Welcome back to another episode of the Easy Button Real Estate podcast. I'm your host, Cole Ruud Johnson. Our other host, Tucker Merrihew, who is not with me on today's show. I'm about to break down for you exactly how you can make a quarter million dollars this year in real estate without ever even owning a house or a piece of real estate. And I break that down all in under ten minutes, so stay tuned.
As if you guys watch the show, you know I like to talk in framework. I think one of the big things when you get punched enough in the mouth in real in in business, any business, and you think about issues and you solve them, you start to develop frameworks around what you do, how you do it, and things of that nature. And so today's framework I'm gonna talk about is the the quarter million dollar income level. I think that's a place where a lot of people start to feel truly financially free. And for me, I kinda hit that at twenty twenty one is when my income kinda cracked $2.50 a year, and I felt pretty financially free.
I felt like I could travel where I wanted, live where I wanted to live, do what I wanted to do, eat or wanted to eat. I And think that's an important number, $2.50 a year. I think that represents a lot of financial freedom for a lot of people. And I wanna talk about an off market acquisition business for you guys that are listening to this, the off market operators out there in listener land. Let's talk through this framework.
So the first thing to do, $2.50 a year in revenue. So let's be very conservative. Let's say you can operate on a 50% margin. I think you could probably operate a little higher than 50% margin. Let's say you operate on a 50% net margin net to you out of the business.
So that means you do $500,000 a year in revenue. K? So $500,000 a year in revenue. Let's take a scenario. Let's say you are in Las Vegas, Nevada, and your average deal size is let's say your average deal size in Las Vegas, Nevada, it's $20,000.
So to do 500,000 a year, you need to do roughly two deals. Let's call it two deals per month. Two deals per month, $480,000 a year. You're like right there. So you needed two deals a month in Las Vegas, Nevada to make your $500 revenue, your $250,000 a year profit, and to build what you wanna build with your business, with your life, and that that's where we that's the frame we're working on.
Well, if I was in Nevada and I wanted to do $250,000 a year profit, $500,000 a year revenue, the first thing you need to tackle is how are we gonna get leads in the door? If I'm the if I'm great at sales or if I'm awesome, if I have the best ideas in the world, cool. If I have no leads to talk to, well, it's very hard to to get to get two deals a month. And if we reverse engineer even more so do two deals a month in Las Vegas, Nevada is probably gonna be if you're doing outbound marketing, cold calling, texting, ringless voicemail, things of that nature, you're probably gonna be like one deal per 50 to 60 leads. If you're doing inbound pay per click, things of that nature, you're probably gonna be one deal per 15 to 20 leads.
Maybe even 10 if you're really, really good. But the deal size is gonna vary. But normally, a deal's gonna cost you, whether doing inbound or inbound, anywhere from 2,000 to 40 to a $100 right now, depending on what you're doing. So let's let's be under that assumption. Let's say, hey, I'm knocking I don't wanna do door knocking.
I don't wanna do driving for dollars. I want a reliable, predictable paid acquisition channel. Let's say I have $20,000 in the bank for my w two. Well, I think a great way to start with this, if I need 60 leads, let's say conservatively, I need 60 leads, I'll say I'm gonna start with outbound marketing, so I need 60 leads per contract. To get 60 leads, I need roughly two and a half leads per working day.
Okay? So what I can do with with 60 leads per contract is I can hire a cold caller, because a cold caller will be able to get you one to three leads a day. We use easybuttonleads.com for our cold callers. So a cold caller can give me one to three leads per day. So over a month period, that is per cold caller, that's gonna get me in that 50 to 60 range of of what I need for lead flow.
So if I have two cold callers, that should be able to get me to that two deal number if I'm sending texts inbound. But I'm gonna just pick cold calling for this scenario. So I pick cold calling, I get two cold callers that are crushing it. I might even do three just to be safe. So that's gonna cost me all in with data.
Call me the sales. It's cost me 6 to $7,000 out of my 20. This is where people like to mess up because now we're moving in from marketing to sales. If I wanna make a quarter million dollars a year, $500,000 revenue, now we need sales. Now we have leads coming in, now we need sales.
So sales is, again, a lot of it's repetition, but now you need to be working these leads going on appointments. There's so much information online across my social medias and other people's social medias. You can understand contracts. You can understand appointments. You can understand how to make an offer.
