Real estate is a numbers game. But it’s possible you’ve fallen into the trap of looking at the wrong numbers. I know I once did.

Years ago, when I was a principal, I thought the key to success was sales, sales and more sales. Then one day, though, it hit me like a brick in the back of the head: it’s not what you make, it’s what you keep that counts.

Let me run two scenarios by you, and you tell me which sounds better:

• Scenario 1: You make $100 in sales, but you pay out $85 in costs, (rent and other expenses), leaving you with $15.
• Scenario 2: You make $90 in sales, but your costs are $60, leaving you with $30

Real estate is a numbers game. But it’s possible you’ve fallen into the trap of looking at the wrong numbers. I know I once did.

Years ago, when I was a principal, I thought the key to success was sales, sales and more sales. Then one day, though, it hit me like a brick in the back of the head: it’s not what you make, it’s what you keep that counts.

Let me run two scenarios by you, and you tell me which sounds better:

• Scenario 1: You make $100 in sales, but you pay out $85 in costs, (rent and other expenses), leaving you with $15.
• Scenario 2: You make $90 in sales, but your costs are $60, leaving you with $30