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.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.