| possibly be.
In planning for monthly revenue, try to put your money goals in cash income, not gross revenue. I know gross revenue is what you're used to thinking in, but cash is obviously more important. It's what you take to the bank, and it's what pays bills.
First, examine your current numbers. More than 80 percent of all real estate entrepreneurs know how many houses they are buying each month, but they don't know where those houses came from and how many leads they had to process to develop them into the single deal. And, this is a deadly sin.
You simply must know how you are currently doing.
You should know:
1) the total leads that call each month (each week is more manageable),
2) where those leads come from,
3) how many "qualified" seller prospects (i.e. those that you are willing to invest follow-up in if
they don't sell now; they have motivation, you are interested in the house.) you get each
month,
4) the ratio of total to qualified,
5) the number of deals you close,
6) the ratio of closed deals to qualified leads for each lead source
7) how much you make from each seller,
8) and how much it cost you to acquire a new seller.
With this information you can look at your current resources, look ahead, and then plan out what you want to have happen. The number of deals you want to do, the amount of money you want to make.
For example, let's say you are bringing in around $10,000 a month and your average deal gives you $5,000. Yes, I know that's low, but for the sake of example. That's two deals a month. These are cash proceeds and after expenses you net 50 percent of your gross or $5,000 a month. And let's say that you want to double your net income next month.
You will have to get twice as many deals to double your |
