Wholesaling Business Math: Scaling to $100K Months Fast

Wholesaling is all about sales and marketing. So if you're trying to hit your first 6-figure month, in this video I'm going to break down exactly how many leads, how many appointments, how many offers, and most importantly, how much ad spend you need in order to achieve your goal. So I'm going to share my screen, show you the real numbers behind the math so that you can achieve this goal consistently. No motivation, just plain math. So if you want to hit your first $100,000 a month, you need to be able to reverse engineer it where you know exactly how much money you're making per deal, what's your success rate, how many leads to a you're getting and your average cost per lead. If you are not tracking your numbers or your KPIs, I mean, you need to grow a pair and stop just hustling, trying to figure this out on your own with just a bunch of brutal force. I mean, you need to run this like an actual business. So you need to have your numbers. If you have not done so, look at the last 6 months, look how much money you have spent, how many leads you've gotten, how many appointments you've gotten on, how many offers, how many contracts, and how many closed deals you've gotten, and what the average profit per deal. And it's not until you figure that out that you're going to be able to finally grow your business. Assuming that you already have your numbers, all you need to do is put the goal here. So if you want to hit $100,000 a month and your average deal size is $20,000, like it is for us, we have a success rate of 80%, meaning if we contract 10, 2 are going to fall out for whatever reason, title issues, repairs, seller changed their mind, whatever. Right? So I know that our leads per deal for a contract is around $25 using Facebook ads. And this is going to change regarding whatever marketing channel that you're doing. I love, I like Facebook. Book because we crush on it, but you got to be able to figure out your own numbers. And for us, our average cost per lead right now is about $35. So if I want to hit $100,000, that means that I need to spend around $6,000 per month, and that's going to give me about 156 leads. And I just need to contract 6 or 7 at $20,000. That's going to get me $100,000, right? So we're assuming that one is going to fall through. And our ROI can be anywhere from 12 to 18, right? So this is what happens when you become good at marketing, which I'm going to go over the main things that you need to take a look into on a weekly basis, right? So if you break up the math on 156, you're looking at around 38 leads a week, right? And then I'm going to tell you the golden ratio that you need to hit in order to make sure that your goals are in tune right now. Let's assume that you get 35 new leads on a weekly basis in order to hit your $100,000 a month. Around 65% of those gross leads are going to be net leads, meaning out of those, they are ready to sell and they are the seller, right? So from those, we want to set an appointment with at least 70% of the people. So that'll put us at around, you know, 15 appointments that we need to set. After the net leads, right? So on a weekly basis, that's about probably 2 appointments a day. And then from those appointments, you wanna complete all of them and give out an offer to at least 80%. So we wanna send out, we wanna give an offer to 12 after the 15, right? So that's 80% of 15, it's 12. And then depending on how good your sales team is, you wanna be closing at a 20 to 30% closing ratio. Meaning out of 4 to 5 offers, you're getting 1 contract, right? So this is basically how the math plays out. So you got to be able to have these numbers yourself in order to hit your goal. And if you're not hitting this goal, something is off with your sales process, right? So I'm going to tell you what the main important things is going to be. Now you may be asking yourself, okay, hey Fidel, I don't have the money to spend in marketing or a team. There's credit cards available. I mean, there's so many routes that you can take to find the money because once you have the data and you know how to reverse engineer all of this, it's just about implementing and executing. And you don't need to put up a ton of excuses or you're guessing because you're following a system. And by the way, this is what we help people who are already doing deals that are closing at least $230K per month and they want to scale to $100,000 per month. This is exactly how we help you with. So if you want to fast track it and actually learn exactly how to hire, how to track all of this, how to get better at marketing and the sales sales process, book a call to see if we can help you. But with that being said, the most important things that you can control when it comes to hitting your first $100,000 a month is going to be access to capital or maybe using your own capital, right? You can apply to credit cards. There's a ton of things that there are out there, but the main focus is going to come down to sales and marketing. Now, the marketing, the more efficient that it is, the greater that your ROI is going to be because most people are getting like a 3 to 4x return on ad spend because they're usually delegating the marketing to something else or they're doing some of the cold channels like outbound where people are annoyed that you