Sold a property for $66,673 net profit in <4 weeks

[Josh Miller]

10 Things I did differently than typical wholesalers

Address: Chandler, AZ 85226
Purchase Price: $132,559.74
Sell Price: $205,000
Hold Time: 1 month
Expenses:
Taxes $ 352
Title (Selling) $ 1,723
Title (buying) $ 1,570
Hard Money Fee $ 1,311
Insurance $ 62
Interest $ 600
Photos $ 150
Total Expenses $ 5,767

Total Profit: $66,673

1. Don't always wholesale. Try wholetailing when it makes sense. This house is in Phoenix so of course, I first tried reaching out to Keyglee. They offered me $140k for the property. A few other investors offered around the same. I knew the house was worth a lot more so I decided to wholetail. Because of this decision, I made $66k instead of $7k. I had zero dollars invested both ways, well worth the one month wait.

2. Buy Sub2. I didn't want to come up with $132k so I purchased the property subject-to the existing loan of $122k. This meant I only had to come up with $11k at closing. Originally I had the house under contract at a lower amount but I paid slightly more so the seller would agree to leave his existing loan in place.

3. Infinite Returns. In order to achieve a truly infinite return. I used a hard money lender to come up with the $11k. (Plus 1 month of interest on the existing loan). This did cost me $1,311 but people often think only wholesalers can buy/sell properties with no money. In fact, you can do an entire flip with no money and I set out to prove it and did.

4. Hire a professional photographer. After closing, I spent $150 on a professional photographer. Worth every penny. If you want to sell for top dollar. Be professional. Even though the house was complete crap and needed a complete remodel, good pictures sell a house.

5. Contact Everyone when selling. I put it on Zillow and sent a text/e-mail/rvm marketing campaign to every single cash buyer, neighbor, and realtor in the area. Marketing is all about sending the right message, to the right person, at the right time. The realtor who ended up responding to my e-mail did not receive my text message or see it on Zillow. It was only the e-mail that worked. The e-mail was also specific to what a realtor wanted to hear, not a cash investor. I would have also put it on the MLS using a flat listing service but there was no need.

6. Consistency is king. The way I got this deal was really the key to everything. It was through consistent marketing. Don't do what everyone else does and just blast everyone once. This specific campaign was targeted at homeowners and the person only responded after receiving a text 6 months after initial marketing started. My initial campaign consisted of Facebook adds along with text/e-mail/RVM/direct mail every 4 weeks.

7. Don't just use standard text messages. Yes texting is hot right now but be creative and use something other than "Hi John, do you own the house at 123 main st?". I like to show what value I can bring to the table. In my text messages, I include videos, photos, emojis, and links to various funnel pages. I provide as much content and value as possible.

8. Automate your marketing. I am technically retired (since May) but this was part of an automated campaign that was going out that I left running for demo purposes. I only accidentally saw the response when looking at my funnel and noticed someone had signed my contract to sell me the house. Automation is key, without it you will either overspend in marketing or kill yourself with the mountain of time and VAs required. Set up a system that automatically sends out text messages (it's the cheapest), followed by ringless Voicemails, followed by e-mails, cold calling, followed by occasional direct mail (i like sending holiday postcards that get noticed). Testimony after testimony will attest that it takes 8+ touches to make a sale and using multiple different types of touches helps all the more.

9. Send the right message. Use different marketing campaigns to your different audiences. If someone is a landlord, hit them with the "tired landlord" special... tired of those tenants, toilets, taxes. If they are a distressed homeowner, hit them with the "financial distress" special.

10. Send it to the right person. People talk about list stacking which I always think is funny. Don't list stack. Point list stack. Think about it. If you have someone that shows up as vacant & absentee (two lists) or probate & tax-delinquent (two lists), which person would you want to market too? Obviously the latter. The only way to do this is to assign a point value to each type of list. That's why this person was on my list.

There you have it. Hopefully one of these 10 items proved helpful.