33 Transactions in first full year!

31 Replies

As we start another year I wanted to take a few moments to share my journey this year and hopefully help someone out along the way!

I finally found a niche that I was comfortable with and started buying and selling deals.  Before I know it we had reached December and I had completed 33 transactions.  If you looked at my old blog you can read about a new investor trying to find deals via direct mail. I really wanted to be a flipper.  I probably sent out over 10,000 pieces of direct mail over 24 months and never bought a deal.  It was tough.  You deal with a lot of rejection. I spent two years talking to sellers but never found that great deal.  The market was building momentum month after month and I did not have the guts to put my families nest egg on the line for a house that I did not feel was a great deal.  I also never wanted to be someone who would tie up someones house and not close the deal.  I had a solid team waiting for that great deal, but I never found it.  I did partner on two deals for an equity split, but I was nothing more than a money partner and made about 12%.  But I really wasn't happy with putting up 130,000 to make 15K.  We never had anything go wrong, but I knew that opportunity was always there.

I always loved the idea of direct mail.  Easy to scale all you have to do is spend more money!  While I wasn't buying deals I was building the skills necessary to buy property from people over the phone!  I spent a lot of time listening to most of the podcast on BP.  One that really stuck out to me was Seth Williams and vacant land.  The deals required a low barrier of entry and you can fish in a pond where there are not many people looking.  I sent out my first direct mail campaign for vacant land in Northern California.  I had a few tire kickers but I received a call from a lady in San Francisco who owned 40 acres with no access in Northern California.  She said she knew it was worth 12K but the land had been in her family and she just wanted to get rid of it fast and she wanted 5K.  I wasn't sure if this was even a deal or not.  But I decided to purchase the deal.  After marketing it for 48 hours had the deal sold for 15K.  Basically I made 10K in 14 days on a 5K investment.  I was sold!!

My strategy is to buy land no one wants for .35 on the dollar.  Sell it for cash at .70 or at full market value at 10% interest with seller financing.  I ended up buying 23 pieces of land in 6 months.  I have sold 11 of those.  I also have 7 purchases already in the process that will spit out in January.

I have very aggressive goals for 2016 which is to create 60 notes and sell 20 flips.  I have a marketing machine now and will send out 12,000 pieces of direct mail this year.  I get a ton of deals and can hand select the best ones.  My problem will be running out of money, not deals. From reading the post of many wholesalers on the forum I mail to a great list that you cannot buy.  It takes some time to get the information and in a format so that it is usable.  

I just want to thank everyone who takes time to answer questions.  I have not asked that many but I have spent weeks combing the bigger pockets forums looking for the answers to my questions.

Hoping I can help someone out along the way  I will go in detail about my first 10 transactions on my BP blog.  

Thanks again for all of your help!

Congratulations Mike. Interesting niche. I really think that the same opportunity to buy undervalued land would found in my home town. Thank you for sharing,

Mike,

Never heard someone just going after land! That's a great niche market. I'm sure there are few people who do it and most Owner's probably forget they have it unlike a house which needs constant attention. Do you market the resale to developers? -I'm assuming??

MJ

@Mike T. 

Congrats. It is a great nicke market where it works. Land is actually pricey where we live in NY compared to purchasing property. Maybe buying large pieces of land and separating it into smaller parcels would be a money maker too. 

Great job!  I always like the idea of fishing in a pond where there's not much other competition.  Sounds like you found a great niche.  I'll look forward to reading about your first 10 deals.

That's amazing @Mike T. - congratulations! It sounds like you've had a truly remarkable first year in the land business. I'm totally honored if I played a small part in pointing you in the right direction. You should give yourself a TON of credit for taking the kind of action necessary to cover that much ground in 2015. That's huge!

I look forward to seeing how things pan out for you in 2016. If your past success is any indication, I have a feeling it'll be another great year! :)

Your persistence is Inspiring.  That's the difference between success vs just giving up.  I wonder what your monthly budget is for a campaign of that size?

Great Success Mike T,

Would love to hear more details on how you structure those deals. Are you buying them cash out right? Or via financing? Also, do you purchase these via an LLC or any other legal entity or just personal?

Thanks Mike for sharing.
Regards

Great work, Mike. A previous comment asked about doing business out of state and I had the same question. How did you get comfortable with deals that were nowhere near where you live? The reason I'm asking is that I have an out of state connection who wants to pick up some SFH and rehab them and is asking about my helping to finance some deals.

