was shedding

00:02:11.520 --> 00:02:21.090 Jeremiah Fox, The Entrepreneurial Web: Their Midtown office that they were, they had a centralized office in Midtown where clients will come in and for real estate agents for those of you that don't know kind of what they do.

00:02:21.390 --> 00:02:31.620 Jeremiah Fox, The Entrepreneurial Web: Most of their work. I love their work, especially the one, the stuff that makes the real, the real NUGGETS THE REAL bread and butter is is out, you're out showing spaces and they found that

00:02:32.730 --> 00:02:41.220 Jeremiah Fox, The Entrepreneurial Web: First of all, for those of you that don't know rent in midtown Manhattan is super duper expensive like some of the craziest stuff on the planet.

00:02:41.550 --> 00:02:51.870 Jeremiah Fox, The Entrepreneurial Web: And when you have this office. That's kind of a show, it's, it's kind of you know about face and and not as functional not where you spend most of your time, it really

00:02:52.530 --> 00:03:01.740 Jeremiah Fox, The Entrepreneurial Web: becomes difficult to rationalize spending all that money where we're talking. I mean it easy, easy five figures and in the upper five fingers.

00:03:02.850 --> 00:03:08.850 Jeremiah Fox, The Entrepreneurial Web: When, when you're in that kind of situation. And it looks like we may we may have a live one

00:03:09.240 --> 00:03:10.920 Jeremiah Fox, The Entrepreneurial Web: Hey, are you with us.

00:03:11.220 --> 00:03:12.960 Matt Parrella, eXp Realty: I am with you now. Sorry about the

00:03:13.020 --> 00:03:18.990 Jeremiah Fox, The Entrepreneurial Web: What's going on, right. I can't see you, though, are you just on the call. You're not going to show us your face, not going to show us your pretty face.

00:03:19.680 --> 00:03:20.850 Oh,

00:03:22.140 --> 00:03:22.470 Matt Parrella, eXp Realty: Let me see.

00:03:22.920 --> 00:03:28.200 Jeremiah Fox, The Entrepreneurial Web: Let's just chat for right now we've got, we got a solid 10 minutes for the break, and we can kind of revamp then

00:03:28.230 --> 00:03:28.530 Matt Parrella, eXp Realty: Cool.

00:03:28.590 --> 00:03:32.460 Jeremiah Fox, The Entrepreneurial Web: I just gave everybody the, I don't know if you were listening I talked about you.

00:03:32.880 --> 00:03:33.450 Matt Parrella, eXp Realty: Did you

00:03:33.630 --> 00:03:35.130 Jeremiah Fox, The Entrepreneurial Web: Know I'm kidding, I'm kidding.

00:03:36.600 --> 00:03:37.380 Matt Parrella, eXp Realty: No, I gave you

00:03:37.860 --> 00:03:39.720 Jeremiah Fox, The Entrepreneurial Web: A proper introduction. Let's welcome.

00:03:40.800 --> 00:03:42.030 Jeremiah Fox, The Entrepreneurial Web: To the show everybody. Hello.

00:03:42.030 --> 00:03:42.780 Everybody

00:03:43.950 --> 00:03:49.350 Matt Parrella, eXp Realty: My apologies for being a minute late, I was at. I went out for a run, Jeremiah, and I had to take a quick shower before I jumped out

00:03:49.350 --> 00:03:53.370 Jeremiah Fox, The Entrepreneurial Web: At me right cuz you know surplus. I don't want to smell you through the

00:03:54.660 --> 00:03:55.890 Matt Parrella, eXp Realty: TV going on here.

00:03:55.920 --> 00:04:03.150 Jeremiah Fox, The Entrepreneurial Web: No, no, it's all good brother, you got to work out. I did my workout this morning to um so basically all I did was I, I

00:04:04.080 --> 00:04:12.600 Jeremiah Fox, The Entrepreneurial Web: Mentioned, you know, esp and and I told everybody who you were, and how kind of we got to know each other here in the neighborhood. But I was just explaining how

00:04:12.960 --> 00:04:23.850 Jeremiah Fox, The Entrepreneurial Web: It was it was a couple years ago where you all decided to let go of your office space which is which is way ahead of the kind of work from home seen everybody is is in now and

00:04:24.990 --> 00:04:34.080 Jeremiah Fox, The Entrepreneurial Web: Yeah, I just wanted to talk about. First off, like what was the rationale behind that. Why don't you know every everybody else's got like the the office space and you guys were like, nah.

00:04:34.260 --> 00:04:42.120 Matt Parrella, eXp Realty: We don't need no so. So what happened is really what it was born out of was the founder of the company, Glenn is um

00:04:43.140 --> 00:04:52.440 Matt Parrella, eXp Realty: He was big before a lot of people doing he was big into internet leads and he's on the West Coast. He's based out of Washington State, and he would

00:04:54.240 --> 00:05:11.310 Matt Parrella, eXp Realty: Get a lot of leads and just hand them out for a percentage to people in different states he was running a rather large team doing quite well back in. Oh wait, you know, seven away. We had the, you know, I call it the correction. I don't like to call it the crash. What is that, but

00:05:12.570 --> 00:05:14.730 Matt Parrella, eXp Realty: You know, they start with Lehman Brothers and

00:05:15.900 --> 00:05:23.520 Matt Parrella, eXp Realty: Other other financial giant started to topple and um, you know, some somewhat of a rough time and he decided then

00:05:25.320 --> 00:05:31.830 Matt Parrella, eXp Realty: Why would we have a company has all this overhead. What's the point. And he ended ESP was born out of the mentality that

00:05:33.240 --> 00:05:37.080 Matt Parrella, eXp Realty: A real estate brokerage is nothing without the agents, the agents. The ones who go out and bring in the money.

00:05:37.380 --> 00:05:40.650 Matt Parrella, eXp Realty: Not like you know i mean you don't have a warehouse full of things that you're selling right

00:05:40.830 --> 00:05:46.680 Matt Parrella, eXp Realty: So he said, why should the agents, not be compensated properly. So he started he XP realty

00:05:47.430 --> 00:05:59.910 Matt Parrella, eXp Realty: With the idea of not opening up all of these expensive retail spaces which everybody now is living in realizing, wow, we didn't always need all these these retail space. So it was born out of that. And then what happened that's

00:06:01.290 --> 00:06:13.140 Matt Parrella, eXp Realty: Okay. And then in 2013. He said, I want the agents to have ownership. So he bought a shirt. You know, they bought a shell company and

00:06:14.220 --> 00:06:23.010 Matt Parrella, eXp Realty: started trading over the counter the stock. I think it started out, it came out of the dollar, it probably dropped in 19 cents. Now it's

00:06:23.880 --> 00:06:41.790 Matt Parrella, eXp Realty: Our stock is fairing better than other real estate company stocks, because we're not just XP realty exp world holdings. So we uplifted to the NASDAQ in he was at 18 I think in 2018 we have listed NASDAQ and Charles after the bell ringing in January when we had a we had no

00:06:41.880 --> 00:06:51.630 Matt Parrella, eXp Realty: No, no. So what we have is our company's exp world holdings, which owns the XP realty and the, the idea behind is everybody that's in the company gets stock.

00:06:52.500 --> 00:07:01.830 Matt Parrella, eXp Realty: So when you join you do your first transaction, the company awards your stock I bring somebody into the company, they do their first transaction, the company awards me stock in them stock.

00:07:02.850 --> 00:07:05.100 Matt Parrella, eXp Realty: And the ideas you know people are going to

00:07:06.480 --> 00:07:19.170 Matt Parrella, eXp Realty: Have more pride and retention is going to be better if people on stock, they're not going to be so quick. You know, the, the attrition rate is typically real estate brokerages is probably 35% is the numbers I hear

00:07:19.440 --> 00:07:22.530 Matt Parrella, eXp Realty: Mm hmm. Where you know we're less than a third of that.

00:07:22.890 --> 00:07:34.320 Matt Parrella, eXp Realty: Without even, I don't know, maybe was seven 8%. So, I believe, and I have to check on those numbers to be exactly correct. But if you have stock in the company and the company is taking care of you less likely to jump from, you know, yeah.

00:07:34.350 --> 00:07:34.620 Jeremiah Fox, The Entrepreneurial Web: Sure.

00:07:34.650 --> 00:07:35.610 Matt Parrella, eXp Realty: Well, another to another.

00:07:35.850 --> 00:07:40.830 Jeremiah Fox, The Entrepreneurial Web: Right, it's your if it's your money you're going to take it more seriously. And that's always like the conundrum with management.

00:07:41.940 --> 00:07:51.480 Jeremiah Fox, The Entrepreneurial Web: You know, you're trying to get a bunch of other people to represent your business, but they get their little their little piece you know their little their little earning but they don't have any ownership stake in it that changes the dynamics completely

00:07:51.630 --> 00:07:59.910 Matt Parrella, eXp Realty: Right, right. It's so you know we have this this great program called, it's called a revenue sharing program where I bring somebody in

00:08:01.470 --> 00:08:09.810 Matt Parrella, eXp Realty: Each year, up until they pay their cat, the company awards me a percentage of the business. They do not from their pocket from company dollar

00:08:10.290 --> 00:08:18.900 Matt Parrella, eXp Realty: Because I helped to grow the company and run. And that goes down you I bring you in. You bring somebody else that that person is in my second level and it goes seven levels like that.

00:08:19.410 --> 00:08:35.100 Matt Parrella, eXp Realty: And it is suited to some extent, people will say it's a, you know, multi level marketing, but right there's no requirement to do it. So I'm the managing broker for the XP realty in New York and I have zero requirement to recruit anybody. Mm hmm. Whereas a traditional brokerage

00:08:36.150 --> 00:08:51.540 Matt Parrella, eXp Realty: The manager sitting in the office job is like how many people can I pull out of the office across the street right to come over here I have zero requirement as managing broker to recruit anybody but it's in my personal interest to do so. So I do and I do it in a

00:08:53.010 --> 00:09:03.900 Matt Parrella, eXp Realty: I I stick to doing it in an organic way where I talked to people I know, or people reach out to me. I do not cold call anybody to do that. I just not my my nature or my style so

00:09:03.930 --> 00:09:06.300 Jeremiah Fox, The Entrepreneurial Web: Yeah, you seemed a little too laid back to that you're like,

00:09:06.390 --> 00:09:12.030 Matt Parrella, eXp Realty: Why, yeah. I don't know. Look, I get cold calls, not for me XP by get cold calls from people from

00:09:13.710 --> 00:09:14.310 Matt Parrella, eXp Realty: Whatever.

