#633: Leveraging Data List with Kevin Schumacher

John Kitchens Coach Podcast | Life. Coaching. Real Estate

Leveraging Data List with Kevin Schumacher

Welcome to today’s podcast, where we dive deep into the world of real estate with a seasoned agent who’s not only survived but thrived through multiple market cycles over the last 30 years. In this episode, we explore how leveraging data can dramatically change how you run your real estate business. Our guest shares insights into how data-driven strategies have allowed him to build a business that's scalable, sustainable, and profitable while maintaining a personal life balance. Let’s dive into how this approach can transform your business.

Building a Sustainable Business Model

One of the key themes in today’s episode is building a business model that’s not dependent on you, the agent. This was a turning point for our guest, who realized the importance of removing himself from the day-to-day operations to allow his business to thrive independently. He recounts how a divorce in his early career was a wake-up call that forced him to rethink his approach.

"My business couldn't be Kevin dependent," he shares, referring to the moment he understood that his business needed to run without him for it to scale effectively. This realization led him to seek out mentors who could help him build a business that wasn’t reliant on his presence at every transaction. By doing this, he not only freed himself to focus on growth but also ensured the longevity of his business.

The key? Data. Using a data-driven approach, he was able to predict outcomes, forecast profitability, and scale his business in a way that allowed him to focus on strategy rather than transactions.

The Power of Data in Real Estate

Data has become the backbone of many successful businesses, and real estate is no exception. For our guest, data-driven strategies were not just an added benefit; they were a necessity. “It’s really a math equation,” he explains. “If I know I put $100 down, what’s my return going to be?”

This approach transformed his real estate practice from a hands-on, transaction-based business to one that operates efficiently with measurable returns. Data allows agents to make informed decisions, like identifying where to invest marketing dollars and predicting the potential return on those investments. It also helps to ensure that you’re reaching the right audience at the right time, eliminating wasted effort.

As he describes, "We hired a data scientist, and their data was pushing close to 80% accuracy... which is crucial because it turns out it's all about the contact rate." This level of accuracy gave him confidence in his strategies, knowing that his outreach efforts were targeted and effective.

Scaling Through Strategic Decision-Making

One of the most impactful aspects of today’s conversation is the emphasis on strategic decision-making. Real estate can be unpredictable, with market fluctuations and changes in buyer behavior. By adopting a data-focused approach, agents can mitigate much of the uncertainty.

Our guest shared how, in the earlier years of his business, he had to rely on intuition and relationships to grow. However, as the business grew, so did the need for systems and processes that could scale. This led to his deep dive into data analytics, which allowed him to strategically choose where to focus his efforts and resources.

“Being in the game as long as you have, you see cycles... and being data-savvy helps you navigate these with confidence,” he says. It’s not just about knowing where the market is today but also about predicting where it’s going next. This allows agents to plan their marketing efforts, focus on high-probability leads, and position themselves ahead of competitors who may still be relying on traditional methods.

Emphasizing Personal Life and Business Balance

Another key takeaway from the episode is the importance of balance—building a successful business while also being present in your personal life. The guest contrasts his approach to networking and business development with those of his peers.

“I’m sitting there enjoying the game with my son, and he’s running around buying people drinks... that’s not scalable how he’s doing it,” he explains. This personal anecdote highlights a common challenge in real estate: balancing personal commitments with the demands of running a business.

Rather than spending countless hours networking in person, he focused on building systems that would allow him to scale his business without sacrificing time with his family. By leveraging data and systems, he was able to maintain a strong personal presence while his business continued to grow.

Operational Efficiency Through Data

Data-driven strategies also enhance operational efficiency. By improving the accuracy of his lead generation and targeting efforts, our guest was able to significantly increase the efficiency of his team’s outreach. He recounts how the accuracy of the data they used improved dramatically from 35% to close to 80% after hiring a data scientist.

This improvement in accuracy had a direct impact on their results. Instead of wasting time and resources on inaccurate or outdated leads, the team could focus on high-probability contacts, maximizing their efforts and results.

As he explains, "We started getting into this platform where investors were buying homes at scale. I would find them a home, submit it, and it became a rhythm. The more dials, the more deals." By making data the centerpiece of his strategy, he was able to create a predictable, scalable system that produced consistent results.

Actionable Takeaways for Agents

If you’re a real estate agent looking to grow your business, this episode offers several actionable takeaways:

1. Embrace Data: Whether you’re just starting or have been in the industry for years, leveraging data will give you an edge. Use data to identify your target market, predict trends, and focus your efforts where they’ll have the most impact.

2. Remove Yourself from the Day-to-Day: Build systems and processes that allow your business to operate without your constant involvement. This will free up your time to focus on strategy and growth while ensuring your business can scale.

3. Focus on High-Value Leads: Data allows you to filter out low-probability leads and focus on those with the highest potential. This means less time wasted and more time spent on productive activities.

4. Balance Personal and Professional Life: Real estate can be demanding, but with the right systems in place, you can create a business that allows you to be present in both your professional and personal life.

5. Continue Learning and Adapting: As the market evolves, so should your strategies. Stay ahead by continually learning and adapting to new technologies and data-driven methods.

Conclusion

Today’s episode serves as a reminder that in an industry as dynamic as real estate, embracing technology and data isn’t just an option—it’s a necessity. Our guest’s journey from a traditional, hands-on business model to a data-driven powerhouse highlights the transformative power of leveraging analytics in real estate.

By embracing a data-centric approach, you can create a business that not only scales efficiently but also gives you the freedom to focus on what truly matters—both in business and in life.

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