Featuring Tony Michael
4 deals w/ a 2,500 piece mailer
Tony has been in real estate for almost 4 years in the Clearwater Florida market. He’s primarily flipping, doing 12-15 deals a year but lately has been holding onto big 6-figure deals due to the capital gains tax. He also ventured into the Airbnb space, and owns a lending company.
He said this about his business strategy:
Single-family is my target and it’s all about quality over quantity for me. I’d rather do 5 flips a year and make 100k on each than flip 25 homes a year and make 20k on each. We focus on large exit, SFR’s
This one mailing produced for him 4 deals (this is not the usual case in direct mail — typical cost per deal is usually $2,500-$3,500+ depending on your market). He netted a whopping $337,000 on this and one deal that will cash flow $2,00o a month.
Since all 4 deals are worth mentioning, let’s dive into all of them
- First seller was going into foreclosure and needed an out, and Tony’s mailer landed at the right time. This one took about 6 months of bi-weekly follow-up (texts, phone calls) to finally have her sign
- Second seller sold because the cost of living and her medical conditions made it hard to afford a house payment. The mother was also a decision maker and wanted to sell to us because of our reliability and professionalism.
- Third deal too 7 hours to lock up. The seller was going to lose the house in 2 weeks and had already gone through a failed MLS listing. The gentleman was a prior marine and resonated with me being on active duty — Shows how much rapport matters for closing deals.
- Fourth seller turned out to be a retail referral that Tony sent over to his Realtor contact. Tony made $1,000 on a “marketing/referral” fee.
Tony found these motivated sellers using handwritten direct mail…
Here’s what sellers said about why they called Tony (in some form or another):
“I receive so many mailers to buy our home over the years but appreciated that you took time to “hand write” me a letter rather than send me a scripted one.”
- How many letters sent: 2,500
- The list: High equity, Less than 500k current value , At least 30% equity , Single Family, Min 2 bed 1 bath, Built after 1960.
- Mailing piece: The limited edition Summer Mailers
- Total net: $337,000
- Deal break down:
- Net $33k and sold in 41 days. Zero rehab.
- A full rehab gut cost $45k. Will net $88k.
- Homerun deal that will net $215k:
- PP= $115k;
- Rehab = $15k;
- Appraised for $330K.
- Corporate rental cash flow = $2k a month.
- A $1k referral fee.
- Cost Per Acquisition: approx. $906 (Again, this is not typical. We see a CPA of $2,500-$3,500+)
- Total ROI (taking into account all deals made in 1 mailing and a 6-month timeline) = 1,354%
(here’s proof of that ROI):