00:09:14.610 --> 00:09:15.510 Matt Parrella, eXp Realty: LinkedIn different

00:09:16.140 --> 00:09:24.930 Matt Parrella, eXp Realty: facets of business or whatever you want to call it, you know, all the time and I hate it just even myself. I don't like receiving that call. Do I want to go out and

00:09:25.440 --> 00:09:26.280 Matt Parrella, eXp Realty: making that call.

00:09:26.760 --> 00:09:28.650 Jeremiah Fox, The Entrepreneurial Web: Y'all creepy. It's creepy man.

00:09:29.130 --> 00:09:30.360 Matt Parrella, eXp Realty: It's a little creepy.

00:09:30.810 --> 00:09:40.920 Jeremiah Fox, The Entrepreneurial Web: I had to do it once when I was in grad school. I'm just for some quick money. I did it for like three weeks, but we would call the alumni or family of alumni and ask them to

00:09:41.250 --> 00:09:49.710 Jeremiah Fox, The Entrepreneurial Web: You know, to contribute to the annual fund and it was like to the worst weeks of my life prison. I was like, give me the fuck out of here, man. It was awful.

00:09:50.010 --> 00:09:51.900 Matt Parrella, eXp Realty: I get the culture. My daughter's college pretty

00:09:52.200 --> 00:09:54.720 Jeremiah Fox, The Entrepreneurial Web: Bad and you go into for a long time. I

00:09:55.740 --> 00:09:59.370 Jeremiah Fox, The Entrepreneurial Web: Think thing is you're gonna get more of them coming up because they're gonna be strapped for cash.

00:10:01.080 --> 00:10:02.670 Matt Parrella, eXp Realty: Wishing and everything else in and it's like

00:10:03.360 --> 00:10:04.650 Matt Parrella, eXp Realty: I get it. You need more money from me.

00:10:04.710 --> 00:10:07.290 Jeremiah Fox, The Entrepreneurial Web: Well yeah yeah so so great.

00:10:08.010 --> 00:10:19.740 Matt Parrella, eXp Realty: You don't have one, I get every day. Jeremiah multiple times a day, what people call me up because they they go. Alright, so I have a salary position with the XP. Right. But I also have my own

00:10:20.820 --> 00:10:24.750 Matt Parrella, eXp Realty: Corporation, and I still get 1099 myself.

00:10:25.110 --> 00:10:25.470 Jeremiah Fox, The Entrepreneurial Web: Yeah.

00:10:25.710 --> 00:10:30.300 Matt Parrella, eXp Realty: They call. Every day I get phone calls people call me up telling me they want to give me money for my business.

00:10:30.480 --> 00:10:31.470 Jeremiah Fox, The Entrepreneurial Web: I get those

00:10:31.590 --> 00:10:32.490 Jeremiah Fox, The Entrepreneurial Web: All the time.

00:10:32.640 --> 00:10:34.410 Matt Parrella, eXp Realty: Who wants to give you money. Come on. Right.

00:10:34.860 --> 00:10:36.060 Jeremiah Fox, The Entrepreneurial Web: Nobody give no nothing.

00:10:36.090 --> 00:10:41.220 Matt Parrella, eXp Realty: Would you run around get I'm not running around giving out money. So, no, no, no, no, no.

00:10:41.520 --> 00:10:44.250 Jeremiah Fox, The Entrepreneurial Web: And the other thing I get them from big time lately is

00:10:45.420 --> 00:10:53.760 Jeremiah Fox, The Entrepreneurial Web: It's all these arm. They're not government back loans, but it's the same kind of thing like people posing like they're offering kind of a PPP kind of thing for

00:10:53.970 --> 00:11:00.420 Jeremiah Fox, The Entrepreneurial Web: Ya know, for the restaurant for the wine store for everything. And I'm like, yo, get out of here. Your garbage. I didn't take them from the government or definitely not taking no

00:11:01.050 --> 00:11:06.990 Matt Parrella, eXp Realty: No I urged me to go out and apply and they're like, you know, my cuz you still get 1099 income from selling

00:11:06.990 --> 00:11:07.950 Jeremiah Fox, The Entrepreneurial Web: Yeah yeah

00:11:08.010 --> 00:11:18.240 Matt Parrella, eXp Realty: You technically could go out and apply. And it's like, look, you know what, I probably could. But I'm getting a salary, so like sure there's somebody else who says it's got to be somebody else who needs it more than I do. Right.

00:11:18.270 --> 00:11:21.330 Jeremiah Fox, The Entrepreneurial Web: Absolutely, absolutely. That's there's

00:11:21.360 --> 00:11:24.000 Matt Parrella, eXp Realty: There's a burden, that's gonna there's a burden, that's going to be

00:11:24.540 --> 00:11:28.620 Jeremiah Fox, The Entrepreneurial Web: Carried by society, once this is all over, especially for all the companies that took it that

00:11:28.980 --> 00:11:38.130 Jeremiah Fox, The Entrepreneurial Web: You know, the people that used it in an agile fashion. You know that that burden is going to get passed down and everybody's didn't have to deal with it and I feel the same. I have no interest in contributing to that.

00:11:38.160 --> 00:11:40.620 Jeremiah Fox, The Entrepreneurial Web: So I don't need to like we we roll our sleeves up

00:11:40.890 --> 00:11:46.200 Jeremiah Fox, The Entrepreneurial Web: And we did it. You know, we're not out of the woods yet, but things are much better and and we didn't borrow a dime and

00:11:46.200 --> 00:11:46.680 Matt Parrella, eXp Realty: Go get

00:11:46.710 --> 00:11:48.150 Matt Parrella, eXp Realty: Closer to the edge of the forest, though.

00:11:48.390 --> 00:11:49.200 Jeremiah Fox, The Entrepreneurial Web: Yeah, let's hope.

00:11:50.610 --> 00:11:51.690 Matt Parrella, eXp Realty: I believe I believe

00:11:52.320 --> 00:11:54.030 Jeremiah Fox, The Entrepreneurial Web: Let's stay in New York. We ain't going nowhere.

00:11:54.900 --> 00:11:56.940 Matt Parrella, eXp Realty: Prospect of us looking pretty busy again.

00:11:57.210 --> 00:12:08.850 Jeremiah Fox, The Entrepreneurial Web: It's great prospect is great. I mean most of Brooklyn. I think isn't a isn't a pretty good state Manhattan will get when we come back from our break. We're going to take a break in a minute. We'll talk more about that and like just what the departure from

00:12:09.150 --> 00:12:13.110 Jeremiah Fox, The Entrepreneurial Web: Your office space was like and and kind of what's happening there because

00:12:13.650 --> 00:12:17.760 Jeremiah Fox, The Entrepreneurial Web: It's a little bit of a different scene. I mean, some of the residential neighborhoods. And I think that's what really

00:12:18.000 --> 00:12:26.430 Jeremiah Fox, The Entrepreneurial Web: What we're coming down to now is like people have to work from home now. So an area like winter terrorists Park Slope Kensington these neighborhoods, which are mainly houses.

00:12:26.700 --> 00:12:37.710 Jeremiah Fox, The Entrepreneurial Web: You know there's business districts dissecting them are intersecting them on, you know, their fairing okay because all the people are kind of here, most people aren't going on like the especially the European vacations.

00:12:37.980 --> 00:12:38.670 Because you can't go.

00:12:40.140 --> 00:12:40.680 Jeremiah Fox, The Entrepreneurial Web: Wrong.

00:12:40.890 --> 00:12:46.380 Jeremiah Fox, The Entrepreneurial Web: People are people are going kind of regional people aren't leaving for the entire summer like they like they've done in the past and

00:12:47.190 --> 00:12:51.150 Jeremiah Fox, The Entrepreneurial Web: And it's it's put local businesses kind of back in the spotlight.

00:12:51.450 --> 00:12:59.850 Jeremiah Fox, The Entrepreneurial Web: Where I think the less residential neighborhoods of Manhattan, in particular, like there are some spots. I know where there's, you know, there's a concentration of people living there.

00:13:00.060 --> 00:13:07.440 Jeremiah Fox, The Entrepreneurial Web: And they're experiencing the same, but there are entire parts of it where there's not that many people living there, and there's nobody going into their offices, so

00:13:07.650 --> 00:13:14.640 Jeremiah Fox, The Entrepreneurial Web: You know, is that like what this domino effect that's gonna that's gonna be that's going to be talking about being

00:13:15.270 --> 00:13:27.300 Jeremiah Fox, The Entrepreneurial Web: You know, back in the forest and not not being able to see the end that's a, you know, it's just a few miles away, but it's crazy. The big the extent to the depth. How far back in the in the rabbit hole, they are

00:13:27.840 --> 00:13:31.980 Jeremiah Fox, The Entrepreneurial Web: So we're gonna we're gonna take a quick break. We'll pick up with that when we get back and talk about

00:13:32.580 --> 00:13:44.190 Jeremiah Fox, The Entrepreneurial Web: You know your company's more about your company's decision to leave the office and kind of what everybody else is dealing with and maybe maybe get your video you'll this up, but it's a pretty guy got to see his face.

00:13:44.280 --> 00:13:47.610 Jeremiah Fox, The Entrepreneurial Web: He said, Everybody will be back in just a few you're listening to the entrepreneurial web

00:13:48.060 --> 00:13:48.960 Matt Parrella, eXp Realty: Talk to you on bit

00:15:56.940 --> 00:16:12.030 Jeremiah Fox, The Entrepreneurial Web: Okay everybody, we're back. Once again, it's the entrepreneurial web Friday. High Noon talking with my friend and neighbor XP realty managing broker Matt perella Matt, are you here. Can we see you are they stuck. Looking at my ugly mug. The whole hour

00:16:15.300 --> 00:16:16.170 Matt Parrella, eXp Realty: Can you hear me now.

00:16:16.230 --> 00:16:18.630 Jeremiah Fox, The Entrepreneurial Web: Yeah, I can hear you now. I can't see you.

00:16:19.320 --> 00:16:19.590 Guys.

