With a fast, “go with your gut” approach, Shawn Wolfswinkle was able to find a gem of a property that truly is one of the best deals that we’ve seen.
Shawn owns Texas Turnkey Properties and also owns a property management company. He has 18 staff members, two offices, and manages over 1,300 homes in the greater Houston, Texas, and Albuquerque, N.M., areas. Texas Turnkey Properties takes on the role of building new construction (selling at less than $100 per square foot), while also renovating properties to rent out.
All this to say, Shawn absolutely has a knack for finding the best investment opportunities!
How Shawn Finds Deals
One of the primary ways that Shawn has been able to get a phenomenal ROI with his new construction in the last three-and-a-half years has been by finding great deals on lots and building a large quantity of the same model. (He currently builds around 130 new units per year.)
While finding deals on lots can be tricky, one of the primary ways that Shawn is able to find deals on lots is through aggressive pay per click advertising and direct mail.
Shawn’s Best Deal Ever
One of Shawn’s best deals ever was in a little town called Round Rock, Texas. Shawn heard through a contractor that an elderly woman wanted to sell her home after her son, a developer, said it wasn’t worth anything due to some foundation leveling that needed to be done.
What was incredible, though, was that the owner only wanted land value for her home, which amounted to $20,000—even though the home would likely have appraised for $135,000!
After looking at the property on Google, it almost seemed like the home was too good to be true. That same day, Shawn immediately decided to drive three hours to meet the owner and see the house in person. By doing so, he found out that the house only needed cosmetic work! Everything from taxes to the title were clean.
Shawn was ready to close the deal that evening. Writing a check and signing a warranty deed, the house became his on the spot.
The primary risk involved was that Shawn didn’t opt to have title insurance, but his company had the margins to absorb the cost if this investment didn’t turn out to be what he expected. He figured a potential title issue was worth the risk of potentially losing out on this killer deal—so he still decided to close then and there.
It was only 55 days from the time Shawn got the lead to when he re-sold the home for $165,000. Renovations only took two weeks and cost $25,000. All that was needed was foundation leveling, new lighting, hardware, flooring, paint, and countertops.
How to Apply This Strategy to Your Business
Shawn’s advice for those wanting to do more investing is that hustling and acting quickly is key—or else you’ll get beat.
A book that he goes through with his staff and recommends to others is Relentless: From Good to Great to Unstoppable by Shari Wenk and Tim S. Grover. A theme from the book is that “when you’re in the zone, you don’t think, you just act.” He says that you need to be willing to move and be tenacious to get deals like the one mentioned above.
For anyone wanting to find a better deal, what are some strategies that you’ll start implementing to help you act more quickly?
What’s the best deal you’ve ever found? Questions about Shawn’s story?
Let’s talk below.