Skip to content

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions

Posted almost 3 years ago

Increase Revenue By 210% With One Simple Change

Contain 800x800

Are you actively marketing for motivated seller leads?

You're probably leave $100k+ in revenue on the table by doing this one thing.

Trying to force all leads into deep discount deals.

That's like trying to fit a square peg in a round hole.

Of 100 homeowners interested in selling, how many accept offers 25% or more below market value?

Less than 5%, right?

Let's just say it is 5% and your average wholesale fee is $10,000.

5 deals x $10,000 = $50,000 in wholesale fees

But can you close 100% of them? Probably not.

Now, what about the other 95 homeowners? Are they dead leads?

No - they're someone else's opportunity!

Consider a different approach. Have a conversation with homeowners to see how you can help them.

Those willing to sell their homes off-market at a discount for cash do not want to list their home.

Those are deals you can buy or wholesale.

The other 95%? They'll list for retail offers. Don't ignore them!

Here's the math:

95 listings x $250,000 average value = $23.75M in sales volume.

With a 3% commission, that's $712,500 gross commission.

Can you close 100% of the 95? Unlikely.

But securing 30% of them as listing agreements isn't far-fetched, is it? That's about 28 listings.

At $250,000 each, it totals to $7M in sales volume.

With a 3% commission, it amounts to $210,000 gross commission.

But wait...that's a LOT of extra work though, right? Besides, you're an investor not a traditional Realtor.

Ok, fine!

Hire a listing agent on your team to handle your listing referrals for a 50% referral fee.

$210,000 commission x 50% referral = $105,000 gross referral fees.

Now you have $50,000 in wholesale fees plus $105,000 in gross referral fees...

A 210% increase in revenue without much extra work all with one simple change:

Helping homeowners instead of forcing them into one solution.

PS: This Buy It or List It approach has helped investor-agents on our Legacy team close more deals in a shifting market.

Originally Posted on InvestedX.



Comments