Terrence Murphy Sr. grew raised in Chapel Hill, Texas, just outside of Tyler. After an outstanding football career at Texas A&M, he graduated in 2005 and was picked in the second round (58th overall) by the Green Bay Packers in the NFL Draft that same year.

 

Real estate became his main focus and passion after he retired from the NFL. In the Texas real estate market, he became a serious investor. He has built multi-million dollar revenue and 250+ bed portfolios for several development and acquisition enterprises. This is where TM5 Properties began and where it is still growing and expanding.

 

Over the course of his 11-year career, Terrence has personally completed $355 million in sales volume and has represented 1,017 different teams.

 

Watch the episode here:

 

Listen to the podcast here:

 

Unmatched eXp Value with Terrence Murphy Sr.

 

Brett:

I’m excited about our next guest and he’s out of the great state of Texas. I feel like anyone from Texas I just get along with and they’re great. I love it too, that he played football growing up so much so that he went to Texas, a big Texas A&M school, and went on to play for the Green Bay Packers. Then he got inspired to take all of his expertise of discipline and commitment to the real estate world, Keller Williams for a short period of time and now he had his own brand and now he’s taken his own brand into EXP but more than that, I would consider him like a Hall of Famer in that he’s closed over 6,000 transactions, and he actually invest in real estate himself, which is not a lot of agents do that. I’m proud to have him on the show. Please welcome to the show with me, Terrence Murphy. Terrence. How are you doing?

Terrence:

Thanks for having me. I’m excited to be on the show. Looking forward to what we’re gonna dive into.

 Brett:

Absolutely. For our listeners to get to know you for the first time, would you give us a little bit more about your story and your current focus? 

Terrence:

I’m born and raised in East Texas, which is a rural country town outside of Tyler came to Texas A&M on a football scholarship, was able to play and start and be two times team captain two-time first-team all-conference top draft pick. So I was able to have a really good career takes a name got drafted to the Packers in the first two rounds of the draft when the second round, ended up having a neck injury. my rookie year I retired and became a real estate entrepreneur. So I’ve been investing in developing real estate. We have 20 companies, or I think at 22 right now that we own and run, and we’re investing in over 50 companies because we invest in startups too. We really focus right now on expanding our brand. We were in an independent brokerage and like you said earlier, we got to 6,300 transactions, pretty much just say 6000 and 1.1 billion in volume by ourselves as a startup company, and we just merged with EXP and we’re excited about the opportunity to be a part of the family.

Brett:

Phenomenal. We’ll dive into all of that and that story on the EXP and, and you’re in your brand and what you’re doing there, but before we get there, Terrence, I want to go one other step back, I want you to go back to high school Texas football days, the Friday Night Lights, before the big college days. I believe we’ve all been given certain gifts in this life. These gifts are given to us to be a blessing and help to others. Some people call them strengths. Some people call them superpowers, I believe they are God-given gifts that have been given to us to help others and bless others. So I’m curious, what are those one or two gifts that you believe you were given? How does that help how you help and bless people today?

Terrence:

Visionaries one reading the book traction and rocket fuel. I’ve learned that visionaries are hard to come by. I’ve always been a visionary. I’ve always been a dreamer. I thought it was a dreamer. But now I’ve become an entrepreneur. I can see business moves that I can see ideas before the people can see them. I got to pitch them on. Then when it comes to fruition, this is what it would look like to develop your own neighborhood of modern house, this is what it looks like to start a brokerage and scale it to a billion in sales. This is what it looks like. So I’m like, but I saw that seven years ago. So visionary is a gift that I use now to try to bring people along with the vision and try to use it to impact people to make sure that they can be the best version of themselves. Also, I’ve learned that discipline and processes are something that’s a gift to the mind. Just teaching people how to achieve greatness or success, whatever they’re trying to pursue. That is very hard for people. When I saw it back as an athlete I had so many high school teammates, everybody wanted to go to college to play football, but the people who put the day in and day out processes in place. Obviously, there are some other things that go along with it are the ones that achieve that dream. So I’ve taken that experience in high school and then transitioned into business in life.