00:16:20.760 --> 00:16:22.260 Jeremiah Fox, The Entrepreneurial Web: 30 years. I mean, sorry.

00:16:22.350 --> 00:16:23.340 Matt Parrella, eXp Realty: Time that I come on

00:16:24.870 --> 00:16:26.760 Matt Parrella, eXp Realty: My face up on the screen with you.

00:16:27.120 --> 00:16:29.190 Jeremiah Fox, The Entrepreneurial Web: Matt told you don't know how to work technology but

00:16:30.870 --> 00:16:32.220 Matt Parrella, eXp Realty: I do some extent. I'm okay.

00:16:32.640 --> 00:16:46.350 Jeremiah Fox, The Entrepreneurial Web: I'm kidding, I'm kidding. Not so good, man. I feel like I look that bad, today I was out in the sun, yesterday I took a shower after I worked out. So, um, so, when was it exactly that XP decided to shed the it was the space at

00:16:46.770 --> 00:16:48.900 Matt Parrella, eXp Realty: The end was really founded that way.

00:16:49.080 --> 00:16:50.760 Jeremiah Fox, The Entrepreneurial Web: The way that we are right why it's

00:16:51.060 --> 00:16:53.370 Jeremiah Fox, The Entrepreneurial Web: Called a cloud based brokerage right

00:16:53.910 --> 00:16:55.620 Matt Parrella, eXp Realty: Well, so. Okay, so what happened is

00:16:57.030 --> 00:17:05.040 Matt Parrella, eXp Realty: The idea was to create the cloud office. This is back before I was with the company, they went to a company called ver Bella.

00:17:05.940 --> 00:17:14.400 Matt Parrella, eXp Realty: Who's a technology company and rubella created this cloud office. It's called the XP world and what I will do is I will give you a guest pass you can come in and check it out because it's really cool.

00:17:14.580 --> 00:17:15.150 Jeremiah Fox, The Entrepreneurial Web: Oh, nice.

00:17:15.180 --> 00:17:17.460 Matt Parrella, eXp Realty: Lot and I have my own office in there.

00:17:18.570 --> 00:17:25.110 Matt Parrella, eXp Realty: We have everything from from a tech OUTPOST TO agent services to Team Services to accounting

00:17:26.910 --> 00:17:34.800 Matt Parrella, eXp Realty: Agent experience marketing department can go in and get any help you need for anything. And it's it's really cool. And they've won a lot of awards for this because

00:17:35.910 --> 00:17:47.430 Matt Parrella, eXp Realty: It's so cool and interactive, to the extent that we have speedboats we have a pirate ship. We have a soccer field, I kid you not. We don't want we can go in and you can play soccer with your avatars, you create your avatar.

00:17:48.870 --> 00:17:51.090 Matt Parrella, eXp Realty: And you go in and you can give yourself. This is

00:17:51.090 --> 00:17:54.030 Jeremiah Fox, The Entrepreneurial Web: Yours. Now I know why you were late to the show.

00:17:56.790 --> 00:17:58.170 Jeremiah Fox, The Entrepreneurial Web: You were Jets game works.

00:17:59.760 --> 00:18:02.610 Matt Parrella, eXp Realty: Everything in that cloud office without having to leave the

00:18:02.610 --> 00:18:02.880 Jeremiah Fox, The Entrepreneurial Web: House.

00:18:02.910 --> 00:18:03.540 Matt Parrella, eXp Realty: It's amazing.

00:18:04.260 --> 00:18:12.360 Matt Parrella, eXp Realty: And rubella. The company that ESP contracted to to build that actually last year and earlier in

00:18:13.440 --> 00:18:18.060 Matt Parrella, eXp Realty: ESP world holdings bought for Bella. So we now own that technology and it doesn't. I

00:18:18.090 --> 00:18:19.110 Jeremiah Fox, The Entrepreneurial Web: Do remember you telling me that

00:18:19.170 --> 00:18:24.390 Matt Parrella, eXp Realty: Yeah, we do it for for our cloud office for ourselves, but it also

00:18:25.710 --> 00:18:36.240 Matt Parrella, eXp Realty: We license it out. We have contracts with the US government number of like California and other states online college education.

00:18:36.660 --> 00:18:37.290 Jeremiah Fox, The Entrepreneurial Web: Wow, so you got

00:18:37.500 --> 00:18:38.160 Jeremiah Fox, The Entrepreneurial Web: To blow up.

00:18:38.730 --> 00:18:41.010 Matt Parrella, eXp Realty: So I'm going to tell you what happened with rebel is

00:18:41.370 --> 00:18:42.660 Matt Parrella, eXp Realty: During this time of coven

00:18:43.920 --> 00:18:50.370 Matt Parrella, eXp Realty: rubella is gone insane. So one of my admins that that works with me on my New York State team.

00:18:51.360 --> 00:18:56.130 Matt Parrella, eXp Realty: Was offered you know obviously real estate was going to change a little this little short time period here. Yeah.

00:18:56.730 --> 00:19:06.330 Matt Parrella, eXp Realty: Rather than they'd be like, oh, they said, you want a job, they took it over Bella, so she's already in the company didn't have to, you know, doing redo any paperwork or anything. She just moved over to her Bella, hmm, and

00:19:07.470 --> 00:19:12.120 Matt Parrella, eXp Realty: My other admin is actually going to rebel as well. She was offered a

00:19:13.410 --> 00:19:21.270 Matt Parrella, eXp Realty: Better said, you know, higher pay and more room for advancement. So I'm getting two new admins, from New York to be on my team and

00:19:22.800 --> 00:19:31.740 Matt Parrella, eXp Realty: It's, it's great. It's very cool. In the sense to that I have people on my team that we run, New York. So there's me and there's Kim is the other broker. She's based out Long Island.

00:19:32.790 --> 00:19:42.330 Matt Parrella, eXp Realty: I then have to people call my compliance payments specialist who look over everybody's files because we keep everything compliant. Yeah, up to where it's supposed to be.

00:19:44.640 --> 00:19:48.660 Matt Parrella, eXp Realty: And one of them's based in Rochester, New York, one of those based in Long Island.

00:19:49.140 --> 00:19:57.600 Matt Parrella, eXp Realty: I have one of my admins was in Buffalo ones in in Texas one, the one who's coming on. It's going to be my my admin. Now she's based out of Texas, so

00:19:58.140 --> 00:20:05.490 Matt Parrella, eXp Realty: You know we interact with people all over the place. And it also as an agent. It also helps us to do business all over the place.

00:20:06.060 --> 00:20:14.310 Matt Parrella, eXp Realty: Right. Somebody I partner with now she's based out of Philadelphia. She's licensed in Pennsylvania, but she's also licensed in New York under my license in the city.

00:20:15.060 --> 00:20:25.020 Matt Parrella, eXp Realty: And you know we do business together in multiple different places with, you know, clients, ranging from multifamily purchasers hotel clients hotel operators.

00:20:26.520 --> 00:20:34.920 Matt Parrella, eXp Realty: So I just love. I love that whole aspect of it that I get to interact with people all over the place. And we're not just in all 50 states, we're now all across

00:20:36.090 --> 00:20:42.780 Matt Parrella, eXp Realty: I think whatever seven or eight Canadian provinces, as well as Australia and the United Kingdom, hmm, so it's

00:20:44.160 --> 00:20:50.520 Matt Parrella, eXp Realty: It's very cool in that aspect as well. So somebody on my team. Somebody who I personally recruited to the company.

00:20:51.930 --> 00:21:04.860 Matt Parrella, eXp Realty: Her mother's family Orland England. So she's bringing people in in England, that will be in my revenue share downline so I never had that anywhere else and never had to do that anywhere else. So it's, um,

00:21:06.570 --> 00:21:07.800 Matt Parrella, eXp Realty: I just, I think it's awesome.

00:21:08.100 --> 00:21:11.610 Jeremiah Fox, The Entrepreneurial Web: Basic know it's it's fascinating it's similar. It's like marketing, you know, you

00:21:12.270 --> 00:21:27.660 Jeremiah Fox, The Entrepreneurial Web: If you're, if you're a, you know, local brick and mortar place and you just mark it on billboards and like local television networks. That's the only people you're gonna you know they're going to notice you but if you if you go digital, all of a sudden, you know, the world is your oyster.

00:21:28.710 --> 00:21:40.320 Jeremiah Fox, The Entrepreneurial Web: Maybe even some other planets. For all we know, but um did. That's the fascinating thing of the digital reach. So where was the was the you guys had an office, though, and and

00:21:40.830 --> 00:21:42.300 Matt Parrella, eXp Realty: No. There was never really

00:21:42.900 --> 00:21:45.540 Jeremiah Fox, The Entrepreneurial Web: There was something you told me that you were like, We we let go of our office.

00:21:46.050 --> 00:21:47.370 Matt Parrella, eXp Realty: There's ok so

00:21:48.510 --> 00:21:53.160 Matt Parrella, eXp Realty: The main office of the XP Realty is based in Washington State.

00:21:54.210 --> 00:22:00.660 Matt Parrella, eXp Realty: Okay and this an office there but like even if he is the founder of the companies like he's like nobody really goes in there.

00:22:00.960 --> 00:22:01.530 Jeremiah Fox, The Entrepreneurial Web: Yeah, you know,

00:22:01.650 --> 00:22:13.740 Matt Parrella, eXp Realty: I think a couple of people might go in there like human resource or something. But, um, we're not that we're not set up like that. So the way we're set up is, you know, what does anybody know what Regis R eg us regional offices are

00:22:14.280 --> 00:22:15.450 Jeremiah Fox, The Entrepreneurial Web: Hey, I've heard of it before. Yeah.

00:22:15.600 --> 00:22:32.370 Matt Parrella, eXp Realty: Okay, read this is around since before we work. Okay, it's quite frankly better run. So we have it. We have a corporate account with Regis offices right so Regis office is this I 3000 and something of them around the world.

00:22:32.640 --> 00:22:32.970 Hmm.

00:22:34.470 --> 00:22:35.040 Matt Parrella, eXp Realty: So,

00:22:36.090 --> 00:22:44.580 Matt Parrella, eXp Realty: We operate at a religious offices, so anybody who joins us me. Anybody else you can go to any Regis office anywhere and use the business hours for free. You get Wi Fi.

