How to Double Your Lead Flow Without Increasing Marketing Costs | Felipe Bossans

Summary

The Science of Flipping: How to Double Your Lead Flow Without Increasing Marketing Costs | Felipe Bossans

Release Date: September 20, 2024

In this insightful episode of The Science of Flipping, host Justin Colby welcomes Felipe Bossans, founder of 8020REI, to discuss innovative strategies for real estate investors aiming to double their lead flow without escalating marketing expenses. Felipe shares his expertise on leveraging data-driven systems, optimizing lead conversion, and reducing acquisition costs, providing listeners with actionable techniques to enhance their real estate investment businesses.

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Introduction: Maximizing Lead Generation Efficiency

Justin kicks off the episode by emphasizing the importance of maintaining a steady lead flow while managing marketing budgets effectively. He introduces Felipe Bossans, highlighting his success with 8020REI and the company's mission to help investors achieve millionaire status through optimized systems.

Notable Quote:

"If you're doing any level of marketing at all, you will not want to miss this episode." — Justin Colby ([02:02])

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Understanding the Three Levers of Real Estate Success

Felipe outlines the three critical levers in real estate investing that can significantly impact an investor's success:

1. Increasing Leads Without Additional Spend
2. Enhancing Lead Conversion Rates
3. Lowering Cost Per Acquisition

He emphasizes that data plays a pivotal role, constituting approximately 30% of the equation. Felipe explains how effective data management—such as segmenting lists and refining outreach strategies—enables investors to maximize their ROI from outbound channels like cold calling, direct mail, and texting.

Notable Quote:

"It's all about having good data. That's probably 30% of the equation." — Felipe Bossans ([02:50])

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The Evolution of 8020REI: From Operators to Data Experts

Felipe shares the origin story of 8020REI, which began in South Florida's competitive market in 2017. Initially focused on wholesaling, the company adopted the Pareto Principle (80/20) to achieve more with less. This approach led to the development of "stacking duplicates," a method of ranking properties based on objective data points like pre-foreclosure status and tax deed information.

As the industry evolved, 8020REI pivoted from offering done-for-you outbound services to specializing in high-quality data provision. Felipe explains how this strategic shift allows them to provide clients with superior data and establish valuable partnerships in areas like direct mail services, CRM solutions, and talent acquisition.

Notable Quote:

"If you double click on it, like, there's only three levers that can be pulled in real estate that, you know, make a big difference." — Felipe Bossans ([02:50])

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Data-Driven Decision Making: Enhancing ROI Through Precision

A significant portion of the discussion revolves around the importance of data-driven decisions. Felipe illustrates how 8020REI's proprietary algorithms and market analysis reports help clients identify high-performing zip codes, optimize marketing efforts, and achieve better returns on investment.

Case Study Example: Felipe shares a specific instance in Miami where 8020REI identified two zip codes with similar property counts but vastly different revenue outcomes. By reallocating marketing resources to the more profitable zip code, clients were able to triple their deals within three months, demonstrating the power of informed decision-making.

Notable Quote:

"You're going to mentally check out if you're doing all the minutia. But what if you have just a couple of key players that protect your time?" — Felipe Bossans ([15:46])

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Tailored Solutions for Professional Investors

While 8020REI's services are primarily designed for professional real estate investors with substantial marketing budgets (typically $20k+ per month and handling 100+ deals annually), Felipe emphasizes the company's commitment to helping these investors scale efficiently. For smaller players just starting out, he recommends hiring a coach and utilizing alternative data sources to achieve quick wins before transitioning to more advanced solutions like those offered by 8020REI.

Notable Quote:

"Our product, it's on the, it's on the premium side. So it's designed for the professional real estate investor." — Felipe Bossans ([08:28])

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Strategic Partnerships: Expanding 8020REI’s Value Proposition

To complement their data services, 8020REI has forged strategic partnerships that enhance their value proposition:

• DM Force: Specializes in direct mail services.
• 8020 CRM: A Salesforce-based CRM tailored for real estate investors.
• 8020 Recruit: A talent acquisition agency focusing on sourcing and pre-vetting virtual assistants from Latin America, ensuring cost-effective and transparent hiring.

These partnerships enable 8020REI to offer a comprehensive suite of tools and services that address various aspects of real estate investing, from lead generation to team management.

Notable Quote:

"It's the only CRM that uses native tools." — Felipe Bossans ([12:26])

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Navigating Market Challenges: Resiliency and Adaptation

Felipe discusses the resilient nature of the real estate industry, highlighting its ability to adapt to economic shifts better than other sectors like financial services or crypto. He reassures listeners that even amidst economic uncertainties—such as high inflation or unemployment—real estate remains a necessity, allowing seasoned investors to thrive by adjusting their strategies.

