No one likes to hear this, but it takes money to run, manage and (especially) scale a real estate business. Don’t expect to scale any business without having a grip on your finances.
There’s expenses involved every month for marketing and acquisitions, software, phones, internet, CRM, bookkeeping, etc.
When you first started out you most likely saw some bogus advertisement that told you that you could buy houses without any of your own money. While it’s true that you don’t need any of your own money to BUY the house, you DO need money to generate the leads so you can buy the houses!
Same thing applies to managing a company and doing volume deals. It requires cash. it requires discipline. It requires an understanding of what’s involved to accomplish the goals. I can’t give you a dollar amount that you’ll need to scale your business, because that will depend on your objectives and your strategy. But I can definitely tell you that you need money available to execute your scaling plan and you’ll need to make sure that you keep money in the bank to keep the wheels rolling on your machine.
If you’re talking about spending the $1000 you’ve been saving on a marketing campaign, in hopes of closing a deal so that you can then scale your real estate business, you’re not ready for this! By the way, you might be laughing at what I just said, but I hear it ALL THE TIME. People will take their life savings and have faith that a $500 campaign will bring a ROI of $5000. Then they’ll be “set for life”. LOL. NOT GONNA HAPPEN LIKE THAT. Sometimes I spend $5,000 in a month and don’t close a single deal.
Related: What Should I Do First If I’m Going to Automate My Real Estate Business?