How to Create New Revenue Streams in Real Estate

**SPEAKER_1** (0:00)
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**Michael Zuber** (0:30)
I have often wondered, why don't real estate investors, real estate agents, brokers, appraisers, people in the real estate business, why don't you own some home services businesses? You are already cutting four and sometimes five-figure checks to these people.
Why not own one? Why not build a portfolio of one? Why not leverage your network to create work and work orders and just sop up all that extra work and income? I believe home services businesses are on the come up, on the takeoff. Beau, what's going on, man? What do you think about this crazy idea?

**SPEAKER_3** (1:11)
I like it. And I never thought I'd own, I'd be a part owner of Tal and Grout Restoration franchise. But I love it because it's like, it sharpens your skills as a leader, as a business owner, as an entrepreneur. And now that I'm in the industry, to a certain degree, I find it very fascinating on how it all works. And really, it's really sharpening my skill sets every single week when we get together with the operator of the business. From meeting with the company that does the lead generation, what's coming in organically, from what is customer acquisition, how much does it cost us to get a customer that actually closes, what is an average ticket, how do we increase the average ticket of a deal, and then really unit economics. When I look at any home service franchise, it's start with a truck and a tech or two, and what's the potential of that truck. In our business, it's somewhere between $22,000 to $28,000 per truck per month of the top line revenue. So we know, in our territories that we own, we probably can have four or five because it's two big territories. So you just do the math there, what's cost of labor, what's cost of good. In our business, our cost of good is very low. So then we have it so dialed in with that third party company we work with, where we can see where the leads are coming from.
We know when we go on a booked appointment, what are our closing percentage, how many, what are we closing when we go and actually do a quote in person? And then we're fine-tuning it, so like building bundles of like, instead of just offering one service line, say, hey, we can do it like this and bundle it, and getting our average ticket, where we think our average ticket should go up.
We're seven months in, it's about $1,100 per job. We feel like we can get it up to $18 to $2,000 per job. As an average ticket, right? So you move that up through learning the business and so forth. What else is really exciting is once you learn the interior, there's an exterior vertical where we do around the pools and stuff. So we haven't even bolted that on yet because we haven't trained our technicians in that. And then the best part though is once we get into the commercial game, the franchise we work with has a partnership with this proprietary sealant for floors, like casinos and things like that, that is going to be a huge average ticket. So I'm really excited to see it because we can do this.
One of my business partners identified a guy in the franchise and he's doing this. He has like, he actually owns, I heard Vegas, he owns like four or five conglomerates nationally, right? And so like, you can really start with one, understand how it builds, and then build a little mini empire. So you might have a location, we have ours in New York, you could have one in Jersey, and these little clusters could each be doing million, two million top line revenue, right?

**Michael Zuber** (4:16)
This is something I've looked at for a while. And again, I have lots of my personal network of real estate investors, flippers, wholesalers, and buy and hold, all of that. Obviously, no bunch of appraisers and bankers and all of that stuff too. But I've often wondered why, like especially flippers, right? Flippers today are having a hard time, right? Rates are higher, demand is down. And I've often wondered why don't flippers kind of spin up their business to really have another income stream, another revenue stream. And again, those home services businesses are actually lead flow, right? Again, a lot of times people come in and want to clean up their house because they're getting ready to sell it.