He emphasizes the importance of consistency and adaptation, encouraging investors to explore diverse exit strategies like novations, net listings, and seller financing to stay competitive and profitable.

Notable Quote:

"The players in our industry are going to be able to adapt, to thrive." — Felipe Bossans ([19:05])

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Optimizing Operational Efficiency: Reduce, Streamline, Succeed

A key takeaway from the conversation is the necessity of operational efficiency. Justin and Felipe discuss how minimizing operational costs and streamlining processes can significantly boost profitability. By leveraging data to identify bottlenecks and inefficiencies, investors can make informed decisions that enhance their bottom line without excessive overhead.

Felipe shares insights into how 8020REI's data helps clients pinpoint underperforming areas and redirect resources to more lucrative opportunities, thereby maximizing returns while keeping costs low.

Notable Quote:

"You're going to be mentally checked out if you're doing all the minutia." — Felipe Bossans ([15:46])

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Conclusion: Empowering Investors Through Data and Strategy

As the episode wraps up, Felipe encourages listeners to visit 8020REI.com to explore their suite of services, including data provision, CRM solutions, and talent acquisition. He underscores the importance of making data-driven decisions to remove emotion from the investment process, ensuring sustained growth and profitability.

Justin reinforces the episode's key message: efficiency and smart resource allocation are paramount for success in real estate investing. He invites listeners to engage with 8020REI and take advantage of their premium services to elevate their investment strategies.

Notable Quote:

"You need to have a service like 8020 REI because your efficiencies are off. Bigger isn't better." — Justin Colby ([31:23])

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Final Thoughts and Next Steps

The episode concludes with a strong endorsement of 8020REI’s offerings, highlighting the company's role in empowering real estate investors to maximize their lead flow efficiently. Justin and Felipe express mutual respect and excitement for future collaborations, leaving listeners with a clear call to action to explore 8020REI’s resources and implement data-driven strategies in their own businesses.

Notable Quote:

"If this was helpful at all, please share this with at least two of your friends." — Justin Colby ([38:20])

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By focusing on data-centric approaches, strategic partnerships, and operational efficiency, Felipe Bossans and 8020REI provide invaluable insights for real estate investors aiming to scale their businesses sustainably. This episode serves as a comprehensive guide for both seasoned professionals and emerging investors looking to optimize their lead generation and overall business performance without inflating marketing costs.

Transcript

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[Felipe]

It's the only CRM that uses like native tool.

[Justin]

Yeah, yeah.

[Felipe]

And the one partnership that regardless of whether you're starting in your journey or you're or you're a professional real estate investors. It's our talent acquisition agency called 8020 recruit, okay. That specializes in sourcing and pre vetting talent from Latin America. What happened is that when we shut down the done for you line of service of the VA so called in the last two, three years, my partner and I, we probably get 10 to.

[Justin]

20 emails a week wanting it back.

[Felipe]

We have all the systems in place where we would find that talent in Latin America. So a client can manage that relationship without a markup, without all the gray area of like, oh, you know, I'm paying 10 bucks an hour for somebody that I should be paying six bucks an hour. That's gone.

[Justin]

What is up? The science of flipping family. We are back with an incredible guest. If you are doing any level of marketing at all, you will not want to miss this episode. I don't care if you're doing direct mail, ppc, cold calling, texting, whatever you're doing, you can double your lead flow without having more marketing costs. Today's Special guest is Eighty20 founder, Eighty20 Rei founder Felipe is in the house. What's up dude?

[Felipe]

Thanks for having me, man.

[Justin]

Man, I'm excited about this because as someone who spends, you know, close to six figures a month on marketing myself is imperative that we understand how to cut our bottom line. Keep lead flow coming in, increase productivity. Right? So let's talk about how the hell has 8020 Rei found the secret to be able to double lead flow without having to spend more money?

[Felipe]

So we, I mean, when we started 80 20, back in 2019, we started as operators. So one of our business coaches just said, you guys are good operators, but you guys are great at data and marketing. How the hell you do it? You should do a product with this. And really, if you double click on it, like, there's. There's only three levers that can be pulled in real estate that, you know, make a big difference. It's either one, how do I get more leads without spending more? Two, how do I convert more of those leads into appointments and then into contracts that I can sell? And three, how do I lower my cost per acquisition? So what we doubled down on was on, okay, how do we get investors to get more leads from cold calling, direct mail, and texting without having to spend more? And at the end of the day, it's all about having good data. That's probably 30% of the equation. Then what are you going to do with that data? Like, okay, how often should you call, how often should you mail, how often should the list be segmented? And then how are you going to go about talking to the leads that you're generating? That's where, for example, cold calling scripts, SMS talk tracks, or all of that, or the mail piece you use comes in handy. So what we've been able to do, I would say for over 149 clients going forward, it's to help them get a better ROI from their outbound channels without spending more so they can make better marketing decisions.

