You know what? It's time to stop flipping houses and it's time to start flipping dirt, baby. I believe land beats houses every single time and I'm going to show you why here. Now, I may be wrong, and you can make an argument for why houses are better, but I'm telling you, from my experience, from my years of doing deals, teaching people, helping people to do deals, I love vacant land for one simple reason: it's just easier. It's a faster way to do deals.
I've taught a lot of things and have done a lot of different deals, but I have never seen more student success stories and testimonials since I've switched to vacant land. I’ll walk you through all the reasons land just makes sense, including flipping it without seeing it in person, not having to do anything to the property, and more. I've got a cool bonus for you if you want to get my new book, Simple Land Flips. If you want to learn how to make $10K in ten hours (no promises), click the link below.
Joe: Hey what's up guys? Joe here. You know what? It's time to stop flipping houses. And it's time to start flipping dirt, baby. Yeah, that's right, guys, it's time to stop flipping houses. It's time to start flipping dirt because I believe land beats houses every single time. And I'm going to show you on this little video here. Why I think so, I'm going to lay my case on why I think land is better than houses. Now, I may be wrong, and you can make an argument for why houses are better, but I'm telling you, from my experience, from my years of doing deals, teaching people, helping people to do deals, I love vacant land for one simple reason it's just easier. It's a faster way to do deals. So I'm glad you're here. Welcome to my YouTube channel. I'm going to be breaking down a lot of simple things of why I think land beats houses every time, and I've got a cool bonus for you if you want to get my new book, Simple Land Flips how to make ten K in ten hours, although I'm not promising that. Glad you guys are here and if you like this channel, please subscribe. Give me a thumbs up and let me know in the comments what you think of this video. Call me. Call my bluff. Say hey Joe, you're full of crap. Or tell me yeah, I think you're right. This is amazing. I'll tell you this guys. I've been teaching stuff for a long time and if you want more information, go to Simple Land Class.com. But I've been teaching houses and wholesaling houses, lease options on houses, creative financing, subject twos, owner financing. I've taught a lot of things. I've done a lot of different deals, but I have never seen more student success stories and student testimonials and students doing deals since when I've switched. Since I've started teaching vacant land, I've never had more testimonials. Does that make sense? I hope I'm explaining that right, but I've never had more testimonials from people doing land than I than I ever had with houses.
Joe: All right, so anyway, I want to jump right into this. Go to Simple Land Class if you want more information. I have a mind map here and I'm gonna explain why. Now again, I just kind of said this already while I stood. I still do believe that land because I still do house deals. And I think there's a lot of advantages to owning and flipping houses, one of them being the tax benefits. Right? You don't get the same tax benefits with vacant land that you do with houses. So it's important to be diversified. And what I want to challenge you with is thinking of this as another tool in your tool belt, because there's a lot of you guys that are doing a lot of marketing, especially pay per click, and you're getting a lot of land leads coming in and you're not doing anything with them. I've worked, I've I have helped so many people that had a very active, very successful house business. I showed them how to flip vacant land and they're like, and they started doing that and they're like, oh my gosh, I can't believe how easy this is. I can't believe that I've been ignoring this for so long now. Here are some of the biggest benefits of flipping land. And I've got a lot of them with vacant land. Guys, you don't need to do anything to the property, right? You don't have repairs, no inspections, no permits. It's a very hands off investment. You don't have to worry about vacancies, maintenance, repairs, no more tenants, toilets, trash, mold, termites, broken pipes, new roofs and guys, you can get the same cash flow. And I'm telling you, better cash flow, better cash on cash returns on your money because you don't need any debt. You don't have to go into debt on these vacant lots. We're buying them for 1020 grand, selling them for 30 to 50 grand. And we're getting 2 to 3, $400 a month in cash flow from these deals. This is it's just a wonderful way to get cash flow, if that's what you want. Now, statistically, when you compare houses to vacant land, vacant land owners are way more likely to be motivated to sell. Why? Because they're more removed from the property. They're more distant absentee owners. There's no emotional attachment to the property. You know, they didn't put hundreds of thousands of dollars in it. They don't have a huge mortgage hanging over their head with it. Right. It's not a property that they that they grew up in and they lived in before. So they're more detached. A lot of people who own vacant land inherited it. Maybe they bought it seven years ago. They just not have been to it yet. And people ask me all the time, Joe, how can you sell? How can you really actually buy properties at 25, $0.35 on the dollar? And it's the same reason why somebody would go sell their treadmill at a garage sale for 25, or they bought it for 2500 bucks, they'd sell it for 250 bucks or something, 25 bucks at a garage sale, because they're just sick of it, right? Every time they walk past it, it reminds them of how overweight and fat they are, and their wife is mad at them, forever buying it in the first place. All it does is collect laundry anymore. So like, I'm sick of this thing. I'm done with it. I've only used it once in the last five years. Get rid of it. There's a neighborhood garage sale. Let's just price it for 25 bucks. That's. It's the same thing with vacant land. A lot of people have owned land for a little while. Seven years, ten years, five years, and they're just done with it. They're sick with it and they want to move on very normal. So we can get much bigger discounts with vacant land.
