Land investing is an easy, low-risk approach to construct passive earnings whereas avoiding the complications of conventional actual property investing fashions. Uncover how this missed and undervalued passive earnings alternative works with Land Investing 101.
01:05 Shopping for Land For Pennies On The Greenback
03:02 Due Diligence
03:50 Promote Property and Create Money Move
06:37 Instance Offers
08:23 Subsequent Steps
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I’m Mark Podolsky AKA “The Land Geek” and I’ve been an expert land investor for 20 years and proprietor of Frontier Properties. Since 2001, I’ve accomplished over 5,500 land offers with a mean ROI of over 300% on money flips, and over 1,000% on the offers with financing phrases.
Now, I educate others the way to spend money on uncooked land. I’ve helped 1000’s of individuals to switch their earnings, retire their spouses and deal with what actually issues.
What’s land Investing?
Earlier than we dive into how the mannequin works intimately, let me offer you a easy overview of what land investing is.
Land investing is the place we purchase uncooked land for $.25 on the greenback, then we flip round and promote it at retail worth.
Basically, we’re land flipping.
So the place does passive earnings come into play?
Relatively than doing a straight land flip, we provide proprietor financing to make the dream of land possession straightforward and reasonably priced.
We see a typical ROI of over 300% to 1000% per deal.
So now let’s break the mannequin down step-by-step.
*How To Purchase Land For Pennies On The Greenback*
We purchase land for $.25 on a greenback from those that are now not emotionally connected to the property and are wanting to promote.
Widespread causes individuals are keen to promote their land are…
They’ve moved and might now not entry the property as incessantly as they as soon as did.
They inherited the property from a member of the family, they don’t have any emotional attachment to it, they usually don’t need to pay the taxes on it.
Their priorities have modified they usually now not have the time to make use of the land as they beforehand did.
So the very first thing we do is decide what space we need to work in after which discover somebody who owes again taxes on a property.
Let’s say, for instance, we discover Eric who has a 10-acre parcel of land in Texas and he owes $200 in again taxes.
Now we check out comparable gross sales within the space.
We’ll take the bottom comparable sale and divide it by 4 so we now have a cushty margin of security. This will likely be our supply worth to purchase the property.
So in Eric’s case, let’s say the bottom comparable sale is $10,000. Divide that by 4 and we get $2,500.
Then we ship a suggestion letter to Eric saying we’d like to purchase the land for $2500 and handle the again taxes on the property.
And he accepts!
Usually, we see a 3-5% acceptance fee on our supply.
The supply can also be contingent on passing due diligence, which we’ll cowl subsequent.
Due Diligence is without doubt one of the most vital steps of this mannequin. Do your due diligence appropriately and also you’ll by no means be caught with a “dangerous” deal.
We simply need to ensure that we’re receiving full disclosure of the details and circumstances of the property prior to purchasing the property.
We’ll examine to ensure…
They really personal the property
There aren’t any liens on the property
There aren’t any breaks within the chain of title
We’re conscious of all again taxes on the property
Verify if there are any roads resulting in the property
What facilities and companies are close to the property
If there are any restrictions on the property.
All the pieces underneath due diligence can simply be handed off to a digital assistant so that you wouldn’t have to do any heavy lifting.
*Promote Property And Create Money Move*
One of the crucial frequent questions I get requested is who’s going to purchase the property?
The primary place to search for a purchaser is by going to the neighbors.
Oftentimes, the neighbors will likely be considering shopping for that property. This may be for extra privateness, unobstructed views, or just to have as a short-term or long-term funding.
In the event that they go in your supply, the following factor to do is to resort to your consumers’ listing.
A consumers’ listing is an inventory containing the contact data of people that have expressed curiosity in our properties.
In case your consumers’ listing passes in your supply, the following step is to market on the next web sites.
*How You Can Get To Complete Freedom*
After getting created sufficient land notes, the place your passive earnings exceeds your fastened bills, you’ll solely be working since you need to and never as a result of it’s important to.
For all the extra data you’ll want on the perfect passive earnings mannequin, get our FREE Wholetailing course:
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