How Much Money Do You Need To Starting Wholesaling Real Estate (Leads, Marketing, & Close Rate)

Alrighty, guys, I'm going to be breaking down simply today how to reach your goals in real estate based on actual numbers and data. And we're going to go through my business, we're going to set goals for my business, then we're going to break down exactly how I determine how much I need to spend per month in order to be able to achieve the goals that I'm looking for. Now, you guys do have to have some basic data and basic knowledge of your business before this will work. If not, I can also give you an example by the industry standard too. If you want like a custom strategy and a custom call doing this too, I will do this for free. I'll give you a completely custom strategy call for free. All you have to do is click the link in the bio. But let's go ahead and get into this. I'm going to show you exactly how I determine how much I need to spend in order to reach my goals. So our yearly revenue goal right now is $3 million. So we know we want to do 3 million in revenue, which our average deal size. So out of all the deals we've done, our average deal size is roughly $28,800. You would need to know that too. So the way you can, the way you can determine your average deal size is simply by doing how much revenue you've done divided by how many deals you've done. So for us, our average deal size is $28,000. Well, $28,800. So how many deals? That's how we, we need to know how many deals we have to do in order to be able to achieve the 3 million revenue goal. So that would be 3 million. So equals 3 million divided by average deal size. And that will equal. So we need to do 104 deals. So that's basically about two deals a week. It's literally two deals a week on the dot. And so how many leads is that? So if you don't know your business again, it's going to be very, very hard to figure out. But you need to know how many leads you got to have a deal. So if you've been doing this for six months, then check how many leads you got divided by how many months right. You've been doing it. So say. Or how many leads you've got, right, Divided by how many deals you've done divided by how many deals. So for us, takes about one out of every 13 inbound leads. So this is just for one marketing strategy to keep it simple. So we have to do one out of, we have one out of 13 will lead us to a deal. So we need to do. All right, we need to do 13 here, 13 times how many deals we are. Our goal is to do 104 deals. So we're gonna, if we close one out of every 13 leads, we're going to need 1,354 leads in order to be able to achieve our 3 million dollar revenue goal. Okay, so let's also break this down by per month. So we're going to look at how many deals we need to do per month. So just divided by 12 and then, so that's eight deals a month. And then how many leads do we need to get per month? Which is just how many leads you need to get to the year for the year divided by 12. Okay, so now you need to know your cost per lead. Now with a standard PPL platform, something like Prexium, which we can link for you and link for you below, or actually if you book on our strategy call, we will match you with the exact lead connect or the lead connector that you'll need to use. Again, that strategy calls 100% free. I'm not asking for any money for it. Simply just book a strategy call and you'll be able to tell there. But our cost per lead and yours too, especially if you do something like ppl. So ppl is pay per lead and with something like Prexium, it is a fixed cost. So there's stuff like Lead Zolo and there is things like ISP Delete and they kind of have like different budgets. Some of them even do a bidding structure. But for Prexium, you pay a set amount and it sends you a certain amount of leads every single month. And Praxim is one of our favorites. Of course we'll connect you with them on that blueprint call if you would like. So the cost per lead with them is roughly 150 to $175. Depending on which package you go with. It could be down to a hundred dollars if you want like a lower quality lead. But if you want super, super high quality leads, I would probably say about $175 cost per lead, super qualified. And all their leads that are not in your, that are not ready to sell, that aren't qualified, or they're not in your, in your zip code or in the county that you chose or state, then that lead gets refunded. So it's if you do like a pay per lead model, a really good company will refund you for everything that's not actually there, actually. Good. So it gives you a much higher chance of actually closing the lead. Now with this company, we're actually doing about one out of every eight to 11. One out of every eight to 11 deals are getting or one out of every eight to 11 leads will close one deal. However, we're being a little bit more conservative on this estimate and saying about 13, but our cost for these $175. And we know we need 13,000 or we need 1,354 leads for the year and 112.84 for the every single month. So we'd probably round that up. So we would need to spend. We would need 113 leads and then we've multiplied that by our cost per lead here. So we know we would need to spend about $20,000 a month on marketing to get us to a $3 million revenue goal. And if we did do that, we would be able to tell our roas here. So our goal roas for the year. Equals this times 12. So our yearly marketing spin and we're going to do our goal revenue divided by our total marketing spend. And so that would give us a 13x ROAS here, about 12.64x ROAS, which would be really good. And 1 in 13 leads closed is really, really good. So that's. If you do 1 out of 13 leads closed. And you have an average deal size of 28,800. I actually attest most of our success to our average deal size. It's almost double the industry standard. And I believe that is just because we tend to really negotiate. We don't really try to lock up deals that we don't think we'll make a really good amount of money on. So for us specifically, we try and push our deal size larger. And I think that's what a lot of people do just for the efficiency sake of it. But let's go down to like 1 in 10, which is a little bit closer to like the RP, our PPL. Our PPL, which is. I'm gonna actually paste this as. Here we go. So we're actually going to go down to like 1 in 10 because that's a little bit more realistic for us with the. Especially with ppl paying $175 per. So we would know that we can only. We can actually multiply this by 10. And so we'd only need 86 leads per month, which would give us a little bit of leeway, but we're going to say 87 here. So for us specifically, it'd be 3 million divided by our yearly marketing spend, which is monthly times 12. So we'd be looking at a little bit better of like a 16.42x ROAS. So the more if you keep this deal size and you keep decreasing the amount of leads it takes to get to a contract, you can spend more to still reach your goal, so. Or you can spend less and still reach your goal. So the real issue here that I see a lot of people experiencing is the sales process. The reason is they just really aren't that good of negotiators yet. And that's completely fine. However, it's really important that you guys focus on your sales process and negotiate. So taking a look at that 28,800, that is literally almost double the industry standard. A lot of people are like 15,000 in their average wholesale fee. And then our goal roas is above 10. Most people are shooting for like five. We're trying to do more than that. Why? Because we really train sales hard. Not only do we train sales hard, we also work really efficiently in the sales process and negotiating. So our goal is to be super efficient and negotiate as much as possible. Unlike a lot of other companies, it took a lot of training, it took a lot of effort for our guys to get like this. And you got, you guys may not be that good out of the gate, but a lot of effort and a lot of try will help you. If you guys need help identifying what your bottleneck is and like, what you're trying to actually achieve, feel free to go ahead and book that 90 day custom blueprint strategy call below. It's free. It's going to be where myself or one of my coaches hops on a call with you. We go over exactly what you need in order to be successful and then we'll give you the actual game plan and outline the steps you should take in order to get to your goal. So if your goal is like 30k a month, you want to do $300,000, we would engineer you something like this in order to get there. Or if your goal is like 20 million, we can also engineer you a strategy to get there as well. So hope you have a good rest of your day. Go ahead and book that strategy. Call below and subscribe. And like, while you're at it, thank you.