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Podcast Hard Money Lenders Books Washington
BlogArrowReal Estate Deal Analysis & AdviceArrowBest Deal Ever Show: Buying Land at Pennies on the Dollar
Real Estate Deal Analysis & Advice Jul 27, 2020

Best Deal Ever Show: Buying Land at Pennies on the Dollar

Ken Corsini
Expertise: Real Estate Investing Basics, Landlording & Rental Properties, Real Estate News & Commentary, Mortgages & Creative Financing, Real Estate Wholesaling, Personal Development, Flipping Houses, Business Management, Real Estate Deal Analysis & Advice
190 Articles Written
Aerial View Of Green Forest Landscape. Top View From High Attitude In Summer Evening. Small Marsh Bog In Coniferous Forest. Drone View. Bird's Eye View.

In this episode, we talk with Jack Bosch from Phoenix, Arizona. Jack is originally from Germany but moved here to get his college degree. After graduating, he got a job at a software company, which allowed him to get his green card and stay in the states.

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Five-and-a-half years later, he transitioned to real estate investing and has since become known as “the land guy” in real estate. Jack started out doing deals in Phoenix and now does deals from Florida to Hawaii to Texas—and all over the country.

Flipping Land for Profit

Jack's business model is land-flipping. They do wholesaling, and seller financing (his favorite method) in the $10K-$100K range. They do about 80% of their deals this way.

His model is simple: He finds people who have been sitting on land for 20 to 25 years and are willing to sell it for literally $.05 to $.25 per dollar. A lot of times his purchase price is completely recovered by the down payment he gets when he sells the property… then they get straight cash flow from the monthly payment.

Related: Best Deal Ever Show: The Marketplace Landlords Are Using to DOUBLE Their Rental Income

Being that it’s land, they don’t have to worry about other expenses, like repairs, maintenance, etc. And the best part is that there’s no competition.

He says that with land deals, finding a seller is easy. In fact, they get up to a 14% response rate on their direct mail! While finding the deals is easy, the challenge in this model is finding the buyer willing to purchase via owner finance. They never sell their notes—unless the buyer decides to build on the land. Jack says it's great cash flow, and when the market crashed years ago, they had over $70K a month of residual income coming in from these notes. That amount of cash flow allowed them to invest in 50 rental houses, which have since tripled in value.

Related: Best Deal Ever Show: Facebook Ad to Beach House Home Run

This Investor’s Best Deal Ever

 Jack’s best deal ever was a one-acre lot he bought on top of a hill in Prescott, Arizona—one of the top 50 retirement places in the U.S. The lead came from a direct mail campaign. When they inspected the property, they couldn’t believe the amazing views this property had.

The seller loved the property but was motivated to sell for sentimental reasons after his mother passed away. Jack ended up purchasing the property for $1,850 and sold it two weeks later for a whopping $86,000 at a land auction!

That’s right, Jack used to do land auctions, selling up to 80 properties every quarter throughout the year. This particular property stirred up a bidding war and ended up netting Jack some serious profit!

Of course, as was typically the case with the properties they sold, it was marketed with an owner financing option. The buyer ended up putting $17,000 down ($15K more than what Jack paid for it!) and signed onto a 12.9% interest loan on a 15-year amortization. Jack was collecting $850/month in straight profit from this deal!

Amazingly, two years into the financing, the buyer actually stopped making payments. You’d think this was bad news, right? No way—Jack simply took the property back and resold the land a second time for $86,000 and is still getting cash flow to this day.

Deal by the Numbers

  • Purchase: $1,850
  • Sold: $86K twice!
  • PROFIT = Over $120K when it’s all said and done

Advice for Other Investors

Seller financing is a tremendous way to build stable, residual income over a long period of time.

What was your best deal ever or the best deal you’ve ever heard about?
Share in the comment section below. 
By Ken Corsini
Ken Corsini is a seasoned real estate investor and business owner based in Woodstock, Georgia. Ken is best known for his role on HGTV’s hit show “Flip or Flop Atlanta,” and has flipped over 800 hou...
Read more
Ken Corsini is a seasoned real estate investor and business owner based in Woodstock, Georgia. Ken is best known for his role on HGTV’s hit show “Flip or Flop Atlanta,” and has flipped over 800 houses in Metro Atlanta since 2005. With over 15 years of experience in the real estate industry, Ken has expanded his original flipping business into multiple independent real estate businesses, including Red Barn Real Estate, with over 180 agents in Metro Atlanta across four offices; Red Barn Construction, a custom home-building company specializing in modern farmhouses across North Atlanta; Red Barn Renovations, a full-service renovation company; Black Oak Mortgage, a direct lending company based in Woodstock, Georgia; and InvestorSumo, a technology company focusing on CRM and data needs for real estate investors.
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8 Replies
    Aaron Bryson from Global
    Replied 6 months ago
    That is interesting. I can't beleive he bought it that cheap. Buying land for 5%-25% of the value seems unlikely, but you only need a few good deals to make the juice worth the squeeze. Regarding contracts for seller financing of land, is that just down through a local attorney? Do these tenants that are financing in this way begin any kind of construction on the land? What changes are they allowed to make to the land? What happens to any structures they built if they are no longer able to pay?

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    Na Ortega
    Replied 6 months ago
    I hear him saying he flipped one piece of land and made a nice profit within two weeks after purchase. Please help me understand as I am new to Land flipping. When purchasing Land let say through a county auction for example you receive the deed from the county within a few weeks, don't you need to do the Quiet Title Action in order to sell which may take a few more weeks? Am I missing something? Please help! Thank you so much
    Raul Flores Investor from Houston, Texas
    Replied 6 months ago
    I was thinking the same, I bought a land last year, took me three weeks or more to get the title, this week I got a buyer and I am selling the land, still waiting for the survey, etc, etc and will take some weeks too. Do you still sell it without the title on hand ?

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    Sylvia B. New to Real Estate from Savannah, Ga
    Replied 6 months ago
    Way to go!!! While reading Rich Dad, Poor Dad, the author mentioned how he did an owner’s finance....my mouth dropped! Really?! Such a great idea!

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    Michael Colebank Rental Property Investor from Flemington WV
    Replied 6 months ago
    I thought about doing this with houses, but was told Dodd/ Frank was a problem. Does this not apply to land sales?

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    Taimour Khan
    Replied 6 months ago
    I don't understand why a buyer would want to buy the land if they aren't allowed to build on it. Are they buying this land and using it for other things? Also why would the buyer not want to seek out other types of financing? What is making these kinds of deals so attractive to buyers?
    Vaughn K. from Coeur d'Alene, ID
    Replied 5 months ago
    Depending on the type of property it's called "recreational land" my friend! Imagine you buy 10 or 20 acres of beautiful forest land in the mountains... You now own your own private camp ground. In many areas that, or something smaller but still cool, could cost only several thousand bucks, $10-20K, or whatever. So you just have it because it's cool to go camp or hunt on your own land.

    The reason people finance like this is the same reason people do hard money: They either have credit issues and can't get a loan, or the property isn't easy to finance even though they have decent credit. Getting raw land financed by banks is actually surprisingly tough. No public road, utilities, etc? Banks really don't like that stuff. Local banks with local knowledge will do it, and private money guys too, but their rates are often fairly high anyway, so many just stick with owner financing. It's very common on raw land specifically because financing is tough.

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    Bill Wilson from Longview, Texas
    Replied 6 months ago
    The buyer can do whatever they want with the property. Banks may refuse to lend money for new construction on property financed by the owner unless the balance due on the property is paid off in full. That can be done if the bank rolls in that cost with the construction loan.

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