If you want to succeed in Real Estate, you must pay attention to your bottom line. Top agent Wendy Papasan from Austin, Texas teaches how she became a profitable agent.
You need to know your numbers or you will go broke.
Top 5 tips for Profitability in Real Estate:
1. Know your numbers! Get a profit and loss statement every month and study it. Hire a bookkeeper if you don’t know how to read it. Hire a financial coach. Track your net worth, by subtracting your debt from your net worth.
2. Operate off of 50% of what you make. Agents go broke by not paying their taxes. Put 50% of every commission check away. The surplus of funds will give you money to put back into your business.
3. Managing expenses is more important than generating revenue. Make sure you are getting a good return on anything you are investing in. If you pay $200 a month for lead generation, make sure you are making at least $600 off of it. Get at least 3x off the investment. Get rid of anything that ends in 99-cents. Not worth it. Cut lead generation sources that are not converting. Go line by line of your credit card statement to learn how you are spending your money.
4. Raise your sales price. If you sell homes mostly in the $300k range, move up to the $400K range. Identify neighborhoods that will raise your sales price, and work them. Even if you raise your sales prices by 50k, it will dramatically increase your bottom line.
5. The riches are in the niches. Get a specialty and work very hard at it. Don’t go for every lead you can get, or you will exhaust yourself. If you spend the next three years focusing on just FSBOs, you will become fantastic at them. Open houses, talking to your sphere, whatever you choose, get really good at it, and expand from there.