– Setting up your Real Estate Investing business plan –
Subjects spoken about in todays podcast
- Talking about how you did in 2017 and knowing where your’e going.
- Steps to building your business model.
- Key performance indicators – The life blood of understanding your business.
- Setting goals and working backwards
- Different sources of lead generation.
Joe – Explains Step #1 – Key performance indicators (KPI’s)
KPI’s is knowing & recording your response rates on all the sources of leads. for example
how many mailers do I need to send –> to calls I get –> to appointments I set —> to contracts –> to Deals
Julie – Speaks on; another KPI is knowing how many times you need to follow up with a lead to get to an appointment. This is a subset KPI of calls –> appointments.
Joe – On The benefits of having your KPI’s nailed down will let you know what marketing tactics, how much, and what you need to do to reach your goals.
Julie – knowing your general KPI’s, but understanding the subsets of KPI’s you need to know to get to your appointment.
Joe – On doing this from the beginning, you can go back and calculate all the numbers. But it’s much much easier to do right from the beginning.
Julie – Going back and doing it manually is a good exercise to start becoming aware of all the subsets.
Podio is a great tool that you can use to track your KPI’s automatically.
Joe – Knowing KPI’s, and reviewing them often, will tell you if your using your money in the best way possible. It’s very easy to start putting money in to a marketing system that isn’t giving you the best return on investment.
This can apply to Any place in your life! Ask yourself how can you record and measure to get to your goals?
2nd step – Knowing your goals, and using your KPI’s to know what you need to do yearly,monthly,weekly, and daily in your business.
Julie – Asking Joe about the school of thought when it comes to goal setting? Realistic VS Ambitious
Joe – I dont know what the answer to that is! It’s different for each person.
It really comes down to how you think you’ll respond to hitting, or not hitting your goals.
Julie– Speaks on her approach to Setting both goals, Realistic and aggressive goals.
Tip – Work backwards with your numbers.
ask your self,
- How much do I want to make?
- how much will I make off each deal?
- How much can I make on each deal?
- how can you make more per deal, to reduce the amount of deals you need to do to reach your goal?
If you want to make X amount; you’ll have to do X amount of appointments; you’ll have to get x amount of calls, and send out x amount mailers; start coming up with a daily habit to reaching your goals, so you know what you need to do daily, weekly, monthly, and ultimately yearly.
Use this to become accountable to yourself on a daily basis.
Julie – Speaks on teams. Understanding that a team doesn’t need to be full time employees. You can find team members who are working on a per deal basis, brokers, etc.
It’s a good problem to not have enough people to handle appointments!
Getting your phone to ring is the key to making a lot of money in Real Estate….Focus on Lead generation!
Measuring what you’ve done, and how much you need to do is how you manage a business plan.
Joe– If your someone who hasn’t done a deal, it’s a good thing to find the averages in the area so you can at least get a ballpark figure to measure off of in the beginning.
Julie – On honing in the best mail lead list.
Since all of our systems are in place, we are tweaking all of our systems to be honed in and as precise as possible.
You need to know what your lead sources are going to be? Facebook, Networking, direct mail, Radio, billboards, etc. Knowing what your going to be doing is key. Then understand how your going to follow up.
Having your confidence about you when speaking with sellers is whats going to attract people who want to do business with you.
Joe– Getting in front of more sellers will help you become more confident.
Knowing these things will be things you put in your business plan. Understanding what your ideal seller that your looking for will also help you understand your business further.
Julie – For the above average real estate agent, a starting point for is 1 deal per 40 conversations. 1/40 is pretty awesome.
Most investors are going to have a much higher number than that since they are searching from a smaller pool of buyers. But understanding the number is the key.
Joe – Speaks on beginning to Schedule out the amount of hours your going to put in to this, time slot it, and figure out exactly what there going to do and how.
Get more ninja with it, find the golden hours. The best time to make phone calls. Could be morning, could evening.
What is the hour of power? – The best time for Lead generating!
Julie – If you have nothing going on, were talking a day of power. Do as much lead generating as you can in the beginning, until you get to where you want to get.
Joe – Set that up in your biz plan so you know what exactly you need to do!
Julie – On knowing what your expectations are on each source of leads, and what they provide.
Is the source producing enough to justify using it?
i.e. – If you make 15k off of a lead source but spend 12K using it, is it still a valuable use of your time?
Joe – With your business plan it’s a good idea to have an underlining idea of where your taking your business. Is your goal to be always running your business 24/7? Or are you trying to be on vacation, and run a business from the beach? Are you wanting to work in the city? Having a vision of where you’re trying to go will help you hone down your business plan.
Julie – On leveraging your time. Should you be doing $5/hr tasks when you could be doing $1000/hr tasks? Watch how you use your time, begin to leverage it using other people who are looking to make money. I.e. People running to appointments for you, picking up signs, cleaning your car, etc.
- Building accurate KPI’s is something that needs to be calculated over a 9-12 month period. Your not going to get accurate numbers over a 3 month period
Joe – It takes time, and it takes repetition. So coming up with a plan that is sustainable is extremely important. If your plan is not sustainable, you will burn out.
“There is no quick buck. It does not exist. Over the long haul this isn’t easy, but setting up these systems will help” – Julie.
Knowing your “Why”. You should know why for doing this. For Julie she loves this! But taking her kids on 3 or 4 vaca’s a year is a part of why she is in Real Estate.
Everyone has something different that they want to do, figure out what the why is for you, and work backwards from there.
Julie – Speaks on Joe and her being a match made in heaven because there skills are in the exact opposite of each other. Break down what the roles are that you need in your business.
- What roles are you good at?
- What roles do you need to fill?
- What do you enjoy doing?
In the beginning you may need to do a lot of your business yourself. But you don’t need to go full out and hire a full time employee, you just need to find people to help you on a per deal basis, or part time.
Mindset is something that you must have nailed down. Working on your mindset, and maintaining a strong mindset needs to be on the forefront of your mind.
We hope that this adds value to your business planning, and business ventures in Real Estate!
Thank you for tuning in!
Go out and crush it!