00:22:44.850 --> 00:22:58.710 Matt Parrella, eXp Realty: You can plug in your phone, your laptop. There's a kitchen is always clean restrooms, anything you need is there. You can use any Regis office. So as a for instance I can technically go into Manhattan. I have 38 different offices, I can go in

00:22:58.710 --> 00:23:06.600 Matt Parrella, eXp Realty: Right, it's 38 Regis office now at the state level, we have to have Office illegal address to put people's licenses. Right.

00:23:07.260 --> 00:23:08.340 Jeremiah Fox, The Entrepreneurial Web: So I technically have

00:23:09.000 --> 00:23:10.500 Matt Parrella, eXp Realty: I do have an office with a desk.

00:23:11.010 --> 00:23:18.270 Matt Parrella, eXp Realty: At 43rd AND BROADWAY in Times Square. I have one in the financial district at 165 Broadway right next to the Trade Center.

00:23:18.690 --> 00:23:29.670 Matt Parrella, eXp Realty: And then I have one in downtown Brooklyn at one Pierpont Plaza. We also have read this offices in White Plains. Valley Stream low morale and hop hog Long Island Buffalo, New York.

00:23:30.690 --> 00:23:36.270 Matt Parrella, eXp Realty: And then we do allow agents. If somebody has their own brokerage and they want to bring a team over

00:23:37.380 --> 00:23:40.230 Matt Parrella, eXp Realty: We allow them on a, you know,

00:23:41.880 --> 00:23:47.790 Matt Parrella, eXp Realty: We have to approve it. Not everybody you know I don't want 75 offices next to each other, but we allow people have team offices.

00:23:48.360 --> 00:24:00.600 Matt Parrella, eXp Realty: That then they you know they maintain but I'm mostly we're not that go and get the big expensive, you know, corner space. How many people are walking in, it's not working business anymore.

00:24:00.720 --> 00:24:01.740 Jeremiah Fox, The Entrepreneurial Web: Right, right.

00:24:02.130 --> 00:24:02.370 Matt Parrella, eXp Realty: I mean,

00:24:02.760 --> 00:24:11.160 Jeremiah Fox, The Entrepreneurial Web: It's definitely not going to be going forward. But I seen other places downsize and and get rid of, you know, they're, they're, like,

00:24:11.610 --> 00:24:22.920 Jeremiah Fox, The Entrepreneurial Web: posh corner offices with all the windows and you know you need some visibility, I think. But, uh, but yeah, they were saying that they just weren't. They were never in there people that were in there and nobody else

00:24:23.070 --> 00:24:29.610 Matt Parrella, eXp Realty: Right. But think about this, who's really paying for that. Yeah, agents are going. I mean, I have three new york city offices. Right.

00:24:30.720 --> 00:24:34.590 Matt Parrella, eXp Realty: That cost us, I mean a fraction of what one corner office would cost.

00:24:35.580 --> 00:24:40.830 Jeremiah Fox, The Entrepreneurial Web: Right, because you're not you you need, like you said you need the address. You need the physical address for the license, might as

00:24:41.040 --> 00:24:43.830 Matt Parrella, eXp Realty: Well, completely compliant with the New York State Department of State.

00:24:43.950 --> 00:24:44.280 Jeremiah Fox, The Entrepreneurial Web: Right.

00:24:44.610 --> 00:24:48.720 Matt Parrella, eXp Realty: We just, you know, have I don't know if they have all these big offices and pay all the

00:24:49.320 --> 00:24:53.250 Jeremiah Fox, The Entrepreneurial Web: Right, you can cut your costs and have your little corner like closet space right and

00:24:53.580 --> 00:25:06.840 Matt Parrella, eXp Realty: I knew I no longer company in Manhattan. I mean, technically, if you think about this, this reach us offices all across the city. I've gone in to one Rockefeller Plaza. There's a Regis office. I can go use that office right at Rockefeller Center Time Square.

00:25:07.920 --> 00:25:10.890 Matt Parrella, eXp Realty: Financial District Soho.

00:25:12.000 --> 00:25:16.140 Matt Parrella, eXp Realty: All of Eastside Westside all over the place. But when I paying for all that

00:25:17.220 --> 00:25:29.130 Jeremiah Fox, The Entrepreneurial Web: That's the drive yeah and and I think that's really going to be a model going forward. I mean, I don't know from other people in other industries, you've spoken to who traditionally had office space so

00:25:29.280 --> 00:25:29.820 Matt Parrella, eXp Realty: This is why

00:25:30.060 --> 00:25:32.430 Matt Parrella, eXp Realty: This is why our tech on rebel is going crazy right now.

00:25:32.640 --> 00:25:41.220 Jeremiah Fox, The Entrepreneurial Web: Right. And I had another guy on I had another guy on recently who he's the CEO of first first to media and this is live streaming company.

00:25:41.460 --> 00:25:46.620 Jeremiah Fox, The Entrepreneurial Web: And he, like, put it together because he loves music and people were live streaming and he was like, okay, and it was kind of like

00:25:47.040 --> 00:25:58.620 Jeremiah Fox, The Entrepreneurial Web: They were doing well. They were like, kind of cruising along and then March hit, he's just like, holy shit like everybody in the world is live streaming right now. So it just like bam caught on. I mean, we all can't be zoom. But, uh, you

00:25:58.710 --> 00:26:06.990 Jeremiah Fox, The Entrepreneurial Web: Know if we could be first and second runner up but uh yeah and you know from speaking to other real estate agents. I know especially

00:26:07.530 --> 00:26:11.610 Jeremiah Fox, The Entrepreneurial Web: In New Jersey and other parts of the country, you know, they all had to

00:26:12.180 --> 00:26:23.040 Jeremiah Fox, The Entrepreneurial Web: Go to like Virtual. Virtual home tours, you know, people were leaving the city and buying homes without ever seeing them just taking like an inspectors report they just saw like a, you know,

00:26:23.430 --> 00:26:33.090 Jeremiah Fox, The Entrepreneurial Web: This is literally like sometimes somebody's holding their phone walking through the the property showing it and people were were buying houses that way. It's insane. We're not talking

00:26:33.540 --> 00:26:45.180 Jeremiah Fox, The Entrepreneurial Web: About that, per se, necessarily, but, um, but the idea that so many people I know like production companies. Same thing where we just don't have to have that physical office people really saw what

00:26:46.080 --> 00:26:52.140 Jeremiah Fox, The Entrepreneurial Web: Was necessary for their business to survive because their back was against the wall and if it wasn't. They were like, let's get rid of this.

00:26:53.070 --> 00:26:54.300 Matt Parrella, eXp Realty: Yeah it um

00:26:55.740 --> 00:26:58.260 Matt Parrella, eXp Realty: People are really starting to realize it in this time that

00:26:59.670 --> 00:27:05.580 Matt Parrella, eXp Realty: I'm thank you know, look, it's not to say that there is, there isn't some benefits. Sometimes that being in person with somebody

00:27:06.600 --> 00:27:11.850 Matt Parrella, eXp Realty: We can still do that. Like I said, I can go, buddy. Any one of these 38 offices in Manhattan. I got one in downtown Brooklyn.

00:27:12.510 --> 00:27:25.530 Matt Parrella, eXp Realty: I could I could be in in Jersey or Connecticut or California or anywhere. And I can go in and use a Regis office that I want to meet somebody in person. We can still do that. It's just too. I know people in other companies.

00:27:26.910 --> 00:27:33.450 Matt Parrella, eXp Realty: That that are telling me like they're like my like only office in this we got this huge drop as well, these desks, there's two people in the office.

00:27:33.570 --> 00:27:33.960 Jeremiah Fox, The Entrepreneurial Web: Yeah.

00:27:34.230 --> 00:27:35.340 Matt Parrella, eXp Realty: And they're paying go like to

00:27:35.340 --> 00:27:36.870 Jeremiah Fox, The Entrepreneurial Web: 50 grand a month for it.

00:27:36.870 --> 00:27:38.610 Matt Parrella, eXp Realty: Probably right i mean i knew one

00:27:38.640 --> 00:27:43.320 Matt Parrella, eXp Realty: One place they would. It was spending $110,000 a month right Manhattan.

00:27:43.620 --> 00:27:43.920 Jeremiah Fox, The Entrepreneurial Web: Right.

00:27:44.010 --> 00:27:46.410 Matt Parrella, eXp Realty: What they turn the lights on. Right.

00:27:47.460 --> 00:27:51.900 Matt Parrella, eXp Realty: Agents got to pay for that. That's the issue. Only one generating money right so

00:27:52.980 --> 00:27:59.040 Matt Parrella, eXp Realty: Every everybody's going in there every day and the beginning of benefit from it. That'd be one thing, but I don't see that being the case.

00:27:59.250 --> 00:28:02.970 Jeremiah Fox, The Entrepreneurial Web: So yeah, and I think a lot of people came to that realization

00:28:04.020 --> 00:28:14.460 Jeremiah Fox, The Entrepreneurial Web: Over the last couple months and i think i think that idea, like what you were talking about with Regis where where it's going to be more of a shared space not, you know, not necessarily a we were kind of situation. But, um,

00:28:14.940 --> 00:28:23.970 Jeremiah Fox, The Entrepreneurial Web: Where you're just contracting out a couple days a week or on an ad hoc basis even where people actually need to physically come together.

00:28:24.990 --> 00:28:27.570 Jeremiah Fox, The Entrepreneurial Web: They're going to utilize it that way and save a ton of money.

00:28:28.710 --> 00:28:37.380 Jeremiah Fox, The Entrepreneurial Web: Rather than trying to maintain. I mean, people just walked away from their spaces because they couldn't they weren't bringing it especially the companies that were totally shut down couldn't bring in any revenue.

00:28:37.800 --> 00:28:42.900 Jeremiah Fox, The Entrepreneurial Web: You know, the last thing they want to do is pay for an office space that they were not utilizing

00:28:44.010 --> 00:28:44.370 Matt Parrella, eXp Realty: All right.

00:28:45.000 --> 00:28:49.710 Jeremiah Fox, The Entrepreneurial Web: We're gonna take another break we'll be back in just a minute. Everybody hang tight you listening to the entrepreneurial web

00:28:50.340 --> 00:28:50.850 All right.

00:30:59.280 --> 00:30:59.970 We're back.