Joe: All right. So back to my mind map here. Uh, you can flip vacant land without ever seeing it in person. There's so many powerful tools available on the internet today for investors. You know, we use Google Earth, Google Maps, Freedom Soft, my custom Joe McCall signature edition of Freedom Soft. By the way, we use tools like Prycd and Map Right. And like think there's Redfin and Zillow. There's so many online tools that you can use to flip vacant land. And we also use, um, we use a lot of um, realtors that go look at our land. And we also hire photographers, local photographers to go take pictures of our land as well, and we only pay a couple hundred bucks for that. So land is very inexpensive to own as a long term investor. You don't have any mortgage payments. Thank God. Don't have any mortgage payments. No utility bills, no property management. Very low taxes. Now maybe. Okay. We have like 400 and $500 a year for property taxes on some of our deals. There is some vacant land that has large HOA dues like maybe 100, 200. We've I just was looking at one the other day. It had $400 a month in HOA dues. Why? Well, I don't know. It's a really nice area. It's a subdivision, very exclusive. There's a clubhouse there. There's paved asphalt road. So do you do deals there? Probably not, but very inexpensive to own as a long term investment. Uh, land gives you a peace of mind because there's very little risk. It's a long term, tangible asset. Doesn't wear out, doesn't appreciate it. Can't get broken into, stolen or destroyed. Which is, again, when you're selling your deals, which we do a lot of on owner financing. You don't have any roofs to replace, water heaters to fix, or vacancies to worry about. There's fewer variables, right? Compared to houses. You don't have to worry about the condition of the property. All the things hidden behind the walls like damaged foundation, termites, mold, radon, radon, previous smoker's pet damage. You don't have to worry about existing tenants, local city ordinances, inspectors, market conditions, bank financing with rising interest rates. What's going on with that? We don't have to worry about hard to get financing pleasing picky buyers. Guys, bottom line land is just simpler, okay? Diversification. This is a great way to now diversify your investments. Add vacant land to your portfolio which will reduce your risk overall. And you can. Yes, you can get cash flow from vacant land. You can invest in vacant land inside of your IRA as well your self-directed IRA. So land investors get to call their own shots. You don't have to deal with the banks and inspectors, contractors, realtors, adult daycare when you're rehabbing properties so the city don't have to mess with any of that very minimum minimal local government involvement and intrusion, minimum minimal start up capital. And when we make offers on deals, guys, we do not use earnest money deposits and we do not have to show proof of funds. Um, we also have three months to close on our vacant land deals. Unlike the 30 days or the two week inspection contingencies that you typically have to have with a house. We have three months to close, no earnest money. And we have a due diligence contingency of three months, very little competition when you compare vacant land to houses. And so it's easier to get better deals, you don't have to move as quickly. I did some research on list source and I have a little screenshot here I'll show you.
