How To Achieve Real Estate Success with Algebra

By Marcus Vanzant

Marcus Vanzant is a second-generation real estate broker and founder of Marcus & Company Realty in Bradenton, FL.

Did you ever think that algebra would be the key to success in real estate? I know it sounds a bit wild, but hear me out.

This is an equation I came up with some time back, which can guarantee success in your business, real estate, and any other business you have. The equation is:

$ = (L1*V) + (L2*V) + (L3*V) ˣ⁺ʸ

But what do all these numbers and symbols mean? First off, we start with the dollar sign. That’s the money you need to make.

L represents your lead sources. To succeed, you need different types of leads that can effectively convert into clients. It’s crucial to have a mix of leads at every stage of your sales funnel to reach your income goals.

Many agents I speak with struggle to find opportunities, which often means they lack diverse lead sources. Most real estate coaches recommend having three to six different lead sources. You can always add more, but it really depends on how many leads you’re generating.

V stands for conversion. Different types of leads convert at different rates. Take door-knocking, for example; while it’s often recommended, I’m not a big fan—especially in Florida’s heat. It usually takes about 80 doors just to have one meaningful conversation, which is a lot of effort.

So, how many doors do you need to knock to generate enough conversations that convert to clients? Once you determine that, you’ll need to evaluate the conversion rate for each type of lead.

The ˣ⁺ʸ power is the hours and days you need to invest. You’ll know how many hours and days to dedicate depending on how good you are at converting those leads.

Many people enter real estate expecting flexibility, but the reality is that you’re an entrepreneur. This often means working 80 hours to earn a 40-hour income. You need to either put in hard work or find smarter ways to operate.

A common mistake is focusing only on monthly income and asking, “What do I need to cover my bills?” I challenge you to rethink that approach.

Life is full of unexpected expenses—I can attest to that. If you have kids, they’ll need to go to college or get a car someday. And what about your older parents? Are they financially secure, or will you need to assist them? Plus, consider your goals for travel or a new car; all these factors should be included in your financial planning.

By nailing this mathematical approach and truly understanding your numbers, you can succeed in real estate. Gather the right kinds of leads, ensure you have enough, and focus on converting them effectively. Achieving a six-figure income or more in real estate is entirely possible with the right strategy.

I hope this gives you valuable insights and that you find the equation helpful. If you have questions or want to chat, feel free to contact us at (941) 404-8676 or success@marcusandcompanyrealty.com. We’d love to hear from you.