00:31:09.600 --> 00:31:19.110 Jeremiah Fox, The Entrepreneurial Web: Okay everybody, we're back once again you're listening to the entrepreneurial web. I'm your host, Jeremiah, Fox here with my guest Matt perella he is an XP realty

00:31:19.470 --> 00:31:25.260 Jeremiah Fox, The Entrepreneurial Web: Managing broker in New York state based in New York City. We've been discussing the fact that

00:31:25.620 --> 00:31:35.040 Jeremiah Fox, The Entrepreneurial Web: His company does not have an office they worked remotely they've gone through a company called Regis where they can utilize office space throughout the world.

00:31:35.550 --> 00:31:44.250 Jeremiah Fox, The Entrepreneurial Web: Essentially wherever reach says offices, keeping the cost down. They also have a very interesting tiered system for recruitment and for profit share

00:31:44.820 --> 00:31:59.580 Jeremiah Fox, The Entrepreneurial Web: What are some of the other ways, Matt, can you you share with everybody that this, this type of company has benefited, especially its employees, like you said, they get part ownership, they're not

00:32:00.510 --> 00:32:11.820 Jeremiah Fox, The Entrepreneurial Web: They're not tasked with the burden of paying exorbitant rents, especially in some of the high profile cities that they're in what are, what are some of the other benefits of this type of structure.

00:32:12.150 --> 00:32:16.500 Jeremiah Fox, The Entrepreneurial Web: For its people, because the people right now want to know that people are like,

00:32:16.800 --> 00:32:30.720 Jeremiah Fox, The Entrepreneurial Web: What the hell is going to happen in my company with if we don't have an office, then who are we like identity is out. What are some of the ways that your company has built identity within its, its employees and and part owners.

00:32:32.550 --> 00:32:33.210 Jeremiah Fox, The Entrepreneurial Web: Along the way,

00:32:33.540 --> 00:32:35.850 Matt Parrella, eXp Realty: Well, we are we're interesting in the fact that

00:32:37.170 --> 00:32:39.540 Matt Parrella, eXp Realty: There's a couple of different things. I'll give you here is

00:32:40.080 --> 00:32:42.450 Matt Parrella, eXp Realty: So we don't have. We don't have a

00:32:43.770 --> 00:32:47.190 Matt Parrella, eXp Realty: I'm not going to name any other companies because it's not my place to do that. But there are other

00:32:47.910 --> 00:32:48.660 Jeremiah Fox, The Entrepreneurial Web: Kind of show man.

00:32:49.140 --> 00:33:02.820 Matt Parrella, eXp Realty: And they give all kinds of competition. I want to get that team. So they give this one a special deal on that one. A special deal and they buy other brokerages we don't go out and buy people we have this amazing package this fantastic model.

00:33:04.140 --> 00:33:10.800 Matt Parrella, eXp Realty: Your benefit is to come and be a part of it. And so me as a managing broker running New York State.

00:33:11.910 --> 00:33:19.050 Matt Parrella, eXp Realty: If you joined us today you will get the same compensation package is made. We don't run around. There's no special deal. Everybody gets

00:33:21.000 --> 00:33:25.050 Matt Parrella, eXp Realty: You start each year and an 8020 split so you get 80% of your Commission.

00:33:26.070 --> 00:33:30.510 Matt Parrella, eXp Realty: When you hit and I don't know who he is going to know what GCI is, but it's called gross Commission income.

00:33:31.140 --> 00:33:42.780 Matt Parrella, eXp Realty: Gross Commission income will be the gross amount of commission that I'm responsible for bringing in with us when if an 8020 split. Once you hit 80,000 and gross Commission income, which I'll give you an example.

00:33:43.920 --> 00:33:51.450 Matt Parrella, eXp Realty: For tickets all across the country here in New York City. It's not. It's really not a big deal because I gave her, for instance, I got a friend who just joined us.

00:33:52.590 --> 00:33:57.780 Matt Parrella, eXp Realty: He sold a nice brownstone got $180,000 Commission.

00:33:58.170 --> 00:33:58.500 Jeremiah Fox, The Entrepreneurial Web: Only

00:33:58.860 --> 00:34:09.840 Matt Parrella, eXp Realty: You only paying 8020 split up to 80,000 and then you're 100% for the year. So this guy is not 100% split for the year. Yeah, I had that way. And I knew him from the company. I used to be yet, right. So,

00:34:10.230 --> 00:34:22.530 Matt Parrella, eXp Realty: Our compensation package much better because we're not paying for redundant salaries, we're not paying for big glass storefronts and in copy machines and you know we're not paying for all that stuff.

00:34:23.340 --> 00:34:26.430 Matt Parrella, eXp Realty: Machines need to. You don't need to. If

00:34:26.490 --> 00:34:30.210 Matt Parrella, eXp Realty: I can do a transaction 100% for me paperless

00:34:30.960 --> 00:34:38.970 Matt Parrella, eXp Realty: I put everything in digit science send out my forms to be digitally signed and submitted back into what we call we have sky slope, which is our transaction management system.

00:34:40.380 --> 00:34:44.850 Matt Parrella, eXp Realty: I'm not keeping file cabinets, full of paper. Right. You know, I mean, we don't that's

00:34:45.240 --> 00:34:53.550 Jeremiah Fox, The Entrepreneurial Web: And who's. What's the company you always see the trucks. I sit. When I was in ad sales. I used to get a prepare all these boxes that they they shred, they're like, uh,

00:34:54.210 --> 00:34:55.080 Matt Parrella, eXp Realty: Oh, you have to try

00:34:55.170 --> 00:34:55.890 Matt Parrella, eXp Realty: It comes around.

00:34:55.920 --> 00:34:59.970 Jeremiah Fox, The Entrepreneurial Web: What is it like blue blue something or iron something. I see. I still see

00:35:01.380 --> 00:35:01.860 Matt Parrella, eXp Realty: You know what is

00:35:01.980 --> 00:35:02.460 Matt Parrella, eXp Realty: Like a

00:35:02.730 --> 00:35:03.870 Matt Parrella, eXp Realty: CSV member

00:35:04.110 --> 00:35:07.590 Jeremiah Fox, The Entrepreneurial Web: That's right. Exactly, exactly. Well, but if we used to get these

00:35:07.590 --> 00:35:12.480 Jeremiah Fox, The Entrepreneurial Web: boxes and boxes and boxes was like tons of paper, you know, and they would, they would like.

00:35:13.290 --> 00:35:13.860 Matt Parrella, eXp Realty: The planet.

00:35:14.100 --> 00:35:16.110 Jeremiah Fox, The Entrepreneurial Web: Right, right. Well, we don't

00:35:16.560 --> 00:35:18.360 Jeremiah Fox, The Entrepreneurial Web: We don't know what five g's doing yet but

00:35:18.540 --> 00:35:25.170 Matt Parrella, eXp Realty: Did you see the stats on on a lot of urban areas around the country that with everybody, not driving into an office.

00:35:25.170 --> 00:35:28.950 Matt Parrella, eXp Realty: Everybody the pollution rate has gone. It's like

00:35:29.310 --> 00:35:30.600 Matt Parrella, eXp Realty: God yeah for more

00:35:30.870 --> 00:35:31.890 Jeremiah Fox, The Entrepreneurial Web: The emissions. Yeah.

00:35:32.340 --> 00:35:35.520 Jeremiah Fox, The Entrepreneurial Web: Yeah, I'm Sam just buzzed in Iron Mountain.

00:35:37.860 --> 00:35:40.410 Jeremiah Fox, The Entrepreneurial Web: Sam, Sam. I still do paperwork. That's what

00:35:42.060 --> 00:35:52.290 Matt Parrella, eXp Realty: The office. I used to work. They were used to have my license, they would I'm data truck people the sales manager go around and like everybody you know people's desks.

00:35:52.350 --> 00:35:54.780 Jeremiah Fox, The Entrepreneurial Web: Piling up with paper. Yeah. Get your shit together.

00:35:54.780 --> 00:35:56.460 Matt Parrella, eXp Realty: Yeah, Thursday, someone sells cars.

00:35:57.390 --> 00:36:04.290 Matt Parrella, eXp Realty: In the morning. Yeah. And you would you see giant mounds of boxes of paper and it was like, wow.

00:36:04.650 --> 00:36:07.680 Matt Parrella, eXp Realty: Yeah week now. Now we're paying to shred that

00:36:07.920 --> 00:36:15.120 Jeremiah Fox, The Entrepreneurial Web: Okay. Exactly. It's another it's another kind of unnecessary expense and a lot of a lot of industries have started. I know.

00:36:15.870 --> 00:36:31.020 Jeremiah Fox, The Entrepreneurial Web: Like with with food and beverage. We used to have to keep like seven years files. It was crazy. And now, most things are three months, I believe, liquor invoices, or a year but but they they've they've really like

00:36:31.560 --> 00:36:35.040 Matt Parrella, eXp Realty: Put a capital they let you do it electronically. You have to keep paper receipts and everything.

00:36:35.280 --> 00:36:39.750 Jeremiah Fox, The Entrepreneurial Web: Um, we could probably do it electronically. I mean, the companies are still going to give us a

00:36:40.440 --> 00:36:52.890 Jeremiah Fox, The Entrepreneurial Web: Paper invoice, we could probably keep it digitally on file in in the store, but it has to be accessible in the store. So if like the liquor authority came in, we'd have to be able to to provide it immediately.

00:36:52.980 --> 00:36:55.050 Matt Parrella, eXp Realty: Like with no you don't want to mess with the SLA.

00:36:57.780 --> 00:36:58.740 Matt Parrella, eXp Realty: Got a fun thing to do.

00:36:58.830 --> 00:37:03.210 Jeremiah Fox, The Entrepreneurial Web: No, not interested in that. I'm being totally compliant. But the other you know the other

00:37:04.830 --> 00:37:18.630 Jeremiah Fox, The Entrepreneurial Web: Aspect of all the currency that that we're starting to know that notice this, and it's on his credit cards and credit card receipts and like signing and like people, people don't even want to touch the thing anymore, you know the the

00:37:18.660 --> 00:37:25.140 Jeremiah Fox, The Entrepreneurial Web: Right. You know, they just have people are tapping people have it on their phone, people have it on their watch and they just walk up and poop.

00:37:25.440 --> 00:37:36.810 Jeremiah Fox, The Entrepreneurial Web: And there's no receipt. There's no signature. You don't have to enter a PIN. You don't have to touch anything. I think from from a health and safety, but also competence standpoint for consumers.

