$500K-1M+/YR Profit Land Flipping Business Structure

Hey guys, this is Family with Lers, and today I'm going to share with you my $500,000 to $1,000,000 a year land business structure. A lot of people have been asking me how to structure the business, this and full processes and SOPs and everything like that are within LandVerse, so I'm not going to share with you guys all the deliverables on YouTube because otherwise, you know, my students will be upset, clients will be upset. So I'm going to share with you guys the main basic frameworks that I use and how you can potentially implement them into your own business. So let's get started.

Acquisition Manager is a very, very, very key role, um, if not the most important role in your business because that's what drives all the profit, all the revenue, all the deals. If you don't have a really solid Acquisition Manager, if you don't have someone that's driven, that has a vision for their own life, that is a leader of sorts as well, you're going to have some trouble. If you have someone that's lackadaisical, wants to take the weekends off, isn't hungry, then you're going to have trouble getting deals in consistently. And so it's very important, you know, first I always say to hire this position last because if you hire this position last, you're going to have time to really build processes and systems around this position so that you can go find the person that's going to be fit for this role. Because a really good Acquisition Manager can make you anywhere from half a million dollars to a million dollars a year, depending on how much marketing you're you're sending and depending on what markets you're going after. So this role is extremely important, like I said, if not the most important role of this business because it drives all the revenue, drives all the money. If you're not getting deals under contract, if you're not closing deals, you can't list them for sale, and you can't make money. So this is the front end. Um, beyond that, there's PatLive, and then SMS leads get pushed to the Acquisition Manager, and then they handle it from there. So essentially, the Acquisition Manager handles qualification, report building, negotiation, offer making, and the bench line for that, which I'll get into a little bit later with KPI.

Next is the Admin and Transaction Manager. This person essentially handles all the contracts, makes sure that all of our deals are being tracked well, makes sure that pretty much all the numbers in the business are steady, running, and on pace to what our goals are for that year and that quarter and that month. So this person just manages pretty much all the functions of the business, makes sure that everything's running smoothly. If there's an issue, they handle it, um, but mainly it's okay, contract signed, send it to title, make sure that title has the contract, make sure that everything's good, get an estimated turnaround time for the title report, all those things; that's what that person does. If a contract needs to be signed, they can also follow up on that; they can also resend the contract; they can also make sure that we're getting in the contracts that we're needing to get in. So really just a lot of KPI management for this person as well and, um, KPI input as well. I pay this person $500 a week. And if I didn't mention that, I pay my Acquisition Manager 10% commission per deal.

Um, and then next is the Dispo Manager. So I pay them $500 a week, and they get a time-based bonus based upon how quickly a property sold on the market, which really incentivizes them. Because one thing that I teach is to make sure that we're aggressively pricing our properties. If we're aggressively pricing our properties, and there's an inherent amount of demand in these markets, they're going to sell fast every single time, and they're going to sell fast in relation to what all the other properties sold for, right? So if the average property on this market is selling in 120 days, I want to be at, at least half that; I want to be within 60 days or less. So I have to price aggressively, and then I also have to make sure that my marketing is good. So heavy focus with this Dispo Manager on really good marketing, really good listing descriptions, really good pricing, and then also, um, the Dispo Manager's job is to make sure that our broker ROI is continuously growing with qualified brokers. We're still mainly using brokers to list properties; we did do a few self-lists this year, and I, I liked self-listing, um, so I'll probably do a little bit more of that within the next year, um, but I don't think that there's anything better than having a broker that's boots on the ground, handling leads, can go to the property with the leads, um, that's I haven't really found anything better than that, and I wouldn't say self-listing is better than that either. The only thing that self-listing does really is, is allows us to pay less when we sell the property, but to me, when you have a really, really good broker, it's, it's more than worth it. So the Dispo Manager's job is really to find those A-player brokers consistently and make sure that we keep a Rolodex—I have, I don't know, probably like a hundred or so brokers in my Rolodex now—and so, and these are good brokers, not just like agents, and no, like really good brokers, um, in, in a bunch of different markets. It's important to continuously connect with brokers because I want to have a pulse on every single market that I'm in; I want to understand it like the back of my hand. And the Dispo Manager and the Acquisition Manager, you know, my entire team works very closely together, but the Dispo Manager and the Acquisition Manager do meet together and discuss because if there's something new that's going on in the market, the Acquisition Manager needs to know it so that they can be best equipped to have that conversation with the seller over the phone, right? And so in every market that we're in, we just keep a very, very deep pulse on every market so that when the Acquisition Manager is having the conversations, they know exactly what's going on; they may even understand some of the jargon in these markets, right, because we have such a pulse. Very heavy focus on evaluating the average, highest, and best use for the average of properties and whatever market that we're in. So with a few people, we're getting very granular and getting very detailed so that we understand how to really buy and sell properties faster.

