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

Episode Date: September 20, 2024

BOOK YOUR DISCOVERY CALL WITH 8020 REI TODAY! Go to - https://8020rei.com/schedule-demo/---In this episode, Justin welcomes Felipe, co-founder of 8020 REI, to discuss how real estate investors can double their lead flow without increasing marketing costs by leveraging data and optimizing marketing strategies. Philippe explains the importance of data-driven decision-making, sharing insights on techniques like list stacking and segmentation, as well as strategies to improve lead conversion and lower acquisition costs. They also explore how 8020 REI provides premium services, such as talent acquisition from Latin America and cutting-edge CRM tools, to help investors maximize their efficiency and scale their businesses. Whether you're a seasoned investor or just starting out, this episode offers actionable strategies for thriving in today’s market.---The #1 training and coaching system to launch, grow, and scale your investing business! 𝐋𝐞𝐚𝐫𝐧𝐌𝐨𝐫𝐞: http://www.thescienceofflipping.com Turn cold real estate leads into engaged motivated sellers on auto-pilot using the power of A.I! 𝐋𝐞𝐚𝐫𝐧𝐌𝐨𝐫𝐞: https://www.rocketly.ai/ Have a question? Ask me anything at https://www.askjustin.ai/  𝐀𝐛𝐨𝐮𝐭𝐉𝐮𝐬𝐭𝐢𝐧: After graduating from UCLA in 2003 with an English degree, Justin went directly into business for himself. He has never had a W-2 job. In 2005 he got into real estate by co-founding a brokerage in the Northern California area. Quickly he realized that being a realtor was not for him. In 2007 he got into real estate investing full time. 16 years later, Justin has flipped well over 2600 properties, accumulated millions in rental properties, and is an active investor to this day. His success in real estate led him to start The Science Of Flipping podcast and education company, where he has coached and mentored over one thousand aspiring and active investors.  He is a nationally recognized speaker and is on a mission to educate as many people as possible on becoming a successful dynamic real estate investor.  𝑾𝒉𝒂𝒕𝒕𝒉𝒆𝑷𝒓𝒐𝒔𝑯𝒂𝒗𝒆𝑻𝒐𝑺𝒂𝒚𝑨𝒃𝒐𝒖𝒕𝑱𝒖𝒔𝒕𝒊𝒏:  “Justin is one of the best trainers in this space. He really gives everything to his tribe.” – Brent Daniels (TTP)  “Justin’s ability to connect with people and help them understand what he is teaching, is unparallelled” – Kent Clothier (REWW)  “We have been in the trenches flipping homes in Phoenix for over a decade, he is one of the best to do it.” – Sean Terry (Flip2Freedom)    Subscribe To Justin Colby: http://youtube.com/justincolbyView All My Videos: https://www.youtube.com/c/JustinColby    

It's the only CRM that uses like native tool. Yeah, yeah. And the one partnership that 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. 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 20 emails a week. Wanting it back. 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. 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 8020 founder, 8020 REI founder, Felipe is in the house. What's up, dude? Thanks for having me, man. Man, I'm excited about this because as someone who spends, you know, close to six figures a month on marketing myself, it 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 80-20 REI found the secret to be able to double lead flow without having to spend more money? 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 do you do it? You should do a product with this. And really, 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. 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 it's to help them get a better roi from their outbound channels without spending more so they can make better marketing decisions i like that a lot so as 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 80-20 REI, what was the problem you were ultimately trying to solve? Because I myself have done something very similar where I had a problem in my own business. I created a solution that turned into Rocketly, right? So what was the problem? And then how did 80-20 REI, as we know it, fix that for you? So when we first started wholesaling, 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. And we were bootstrapping you know smaller players like we just figured out like okay we're fanatical about the pareto law the 80 20 principle yeah so it's like okay how do we get more with less okay and then when it wasn't even a thing the whole concept of list tagging my partner jesus uh he started figuring out hey instead of just removing duplicates, let's just stack them. And then that worked out for us really well because we ended up getting deals with little to no competition when nobody else was doing.

But just like any industry, what got you here won't get you there. That's right. So there's iterations to it. So I 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. Does that make sense? It totally does. So that way you figured out what are the properties that are more likely to sell at a discount to you. 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? 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. 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 80-20 REI regardless of what they are doing? 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? Yeah. So let's talk to the person about like, Hey, if you're trying to bring in leads, what's the use case for 80, 20 REI? So full disclosure, uh, our product it's on the, it's on the premium side. Sure. So it's designed for the professional real estate investor

who's already looking at market domination. In your case, people doing with marketing budgets of $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 the widget you're yeah trading yeah for for smaller players we um what we recommend it's to, there's resources out there. I would highly recommend somebody that is starting in their journey and they want to get more efficient with that to hire a coach.

