If someone gave you a month to learn land investing

11 Replies

Hello,

  Brand new here. Hello! Long story short, Wife & I were planning to visit her family in Vietnam for entire month of August (cleared my work schedule) but recently learned wife is pregnant and her doctor & CDC do not recommend pregnant females travel to Vietnam due to risk of Zika Virus. We have cancelled the trip. I now have entire month to dig into something that has interested me for while....land investing. 

  So I have been listening to these podcast for past 4 months on land investing (land flipping): 1) The Retipster podcast (Seth Williams)  2) Art of Passive Income Podcast (with Mark Podolsky- Land Geek)  3) The Forever Cash Life Real Estate Investing Podcast (Jack & Michelle). 

It looks like cost for these programs are about or little above $1,000. I don't have real-estate experience, so I would need to learn thru program or on my own crash course on things like: easements, do I need LLC in each state I would buy in, learning to sell on terms (financing), how to close (can I do it myself), how good copy looks for mailings, etc.

   Judging from information above, how would you approach if you had entire month open?

Thanks in advance,

Carl

@Carl Hammill , by the end of a month, you should have at least 100 posts! 

ie. You've now found the right site, so: ask away!

Hint: Imho, land flipping doesn't result in "passive income" or "forever cash"! 

Q. Guess who makes the most money from such courses? [Hint: Not the payers/attenders!]

Welcome to BP. All the best to you and your wife...

Hi @Carl Hammill - welcome to BP!

- Easements: In my opinion - these are important when you encounter a landlocked property (which isn't necessarily a common thing, but it does come up from time to time) and/or if your intent is to somehow develop or subdivide the property yourself (which isn't something I typically do, and 95% of the land flippers I know don't get into this in a big way). It's great to understand how these work and how to identify them, but I wouldn't say it's a necessity in order to get started. I wouldn't feel like you need to be an expert at these before you start making progress.

- LLC: If your intent is to be in the land business long-term, it's a great practice to have one of these in place... but again, I wouldn't say it's an absolute necessity (and frankly, it can add a lot of complications and confusion, especially when you're just getting started and trying to figure out what you're doing). I've seen a lot of people start out buying and selling properties in their personal name, and after they've done a few deals and proven the business model to themselves, THEN they form an LLC (note: this is not legal advice - just an example of what I've seen some people do). In terms of forming one in each state - honestly, I think it's best to get really familiar and find success in one state and then branch out and deal with the added complications of working in multiple states (a lot of laws can change from state-to-state, so again, it'll just add to the confusion if you choose to work all over the country from the very beginning). It's certainly doable, but also a bit harder.

- Seller Financing: It's an awesome way to create monthly cash flow and add financial stability to your operation, but once you decide to get into this realm, you'll have to learn quite a bit about documentation, how the laws work in your state when (not if) people stop paying, how to manage loans and collect payments (among other things). I think it's definitely worth learning about and pursuing if you want more of a "passive" (if you can call it that) income from the business, but it's also one of those things that has some wrinkles to iron out once you get into it.

- Closing In-House: It's definitely possible to close in-house (and when the deals are cheap enough, it may be the only economical way to do it), but it also takes quite a bit of time and work to learn how to do it correctly, to make sure the paperwork is prepared correctly, and then to actually execute it. Again, I think it's definitely worth learning and understanding how it works, but you should also be prepared to go slowly and make sure you're doing everything correctly (and if you're not willing to do this, make sure the deals you pursue have enough value to justify paying a title company to close on your behalf). 

- Mail Copy: You don't need a full-blown course to figure out what to say in your mail pieces. I've got several examples I can show you (PM me and I'll send you a few links). There are a thousand different ways to write your mail pieces, and many of them can work just fine.

Get the first deal done.   Find a county and research it.  Know the prices.  Then you search for the deals.  Most folks do mailing lists to out of town owners and then slice the data from there.   You could find deals on auction sites, ebay, craigslist, etc.   Then sell through some of the same channels.  Contact neighbors.   

One idea that Seth suggested on one of this videos was contacting a developer and ask where he would need lots.   FInd them what they need and get to be known as the guy that can supply them with the deals.  

Best of luck

Joe

Originally posted by @Carl Hammill :

Brent, thank you. Is there specific area I should post land investing questions?

thanks

Carl

Hmm. Couldn't see any Forums specific to land-only. Plenty of individual threads though. Aah - research!