Joe: Okay. I recently posted this in my Facebook group and I was doing some research in list source, and in the last 90 days when I was looking at this, there were about 20 a 2800 vacant lots between 1 to 20 acres sold to investors in the United States. And that same 90 day period, there was about 45,000 houses sold to active investors in that same period. Okay, that's 16.2 times more houses than vacant land bought by investors. All right. So you got to say, well, compared to what? There's more houses than vacant land, right. Or there's more, uh, house investors. Okay, well, look at this. Only 261 investors bought more than one vacant lot in the last 90 days, between 1 to 20 acres. Right. And there are one 142 million total houses, 48 million vacant lots. Bear with me here. I'm going deep in the numbers, but I. They'll be summarized and look really good here in a minute. So that means there are 3100 houses for every active house investors. But there are 23,000 vacant lots available for every active land investor, 7.4 times more vacant land lots available per active land investor. Um, also, there's a great article here from Seth Williams. You should go check it out if you go to our tipster.com. Or you can get this mind map or just Google this Ari tipster. Little growing competition every kill the land investing business. Great post by Seth. Shout out to Seth. Go read this. It's very good. And it kind of breaks out even better than what I could argue here. So with vacant land as well, you have lower costs, higher profits. It's cheaper than houses, cheaper than commercial property. You can get started with a smaller investment. You can buy some of these deals on your credit cards. Uh, you can get 100% cash. On cash return on your money a lot easier and a lot faster. Guys with houses, when you're getting financing or mortgages, you're lucky if you can get 10 to 12% return on your cash in that first year with vacant land, it's easy for us to get 50, 60 to 100% cash on cash return on our deals in that first year.
Joe: Let's talk about passive income. Who likes passive income? I mean, we talk about it. We hear about it. We read books about it. But listen, with vacant land, you can get piles of cash and streams of cash. You can wholesale vacant land and make quick pots of cash right now. Right. Piles of cash. Or you can sell it with seller financing to get cash flow over time. And it's great cash flow because you get more cash flow with less money and less vacancies. Maintenance, repairs. Tenants, rentals, all of that stuff. You got what I'm saying? Okay. Anyway, passive income. When you add seller financing to the mix, you can make a lot more money. Banks just won't lend on vacant land, especially the ones that we're going after. And guess what else? Dodd-Frank doesn't apply to vacant land because we're not selling this as a primary residence. We're just selling this as dirt. And it's very easy, conservatively, guys, to get 200 or $300 a month on each vacant rural lot that you sell. Finally, God's not making any more land, so there's a lot of it out there. I have a sample little spreadsheet here of how easy it is. Well, I'm not making any promises or guarantees, but how you can make a lot of money flipping land. And let me just show you kind of how an example deal maybe works. So let's say this is a 1.25 acre property. It's worth about $35,000. We're going to make an offer conservatively at 40%. We buy a lot of land at 25, 30%. Let's say we're buying it at 40% of the value. We can just sell it. We're going to buy from 14. We're going to sell it with owner financing. We can sell it with owner financing for maybe at 105%, you know, a 5% premium at 36,000. When we sell it for cash, we're going to discount it. We're going to make sure we're the cheapest property around. We're going to sell it for cash, maybe 31,500, which means after closing costs and realtor commissions, we're going to wholesale profit about $12,500 on this deal. Now. Yes, we use realtors. It costs a lot of money. But, guys, I'm telling you, listen to this. You don't pay that realtor until you get paid, so it really doesn't cost you anything. And realtors put you in front of the most buyers. They save you a ton of time and money and hassle, and they are paid on 100% commissions. So they're going to bring you more buyers, better buyers, and you're going to sell your deals faster with a realtor. All right. It's just kind of like staging a house. You just got to do it. It's an expense that's going to pay off and pay dividends back. So let's say you sell this deal instead of for cash. You sell it with owner financing. And typically way we do that is we do it for five years. We charge about 9 to 10% interest. We typically get 5 to 10% down. So our cash out of pocket on this deal is only $15,325.
