The Numbers: Why The Agent-Investor Partnership Makes Sense
A revolutionary new relationship structure for Agents & Investors to dominate markets & win together by capitalizing on macroeconomic trends.
Trend: Growing Financial Hardship
According to research, 67% of Americans don't have enough cash on hand to deal with a $400 emergency. Macroeconomic trend: More sellers are requesting Fast Cash Offers from investors to gain immediate access to the equity trapped in their properties.
Projected Lead-Gen Spend $165,000
Over the next 18 months, we plan to spend $165,000 on marketing efforts to generate Cash Offer Request leads from Sellers needing to rapidly sell off their property to stay ahead of, or to get out from underneath acute stressors, paint points & financial problems.
825 Seller Leads Generated
At an average cost per lead of $200, which our marketing team can achieve, spending $165,000 gives us 825 seller leads. Better yet, according to recent Google Search Data, searches for "Sell my home fast" spiked 2,750%. These are not people who want to sell. But who need to sell.
16 Acquired Flip Properties
Only 1-2% of leads are suitable as investment deals. Of our 825 seller leads, that's 16 acquired flip properties. The profitability model of our investment business is very much like gold mining. To find the gold, i.e., the properties we can make $70k, $80k, $100k in profits on, you have to process a lot of dirt.
$1.28M In Projected Total Profits
In the next 18 months, at $80,000 average profit per flip, those 16 acquired flip properties leads to $1,280,000 in projected profits to be collected. Acquiring, renovating, & reselling those properties is our bread and butter. Our operation runs like a Swiss watch. We prioritize low volume, high profitability. To mitigate the risk, our criteria for acquiring a property capable of hitting profit targets is extremely discriminating. The biggest factor to mitigate risk is buying at cheap discounts off of our ARV. This means we acquire properties at $.50 to $.60 on the dollar.
$180k in Commissions & Fees
For those 16 flips, we will have an agent do the listings. 16 listings at an average listing price of $450,000 with a 2.5% commission equals $180,000 to a real estate agent. To maximize the ROI of every Flip Property we renovate, each property gets listed on the MLS. We don't do any ‘For Sale By Owner’ bullshit. Maximum profits come from maximum exposure. Further, every Flip Property is converted into a true Pinterest-level property. Professionally designed by award-winning designers based on most current trends & consumer behavior. Each property is professionally staged & photographed. Further yet, we aim to be the best-priced property on the market, purposefully undercutting the price of any true comparable to drive interest & demand to Pinterest-level property vs. other options. For the agents who will list our properties, it's the easiest commission of their life.
$776k in Lost Commissions
You might be asking: 825+ Leads generated, only 16+ investment properties acquired… what did you do with those other 98-99% of Seller leads?
