All Forum Posts by: JT Olmstead

At the end of the day all we are really talking about is availability of capital and cost of capital.

Based on your original post I seem to have incorrectly assumed to that availability of capital was your primary issue. If you are not facing any capital constraints on the acquisition side (which for most land businesses is the more Capital intensive part) then the solutions I'm suggesting should be all the better.

With the high margins in this niche, paying 15% or even 20% for Capital that is used for marketing (assuming you can make even a 5x ROAS, and I expect yours is a lot better than that) should be a no-brainer. 

You are looking at making a 500% return on a 20% loan. That's a bet I would take all day.

Now obviously there are lots of other limitations to scaling a business but as far as capital availability goes I would strongly recommend you look at some of these easy to obtain LOC's like AMEX. Depending on your Revenue you can easily get a couple hundred grand pulled together, that can be used for basically anything, at a cost of between 10% and 15%.

Understood. If you're primarily dealing in the sub 25k market then that's going to be below the minimum for many of the lenders I would otherwise recommend.

I assume you've tapped out the easy LOCs with Amex, Quick Books, and Your Regular Bank? Have you explored High Interest options like Blue Vine?

Hey Paul! 

What does your average land deal look like? That will definitely impact the kind of funding that would best fit your model.

I've personally worked with Eric more than once for a Land Loan! I'd definitely connect.

Otherwise, your best bet might be a local or regional bank

The type (and location) matter a lot but as a general trend vacant Land sales have definitely been slowing down as of late.

We have dozens of properties at a time up for sale across multiple states and we spend a healthy amount of money on our Dispo advertising. As of late we've had to work harder than ever dotting every I and crossing every T to ensure we were hitting maximum exposure. Even going full throttle on that front we still haven't been able to fully stave off the decline.

As I confer with different vacant land experts around the country, the story is the same. 

Our current Go-To is Land Vision. Decent Data quality and unlimited records for 1 flat price.

@John Kim

The optimal disposition strategies for vacant land varies by the type of land you're dealing in. What you are facing right now is a common hurdle when the scope is just too wide. The best course of action will be to narrow in on the type of land you want to deal in and then optimize your disposition strategy for that niche.

It's a classic "Jack of all Trades, Master of None" issue.

If you have a specific example in mind you want to share I'm sure we could provide some suggestions.

We do this kind of deal all day long. With 14,000 down it should be a pretty nominal risk of default. 

Be sure you have the tools necessary to manage the loan properly. We place our monthly payment minimum at $350.