Podcast Summary
Spring Cleaning for Your Finances: Shop for Life Insurance and Real Estate Investments: Secure affordable life insurance with Policygenius and explore real estate investment opportunities through Fundrise or land flipping
Spring is an excellent time for both home cleaning and financial planning, including shopping for life insurance through Policygenius. With Policygenius, you can secure peace of mind for your family by finding affordable policies with minimal hassle, starting at just $292 per year for $1,000,000 of coverage. Additionally, investing in real estate through platforms like Fundrise can provide financial growth opportunities, even during market downturns. For those not interested in handling tenants or property maintenance, flipping raw land is a viable alternative. Pete Reese, a successful land flipper, shares his experience of growing a profitable business from scratch, demonstrating the potential rewards of this unique real estate investment strategy. Always remember to carefully consider investment objectives, risks, and expenses before making any financial decisions.
Using Direct Mail for Land Flipping Deal Flow: Analyze recent sales data to determine offer prices for land flipping and use a 2-page direct mail letter with a purchase agreement to generate deal flow
Pete, a successful land flipper, uses direct mail with offers included to generate deal flow. He bases his offer prices on recent sales data in specific areas and uses it as a starting point for negotiations. Pete, who started in land flipping just two years ago, is on track to reach $4,000,000 in revenue this year with a 50% gross profit margin. To get started in land flipping, one needs to focus on bringing in deal flow. Pete's approach involves using direct mail with a 2-page letter, where the second page contains a purchase agreement document. He analyzes recent sales data to determine offer prices, which serves as a starting point for negotiations. This strategy has been effective in getting the phone ringing and starting the negotiation process.
Casting a wide net for real estate deals with DataTree: To increase chances of finding potential real estate deals, send out a high volume of mail using DataTree and automate the process with purchase agreements and spreadsheets.
Successful real estate investing involves casting a wide net for potential deals by sourcing large lists of property owners and sending out a high volume of mail. The speaker in this discussion uses DataTree, a subscription service from First American, to compile lists based on various filters such as property size and ownership duration. They send out around 50,000 letters per month at a cost of about 50¢ per letter, totaling $2,500 per 10,000 letters. They use a third-party company like Rocket Print and Mail to handle the printing and mailing process. The offers are automated by including the purchase agreement and a spreadsheet of the list in the mailing process. The focus is on the area and property type, with obvious non-sellable entities like railroads, cities, and utilities being filtered out. The key to success lies in the large volume of mail sent out, as it increases the chances of finding potential deals.
Determining Offer Prices and Building a Team for Land Investing: Use data to calculate offer prices based on average sales in specific acreage ranges, double your money, build a team with call answering service, lead manager, and acquisition manager, and evaluate potential properties for desirable features while avoiding undesirable traits.
Successful land investing involves using data to determine offer prices and having a team to handle inbound leads efficiently. The investor discussed using a simple formula to determine offer prices based on average sales in a specific acreage range and then setting a price per acre to double their money. They also mentioned having a team in place to handle incoming calls and leads, with a call answering service, lead manager, and acquisition manager. Additionally, they emphasized the importance of evaluating potential properties for desirable features like road frontage and nice on-site appearance, while avoiding undesirable traits such as wetlands, FEMA flood zones, and bad topography. Overall, this approach allows for efficient and effective sourcing and evaluation of land investment opportunities.
Considering buildability as an exit strategy in real estate investing: Effective due diligence includes assessing buildability for potential resale value and faster sales. Short-term holding and a solid workspace enhance appeal.
Due diligence is a crucial step in real estate investing, and it can significantly impact the resale value and the speed of selling a property. The speakers emphasized the importance of considering the buildability of a property as an additional exit strategy, which can increase the buyer pool and potentially lead to a better resale price. They also shared that they aim to hold their properties for a short term, around 60 days, and having the option to build on the property can make it more attractive to potential buyers. The speakers also highlighted the importance of a solid workspace, such as a standing desk from Uplift Desk, for productivity and health. Lastly, they discussed the importance of filtering through a large number of potential deals to find the best ones, starting with mass mailings and narrowing down to a few serious offers.
Understanding Due Diligence in Real Estate: Due diligence is a vital step in real estate deals, involving multiple checks and consultations to ensure a secure investment. Contingencies like escrow periods and local broker partners are essential. The process includes hiring a photographer, consulting local brokers, researching with authorities, and reviewing title searches.
Due diligence is a crucial factor when entering into real estate deals, especially in high-volume situations. The speaker emphasizes the importance of having contingencies in place, such as a reasonable escrow period, to safeguard the company. The due diligence process involves various steps, including hiring a photographer, consulting local broker partners, and conducting research with the county, city, and municipality. The team also reviews the title search for any potential issues. The speaker's company heavily relies on local broker partners to help with due diligence and reselling properties. Overall, the due diligence process is a multi-layered review that ensures all necessary information is collected and assessed before moving forward with the purchase.
