What is your game plan for 2010?

Via Bryant Tutas-Tutas Towne Realty, Inc:

Hi folks. We are quickly closing in on 2010.  With that in mind I am writing this post to give you a very simple way to achieve your financials goals for next year. First I want you to punch your numbers into this chart. We are looking for how much GFI (Gross Commission Income) you need to meet your financial obligations based on the lifestyle you want to live.

Gross Commission Income Chart

The amount of GCI (Gross Commission Income) needed is $117,500. So how do you get there?

  • Average sales price in your market area X the average commission X your % split=Your ADPT (Average Dollar Per Transaction).
  • GCI divided by ADPT divided by 12=How many transaction you need to close per month.
  • Active Listings in your Market divided by Listings Sold Per Month=How many listings you need per sale X transactions you need to close per month= How many saleable listings you need to maintain.

The math based on the numbers in my example would be:

  • $125,000 X .0275 = $3,437 X .70 = $2,406 (ADPT)
  • $117,500 (GCI) / $2,406 (ADPT) = 49 / 12 = 4 (need to close per month)
  • 600 (Active Listings) / 100 (Sold per month) = 6 X 4 = 24 (Saleable Listings)

Based on this example you would need to maintain 24 listings at all times and would need to list 4 a month. Throw in some Buyer deals and you could have a fairly decent year.

The point of this exercise is to show you how to lay out your financial map so you can make sure you are meeting your obligations with ease.

A final tip:

There are only three ways to increase your GCI.

  • Increase the number of units you sell.
  • Increase the sale price of the units you sell.
  • Increase the fees that you charge.

Does this help?

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

 

The BIO for Bryant Tutas

Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved

Make the Call, Set the Plan, Do the Deal$!

Feel free to listen to my Radio Show to learn more about the phoenix real estate market, new trends, and the latest opportunities.  The Real Estate and Beyond Radio Show Airs every Saturday from Noon-2:00pm on Conservative Newstalk KKNT 960am in Phoenix, Arizona.  You can listent to past shows, or stream on-line.

 

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5 Comments on Do you have any idea how many transactions you need to close next year?

DEC
22
2009
1,068,714 Points 70 Featured Posts Outside Blog Called Shot Master

  Yes we do this and more every year....and the important thing as we know you know....is not to write it once and tuck it in a drawer.....review, revise, renew.....rinse and repeat !
7:39am • #1
3 Featured Posts

This is such an important question that often gets overlooked. I'm a little behind but will have my numbers by the end of the year. Thanks for the post!
7:41am • #2
731,093 Points 15 Featured Posts Outside Blog Called Shot Master

Harry, Bryant's spreadsheet is a great way to know where you stand and need to be in 2010. Thanks for reblogging and have a great Holiday!
7:56am • #3
466,662 Points 2 Featured Posts

I love Sall and David's response to this about "rinse" and repeat !!!
8:05am • #4
942,022 Points 26 Featured Posts Outside Blog Attended Rain Camp

We live by the numbers and make it happen daily
9:08am • #5


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Harry F. D'Elia, Investor , Mentor, CSSN Radio Coach, REOs, ABR, ePRO, CDPE

Phoenix, AZ

More about me…

Precision Real Estate Inc.

Address: 4425 W. Olive Avenue #178, PROPERTY MANAGEMENT $60 PER MONTH PER DOOR, Phoenix, AZ, 85302

Office Phone: (623) 937-1113

Cell Phone: (602) 549-9764

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Intended to share information, ideas, and tips on buying and selling real estate in Phoenix, Arizona. Written by realtor and radio host, Harry F. D'Elia. This Blog focuses on the creation of wealth through real estate and is involved in teaching others how to conservativley buy and sell real estate to enhance one's current portfolio. Agent's are welcome to follow along and learn from Harry how to successfully meet your clients needs.


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