[Justin]

I like that a lot. So it's someone that obviously I do. I just started actually TV commercials for the first time ever, just because I want to be able to have multiple marketing channels. Right. I firmly believe in that. But what you guys have done that I find so impressive in what I love, you were practitioners first, and you needed to solve a problem in your own business, which led to what now we know is 8020 rei. What was the problem you were ultimately trying to solve? Like, where did. Because I, I myself have done something very similar where I had a problem my own business. I created a solution that turned into Rocket League. Right. So what was the problem? And then how did 8020 Rei as we know it fix that for you?

[Felipe]

So when we first started wholesaling, that, I'm talking way back in 2017, we started here in our backyard, South Florida. And you live here too, and you know that it's probably one of the most competitive Markets in America, big metro area, big institutional players here. So. And we were bootstrapping, you know, smaller players. Like, we just figured out, like, okay, we're fanatical about the Pareto law, the 8020 principle. So it's like, okay, how do we get more with less? And then when it wasn't even a thing, the whole concept of less stacking, my partner, Jesus, he started figuring out a, instead of just removing duplicates, let's just stack them. And then that worked out for us really well because we end up getting deals where with little to no competition, when nobody else was doing. But just like any industry, what got you here won't get you there.

[Justin]

That's right.

[Felipe]

So there's iterations to it. So think about the data side of things, like what properties you're going to target. Now there's in a way a version 3.0 of it that you have to be doing. You have to be pairing it with whatever predictive component the data has plus your own buy box. Yeah, that makes sense.

[Justin]

It totally does.

[Felipe]

So that way you figured out what are the properties that are more likely to sell at a discount to you.

[Justin]

So when you talk just about the stacking part, just for people who don't know that much about it, if you get a duplicate, what are you stacking it against?

[Felipe]

So we, in a way, what we do is that we consider them data points. So in every single market, there's always going to be a universal properties, let's say a million properties. Then always there's going to be outliers, properties that are too small, too big, that you don't want to be targeting. But from the remaining properties, what you want to be knowing, it's through a ranking system who moves up, down or out of that ranking based on objective data points, let's say pre foreclosure, tax deed, all of that. So when those life events, because you're not looking at life events, you're looking at, I mean, you're not looking at new properties, you're looking at new life events of the owners of these properties. These properties will move up, down or out of the ranking. That's what you're actually doing.

[Justin]

Yeah, and so I do a lot of list stacking for. Because I do a lot of marketing. Now, not everyone's in my shoes. They don't have a spend that I have, and I understand that. But let's maybe even talk to the people that don't have a big marketing spend. They don't necessarily have this 50 grand a month marketing spend. How could they start to use 8020 Rei regardless of what they are doing? Right. Let's talk to that person who's like, hey, I got a couple bucks and I need to be able to be more efficient. Right. So you brought, you brought up the point it comes down to lead flow and then efficiency. Are you actually converting the lead that you brought in?

[Felipe]

Yeah.

[Justin]

So let's talk to the person about like, hey, if you trying to bring in leads, what's the use case for 8020 Rei?

[Felipe]

So full disclosure, our product, it's on the, it's on the premium side.

[Justin]

Sure.

[Felipe]

So it's designed for the professional real estate investor who's already looking at, you know, market domination players. In your case, people doing with marketing budgets.

[Justin]

Yeah.

[Felipe]

You know, 20k plus and then doing 100 plus deals a year. Because what we're seeing is that at that point, when you're playing at that level, at the level you're playing, Justin, you're no longer running a real estate business, you're running a sales and marketing business and real estate becomes like the widget you're trading.

[Justin]

Yeah. For.

[Felipe]

For smaller players. We, while we recommend it's to there's resources out there, I would, I would highly recommend somebody that it's starting in their journey and they want to get more efficient with that to hire a coach.

[Justin]

Yeah.

[Felipe]

And, and also there's other data sources that, that they could get in their backyard so they can start getting those quick wins before they move up and they have a solid budget to do.