are calling them. And the reason why I like Facebook is because it's inbound and then they're like, yeah, I do want to sell. So they reach out to us and depending on how good your ad is, the more engaged that your sellers are going to be. And Facebook is the only platform that you can directly target pain points. So who do we sell or who do we work with? Sellers who are in foreclosure, divorce, repairs, vacant, they're a tenant landlord, code violations, you know, stuff like that. So if our ads are good, we can get cheap leads that are high quality. And the better that our marketing is, the greater that our ROI is going to be and the less moving parts that we need to have in order to achieve that. So the most important bucket is going to be marketing. Now, when it comes to sales, you need to understand the seller psychology, how to set up the proper expectations, how to qualify the lead. That way your closers are talking to the people who are most likely to sell and they are motivated and ready to sell. So if you're not hitting your one contract for every 4 to 5 offers, something is off in your process and you need to be able to fix it. Now, when it comes to your sales team, usually in order for you to hit your first $100,000 a month, you probably gonna need 1 to 2 closers. If you have a really good closer, he can hit $100,000 per month. but it can be one closer and you or just two closers, right? And then your closer is going to cost around— one closer, it's probably gonna be around $2K per month. Okay. And they usually paid anywhere from 7 to 12% commission of the net profit that you make. And then you're probably gonna need a lead manager. And then these guys, you can pay probably like $1K all the way to like 1.5 to 2K per month if they are really good. And usually the commission is probably going to be anywhere from 3% to 5%. For me, I pay them 5% because they've been with me for like 2 years and they are really good. And then when it comes to dispo, maybe you can do the acquisition and dispo with another closer. But if you don't have a dispo guy, you can basically save on the DISPO fee that you would have to pay your agent. Now, if you do novations, you can just pay the commission, but if you're reverse engineering your numbers in order for you to make your $25K on a novation, I mean, it's all baked into the price, so you don't need to do that. But usually a DISPO agent's probably going to cost like 2% and either 3% to 6% per deal, right? So with all of this, you're probably looking at around $5,000 to $6,000 in overhead for like salaries, $6K in salary, and then you're probably looking at $5K to $15K in ad spend. And then probably around, if you have an office, software, probably paying another $2K in extra overhead. So all in all, you are looking at around, you know, $6,000 plus you're looking at around $15,000 to $20,000 or less in overhead. So call it $20K total. But if you are making $100K and from that $100K you are paying around, call it 16% in commissions. So all you need to do is $100K minus $60,000, minus $16,000, minus $16,000. That's going to puts you right around $84,000 minus your total overhead, which was like $20,000. So you can basically net around, you know, probably netting like 55%, 60%, which is really good. So you'd be looking at netting $64K net to you. And that is pretty good. If you spend all that money and you get it back every month, you can just be just keep pouring more money into it or delegate a little bit more. But would you invest this money in order to net, actually net $64K? Of course you would. And if you're scared of investing money, I mean, this business is not for you. You probably need to go work at McDonald's or something because the reason why we make the money is because we deal with risk, we invest in ourselves, and we want to get better, right? So if we wanted something to be easy, They would choose something else. But after you basically have your team, you want to really train your team on the seller psychology, like I was saying, because what you don't want is to sound like everybody else where they, they're like, oh, I'm going to lowball you or whatever. So we want to treat this like a real business. And you can do this if you do these things right. So when it comes to the sales, this is more the expenses that you're going to have. And when it comes to the marketing, you can have a really good channel like us with Facebook and have a ton of videos on that here on the channel. So if you want to watch a little bit more on that, you can do it. So you have two options. You can try and figure this out on your own, or you can work with someone who has done this over and over again. So for us, we spend less than $10K per month and we close over $100,000 every single month. Why? Because I've invested over $200,000 in my own coaching, getting trained by the best people, and also have Wasted around $300,000 testing other marketing channels, and that's why I like what we do, right? So if you want to fast-track your way to $100,000 a month, book a call down below. If you're already doing deals, let's do it. If you're totally new, I mean, I can't help you. Just watch my free videos and invest in yourself, whoever you want to work with, but I recommend you investing the time. So I hope that was helpful, and I'll catch you on the next video. Thank you, guys.