Brett:

Amazing. So let’s take those two things, being a visionary and also taking the action to do that, but also doing the practical day to day of teaching and disciplining in the processes. Let’s apply that for unlocking the unmatched value for exp. So, talk about that,  you’re this Hall of Famer rock star, over a billion in sales, and you got your huge brand and you’re in Texas, and you’re crushing it. all of a sudden someone comes knocking on your door and they’re like, hey, Terrence why don’t you come to check this thing out at exp,  talk about before and after? What was so attractive for you? And, and how does it unlock value for your agents and for your clients?

Terrence:

Stories with EXP gave me an opportunity to give everybody in my organization a seat at the table. it’s always been when you become a real estate agent, you want to scale and grow, then you want to grow a team, then you want to become a broker.  That’s just the usual basic transition. But as the broker I didn’t have a way to give them equity, I didn’t have a way to give the rev share, I didn’t have a way to help them build their organization. That model, when I really sat down and studied it, because years ago, Elizabeth Raleigh, Brent Grove, Jean Frederick, all of the Hall of Fame, people call me and I even had friends that started going over Kyle Whissel, a couple of other independent brokers that I knew just being a top broker in the state. But when I looked at everything I mean, at that time, and I made the decision, I was talking personally with Gary Keller, I was talking to compass I was talking to Berkshire, I was talking to everybody out there because we were an independent but the model of being able to give those revenue streams and the equity in the way that you can help other people have a seat at the table once I saw that model is second to none.

Brett:

Yes, and as a part of EXP commercial myself, not as big of a luxurious career with the independent brand but I was at Marcus and Millichap and I remember giving 50% away of the Commission’s not having a seat at the table not getting any stock not getting any revenue share. Not being on the right side of the quadrant, if you study the Rich Dad Poor Dad model.  Business Owner investor versus just w two employees or self-employed. When you understand that, and it clicks, it’s like nothing you’ve seen before. But it took me a while to even have an open mind or take my pride off or the false beliefs that I had in my mind. Like what you said, you were talking these people, they’re all calling you, these guys are all Hall of Famers on their own. But what was it that finally, what did you have to do in order to become a believer, if you will?

Terrence:

I think it took me after the right of my independent brokerage, leading it, scaling it growing it, I did all the training I did. I was at the time only hiring brand new agents. We know they take a lot. I just honestly, the liability, I started seeing the Texas lawsuits getting crazy the funding that you needed to in order to provide the right technology for your agents. I was like, I’m everybody knows, I’m going to study and I’m going to work and I’m going to travel like no one will ever be out in front of me. I’m pretty innovative. But also I’m a realist. When I started looking at the funds that it takes to truly build the platform, and build the other options that agents needed in order to scale I said, it didn’t make sense for me as the broker. So I’m still a broker in the state of Texas. But now, I was able to offload a lot of the liability in the training, it’s 80 hours of live training every week, at EXP, a lot of that stuff. I’m not having any more conversations about how to write a contract. So it’s been life-changing.

Brett:

That’s amazing. I love that Glenn had a vision because he was an agent like us starting out in Seattle, before the 2008 crash, and he’s going, and everything hits the fan. I think there’s a better way, he had a vision. He took courage. He went after it, just like you did from college football or high school, a lot of college scholars in the NFL, but he put these processes in place. He didn’t let the pride of the status quo stand in the way. Now that you’ve done this and also I also before we go there, the seat at the table, I think is really important,  when you give opportunities for people to be owners alongside with you talk about that kind of that alignment financially and becoming like a family with people that you’re doing business with versus just like a colleague or someone that you’re competing within the office. Talk about that come water and how that creates that team atmosphere for your organization?

Terrence:

They say your vibe attracts your tribe, and I can say there’s been a lot of people that are seeing what we’re doing. I mean, you guys, I’ve only been in EXP for seven, eight months. But we’re in 18 states, two countries. I’m at 60 frontline agents and well over 100 In my first seven months So I don’t know whether it compares to what everybody else was doing. I’m just running my own race. But what I can say is the vibe that we’re creating is second to none.