00:37:37.410 --> 00:37:42.810 Jeremiah Fox, The Entrepreneurial Web: Credit cards want people to continue to use them as much as they aren't people are hardly spending cash to because same thing. They don't want to

00:37:43.140 --> 00:37:45.300 Jeremiah Fox, The Entrepreneurial Web: They don't want to exchange. I want to pass the germ cell.

00:37:45.510 --> 00:37:50.550 Jeremiah Fox, The Entrepreneurial Web: Paper money paper receipts, iron mountain man. You guys are in trouble.

00:37:52.200 --> 00:37:59.970 Jeremiah Fox, The Entrepreneurial Web: There is another it but that that's what I was saying before we finished the last segment is like you're seeing this wholesale like Midtown.

00:38:00.570 --> 00:38:07.890 Jeremiah Fox, The Entrepreneurial Web: And lower Manhattan. People just like vacating offices. Some will go back some won't. Some only go back to a partial operation.

00:38:08.220 --> 00:38:16.500 Jeremiah Fox, The Entrepreneurial Web: And it's going to domino effect and we won't feel repercussions of that until like the dust really settle some this all the services that provided

00:38:17.070 --> 00:38:22.290 Jeremiah Fox, The Entrepreneurial Web: assistance to those companies and then all the companies that service the services you know so it's just like

00:38:22.500 --> 00:38:31.290 Jeremiah Fox, The Entrepreneurial Web: It's going to go boo boo boo BA BA BA BA BA boom and we're gonna we're gonna it's gonna be 18 months out probably for like the last time, and it really falls and we see like, oh man, those guys are out of business too and

00:38:31.590 --> 00:38:45.120 Jeremiah Fox, The Entrepreneurial Web: Whatever you know maybe like we were using too much paper and maybe that was a long time coming. I don't you know I'm not trying to be like the judge or anything, but there was definitely this exposed a lot of things about inefficiencies in

00:38:45.840 --> 00:38:52.170 Jeremiah Fox, The Entrepreneurial Web: You know I know with my own places we cut so many things just to survive. It was like, well, we don't need that anymore. And nobody really cares like

00:38:52.410 --> 00:38:57.540 Jeremiah Fox, The Entrepreneurial Web: What they want is like XYZ. We're going to provide that the rest of it, you know, we'll, we'll make do with it.

00:38:58.170 --> 00:39:12.060 Jeremiah Fox, The Entrepreneurial Web: Kind of as we go. So from some of the other you know i mean you you've dealt in in residential and commercial, what's your, what's kind of like the word on the street from your angle in terms of especially Midtown and and and market values.

00:39:13.650 --> 00:39:14.400 Matt Parrella, eXp Realty: I've been

00:39:16.080 --> 00:39:21.870 Matt Parrella, eXp Realty: You'd be surprised. So I, I do. I'm based out of New York City, but I managed the whole state right

00:39:23.040 --> 00:39:32.160 Matt Parrella, eXp Realty: Drive people from Buffalo, you know, everywhere in between all the way down to the five boroughs all five boroughs out to the eastern Long Island and

00:39:34.260 --> 00:39:41.340 Matt Parrella, eXp Realty: You have to talk about Midtown. The interesting thing I've been talking about his office space. Okay. And the reason I think of it is if you go back to when

00:39:42.330 --> 00:39:50.190 Matt Parrella, eXp Realty: Let's say Wall Street became more digitized right you don't have all those people running around yelling holding up tickets anymore. Like, like you know Trading Places movie back in the day.

00:39:50.220 --> 00:39:50.820 Yeah.

00:39:51.870 --> 00:40:07.020 Matt Parrella, eXp Realty: Now if you my cousin has a consultant see firm to risk management firm on and he used to be at 75 Wall Street. He's now at a he's on Hanover Square. He says he sells a space. I don't, I don't think he's been going into it, but he has a space. So on the financial district.

00:40:08.220 --> 00:40:10.740 Matt Parrella, eXp Realty: Many of those buildings on Wall Street became condos.

00:40:11.760 --> 00:40:13.140 Jeremiah Fox, The Entrepreneurial Web: Already or you mean

00:40:13.200 --> 00:40:18.720 Matt Parrella, eXp Realty: 10 years ago got yeah 7595 101 10 they all became condos, a long time ago.

00:40:18.960 --> 00:40:19.230 Jeremiah Fox, The Entrepreneurial Web: Right.

00:40:19.410 --> 00:40:27.660 Matt Parrella, eXp Realty: He moved his office, years ago to to handle the square and it would be interesting to see what happens now. Because I have another cousin. She's, she's

00:40:29.010 --> 00:40:35.040 Matt Parrella, eXp Realty: Got a great position, Bank of America for a long time. She's one of the first people who like we can't have you get sick. You're not coming in anymore.

00:40:35.550 --> 00:40:42.810 Matt Parrella, eXp Realty: Cheese. Cheese has an office in your that bank of america tower diagonally across Sixth Avenue for for

00:40:42.870 --> 00:40:43.500 Matt Parrella, eXp Realty: Ryan for

00:40:43.770 --> 00:40:44.460 Jeremiah Fox, The Entrepreneurial Web: Like 40 seconds.

00:40:45.270 --> 00:40:52.650 Matt Parrella, eXp Realty: I don't, I don't want to make a prediction. Am I doing that, but like, will they ever have had that building packed. Again, I don't know. I don't know.

00:40:52.830 --> 00:40:54.450 Jeremiah Fox, The Entrepreneurial Web: Well, did they even did it ever get

00:40:54.840 --> 00:40:58.860 Jeremiah Fox, The Entrepreneurial Web: To capacity because that building something like 10 years old. Did they even get it.

00:40:59.100 --> 00:41:05.880 Matt Parrella, eXp Realty: Look. That's a good question. I know my cousin was in there working many hours every day, but was every desk filled in there. I don't know, but

00:41:06.330 --> 00:41:17.400 Matt Parrella, eXp Realty: They talking about coming back to, you know, not just them I'm talking in general, they're talking about back to 50%. So if you had 200 people in an office, you're only going to have 100. So what did you know

00:41:18.630 --> 00:41:26.580 Jeremiah Fox, The Entrepreneurial Web: I know that you, how's it going to affect the price. Like, come on. Like there's gonna be an excess of inventory in terms of commercial real estate and

00:41:26.610 --> 00:41:30.600 Matt Parrella, eXp Realty: And, well, that's the interesting thing is, every now and again it's not a prediction, but

00:41:30.630 --> 00:41:35.790 Matt Parrella, eXp Realty: Do do all these office spaces continue to exist as office spaces, or do they

00:41:37.320 --> 00:41:43.710 Matt Parrella, eXp Realty: Some of them get converted to residential I don't that that'd be the interesting thing to see. And I just look back and say, an example of that would be Wall Street.

00:41:44.250 --> 00:41:53.490 Matt Parrella, eXp Realty: Much of the financial district was all offices and then became condos or high end rentals. Right, so it'd be interesting to see if that happens again and

00:41:54.870 --> 00:42:00.210 Matt Parrella, eXp Realty: You know, and then we looked. We talked about this. But what happens when the what if they do come out with the really great vaccine.

00:42:01.020 --> 00:42:03.720 Matt Parrella, eXp Realty: Right, everybody look. Oh, it's not a big deal anymore.

00:42:03.840 --> 00:42:04.890 Jeremiah Fox, The Entrepreneurial Web: Snap right back.

00:42:05.670 --> 00:42:06.420 Matt Parrella, eXp Realty: Everything's

00:42:06.690 --> 00:42:08.130 Jeremiah Fox, The Entrepreneurial Web: Yeah. Does that happen right

00:42:08.220 --> 00:42:09.450 Matt Parrella, eXp Realty: do certain things.

00:42:09.840 --> 00:42:11.490 Matt Parrella, eXp Realty: That I always

00:42:12.840 --> 00:42:21.000 Matt Parrella, eXp Realty: I ride the subways right when I want to go. Go into the city. I don't mind drive into the city I ride the subway. Right. I don't touch everything

00:42:21.600 --> 00:42:29.190 Matt Parrella, eXp Realty: I see people, you know, I think this is going to be a difference like people go around like it. Don't grab on to the railing, don't, don't sit on that bench. You know what I mean.

00:42:31.050 --> 00:42:35.580 Matt Parrella, eXp Realty: Just stand up ride the train and you know I see people they took they touch every railing.

00:42:35.580 --> 00:42:41.430 Matt Parrella, eXp Realty: Yeah, in the handrails and I'm like, Oh, I never did long before, but I wasn't doing that, you know,

00:42:41.490 --> 00:42:41.790 Jeremiah Fox, The Entrepreneurial Web: Right.

00:42:42.780 --> 00:42:44.130 Matt Parrella, eXp Realty: To me was always common sense.

00:42:44.400 --> 00:42:55.590 Jeremiah Fox, The Entrepreneurial Web: Yeah, no, I haven't. I agree with you but from what I've seen interacting. I mean, I've been interacting with people every day, this whole time. Like, not even an afternoon off working all day every day and

00:42:56.040 --> 00:43:04.950 Jeremiah Fox, The Entrepreneurial Web: There's been, you know, some adjustments. But I think there's like a solid 50 plus percent of people are just kind of like operating as normal, you know,

00:43:05.250 --> 00:43:16.350 Jeremiah Fox, The Entrepreneurial Web: Not, not a big deal. So there is that opportunity or that chance that if there is some amazing vaccine, like a lot of people are just going to try to be line right back to, to the way things were before.

00:43:17.190 --> 00:43:17.580 Matt Parrella, eXp Realty: You know,

00:43:17.610 --> 00:43:21.270 Matt Parrella, eXp Realty: I mean, people want to get back to know. I mean, we all want to go, you know,

00:43:22.530 --> 00:43:24.210 Matt Parrella, eXp Realty: Go out to a restaurant or

00:43:25.440 --> 00:43:25.650 Matt Parrella, eXp Realty: You know,

00:43:26.940 --> 00:43:27.660 Jeremiah Fox, The Entrepreneurial Web: sit outside

00:43:28.170 --> 00:43:40.110 Matt Parrella, eXp Realty: In real estate. There's a lot of. There's a lot of socializing with grand opening party. We're having a launch party. Let's just get together and everybody have some beers. You know, there's a lot of that goes on in real estate and now what's going on.

