Investors who do not understand how many deals they need in their pipeline are destined to fail in this business. To know how many deals you need in your pipeline, you need to think about it backwards. First, determine how many deals you want to cash out about three months from now. Next, you need to know what your success rate is in the business. I am currently cashing out on about 80% of the deals I take on. If you are a new investor, plan on cashing out about 30% of your deals when you first start. If you are a part of a solid coaching program, you can expect to cash out on a higher percentage than that. So in the case of a new investor cashing out on 30% of your deals, if you want to cash out one deal three months from now, you need to get 3 deals in your pipeline this month. Then in you continue to gather 3 deals per month, you will consistently be cashing out 1 deal per month. If your standard deal makes you $10,000 to $15,000, then you’re talking an instant yearly income of $120,000 to $180,000. Nice, huh. Yes, it really is that simple. Realize that when your cash out percentage goes up, so does your income… significantly! And if you are able to acquire twice the deals (increase from 3 to 6 per month), your income will also double. Remember, the key is to keep your pipeline full. If you get three deals and work them until they cash out, and THEN start to put more deals in your pipeline, you will run out of money, get frustrated, and go back to your day job, which you probable want to avoid, that’s why you’re reading this right now. So get the deals, and remember to continue getting the deals. You MUST continue filling your pipeline month after month after month. The key is to get people and systems in place to help you keep the deals coming.
The best,