Yeah. And also there's other data sources that they could get in their backyard so they can start getting those quick wins before they move up and and they have a solid budget to do well you talked about iterating which i think is a great point i tell everyone that 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 and if you don't iterate you essentially die right at some point your strategy isn't going to work you guys as 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, 80-20 REI,

that offers other value sets to investors, not just the standard deliverable from 80 20 100 so the up until i would say 2021 at the end of 2021 we used to do the the done for you model where we would provide the data and then also do the 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 answer the three main questions. It's like, how do I generate more leads that B, I can convert more and then C, lower 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.

Yep. And what that led is to a lot of, we started to see a need in the marketplace of Bolton services. We're both part of a boardroom. Yep. And actually I have my ISD. It's both part of a boardroom. Yep. And actually I have my... I see it now. Yeah, yeah. 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 like native tools. Yeah, yeah. And the one partnership that we've invested, and it goes, regardless of whether you're starting in your journey or you're

a professional real estate investor it's our talent acquisition agency called 8020 Recruit that specializes in sourcing and pre-vetting talent from Latin America because 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 20 emails a week. Wanting it back. It's like, hey, you know what? Texting, cold calling, you know, we miss the good old days we want to we want you guys back and and i'm like no man that's fucking headache i don't want to do it so but we we have all the systems in place where we would uh find that talent in latin america so a client can manage that relationship without a markup without all the 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. Yeah. Well, that's great. So, I mean, I think the challenge we have as operators who have deal flow is the growth versus scale. Right. And so, you know, Kent's big on scale. I'm big on growth, right? I want to take someone from zero or one 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 outsource thing. I would want that in-house, but if you can have like, 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 seeing? Yeah, I'm 100% with you on that,

that probably the last seat 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, right? Yeah. If you're 100% virtual, yeah, that you can, you could do it a little bit easier, but, but still it's, uh, um, one thing that we're, and it's a very good book. It's a resource called, um, from Dan Martell. It's called buy back your time.

He was just, he was just with my community last week. Nice. Nice. Nice, nice. And one of the things he talks about is to create the environment. You got to 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. Yep. But you don't want to be doing the fucking minutia of like, you know, like TC. 100%. Or all of that. 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 a KPI sheet? You want me to do a spreadsheet of – I'm out. Like want me to go do the TC work? You want me to fill out a KPI sheet? You want me to do a spreadsheet of... I'm out. I don't need it. You're going to be mentally checked out, but what if you have

just a handful of key players that protect your time? An executive assistant that will be like your gatekeeper. Then somebody that it's one, two, three 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 use of your time, which is selling. Yeah. I mean, that's why it's such a need.

So I love that you guys are now, is this something you can get today? So if they go to 8020REI.com. Yeah, there's going to be a tab, and they can even go directly to 8020recruit.com, and they will book a discovery call with one of the guys, with Frankie and Manny, that are running it. So right now, if you're in need or looking for some VAs, I'm telling you, 8020recruit right now. Go to 8020recruit.com. Yeah. I promise this is going to be a, go to 8020recruit.com. I promise this is going to be a game changer, 8020recruit.com. But as a whole, what is 8020 REI now comprised of?

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, what buckets do you guys all have now as the whole entity of 8020 REI? So through having good data and strategies to go about direct to seller, especially for and direct mail. Where we help, it's on the legion side. Okay. So pretty much anybody that is 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. 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? Yeah. And if not, we'll be happy to direct them to a resource, whether it's in our network or not. It's just we believe, and again, we're fanatical about the 80-20 principle. Sure, and mold 80-20 REI. And figuring out how can we do more with less? You know, like how can, you know, like because we've less? Because we've been there. If you're a small player and you don't

know where to start, probably I will start by getting the right data. Yeah. Yeah, yeah. So what are you seeing? 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, lead follow. I think right now we're in a very pivotal time within the economy, the real estate, the interest, 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 an insight on what you're seeing. So the general sentiment, and of course, this is an industry that it's, if I can define

our industry in one word, it's resiliency. It's like, I think that the way that we can adapt to market shifts is, it's probably second to none. Yeah. 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,

