$30K millionaire

Guest post by David Shaffer

The term $30,000 millionaire describes a young professional who spends his or her disposable income on items that represent a more expensive lifestyle than what would be expected based on the paycheck. Think of the college graduate who wears designer suits, frequents five-star restaurants, and lives in a swanky high rise; or the young professional who enjoys fine dining and hanging out at the most prestigious clubs nearly every night. They spend money freely on fun, feeling and looking good, withfauxballer-300x201 long term growth investments about as far from their brain as a Volvo station wagon.

The $30,000 millionaire mentality is about looking good and staying mobile — and let me tell you, this lifestyle choice has been a positive driver for the multifamily sector in DFW. The young professional is hoping that he or she becomes a HENRY (high earner not rich yet) soon, and so on …

I just don’t get it! Scott Miller put his house on the market and advertised it on Craig’s List. The media jumped all over it — hate to tell you, old news. I wrote three years ago of a couple who found a home to buy on Craig’s List in North Dallas. They bought the house, gutted it, and it’s already party-ready.

I stopped by Scott’s home last week — just before he and some friends were about to smoke cigars in his “man cave”, pictured here — and he explained his thinking. Scott is a commercial real estate broker who was in Colorado when he ran across this book: “How To Sell Your Home in 5 Days” by Bill Effros. The point: you buzz up the home sale a lot before hand via social marketing and networking and what one might call old fashioned publicity. Then you haul butt to clean it up, show and sell it all within 5 short days. Scott told me last week he wasn’t sure he’d done enough “buzzing” so he wasn’t even sure if he was going to continue with the sale. The point, he told me, was to get at least 25 or 30 people calling you and lined up to bid. He did get some takers, especially when Channel 33 came out and did a story. A guy spending the night at a Dallas hotel (relocating to Dallas) saw the Channel 33 story and bid.

“You’ve got to get it in all the right places in the beginning,” says Scott, who set the asking price at $349,500. DCAD has it appraised at $434,400.

Well, turns out Scott had the sale/auction. 14 people came to tour the house and Sunday he held a round robin phone auction, selling to the highest bidder.

“We called every single person till we got the highest bidder,” says Scott. “They are reviewing the contract with their attorney.”

What was the sales price? Non-disclosed, he says, but —

“Way over asking price. Asking price is just to get people interested.”

If it doesn’t sell this round, Scott says he’ll try again… or maybe call a Realtor.