So I'm going to go over my KPIs; I know that there were questions about my KPIs. So this is what we track. Let me zoom out to this a little bit. So we track conversations: total conversations month over month, SMS conversations, mail conversations, mail sent, text sent, cost per conversation, contract sent, contract signed. We track if deals are falling through at title; we track why they're falling through at title, and then we try and figure out an average reason why. So are these falling through because they're landlocked? Are they falling through because, like, just what are the reasons? Um, conservation easement, is the seller backing out? Did the title company say, you know, there was some kind of issue? Like, why, what were the issues? So those are things that we track. I'm also tracking cost per deal closed; I'm tracking average cost per deal; I'm tracking average price of sale; and then I'm tracking average profit per deal. Those are the key performance indicators that I track in my business. The biggest thing for me in relation to how much cash we're making quarter over quarter is the conversations. So how many conversations is the Acquisition Manager having every month? And it needs to be at least 100. If it's below 100, then we have an issue. For you to be at a million dollars a year, you need to be having at least 200 conversations every single month. So if you're having anywhere from 6 to 7 conversations every single day, that's going to lead you to getting to a million dollars a year if you're aimed in the right markets and your profit targets are $25,000 or more. And conversations just means how many people you're talking to; it doesn't mean how many people are not interested; it doesn't mean how many people are interested; it just means those are the amount of conversations that you need to be having. This entices the Acquisition Manager to take action, and this will also entice you, whoever's watching this, to take action as well because if you understand that, okay, well, it's math; if I just talk to this many people every single day, then okay, how many, how much marketing do I need to send out to talk to this many people every day? You just kind of go backwards from there. Then you take massive action because then you're not going to be thinking about, okay, well, how many leads did I have, or how many—you're not going to be thinking about that; it's just how many conversations do I need to have to get to my goal? And then what you'll find is, you know, that's the magic number that I've seen from doing this over the last few years is it needs to be at least 100 conversations to get to half a million dollars net, at least; that, that's like the bare minimum. So when you put a heavy focus and you take care of your inputs, the outputs will always follow, and they'll always treat you well.

