Armed with a marketing budget that would make Coca-Cola blush, Nancy Wallace-Laabs and her team were able to canvas the Dallas-Fort Worth metroplex with tens of thousands of top-notch direct mail marketing pieces to land her best deal ever.
OK, that is not entirely true—actually there isn’t really any truth to that, except for the fact that she did use direct mail and they were sent to zips in the greater Dallas-Fort Worth area.
Direct Mail Marketing Campaign Leads to Best Deal Ever
The truth is that Nancy (like many other investors) purchased a list of out-of-state owners’ addresses and sent a very basic homemade yellowcard to the owners. One of her cards ended up in the hands of the wife of the owner, who let her husband gently know that he received another card and that it was time to do something with their house.
And because he was no stranger to the old adage “happy wife, happy life,” he called Nancy about selling his house.
Well, due to great timing and Nancy’s ability to build rapport, she was able to make a site-unseen offer of $10,000 that the owner accepted. Yep, you read that right—$10,000 in Dallas. Now, this property was in pretty rough shape, but Nancy figured for that amount, she could figure out something to do with it.
Since Nancy has many arrows in her quiver, she eventually decided to get creative and not just wholesale it. Instead, she implemented a couple of investment strategies that make this a sweetheart deal.
Financing the Deal
Instead of having to make any repairs or having to get the property ready in any significant fashion, all she did was: sweep up, stick a handwritten sign (I’m sensing a theme here) in the front yard, and listed it on the MLS. After three days of being listed, she had a buyer who was willing to pay $50,000 with the following owner-financing terms: 20 percent down or $10,000 and 10 percent interest on a 15-year amortization.
2. Purchased Inside a Roth IRA
Ordinarily, Nancy pays around $100,000 for a property. Because she was able to get this property at such a discount, she decided to have her Roth IRA purchase the house. Prior to purchasing this property, Nancy and her husband had a retirement account with a balance of $13,000 that was making very minimal returns. Once the property was purchased, it immediately had a value of $34,000; after 15 years of receiving payments, it will have a value of $90,000!
So if you followed that, Nancy now has no money in the deal, resulting in an infinite ROI. To get the whole scoop, check out episode seven of the Best Deal Ever linked above!
Do you have any questions for me about the above deal?
Ask me in the comment section below.