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We’re back with another coaching call with my buddies Foster and Jared. They have two properties under contract, and we get into how their direct mail campaign is doing. They’re crushing it with letters and postcards and are really gaining some momentum. We talk about what else they have in the pipeline and some tips on how they were able to get good lists of real estate agents. We also discuss how you can find realtors through sites like Redfin and Zillow.

We talk about closing deals and having the funds to do it. I provide some tips on what to say to realtors and buyers to make things go smoothly. We go over how to fund deals with your own money or investor money and how to handle negotiations. Some buyers will ask about land surveys, and we discuss how to handle that as well. Jared and Foster are doing a tremendous job, and they’ll be back soon with another update.

Watch and Learn:




Listen and learn:

What’s inside:

  • An update on Jared and Foster’s land deals
  • How to work with realtors
  • How to handle land surveys

Mentioned in this episode:

Download episode transcript in PDF format here…

Joe:   Joe McCall here. What's going on guys? This is the Real Estate Investing Mastery podcast. And we got a quick little simple coaching call with my two friends, Jared and Foster. But, Foster, hope you're doing well, man. What 1 or 2 things do you hope to accomplish on this call?

Foster:   Yeah. So I'd say the biggest thing is I'm at the, point in your modules of selling, we have two properties under contract, so I'm at the point, speaking of, realtors always sent out handwritten letters, so we're getting a lot of buyers calling us about 2 to 3 buyers a day.

Joe:   Well, oh, let's talk about this because people don't believe me that this works. What kind of letters to buyers did you send?

Foster:   Once on yellow paper with red ink.

Joe:   So handwritten yellow letters with red ink, was it?

Jared:   I can't tell you how I did it, because I actually did that for Foster. I took your letter from your module. And then I had my wife write it out because my handwriting is terrible, but she wrote it out on a yellow legal notepad with lines. And then what we did is we took it to, I think, Office Depot and made, forget how many investors there was. Do you remember what the number was over there?

Foster:   Like 240, 960?

Jared:   Okay. So we made 200 colored copies. So it was, you know, colored copy. And it looked like when you looked at the color copy, when I first looked at it, I thought it was the actual letter that she handwritten. So color copied. And then fortunately, I have an awesome wife and I was going to have my daughter do it, maybe pay her, but it didn't work out. So my wife hand wrote on white envelopes all the addresses, and then we put a return address in the top left hand corner. Didn't put a name, but a return address, and we put a regular stamp. She folded it into four, so it was kind of thick. And my wife was like, this is stupid, why are we folding fours? It looks dumb. I said, let's go.

Joe:   Pull it up.

Jared:   She crumpled it up first and then fold it in fours. She goes, this is really dumb. I say, this is what I said to Joe McCall has done $10 million and funnels. He knows what he's talking about. So let's just trust him. So we do a couple of the Fullerton fours, and then I printed out a quarter page of the Google satellite image. And then I put a square around the property and we inserted that. So they had a map of where that property was. So we mailed that to about 160 investors that we got on our last call from you. When you went through the process of finding investors that have bought a property that doesn't live there, etc., etc. you can talk about that and then foster can take it from there of how many calls we've got. And we listen to his cell phone, so they're calling him directly.

Joe:   That's so funny because Jared's wife is my wife's sister, so I know I'm going to hear about this.

Jared:   All right. Not if we sell a property. Well, you don't sell a property. You're definitely hear about it for years, but we're going to sell multiple properties. So once he gets that check cashed, she probably won't talk about it again.

Joe:   All right, I love it. So, foster, how many calls have you gotten from buyers? Approximately.

Foster:   I've gotten six, six calls.

Joe:   And when did the mail hit, do you think.

Foster:   Last Thursday or Friday? Yeah, it's been about a week. Okay. I think I think I got my first call on Friday.

Joe:   What was the, feedback, the general feedback from those calls.

Foster:   Good. Yeah. They just said. Hey, man, I got your letter in the mail about a five acre lot. Tell me about it. They just immediately ask for the address, and honestly, they tell me, I'll be able to tell you yes or no here in about, you know, 30 minutes, because obviously they're all pretty big real estate investors. And they know what they're doing. They know the yeah, they know what they're looking for. And so I give them the coordinates, I give them the, partial ID number, and then they look it up and they get back to me. I've had a couple get back to me and say, you know, can't do it. Not what I'm looking for because of the lack of road access. Okay. I think it would have sold to both buyers. Absolutely. If I had road access, but they, they just said that they can't get their dump trucks back there and everything. They can't get a dozer to clear everything.

Joe:   So. Okay, so that's good to know, right? This is why we, have three months to close in our contract. Because sometimes we don't know these things when you make the offers, but when you start getting feedback from the buyers that there's not access or something's wrong with it or it's overpriced, you can go back to the seller and renegotiate. Do you think if the if the price was lower, they would buy it still? Or is that just an absolute deal killer.

Foster:   For one of it was absolutely a deal killer. I mean, he offered me 20 grand. He was like, the only way that I would even consider is, is if I got it for, I mean, lower than low.

Joe:   What are you having under contract for again?

Foster:   36.

Joe:   Do you have any buyer that's interested in it now?

Foster:   I have three that are actively doing due diligence and continue to text me back with questions that haven't said a hard no. I had one guy call me twice yesterday, the same guy, and he was asking me about why I said x name on the ownership of the record, and so I told him that it's under contract. So then he was like, oh, so this is in. Simon of contract. He was like, okay, let me, let me, let me get back to you. Let me go back to you. So he was just doing his due diligence, so he sounded pretty serious.