Joe: Now, some of you may be like only Joe, that's a lot of money. So maybe you guys can put that on a credit card. Some of you have that money right now in a self-directed IRA, and you don't pay any taxes on those gains. Some of you do what I do. You find private investors that lend you that money on a short term temporary basis, or what we're doing now is we're just we we're taking our profits and putting them back into deals. You're cash flow on this deal, guys. $695. How much of that is my saving or setting aside for, um, vacancies, maintenance, repairs, future, uh, capital expenditures, like a new roof and or and a water heater and stuff like that. So you look at the numbers, this'll blow you away. Your first year payments coming back will be about $8,300. Your total payments over time will be 41,000. Total paid back 45,000. So your total profit on the deal is 26. But look at this. Your first year cash on cash return 63%. What 63%. Yeah. This is why I love vacant land so much. And again if you want more information go check out my webinar Simple Land class.com. And I give you this book and I'm going to show you on this webinar how to find these deals and how to make these offers. So your total ROI in this deal within five years is 138%. How long does it take to get your money back? One and a half years. How long is it? If you knew when you buy a house, how long does it take to get your money back? I don't know, but a long time now. Let's say your passive income goal was to make ten grand a month or 120 grand a year, and you did one of these deals a month, one of these deals that I just gave you up above. You did one of them a month. How long would it take you to get up to $10,000 in cash flow back on this deal? 14 months. 1.2 let's change the numbers up a little bit here. Let's say this is 0.75 acres and it's worth $20,000. And let's say this is just be super conservative. Let's say we pay 50%. You never, ever pay more than 50% on your vacant land, okay? And we get about an average of one out of 20 to 30 offers accepted. So this is very, very doable. If we sell it with owner financing we're going to sell it a little premium. We sell it for cash. Um, we might make, you know, $4,500 better than a poke in the eye and with a stick, but $4,500 cash for a wholesale, um, profit, which is pretty good. Now, let's say we sell this deal with owner financing. We do five years, 9.5%. We get 10% down. Let's say we get 5% down. All right. So our total out of pocket is $12,500 for this deal. And we own it free and clear. Right. So we're going to get a cash flow of $417 is free and clear passive recurring cash flow for at least five years $418. Scroll down. That's a 45% cash on cash return. That's 4 or 5 times better than what you're going to get with houses.
Joe: So how long does it take to get to get your money back? A little over two years if you're using your own money. And then look at this. If you're doing one of these deals a year and your goal is to get to $10,000 a month in passive cash flow, how long is that going to take? Doing just one of these deals a month? Two years? About 24 months. If you did two of these deals a month, obviously it's going to take you half of that time. But guys, I just I'm turning this. I'm not trying to make any guarantees or promises or income claims because you know what? Honestly, most people that buy any kind of moneymaking opportunity or a course on how to make money from home or how to do real estate, never do anything with it. Never. They don't domake, they don't make anything. So I'm not making any problems or claims, promises or claims that this is going to happen to you because everybody is different. You got to put in the work. I've been doing this. These are numbers that, in my experience, I'm seeing in my business. So it just kind of depends on how seriously you're going to take this and how seriously you're going to do this. Makes sense. Is that fair? Okay, so why did I choose land? This is one of the biggest reasons why I chose land. I wanted something that I could do with my kids. And so these are two deals that I did with my boys. One, uh, was in Wilkes County. The two of them were in Wilkes County, North Carolina. Again, I have to always add a caveat when I'm showing deals like this. These are deals. These are real. If I had to, I could show you the settlement statements to prove this, that we flip these deals. But I cannot promise or guarantee that this will happen to you. This isn't easy. You just you need to put in the work. But this is what we did. Make sense. All right? We did $20,000 profit on this 11.5 acre property in Wilkes County, and we made $11,000 profit on this five acre property in Wilkes County in the middle of nowhere, North Carolina. Here's another deal that I did with my boys in Kern County, California. We did. We made $8,000 on this one in Klamath County, Oregon. We made $7,500 profit on that property. Notice we didn't do anything to that land. We didn't cut down any trees, do any septic system test or Perc tests. We didn't do any surveys. We didn't do any boundaries surveys. We didn't add utilities, subdivide do any entitlements, add some roads, clear anything out. We didn't we didn't do anything. And with my boys help, we made over $150,000 in profits doing this very, very part time. So I wanted something I could do with my kids. You know, as a, as a, uh, dad is doing a lot of real estate and a lot of houses. I wanted to train my kids in the business.