So on the front end of my business, we put a heavy, heavy focus on the presentation of marketing. So what do our mailers look like? We split test a lot; I've sent closing in on a million mailers now, and we put a very, very heavy focus on, like I said, what does the marketing look like? What is the verbiage? Who are we speaking to specifically? And depending on the asset type that we're going after, and you know, in this business, we're going after two asset types; I'm not really looking for any subdivides or anything like that. If I do get minor subdivides, then they get pushed somewhere else, um, but this is essentially how many—so on the front of the business, there's a heavy focus on the presentation of marketing; we put emphasis on that, how we're marketing, who we're marketing to, what kind of property types are we going after type, and the average seller for that property type. We will also split test the marketing from that. So let's say that I have a deal that I want to buy for $200,000, sell for $400,000; I'm not going to market it to that seller profile the same way I'd market to a deal that I'm buying for 30 and selling for 60. The marketing is a little bit different; the verbiage is a little bit different; the presentation overall is just different. What matters very much is your PatLive and how you're texting a seller. First, I'm going to start with PatLive. The first touch point that a seller has—well, really the first touch point a seller has is your website. So your website needs to be, I mean, crispy clean; needs to be extremely professional, extremely concise. There should be nothing, absolutely nothing, that makes you look like, you know, you might be a scam. You need to look like an official company; you have to; otherwise, the sellers are probably not going to call you because they have 10 to 15 other texts or letters inquiring about the exact same property. So you need to stand out, and that's really what we focus on: standing out, standing out above the rest, looking better than all the other companies; you have to do that. Now the second touch point for a seller is calling that number that's on the letter if it's a—right? So they call the number; once they call the number, what does the first touch point sound like? Who's on the other end of the line? So with PatLive, over the last couple years, I've been very focused on, you know, listening to the calls and listening how—and listening to how they answer the phone. So if they answer the phone like, "Hello, who is this?" To be honest with you, sometimes PatLive has answered the phone like that, and so I'll have to go tell management at PatLive like, "Look, this is the expectation," and then dial it in more and more and more. So now there's like a couple people that answer the phone on my PatLive because I've dialed it in, and I've also made sure that there are some people that are just not on my account because I want to make sure that every single time a call is answered, it's the same process; it's a positive touch point, whether it's a negative response from a seller or not, it doesn't matter. And there have been times where the—and again, don't get me wrong, this can be difficult if you're on the phone all day answering the phone, and then people are calling you and cursing you out. I can understand how that's difficult, but you have to treat it the same way as if it was an actual lead because there have been times where the receptionist answered the phone, and they were very positive and very receptive, and the seller called, cursed them out, and then they called back and apologized, and then beyond that, they called back and apologized and gave their information for the property so that we can actually talk to them. So that's very important. I have my Acquisition Manager qualify, build trust and rapport, and make offers. So again, that's why the right people for the right position are so important because I have seen people's backend before, and they'll have like lead manager, lead qualification manager, Acquisition Manager—like it's just too, it's just too much, and I never wanted to run a business where I have like a 100 employees for no reason. You can make half a million to a million a year with an extremely lean team, specific, dialed-in marketing, and just being consistent; you can, but you have to have the right people in the right positions. So again, Acquisition Manager qualifies leads; they build trust and rapport, and they make offers; they do that every day. So building the trust and rapport is very important, and that's probably going to be a separate video, but—and I actually do have videos like that on how you guys build trust rapport and sell sellers on yourself—but the main thing really is 80% them, 20% you; making sure that they're talking a lot more than you and that they're telling you the story of the property so that you can be best equipped to make an offer and kind of identify their pain points as you talk to them, really trying to figure out what is the pain so that I can help you—and can I help you? Can I give you 50K in the next two weeks versus 100K in six months potentially because you don't know how to market a property? So you have to be able to understand how to do that with these sellers, and a good Acquisition Manager can really do all these things; they can take it from qualification to building trust, rapport to making offers and to negotiating and to making those crunch time counters, literally all of it; that's what my Acquisition Manager does. So that's the front end of the business.

Now on the back end of the business, heavy focus on KPI tracking quarter over quarter, month over month, and week over week; that's how dialed in we are on KPI tracking. Now the actual, you know, sheet that I have is month over month and quarter over quarter, but we do track our KPIs week over week in Slack as well. We keep a very close eye on leads. If you're sending out a lot of marketing, what can happen is, again, if you have, if you don't have A-players, then you're going to have low-hanging fruit, and wait, hold on—if you don't have A-players, then the A-players are just going to focus on the low-hanging fruit, and so you have to keep a close eye on leads so that's really what the Acquisition Manager and my general admin does; they keep a very close eye on leads and make sure that nothing is just kind of floating. If we're following up with the lead for a certain amount of times and they haven't responded, there's a place they get moved to; if a seller isn't interested, there's a place they get moved to; if a seller is interested, there's a place they get moved to. The leads just need to be on a consistent conveyor belt. If they're not on the conveyor belt consistently, then it's going to be hard for you to close deals because there will be times where you're sending out a lot of marketing, and you could have a lead in your CRM that didn't get the attention that it needed, which is why, again, I make sure to say we need to have this many conversations every single month because if we have this many conversations, there's no possible way, way that any of these leads could be floating in the CRM; there's no possible way. Making sure that you're with a good title company that is going to do right by you because there are some title companies out there that know what we're doing and are starting to understand the land flipping model, and they're not good; they'll like slow down on your deal; they won't do it as fast; they'll process slowly, and I've seen this happen; it's like, it's crazy. Once they figure out that we're making money, they have a completely different mentality towards you. So you, following up with title and being professional, being nice to them, taking care of them too—every year, title companies that I work with, I send them a basket full of goodies every single year; I've also paid for lunch for title companies before as well. So I take care of the title companies that we consistently do deals with as well, and I found that in the markets that I really like working with, those title companies, they always take care of me, and I never have any problem actually getting title back on deals, and I get them processed a lot faster with the title companies that I take care of. And I aim to take care of every title company that I work with just like I aim to take care of every person that I work with, right? Everyone that works with me, I aim to take really good care of them because when you do that, when you take really good care of people, and you're not, like, you're not trying to be an authoritarian, and it's not like, "I'm your boss, and this and that," then people are going to respect you a lot more; they're going to trust your vision a lot more, and they're going to trust you a lot more. If they don't trust you, they're not going to trust your vision; they're not going to believe in you, and then what's going to happen is you're going to have a bunch of people that are just with you for the money, right? And, and that's it; there's no culture; there's, there's nothing there. So when it gets hard, what's going to happen because there's no culture? Your business is going to go belly up, which is why it's important to take care of your people. You have to keep your integrity, be nice to these people, and just like, just genuinely just be a good person; that's, that's literally it. That's what I found in, in business in general is when you are a good person and you lead, you lead by example, you have a vision, you're strong, you're driven, you're disciplined, then what happens is everyone around you feels that, and they buy into what your vision is, what you're building, and who you are. That's it. Take care of people; people will take care of you.

