Building a $400M Real Estate Business & Starting Over with Darlene Streit

They're kind of like, "Oh, no. Well, we need to marketing. We need to get it sold to do marketing." I'm hearing do marketing, marketing. But, that's not it. You can market the heck out of it. It is not it. They see it. The agents know about it. That it's out there everywhere. And we actually spent extra money to make sure it's out there. So, it's not some special marketing campaign that's going to sell the house. It's getting the price right.

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They only take one per metro, so get to them before your competition does. Go to 10xsearch.com/ownit. That's the ad. Let's get into it. My next guest built one of the top real estate practices in the entire country out of Santa Fe, New Mexico, which is extraordinary because the population's only about 80,000 people. What's really amazing about this is that while everyone else at the level that she is achieving was working out of New York, LA, or Miami, she was closing 400 million a year from a small town in the desert.

Then at the peak of her career, she walked away from it and started over in Palm Beach in the middle of the equestrian and golf club world where nobody hands you trust, you have to earn it. She also has a master's in psychology, a Hall of Fame athlete from her mother, and 30-plus years of reading people better than a spreadsheet. Please welcome Darlene Streit. >> Thank you. Very good, Ross. Thank [clears throat] you very much. That was cool. >> It is really cool to have you here. So, thank you.

I There's There's a lot of really amazing things that you've accomplished, and I think that you're my favorite kind of person to have on here because I think there's a lot of things that you've done that many people would think, "I can't do that. That's impossible." And that you just decided, "I'm doing it." And you're also crushing it. So, the first thing I want to ask you is like most of us, you did not set out to become a real estate agent. You got into this business as an investor. Is that right? >> Yes, that's right. Yeah.

Good for you. Yes, I was investing. Had no clue. None of us who invested did. We probably wouldn't have done it had we known what we were doing. It worked out really well, actually, but we had Andres Duany, a new urbanist developer from Miami, design this community with about 476 lots called Aldea, and we actually rewrote the county code.

Like, it took years, like 7 years or something to get it approved, which is obviously not ideal when you're doing real estate, but anyway, we did and sold it out and did really well, and I just saw these brokers selling We were just selling lots, and I was like, I could try that, you know. I Radar was not on my mind that or radar real estate because I had a family that came more from finance, and it wasn't, you know, who's a realtor? We didn't have any of those in our family.

So, anyway, little did I know that a lot of my family were good sales people, and I guess that's what it takes, right? So, >> So, what was the moment where you went from being an investor to saying, "Oh, I'm going to pivot to this." >> Well, they were selling these lots, and it it could have been better, I felt. So, it was just at some moment >> seeing it. You were seeing like gaps in their performance there.

>> it how it could be better, and I thought, well, it looks sort of interesting, and I just thought, well, I'll give it a try. Plus, my husband, who I brought in, I met him through the project sort of. I brought him in to manage it, me and the other people on the advisory committee. Brought him in to manage it, and then he was like, you could do real estate.

You could probably do well at real estate cuz he trained a lot of brokers, so he kind of knew what it took, and he always says I was his best ever student cuz I would do whatever he said I would do, however ridiculous it was at times looking back, but he was just trying to teach me. So, anyway, I have If I had a client since the very first >> seemed ridiculous at the time that you did? there were some I don't know. Once he had me I forget.

It was some broker who wanted to know about a listing I knew about, and it was like, ask them for a commission or part of it to tell them about it or something. I don't know. It was some weird dumb thing that I wouldn't do today. I would just help them out, right? But, he was trying to get me that. It wasn't really the right thing to do, but anyway, I felt like an idiot after cuz the guy I "I'm not paying you just to tell me, you know." Anyway. I you know, I learned to speak up for myself basically.

It just became a natural because once real estate is a little addictive, like once you do one deal and another deal, I mean, it's great as long as it's working out, right? It's not so great when it's not. >> Yeah. >> So, I was just very fortunate that it worked out immediately and has kept working out, but that's not the way it goes for everybody. I'm very grateful for that. So, I do want to bring up your mom for a moment, Marlene, right? She's in the the World Golf Hall of Fame. >> Mhm.

>> So, I can't imagine what it was like growing up with an elite athlete your mom. So, I'm sure that I'm assuming that that has, you know, really informed your how you operate in business to some degree. >> Well, yeah, it's given me my competitive nature, right? So, I saw her always succeed, so I think our mothers tend to be role models. And so, it was always about winning and succeeding, and it gives me determination when doing a deal. I don't like to see it fall apart. I never give up. I'm like, "How can we make this work?

