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This is part two of my Do or Die series, and I have my good friends Foster and Jared here. It’s been a couple of weeks since they were in Saint Louis, and we've been talking a little bit back and forth on text and Voxer. They've been taking massive, massive action. We’re talking about 3,100 postcards sent out in two weeks. They also had a lead come in, and here we take a look at it and talk about next steps.

Patience is the name of the game, and this first lead came in about two weeks after they sent their initial batch of postcards. Foster and Jared share how they handled talking to the seller initially, and we look at some specifics on the map to show how to come up with the best pricing. I also talk a bit about the value of bringing a realtor into the mix. Overall, these guys are on the right track, and I can’t wait to see what they do next.

Watch and Learn:

Listen and learn:

What’s inside:

  • How Jared and Foster are doing after sending out their first direct mail campaign
  • A demo of how to look at comps and come up with the right price
  • How realtors can help you with land deals

Mentioned in this episode:

Download episode transcript in PDF format here…

Joe:   Joe here. Real Estate Investing Mastery, and I got my good friends Foster and Jared here. And it's been, a couple of weeks since they were in Saint Louis. And we've been talking a little bit back and forth on text and Voxer, and they've been taking massive, massive action. Jared, how much mail have you sent so far?

Jared:   I think we've sent 3100 postcards in two weeks.

Joe:   Love it. 3000 something postcards in a couple of weeks. And a lead came in. Foster talk a little bit about this lead and we're going to look at it here in a second.

Foster:   Yeah I think the first thing that I would say, I was looking back at the reference ID to see what batch this lead was from, and it shows the patience game and it doesn't take a while. Right. I think these were this lead came from our first or second batch, which was two, two and a half weeks. And so you can't expect it to come in five days. It might. But also it's not a super long game where it's a month. Right? So two and a half weeks. I think that was great. We were patient saying if our range was correct, this one came in. It's exactly who we're looking for. A motivated seller who's just getting ready to pay taxes, has visited their property once since they bought it. The husband bought it. He's since deceased, lives out of the county, and just would rather have the money than pay money for something she's not using.

Joe:   Yeah, so this is so far we've gotten four leads from this campaign. I'm looking at Freedom Soft. We'll look at it in a minute. Right now, Foster, you talked to the seller and their situation is has been bought out a long time ago. He's recently deceased. Is that right?

Foster:   Correct. Seven years.

Joe:   And, so this. You talked to the seller and how did you discuss the price thing and how long did you talk to her?

Foster:   I touched base with her as soon as I could. Phone call wise, I was actually just driving, and I was had to do a dinner. And so I knew that I could call her in about two hours. Once I was in front of my computer and in my office. But I wanted to give her a call, at least let her know that I got her voicemail and I'm going to actively get back to her. So I gave her a call and one I just wanted to figure out her buying temperature so that I could prepare numbers in my head, and I could tell that her or her selling temperature was pretty high. So I chatted with her for about five minutes on the phone, told her the exact time I would call her back so that she could have her postcard in front of her so that she could be focused and everything, as well as me. Then that second call was 35 minutes and I first laid the outline like it says in the script, what this call is going to be and then what actions we're going to take after the call if everything goes well on both ends. She agreed. I started going to questions asking her about sewer, electric, water, road access, all of that. It's a pretty property number. Yeah, it's a pretty vacant property, so it doesn't have much. And she hasn't even been there. So her knowledge is very low and she would start to throw things out. Like she recognizes that the property isn't worth that much because of everything that I laid out that it doesn't have. I agreed with her, told her that the price range on a postcard was probably incorrect. Now, with this new information, she agreed. And then that price range was about 30 to 60 grand. I told her it's going to be more about 20 to 30 grand. And then we agreed. Finally, on about 17 grand, she said that she wouldn't take ten grand. I told her, okay, it's going to be about 15 grand. And she said, I could do that. If you sent me an offer about 15 grand, I would sign it. Good.

