Putting land Investments to the test

Buying & Selling Real Estate
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Putting land Investments to the test

Mike Alder
Investor · Willoughby, OH · Member since 2014 · 126 posts · 51 votes

What's up BP Fam,

Last night I had the opportunity to interview the land geeks Mark Podolsky. If you are not familiar with Mark, he buys and sells land on financing terms describing it as "the best passive income model there is!"

This certainly sparked my interest and I already own land in Florida that I purchased for next to nothing after the market crashed so I figured I'd put this to the test. I plan on sending out 1500 direct mail letters (100 going out this morning) to Florida land investors to test this strategy. If the results are good I'll diversify into this, if the results are lousy then it is still something I can blog about. Either way I'll share my results here!

Please share your thoughts or experiences with this!

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
11y

@Mike Alder  good luck I grew up in the business.. must watch movie for any land man is Glenn Garry Glen ross... you will see how all these lots you want to buy were created in the first place.

land game dates back to just after the turn of the century  ( not 2000) when promoters went through the US creating mega subdivisions prior to any state or federal land development rules.. so you have all these old tracks and the parcels have been traded for 100 plus years.. lost at tax sale bought by someone like you or my dad.. resold on terms  those folks default or lose to tax's and the cycle repeats.

Florida created massive subdivisions to attract residence's since no one wanted to live in swamps and such.. think Le High and Coral Gables..   Its a fun game.. though no one needs a guru to help them with this  LOL...

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    11y

    @Mike Alder  good luck I grew up in the business.. must watch movie for any land man is Glenn Garry Glen ross... you will see how all these lots you want to buy were created in the first place.

    land game dates back to just after the turn of the century  ( not 2000) when promoters went through the US creating mega subdivisions prior to any state or federal land development rules.. so you have all these old tracks and the parcels have been traded for 100 plus years.. lost at tax sale bought by someone like you or my dad.. resold on terms  those folks default or lose to tax's and the cycle repeats.

    Florida created massive subdivisions to attract residence's since no one wanted to live in swamps and such.. think Le High and Coral Gables..   Its a fun game.. though no one needs a guru to help them with this  LOL...

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
  • Mike Alder
    OP
    Investor · Willoughby, OH · Member since 2014 · 126 posts · 51 votes
    11y

    Hey @Jay Hinrichs,

    Thank for sharing the resources! I'll check out that movie. It's funny you mention LeHigh Acres that was my first land investment after the crash. Are you currently investing in land? If so where at? Thanks

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    11y

    @Mike Alder  just buying infil lots that I can then build on.. I am no longer in the land game per se'  we peaked in the early 80's  sold 800 lots one year... we had offices in LA and SF and bout  30 sales folks working for us.   it was fun

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
  • Mike Alder
    OP
    Investor · Willoughby, OH · Member since 2014 · 126 posts · 51 votes
    11y

    @Jay Hinrichs That is awesome! Thanks for sharing and inspiring!

    0Reply
  • Randon B.
    Appraiser · Austin, TX · Member since 2014 · 162 posts · 19 votes
    10y

    @Mike Alder Hey Mike any results thus far? How was your response rate for the 1500 mailers? My biggest question is valuing the land, also the seller criteria to focus on. It seems that Mark Podolsky focuses on back taxes.

    0Reply
  • Mike Alder
    OP
    Investor · Willoughby, OH · Member since 2014 · 126 posts · 51 votes
    10y

    Hey @Randon B.

    I'm still in the grind phase. I started by marketing for buyers in Florida and it ended up generating more sellers than buyers. A few days ago I tested a new market and got a good response from buyers wanting seller finance deals. I'm now scouting undervalued deals in that area as it looks like they will move fast on financing terms. I will hopefully have an update in a few weeks with my first successful land flip.

    Mark is real big on tax deals because of that I signed up for etaxsales.com to generate leads. I was focusing on Lee County Florida and found very quickly that the properties on that list in that county had taxes owed way higher then I could ever sell the land for but I will put that site to the test in the new county I am working on

    Keep me in the loop if you plan on making land investments as well

    0Reply
  • Nathaniel Cooley
    Real Estate Agent · North Port, FL · Member since 2015 · 2 posts · 2 votes
    10y

    Good Morning Mike,

    I am a Realtor in the Lee, Collier, Charlotte and Sarasota area.  If I can help in anyway please don't hesitate to contact me.  I am very knowledgeable in the SW Florida Market and Tax certificate investing.  I would be happy to give you any advice or ideas on areas to look at when it comes to Tax certificates.  If I can help in anyway connect with me or PM me.

    0Reply
  • Randon B.
    Appraiser · Austin, TX · Member since 2014 · 162 posts · 19 votes
    10y

    @Mike Alder

    Dude this is awesome! when I was reading your response this morning. My office mate Patrick looked over and noticed your name and said ya'll are working on a deal together in Ohio. Small world

    Yes please keep me updated on your progress. I'm mainly looking for property for my wife and I in rural Texas. But I any properties that I come across that don't fit what I'm looking for I'll try and sell on terms. Again the main hurdle in my mind is the due diligence on the property, and comping the properties out. Everything else is just marketing. 

    1Reply
  • Mike Alder
    OP
    Investor · Willoughby, OH · Member since 2014 · 126 posts · 51 votes
    10y

    Hey @Randon B.

    It's crazy how small this world is and how fast we we can connect! I'll keep you in the loop and look forward to catching up soon!

    0Reply
  • Mike Alder
    OP
    Investor · Willoughby, OH · Member since 2014 · 126 posts · 51 votes
    10y

    Hey @Nathaniel Cooley

    I really appreciate your offer! I'll contact you early next week if you are available. I love Florida and would like to hold more performing investments there. Thanks

    0Reply
  • Jonathan Kanner
    Real Estate Agent · Orlando, FL · Member since 2016 · 5 posts · 1 vote
    9y

    Hi Mike 

    Any update on your mailer progress you have been at it for 10 months or so now right? How did it go, how many deals have the mailers produced you so far? Hope your killin it :) 

    0Reply
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