Brett:

Fantastic. So now let’s transition to the overall root cause. Before that, if you want to learn more about the EXP model, and you want to talk with Terrence, you can head over to his website, which is terrencemurphy.com. If you want to talk about EXP commercial, and other areas as well. I’m a part of EXP, Terrence has a bigger, better brand. That sense, I got some capital gains tax for some cool stuff, the 1031 exchange. But we’re all part of this EXP family, which is cool as we get to podcast and share stories and share insights and share secrets, and collaborate across the country. Now moving to the world, multiple countries, with all of our gifts and talents, which is part of what I learned very quickly. It’s not just the model. It’s not just the seat at the table. But it’s feeling like it’s a part of a family, you’re doing this thing together. They truly do care about us as agents and being a part of something that’s bigger than ourselves. So to me, it’s like a movement. It’s not just another like add-on,  It is the Amazon versus old Circuit City, it is the Netflix versus blockbuster. But it’s a movement across the world. That’s changing real estate forever. So just speak to how much bigger than when you first got into you’re like, this is cool,  I can save on technology, or I could help my agents a little bit better. But talk about now that it’s been eight months, are you becoming even more of a believer than you when you first started?

Terrence:

If you want to hear more about what we’re doing in our organization, go to jointm5.com. I think since I’ve been here in eight months, Michael Valdes is an animal. I knew him when I was at a leading art. He was at Sotheby’s. I was talking to some of these about putting a franchise here in BronyCon Station because there is no one there is no Sotheby’s in Central Texas. We kind of dominate the million-dollar-plus listings around here. Like last year, I did 17 $1 million transactions by myself. In conversation, selling 17 $1 million properties is not normal. But I say that to say I knew of Sotheby’s and I knew of Michael. Obviously, he came over to exp to lead the EXP global. That part to me is that’s one of the most amazing pieces to the puzzle. We have a 50 point value proposition that we go over, we took EXP, and we took TM5 and we said here’s our 50 point value proposition. It is a lot. It really is because if you think about it, that means you can know an agent in all 50 states and in 20 countries right now, which will be more. If you have a relationship with them, if they’re a family member and you want to help them, you want to partner with them. You can literally do that in one week. Just that in itself is not normal.

Brett:

It’s amazing. For those who may not know Michael Valdes, he’s like a Hall of Famer when it comes to like international and luxury. He’s fantastic. That’s part of what I learned too. The longer I’ve been with EXP, the quality of leadership, entrepreneurial spirit, open mind technology, moving forward, not the old model, like and then really, how do we put the agent first, how do we take so good care of the agent and bless them so much so they can go and just bless their clients even more. that’s the thing that you can’t experience until I really got along. I was a part of it because I was a skeptical person. I was like, Hey, I don’t know. But my buddy knew him. In my college days, I was playing some college hoops on scholarship, which was cool. He was the golf coach at a small Christian School here in Northern California. We’re playing together and he was at Coldwell Banker. He was in KW. Then he called me and this is like a year and a half ago and I’m like, Well, I thought that was just like MLM, or I thought that was something crazy like, I didn’t look at the model or meeting anybody before like five years prior. But then I said, I’m gonna trust you. He told me Tom Dave’s is no Mike Tomlin, he is like Tom Brady’s, like sold 7000 transactions. KW was number one in the world seven different times at KW, I guess, maybe I’m missing something like, I need to take and take a look at it. So I’m gonna go, I’m gonna give it a shot. I go, I’m not recruiting, and I’m just gonna sell my commercial real estate and I sell the Deferred Sales Trust like, and I looked at him in the eye and I’m like, Okay, no problem. Like really they’re not blinking the eye they’re starting to attend the mastermind start to get to know the people. Every single I feel like every week, it just got better and better and better. I flew to Cabo. I’m like, these are my people I wish I would have known earlier. So talk to the person right now who’s skeptical or even like, no, it seems like it’s the future but I’m just gonna hold on to where I’m at. I’m comfortable where I’m at right now. Talk to that person right now. 