Joe: One of the issues with houses, though, is that you're dealing with people. I mean, to be honest, right? You're dealing with people. And I wanted something that was more transactional. And so we set up a system where we'd pull a list of people who owned vacant land. And I'm going to talk about this in my book right here that you can get when you join my webinar. It's simple land class.com. Uh, watch my webinar there because I show you exactly what I'm going to be teaching you right now. So we pull list of vacant land owners that have owned land outside of that county. They live outside of that county, but they've owned land there for over ten years. And we send them a simple postcard or a letter that says, hey, if you want to sell your vacant lot, we might like to buy it. Please call or text our 24 hour recorded voicemail. And then they call that number or they text it. They leave their reference ID from the postcard or the letter. Then this is what my boys would do every day or every couple three days they would go through, listen to the voicemails, find that property from the letter reference ID, they would go to Redfin, go to Zillow, get some of the other tools that we have, and then would do a little bit of research and figure out, okay, what could we probably sell this property for? And then we sent the sellers an offer at about $0.35 on the dollar. Okay. Our numbers are very, very simple. We were averaging about one out of every 20 offers accepted. Now maybe one out of every 50 for you. Maybe one out of ten, I don't know. But that's what we were doing. And get this, we did not talk to the sellers until after they got our offers. This is why I love doing this with my boys, because with the house, you know, it's just everything is so different and you're talking about hundreds of thousands of dollars. You're talking to a seller. That's pretty sophisticated. Maybe he's lived in the house before. They're deeply, emotionally attached to the property. They put hundreds of thousands of dollars into it or whatever, and you're trying to beat them down on price, you know, and you got a seller that's got a lot of desperate motivation going on. And they think they're properties worth this. And you're trying to get them down to here. It's just very difficult for a 14 year old boy. Now my boys are smart. I know I'm not knocking them at all. They probably actually could have figured it out, I don't know. But I wanted something that was more transactional that they could do after school, after sports, in the evenings, on the weekends, and we didn't have to necessarily jump on the phone and talk to sellers, negotiate with them. A lot of you guys, you have English, you know, it's a second language or you don't feel comfortable talking on the phone. You don't want to. You're working a full time job. That's why I love doing vacant land. So we pull a list, we send some postcards, we get some voicemails, we send some offers, we do some text, follow up email, follow up. We send them an offer and we only talk to them after they get our offer. Sometimes they just sign it and send it back. Sometimes they have some questions, but then once we get it under contract, we send it to a realtor who's already selling a bunch of land in the area. So what are we doing? Not much. Right? Do you see why this is? So easy even a teenager could do it. So I'm hope you are hoping that you're catching this and getting excited like I am.
Joe: All right, so why else did I choose this business? Because I wanted a business that would give me piles of cash and streams of cash, and wouldn't take a lot of money to start? It was simple with low overhead. I could do this very, very part time. It could be run from home or from anywhere in the world, and you don't have to take on any debt or mortgages to make it run. And most importantly for me, I wanted something that I could spend more time with my family on. Now here's the obligatory when I start talking about my family. I love my family, right? My wife and kids are all amazing. That's my wife, Victoria. This is our backyard, which, by the way, is on three acres of land. We bought this property and we bought it with creative financing, which is a whole other story, which is awesome. My four awesome kids, these boys are a lot older now. They're going to college and, uh, but I've had the grace by the grace of God, we've adopted all four of our kids, so I'm very fortunate and blessed. Um, we've also been very, very blessed. I won't show you these pictures, but we've traveled to Europe for months at a time. Three different times. We've been with our family of four kids. Uh, twice, actually, for 2 to 3 months at a time. We've traveled to Prague and lived there while doing deals in the United States. So this isn't just theory from me. I'm telling you what we do and how it's how you can do it too, just by keeping it really, really simple. We also spent three months in an RV traveling around the northwestern corner of the United States. So I've also have a lot of students and friends that are crushing it doing land right now, and I don't have the time to show you, but I've interviewed a lot of people on my YouTube channel. By the way, are you watching this on YouTube right now? Yeah, go look