Advanced: Measuring ROI — Know Your Numbers or Fail
Track cost-per-lead, cost-per-deal, average profit, and time-to-close. The numbers that tell you if your investing business is healthy.
Advanced: Measuring ROI.
The Numbers That Matter.
Real estate investing is a business. Businesses measure performance. If you do not know your numbers, you are guessing — and guessing kills businesses.
Key Metrics.
- Cost Per Lead (CPL). Total spent on lead generation divided by leads generated. REHunter subscription + Call Center costs + any marketing / total leads. Target: under $5/lead.
- Cost Per Deal (CPD). Total spent divided by deals closed. Includes: REHunter, Call Center, marketing, VAs, gas, etc. Target: under $500 for wholesale, under $2,000 for flips.
- Average Profit Per Deal. Total profit from last 10 deals divided by 10. This tells you: how many deals per month do you need to hit your income goal?
- Time to Close. Average days from first contact to closing table. Shorter = better cash flow. Typical: 30-60 days wholesale, 90-180 days flip.
- Conversion Rate. Leads → Offers → Closes. Each step has a ratio. If your offer-to-close rate drops, your offers are too low or your deal quality is poor.
Monthly Review Process.
- Export your pipeline from REHunter.
- Count: leads generated, offers made, deals closed this month.
- Calculate: CPL, CPD, profit per deal.
- Compare to last month. Trending better or worse?
- Identify the weakest conversion point. Fix that ONE thing next month.
When to Scale vs When to Fix.
- Scale when: Your CPD is healthy, profits are consistent, and you have capacity for more volume.
- Fix when: CPD is rising, conversion rates are dropping, or profit per deal is shrinking. Diagnose before adding more leads.
The Goal.
A mature investor operation with REHunter looks like: $3-5 CPL, $300-500 CPD, $8K-15K average profit, 2-4 deals per month. That is $16K-60K monthly profit from a system that runs on 10-15 hours of your personal time per week.