How many times have you heard investors brag about how many deals they’re doing every month? I’ll be honest… I used to hear how many deals other people were doing on a monthly basis and I would get a little jealous. I would think, “How is it that he’s doing 8 deals this month and I’m only closing 4?”
I remember not that long ago when I would have KILLED to have just one deal close in a month! How is it that I now can close 4 in a single month and still try to do more? Is it really even necessary?
Here’s the truth… Our average profit for each short sale deal is $21,450. We buy and sell these houses without using any of our own money or any of our own credit. How many of those do you really need per month to earn a really good living?? How many of these deals do you need per year to replace your current income at work?
I’ve seen a lot of “successful” real estate investors spend so much time and efforts trying to do as many deals as they possibly can in any given month and then wonder why their success has turned into them working harder than they did when they had their old job. How do I know this? I have been one of “those guys.”
I’ve personally bought and sold over 200 deals since 2003. Do you know what I learned in that time and from all of those deals? I learned that it doesn’t take anywhere near what I once thought it would take to be successful.
At $21,450 average profit per deal, if you have your business set up the right way, you don’t have to work all hours of the day and night to earn a very substantial living. Think about it… how many deals per month do you need to do at $21,450 in profit to bring home a REALLY good paycheck?
The goal should be to work smarter, not harder.
Here’s something else to think about? How much money would you truly need to make per month if you were debt free? That ought to keep you thinking for a little while.
1 response so far ↓
1 David J. Berry // Jun 6, 2008 at 1:00 pm
Debt free, Debt free, Debt free!!!!! I have been debt free (except for my house) for several years now. There is a certain level of creativity and freedom that comes with not having to worry where the next paycheck comes from. Your more relaxed, have more fun, and can be trully giving of yourself. I just helped a gentleman close his house to avoid a foreclosure via short sale. I was trying to work some profit in the deal but I had made several big mistakes that messed it up for me. I had kissed a $10,000 pay check down the drain. But because I am debt free, I did’t feel jaded that I coulnd’t make a profit. I ended up bring a buyer to the table, helped close the deal and saved the man from foreclsure (took care of some child support too). I didn’t make one red cent on the deal. But it didn’t matter for me because helping him was my pri0rity and I really didn’t NEED the money. Hear me right.. I would have liked it but didn’t NEED it. Being debt free really realeses you and allows you to really help people. Besides isn’t that why we are all here?
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