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. What are they doing different? What do you see the players, your clients, you have 150 of them. Yeah. What do you see them do differently than everyone else out there that you see? It's just consistent. It's consistency. They understand that we may be switching from a seller's to a

buyer's market. So they constantly are, like you said, you're big into growth versus scaling. There's a time to scale, there's a time to grow. 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 it's doing innovation, doing net listings. There's things. They're adapting and innovating. Adapting. And that's what the professionals, that's what your clients, the people who are winning still,

because 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, 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. That's right. 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? 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. That's a good point. So for example, let's say in a market where it might be worth going a little bit over, going over 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, 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. That's right. 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 leap. I tell a lot of my coaching students, obviously I have a coaching program. At 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, novate 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 the MLS 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. 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. Noviate 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. Yeah, 100%. 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's sinking? Talk a little bit about like that, about understanding just from the data that you guys have from 8020, how you can create efficiencies for your clients? 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 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% plus of the revenue? And we've done something pretty cool with some of our clients that are high volume clients where we do a market analysis report, which pretty much shows how they're performing against their market, 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, 33125, 6900 parcels, created 260K in revenue. You remember all this? Yeah. So, I mean, I have to. 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 really appreciate that. And hopefully, the listener can appreciate that as well. Yeah, absolutely. I mean, that's, I mean, we got our clients back. I mean, like this is, again, data-driven decisions. They're removing all the emotion out of it. So going back to that, there's this other zip code that has about 20,000 properties. We generated the same 260K in revenue.

But I go like, what? You know, like 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 into 33125? And yeah, we picked up three deals in three months. That's right. But that was a data-driven decision. I think you live in Pinecrest. Correct. So it's a higher-end neighborhood. We took a look, and our competition was kicking our ass. In that neighborhood? In that neighborhood, like 33173 or 74. I don't want to put trade.

And I'm like, okay, so why is that happening? Well, they're doing higher-end flips, and, you know, like, historically, we just completely neglected that zip code. Sure. 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. 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 100 grand, you're like, well, I don't wanna 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 gonna 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, well, yeah, but this one still made money. Yeah, but it's a little bit of formal fear of missing out and fear of the unknown as well. That's why we try, I mean, as humans, 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. Yeah. And I would say that. This goes for every business. You know that, right? Like you guys could take what you guys do

and put it into any vertical roofing, siding gutters, HVAC flooring. You have an industry that does focuses on marketing and sales. You guys should be, if you're not already thinking of this, maybe you're smirking. Cause you're like, Justin, you know, too much. You guys should be going. I do. That's that's why it's right here, dog. It's 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 five axed in this zip code. Let go of this one zip code no dude you five x'd in this zip code let go of this zip code go to this zip code you know and then exactly and I don't want to speak for you but as someone who helps people grow their business I see too often people hold on to the zip code that they only two x'd 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 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. The more is not always better. 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. 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 Jamel, it doesn't matter. And

think bigger means better, but you don't understand that like specifically Jamel 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. 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 don't have to grow.

You talk about Dan Martell. He 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. It was great. He's an incredible human being. So big shout out Dan Martell. But I say that to you guys to say, 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 see the data that you guys are delivering to them saying, you just pour a little bit more

to this one little section, your return goes exponentially higher. I mean, again, you have a track record of being in the industry for 20 years and you're one of the people that we look up to. That's why we connected and now it's kind of- Well, now you're in my world, right? We got boardroom, we have the podcast, we'll be doing a lot more together. That's right. That's why we, you know, we connected and, you know, now it's kind of. Well, now you're in my world, right? We got boardroom. We have the podcast. We'll be doing a lot more together. 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, a hundred K marketing and solid operation, super good lifestyle business, podcast. You see like living the dream in three, six, nine years. Okay, just fucking reach out and hire that person.

Don't hire the guy that it's making a living coaching and teaching stuff that worked back in the 90s and not even in the 90s. Like what worked two years ago, those strategies, not going to cut it. From 2020 to 2022, those strategies no longer work today. 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. 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 or or not somebody in house but not just have people on payroll for the sake of it and that is a big thing in our world right everyone wants the flex everyone wants to be 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. 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. At least you made something. So that's a win. 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 fucking rich.

Who cares what happens on 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-plus 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. Absolutely. 100%. And probably fast forward right now, your bottom line, it's way higher. 39% bottom line margin at this point. 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. Amen. That's how it should be. 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 8020 recruiting. Is there, where do we want people to kind of find you guys right now? You can go into 8020REI.com, and it will have a tab for our sister companies as well, DM Force, 80-20 CRM, and 80-20 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 the calls and, and just see how we can be a resource. whether we work or not together. 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%. 8020REI. 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. Thank you, man. 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.