00:43:40.320 --> 00:43:44.220 Jeremiah Fox, The Entrepreneurial Web: And the conventions to you guys get together and have like big thing.

00:43:44.250 --> 00:43:44.760 Matt Parrella, eXp Realty: We just

00:43:44.910 --> 00:43:57.180 Matt Parrella, eXp Realty: Look at this, you I slept last year I was in Vegas. I was in Florida. I was in Boston. Right. This year, all the things we have what we normally call the Northeast spring power, what the spring power of it up in Boston.

00:43:57.810 --> 00:44:07.770 Matt Parrella, eXp Realty: We cancel that. That was back going to be who's going to be the day before, St. Patty's Day this year, then in April, I WAS SUPPOSED TO BE IN ORLANDO I had already bought a plane ticket that's done.

00:44:09.120 --> 00:44:16.860 Matt Parrella, eXp Realty: Probably wouldn't. I think would have been this month. I was supposed to be in Vegas for the XP con right we do two two big events a year.

00:44:17.490 --> 00:44:24.840 Matt Parrella, eXp Realty: One is the XP shareholders summit, because we're all shareholders. Right. Yeah. And there's the ESP con

00:44:25.320 --> 00:44:39.630 Matt Parrella, eXp Realty: Those are two main events a year and then the sprint the Northeast spring power event is something we do northeast, obviously, the broker up in Massachusetts started it. So we did in 2019 this year, we didn't do any one of these three events we you know we did them.

00:44:41.070 --> 00:44:41.280 Matt Parrella, eXp Realty: We

00:44:41.310 --> 00:44:42.450 Matt Parrella, eXp Realty: Get them in the cloud.

00:44:42.540 --> 00:44:48.150 Matt Parrella, eXp Realty: Yeah, we still went in and people had, you know, but we just didn't travel to do it.

00:44:48.570 --> 00:44:51.810 Jeremiah Fox, The Entrepreneurial Web: I heard Florida is open. I think you guys could probably

00:44:56.580 --> 00:44:58.080 Matt Parrella, eXp Realty: Be responsible of us.

00:44:58.410 --> 00:45:02.100 Matt Parrella, eXp Realty: To Dallas, they would take you right now. I think they'd be like, yeah, you guys want to

00:45:02.250 --> 00:45:06.960 Jeremiah Fox, The Entrepreneurial Web: I'm kidding. All right, we're gonna take one more quick break. We'll be back in just a few everybody

00:45:07.470 --> 00:45:07.980 Matt Parrella, eXp Realty: You list all

00:45:08.010 --> 00:45:09.030 Jeremiah Fox, The Entrepreneurial Web: The entrepreneurial web

00:45:09.420 --> 00:45:09.960 Matt Parrella, eXp Realty: Gina minute

00:47:03.300 --> 00:47:11.190 Jeremiah Fox, The Entrepreneurial Web: Okay everybody, once again, you're listening to the entrepreneurial web, welcome back. I'm your host, Jeremiah, Fox here with my guest Matt rela

00:47:11.550 --> 00:47:19.110 Jeremiah Fox, The Entrepreneurial Web: Taking it back to the beginning of the show where I don't think Matt was here and heard this, the message of the week if you got your head in the game.

00:47:19.770 --> 00:47:33.600 Jeremiah Fox, The Entrepreneurial Web: What you'll find is, things don't often turned out the way you thought they would, but often the way you expected this show prime example I was. I didn't think you'd be looking at me the whole time. In fact,

00:47:34.170 --> 00:47:36.600 Jeremiah Fox, The Entrepreneurial Web: There was a moment. I was like, you might only be listening.

00:47:36.600 --> 00:47:37.650 Jeremiah Fox, The Entrepreneurial Web: To me the whole time.

00:47:38.070 --> 00:47:39.090 Matt Parrella, eXp Realty: Oh, sorry, but

00:47:39.300 --> 00:47:47.580 Jeremiah Fox, The Entrepreneurial Web: But I expected to have a fun and insightful show and we've gotten that so far, and then taking that a little further.

00:47:47.970 --> 00:47:57.990 Jeremiah Fox, The Entrepreneurial Web: With you, Matt. In terms of the industry like going from where you started and where we're at now in terms of the way we transact going forward. Do you feel like

00:47:58.590 --> 00:48:06.150 Jeremiah Fox, The Entrepreneurial Web: Your businesses model is going to begin to like you were taught. What was the name of the company. The, the tech company that you guys acquired

00:48:06.390 --> 00:48:08.550 Matt Parrella, eXp Realty: Verbally as part of the external world holdings now.

00:48:08.580 --> 00:48:13.380 Jeremiah Fox, The Entrepreneurial Web: Yeah. So do you see that now as, like, that's going to be kind of the wave

00:48:14.550 --> 00:48:17.880 Jeremiah Fox, The Entrepreneurial Web: Of the future like thinking of like when we were kids watching

00:48:18.960 --> 00:48:21.990 Jeremiah Fox, The Entrepreneurial Web: Star Trek and Star Wars and being like now will never

00:48:22.440 --> 00:48:29.340 Jeremiah Fox, The Entrepreneurial Web: Will never will never do this like see each other remotely and talk and boom, all of a sudden, this is like all we do every day. It's what

00:48:29.610 --> 00:48:35.310 Matt Parrella, eXp Realty: Well, well, here's the interesting thing is way before coven okay

00:48:37.110 --> 00:48:41.850 Matt Parrella, eXp Realty: Like I was saying I knew somebody they were at a company in offered to go there and

00:48:43.290 --> 00:48:52.710 Matt Parrella, eXp Realty: Had the coaching program and do some other whatever the spending a lot of money on rent and somebody I knew. Who's, who's that ESP would go in

00:48:53.220 --> 00:49:01.200 Matt Parrella, eXp Realty: Once a week being up to stop in once a week, and they were paying for a desk. Okay. In addition to this, with the other pay to have a desk in the office.

00:49:02.520 --> 00:49:15.390 Matt Parrella, eXp Realty: And they would take a picture and go, Matt. Look, it's 10am on Tuesday morning to work day this section of the office has 100 about 180 desks and there's two people there, huh. I think the office had like 300 desks total

00:49:16.440 --> 00:49:24.480 Matt Parrella, eXp Realty: Another company. I know that friend of mine is that he says, he says, You go on. It's like an airplane hangar. It's just empty just big empty space so

00:49:25.980 --> 00:49:38.640 Matt Parrella, eXp Realty: I think when I discussed this over a year ago with somebody, they were saying it's really about 5% of the people that go in on a regular like like really going the office all the time. Um, and I'll give you, for instance, it's kind of funny, but somebody I know said

00:49:39.930 --> 00:49:46.680 Matt Parrella, eXp Realty: Why don't you come and do this. You don't need the office and and he was talking to a guy who is a little older older than us, instead of

00:49:48.120 --> 00:49:53.850 Matt Parrella, eXp Realty: You see, what do you think I'm going to stay home and deal with my wife all day in the office to get away from my wife right

00:49:54.840 --> 00:50:05.550 Matt Parrella, eXp Realty: So this is always going to be some of that right, am I am saying that's gonna thousand percent disappear but but look, again, if I want to go into an office, I get 38 offices, I can go to Manhattan.

00:50:05.730 --> 00:50:09.570 Matt Parrella, eXp Realty: Right. And there's a Regis office in downtown Brooklyn, I can go, you know, I mean, so

00:50:10.710 --> 00:50:14.190 Matt Parrella, eXp Realty: I want to go an office. I'll go into the office but i don't i don't like the idea of

00:50:15.570 --> 00:50:18.450 Matt Parrella, eXp Realty: I have to pay for this big office space, whether I use it and I

00:50:18.450 --> 00:50:19.230 Jeremiah Fox, The Entrepreneurial Web: Yeah, right.

00:50:19.290 --> 00:50:21.300 Matt Parrella, eXp Realty: That doesn't. That to me is not

00:50:21.390 --> 00:50:25.830 Jeremiah Fox, The Entrepreneurial Web: Because you're paying for it, every second of the day, you're not just paying for it when you're like wait

00:50:26.400 --> 00:50:27.300 Matt Parrella, eXp Realty: Around the clock.

00:50:27.390 --> 00:50:37.110 Jeremiah Fox, The Entrepreneurial Web: And the responsibilities that come with that, like, often, if you have a commercial lease or you're, you know, responsible for repairs and maintenance within it, you know.

00:50:37.200 --> 00:50:40.350 Jeremiah Fox, The Entrepreneurial Web: If it's something external on the building but like about pipe burst and

00:50:40.350 --> 00:50:57.240 Jeremiah Fox, The Entrepreneurial Web: Your space, guess what, you get to deal with it. Um, and so it just, it kind of snowballs. And I just, you know, something really struck me when you know there were a lot of restaurants and closed lately, but this was a trend that have been going on for for a solid 18 months New Year's Day.

00:50:58.890 --> 00:51:05.910 Jeremiah Fox, The Entrepreneurial Web: Like several dozen quintessential New York City restaurants announced that they were they were closing their doors and most of them.

00:51:06.180 --> 00:51:17.580 Jeremiah Fox, The Entrepreneurial Web: You know, there was there was, you know, obviously increase in minimum wage that affected, a lot of them that that went into effect, the day before. Actually, I don't know why, but it went into effect on New Year's Eve of 2018 but um

00:51:18.120 --> 00:51:27.840 Jeremiah Fox, The Entrepreneurial Web: But a lot of them cited exorbitant rent and I will never forget reading the story of Cornelia street cafe, which I went to many times and saw lots of shows that

00:51:28.170 --> 00:51:38.430 Jeremiah Fox, The Entrepreneurial Web: And they were paying like 75 grand a month in rent. Now, the places, maybe 2500 square feet. I mean, it's freaking tiny

00:51:39.270 --> 00:51:46.170 Jeremiah Fox, The Entrepreneurial Web: And I just like thought for a moment like, well, yeah, sure. That's gross on the part of the landlord or management company but

00:51:46.650 --> 00:51:52.920 Jeremiah Fox, The Entrepreneurial Web: Why were there not red flags going off at like 25 grand like this is unserviceable.

