Ryan Serhant Reveals The MINDSET Behind His Billion Dollar Empire
In this episode of The School of Greatness, Ryan Serhant opens up about his journey to find his true passion in sales, and the mindset shift that led him to prioritize genuine happiness over a desire for importance. He shares insights into the consistent effort and growth mindset that fueled his success, including building his own real estate empire during the pandemic.
Serhant offers a candid look at the real estate market, from Gen Z's rise in home purchases to his predictions for a potential rebound in 2025. Drawing inspiration from billionaires, he discusses the differences between earned and inherited wealth mindsets, and the importance of thinking bigger and taking significant risks rather than playing it safe.
This is a preview of the Shortform summary of the Nov 4, 2024 episode of the The School of Greatness
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1-Page Summary
Ryan Serhant's Journey and Mindset
Ryan Serhant shares insights into his relentless pursuit of his passion for sales, a shift from seeking importance to happiness, and his focus on consistent effort and growth mindset.
Finding His Passion
Serhant tried various hobbies and jobs before recognizing his passion for sales, though he initially wished it had been in another field like coding. His journey involved aligning his diverse business ventures with this core passion.
Prioritizing Happiness Over Importance
Serhant formerly placed excessive importance on feeling important rather than genuinely happy. A defining moment at 40 made him realize his drive stemmed from feelings of insignificance, inspiring him to course-correct.
Capacity and Consistency
Serhant views his capacity for hard work as a "superpower," emphasizing unwavering work ethic, taking risks, and aligning people with his passion. He credits constant effort for his success and "luck," drawing inspiration from billionaires' relentless drive.
Building His Real Estate Empire
Despite doubters, Serhant launched his own real estate firm during the pandemic, leaving reality TV behind. He experiments with new ideas like apps/virtual worlds, learning from failures.
Employee retention is crucial; he values those aligned with the company's purpose. Hiring leaders unafraid to challenge him is key to improvement.
Real Estate Market Insights
According to Serhant:
- High interest rates led to the fewest home sales in 30 years in 2023
- Gen Z is outpacing millennials in home purchases, often with boomer parents' financial aid
- 2025 could see a housing rebound as rates stabilize and inventory rises
Lessons From Billionaires
Serhant notes differences between earned and inherited wealth mindsets. The self-made prioritize efficiency, swift deal-making via texts/apps, optimizing time.
Being around billionaires inspires Serhant to "think 100x bigger" - aspiring for massive $10B+ valuations through significant risk, not playing it safe.
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Additional Materials
Counterarguments
- While Serhant emphasizes the importance of hard work and consistent effort, it's important to recognize that success is not solely the result of individual effort; market conditions, timing, luck, and privilege also play significant roles.
- The idea that happiness should be prioritized over importance is subjective and may not resonate with everyone, as some individuals may derive happiness from feeling important or achieving status.
- Starting a real estate firm during a pandemic could be seen as risky, and while Serhant's venture may have succeeded, similar strategies might not work for everyone, especially those with less capital or industry influence.
- The emphasis on employee retention and hiring leaders who challenge him is commendable, but it's also important to consider the broader context of the work environment, including work-life balance, company culture, and employee empowerment.
- Serhant's insights on the real estate market are based on past data and trends, but the market is unpredictable, and unforeseen economic factors could alter the outcomes he predicts.
- The distinction between earned and inherited wealth mindsets might oversimplify the complexities of wealth accumulation and ignore the nuances of individual circumstances.
- The approach of thinking bigger and aiming for massive valuations through significant risks may not be suitable for all entrepreneurs or businesses, especially those that are risk-averse or operate in more stable, less growth-oriented industries.
- The focus on Gen Z surpassing millennials in home purchases with financial aid from boomer parents does not address the broader issues of housing affordability and intergenerational wealth disparities.
Actionables
- Explore your interests through short-term volunteer work or internships to find your passion. By engaging in various activities without long-term commitment, you can identify what excites you and where your strengths lie, similar to how someone might discover a love for sales through diverse experiences.
- Create a "happiness journal" where you document daily activities and rate your happiness level. Over time, analyze the patterns to understand which aspects of your life contribute most to your genuine happiness, guiding you to make more fulfilling life choices.
- Set up a monthly "innovation hour" where you brainstorm and write down new ideas, no matter how unconventional. This practice encourages a mindset of experimentation and learning from failures, fostering personal growth and resilience.
