The Reverse Engineering Method That 10X’d My Real Estate Profits

Most real estate investors are flying blind. They set goals like, I want to make $500K this year, but they have no way of actually getting there. And in this video, I'll be breaking down the calculator that I use in order to reverse engineer any profitable— whether you're trying to get to $10K per month, $30K per month, or even $100K per month. By the end of the video, you'll know exactly what you need to do in order to get there. So let's get on with the video. Now, the main problem is going to come down to your inbound marketing channels. If you don't have a marketing channel that is feeding you leads, you're not gonna be able to convert them, right? Now, you know that we help you with Facebook ads. We crush with that. So if you wanna see how we can implement that into your business, send me a DM on Instagram. But basically the problem is that most investors are flying blindly and they have like a blindfold shooting the darts, hoping something's gonna stick. And then you're just like scrambling numbers, not getting the results that you want. So some people will set goals like, hey, I wanna do 10 deals this month. but why 10? You need to build a business that you wanna build, and it all comes down to reverse engineering your numbers, which I'll go into shortly. But I wanna give you this intro that way you kind of get the context and you learn all of the frameworks, right? And in the end, you're kind of working harder, not smarter, because the difference between being a hustler to being a business owner is tracking these numbers. And if you don't track it, you have no idea of what metrics actually matter. And you're just hoping instead of engineering the results that you want to build. So with that being said, what kind of was the breakthrough for me? So it actually took me 2 and a half years to actually learn about my KPIs, right? Now, this is kind of like a reverse engineer— reverse engineering calculator, but for our KPIs when it comes to the marketing channels that we were spending money on for last year. So last year we did over a million and then we made like $650K of revenue in 2024 that was accounted in 2024. But we actually closed over $400K from leads that we had in the pipeline from the previous year that were under construction. A lot of those sold at the beginning of the year, but I want to show you something very important. When you don't track, you don't know what kind of you're working for or your metric is. But if you can see from here, I made a video on this called the 8— my 8 biggest mistakes. But basically you can see that on PPC, I spent $96,000 and that made me $462K. And that gave me a 4.8 ROI. But if you looked at all the other spend that I had, all of these didn't even give me like more than a 1x. So all these numbers combined, I wasted over $130,000 that I could have just put on PPC and made like an additional $500,000 to $600,000 without accounting for that marketing money that I lost. So this is when everything came full circle for me, waiting 2 and a half years to do this and realizing that I made— that could have made like an additional $700,000. That was crazy for me, right? And I kind of— it finally came down to me that I needed to track my numbers and everything changed when I started doing this. Now, the reverse engineering concept, the things that you need to know before we got dive into the calculator is you need to know what's your cost per lead, meaning how much does a lead actually cost you? If you don't know this, like I can't help you, but you need to figure this out. What's your leads to contract ratio? So for us on Facebook, we need 20 to 25 leads to get a contract. And we make around $22,000 per deal, and that's over this calendar year combined. So you got to be able to track that on your own, and you kind of need to see what your destination is and what your goal is. And then the other thing that you are going to need to know is going to be your success rate, meaning if you lock up 10 deals and 3 fall out, that means that your success rate is 70%, because not every deal that you lock up is going to sell. But if you don't track your numbers, you will never build a real business. And with that being said, let's dive into the calculator. Let's say that your goal is to make $100,000 per month. You know, like I told you, you need to know what your average deal size— but let's say that your average deal size is $15,000, whether you do wholesales or renovations or what have you. Let's say you make $15,000 on average per deal. And you know that your success rate is 70%. That's industry standard, meaning that 30% of your deals are gonna fall out due to title issues, extra repairs, the seller changed their mind, what have you. And let's say if you are running Facebook ads with a good agency, you may be at 20 to 25 leads to a contract. And let's say that it costs you $100 per lead. Now with all of our clients, we're below this and our conversions are way better. Uh, but with this calculator, what it does is kind of show you exactly how much you need to spend in order to achieve this goal. Meaning in order to close $100,000 per month, that means that 6.6 deals, call it 7, at $15,000 need to close in order for you to achieve this. Now, since you don't close everything that you're going to lock up due to the success rate, meaning that 30% are gonna fall out, that would mean that you would need to lock up at least 9 contracts in order to achieve this $100,000 goal. And this kind of breaks down the fallout rate. So 30% of 100, it'll be 2.8. So meaning 3 deals will fall out and you need to account for that in order to actually get that money into your account. Uh, so you would need 238 leads in order to get, you know, uh, the 9 contracts. And on an estimate, depending on these numbers, in order to hit $100,000 per month due to these numbers, you would need to invest around $23,000, $24,000 per month in marketing in order to achieve this. And that would mean that your estimated cost per lead per deal would be around $3,500. So what we do is our cost per lead is way cheaper. So I just want you to see how if we're able to drop this to around $60, which is what our clients kind of do, if your goal was still to do $100K, once you plug that in, you see that what you need to spend is $10,000 less and your cost per contract, your cost per deal decreased from like $3 grand to $2,000. So this is why I say that these numbers are very important because if you don't track it, you're just throwing spaghetti at the wall, hoping something sticks. Now I wanna show you like for my own business, right? So right now we're doing around $150,000 per month and our average deal size is $22,000. And our success rate is around 70%. It's to a deal, or 25%, but our cost per lead right now is around $35. So if you see, it only cost me $1,200 to get a deal, and I only spend around $7,000 to $8,000 on Facebook to make $150,000. And that's because our sales process is really good and because our marketing channels are very, very good. So like I said, we do Facebook and we crush with that, but this kind of gives you an idea of what you need to do in order to hit those goals. And it kind of all comes down to your conversions. Now, when it comes to the deal size and leads to contract, it's going to come down to your sales process. So I made a video, uh, talking about that. So I want you to watch that video next, but I'm going to give you some more context on some things to watch out for and what you can do starting today. Now, what dictates your conversions? There's 5 profit levers, right? You're gonna have your— if you want to increase your average deal size, you're going to need better deals and more strategies, meaning you got to be better at sales and your team has to be better at following a sales process. And you got to implement innovations, listings, whatever, in order to increase that. Um, and if you want to increase your success rate, you need a better sales process. So These two things, it comes down to sales. Like I said, I made a video, I want you to watch it next, um, where we go over our sales process. Now, if you want to reduce the leads per deal, you need two things: a better marketing channel and a better sales process, honestly, because marketing is 50% and sales is 50%. And then if you want to lower your cost per lead, that's going to come down to marketing. And then if you want to increase your deal volume, it's you need to start scaling the marketing, you need to invest more in order to make more money. And like I said, we crush with Facebook, we can help you with that. But once you know your baseline, you can optimize each lever dramatically in order to increase profits without having to work harder. And what is the power of actually knowing is that you start building a business that you actually want to have and it serves you and you'll know exactly what your marketing budget is that you need to have every month. You need a clear team hiring timeline. So if it's just you, you're probably gonna need more people in order to scale, 'cause your time is gonna be limited, but then it'll help you have predictability with your growth path and you'll have confidence in your decisions. And instead of hustling, now you're a business owner, 'cause you know what your numbers are like and you know how to hold your team accountable and you stop guessing and hoping. And once you know your numbers, you can make better decisions and you don't have to be running around like a chicken with its head cut off and you stop wondering and saying, you know, will this work? You know exactly it'll work because you have the numbers and the data that make this possible. So what does this do to my own business? So in June we made $226,000 with around 70% profit margins. And then in July, as of the 22nd, we've closed around $108,000 and we have around $60K pending, but because I built a business that I wanna build and we have good marketing channels and we have a good sales process. And what are some common mistakes that you need to avoid? Well, there's 3 of them. If you wanna implement this into your business, watch out for setting up unrealistic inputs. So like don't lie to yourself about conversion rates. Actually take the time and track them. If you're not tracking, track them. If you ignore market conditions, meaning seasonality, like in December, it's usually slower. You need to be able to track for all these things and things that could affect you. Or like I said, if you don't track the actual results, the calculator is only as good as your data. So if you're lying to yourself, I mean, this is not gonna help you. And then also like if you don't follow like a good sales process, where you're just like guessing, you don't have a framework for your team or how you do your offer presenting, that's gonna hurt you a lot. So what should your action plan be? I know it's painful, but if you don't know your KPIs, you need to do that. You need to calculate your numbers and be super honest. It's gonna suck, but you just gotta do it. And then set your profit goal, hit your goal that you want, set your goal that you wanna hit and play with the numbers and see how you can get there. Run the calculation and then see what those numbers come up with. And then you can identify your biggest lever and what you need to optimize first. So just take action, do the calculator. If you want the calculator, send me a DM on Instagram, say the word calculator, and I'll send it over to you. And if you need help, this is my Instagram. Send me a message on there and I'll send you the calculator. Or if you want any of this built into your business, send me a message to see if you qualify. But other than that, I want you to watch the sales video next. And with that being said, I'll catch you on the next one.