My method is the ultimate simplification of real estate investing. By simplification of real estate investing I mean this: All you have involved here is a seller, a property, and a buyer. That’s all there is to it! There is nothing complex about these deals.
So what we have done is made it simple.
Do you like simple? Do you like easy?
Now remember, easy does NOT mean effortless. It just means that there is no guess-work on your part. Even if you have absolutely no experience with real estate, you can be extremely successful with land investing. That’s my goal for you. That’s the difference I want to help you make in your life.
Let’s start off by talking about the 5 key steps of creating serious wealth with land investing.
Step 1 – You find the sellers that no longer want their property
Step 2 – You send out offers to these people
Step 3 – You analyze the deal
Step 4 – You market the property on internet platforms that already have a lot of traffic
Step 5 – You sell the property.
Now we just went from having zero real estate experience to closing your first deal in only five steps! And then – the best part – you take your profits and reinvest into more land.
Rinse and repeat.
Let’s look closely at Step 1…
Finding the sellers that no longer want their property. What you’re looking for is people that are advertising to the world that they don’t want their land anymore.
The Investor’s Toolkit will show you exactly how you find huge lists of data about these people and their properties. Then what we do is we take that list of people, and we filter it down by criteria like the price-range, where the owner lives, and how long they have owned the property.
There are a whole lot more criteria that we need to look at, but we’ll get to that at the end. The result we get from filtering this list is this: A significant percentage of the people receiving our offers will happily sell you their land for pennies on the dollar.
Here’s a recent case study…
One of my students, Jeff Akstin, executed our letter writing campaign so well that he was able to buy THIRTY 5-acre parcels in Colorado from a distressed seller at an average price of $222, plus a few thousand dollars in back taxes. His total cash profit from this deal was over $30,000 in 2 months! Plus, he sold some of the parcels on easy seller-financing terms, and he is now getting an extra $1,000 a month in passive income.
Keep in mind, we’re NOT talking about junk lots. We’re talking about quality lots that have views, good access and nearby amenities. And get this – if Jeff had found this deal and didn’t have the money to buy the 30 parcels himself, he could have easily wholesaled out these properties without putting any money down. Wholesaling is another strategy I teach with lease options, but I don’t want to get ahead of myself.
So, let me ask you, would making an extra $30k in 2 months make an impact on you? Would that change your life a little bit? Would that make a difference? That’s exactly what the Investor’s Toolkit does for you.
Step 2
You want to send out low ball offers to the potential sellers we found in Step 1.
Now, my offers are very unique.
I have tested every aspect of all my letters that I send out. The typical direct response rate for direct marketing is something like a half-percent response. Think of your own mail box where you get car offers, magazine offers, etc. Very few people actually respond. 1/2 percent is all the marketer needs to make money on the promotion.
Now in real estate, some people use yellow letters that look like handwritten letters, and they’re getting a 2-3% response rate. If you’re in a short sell area, you might get like a 1 or 2% response rate. The response rate my students and I get is between 5-7%. Do you think it would be great to get 5 – 7 amazing deals for every 100 letters you sent out?
My mailings are much more receptive because my letters and post cards are so well-tested, and because these land owners don’t actually get much mail. Plus, you can’t find these deals in the MLS because the property owners haven’t even listed their land with a realtor.
My letters are one page, and don’t offer up any room for negotiations. Again, we don’t want to waste time being in the appraisal business. We want legitimate motivated sellers. People who are super interested in selling because they don’t want their property any more.
As a result, every time you run one of my mailing campaigns it’s like collecting checks at the post office every day. The best part is, people save the letters, and send them in months later. So we all know in Real Estate, we make our money on the buy and not on the sell. These accepted offers are just that, money in your bank.
Put another way, how would you like to spend 20 bucks on a mailing and make $3,000? Is that a good return on investment? You can’t get that in the stock market.
Analyzing deals or due diligence. Now, what you want to do when analyzing these properties is check a few simple things. You or your Virtual Assistant can jump on a computer and do a 5-10 minute property value check online – it’s very easy. In fact, I teach you step by step how to use Google Earth and some other free sites to do 99% of your due diligence and make helpful maps – which are great for your marketing.
Step 3
Due diligence may sound intimidating, but here’s the thing – because you can leverage the power of the internet… Because there are aerial pictures of just about every piece of land on Earth, all you need to do is get a ballpark value of that property. You don’t even have to be physically at the property!
As a matter of fact, I can’t tell you the last time, in the thousands of deals I’ve done, that I’ve actually set foot on the property. Plus, with the inexpensive crowd-sourcing available online, you can easily hire a local to take pictures and videos of the land for you and prepare an entire property report for almost nothing.
So buying sight unseen may sound crazy at first. But with the technology and crowd-sourcing you can leverage online, you don’t have to stress about not being at the property.
Plus, I don’t actually do the work! I outsource all the due diligence to my virtual assistant who creates all of the maps I need for about $3-$5 an hour.
We’ll cover steps 4 & 5 later!