Wrote this up yesterday but apparently it didn't post. Others have made some same comments, but here are mine:
A) Always do a Google search of the guru(s). (I'll let you determine what you read about these two people). These guys have a thread or two on BP as well.
B) I had a friend who asked me to listen in on this webinar with him. He had listened once and it was done again, and he wanted my opinion.
I had him turn it off about 45 minutes into it when I saw the numbered steps slide. Their "easy" system works something like this:
1) You find vacant lots in high-end residential areas. They want homes in the area to be in the $400k to $1.5 million range.
2) You negotiate the lot price and it must meet this formula - Determine the average market price of a home built on that lot and take 15% of that value. Negotiate the price of the lot to be that 15% amount or less.
So if the average home would be $500,000 then the max price for the lot should be $500k x .15 = $75,000.
3) You get the lot under contract.
4) You submit the deal through their "Deal Genie".
5) If it passes their Deal Genie, then they buy the lot and they give you your money the day they close.
You do realize in step 3 YOU are getting the lot under contract and if the "Deal Genie" rejects the deal, then you have a contract to buy the lot. Cancel the sale and you lose your deposit.
Oh yeah, they breezed over the "language" you put in the contract for a 10 day inspection period. That gives you the time to submit the deal and see if it is accepted. Problem is, I know of few sellers who will accept a contract on dirt with a 10 day "inspection" window.
One other thing - you will be looking long and hard for a lot that you can buy for 15% of market value prices. As an example, below is a screenshot from Trulia.com (ignore the debate on how good are market prices on Trulia & Zillow).
The three prices in the red circles are for lots that are currently listed for sale. All around $165k - $170k. Notice the values of the surrounding homes are in the $650k to $800k range. So let's say average is $650k. That means you have to try and get one of those lots for $97,500.
Now it could be that the those three lots are way overpriced at $170k, but a recent lot sale one block to the east (in yellow outline) that did have some prep work already done (stacked stone bridge over a culvert and the lot was cleared) sold for $225,000 a few months ago.
You will be doing a lot of bird-dogging to find the 15% deals. They said something about 90 days money back for your $1,000 deposit, but you have to have submitted three deals in that time. So if you don't get 3 lots under contract and submit them in that 90 days, you don't get your $1,000.
Don't get me wrong, this could work for people. Do you have the time and confidence you can find at least 3 deals in 90 days?
My Biggerpockets Blog - Lien Online Me