The KPIs you should be monitoring for a wholesaling real estate business 👆

Name: The KPIs you should be monitoring for a wholesaling real estate business 👆
Uploaded: 2024-05-02T00:30:29+00:00
Duration: 1 s
Channel: Tyson Smith
Description: In this brief dialogue, the speakers discuss the most important key performance indicators (KPIs) for a real‑estate wholesaling operation. They…

2 May 2024 · 0 min

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In this brief dialogue, the speakers discuss the most important key performance indicators (KPIs) for a real‑estate wholesaling operation. They differentiate between leading indicators—metrics that the wholesaler can directly control, such as offers made and leads generated—and lagging indicators—outcomes like closed contracts that depend on external factors. The speaker advises focusing exclusively on leading indicators that are 100% within the wholesaler’s control. The core actionable KPI is lead generation: a lead is defined as a person who expresses interest in receiving a cash offer. The target is to secure at least two such interested leads every day. Based on experience, roughly fifty interested leads are needed to convert one contract. By tracking daily lead counts and maintaining the 2‑leads‑per‑day benchmark, wholesalers can reliably drive the volume of offers and ultimately increase closed contracts.

Key performance indicator.
Everybody should be monitoring them for a real estate wholesaling business. Which KPIs do you really consider most crucial for monitoring your success?
So when it comes to KPIs, there are leading indicators and there are lagging indicators. Leading indicators are the things that you can stack that lead to the lagging indicators. A leading indicator is offers made. The more offers you make, the more chances you have of getting a contract. But the contract is the lagging indicator of making offers. You do not want to base your KPIs based off of lagging indicators because those contain elements that are outside of your control. I like to focus on KPIs that are 100% in my control. Only I am the differentiating factor. It's whether or not I do the work. What I want you to focus on is leads. A lead is somebody who says, yes, I'd be interested in a cash offer. Your goal should be to get 2 people every single day who say, yes, I'd be interested in a cash offer. It should take you about 50 of those people who who say, "Yes, I'd be interested in selling my house," to find somebody who is going to be your first contract.