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The Most Important Number in Real Estate

Published on Monday - February 04, 2013

What’s the most important number in real estate? Is it offers made, new contacts, closed deals, clicks, revenues, or something else?

Real estate investors are often taught to focus on many of these things. They are told they must find out more about increasing a certain metric which is the real key to their real estate investing ‘success’.

“If you just focus on…”, making new contacts or web traffic or making offers, or if you just set your goals for number of closed deals this year a little higher everyday it will all pan out, right?

So which is it?

Perhaps it is more deals? If you close 100 deals instead of 10 this year you are going to make it right? You’ll hit all of your goals, and have all the money, free time and happiness you could possibly desire, right?

It’s a great goal; be the new Trump and build your empire of 1,000 rentals or flip more deals than anyone else has, have a fancy office, have lots of people working for you…

Unfortunately volume of closed deals is perhaps the biggest trap of all. It’s a metric that often just results in more work and stress often less of what’s really most important.

More closed deals can be great, but what you really want, and the most important number in real estate investing is, is NET PROFIT.

That’s what you really put in your pocket. None of the rest matters. Why do 1,000 deals and drive yourself crazy if you can put the same net sum in your pocket with just 1 deal a month or even 1 a year?

Is your business model and real estate investing strategy centered on more net profit?

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