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Ryan Serhant's personal journey, mindset, and drive for success
Renowned for his success in real estate and appearing on television, Ryan Serhant shares insights into his personal journey, the drive that continues to propel him, and the crucial mindset shifts that have shaped his path to success.
Ryan's relentless pursuit of finding his passion and purpose
Ryan has actively sought out his true passion and purpose, trying various hobbies and jobs from sports to different classes. He describes the process as being introspective and sometimes compulsive about building and creating more each day. He conveys a determination to discover what he excels at and fully commit to it once it’s found. Serhant ultimately identifies sales as his core passion, although he acknowledges that part of him wished it had been in another field such as coding or chemistry.
Despite uncertainty about his purpose early on, Ryan’s resolve to find his focus has led to a comprehensive investment of his energies once he recognized his aptitude for sales. This journey included a reflective process on aligning his diverse business endeavors, such as real estate transactions, media appearances, and speaking engagements, with his singular passion.
Shifting from feeling important to feeling happy
Ryan candidly discusses his past focus on importance over happiness, acknowledging a reset in his understanding of what's truly meaningful at age 40. Despite substantial success, Ryan shares his struggle between desiring to feel important and leading a simpler, contented life. In a conversation with Lewis Howes, Ryan examines whether his drive for importance stems from feelings of insignificance in his youth. He reveals a defining moment during his 40th birthday when he realized he had been more driven by a desire to feel important than by what genuinely made him happy.
Adopting a mindset of capacity and consistency
Serhant’s core principles of an unwavering work ethic, willingness to take risks, and capacity for growth are at the forefront of his drive. He underscores the need to align people with his passion for sales, viewing it as crucial for unlocking human potential and emphasizing the necessity of retention and growth. Ryan considers his capacity for har ...
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Ryan Serhant's personal journey, mindset, and drive for success
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Counterarguments
- While Ryan identifies sales as his core passion, it's worth noting that not everyone may find their passion in their first career choice, and it's okay to pivot or have multiple interests.
- The idea of fully committing to one's passion might not be feasible for everyone, especially those with financial constraints or other responsibilities that require a more pragmatic approach to career choices.
- The shift from seeking importance to prioritizing happiness is a personal journey, and what constitutes happiness can vary greatly from person to person. Some may find that their sense of importance and purpose is integral to their happiness.
- The mindset of capacity and consistency, while admirable, may not be sustainable for everyone and can lead to burnout if not balanced with rest and self-care.
- Viewing hard work as a 'superpower' could inadvertently downplay the role of privilege, resources, and networking that often contribute to one's success in competitive fields like real estate.
- The narrative that hard work alone leads to success may not always hold true in a complex and often unequal economic landscape where luck and external factors play significant roles.
- Drawing inspiration from billionaires might not resonate with everyone, as such levels of suc ...
Actionables
- You can explore your interests by dedicating one weekend a month to trying out a new hobby or job-related skill. This could range from volunteering at a local charity to taking a short online course in a field you're curious about. The key is to immerse yourself in a variety of experiences to uncover what truly resonates with you, much like sampling different cuisines to discover your favorite dish.
- Start a "happiness journal" where you jot down daily activities that bring you joy, no matter how small. This practice will help you identify patterns in what makes you genuinely happy, steering you towards a simpler, more contented life. For instance, if you notice that reading before bed consistently appears in your journal, you might decide to invest more time in this activity and create a cozy reading nook in your home.
- Implement a "consistency challenge" by picking one goal and work ...
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Building and scaling Ryan's real estate business and other ventures
Ryan Serhant discusses his journey of leaving reality TV to establish his own real estate company during the pandemic, exploring new ideas, and emphasizing the importance of team retention and alignment with the company's purpose.
Pivoting to start his own real estate company during the pandemic
Despite advice against it and the uncertainties and risks, Ryan Serhant saw the pandemic as an opportunity and launched his own real estate company, Serhant, in 2020. He left behind the reality show "Million Dollar Listing New York," which had given his career a significant boost. Ryan and his team worked from a rented townhouse in the city amidst security concerns and boarded-up windows. He focused on working hard every single day, avoiding analysis paralysis, and aiming to progress from good to great. His aim was to redefine real estate brokerage on a global scale, building a sales training platform called sellit.com and Serhant Studios, with an undercurrent of tech enablement.
Experimenting with new ideas and learning from failures
Ryan admits he's not afraid to try new ventures, even if they don't always succeed. He launched an app named Spaces to help real estate agents easily create property tours, but it failed because he didn't properly assess what agents needed. Similarly, he developed the Sirhan Universe virtual world, which also lacked adoption due to limited utility for others. Despite the financial costs of these projects, Ryan sees them as valuable lessons, leading him to develop a new software called Simple, which he started beta testing in January, taking insights from his past ventures.
