Case Study – “Thief-Deal” Off Direct Mail?

Investor Spotlight

Issue #21

Featuring Drake Johnson

Pressure-Washer-Thief Sells House to Drake

 

Drake Johnson started investing in Feb. 2021. He’s in the CCF Mastermind, and today he does 1-2 deals, with a combination of flipping and wholesaling.

The Seller/Deal(s)

This was an interesting catch.

Drake had mailed a probate list in his market. It resulted in a typical flip acquisition. While rehabbing the property, someone in the neighborhood had tried stealing Drake’s pressure washer from the rehab project. Drake confronted the alleged thief and chatted with him. Turned out the man owned the house down the street, but was seriously behind in mortgage payments, down on his luck, and needed money.

Drake asked him:

“Do you need money? Would you like to sell your house?”

He bought it from him right after that, and it turned out to be a great deal! He will be able to list it as-is at a $72K gross margin.

Drake did have to pay $2,000 for a probate attorney to complete the deal — The seller had inherited the house.

The Marketing

  • How many letters sent: 3,000
  • The list: Pre-probate list
  • Mailing piece: Greeting letter
  • Total deals from this mailer: 1 (but technically two since he bought the “thiefs” house.)
  • Approx. Cost per deal: $4,050

The Numbers

  • P.P.: $78k
  • Rehab cost: $0
  • Other Costs: $2K (attorney)
  • Listed at: $150k
  • Total Gross: $72K
  • Approx. ROI of mailing: 1,902%

 

 

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