What else can we do?" So, I've learned creative thinking and determination. And I watched her, you know, she was she won most of the time when I was a child. She always won. So, showed me how great that is to be winning and succeeding. So, that's what I wanted to do. It's good and bad, you know, growing up everybody was like, "Do you play golf like your mother? Are you like your mother?" And no, I'm not. I mean, I play golf, but terribly, and I've never had the time to really devote to it.

It's just not my it's just not where my focus was, and >> Yeah. No, you're an elite athlete in other ways. I feel like this sometimes an athletic event in how much energy we expend. >> That like >> Yeah, internally trying to like >> mental and physical stamina. >> Yes. >> Yes. Yes. >> So I understand you have a master's in psychology and a degree in economics. >> Right. That's right. Yeah. >> That is a really This is my joke and you're living it.

The most valuable thing I could have done for real estate would be uh to have studied psychology. Um So >> you've got both. You've got psychology um and the numbers of economics and emotion. So we were talking about how you have a master's in psychology and a degree in economics. And I'd love to know there's such an interplay between client's emotions and the financial aspect of of deals. Can you speak to that at all?

How often you feel like the emotional aspect of this is really more important than the financial when you're working with a client and sort of how you approach that. >> I think it's almost always emotional because it's so much money involved. And even the people who say it's not emotional, they are emotional cuz they'll be even in trying not to be emotional, it becomes emotional, right? So it's just about being a good listener and understanding what's really going to work for them and helping them do the right thing for them.

It's not about selling them the house. It's about helping them make the right decision and I've so told many people not to buy this house or a house or whatever. Like I just help them understand what's best for them and that comes from just the ability to listen and pay attention and read the signs and I suppose a real estate degree has helped with that cuz it helps me listen to people, learn to listen to people, but over time with or without a degree in psychology, I think all of us become attuned to people and start to understand.

It's just the signs from people. I don't know. It's kind of a nuance, but I do notice some younger brokers like who just aren't listening and I think it's really annoying. I mean, you have to really listen and I just had an assistant lately who spends a lot of time repeating back what I'm saying and I find that so helpful, right? Because they're hearing me, you know. >> And they're acknowledging and you're understanding. You're being >> Yeah.

And so like that, too, which is a psychology thing, but to really hear people and do what's right for them and it may or may not be selling them a house. It might be who knows what, but Yeah. >> The through line of the most successful people that I talked to seems to be this. They're they're nobody's transactional. Everybody is truly into guiding the client and doing what's best for them and really trying to do what's best for them. Which makes sense because it's a big picture business strategy. Obviously, this is who you are as well.

I mean, maybe primarily. But then they I think that if people know that you care about what happens to them, that's the primary that's a primary importance. They're going to want to send you all their friends. >> Right. It builds a loyalty aspect. Yeah, people appreciate someone being genuine and actually really caring for themselves. It's caring for them. It's just human nature. So, I do. So, that's I think that's helped a lot in my career. I try to listen and I try to, you know, I care.

Care about them, care about what their needs are, what's best for them. I'm not always right. It's my perception of what's best for them. But, I try to tell them what I feel that is. And people appreciate that. They appreciate being heard and seen and listened to. And that's psychology degree, that's a lot of what it taught me. It's like about listening to people, I'd say.

>> I think that's incredibly valuable also in this era of AI taking over so much because I'm now seeing clients say to me, "Well, I researched this on AI and blah blah blah blah." And it's like what the person wants to pay for besides our local knowledge is someone who will a human being who will care and has tons of experience and will guide them and isn't just trying to make a paycheck. >> Right. Right. >> the more the robots creep in, even the more valuable that will be. >> Right.

And it's AI not I haven't found it to be very accurate for real estate. I've had people send me like a whole AI like marketing program and it it's not about that. It's about getting the right price. And the price is very difficult with AI because there's so many more factors than just the comps. There's There's a lot of different nuances about a property and what's the right price. And the market's ever changing, too. >> Especially these days. So. >> So, where are you from? Where Where'd you grow up? >> Toronto.

>> Okay, Toronto. That's right. So, tell me about Santa Fe cuz I'm really interested to know you crush I mean you're in the top half percent of all agents of the whole industry in a really small town for that. That's correct. >> How How do you build a business out of a a place that size? >> Lot of hard work because see, no one in Santa Fe has ever made the national Real Trends rankings of the thousand.

