On May 6 – I blogged about how I make cash flow investing in raw land.
On May 20 – I blogged about what people do with the land they buy which drives the demand for this type of real estate.
Today, I’d like to tell you about how we are able to buy land at low enough prices to ensure that we always make a profit. In other words, I want to share how we “buy right”. I’ve mentioned previously that there are a lot of people that own land that they don’t want and can’t find a way to sell it.
Failed Dreams…
Here’s one scenario I’ve heard. These people may have bought some land when they were younger thinking they would build their dream house on it later in life.
The area never developed like they thought it would or they never got around to building there because their goals in life changed or economic circumstances changed.
Whatever the reason, they never did what they wanted with the land, their life changed and now they don’t want it and can’t find a way to sell it.
Un-wanted Property…
Another scenario is similar except the owner inherited it from their parents who had the dream described above and didn’t get to carry it out.
Can’t Find a Way to Easily Sell…
There are probably other scenarios, but regardless, the main issue is that they can’t find a way to sell it. Real estate agents won’t sell it.
The real estate agents can’t make enough commission to cover their cost of trying to sell it the way agents normally go about their business. So, real estate agents won’t help them.
Inefficiency for Sellers…
For these reasons, it’s not that hard to find land to buy at great prices. The people above are usually quite happy to sell the land to anyone willing to give them some money for the land and make the process as simple as possible for them.
Because these people want to unload the property, but can’t find an easy way to sell at market values, it creates inefficiency in the marketplace.
Direct Mail Works Well…
We determine the market value we can sell for and make them a lower offer by direct mail. A certain percentage are happy to sell to someone and get some cash. I will tell you from my experience that this is generally the easiest part of my land business.
I’d love to discuss your thoughts…
If you’d like to have a conversation, feel free to email me or set up a call with me or just call me if you already have my phone number. If you don’t have my number, use the web-based calendar to schedule a call with me. I’d love to hear what you think.
For now, be safe and take care of your family.
Mark