One Seller, Ten Follow-Ups, $93K in Profit

Brad Kroepfl started real estate investing in 2021 with his wife. It's a side hustle, apart from his many active businesses and careers in sales, powersports, and consulting. His goal in real estate is to create enough passive income to cover their lifestyle. 

His strategy is just as straightforward - live-in flips and rentals. In 2021 alone, he closed 4 off-market deals. Some became rentals. Others funded the next deal.

Brad is an active individual both in powersports, sales, and business and you can find more about how he grows multiple businesses here.

Here's how he how he netted $93,000 in 32 days:

 

The Problem

The seller was an elderly landlord who needed to free up cash form this real estate holdings. He wasn't in a rush to sell to just anyone, he needed someone who would follow through. 

 

The Plan

Brad targeted the seller through an absentee-owner-with-equity list of 2,800 contacts, using a template mailer. 

From one seller, Brad was able to earn himself two deals that'll squeeze out:

• $93,000 in direct net profit
• $106,000 in equity 
• $1,400 (potential) cash flow a month

The seller was an elderly landlord who needed to free up cash from his assets. One of the deals Brad will immediately turn it around and re-sell with no rehab. He closes in less than a week (at the time of this writing), and will have only held it for 32 days. The second deal he'll be converting into a duplex. To do this, he's adding 3 beds, 1 bath, and a kitchen to the basement. The 2 units combined will gross $4,200 a month in rental income.

 

The Numbers

Property #1:

• Purchase price: $340,000
• Rehab: $0
• Re-sale Price: $460,000
• Exit Strategy: Wholetail
• Hold time: 32 days
• Net profit: $93,000

Property #2:

• Purchase price: $440,000
• Rehab: $50,000
• ARV: $650,000
• Strategy: Convert from SFR to Duplex, hold as rental
• Potential Cash Flow: $1,400/month (units gross $4,200/month combined)

 

The Marketing

• The list: Absentee owner w/ equity
• Mailing piece: Template Letter
• The list #: 2,800
• How many touches? 10+ follow up calls/texts

 

The Lesson

Most investors give up on a lead after a couple of unanswered calls. It took Brad almost 1 full year to get this deal. He mailed in February 2021, and finally got contract signed in January 2022. Most people would have quit following up after a couple of months. And if you think about... it's not hard work. He's not breaking pavement, digging holes... he's just making a few phone calls, mailers, text messages, etc.

 

A $93,000 paycheck, with over $100,000 added to his net wealth is not bad for a few phone calls throughout the year. 

 

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