Active land investing is brain damage....

Active land investing is brain damage.

I don’t care how “easy” someone says it is — if you don’t measure the cost on your brain, it will break you.

Here’s the standard I personally require for it to be worth it:

Business maturity: I disappear 2 weeks and it still grows. You need an AM/Sales manager who is self-sufficient and a killer OPs guy/gal for this.
Outbound: 1 deal per ≤60 leads, ≤$3,500 per deal
Inbound: 1 deal per ≤15 leads, ≤$4,500 per deal
Close Rate: 5%-8%(great)
ROAS: 4**–6x** or it’s noise. Fix it before adding a new channel.
Cash Conversion cycle: (**Flips) - <160 days, (Minor subdivides) - <200
Revenue per employee: ~$150k/year
Profit margin: 35%+ under $2M (profit > revenue)
Deal size: $20k+ average, or you will hate your life. Infill lot guys will know the pain of doing $4,000 profit deals. It’s NEVER worth it, despite what a guru in Miami says.
Simple Scales, Fancy Fails: I do one thing incredibly. I flip land in these five states is better than “I flip land, sometimes I do mobile home developments, and entitlements.” Getting really good at ONE thing early helps you reach your goals.
KPIs: Your operational and financial KPIs can be pulled up within 5 minutes of request.