Furthermore, Ryan launched "House of Sirhans," a non-traditional real estate office, and pitched various show concepts to several networks, embracing different platforms for his ideas. His willingness to experiment is further demonstrated by his investments in real estate-adjacent tech companies and consumer products, like Blank Street Coffee, because of its innovative technology.
Focusing on retention an ...
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Building and scaling Ryan's real estate business and other ventures
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Clarifications
- Blank Street Coffee is an American coffee company and chain that was founded in 2020 in Williamsburg, Brooklyn. It quickly expanded to operate multiple locations in New York, London, Boston, and Washington, D.C. The company was inspired by high-growth, small-format, and mobile-first food retail businesses in Asia, aiming to replicate that success in the U.S. Blank Street Coffee's f ...
Actionables
- You can start a side project during a period of uncertainty to explore new opportunities and learn resilience. Choose something you're passionate about, like a blog, a craft, or a local community initiative, and dedicate a few hours each week to develop it. This will teach you to navigate risks and adapt to changing circumstances, much like starting a business during challenging times.
- You can create a personal mission statement to guide your decisions and actions. Reflect on what you value most and write a clear, concise statement that encapsulates your goals and principles. Use this as a compass for making choices, whether it's changing careers, starting a new hobby, or deciding how to invest your time and resources.
- You can practice embracing and learnin ...
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Insights and predictions on the real estate market
Lewis Howes discusses insights and predictions with Ryan Serhant, considering the current real estate trends and what might unfold in the coming years.
The impact of high interest rates on the current housing market
Ryan Serhant notes the substantial impact of high interest rates on the current housing market, pinpointing the fact that 2023 saw the fewest home sales in three decades.
The sudden rise in interest rates has led to a significant slowdown in home sales, with 2023 seeing the fewest home sales in 30 years
According to Serhant, the figure was about 4 million home sales—a historically low number. With interest rates soaring to 8%, individuals with mortgages under 5% were discouraged from refinancing or selling their homes. This high rate regime brought the housing market to a standstill and led to a shortage of available homes.
Generational shifts in home buying trends
Serhant highlights an interesting generational shift in the realm of home buying.
Younger generations, particularly Gen Z, are increasingly purchasing homes with financial support from their baby boomer parents
He observes that Gen Z is outpacing millennials in home purchases, frequently with financial aid from the "greatest money-saving generation" -- their baby boomer parents. These parents prefer to invest in homes for their children over alternatives such as paying rent or housing them, retaining ownership of the property while the children handle the carrying costs.
Opportunities and challenges in the real estate market in 2025
Looking ahead to the future, Ryan Serhant makes informed predictions about the real estate market's trajectory.
Ryan predicts a potential rebound in the housing market in 2025 as interest rates stabilize and more inventory becomes available
Lewis Howes recalls Serhant's bold predictions for 2024 and asks about the accuracy of those predictions as the year comes to a close. For 2025, Serhant predicts a turnaround, foreseeing a rapid absorption of current stock and an increase in listing inventory. He suggests that this will come as a result of lower interest rates, greater economic stability ...
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Insights and predictions on the real estate market
Additional Materials
Clarifications
- High interest rates can impact home sales by making it more expensive for buyers to borrow money for a mortgage. When interest rates are high, monthly mortgage payments increase, which can deter potential buyers from purchasing homes. This can lead to a decrease in home sales as fewer people are able or willing to buy homes under these financial conditions.
- Generational shifts in home buying trends refer to changes in the preferences and behaviors of different age groups when it comes to purchasing real estate. This can include how younger generations approach buying homes compared to older generations, as well as any influencing factors such as financial support from parents. Understanding these shifts helps in predicting market trends and adapting strategies to cater to the evolving needs of buyers from different age groups.
- Financial support from baby boomer parents for home purchases is a trend where younger generations, like Gen Z, are receiving financial assistance from their parents, who are typically from the baby boomer generation, to buy homes. This support can come in the form of down payments, co-signing on loans, or providing funds for mortgage payments. Baby boomer parents often see investing in real estate for their children as a way to help them secure housing and build wealth. This trend reflects a shift in intergenerational financial dynamics and the evolving landscape of home buying strategies.