Curious: who has sold you on the idea that land flipping is the easiest way to get your pot of gold?

[Who's selling land for a lot less than the market will bear, and why would someone else give you insider info?]

What makes land-only the "undiscovered secret" towards riches? ie. What about other Real Estate webinars etc?

ie. How is land-only better than other forms of Real Estate investing? I could go on...

@Brent, I think its the best natural fit for me. I am analytical person by nature and from what I have heard on their podcast - land investing is numbers game. You have to mail to thousands and may only get 2%-10% response rate. 

My criteria for getting into any new business venture is following:

1) Can do it from home. I also run business with my wife we started 5 years ago. Very stable customer base but its in female genre I don't particularly enjoy. The land investing would allow me to do both from home.

2) Low entry. Unlike investing in houses, land investing wouldn't require me getting a loan or laying down significant cash. I could enter land investing at my own pace starting with less than 10k. 

3) I literally had over 50 business ideas I wanted to try next. For some reason I immediately identified with owning land...dirt. Maybe it goes back to my college days of working in landscaping during summer and being outside. 

If you think I have this all wrong I am all ears as I am just starting this journey.

Thanks

Carl

I grew up in the land business its an old and tried and true from the original land grants and gold rush days and then colonial lands.. to the Louisiana purchase.. and the mother of all land deals the purchasing of Alaska from Russia..

the concept is dead simple.

1. rural properties that are handed down over time are prime targets.

2. buy for cash

3. sell on terms  500 down 50 a month.

4. do hundreds of them.. 

Bonus is if you can move to larger parcels that may have timber value.

trying to find lots for builders is pretty much a non starter builders find their own lots.. and are not going to over pay.

this is why the guys that do this primariliy are working the deserts of the south west.. high deserts of CA 

rural Texas NM  AZ  so on and so forth.. And of course all the lots in FLA  Lehigh acres being a prime example.

@Jay Hinrichs thank you. I already have area/county I want to target. Chomping at bit to just get started. Does following sound like good approach to start testing:

1. Contact county assessor office for list of delinquent property taxes (don't pay more than $200 for list).

2. Set up basic website

3. Set up phone number

4. send out mailers using click2mail

5. buy few inexpensive lots (to get my feet under me)

6. Testing selling on: craiglist, facebook marketplace, forsalebyowner, zillow

7. close using title company.

If this has any success then:

1. Build better buyer/seller website

2. Set up LLC

3. Learn to construct contracts using terms

4. Start closing myself

5. start building email list, youtube channel

6. Find bigger properties with timber.

Is this path you would go if you started over again with land?

thanks

Carl

Originally posted by @Carl Hammill :

@Jay Hinrichs thank you. I already have area/county I want to target. Chomping at bit to just get started. Does following sound like good approach to start testing:

1. Contact county assessor office for list of delinquent property taxes (don't pay more than $200 for list).

2. Set up basic website

3. Set up phone number

4. send out mailers using click2mail

5. buy few inexpensive lots (to get my feet under me)

6. Testing selling on: craiglist, facebook marketplace, forsalebyowner, zillow

7. close using title company.

If this has any success then:

1. Build better buyer/seller website

2. Set up LLC

3. Learn to construct contracts using terms

4. Start closing myself

5. start building email list, youtube channel

6. Find bigger properties with timber.

Is this path you would go if you started over again with land?

thanks

Carl

that works I get a lot of direct mail since we own a lot of orphan properties in CA..  I don't think many if any actually have websites.

also the properties are too cheap to afford normal closing fees you have to learn how to do your own closings.. not hard.. 

@Jay Hinrichs is right about the closing costs for land.  I bought a piece of land for $2k.  Here is what I got back from the title company on closing costs "Binder is $100, title insurance is $195, recording fee is $27.25 for the deed. Closing fee is $424.63".  Overall, $750 to close on a $2K piece of land.

I went down to the recorder instead and researched the land.  Same owner since the 1960s and nothing else recorded.  The other important thing was making sure the taxes were paid.

At the end of the day - Sold the place for $5500 on payments - $500 down and 10 each $500 payments.  I would do a thousand of these if I could!

Is there a resource we can use to learn about land investing? 

We have a lot of land in Sacramento county and it's outskirts which will be built on eventually. 

Is the strategy basically to buy and hold it until some developer wants to buy it?

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