I only buy vacant land.  If you buy cheap enough i do not see the risk.  I am bot buying huge deals.  All under 15K.  I can pull up google search and look at satellite images.  I would never buy a house site unseen.  But then agin I am sure there are flippers that know a neighborhood very well and when they see an unbelievable deal they snatch it up with out looking at it.

Originally posted by @Mike T. :

As we start another year I wanted to take a few moments to share my journey this year and hopefully help someone out along the way!

I finally found a niche that I was comfortable with and started buying and selling deals.  Before I know it we had reached December and I had completed 33 transactions.  If you looked at my old blog you can read about a new investor trying to find deals via direct mail. I really wanted to be a flipper.  I probably sent out over 10,000 pieces of direct mail over 24 months and never bought a deal.  It was tough.  You deal with a lot of rejection. I spent two years talking to sellers but never found that great deal.  The market was building momentum month after month and I did not have the guts to put my families nest egg on the line for a house that I did not feel was a great deal.  I also never wanted to be someone who would tie up someones house and not close the deal.  I had a solid team waiting for that great deal, but I never found it.  I did partner on two deals for an equity split, but I was nothing more than a money partner and made about 12%.  But I really wasn't happy with putting up 130,000 to make 15K.  We never had anything go wrong, but I knew that opportunity was always there.

I always loved the idea of direct mail.  Easy to scale all you have to do is spend more money!  While I wasn't buying deals I was building the skills necessary to buy property from people over the phone!  I spent a lot of time listening to most of the podcast on BP.  One that really stuck out to me was Seth Williams and vacant land.  The deals required a low barrier of entry and you can fish in a pond where there are not many people looking.  I sent out my first direct mail campaign for vacant land in Northern California.  I had a few tire kickers but I received a call from a lady in San Francisco who owned 40 acres with no access in Northern California.  She said she knew it was worth 12K but the land had been in her family and she just wanted to get rid of it fast and she wanted 5K.  I wasn't sure if this was even a deal or not.  But I decided to purchase the deal.  After marketing it for 48 hours had the deal sold for 15K.  Basically I made 10K in 14 days on a 5K investment.  I was sold!!

My strategy is to buy land no one wants for .35 on the dollar.  Sell it for cash at .70 or at full market value at 10% interest with seller financing.  I ended up buying 23 pieces of land in 6 months.  I have sold 11 of those.  I also have 7 purchases already in the process that will spit out in January.

I have very aggressive goals for 2016 which is to create 60 notes and sell 20 flips.  I have a marketing machine now and will send out 12,000 pieces of direct mail this year.  I get a ton of deals and can hand select the best ones.  My problem will be running out of money, not deals. From reading the post of many wholesalers on the forum I mail to a great list that you cannot buy.  It takes some time to get the information and in a format so that it is usable.  

I just want to thank everyone who takes time to answer questions.  I have not asked that many but I have spent weeks combing the bigger pockets forums looking for the answers to my questions.

Hoping I can help someone out along the way  I will go in detail about my first 10 transactions on my BP blog.  

Thanks again for all of your help!

 It's a wonderful success story Mike, I'm sure it will inspire many of us here. Congrats!!

@Mike T.

Thanks for sharing that! It's great to hear from someone else having success with land!

I had a similar experience after trying traditional methods for almost a year.  I had been reading @Seth Williams blog (retipster.com) for a while and decided to give it a shot.  I copied everything as closely as I could right down to his voicemail script and postcard format... physical mailbox provider... everything, spend a few hundred on a list and postage and... I bought a property for 50 dollars on campaign number one (about 120 postcards).  I think anyone who is just getting started or hasn't really gained a ton of momentum using other methods should read every post on Seth's Blog and decide for yourself... If you don't do this you are doing yourself a big disservice... I haven't found a single source of the kind of free high quality instruction his blog offers on the subject.  Before I switched over to tax delinquent mailers I had only been able to pull of a few marginal wholesale deals.  I made more in my first few months doing land than I did the previous year while targeting sfr's... My mailers average a 10% response rate and that's only counting voicemails as a response... I don't babysit my phone like I did for houses because I'm the only one who sent them a letter... competition is very low.  The time I spent per deal is a fraction of a percent less than what it took me to pull of the wholesale deals... My wife was able to quit her job (mine is next)... I could go on!

That's awesome to hear your story too @Tim Bishop - and thanks for the kind words. 

I remember having a very similar experience when I switched over the land. It was such a refreshing change of pace to go from fighting against hard competition with SFRs (the kind of property everyone and their mother is chasing after) to land (where you're basically the only player in town).

Choosing the right niche really does change the whole game (I probably wouldn't have gotten anywhere if I hadn't figured this out early on). I'm glad you've been able to see this for yourself. :)

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