I have helped people get rid of that sick feeling in their stomach that comes along with living paycheck to paycheck. I’ve been able to teach people how to successfully buy and sell land, and create a passive income.*
Even in the worst real estate market since the Great Depression, the housing market crash of 2008, my land investing blueprint was, and is still very effective. Even in terrible years for land and for the economy overall, I’ve still made a high six figure income.
When I first started out in this business, my parents were mortified that I was taking on all this risk! “You quit your job, and you’re working out of your house full time?” They asked with petrified looks on their faces! “How will you afford the mortgage? Or life Insurance? Or baby food?!” They thought I should follow conventional wisdom – get a job for a big company and retire at 65.
When they saw how I was bringing in more and more money each month, and how I was building up a very impressive savings account… They wanted to learn what I was doing! I even put my parents’ money into a few deals so they could share in the profits!
My first mentor, Raj, is the main reason I had the courage to quit my job and pursue land investing full time. We worked together appraising and brokering dental practices, and Raj taught me one of the most important concepts I’ve ever learned – which is that dentists, doctors, chiropractors and most people in the business world are afflicted with a disease that I like to call solo economic dependency.
What is Solo Economic Dependency?
It means that if you’re not working, you’re NOT making money.
For example, if a dentist doesn’t keep busy fixing people’s teeth, he has no other way of generating income to pay overhead and make a profit. The same problem exists for every freelancer and everyone else who is in a position where if they’re not working they’re not getting paid. They are completely dependent on a job or their own labor to generate income. This really takes a toll on people over time. It really beats them down.
I saw this happening to dentists when I was working with Raj. As an outsider looking in, it appeared to me that most dentists were working for their staff and suppliers, and not the other way around. It was stifling their potential.
After witnessing the pain people were in, Raj and I would dream about the perfect business. We reasoned that the perfect business would have a few essential characteristics:
- No physical inventory
- A one-time sale and then recurring revenue
- Built-in incentive for the customer to continue paying for the product or service
- A niche without competitive pricing pressures
Can you guess what we decided would be the perfect business based on
our criteria? Wait for it…
However, even though the 1st three characteristics of our model would be satisfied by selling life insurance, it presented a few deal-breaking problems. Life insurance is highly competitive and NO fun at all to sell.
Most people avoid their life insurance agents like the plague. Then, there are huge pricing pressures because life insurance is nothing more than a commodity.
Shortly after I learned about the land business from my friend Steve, it hit me like a Louisville Slugger to the chops. Buying and selling land fit all of the criteria Raj and I had defined. No physical inventory, a one-time sale with recurring revenue, built-in incentive to keep customers paying month after month, and very little competition.
And what’s more, it takes very little money to get started, you don’t have to maintain the properties, and there is a huge, thriving market with tons of demand. I knew Raj would be proud!
Now you’re probably asking “How does selling land give you recurring income and how does it give your customers incentive to keep paying you month after month?” Simple. You sell the land on notes – or owner-financing. You have steady stream of cash coming in, and your customers are paying for a tangible investment that they want to hold on to.
This, my friends, is how you make money in your sleep.
Get ready and join us next time, we’re going to look at how to break Conventional Wisdom!
* Every effort has been made to accurately represent our product and its potential. Please remember that each individual’s success depends on his or her background, dedication, desire and motivation. As with any business endeavor, there is no certain guarantee that you will earn any money.