Tracking your numbers is key to making money in real estate investing. This guide shows you how to calculate your most important metrics so you can see what's working and what isn't.
? Key Terms
- Prospects: Properties you get from 8020REI
- Leads: Property owners who show interest in selling
- Contracts: When an owner agrees to sell to you at a set price
- Deals: When you find a buyer for your contracted property
Return on Investment (ROI)
ROI shows how much money you made compared to what you spent.
Formula: ROI = ((Revenue - Cost) / Cost) x 100
? Simple Example
You spend $2,000 on marketing and sell a property for $12,000.
ROI = ((12,000 - 2,000) / 2,000) x 100 = 500%
That's a 5x return on your money!
Lead-to-Contract Ratio
This shows how good you are at turning interested sellers into signed contracts.
Formula: (Number of Contracts / Number of Leads) x 100
Example: 10 leads turn into 2 contracts = 20% ratio
Contract-to-Deal Ratio
This shows how good you are at closing your contracts.
Formula: (Number of Deals / Number of Contracts) x 100
Example: 5 contracts turn into 2 deals = 40% ratio
? Why These Numbers Matter
Tracking these metrics helps you:
- Find where you're losing deals
- Improve your marketing
- Spend your money better
- Predict future income
- Grow your business smartly
How Often to Check Your Numbers
- Monthly: Adjust your current campaigns
- Quarterly: Look for bigger trends and growth opportunities
Need help tracking your metrics? Your Customer Success Manager can help you set up a system that works for your business.