[Justin]

Well, you talked about iterating, which I think is a great point. I tell everyone, the people who are going to make it over the next 24 months are going to have to iterate and adapt to what's going on in our world, Right? Absolutely. And if you don't iterate, you essentially die. Right. At some point, your strategy isn't going to work. You guys as a company are iterating. We were just talking offline. You have other components now that you're bringing to light for a lot of the audiences. Let's talk about like the iteration you guys are going through as a company, 8020 Rei that offers other value sets to investors, not just the standard, you know, deliverable from 80, 20, 100%.

[Felipe]

So the up until I would say 2021, at the end of 2021, we used to do the done for you model where we would provide the data and then also do the outbound outreach. Like we even at some point had a cold call center of like about 150 people and, and then of course we, we narrow it down to what was our gold medal Talent which is providing the best data that can, you know, answer the three main questions is like how do I generate more leads that b, I can convert more and then see lower my, my cost per acquisition. And we narrow it down to be the absolute best data provider which we believe, we generally believe we are in our space. And what that led is to a lot of. We're starting to see a need in the marketplace of Bolton services were both part of a boardroom and actually I have my.

[Justin]

I see it's now. Yeah, yeah.

[Felipe]

So one thing that Ken talks about it there, he talks about the bolt on services, the importance of having that. And for us we got crystal clear that what are we really good at, like get a gold medal in it's data. But our clients have a need and of course your audience, for example, even if they're not at a level where they can get a premium data solution yet there's a need in the marketplace. So therefore what we did, we invested in partnerships. In partnerships and we get to. We build businesses with people that we know like trust and they know that they're a players. So one of those partnerships is done for you. Direct mail service DM Force. We also invested in a Salesforce based CRM 8020 CRM which is, it's like the Ferrari of REI CRMs. I mean I get so excited and again, shameless plug. But it's the only CRM that uses native tools.

[Justin]

Yeah, yeah.

[Felipe]

And the one partnership that with invest and it goes regardless of whether you're starting in your journey or you're a professional real estate investors. It's our talent acquisition agency called 8020 recruit.

[Justin]

Okay.

[Felipe]

That specializes in sourcing and pre vetting talent from Latin America.

[Justin]

Yeah.

[Felipe]

Because what happened is that when we shut down the done for you line of service of the. Of the VA so called in the last two, three years, my partner and I, we probably get 10 to 20.

[Justin]

Emails a week wanting it back.

[Felipe]

It's like, hey, you know what, Texting, cold calling, you know, we miss you. Good old days. We want to, we want you guys back. And, and I'm like, no, man, this fucking headache. I don't want to do it. So. But we, we have all the systems in place where we would find that talent in Latin America. So a client can manage that relationship without a markup, without all the gray area of like, oh, you know, I'm paying 10 bucks an hour for somebody that I should be paying six Bucks an hour that's gone.

[Justin]

Yeah.

[Felipe]

Transparent.

[Justin]

What's great. So, I mean, I think the challenge we have is operators who have deal flow is the growth versus scale. Right. And so, you know, Ken's big on scale. I'm big on growth. Right. I want to take someone from 0 or 1 to 10, then we can talk about scale. But the challenge is people are needed throughout the real estate chain and people don't know who to hire, where to hire, what roles to hire. So this really solves a big issue for those people who are growing and getting into the point of scale because of what I just said, like, I'm not a firm believer in treating acquisition people as an outsourced thing. I would want that in house. But if you can have like, what. What is the best use case for your Latin America va, so to speak? Is it more like lead, nurture or development and then it goes over to acquisition? Or what's the best use case? You're saying.

[Felipe]

Yeah, I'm 100% with you on. On that. That the probably the last seed that you will delegate on a real estate operation is the acquisition seat. Because you want to have, depending on your business model, it's how you make money.

[Justin]

Right.

[Felipe]

Yeah. If you're 100% virtual. Yeah. That you can. You could do it a little bit easier. But. But still, it's one thing that we're. And it's a very good book. It's a resource called From D. Martell. It's called Buy Back youk Time.

[Justin]

He was just. He was just with my community last week.

[Felipe]

Nice. Nice. And. And one of the things he talks about is to create the environment, you gotta create the environment. So let's say you're a solopreneur or somebody, that it's actually running a good wholesale business. You're typically like, the owner operator is very good at sales. A maverick. It's like somebody that, you know, like, will thrive on that environment.

[Justin]

Yep.

[Felipe]

But you don't want to be doing the minutia of like, you know, like TC100 or all of that.

[Justin]

You're talking to me. You put me in a sales role. I'm in. Right. You put me on the phone, I'm in. You want me to go do the TC work. You want me to fill out KPI sheet. You want me to do a spreadsheet of I'm out, like, I don't need it.