Now we make sure that we keep the seller in the loop throughout the entire process. You have to make sure that, like, once you get a contract signed with the seller, what can happen is, even if we built out the trust, the rapport, everything like that, and they trust my Acquisition Manager, they can still feel like, "Oh my God, am I going to get scammed? Is my property going to get stolen from me?" And these are genuine concerns that these sellers have because you have to think, they have never seen you before; they don't know what you look like; all they've done is talk to you on the phone; all they've done is seen a website; they don't know. So standard procedure for us is as soon as we get a contract signed is kind of like an onboarding process, and that we say, "Perfect, we're going to send this to title; you should hear from the title company within 24 to 48 hours," and then we have our Transaction Coordinator let title know to contact the seller and that their, their contact information is all there, so they contact them. And then once the title company calls, there's some more assurance with the seller, and usually we don't hear anything after that, but it depends on the profile, and because we've dialed in on profiles, we know what seller is going to act what way. So sometimes there, there are times where we coddle a seller a little bit more to the closing table, and there are other times where we don't have to do that. So it just depends on the seller profile, and that's why you have to really understand seller profiles and what they are and how to serve each and every one of those different personality types.

So the last thing too is just coordinating with brokers. Once we get to the point where we've gotten title back on our property, everything looks good, everything looks clean; we've already started coordinating with brokers; we've already kind of let them know that this property is going to be coming, but now we're coordinating, you know, the listing, the photos, the descriptions, everything like that; that's where we're coordinating and making sure that as soon as we close on the property, we list within 24 hours; that's, that's a very key metric for me. I want to be listing pretty much as soon as I close and the deed has been recorded. And so we make sure that our deeds are recorded, and there, there are some counties and areas where, you know, the deed is going to take a little bit longer to record, but we'll still list the property; you need to be as fast as possible with this, as fast as possible. So as soon as the property closes, you want to list it; closes, we list. Now that's a little bit different when we're doing double closes; I still do double closes, and those work very well for us, but the standard model of buying and reselling, that's how you do it.

Now our company model is: Extreme accountability and discipline equal freedom. That's something that I preach, and that's something that my team members have absolutely bought into, and what that means is that, you know, I'm going to provide everything that we need to be successful: the marketing, the processes, every single thing. You have to be accountable for your job in your position; you have to be extremely accountable; don't blame this person or that person; internalize, "What could I have done?" And as a leader, that's something that I also have to do; if something went wrong, I have to take extreme accountability, and I have to have discipline. If you want to make half a million to a million dollars a year or more, you need to understand that that's not, that's not a, that's not a normal income; it's not. So in order to have that, you have to be extremely accountable, and you have to have extreme discipline, and that will always equal freedom, always. There's no weekends; there's no holidays; there's no none of that. And am I going to say that no, my, that my employees worked on holidays? No, but a lot of them wanted to; we still sent texts out on Christmas and Thanksgiving and New Year's. So understanding that, like, when you have the right people and you have your tribe and your crew, oh my God, it's like the best thing in the world because they're in the, they're in line with the same vision and value as you because they want to do the best they can for their families as well. And so, yeah, extreme accountability and discipline equal freedom. Culture has been a very key part of this business as well, and just making sure that everyone is working smoothly together, and it's a collaborative environment, and it's something that I, I enjoy. Um, we meet twice a week, and we send a lot of Looms. I pretty much live by Loom. Our processes are so dialed to the point now where it's like some of our meetings are, are like 15 minutes, so we don't meet for like hours and hours on end, um, and that's essentially it; that's really my business structure for this business. Uh, I have a completely different structure for my funding business, and I'm building out processes and systems to specifically go after larger subdivides this year as well. Now all the deliverables and the details and specific processes in all of these are within the LandVerse training programs, so if you're interested in implementing this system into your…

Business book a call with me below, and we'll help you out. This has been Fe with lver, and I'll see you guys on the next video.