EP: 25 A hobby that makes $35k per month with Dave Dennitson

They say that if you don't know your numbers, you don't know your business. So what are the metrics that we should be tracking in the land business? Sure, we can track revenue and profit, but what else? Numbers of properties bought and sold per month? A mix of cash versus terms or performance numbers by county? What about marketing? Do you track which campaigns are successful and which ones aren't so you can optimize the things that work and the things that don't?

In today's episode of The Land.MBA Podcast we’re joined by Dave Denniston of Generation Family Properties. Dave is a financial expert and generously shares his wisdom on how to track the numbers in your business, so you too can generate upwards of $35,000 a month in revenue.

Dave is a strong believer in income diversification. That’s why after working in the finance business for years he started in land investing. Having a day job allows him to do a wide variety of deals - not just the absolute highest ROI deals. That’s because he doesn’t beed the income being generated by his land sales.

Term deals are Dave’s preferred method. He likes to have his eggs spread out among many baskets. Currently he holds the paper on 207 notes. 207 of them. About 10% of those customers are late. That mean he’s generating about $37,000 a month of revenue. Sounds like a lot, right? But it’s not as much as you might think. That’s because he pays a lot in the operation of the business. Marketing costs about $4000 a month. He pays his sales people around $1000 per month. And then on top of that there are all the new land purchases he’s making each month. That leaves him with about $10k per month - which is still a great income. But he likes to emphasize the bottom line so people understand why they are getting into.

You have to have a great system in place. That is one of Dave’s core beliefs in managing his business. He hires domestic managers for thinks like marketing and sales. Each of those managers then hire foreign VA’s to handle much of the grunt work. Managing that team is a big job. He makes sure he speaks with each of them for an hour each week. Those meetings are all about identifying the things that are working and - more importantly - the things that are not.

“What do you hate right now?” he asks, “If I hate something I get it off of my plate.”

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