Featuring Andrew Gardner
$169,000 in 4 months
It’s been Andrew’s lifelong career goal to become a real estate investor. So he networked and joined masterminds. He went full bore into it, with no “Plan B”. He saved up money for marketing. He learned everything he can about direct mail, marketing, and negotating, and launched his massive direct mail campaign in Feb. 2021.
Fast forward to July (and 25,000 pieces later), and he’s made these 5 deals from direct mail alone (That’s not including another prospective 3 that are in the pipeline, and all the other leads he’s working and will eventually turn to deals):
- Deal #1: $22,500 assignment
- Deal #2: $33,000 assignment
- Deal #3: $4,000 assignment
- Deal #4: $70,000 wholetail (under contract, pending)
- Deal #5: Rental – PP $135,000 Rehab $25,000 ARV $210,000 $600 net cashflow (under contract, pending)
Those plus the 3 that are in the pipeline leave him at a $3,500-$4,000 cost per acquisition (one of the most important metrics in mailing)… and it’s NOT including the prospective leads he’s still working.
Not including the 3 deals in the pipeline…
He made a 648% ROI on his money!
Let’s take a look at deal#1 more closely, and put a magnifying glass on how he earned…
This was a single-family-home on a 1.6 acre parcel that had 3 lots. He wholesaled 2 of the lots to a developer and wholesaled the house on it to a flipper.
Teh owner was an absentee landlord who was just tired of owning the property for a number of reasons. It needed tons of work, he was having some issues with the tenant, and really had no interest or business being a landlord. He wanted to pull out his equity so that he could buy himself a little piece of property to settle down on.
He choose Andrew because he was able to get him his asking price of $150k.
The only reason it worked at that price is that Andrew got creative and figured out what the best and highest use of the deal were.
- How many letters sent: 1st deal from a batch of 8,300 custom letters
- The list: A stacked list with multiple things going on: This deal was an absentee owner, lien, tax delinquent, and senior.
- Mailing piece: Custom letter for the first 8,300 letters. The Postcard sequence for the next few batches.
- Total net assignment fee from all 3 wholesales = $22,500
- Cost Per acquisition (taking into account all deals made) = $3,500
- Total ROI (taking into account all deals made) = 648%