[Felipe]

You're going to be mentally checked out. But what if. What if you have just a couple of. A handful of key players that Protect your time. And it's an executive assistant that will be like your gatekeeper. Then somebody that it's 1, 2, 3 people, depending on your marketing budget, doing the cold calls and the outreach, a high level lead qualifier, then all you're doing is spending your day in your highest and best user of time, which is selling.

[Justin]

Yeah. I mean that's why it's such a need. So I love that you guys are now is this something you get today? So if they go to82rei.com yeah, there's.

[Felipe]

A, there's going to be a tab and they can even go directly to 8020recruit.com and they will book, they will book a discovery call with one of the guys with Frankie and Manny that are running it. They're.

[Justin]

I mean, so right now if you're in need or looking for some VAs, I'm telling you, 8020 recruit right now, go to 8020 recruit.com yeah, I promise this is going to be a game changer. 8020 recruit.com but, but as a whole, what is 8020 REI now comprise does. If there's someone watching this or listening to this and they say I have these needs. What buckets can you fill for that operator who, whether it's people, whether it's leads, whether it's nurture, whether it's follow up, whether. What buckets do you guys all have now as the whole entity of 80:20.

[Felipe]

So through, through having good data and strategies to go about direct to seller, especially for cold calling, texting and direct mail where we help it's to. On the legion side.

[Justin]

Okay.

[Felipe]

So pretty much anybody that it's a professional investor doing on the low end, 20 to 40 deals a year, who has a marketing spend or budget on the low end, 15 to 20k a month. So it's consistent on the marketing side and they're struggling with a low lead generation or inconsistent lead flow, then we can help.

[Justin]

I think that's everybody. Anyone listening to this, probably you is the reality. Right. I mean even myself. I will make the point where there are months where lead flow is great and then there's months where it's not. There's months where I'm saying, hey, you need to execute. The lead flow is not great for one reason or another. You need to execute better. You need to get deeper in the relationship. So I think everyone ultimately should be reaching out and just figuring out where does your service fit in their business. Right?

[Felipe]

Yeah. Yeah. And, and if not, we'll be happy to direct them to, to a resource whether it's in our network or not. It's just we believe. And again, we're fanatical about the 8020 principle and mold. 8020 and figuring out how can we do more with less, you know, like, how can you know, like. Because we've been there. We've been there. Like, if you're a small player and you don't know where to start, probably I will start by getting the right data.

[Justin]

Yeah, yeah, yeah. So what are you saying? You're on the front lines of our space of real estate investing? I mean, you're seeing a lot, right? The leads. The lead generation lead, nurture, leads follow. I think right now we're in a very pivotal time within the economy. The real estate, the interest, the, the presidential election. Things are. What are you guys seeing being on the front line with 150 clients that are bringing in leads, nurturing leads, contract. Like, what are you seeing right now? Is there, is it challenging? Is it hard? Are the sellers not. Like, give me kind of insight on what you're seeing.

[Felipe]

So the general sentiment. And of course, this is an industry that it's. If I can define our industry in one word, is resiliency. I think that the way that we can adapt to market shifts, it's probably second to none. Way better than other, you know, financial services or whatever. I mean, what do you see on the, what do you see on the, on the news today? Like, we in, in, I think in crypto, they call it FUD, fear, uncertainty and doubt. So you see like 40% less transactions that there's, you know, like the Fed may not cut the rates. There's going to be high inflation and high unemployment. Things are out of control. But guess what, you know, like, people still need a place to live or they need to sell a place. So the players in our industry are going to be able to adapt, to thrive.

[Justin]

What are they doing different? What do you see? The players, your clients. You have 150 of them.

[Felipe]

Yeah.

[Justin]

What do you see them do differently than everyone else out there that you see?

[Felipe]

It's just consistent. It's consistency, it's. They understand that we may be switching from a sellers to a buyer's market. So they constantly are, like you said, you're. You're big into growth versus, versus scaling. There's a time to scale, there's a time to grow. They're, they're growing through, for example, mastering other exit strategies. So with the same marketing budget, let's say they will. When before they would do a wholesale every day of the week. Now Doing novations, doing net listings.

[Justin]

There's, there's things they're adapting and innovating, adapt. And that's what the professionals, that's what your clients, the people who are winning still. Because let's, let's face it, there's a lot of people right now in our space. They're going out of business, they're not making it. And it's because they're not adapting and innovating, they're not doing exit strategies. Right. Like everyone wants to be a wholesaler. Wholesale. I get the appeal. Because you don't need money. Right. You're assigning the contract. You can fix and flip and you can buy rentals with no money.