Terrence:

Well, it just takes one example.  I can give you safety but just look at Bella and the way that we communicate, a cloud-based brokerage. When you heard that five years ago, seven years ago, nine years ago, even two years ago before the pandemic people were laughing about it. I even remember seeing some quotes that are Donkey Kong technology, whatever it is, and now fast forward, and you look up COVID.people are stuck, and they can’t get community and they’re not set up to train and be in the world and do all those things. It takes the Facebook of the world and Elon Musk of the world to give it a name, Metaverse, and cryptocurrency all these things. But if you really look at the metaverse, will your Sandbox decentraland or whatever. EXP has been meeting in the metaverse for years. So I don’t know somebody said that. Glenn was at Inman and he said, it’s not the middle. No, it’s the metaverse like we’re meeting in the metaphors. We need to know that and accept that. We were one of the innovators, real estate brokerages on how to meet without being in person. So I think that just that example tells you where the company is headed, how far ahead it is. Now it’s crazy because I was literally in the metaverse and I saw a franchise brokerage bragging about now they have an office in the metaverse and I’m not gonna say the franchise name. But I’m like y’all are like 10 years behind what EXP has been doing. That just goes to show the innovation in some of the other things that we’re working on that I know aren’t even public knowledge yet.

Brett:

I can’t help it correlate that with your vision, being a visionary yourself. Going earlier, although you just joined eight months ago, you’re probably like, I wish I did 20 years ago, but they’re all there are different timings different reasons. For all those things, it’s not I don’t want to make it so simple. But I do want to encourage those that have these roadblocks will talk with parents or literally like how do you solve that? Like there’s it’s a Rubik’s Cube and you got to get some stuff to line up. We’ll get some help with that.  Don’t just get caught in what you’re doing in the grind of disclosing deals and doing deals look at the bigger picture and how can they serve your community, your tribe, your people, your clients, ultimately, and realize that there’s a reason we’re on here even talking about this because it is that amazing. But that being said, I want to shift into 1031 exchanges and Kryptos because you’re also an investor as well. I’m curious.  

Terrence:

I want to say this, I think this is very important. If you are entertaining EXP you need to look up Brett, you need to study and you need to call him you need to talk to him. You need to look at whoever you’re thinking about joining under because I will say this is something I’ve noticed, I keep getting so many calls from people at EXP saying can I join your organization? They’re like, I see what you’re doing. I’m on clubhouse with you, I heard your podcast, I heard about your coaching business, I see what you’re giving, like what you’re doing for your organization, can I join, I’m like, you’re already a part of somebody’s organization. So I would just say like, as he said earlier if you’re considering it, just do your due diligence, and make sure you are part of the right organization. That’s very important. 

Brett:

100% aligned your business with the people and you’re in the future. I may be commercial, he’s experienced this, although he does investments too. He’s in Texas, I’m in California. At the end of the day, this helps both of us. So reach out to both of us talk with us. We’re here to encourage you to bring more into the family. So that being said, 1031s in crypto. So part of what we do here, Capital Gains Tax Solutions, which is my company, we help people eliminate the need for the 1031 exchange. But sometimes 1031s can be frustrating,  Or they don’t work for these high-end primary homes that you’re selling 17 of them for a million. People are like, I only have a 121 exclusion. So I’m curious, what’s the biggest frustration for you or your clients when it comes to the 1031 exchange? Is it something like you wish crypto could be 1031 Exchange? Like what’s kind of your idea there?

Terrence:

I think Bitcoin, crypto, Etherium, Solana, the list goes on that’s coming strong to the real estate space. If you’re not looking at it, if you’re not studying the metaverse, if you’re not studying cryptocurrency, you’re fooling yourself. It’s coming. So let’s just put that out there. We said it here first. Because I’m blown away by how many realtors are saying, well, it really won’t affect us know this is coming our way like, so get ready. But 1031s, I would say this is the biggest struggle we have because I sell a lot of ranches too. So in Texas 1500 acre ranches. They want a 1031 out of it. There’s obviously a lot going on, they’re trying to identify the right property in a market where there’s no inventory. That’s the struggle we’re having right now when we’re selling these multifamily big ranches or these high net worth homes, is where do we move our equity into, and do we have the time to identify the right property?

