What KPIs are people using for their Real Estate Businesses? We are looking to dive into this deeply and would appreciate any help that can be offered.
Are you talking about market indicators or or metrics for your own investment properties?
I just look at the cash flow returns. I figure over the long run the equity will take care of itself. Frankly I don't obsess over the numbers. I simply get the best deals I can. If it is not a great deal by market standards I am not interested.
I use conversion rates for each type of lead (pre foreclosure, probate, etc) from mailings
response rate per type of mailing piece
response rate from bandit signs
conversion rate from lead to offer
conversion rate from offer to deal
There are a number of others you can do: ROI per marketing method, sales cycle, and a bunch of others. The key is to focus on tracking leading indicators (because those can help you pivot and adjust) not the lagging indicators as much (because that is what happened already and those cant be changed).
Feel free to reach out if you are looking for any other ideas
@David Richter I presume you intend to create a dashboard of sorts to measure the essential performance of your business?
Chief among the resources is cash. I have many accounts and need to monitor cash position. Cash in, coming in, going out, etc.
Next Is cash flow. I want to monitor which assets are performing and which way the cash is flowing. All assets cash flow; not all throw off positive cash flow.
These are consolidated into a single excel spreadsheet, maintained and shared with bookkeeper in Dropbox.
I monitor my marketing funnels using SmartSheet. I track inquiries, leads, forms, sales channels, sources and campaigns on thus cloud based system. I also monitor stage of progress this way. My system for monitoring and measuring ROI of channels is unsatisfactory and improvements are in the works.
Earlier this year I discontinued use of InfusionSoft. It has a place for some businesses, but over the top for mine and a disproportionate ROI and ROF (return on frustration) that resulted in my writing off my $25,000 investment in favor of simple.
Then we could talk about analytics, but that makes my head hurt. I do deals, not spend my time looking at spreadsheets and numbers.
Business rule of business: never run out of cash!
Hi David! I’m looking for a KPI for my real estate career too. I need it mostly to keep track of the cashflow, I assume you’re looking for one to do the same too. However, I haven’t had any luck in the past. I’m currently looking for a new KPI software now. I saw http://www.mybusinessmanager.com/kpi-dashboard.html a few days ago and I think I would give it a try. It might help us in our respective businesses.
I was digging through BP to see what other people are using for KPIs and metrics tracking. I've been a wholesaler for a few years now and I realize that salesy people should focus on selling, and they have a tough time with backend metrics. IE - is my marketing working? If I just throw another $5k at PPC will that get me more deals? We track # responses, # appointments, # contracts, # viable contracts (sometimes contracts die - title issues, seller issues, us issues. We try to minimize the last one.), and then cost spent on marketing and profits received. The number one thing we're trying to increase is ROI, by channel. A healthy marketing channel (to me) should return $3 for every dollar spent. Assume your overhead may eat up another $1, then you're actually left with net profit. If your marketing is only returning you $1 - then it's a bad channel! Time to revamp! I do some marketing consulting for other investors and this is the #1 thing we focus on. Go make money! :)
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