[Felipe]

That's right.

[Justin]

That's the thing. They just don't know. Novating is great. Right? Net listings, seller financing, there's just options that you can move the needle, that the professionals who understand can do that. Now do you guys help your clients with diversification of the exit strategy or do you leave that up to your clients? Do you say, go get a coach, let them teach you how to do that?

[Felipe]

That's a great question. So while we're not coaches for that, through the data that they get with us, they can remove the emotion out of the decision of their exit strategy.

[Justin]

That's a good point.

[Felipe]

So, for example, let's say in a market where it might be worth going a little bit over going, offer a little bit more, and going into creative strategies, they can get that. But not just shooting from the hip. It's a data driven decision. That's what we help them make. And just of course, in this industry, when, like you said, the smaller players are starting to get weeded out because the barrier of entry was too low, the bigger players are going to not only survive, but they're going to get bigger.

[Justin]

That's right.

[Felipe]

Granted, there's regulations coming and we're all going to have to adapt to those. But the most important part of the adaptation and the data driven decision is that no matter what the market cycle is, they're still going to be able to monetize on the lead.

[Justin]

I tell a lot of my coaching students, obviously I have a coaching program. Some level, it turns into a math equation. Yeah, you don't even need to go beyond like the math of it all. If you bring in 100 leads, you should convert three deals. That's one out of 30. Out of those 30 deals, you should be able to net 20 grand per wholesale, 60 grand for a flip, you know, so then you can just sit there and math, if you can't, because the market is changing. No, bait it. You see that the listings are down, there's not many things listed, there's not much activity on the mls. Put something on lmls. Because to your point, it's a math equation. If you see that listings are down 30% in this market, whatever market we're talking about, then novate it. Get it on the mls because no one has an option to buy anything. There's nothing on the mls. Yeah, it takes the emotion out of it when you actually include math. Math is not my strong suit, but it's a math equation, right? You just say, okay, in some markets, listing there's still not a lot of available, you know, houses. Well, then make it available. Right. Don't make it just a wholesale deal. No, be the damn thing. And you know, by the data, you can see by the data what's going to be the right decision. And so I think, you know, that's really powerful for 8020 to kind of say, guys, looking at your numbers, it looks like these are the better decisions or this is what the problem is. The other part I think that you guys do a really good job at is by highlighting the numbers, you can see where the inefficiencies are.

[Felipe]

Yeah, 100%.

[Justin]

We as business owners, and I even will at times have to look at myself in the mirror on this, like, where's the bottleneck? Where are we not being efficient? Where does it break down? Like, sure, we made a lot of money, but could we even have made more? Or maybe we didn't make a lot of money. Why? Where's the ball getting dropped? Where's the hole sinking? Or where's the hole in the ship where sinking? Talk a little bit about, like that, about understanding just from the data that you guys have from 80 20, how you can create efficiencies for your clients.

[Felipe]

So, okay, that's a very good question. Because one of the things or pillars that we always talk about is that on one hand you have the predictive side of things, the predictive component. And, you know, our algorithm, we believe is superior to our competition. But that's just one pillar. The other one, which is super important. It's. It's your buy box. It's like, what does, what does it make sense for you to buy? Meaning where's your 80, 20? What's that? 20% of zip codes that are going to give you 80% loss of the revenue? And we've done something pretty cool with some of our clients, like, like on the that are high volume clients where we do a market analysis report which pretty much shows how they're performing against their market against other, against the entire competition. Includes institutional players, direct competitors. All of that and what we're finding, and I'm going to use the example here in Miami, we did that analysis with our own wholesale operation and there was two particular zip codes. 331-256-900 parcels created, 260k in revenue.

[Justin]

You remember all this? Yeah.

[Felipe]

So I mean, I have to.

[Justin]

But by the way, that speaks volumes of who you are and how the company is run. Like if you can remember a data search with one of your clients, this specifically, that speaks volumes for you, Felipe and Jesus and the company. So I, I really appreciate that and hopefully the listener can appreciate that as well.

[Felipe]

Yeah, absolutely. I mean that's, I mean we, we got our clients back. I mean like this is like again, data driven decisions. They're removing all the emotion out of it. So going back to that, there's, there's this other zip code that has about 20,000 properties. We generated the same 260k in revenue, but I go like, you know, like I'm, I'm having to send three times more marketing to that zip code to make the same amount of money. Why don't I double down and into three, three one, two, five. And yeah, we picked up three deals in three months.

