Ever wondered how top real estate investors scale their business to multiple markets and consistently land deals? We recently got the chance to sit down with Sal Shakir from National Cash Offer, who broke down the essentials of systems, scaling, and data tracking.
Whether you’re already closing deals or just getting started in real estate investing, the insights from Sal can help you elevate your game. From understanding market dynamics to implementing robust systems, this blog post covers it all.
Meet Sal Shakir
Sal Shakir’s journey is nothing short of inspiring. An immigrant from Iraq who moved to the US at the age of 15, Sal has worn many hats. He worked with the US Army for three and a half years and later ventured into the automotive sales industry. It’s his transition from car sales to real estate that makes his story particularly compelling.
Sal met his business partner Carlos Reyes after years of working in sales. What started as a friendship turned into a formidable business partnership, leading them to create National Cash Offer. Their journey highlights the importance of grit, adaptability, and teamwork.
The 5 Steps to Build and Scale a Business
Envision
The first step in building a profitable business is having a clear vision. You need to know exactly what you want to achieve. For Sal and Carlos, the vision was to create a robust real estate company that could operate seamlessly in multiple markets.
Build
Once you have a vision, the next step is building your business from the ground up. This often means doing a bit of everything yourself initially to understand each facet of the business intimately.
Systemize
Here’s where many entrepreneurs falter. Documenting your processes is crucial. Every system you build should be streamlined and repeatable. This ensures that when you delegate tasks, there’s no loss in quality or consistency.
Delegate
Sal emphasizes the importance of mastering a role before delegating it. You need to know the nitty-gritty of each task to train your team members effectively. This allows you to scale without compromising on efficiency or quality.
Rinse and Repeat
Once you have a solid base, the next step is to replicate your success in new markets. Expanding into different regions requires data-backed decisions and a keen eye on market dynamics, but the core principles remain the same.
Determining New Markets
Data-Driven Approach
Sal relies heavily on data to choose new markets. Instead of jumping into a market based on proximity or gut feeling, they do extensive research using resources like UnitedStatesZipCodes.org.
Analyzing Zip Code Data
Sal and his team analyze each zip code for:
- Population
- Cash transactions in the past three, six, and nine months
They then color-code these zip codes based on their “temperature” – hot markets are coded red, cooler markets blue. This granular approach helps in making calculated decisions on where to invest.
Revenue and Deal Metrics
Knowing how much it costs to acquire a lead and close a deal is vital. Sal’s team tracks:
- Cost per deal
- Average profit per deal
- Desired return multiplier, which they aim to be around 6x.
Different marketing channels yield different results. They closely monitor:
- Cost per lead by channel
- Deal velocity by channel (how fast deals close)
Building a Comprehensive KPI Dashboard
Sal’s team uses tools like Podio and CallRail to track these metrics in real time. Their KPI dashboard helps them tweak strategies weekly to optimize performance.
The Importance of Knowing Your Numbers
In Sal’s words, “If you don’t know your numbers, you don’t own a business.” Monitoring numbers allows you to make strategic decisions such as:
- Doubling down on hot markets
- Scaling back in underperforming markets
Prioritizing Leads
Tracking Selling Reasons
Sal emphasizes the importance of understanding why sellers are looking to sell. They track diverse selling reasons and stack these factors to prioritize leads. This involves understanding client pain points and offering tailored solutions.
Building Rapport
Sal’s team devotes 80% of their conversation time to understanding the seller’s needs and only 20% on business. This approach builds strong rapport and converts leads more effectively.
Scaling Team and Operations
Early Implementation of Processes
Invest in systems early, even if you’re closing just a few deals a month. Sal suggests using systems like Podio, CallRail, and investor automation tools to streamline operations.
Effective Hiring Practices
Interviewing as a team and assessing for culture fit are crucial steps. This collaborative approach ensures you hire candidates who align with your company’s core values.
The Speed Factor
Considering Deal Velocity
Besides cost, the speed at which deals close is crucial. Different types of leads and marketing channels have different conversion times, and Sal’s team tracks this closely to maintain a consistent revenue stream.
Finding the Sweet Spot
The goal is to find the sweet spot for lead types in different markets. By understanding which leads convert faster, Sal’s team optimizes their efforts to ensure a constant flow of deals.
Leveraging Car Sales Experience
Sal’s background in car sales has proven invaluable. His ability to handle rejection and work persistently translates well into real estate. Creating a team-based environment where everyone feels supported is another lesson from his sales days.
Sal’s Parting Advice
Sal’s advice to aspiring real estate investors is straightforward:
- Put in the work
- Understand your business thoroughly
- Track your data religiously
- Find the right partners and team members
These principles have helped him and Carlos build a successful real estate empire, and they can help you too.
Join the All In Freedom Mastermind
If you want to dive deeper into systems, scaling, and real estate strategies, consider joining the All In Freedom Mastermind. Scheduled for June, this event is ideal for anyone looking to take their business to the next level. Visit All In Freedom for more information.
By focusing on key systems, tracking the right metrics, and maintaining a robust team and process, you can scale your real estate business effectively. Take these lessons from Sal Shakir to heart, and watch your business grow.
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