Joe:   And we don't know much about this property. I'm going to pull it up and we'll look at it here in a minute. It may be a good deal. It may not. It may be in an area that is complete wetland swamp, you know, who knows. But it's in a desirable county to good size property. It's in an area where there's a lot of transactions, so the chances of it being a good deal are pretty good. Also. And we talked about this already. I'm just kind of repeating myself. But sometimes when price priced is the data provider that we get, they tell us what they think the property's worth, and they do their best job with their algorithms to try to get that. But they may be way off and sometimes they don't. They can't tell if a property's on the water or in the water or in the middle of nowhere, if it has road access or not, things like that. So I'm going to pull it up here just to kind of show you the way I would look at the deal. But here's the great thing you got to remember too. The way our contract works is we have three months to close. And so sometimes you just don't know. We're just gonna take our best guess. We're going to get it under contract. Let the market tell us what they think the property's worth. If it's worth, if we buy it for 17, we try to sell it for 27. Are we going to get any interest or not? You will know within the first few weeks. In the first month, if we're getting a lot of calls or we're not getting any calls, we're going to find some local realtors. That will be our boots on the ground that can go look at it. So we want to try to get it under contract at the lowest price that we can, and then see what we can do, see if we can sell it, because we can back out of that contract or cancel it for any reason. Just so you all know that. So you sent me the GPS coordinates. Price says it's worth about 128. So in our range postcard, we suggested in our range postcard that we can offer between I don't remember what it was 20 and. 30,000, maybe or 30 and 40. 30 to.

Jared:   50%. So I think the post card was like 35 to 60.

Joe:   Okay.

Foster:   Yep. Exactly.

Joe:   All right. So that's great because that filters the calls out. Now you're only talking to people that are going to be in the same ballpark of where you need to be. All right. So I'm going to share my screen here I pulled the property up by GPS coordinates. And this is a property in this part of Florida. All right. North of Fort Myers. One of the first thing I noticed was you see developments over here and none over here. And this is some kind of wildlife refuge. The other thing I noticed is I'm a little I don't know if there's actual road access or not. So if we switch on to maps here. You see this lot here? Well, there's no roads, actually. Really. But there, if you switch on the satellite, there is this dirt road here. Don't be discouraged by any of that because it may not mean anything. And if they have development here, they're probably going to do some development here soon, someday in the future. What I like to do next is I'm going to pull this property up on map, right. It's called Id dot land. Now I'm just going to search by GPS coordinates. So it's this property right here. And one of the things I like to do, I want to see on this property, get some information about. It's two and a half acres. So it was last purchased in 1983. I don't know, yeah, I was sold they purchased it for $3,000 in 1983. The other thing I like to do here is I'm going to X out of here, and I'm going to go to overlays. And I'm going to add on FEMA floodplain. It's in a floodplain but everything is up in this area. If I zoom out the all the blue is FEMA floodplain. And all of these homes over here are in the floodplain, so not a big deal. I'm also going to scroll down and there's an option for wetlands. And you can see now this may be a little more concerning is it's now also in wetlands. And if you zoom out you can see these developments are not now. Here's the thing. These were just they were changed to not be wetlands. And it's not like they took this whole development and raised it ten feet into the air. These homes are still at the same elevation as these ones. Why is this area? But like right now, this property is in a wetland which once you just want to be more a little more conservative on what you're offering here. Okay. So this just is a way that I like to look at looking at these overlays, floodplains and wetlands. And when you're talking to the seller and maybe you already had this discussion, foster, you want to do you want to find out if they know if it's in a wetland and a floodplain. So for example, we gave them a range postcard and I'm talking to them. I might ask some, you don't know if the and even though I know it is I'm going to ask them. You don't know if the property is in a wetland or a floodplain, do you? And see what they say? Because then that gives you a reason to, you know, negotiate on the price even more. And it's also gives you another reason you could go back to the seller and renegotiate a lower price also if you wanted to. Well, let's see what similar properties are selling for in the area. I need to pull this property up on Redfin, but there's no address right for this property. So I'm actually going to zoom in on Google Maps, and I'm gonna get an address of one of these other properties like this one right here going to highlight. And there's the address I'm going to copy that address I'm going to paste it in Redfin because that's going to get me in the ballpark. I'm going to click on this map. I'm going to click on Nearby Homes for sale. And now I can zoom out a little bit and I can scroll over. So our property that we're looking at is right around here. All right. It's this one. If I can zoom in sometimes you get a little block there like that also by the way sometimes you can click on that. And if you see if it's off market, if that is the property right there, you can open it up in Redfin and sometimes see a history if it's ever been listed for sale or not. But so here what I'm going to do is I'm gonna start zooming out and I'm going to create a filter for just land. And ours is what did I say, two and a half.