- Ryan Serhant predicts a potential rebound in the housing market in 2025 due to stabilizing interest rates and increased inventory availability. This forecast is based on expectations of lower interest rates, improved economic stability, and other factors contributing to a stronger housing market. Serhant suggests that these changes could lead to a rapid absorption of current housing stock and a rise in listing inventory, indicating a positive trend for the real estate market in 2025.
- Real estate is considered a secure long-term investment due to its potential for appreciation over time, providing a hedge against inflation and offering a source of passive income through rental properties. Investors often view real estate as a tangible asset that can provide stability and diversification to their investment portfolio. Additionally, real estate investments can offer tax benefits and the potential for leveraging through mortgages to amplify returns. The long-term nature of real estate investments allows investors to ride out short-term market fluctuations and benefit from the long-term growth of property values.
- Providing liquidity to those without home insurance after natural disasters typically involves offering financial assistance or access to funds to help affected individuals or families recover and rebuild their homes. This support can come from various sources, including investors or organizations willing to provide financial aid in the absence of ...
Counterarguments
- While high interest rates may have led to fewer home sales, it's also possible that other factors such as economic uncertainty or changing demographics played a role.
- The trend of Gen Z buying homes with help from their parents might not be sustainable as it could lead to increased debt levels for both generations and might not reflect the broader economic realities of most young people.
- Predictions of a market rebound in 2025 are speculative and depend on a variety of unpredictable economic factors, including government policy changes, global economic conditions, and shifts in consumer confidence.
- Real estate investments carry risks like any other investment, including market volatility, property devaluation, and the impact of unforeseen events such as natural disasters or economic downturns.
- The role of investors in providing liquidity post-natural disasters could be seen as opportunistic, and it may not always result in fair outcomes for those in de ...
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Advice and lessons learned from working with billionaires and high-net-worth individuals
Ryan Serhant shares his insights and observations from working with both self-made billionaires and high-net-worth individuals who inherited their wealth, highlighting their unique approaches to wealth management, decision-making, and time management.
The differences between earned wealth and inherited wealth
According to Ryan Serhant, there's a distinct difference in attitude between billionaires who have earned their wealth and those who have inherited it. Individuals with inherited wealth tend to be more fearful and protective of their money. This is contrasted by their counterparts who have earned their wealth and view money as a tool to be leveraged for further success. Serhant introduces the concept of the "Malcolm McDowell bell curve," which posits that the person who generates the wealth uplifts the family, while the one who inherits the wealth may contribute to its decline.
Billionaires' unconventional approaches to decision-making and time management
Serhant points out that billionaires who have earned their wealth tend to value their time highly, always looking to make the most of it. He shares anecdotes of these billionaires conducting nine-figure deals through swift communication methods like texting or apps such as Signal. These actions illustrate their preference for high-leverage activities and efficiency over traditional protracted negotiation processes. Trust plays a critical role as successful billionaires often rely on advisors to present them with a curated set of options, allowing them to delegate the decision-making process effectively.
Additionally, Serhant observes that billionaires optimize even the smallest moments to save time, such as deferring choices on a menu to waitstaff at reputable restaurants to focus on their dining companions. This behavior underscores their broader app ...
Here’s what you’ll find in our full summary
Advice and lessons learned from working with billionaires and high-net-worth individuals
Additional Materials
Counterarguments
- While individuals with inherited wealth might be protective, it's not universally true; some may be just as entrepreneurial or risk-taking as self-made billionaires.
- The "Malcolm McDowell bell curve" is a generalization and may not account for the complexities of wealth management across different families; some inheritors may grow the wealth significantly.
- Valuing time and preferring efficient communication does not necessarily correlate with wealth; people from various economic backgrounds may share these traits.
- Delegating decision-making to advisors can be effective, but it also carries risks if the advisors are not fully aligned with the billionaire's interests or lack the necessary expertise.
- Optimizing small moments for efficiency might lead to overlooking the importance of relaxation and personal relationships, which are also valuable aspects of a well-roun ...
Actionables
- You can create a "time value" diary to prioritize tasks that align with your goals, similar to how billionaires optimize small moments. Start by tracking how you spend each hour of your day for a week. Then, review your activities and categorize them based on their contribution to your personal or professional growth. Gradually replace low-value tasks with high-impact activities that propel you towards success.
- Develop a "leverage plan" to use your resources like self-made billionaires. Identify assets you have, such as skills, knowledge, or networks, and brainstorm ways to use them to create opportunities or generate income. For example, if you're knowledgeable about social media, consider offering consulting services to local businesses looking to improve their online presence.
- Engage in "decision delegation" exercises to enh ...
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