Real Trends has become like so all-inclusive now, but I mean the actual thousand rankings, no one's ever made that for good reason. It's not like probably no one ever could. It takes a lot of work cuz you have to do so many more transactions in a small market like that. Where also we don't have $10 million We have the odd $10 million, but very rare. So, even sales over 5 million are only a very small handful.

So, it takes a lot of transactions and it's a lot of work and therefore also it's expensive cuz it takes a lot of staff to be able to manage all of the process unless you want to just totally lose your mind like cuz in COVID, we did like 330 30 or something transaction sides one year and that was like brain damage. I mean, really literally like people say that joking, but I'm telling you it really was. >> What does your team look like? What size? >> It's like a lot of admin assistant people.

I have a couple people help with the showings, but then I have people who help who I mean with the buyers, but then I have people who specifically help showing the properties, people who specifically do the transactions, people who specifically do the listings. And then they all have help. It's a lot, but it's really needed because we also respond very quickly, get it done quickly, show up, you know. It's never like, "Oh, I'll get back to you tomorrow. No, it's like I'll get back to sorry if it's 10 minutes, you know, we're very on it.

So it's How did you come to that structure of of your team? It was a trial It grew over time as we would sell more and more. It would I'd add another person. I'd add an and then the people we had we'd talk and we'd decide what to do. We ended up eventually just dividing transactions and listings. And then I realized the admin people weren't going to be the good people with the buyers. So there was more specific person who was great with buyers but couldn't do admin to save their life or that wasn't their thing.

So it's a different type of person. So we just categorized it all. It just grew organically as the business grew. Interesting. Do you have any sort of you know, tech or some kind of system for communication for all of you to stay in the loop with what's going on? We have group emails. So we have like a trans a showings email, a transactions email. A listings email. So everybody's not inundated, but the transactions people are on the listings email and the listings people are on the transactions email.

So they get a lot of emails, you >> But they know what's going on cuz the listing people need to know when it's going under contract. That helps. And the transaction people need to know when we're getting a new listing so they're just aware of it. So there's some crossover but they also realize they don't need to pay as much attention to the other sides emails. And then when we get a showing request several people need to see it. So there are people on that. That's kind of how we communicate. Then we have Slack.

We use notes notes in Slack for each property. So when people are showing it it has really good clear notes. Everybody can access that and remember cuz it's hard to remember the exact detail like how old's the roof on like every property in your head, you know? Well, we try to be available to answer questions and follow up and stuff. >> Yeah. Thanks for Yeah, thanks for walking us through that because I think that's one of the biggest problems people have is with the with the big team making sure everybody has the correct information.

People aren't double communicating the same thing to the client, which makes them look like they're not uh aligned. >> Right. Right. And I mainly I communicate a lot when there's questions or make sure I'm copied, so I definitely know what's going on cuz I'm sort of a control freak, so I always know what's going on. >> Mhm. Mhm. But these days price is so important. It really is. >> Well, let's talk about that. I mean, how do you what's your approach to that to to making sure it's right? >> It's very difficult.

I found that for a while right after COVID, everyone was accepting oh, the market's gone down, things have changed, and everybody was kind of like okay, you know, we'll go with the price. It's obviously it's changed. Now they're like kind of like over that, and they're kind of like oh, no, well, we need to marketing. We need to get it sold to do marketing. I'm hearing do marketing, marketing. But that's not it. You can market the heck out of it. It it's not it.

They see it, the agents know about it, that it's out there everywhere, and we actually spend extra money to make sure it's out there. So, getting the price right. And sometimes we start off at the wrong price because it's hard to know. It's changing, and it's hard to know the weirdest things appeal to people or don't appeal to people. It's a sort of fickle bit of a fickle market, right? Do you find that? Are you finding >> find that.

Yeah, and one of the This is exactly what my team and I are always talking about our sales right now is that we could just throw it up on Zillow with good photos and a really incredible price and we'd sell it versus having the wrong price, putting billboards all over the city, doing skywriting, and it won't sell. >> That's good. I'm going to use that. Very Yeah. >> And some of that I feel like is seller in denial. Right? So, I would love to know what's your approach to talking to sellers about this?

>> As direct as I am, direct and honest. they don't like it. I mean, it's never easy and it doesn't always go well. But you might as well do it >> Do it now. >> mad or lose it or whatever. It's better than 6 months from now when they really hate you, you know, and it still hasn't sold. >> It's a really good point. It's It's reality is the equalizer. So, it's either reality now or you can waste a lot of time and money and still hit the wall of reality later.