Jared:   Two and half acres. Yeah.

Joe:   Two and a half acres. So I'm going to do another filter here for lot size. Let's do 1 to 4 acres. All right. So now I'm just looking at active for sales. I'm gonna start zooming out and see. Are there other similar properties currently listed for sale in that area? I'm not seeing any. So I'm wondering if something's wrong with my filter. I'm gonna say I'm just going to remove my filter again. My properties in the center of this map, I can zoom in and there it is, right zooming out now I'm getting some vacant lots that are for sale over here, but nothing's for sale over here. Let me zoom out again. I'm going to sort from low to high. Now these are little quarter acre lots. I'm going to go back here and do a filter for. This is interesting. If I do minimum half acre, minimum one acre, this is you get some really expensive properties here. This is six acres, 80 acres, 80 acres. So let's go back and do a multi maximum five acres. So we're looking for 1 to 5 acres. There's nothing there. Let's zoom out one more time. This maybe is our closest comp. That's for active. Now let's switch to sold last three months. Not much six months a few things last year not a lot.

Foster:   When I did it I did a filter of under contract and pending and a lot came up that were under contract.

Joe:   Okay. This one right here, 199. Okay. That's good. This is double the size here. Let's take a look at this property and let's look at the images to see what kind of property it is. Definitely has road access. I'm going to guess it's real close to being in a wetland or floodplain because of these issues here. Not a big deal again, but it's next to some residences or some structures.

Jared:   Can you put that on Google Maps and. Compared to where that is to our property.

Joe:   Yeah, well, she's a little.

Foster:   Here, a little north.

Joe:   See, it's that red one right there, and we're right here. So it's maybe a mile or two. So that's a good that's an interesting comp. Why this one has not gone under contract. And this one has. Let's look at these pictures. Okay. This is a real similar area to what we were just looking at. We have houses over here and nothing over here. Right. So their property that they're trying to sell is in this stuff. It just hasn't been developed yet. It maybe probably will be developed someday in the future. Right. But it just hasn't yet. So somebody's buying here. It's more of a, speculative play. They want to just have a place to park their money. And in ten, 20, 30 years, they'll develop it and it'll be worth a lot more. So this property is real similar to what we're looking at. And they're asking 84 grand. And it's been on the market for just eight days.

Jared:   Whereas that compared to ours.

Joe:   Ours is right here. Okay. That one's right there. And their five acres were two and a half acres. But I have a feeling they'll be interesting to see whether that sales or not. So I'm just switching now between for sale and solds last six months. Let's go back to the past year. Now there is this property that's sold for ten grand just north of our.

Jared:   Same amount of money.

Joe:   Yeah, it might have been an investor to see if we can tell how long it was under contract. I'm going to click on sales and tax history. So this sold in less than a month. So that's a good sign. They had it listed for 79. It sold pretty quickly for ten grand. It might have been an investor who bought I don't know. But one of the first things you'll need to do is call this agent. Call the listing agent right here and call the buyer's agent, Carrie, and just tell her, hey, we've got another property close to one you just sold a few months ago. Is your is your. Do you have any buyers looking for another deal like that? And also call the listing agent, but they're going to be able to tell you, hey, you know what? Yeah, I got a buyer, but they won't pay more than this, so you're going to know. Okay, well, maybe I'm too high. Maybe I need to go back to the seller. Renegotiate like that property's real close, but it did sell pretty quickly within the last 3 or 4 months. Let's zoom out. It's the same size though.

Jared:   It sold for 10,000. So that's not good for where we're at now.

Joe:   Unless maybe right buyers, you might want to talk to the seller again and say, you know I was looking and I see there's a property real close nearby that sold for ten grand just like yours in that same area. And I'm a little concerned that this is kind of a bad area because there's no development at all over here.

Jared:   And it's a wetland.