Don't over complicate it. I talked to someone today who had a limiting belief around offering too high. Like, there's so many limiting beliefs in this business. So make sure you are, you know, putting the time in at YouTube and everywhere else to learn what you need to learn. I have a free course. We have paid stuff. But just do something. K. The basics what I'm talking about here are basic enough. So then you have sales.
You're gonna be working your pipeline day in and day out, hammering those leads to get those contracts signed. K? After sales, we have fulfillment. So now you're gonna be working with title and escrow companies to get deals closed, tenants in place, things of that nature. Then you're going to have after fulfillment, you're gonna have operations.
I would hire a three to four dollar an hour virtual assistant to do a lot of your admin work, your labor work, your skip tracing work, things of that nature. After operations, you have IT. I would have a basic CRM, like a a free Podio account at this point, maybe REI Simply or something that's already set up that I can just pay them monthly. After IT, I'm going to have a finance. I'm gonna have a business banking account open to take these fees in, maybe one credit card that I pay off every month.
And then under IT and legal, I'm gonna have contracts. You can get a lot of contracts for free, but I'm probably gonna go pay $300 for a real estate attorney to review my contract for free. And then people, it's gonna be me and my my virtual assistant. So with me and my virtual assistant, if I'm hustling, I believe if I have two to three cold callers and, you know, I have $20 in the bank, have two to three cold callers, I have I'm working my leads every single day. I'm going on appointments, I'm putting the work in, I'm learning in my free time, I'm executing in the daytime, I'm getting my reps in, I'm putting the work in.
And then if if I believe those things are true, and and I'm fulfilling on contracts, I'm working tight on this for companies. Then I'm also on the operations side, I have an admin virtual assistant. I get a really good hang for that. And on the IT side, I have a good CRM, and I have my paperwork in place. I believe I could do $250,000 a year.
So that's a big thing with this, you guys. A lot of us are over complicating what we need to do in order to reach our goals. Like, just reverse engineer. Start start with the end in mind, guys. Start with the in mind.
I have I a buddy of mine who I've been talking to about potentially selling one of my one of our companies. And his advice to me was work back from the investors meeting in terms of when the investors are sitting down to put an offer together for your business, work back from that. And it's a little different with wholesaling because you're not gonna sell a wholesaling business. The reality is you're not gonna sell a wholesaling So work back from the end. What is the end?
Well, the end is I wanna make a quarter million dollars a year. Okay. What has to be true for that to happen? Work off those. Work off what has to be true for from the end to be a reality. And you'll start asking yourself hard questions. Man, is the partner I'm with the right partner? Do we have the right roles? Are we really working hard enough? Do we have enough leads?
Are we spending the amount of money we need to spend? Are we are we really committed as we need to be? Are we really learning as much we need to be learning? Do we have the right systems in place? Start with the end in mind.
If you guys start with the end in mind, I believe in this business, especially if you're looking at a quarter million dollars a year of income, you can you can do a lot. Even if you have a partner, that means you need a million in revenue, $500 in net income to each pay yourself $2.50. I mean, it's it's truly my belief that you can do a tremendous amount more if you're focused and and clear and have the end of mind because so many brokers and investors I know, and I talk about this a lot if you listen to the show, but so many that I know, they don't. And they they're on this hamster wheel chasing the next deal forever, and so will you. Right?
Because if you you get clear after that, hey. Yeah. I wanna run a $2,000,000 a year business. Well, then you if that's true, then you have to have a team. And then we're we're gonna be continuing to add to each of those departments.
Right? Because there's eight departments we need to think of. Marketing, sales, fulfillment, IT, operations, finance, legal, HR, and the bonuses product, which kind of extra strategy you, seller finance, television, wholesale, all those kind of options there. So shorter one today, guys, but think of those eight, and I urge you this week, if you're listening to this on your way to work, you listen to us on treadmill, you listen to this, wherever you listen, where you tune in from, think of those eight this week and really focus on, man, how can I start with the end in mind, and what buckets do I need to fill to get there as soon as possible? And be honest and open with yourself, and don't hide from your own questions.
Be honest, vulnerable with yourself, and and and do make the hard decision you you know you need to make for that end goal to become a reality. Well, we'll wrap the show there on that thought you got you guys today. Thanks for sticking around for another episode of the Easy Button Real Estate podcast. Super important show. As always, no matter where you listen to this podcast, Spotify app, or wherever else, leave us a review.
We only grow through you guys telling your friends, family, coworkers about the show. And until next time, you're only one deal away.