[Justin]

That's right.

[Felipe]

But that was a data driven decision. I think you live in Pine Crest.

[Justin]

Correct.

[Felipe]

So it's a higher end neighborhood. We took a look and our competition.

[Justin]

Was kicking our ass in that neighborhood.

[Felipe]

In that neighborhood, like 331-73-74.

[Justin]

I don't want to butcher it.

[Felipe]

And I'm like, okay, so why is that happening? Well, they're doing higher end flips and historically we just completely neglected that zip code.

[Justin]

Sure.

[Felipe]

So that's the kind of decisions that you can make once you have the data. And then you just pair it with the, with whatever data points that you get updated monthly with us and you get to the side, you know, like what you're doing historically, like where your deals are happening, tell you where you perform better, what your competition is doing tells you where the opportunity is.

[Justin]

You're saying so many great things. I want everyone to watch this over and over again. Listen to this over and over again. Because what Felipe is talking about is so important. One of the things you just talked about, like, let's just take two zip codes and you're spending the same amount of money in both zip codes. One, you get a 4x return. One, you get a 2x return. But even at 2x, let's just say it's a big number. Let's say it's 100 grand, right? You spend 50 to make 100. So you see the hundred grand, you're like, well, I don't want to give that up. I know it's only 50 grand profit, but it's profit. But the data itself will say you could spend the same 50 and you're going to make 250 grand. In this other zip code, people are so fearful to drop the zip code that only 2x and double into the zip code that 5x. Why do you think that is? I see it all the time with my own students. They get like. But yeah, but this one still made money.

[Felipe]

Yeah, but it's a little bit of fomo. Fear of missing out and fear of the unknown as well. That's why we try. I mean, as humans, we're, we're emotional creatures, so we try to remove as much as we can of the emotion out of the decision and let the numbers talk.

[Justin]

Yeah.

[Felipe]

And. And I would say that this goes for every business.

[Justin]

You know that, right? Like, you guys could take what you guys do and put it into any vertical roofing, siding, gutters, H vac flooring. You have an industry that does focuses on marketing and sales. You guys should be. If you're not already thinking this, maybe you're smirking because you're like, justin, you know too much. You guys should be crystal ball. I do.

[Felipe]

That's.

[Justin]

That's why it's right here. Dog is right here. I'll just tell you, you know, this. What you guys have comprised and what you guys do with the data is every single business, if someone's not even in our space of investing, they need to think, move, act, and treat their business from the data, not the emotion of, I think it's a good idea or I'm scared to let go of this one zip code. No, dude, you 5x in this zip code, let go of this zip code. Go to this zip code, you know, and then.

[Felipe]

Exactly.

[Justin]

And I don't want to speak for you, but as someone who helps people grow their business, I see too often people hold onto the zip code that they only 2x in, but they have three people in an operational cost just to hold this zip code down where you could let go of those three people. I'm not trying to hurt their family. I'm just saying, like, you don't know that. You don't need those people, your operational cost goes down. And you don't need to make much more than that 250 grand from that one zip code. You don't need more to make more. That's the point. People don't understand. I mean, yours not always better.

[Felipe]

To your point, it's just using that example, if you're. If you're keeping those three people in your business, you're also doing them a disservice.

[Justin]

Totally. Yeah. I mean, you're struggling. Your. Your business is struggling. They're struggling to keep their rent paid and whatever else. And the reality is people think bigger is better. They may take a look at me after 17 years or name the person, right. Pace or Jamil, who doesn't matter, and think bigger means better. But you don't understand that, like, specifically, Jamil and I have done this almost 20 years. We have a Runway that most people watching this and listening to do not specific to wholesaling, flipping, and buying rentals. Right?

[Felipe]

Yeah.

[Justin]

And so I make the point to everybody. You need to have a service like 8020 Rei because your efficiencies are off. Bigger isn't better. Make more money with what you already bring in the door and you can. You don't have to grow. You know, you talk about Dan Martell. You literally came in last week and spent an hour with. I should have told you guys to come. He was signing books for my whole community is great. He's an incredible human being. So big shout out Dan Martel. But I say that to you guys to say, like, I would encourage your clients to stay small, not to. Not market more, but you don't need to waste money and go big if you can. She see the data that you guys are delivering to them saying, if you just pour a little bit more into this one little section, your return goes exponentially higher.

[Felipe]

I mean, again, you have a track record, been in the industry for 20 years. And. And you're one of the people that we look up to. That's why we, you know, we connected. And, you know, now it's kind of.

