When Paying Over Reserve Makes You Money

Even I like to indulge in a bit of television now and then, but the shenanigans on “The Block” always seem to draw me in.

I’ve been on the other side of the cameras and crews when I was a guest judge on “The Renovators” on Channel 10 many years ago (I haven’t aged a day since then either), so I know how the producers can manipulate any story line they want.

Though still, I love seeing how people respond to the auctions at the end of each series.

Auctions are emotionally charged enough (that’s how they get many buyers to pay a premium), though add in the drama of editing, music and effects and no wonder it makes for “must watch” television.

Last year though saw something entirely unique.

The winning team sold their property for an incredible $1m over reserve, only to see the buyer re-sell the property just a few weeks ago for what was right around the original reserve price.

Quick maths… he lost $1m…

Real Estate legend and auctioneer Tom Panos with Adrian Portelli. - When Paying Over Reserve Makes You Money
Real Estate legend and auctioneer Tom Panos with Adrian Portelli: For a bloke who just sold a property for $1m less than he paid, he sure looks happy!

… or did he lose $1m?!?!

I love thinking like a contrarian. It has allowed me to ignore the noise of what other people think I should do and allowed me to listen to experts and mentors who have guided me to the fortunate position I am in today.

But this is next level.

The man who purchased Eliza and Liberty’s 5-bedroom show stopper was actually someone who bid on properties from the series back in 2022, only to be outbid. People thought back then it was a “publicity stunt” and the man bidding, Adrian Portelli had no interest in buying the property anyway, though the 2023 series showed how serious he actually was…

… about not only buying the property, though pulling off a far more epic publicity stunt than people probably imagined.

Adrian Portelli is the mastermind behind the massively successful and rapidly growing business LMCT+.

He had no intention to live in the house. It was only purchased so he could gain exposure and offer it as a prize in one of his raffles.

Fast forward a few months and the winner of the raffle REJECTED the property. Instead opting to take a $2.5m cash prize. So Portelli took the house back to auction, advertised it as a $1 reserve to garnish more media attention (it worked, because even I’m talking about it) and sold for around $1m less than he paid.

Did he get $1m worth of exposure?

Considering the guy would would know exactly what customer acquisition is worth and would have well and truly had a firm grasp of his numbers for all outcomes, I’d say this was playing 4D chess… when everyone else is playing snakes and ladders.

You can read more, see the specific figures and my conclusions in this article we posted on the Your Empire blog.

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