Brett:

I call it the shotgun wedding.  You have those friends that got married real quick and engaged and married fast. You have 45 Day engagement. You got 180 days to get married. Sometimes you overpay and you don’t find that deal that you want to buy. You basically let the tax tail wag the bag, the investment dog, and when you couple that with the baby boomers terrorists, this is kind of staggering. Like there’s literally $32 trillion that’s going to pass from the Baby Boomers to the millennials in the next 20 years. This is known as the largest wealth transfer in the history of the planet, 10,000 baby boomers turning 65 every day, 77 million in the US alone, then did you say all-time highs in the stock market? Real estate values crypto until the last month and a half or so it’s kind of dropped. 

Terrence:

Up over 40 today?

Brett:

All right. It’s back. So all that being said, we have a solution for this. I’m curious what you think, I don’t know if you’ve heard about this thing, but we call it the Netflix to the old blockbuster. Like EXP is the old old-school brokerage model. We have a thing called a Deferred Sales Trust. It’s not a Delaware Statutory Trust. It’s not a TIC, it’s not a 1031. In fact, that allows you to exit out of cryptocurrency, public or private stock, primary homes, ranches, businesses, and real estate. Remember blockbuster only works for investment, real estate, doesn’t work for any of those other assets. The cool thing is once you’re there, the funds can be invested with you all tax-deferred whenever you want into real estate. To me, like it blew my brain, Marcus and Millichap like, we’re the Navy Seals of multifamily investment 1031 exchanges brokerages, and in 2009, I felt like I was one of the only guys looking around going, do you hear what these guys have said? He just said we have Netflix. He says we have the metaverse and this tax deferral strategy. Are you guys understanding if this is true, and this works, what this means and so I’ll give you a couple of deals, stories, parents, and I’m curious what you think? So we just did a deal where she worked for a top tech company in California. She’s in her 20s. She bought Bitcoin for about 50,000 and guess she never sold it went to 50 million. So she has about a 49 and nine gain. So she exited using our trust strategy, like 1031. She put it into a business, tax-deferred, all tax-deferred. So she exited there. I have another client who’s building 72 multifamily units in Tennessee. He sold in Alabama for 2.6 million a business partner with 8 billion we got some actually we did some clients in Texas in Lubbock. We got some clients who did some acreage as well, we save their failed 1031. Like your clients who are challenged with that pass their 45 days, we can save it like all of these things. But people hear the EXP thing like well, is this too good to be true? Where is it been? What’s the thing? But I’m curious, had you heard about that? What are your thoughts on all that?

Terrence:

It’s crazy. It’s one of those deals where it came across my desk. Obviously, at this point, just being in the field, and being an entrepreneur now for 15 years, and being really pretty much in finance the last 15 years finance real estate. I’ve seen a lot come across my desk, but this one came across my desk a couple of years ago. It did feel that way. I was like, that seems low. Like something’s not right, or do we got to set it up a certain way. If we don’t do it that way. It doesn’t come back to haunt us. Now we got to be double tax-like, so you’re right. I think it’s the thing is what would like when people don’t understand something that creates fear, uncertainty, and almost that like apprehensiveness. I think like you said, EXP once you really study the model, that makes so much sense. I just had this mental block because people had told me so much negative stuff. I mean, I would love to hear more about it and dive into it.

Brett:

So you go to capitalgainstaxsolutions.com. For those who are wondering, we also have our Crypto DST Mastermind every Friday, totally free, everyone can join. We have real estate CPAs professionals, financial advisors, cryptocurrency experts, we have a guy on today which is kind of cool. Terrence, this guy does artwork, he takes artwork and makes them into NFTs, and then he’s selling it out and he literally was like well we have a $69 million deal, we have an $11 million deal, he was having $100 million deal is closing in the next three weeks and I’m like well we got to get this thing set up prior to like we got to move pretty fast he’s like I’m gonna send you guys so much business he’s in that art world and people are looking to exit well the NFTs, their Bitcoin, whatever other coins, diversify, tax-deferred and go to the next thing so again people can learn about that by going to capitalgainstaxsolutions.com. That being said, we’re running out of time so are you ready for the lightning round?

