Ideas Mean Nothing Without Execution | Leo Pareja - CEO of eXp Realty (EXPI)
Here are the top 10 key takeaways from Leo Pareja's conversation with Scott D. Clary that reveal the mindset and strategies behind his success as an entrepreneur and CEO of eXp Realty.
1. Success comes from consistency rather than special talents
Leo Pareja emphasizes that success isn't primarily about innate talent but about consistent effort over time. He believes many people mistakenly assume successful individuals achieved their status through natural gifts rather than persistent work. This misconception leads aspiring entrepreneurs to underestimate the importance of repetition and practice.
Pareja shares how he improved his own communication skills through repeated practice, eliminating filler words and refining his delivery. He argues that someone who works consistently will almost always outperform someone with natural talent who lacks discipline. This principle applies not just to business but to virtually all areas of life.
2. Focus on operational excellence and removing friction
Pareja advocates for obsessing over operational excellence and eliminating friction points in business operations. He believes this approach is fundamental to entrepreneurship because customers naturally gravitate toward seamless experiences. Consumers vote with their dollars daily, choosing products and services that make their lives easier.
He cites his own preference for Apple's ecosystem as an example of how frictionless experiences win customer loyalty. The seamless integration across devices makes communication, contact transfers, upgrades, and payments effortless. By removing as much friction as possible from their systems, entrepreneurs can position their offerings as the obvious choice for consumers seeking convenience and efficiency.
3. Real estate success requires entrepreneurial mindset
Leo believes that real estate agents must adopt an entrepreneurial perspective to achieve significant success. Too many agents rely on brand affiliation rather than developing their own business acumen. This misplaced focus leads to underperformance and high failure rates in the industry.
Every real estate agent operates as a 1099 contractor, essentially running a small business. However, many don't recognize this reality. Successful agents understand they must treat gross commission income as top-line revenue, allocating portions for reinvestment in technology, marketing, and staff. Without this entrepreneurial approach, agents struggle to move beyond being self-employed to building sustainable businesses.
4. Find and leverage your natural gifts
Leo emphasizes the importance of identifying and leveraging your innate strengths. He uses the DISC personality profile to illustrate how different people excel in different areas. For instance, he knows he can energetically speak to large audiences for extended periods because it aligns with his natural abilities as a high D (dominant) and I (influential) personality type.
Conversely, he struggles with detailed analytical work, which drains his energy because it doesn't align with his natural wiring. Leo advises entrepreneurs to discover their unique gifts and focus their business efforts in those areas. This self-awareness enables entrepreneurs to operate in their zone of genius while outsourcing or delegating tasks that don't utilize their core strengths.
5. Entrepreneurship requires embracing failure and resilience
Throughout the interview, Leo shares multiple stories of significant business failures and financial losses. He describes losing millions in real estate investments during the 2008 financial crisis and making expensive mistakes in other ventures. These experiences taught him that failure, while painful, isn't fatal.
Leo advocates adopting a philosophical approach to setbacks: "Did you die?" This perspective helps entrepreneurs recognize that most fears and anxieties ultimately prove irrelevant in the long run. The ability to persevere after substantial losses distinguishes successful entrepreneurs. Rather than treating failure as a reason to abandon entrepreneurship, Leo views these experiences as valuable learning opportunities that build resilience and wisdom.
6. The riches are in the niches
Leo emphasizes the importance of specialization rather than trying to compete broadly. He explains that entrepreneurs should focus on becoming masterful in specific areas where they can demonstrate exceptional value. This targeted approach is far more effective than competing on price in crowded markets.
By developing expertise in a focused niche, entrepreneurs can establish themselves as specialists rather than generalists. Leo's own career illustrates this principle. Rather than attempting to serve every potential client, he concentrated on specific market segments where he could provide uniquely valuable solutions. This strategy allowed him to differentiate himself from competitors and command premium rates.
7. Entrepreneurs must adjust to changing market conditions
Leo shares how he navigated major shifts in the real estate industry, including the 2008 financial crisis that wiped out his investments. He emphasizes that successful entrepreneurs don't waste time complaining when market conditions change. Instead, they quickly assess the new reality and decide whether to adapt or exit.
When facing adversity, Leo recommends seeking guidance from experienced mentors who have weathered similar challenges. After losing his properties, he consulted with industry veterans who helped him pivot to foreclosure and REO (real estate owned) opportunities. This adaptability allowed him to rebuild quickly, going from selling seven homes to nearly 100 within a year. Entrepreneurs who can rapidly adjust their approach during market shifts position themselves to thrive while others struggle.
8. Decision making should align with core values and mission
As CEO of eXp Realty, Leo faces complex decisions with significant implications. He explains that his decision-making process is simplified by filtering choices through the company's core mission: building the most agent-centric real estate company on the planet. This clear value proposition serves as his North Star.
When facing difficult choices, particularly during industry lawsuits and regulatory changes, Leo prioritizes what's best for the agents he serves. This clarity helps him make bold decisions even when they initially face resistance. In one instance, a controversial policy change he implemented was initially criticized but later adopted industry-wide. By staying true to the company's mission rather than following conventional wisdom, he positions eXp to lead rather than follow.
9. Technology adoption drives competitive advantage
Leo identified three major technological shifts in his real estate career: high-speed internet, smartphones, and now artificial intelligence. He observed that each transition created winners and losers, not because the technology itself eliminated jobs, but because those who failed to adapt were outcompeted by those who embraced change.
Leo believes AI will be as transformative as previous technological revolutions, if not more so. He's already implementing AI tools that are dramatically reducing transaction costs and increasing efficiency. While he doesn't predict exactly how AI will reshape the industry, he's confident that early adopters will gain significant advantages. Companies and agents who resist technological evolution risk becoming obsolete, just as those who resisted internet adoption did previously.
10. True success is measured by time spent with loved ones
Despite his impressive business achievements, Leo defines success differently now than earlier in his career. After achieving titles and financial goals that once seemed paramount, he found those accomplishments ultimately felt empty. His current measure of success centers on being present for meaningful moments with family and friends.
Leo acknowledges this perspective comes from privilege but also from hard lessons. He and his wife missed important events during years when they traveled constantly for business. Now, family commitments like his daughter's birthday and school events are non-negotiable priorities in his calendar. This evolved definition of success reflects his understanding that business achievements matter less than relationships and experiences that can't be replicated or postponed.