10M Model Goal

Where we are today (real numbers)

Last-twelve-months from QuickBooks (read-only pull, 2026-05-23):

• Total income: $1,128,640 — rehab income $725,893 · management fees $154,174 · leasing fees $48,217 · vendor markup $52,943 · wholesale commissions $31,575
• Gross profit: $615,318 (COGS $513,322)
• Net income LTM: $1,890 — the gap to $10M is a margin & scale problem, not a revenue-zero problem

YTD 2026 by class: Construction net +$85,474 · PM net −$79,365 · Trust +$14,676 (live on the home KPIs)

Mike's ranked path to $10M

• #1 Construction / rehab — strongest margins and demand: investors need real physical execution and local boots-on-the-ground; the field-labor shortage supports pricing. Rentals always need repairs, turns, rehabs.
• #2 Sales / acquisitions / deals — big upfront chunks; packaging rental homes for portfolio investors feeds the flywheel (deal → TR manages it → TR rehabs it).
• #3 Property management — financially thin ("thin ice": C/D-class doors at $600–$1,000 rents, price-sensitive owners, heavy headcount) but strategically required: it's the trust/lead/retention platform that feeds the other two lanes.

Strategy: use PM as the lead engine; model the profit engine around high-margin construction capacity plus deal flow.

Best-fit client & current bottleneck

• Ideal client: out-of-state investor building or rehabbing A-class long-term holds. They need trustworthy local expertise; C/D-class "cheap deals" break after real repair costs — TR's advisory value is steering them right before they get hurt.
• #1 bottleneck (Mike): not enough qualified lead generation. Best current channels: Google PPC via PMW + Mike's social content; Jim is the sales/follow-up lane and needs a scheduled meeting/lead-count routine.
• Score down: few-door hands-on owners, owner-supplied vendors, extreme price sensitivity on required work. Exception: credible multi-door commitment into the A-class lane.

Risk ranking (Mike, 2026-05-23)

• 1) Payroll / cash crunch   2) Owner promises   3) Tenant promises   4) Vendor quality
• 5) Reputation   6) Legal / compliance   7) Security

The six engines we're modeling

• Revenue engine — how many leads/deals/doors/jobs $10M requires
• Margin engine — which lines produce the most controllable gross profit
• Capacity engine — people/vendor/system limits and bottlenecks
• Cash engine — collections speed, AP/payroll load, reserves, working capital
• Quality engine — rework, callbacks, complaints, retention
• Decision engine — what Mike approves vs what team/TR can execute

Phases

Phase 1: Foundation ✓

• ✓ PM systems established · core team hired · basic operations documented

Phase 2: Systems & Scale (current)

• ⚡ Automate routine operations; dashboard & reporting (this build)
• ⚡ Unified accounting (trust + operating + owner statements in TR)
• Lead-gen rebuild: PPC + social + Jim's sales routine with tracked source data
• Construction capacity: job count, avg size, margin, cycle time instrumented

Phase 3: Optimization

• Maximize margins by line · expand markets · proprietary technology

Phase 4: $10M Achievement

• $10M annual net profit · fully automated operations · strategic acquisitions

Still needed from the business (open questions)

• Gross margin by line · construction job count/avg size/margins/cycle time · cash timing per lane · team capacity by lane

Source: docs/TEN_MILLION_PROFIT_DISCOVERY.md (living document — TR updates it as Mike answers open questions).