Terrence:

Let’s go, bro. I’m ready

Brett:

All right. Knowing what you know now if you go back to your 25-year-old self with one golden nugget you make sure to tell yourself to do?

Terrence:

Invest more, buy more multifamily.

Brett:

Multifamily for sure. So you get that cost segregation, you get that accelerated depreciation, you can offset your taxes. That is the best-kept secret too for a lot of this. The next question is this. What’s the number one book you recommend or get to the most of the past year?

Terrence:

Why the Rich Are Getting Richer by Robert Kiyosaki.

Brett:

Question number three, what’s the number one leadership quote or theme that you strive to live by?

Terrence:

Every problem has a solution. You just have to be creative enough to find it.

Brett:

Who’s won the Super Bowl.

Terrence:

Wish the Packers but I’ll go with the Rams.

Brett:

Second to the last question. What are you most curious about?

Terrence:

What my kids will be like when they grow up? You know I’m always thinking about them.

Brett:

How many kids do you have?

Terrence:

Three, two girls and a boy.

Brett:

Cool. I got four girls and a boy so that’s fun. Here’s the next question, are you a football guy?  Are they gonna play football? What do you think about the head stuff?

Terrence:

Junior won’t play into eighth grade. He’s an animal. Look up my Facebook, he asked me to show you a little highlight reel. It was crazy. 

Brett:

What position he was gonna play?

Terrence:

He’ll be a receiver quarterback like me. 

Brett:

First of all, thank you for being on the show. Going through the lightning was fast. After all your success, NFL, college football, real estate, all the businesses. I’m curious. What’s the number one habit you try to practice every day to help you stay centered in your values? How do you also stay encouraged to charge to reach new heights?

Terrence:

Can I give you two? Just actually three, keep dreaming. One is just kept dreaming. Like, there was a season of my life after I got injured. I just wasn’t dreaming and it was terrible. I just want people to just keep dreaming. Even if you missed out on some, some things obviously I didn’t get to have the NFL career I had the ability to have my roommate was Aaron Rodgers, there’s going to be a Hall of Famer, double MVP, and it wasn’t in my car. So just keep dreaming. Number two is spending time with people that you truly love. That truly love you like quality time like uninterrupted just sit out on the back patio, do nothing with your lifetime. Then number three that I do is meditation in breathing. Everybody talks about hydration. Everybody talks about working out everybody talks about sleeping, resting but they don’t talk about breathing and they don’t talk about meditation so I really added that into my routine. It’s been amazing.

Brett:

Amazing, Terrence. For those who want to get in touch with you, what’s the best place for them to find you?

Terrence:

A couple of places, I’m on LinkedIn. So just look me up, Terrence Murphy. On Instagram, @terrencerealtor, and then also you can find me at terrencemurphy.com or jointm5.com if you got more questions on that.

Brett:

Thank you, Terrence Murphy. I want to encourage you to keep being the visionary, to keep teaching people to discipline and processes, and keep dreaming, spending time with people you love. In the meditation breathe and take upon that burn that breathing part. I don’t quite know yet what that means exactly, but I’ll figure that out. Truly thank you for being on the show. Hope to have you again back real soon.

 

 

Important Links:

 

About Terrence Murphy Sr.

 

Unmatched eXp Value with Terrence Murphy Sr.

Terrence Murphy grew raised in Chapel Hill, Texas, just outside of Tyler. After an outstanding football career at Texas A&M, he graduated in 2005 and was picked in the second round (58th overall) by the Green Bay Packers in the NFL Draft that same year.

Real estate became his main focus and passion after he retired from the NFL. In the Texas real estate market, he became a serious investor. He has built multi-million dollar revenue and 250+ bed portfolios for several development and acquisition enterprises. This is where TM5 Properties began and where it is still growing and expanding. Over the course of his 11-year career, Terrence has personally completed $355 million in sales volume and has represented 1,017 different teams.

 

 

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