>> Right, and it's worse for them because they're burning days on market, which means maybe it needs to be even lower later. Cuz the market's trending It depends where you are. In Santa Fe, maybe it's even to even going down a bit. In Florida, it's a little different. But it also depends where you are. >> And I want to talk about Florida, but before I do, I on this topic, I understand you're also known for showing up when uh and taking over a stale listing and getting it sold.

>> what happens when you take over a listing that's sitting there? Is it just the price? Are you able to Are you the one who's able to convince them to get to the the price or is there something more? >> Well, sometimes it's good to be the second broker, right? Cuz people are or or or whatever. Yeah, I mean I tell them the truth. >> Which is what I would have done in the first place. >> Do you think a lot of your colleagues, I mean I find this here especially in the Pacific Northwest, uh which is not as direct, right?

And I'm originally from the East Coast, so I'm a little more direct. Do you think that some of them are afraid to be just directly telling them the truth that they don't that they know is not going to be received well at first and then by the time you know, they've gotten beat up on the market and they get to you and you have much less of an issue telling the truth and being direct. That might be the differentiator? >> Yeah, it's hard. Yeah, it is a differentiator. But I'm going to tell them that from the beginning or end or whatever.

So, I'm going to tell them that anyway, but yes. It's a big problem and it's a big problem for many brokers cuz you have to be direct, you have to tell the truth and you can't just want to be liked. >> Cuz you end up not being liked cuz you didn't tell them the truth. >> They like you for lying to them or not being strong enough to state reality? >> In the beginning, they might like that but they're not going to end up liking >> That is a a mantra to live by.

>> Uh and really the way another way to think about this is cuz I I think what you're talking about is a problem for a lot of us. That we do want the person to like us. We want the client to like us. And I think people pleasing is not what they're hiring you for. I mean, if you're going to hire an accountant or an attorney you don't want the accountant or attorney worried about whether you like them. You're hiring them for the truth. >> Guidance.

And and we're in the same category and we need to behave that way, so that's really really insightful. >> So, let's talk about Florida. So, I love Palm Beach. My mom lives in Boca, so I'm there all the time. >> I know that. >> And I love that whole area, but what brought you there? And how do you go from dominating a small town in the desert to South Florida and killing it there? >> Well, my husband couldn't breathe that altitude, so we had to move. And Florida has been like home for a long time.

Like I said, I'm from Toronto, Canada, but my mother playing golf, we used to be in Florida part of the year so she could golf. She went to Rollins, also. We've had a house in Wellington, Florida in the Polo Club where I live since 1986. So, it's like home maybe more than Canada because I left when I was pretty young from Toronto. So, it was just a natural place and my mother was here. She's not coming as much now, but she was here a lot half the year, so then I could be near her, which was great.

Yeah, and then building it, I knew some people and I've built some connections with some people in New York, which is a big feeder market, so that's helped and just a lot of more hard work, right? So, it was kind of pretty daunting. >> You had spent a lot of time in Florida, but when you made this transition, you didn't have a big sphere, it sounds like. You didn't know people, or did you? >> Some, but not a lot. No, no, I had to build a sphere. And I had to build.

I mean, people knew me because I have been a top broker for a long time, so so people kind of a lot of the top brokers I I knew me and stuff, but I had that a little bit, but it took me getting out there and >> Now, I understand you said the Polo Club. Did you say you live there? Is that a community? >> Yeah, it's a community. >> And you've been there since the '80s, you said? >> Yes. Well, my family has had a place here. So, yes.

And so, we've had that that helped, but it's just been a lot of marketing and a lot of just grabbing any lead and working on it and just kind of working through it all. It's been hard. It's been good and there it's paying off. >> You talked about doing sort of extra marketing beyond what even investing money in that. So, I'd love to know what what that is.

>> Well, there's lots of things like luxury real estate and luxury homes are great websites for I think luxury homes is closing down, but luxury real estate is good and Realm networking through we're both members of Realm, which is a collection of, you know, high-end brokers and there's a good network through there to work for referrals and just people I know and yeah, the extra marketing I have a dedicated marketing person, Tony who's great and he does all kinds of different out there stuff and we use social media and you know, all we were using geofencing.

