6 figure profit from a yellow letter
I began a wholesale buying campaign with the help (understatement) of Jerry Puckett early this year. We picked an Austin neighborhood and mailed to a list of 1100 high equity and non-resident owners. We sent 3 yellow letters and one post card. I have a few deals in the works, but am posting about one we closed on 3 weeks ago.
9400 SF lot purchased for in the $60sK range. Most lots in the area are closer to half this size. We plan to build two homes on it that sell for at least $250K each. Profit potential is substantial. So no, this deal isn't done and won't be until next year, but it looks very good. Thanks Jerry Puckett and to BiggerPockets for connecting us.
Jon K. that's awesome! I guess I should also thank you for telling me to call Jerry Puckett too...considering we're partnering on this campaign he's working on...and now I'm getting a paid education actually following leads & working deals :)
I LOVE this site. :)
Thanks Guys, Jon K. and Shane Woods.
I too LOVE this site. If it were not for Bigger Pockets, New Refined Images would likely not exist!
Shane Woods I love how you've jumped in and grabbed the bull by the horns. For others trying to get started; follow Shane, he is getting after it. I think I told Jerry the day you and I met that you had what it takes, a determination to do whatever is required to be successful, and a willingness to fully use BiggerPockets to unleash its potential.
@Jon Klaus - just stumbled on this post. Just curious how the deal turned out? Was it as profitable as you had hoped?
Originally posted by @Jacob Forbis:
@Jon Klaus - just stumbled on this post. Just curious how the deal turned out? Was it as profitable as you had hoped?
This deal delayed for numerous reasons, but now is nearing completion. Exit is now looking like $800k because of massive appreciation. Looks like profit may be near $350k.
Wow, that's fantastic! Congratulations!
I'm here in San Antonio, which is a hot market in and of itself, but nothing compared to Austin.
Austin is a great city and I love it, but the traffic kills me!
Wow, congrats!
Jon, I am having problems finding deals. I think the wholesalers are slowing down a bit too. Any advice? Need houses!
@Jon Klaus Awesome to hear about your successes with yellow letters in Austin! Best of luck on the new builds would love to hear about those as well! I am about to start a yellow letter campaign and I love hearing stories from successful investors like you!
Thats kind of a double dip deal there, isn't it? (Hmmmm. can I trademark that? :-)
But seriously, your profit seems like its coming in on the value add of the build.
The real deal is on the lot. Just wondering what you think you would have made if you were to simply try to flip the lot. And how much of that 350k (est profit) is just from the value add of building a house.
Great work, @Jon Klaus !