Who Else Wants to Make $102,226.02 … On One Single Deal?
How’d you like to make over $100,000 … on just one deal – with only a thousand bucks at risk?
Would you take the rest of the year off?
Quit your job?
Buy a brand new car?
Write a check to your favorite charity?
Or take a vacation?
Don’t know yet what our client, Mr. B, is going to do, but that’s exactly what he just pulled off … so he now has some options!
How did he do it? In a nutshell, he focused on only the highest-impact activities that make the biggest difference. Ever hear of Pareto’s Principle … aka the "80/20 Rule"?
If you haven’t, you really should become as intimately familiar with it as you possibly can … it’s one of the most profound and powerful success principles in existence!
The principle basically states that, for many events and circumstances, roughly 80% of the effects come from 20% of the causes. Go ahead and cross-check that and you’ll find that around …
- 80% of the land is owned by 20% of the people
- 80% of your profits come from 20% of your clients
- 80% of your sales are made by 20% of your sales force
And from a productivity/results-getting standpoint …
- 80% of your results are determined by 20% of your activities!
It’s no different in a real estate investing business. 20% of all the available marketing methods deliver 80% of your leads. 20% of your daily activities deliver 80% of your results. And 20% of your leads deliver 80% of your profits.
So how did Mr. B pull it off? Even though he’s a busy professional with an active social life?
By focusing on the 20% of activities that make the biggest difference!
Plus, he was consistent, persistent, and actually followed through on what he said he was going to do (a HUGE common trait amongst super-successes).
How did he find the deal? By implementing a simple 3-pronged marketing approach that included: direct mail, networking, and bandit signs.
The lead he got was from a direct mail campaign where he targeted absentee landlords, age 60+, who have owned the property at least 8 or more years.
After gathering all the necessary information from the seller, we structured and put together 3 different offers.
Offer #1 was all cash (with the price determined from the formula we went over in the previous article), offer #2 was a ‘seller financing’ option at a higher price, and offer #3 was a lease option offered at an even higher price than #2 (but with a smaller down payment).
This was the best approach because the seller was a bit non-committal and wouldn’t state a price. She just kept telling Mr. B to ‘just make an offer’.
So the great thing about a 3-offer approach is it lets the seller determine what’s most important to them. If they need/want all or most of their cash now, offer 1 is the way to go. If they can afford to wait for their equity or prefer getting a monthly income, offers #2 and #3 make might make more sense.
It’s a great strategy that I’ve found increases the likelihood of your offer getting accepted by 2-3 times.
So after a couple weeks of back and forth (she definitely wanted to sell, but was going through a hectic time in her life), she finally called with her decision.
She wanted to cash out.
So we put the paperwork together, got it signed on both sides, and then kicked off an aggressive marketing action plan.
Within the first week, we had 7 all-cash buyers ready to go and chompin’ at the bit. The only challenge at that point was deciding which buyer to go with.
After the dust settled and all the costs & fees associated with the transaction were accounted for, Mr. B was left with a whopping net profit of $102,226.02 … with only $1k at risk!
And all he did was simply follow “The 6 Steps to Wholesaling Success” that we teach here at InstantInvestor.com.