00:51:53.580 --> 00:52:04.380 Jeremiah Fox, The Entrepreneurial Web: At 25 grand. How did it continue to go. I just feel like there was there was just a bunch of gross negligence on on both sides to just let this thing go so far. And then all of a sudden, people are like,

00:52:05.190 --> 00:52:19.230 Jeremiah Fox, The Entrepreneurial Web: Oh yeah, I know. It's crazy. We can't do this anymore. You know, where were the checkpoints along the way. Because I like for me. I feel every little fluctuation in my places. So just a little bit. And I'm like, Hey, well, the little calm down to like sign on for something like that.

00:52:20.250 --> 00:52:23.220 Matt Parrella, eXp Realty: To just let it you just charge $45 for hamburger. Right.

00:52:23.640 --> 00:52:27.240 Jeremiah Fox, The Entrepreneurial Web: But like, even then that's not enough like the basic rule of thumb for

00:52:27.600 --> 00:52:35.820 Jeremiah Fox, The Entrepreneurial Web: Like brick and mortar, especially if you're like super transactional if you're not like subscription based or something like that. It's just like you make money off of each and every transaction is that

00:52:36.330 --> 00:52:45.270 Jeremiah Fox, The Entrepreneurial Web: You know, if you really want to make a profit. If you want to survive and make a profit, you should be able to make your rent essentially in one day a month, like every month.

00:52:45.570 --> 00:53:03.540 Jeremiah Fox, The Entrepreneurial Web: So if your rents two grand a month, you should have at least one day a month where you're knocking down two grand. No problem. If it's 10 grand, you should be able to do that. How is it 2500 square foot cafe going to be able to make $75,000 in a day, you need to charge a lot more for hamburgers.

00:53:05.670 --> 00:53:15.990 Jeremiah Fox, The Entrepreneurial Web: It's just like, What the fuck is going on, you know, so it feels like, you know, the same way with the virus. It just got to this point and and different responses and a whole heap of like misinformation.

00:53:16.230 --> 00:53:19.470 Jeremiah Fox, The Entrepreneurial Web: And in the same thing. I mean, we're seeing the same what's happening.

00:53:19.920 --> 00:53:31.470 Jeremiah Fox, The Entrepreneurial Web: Within the business community within real estate within so many things and we talked about paper like what else, what else did we miss what other what other sicknesses within in like the business community. Do we know how to dress today.

00:53:33.150 --> 00:53:38.250 Jeremiah Fox, The Entrepreneurial Web: I know you got some you got something we haven't talked about sunglasses yet Matt loves sunglasses.

00:53:39.270 --> 00:53:41.250 Matt Parrella, eXp Realty: I like my like my sunglasses. Yes.

00:53:41.940 --> 00:53:43.170 Jeremiah Fox, The Entrepreneurial Web: All year round. All

00:53:43.260 --> 00:53:44.250 Matt Parrella, eXp Realty: Around always

00:53:45.180 --> 00:53:50.160 Jeremiah Fox, The Entrepreneurial Web: Oh yeah, that part just baffles me how like it just, it was allowed

00:53:51.540 --> 00:53:57.420 Jeremiah Fox, The Entrepreneurial Web: To to kind of like, and I know for like somebody like you, I mean you guys make more money off of that right it as it elevates

00:53:57.870 --> 00:54:11.970 Jeremiah Fox, The Entrepreneurial Web: Everything like if businesses are charging that much for commercial rents, although residential a prices of whether it's it's for sale or for rent. Don't mirror that but they certainly elevate in response to that, correct.

00:54:13.110 --> 00:54:27.630 Matt Parrella, eXp Realty: Well, it's an interesting thing. I used to look at and there was there was a restaurant they I guess they decided to close to the retired, but there was a restaurant right off the Seventh Avenue in Park Slope and the food was very good. And they charged

00:54:29.040 --> 00:54:33.870 Matt Parrella, eXp Realty: They weren't cheap. They weren't I wouldn't say it was super you know it's New York. Nothing's really right and to be cheap but

00:54:34.590 --> 00:54:42.810 Matt Parrella, eXp Realty: But they're there shop was off the Seventh Avenue and I was like, that's kind of brilliant because as soon as you go up the main avenue the rent goes way down right they

00:54:42.960 --> 00:54:45.000 Jeremiah Fox, The Entrepreneurial Web: They weren't right on. Yeah.

00:54:45.060 --> 00:54:48.750 Matt Parrella, eXp Realty: You know steps or whatever, you know yeah 50 feet off of the main avenues.

00:54:48.750 --> 00:54:49.050 Sure.

00:54:50.280 --> 00:54:53.790 Matt Parrella, eXp Realty: Think about that. You gotta, you gotta be saving a ton of money and rent. Right.

00:54:53.880 --> 00:54:54.930 Jeremiah Fox, The Entrepreneurial Web: It's probably half

00:54:55.530 --> 00:54:55.890 Matt Parrella, eXp Realty: Right.

00:54:56.070 --> 00:54:59.850 Matt Parrella, eXp Realty: You know, on $1 per square foot basis. And sure, so it um

00:55:01.140 --> 00:55:15.420 Matt Parrella, eXp Realty: What's going to happen after all this. It's an interesting. So I'm saying, I've been talking about office spaces you know even retail spaces. I don't think it's, I don't think it's gonna go away completely, you know, quarter what fuels that too is one of my vendors in in Manhattan.

00:55:16.560 --> 00:55:25.320 Matt Parrella, eXp Realty: Got out of they they had signed the lease a long time ago they had a beautiful space or a high relatively high floor in downtown and

00:55:26.850 --> 00:55:29.670 Matt Parrella, eXp Realty: The owner of that company said to me one day he goes, his mangoes.

00:55:30.390 --> 00:55:38.700 Matt Parrella, eXp Realty: It's not just the rent it goes on dollar per square foot. I'm paying less than what anybody else would pay right now because I signed it sometime ago right beautiful office space.

00:55:39.120 --> 00:55:46.590 Matt Parrella, eXp Realty: But he said, a lot of my people. I have people working for me doing programming and India. If people in Texas. If people in New Jersey goes

00:55:48.210 --> 00:55:57.780 Matt Parrella, eXp Realty: To office. He goes, It's a beautiful, but it wasn't just that, you know, really got him was a big it was a big building and his. He only had one portion of one floor right

00:55:58.650 --> 00:56:04.170 Matt Parrella, eXp Realty: So there was people, they are much bigger space and he says they keep raising it goes there bang me a top of the rent.

00:56:04.920 --> 00:56:17.730 Matt Parrella, eXp Realty: Over $4,000 a month just for my portion of the taxes. And he goes, that keeps going up taxes, keep going up right so people don't always realize it's not just the rent. It's there's taxes. Their sewer and water. There's

00:56:17.730 --> 00:56:18.510 Matt Parrella, eXp Realty: So much

00:56:19.050 --> 00:56:28.230 Matt Parrella, eXp Realty: Yeah, yeah. So it sometimes you say, well, I can't believe you're charging this much for this food at this at this restaurant and then you go, Yeah, but you don't know everything behind

00:56:28.380 --> 00:56:29.340 Jeremiah Fox, The Entrepreneurial Web: Well yeah well

00:56:29.940 --> 00:56:31.560 Matt Parrella, eXp Realty: To get that onto the table right

00:56:31.650 --> 00:56:39.810 Jeremiah Fox, The Entrepreneurial Web: Right I one of my favorite restaurant personalities David chain talks about that all the time he's the owner Momofuku, and he's like, people are not prepared.

00:56:40.230 --> 00:56:52.980 Jeremiah Fox, The Entrepreneurial Web: To know what food should really cost, like if you really think like these restaurants should be here and these people should get a certain amount of pay for doing it and data like you just the world is not ready. If you really saw what the bill should be

00:56:54.030 --> 00:56:56.670 Jeremiah Fox, The Entrepreneurial Web: They'd be like, we're gonna, you know what, we're okay cooking at home.

00:56:57.630 --> 00:56:58.560 Jeremiah Fox, The Entrepreneurial Web: I will eat my terrible

00:56:58.860 --> 00:56:59.190 Matt Parrella, eXp Realty: Thing.

00:56:59.700 --> 00:57:09.120 Jeremiah Fox, The Entrepreneurial Web: So we're gonna have to wrap up, man. Thank you so much for coming on. Even though couldn't see you next time we'll do it in studio when we get back to some sense of normalcy, where can people find out

00:57:09.720 --> 00:57:14.280 Jeremiah Fox, The Entrepreneurial Web: If they want to contact you, or find out more about your company, where should. Where would you like to direct them.

00:57:15.120 --> 00:57:17.280 Matt Parrella, eXp Realty: Um you able to put up you able to

00:57:17.520 --> 00:57:21.030 Matt Parrella, eXp Realty: Put up that right now. I can put it in the comments. But just say, real quick, like, Papa, Papa.

00:57:21.330 --> 00:57:26.340 Matt Parrella, eXp Realty: Okay, it's so my email is Matthew ma TT at w

00:57:27.390 --> 00:57:53.910 Matt Parrella, eXp Realty: Dot perella P AR AR e LL a at XP realty.net is my email. It's easy x ray Peter he XP realty.net and my my direct number is 646-458-1412 again that is 646-458-1412 and I'd be happy to.

00:57:55.050 --> 00:57:57.750 Matt Parrella, eXp Realty: Hear from anybody who's, who's, who's in on this a

00:57:58.350 --> 00:58:04.470 Jeremiah Fox, The Entrepreneurial Web: Really awesome, man. Nobody's ever given up their phone number on here before. That's pretty bold, like I said,

00:58:04.710 --> 00:58:12.180 Matt Parrella, eXp Realty: My phone number. I have just about 950 agents. Now in New York. Okay, everyone who's got my cell phone number.

00:58:12.210 --> 00:58:14.490 Matt Parrella, eXp Realty: Yeah, so I'm like you know what

00:58:15.540 --> 00:58:24.600 Jeremiah Fox, The Entrepreneurial Web: Although all those telemarketers are gonna hit you up. All right, we gotta hop off, man. There's another show coming up. Thank you, everybody. Have a great weekend. We'll check in with you next week. You're listening to the entrepreneur, he where

00:58:24.660 --> 00:58:26.610 Matt Parrella, eXp Realty: He Thank you everyone. Jeremiah see in the hood.

00:58:27.000 --> 00:58:28.260 Matt Parrella, eXp Realty: Oh, yeah.

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