Joe:   It's a wetland. There's a bunch of homes over here, but nothing over here, and there's no easy road access. This is something that you need to talk to her about. There's no. If I go into Street View, your property is right here. There's no easy road to get to it. Now, none of these properties have roads to it, so it's not a deal killer. And just see at. Tell her I'm concerned about being in a wetland. I'm concerned about this other property I see that sold for ten grand recently. And I'm concerned that there's no easy road access. What's the absolute lowest you would take? So you're still not making an offer? Just asking her. Bringing up your concerns. See what she can say. I would still suggest getting it under contract at the lowest price that you can, because you never know. You may be able to sell it for 5 or 10 grand more. So the next step is let's find some realtors who have sold vacant land in this area. So I'm gonna start zooming out and I'm just going to look, I'm gonna remove my, acreage filters here. No min, no Max. And there's a whole crap ton of realtors that have sold properties up here. Let's just look in the last.

Jared:   But you can do. This is land only. Yeah.

Joe:   Okay, so I'm here in red and I'm looking at sold land only, and there's no acreage filters here. And so here's 38 properties that have sold recently in the area. You might call this guy this is a 40 acre lot. And scroll down you'll see the listing agent and the buyers. Well, sometimes you see the buyer's agent up there, but call the listing agent and see if they would have any interest. And they know any buyers for your property. And then you can also go back here. I would start calling the, the realtors that sold properties on the higher end of things, but I would call at least a dozen of these agents and, you know, it's listed property because there's a picture on it. If you click on the picture, you scroll down, you see the listing agent and the sometimes you see the buyer's agent. But here's a phone number. I'm not sure where that goes. And just tell them what you've got. I think I got a good deal, but I think I might be on the wrong side of the tracks. And I want to know if you have a buyer for this property. I don't have an agent representing me. I'll pay you 10% commissions if you can bring me a buyer and maybe tell me if this is a if I have a good deal or not yet.

Jared:   When you go back to the seller and get a lower price, in my opinion maybe.

Joe:   Yeah.

Jared:   I think you'll do it for lower given the new ammunition. Foster has didn't get in under contract, so I think we could do by tomorrow if not today. Ever sign that and then hit the listing?

Joe:   Yeah. And Foster, I would say I would call some of these realtors today if you can, just to get a feel for the area. Tell me. I'm from Texas. My business partner and I were buying some land out in this area, and I see you sold a property here recently, and I don't have an agent representing me that always tells. That's always brings money into their years, right? They're thinking, oh, okay, this guy, I can make some money. You can say we pay generous commissions, we're in the business, we buy and sell vacant land. And I found a good deal, I think. But I'm wondering about where it is. And by the way, if you can help us sell this deal, after we buy it, we pay 10% commissions. We'll make sure you're taken care of, and then you can ask him questions. Can you tell me a little bit about this area where it is? Over here. Are we going to be able to sell it? What price do you think we would have to sell it for. The other thing I'd say is talk to them in terms of sometimes we buy property and sell it with owner financing. Just like a landlord buys a rental property and sells it for cash flow. We do the same with vacant land. So what price would I need to price this vacant lot if we were to sell it? With owner financing, you may need to call 10 or 12 realtors. But you're calling these realtors who have recently sold land in the area. They understand the area, they know where it's at, and they may tell you, stay away from this area. Or they may say, yeah, there's not as many buyers that are buying over there, but I can probably find you a buyer if it's priced right. Makes sense.

Jared:   Great stuff.

Joe:   Well, here's the cool thing, right? You guys are on the right track. You're sending a lot of marketing. You got to be patient. You got kind of lucky getting a good lead that quickly. Maybe it's not as good as what we thought it was. Still get it under contract at the lowest price you can. Make sure you tell the seller, I don't know if this is going to work or not, but we're going to do some due diligence. We're going to try to figure it out. Then you buy some time. You may need to go back and cancel the agreement after you sign. And that's totally fine. You may have to go back and negotiate a lower price, so don't let that bother you. When you're going into a new market, you don't know anything about it. All right. Cool. Yeah. Any other questions?

Foster:   No. That is so awesome. That's so helpful. I'm going to get on that.

Joe:   Awesome. I'm excited for you guys. All right. And I'll keep in touch.

Jared:   Do this again. Keep doing this for a living. You got a future, buddy. You got a future.

Joe:   All right, guys. We'll see you soon. Bye bye.

 

 

 

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