>> That's really interesting. I had another guest talk about geofencing and I had not I wasn't familiar with it, but it sounds like with geofencing, when someone walks into that area, they their phone may serve up ads for your listing. Is that right? >> And you follow them around. Yeah, I'm sure it's highly annoying. People learn to know about me put an ad at the airport and various other things. I'm supporting the local the theater that just opened, Glaser Hall that just opened in Palm Beach. >> Very cool.

>> And then there's all kinds of extra things we do and we can put listings in part of that marketing, so. Okay. >> And uh Yeah, and I was Sotheby's in Santa Fe and Corcoran in uh Palm Beach. >> All right, yeah. >> Yeah, and I find Pam Liebman, who's CEO of Corcoran, to be really great and very supportive. She's great, actually, cuz she was a salesperson, so she gets it. >> Well, and also you're part of two different brands, so that also must expand your network too. >> For marketing. >> Yeah, it does.

Yeah, the Corcoran network's really great, actually. Both are. Sotheby's is is great, also. >> Well, this has been amazing. I've got one more question for you. It So, one of the things I just find so fascinating is you have this history of going places where you're starting from zero and then crushing it. And so, if anyone's listening who is just starting out or maybe moving for all kinds of reasons, and I think it's interesting too that one of the reasons you moved was because of your husband's health issue.

And so, it's like sometimes life happens to you and you need to make a decision, and I would imagine it was potentially I mean, I know that there was a home feeling to Florida from your past, but it must have also been hard to physically leave this place where you were dominating in Santa Fe. And I know you're still there a bit, but uh >> I'm there a lot. >> I'm still number one broker in Santa Fe. I'm there a lot. >> Okay, okay.

So, what is one thing one piece of advice you would give somebody who's starting not knowing anyone in an area has to move to a new area or something like that to get started? >> I don't That's hard. You know, the number one thing with real estate is show up and answer the phone. Answer the phone. >> So. >> That's the biggest complaint about agents, we don't answer the phone. >> Yeah, yeah, no, really. And reach out to your sphere or other brokers that may have referrals and leads.

Make sure everyone knows where you are, what you're doing. Join something like Realm and network and tell them where you are. Like you've got to get the word out there. But it's also expensive because you have to do the marketing and show people you've arrived and be there. And at first you don't get the money back. So, it's costly.

So, you have to be sure it's going to pay back other than if you don't have the resources to do that, perhaps join with the team or get on with someone who's already doing it who can help you because otherwise it costs money to make it happen. You know, we spent a lot of money announcing that I was here and that I am here, what I'm doing to generate calls, but I also work with brokers and stuff and network.

>> Yeah, the team thing I think is really incredible because, you know, this is my 21st year and when I started teams weren't a thing over here. I don't know if they were where you are when you started, but here like it wasn't even I mean it was everybody was solo. I don't think anybody understood a team thing, you know, that structure just didn't really exist. Now, if I was starting now, that is absolutely what I would do.

Because just when I see the newer agents on my team already, you know, because they're all being a part of and seeing what each other's transactions, all the things that are going wrong, all the things that are going right, the ways to deal with issues that come up. Even if they themselves in their first year only sell a handful of homes, they're experiencing everyone else's and so they just automatically have so much more experience. >> Right, right. It's team thing's great for new agents. I didn't have that. And that wasn't a thing.

But I had my husband who knew what he was doing and helped me a lot or I wouldn't have not had a clue. So. But that's like having a team leader in a way. So. >> Well, Darlene, tell people how to find you. If they have clients going to Wellington or Santa Fe, what's the best way to find you? >> 561-531-2727 or 505-920-8001. And you can also just Google my name. I come up everywhere and you know the number's there. But anyway, uh 561-531-2727. Call me. I'll answer. Text me.

If you don't hear back, call me back repeatedly cuz I'll get I'll answer. I missed Well, you know, people go you didn't call me back. I'll go like, I missed it but I it doesn't happen much but it does happen cuz I will call back. So. >> Excellent. That's my number one takeaway. Answer the phone. >> Yeah, right. [clears throat] >> Yeah. Answer the phone. >> I mean, I answered my phone. Yeah. >> Well, Darlene, I I so appreciate you doing this and taking the time.

I know how busy you are and you've given us a lot of really good insight and nuggets to to think about. And I look forward to meeting you in person. Maybe in Austin. >> Maybe, yeah. Maybe. Thanks a lot, Rob. Thank you for having me. >> This is really good at this. I appreciate it. >> Thank you. Thank you. All right. Talk to you soon. >> Bye. If you enjoyed this conversation, be sure to subscribe, [music] leave a review, and share this episode with someone who would find value in it.

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