at all my videos. I've interviewed dozens and dozens and dozens of people that students and friends that are doing a lot of vacant land deals today. So go check that out. One of my favorite friends and students, his name is Phil Marsh, and I did a video with him right here. Go check that video out. And, uh, these are some deals that he did. He did about 10 or 12 grand a month in recurring passive income in less than a year doing deals like this in Polk County, Florida. This is a vacant land deal right in the middle of nowhere, probably wetlands. And, uh, he sells it with owner financing. He's getting a $654 a month on deals like that. And then he did another deal he was showing me from Klamath County, Oregon. And again, if you look at this property, there's nothing on it, and you don't do anything to it. Um, he's getting about a $25,000 profit on that with owner financing, $15,000 down monthly cash flow of $1,100 a month. Now, can you do this as well? Am I promising that this will work for you just like I do? I have to be real careful when I share testimonials, but, um, I can't guarantee this will happen to you either, but all right. Why else land? Because there's a lot less competition. Um, people don't know about land muchyet, right? Or our direct mail response rates are 3 to 5 times higher than houses. We typically get on houses. Um, on houses, you typically get one to a 0 to 1%, normally half of 1% if you're lucky. Well, with depending on letters or land letters or postcards. Rather, we're getting 1 to 4% response rate on our direct mail for land. You can do this in the United States from anywhere in the world. There's lots of land out there too. There's over 3000 counties. And I talked a little bit about the research that I did here already. All right, here's the thing too. I'm too busy. I don't like talking to sellers. I don't like answering the phones live or paying for expensive live answering services. I don't like trying to negotiate huge discounts with sellers over the phone. I wanted to build a real business that had automation set up in it. I want to send every seller to a voice mail. I listen to the voice mails 2 or 3 times a week. We send them an offer at 25 to $0.35 on the dollar, sometimes a little bit more. Um, we don't talk to sellers until they're interested in our offer, and on average, we're getting about one offer every 25 that we send out. Accepted. Those are our numbers.
Joe: Okay. Just wanted to let you know now if you're interested in getting more information again, go check out Simple Land class.com. And on this webinar, I'm going to answer the most common questions that I get all the time. Why would someone ever sell their land for so cheap? Who buys this cheap land? Are they crazy? Where am I getting the money to buy these land deals? What if I make a bad offer and I can't back out of the deal? What do I know? Uh. That's easy. Uh, what if I work a full time job? A lot of you guys don't want to quit your job. What if I don't like talking to sellers? I don't have the time. What about the competition? I'm going to answer all of those in this webinar. So I'm also going to give you then the six steps to flipping your own vacant land deals. You do the market research, I'm going to show you how to pick the best markets, how to pull the best list of motivated sellers, how to send letters or postcards, how to send quick, simple offers, how to do some simple due diligence and how to sell your property really quickly. And again, you can outsource almost 100% of this to other people. I'm also going to show you how to overcome the six main roadblocks to success. You know, sometimes people ask is no. Is it really that easy to make this kind of money? I say, no, it's not. There's going to be roadblocks. There's going to be problems now. Number one is selecting the right counties, setting up the right tech stuff, getting the money to buy the deals, knowing how to pull the right lists of sellers, how to send the right postcards or letters. How do you know to make if you're making a good offer on a property, how do you where do you go? If you have questions, you don't have the right mentor to help. If you don't have these things, you're going to fail in the business. So we're going to be talking about that on this webinar, are also going to be talking about the three secrets to success marketing automation and delegation, how you can get the marketing done for you in spite of you. How can you can set up systems that does this all for you, and then how you can delegate so that you can literally do nothing in your business if you want. So I'm going to show you on this webinar as well, how to get the land flipping business in a box where you can get all the marketing and tech stuff done for you, set up for you, and I'm going to give you free coaching and help if you're one interested. And also you can get my free eBook right here. Simple Land Flips for free just by going to Simple Land class.com. Simple land class.com. Listen, uh, I love this stuff. I love I've been doing a lot more videos about this. It's a lot of fun. So I'm hoping I get to work with you. Right. So go to Simple Land class.com. Check out the webinar and I'll see you there. Thanks a bunch everybody, I appreciate you