[Justin]

Well, now you're in my world, right? We got Boardroom, we have the podcast. We'll be doing a lot more together.

[Felipe]

That's right. That's right. And I would say to the audience, especially for the ones that are, for example, they're not there yet to leverage the service we offer because it's more on the premium side, on the data side of things, is to one, hire a coach, but be very intentional about the coach that you hire. So for me, as a rule of thumb, every time I'm going to hire a coach is you should only be working with the people that is experiencing the level of success that you're experiencing by the time you want to get there. So let's say somebody wants to be. Get to your level of operation. 100k marketing and solid operation, super good lifestyle business podcast. You see like living the dream.

[Justin]

Yeah.

[Felipe]

In three, six, nine years. Okay. Just reach out and hire that person. Don't hire. Don't hire the guy that. It's. It's making a living coaching and teaching stuff that worked back in, in, in the 90s and not even in the 90s. Like what worked two years ago.

[Justin]

Those strategies not gonna cut it from 2020 to 2022. Those strategies no longer work today.

[Felipe]

Nope. You got to be. You got to be. Always stay current. And then the second thing is, is like you said like scale to get better, not to get bigger. Like, I think in the book what's his name Scaling up says revenue is vanity, profit is sanity, cash flow is king. And it's okay to have a lean operation and have a solid marketing machine and have a few key hires that he can be virtual. Let's say somebody Latin America with our agency or not somebody in house, but not just have people on payroll for the sake of it.

[Justin]

And that is a big thing in our world. Right. Everyone wants the flex. Everyone wants to be like, oh, look at my office. And I have whatever. There is a handful of people, like a handful that can actually run a real operation with a volume of employees that actually nets a good bottom line. There's not many. And I learned this the hard way. Right. There was days where I decided to go for the vanity play and metrics were really high and revenue was really high and staff was really high. And I could show it off. And it looked great on Instagram, but I paid myself 90 grand that year. Multiple millions in the door looked really cool on social media. I made 90 grand personally.

[Felipe]

@ least you made something. So. So that's sure when. But.

[Justin]

But I can tell you that is the world now would rather the vanity metric than actually making real amount of money. And I go the other way and I say, guys, I want you to get rich. Who cares what happens on the Instagram? Because if you're rich, then you're doing really cool things and that looks way cooler. Right? But if you're not rich and you're fighting every day in the trenches because you want to keep this. Vanity metrics of how many people you have in the office and having an office in an a commercial building and all these operational costs, that's actually just not cool. And by the way, it took me going through that to realize it. I had to get through that phase to realize this is not cool. If I'm going to make $2 million, north of $2 million and I paid myself 90 grand, that is not fucking cool. You're not in business to make 90 grand when revenue is at 2 million.

[Felipe]

Percent and, and probably fast forward right now, your bottom line, it's way higher.

[Justin]

39% bottom line margin with a lot less headache. Right. I already lost all my hair, so that part, 100%. My team is small, but it's tight. Right? Like, I have executives who kind of oversee everything from construction to general management to TC to agents and property management. I have the right people in place, but my bottom line stays tight. I don't have eight people filling a role that one person can fill.

[Felipe]

Amen. That's how. That's how it should be.

[Justin]

Guys, Felipe, first of all, this has been great. Is there a very specific place you want everyone to go? First of all, everyone needs to check out 8020 REI, but I know there's, you know, 8020 recruiting is there. Where, where do we want people to kind of find you guys? Right?

[Felipe]

Our, our. You can go into 8020rei.com and it will have a tab for our, you know, like our sister companies as well. DM Force 80 to CRM and 8020 recruit. And if you go there, you're going to book a call, a discovery call, 20 minutes. And I'm running all our discovery calls because I love it. I love connecting with investors. It doesn't matter if you're starting in your journey or if you're, you know, like, you like where you have 20 years of experience. I personally handle all of the, all of those calls and just see how we can be a resource.

[Justin]

Yeah.

[Felipe]

We work or not together.

[Justin]

8020Rei.Com Felipe is here. Jesus is right over here. He's scared of the camera. But guys, this has been an incredible episode. I know I'm going to see you in Boston. Boardroom is an incredible mastermind. You guys are incredible. I vouch 100%. 8020 Rei. Make sure you go there, talk to Felipe. Anyone who's willing to be the business owner, but also stay connected to the clients. Really powerful. So that goes really far. Appreciate you, bro.

[Felipe]

Thank you, man.

[Justin]

If this was helpful at all, please share this with at least two of your friends. I would greatly appreciate it and I look forward to seeing you guys on the next episode with another incredible guest. Peace.

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