Working with Broker Partners for Real Estate Deals: Building relationships with land-specific brokers streamlines deal identification and process, closing through title companies ensures a clear title.
Finding and working with broker partners is a crucial part of the process for this real estate investor. They cast a wide net to identify potential areas of opportunity and work with land-specific brokers to build relationships. These brokers help identify potential deals and cover large areas, making the process more efficient. The investor always closes through a title company to ensure a clear title and avoid potential issues down the line. The process from initial contact with a seller to closing can take anywhere from two weeks to a month, with title companies being the main factor slowing down the process.
Maximize reach and credibility with broker partners: Leverage broker partners to sell properties faster and at higher prices by listing on MLS, increase credibility, and reach a larger buyer pool.
Working with broker partners is essential for real estate investors looking to buy and sell properties quickly and at the highest possible price. By listing properties on the Multiple Listing Service (MLS) through broker partners, investors can reach a larger pool of potential buyers and increase their chances of selling properties within the desired timeframe. Additionally, having a local broker represent the property adds credibility and professionalism, which can be especially important for high-dollar properties. The sweet spot for profitability lies in buying properties in the $30,000 to $50,000 purchase price range and reselling them for double or triple the price. While some investors may offer seller financing, the speaker personally prefers to sell properties outright or work with a partner who buys the note at closing, allowing for owner financing for the buyer.
Learning from Real Estate Investing Mistakes: Investing in real estate involves risks and unexpected costs. Do your due diligence, consider partnerships, and learn from past mistakes to increase chances of success.
Not all real estate deals are created equal, and it's important to carefully consider the potential challenges and costs before investing. The speaker shared an experience of buying a landlocked property at a seemingly great price, only to discover it had no physical or legal access and cost him a significant amount of time and effort to sell. He learned the hard way that sometimes, even if a deal seems like a steal, it may come with unexpected issues. Another valuable lesson was the importance of partnerships in certain deals, as illustrated by a successful 650-acre property purchase made with a partner. Overall, the speaker emphasized the importance of learning from mistakes and being aware of potential pitfalls in real estate investing.
Starting with a partner: A strategy for land investing with minimal capital: To get started in land investing with minimal capital, find a partner who can provide the necessary capital and focus on bringing deals to the table. Use marketing efforts and research to identify potential deals in markets with a good balance of inventory and demand.
Finding a partner who can provide the necessary capital while you bring the deals to the table can be a highly effective strategy for getting started in land investing, especially if you have more time than money. This approach, often referred to as a "sweat equity" deal, can result in an infinite return on investment since you're not putting any money into the deal. To find your first land deal, commit a budget for marketing efforts, such as direct mail, and look for markets with a good balance of inventory and sales. Use resources like Zillow to research markets and identify areas with a strong demand for land and a reasonable inventory level. By following these steps, you can start building a pipeline of potential deals and take the first steps toward a successful land investing career.
Exploring Land Flipping through Direct Mail: Direct mail in local areas can generate leads for land flipping, but resources and effort may be required, and Pete's income reports offer insights into potential results.
Starting out in land flipping, focusing on direct mail in your local area or even outside of it can help you build a targeted list and generate good results. Zillow and tax sales can be effective methods, but they may require more resources and effort. Wealth, according to Pete, is about having the freedom to make your own choices and not being tied to work every day. Pete shares his insights on land flipping through his monthly income reports on his website, TurningProfit.com. By examining his reports, one can gain valuable insights into the land flipping business and the potential results one can achieve. Remember, to make money in land flipping, sometimes you need to spend money first.
Upgrade your life with 'All The Hacks' podcast: Listen to 'All The Hacks' podcast for valuable tactics, tricks, and tips to optimize net fulfillment, save money, and travel more, available on Apple Podcasts, Spotify, and more.
There's a new podcast called "All The Hacks" that can help you upgrade your life, save money, and even travel more, all while spending less. Hosted by financial optimizer and entrepreneur Chris Hutchins, this top-ranked show offers valuable tactics, tricks, and tips for optimizing your net fulfillment instead of net worth, with the goal of dying with 0. Whether you're looking for ways to increase your net worth or boost your productivity, "All The Hacks" has something for everyone. You can find it on Apple Podcasts, Spotify, or wherever you listen to podcasts, and your wallet (and overall well-being) will thank you later. A notable episode is number 91, featuring Bill Perkins, where they discuss the importance of optimizing for net fulfillment instead of net worth. Overall, this podcast is a must-listen for anyone looking to make the most of their resources and live a more fulfilling life.