Joe:   So what are you trying to advertise? What are you trying to get for.

Foster:   92?

Joe:   Nice, man. You got a lot of room in there. Okay, so, you have it under contract with the seller. You've only. The only marketing you've done is through letters to other nearby buyers. But you've contacted some realtors, right? Yeah.

Foster:   I have a list of realtors that one of our helpers, that Jared knows put together for us. So I've been emailing them and then calling them. It's been hard to, get them to pick up and then to get them to stay on the line because they think it's a scam, or they think it's a foreign caller, and they sounds like they get plenty of calls to their cell phone that's advertised on Google.

Jared:   So let me do a quick Joe, just for your, your listeners, and students of what I did to get that list. So I have someone that I've worked with for multiple projects. I've found them through Upwork. He's in another country. And I just said, here is what we're looking for. We're looking for real estate agents in this county. We want their address, phone number and email. We gave them kind of a starter life that we got from you. So they kind of knows what he's looking for. I think I pay $39, from a data mine. And how many real estate agents, phone numbers and emails that he shoot you with? Foster, 130.

Joe:   Okay, well, that's good, but there's a better way to do this. And, can I show you guys how to find. And maybe you already did this.

Jared:   Well, we did that, but I wanted their email addresses as well, and I didn't want to do the work that you do today to mine. I was paying 35 bucks a month, a data mine.

Joe:   So did they find all the realtors in that county or the realtors that have sold land near that property?

Jared:   We used whatever the two calls ago you did this for showed us how to find the real estate agents. I sent them that information. So use that information. And then he just put it into a spreadsheet. He grabbed it from the, you know, website, grab their name, their phone number, email, because you have all that from what you did. And then he data mined, their address in case it wasn't on that sheet. Any data mine their email address. So it is exactly your process. We just wanted to put you in one central location that we can import into freedom software real easily. And we didn't want to do the work for it.

Foster:   And to answer your question, Joe, it was a list of all the realtors, that are part of real estate or, realty groups in that area, not necessarily just within the exact area of our property, but it was all of Charlotte County.

Joe:   Okay. Well, there is a website that I've been playing with lately. I mean, if you go to homes.com, a lot of times you can look up properties. Well, let me just show you and I know you're on your phone. Maybe it's hard to see, but let me show you what I'm talking about here because they give you the realtors emails. Let's just say we're looking at Lee County here. I'm gonnago to home, type land. I'm at homes.com again and I want to go to.

Foster:   So I'm there.

Joe:   With you and land now homes.com doesn't let you choose. Like how long ago it was sold I don't think. Let me check here. It's just recent. Sold. That's all I know. All right. But we're looking at land. Let's zoom in to, an area here where there's a lot of recent solds. All right, so here's a lot of recent solds. And, on some of these, you can find the realtors contact information. So I'm going to sort this by recent sales. The most recent are at the top. So this property for example I scroll down see that you get the listing agent and the buyer's agents. But the cool thing about homes.com they give you the contact information phone number in the emails right here. These are agents that have sold vacant land or houses or whatever right in that area. Let's look at the next one. Not everyone has this information, but most of them do better yet. Like if you can see here in Redfin, you see the recent sold I'm looking at sold in the last three months. If you click on any one of these, you'll find the realtor right here. Craig Parks is the listing agent, right. And you can just Google them, and go into any information that you see here, and you'll see their phone number. And you might need to contact them through their website. But yeah, this way I just don't want you calling an agent. This is my whole point in bringing all this up. I don't want you calling an agent that sold $1 million house, and you're trying to sell, $50,000 vacant lot. You want to call agents that are that know the buyers who are looking for vacant land, cheap vacant land. And they're okay with getting just a couple thousand dollars in commission. Right. Because you're they might be looking at it like, oh, you're wasting my time. And it sounds too good to be true. If you're going to be paying me 10% commissions on just making some phone calls, you understand, I want to make sure you're spending your time calling the agents who have sold vacant land recently in that area, and call as many of them as you can. So look at homes.com, Zillow.com, redfin.com and try to find those. And most of the time you can find their contact information with just a little bit of digging.

Jared:   I was going to ask Foster, are you having many of the agents that we have on the list that aren't from. With land or most or all that you get ahold of. Are they experienced in land properties?

Foster:   Patty, the one that I am really working with is very experienced, and she said that she's got a lot of clients looking exactly for this and especially five acres. And they've got a database of a lot of investors before they even listed on the MLS. So, yeah, I've run into a couple who are kind of, skeptical about having it under assignment of contract and vacant land with no road access. But then some are like, yeah, I've got some investors.

Joe:   Well, that's another important thing to hear. Like, you can you guys can close on it, right? You have the funds, you can close on it. And assignment means and I know you already know this, but an assignment means at closing, you're going to just assign your contract to the end buyer, and there'll be one closing. And then you get paid as an assignment fee at the end. It's just a cash transaction is not a big deal. Sometimes though, it's better easier to do what's called a double close. And so that means you're going to buy it with your own money or I have we have friends that lend us money called transactional funding. They lend you money for one day, you buy it, you close on it, and then you turn around and you sell it immediately the same day to your end buyer. That's called a double close or back to back closing. You close on the A to B, and then you immediately close on the B to C. Sometimes that involves extra closing costs that are not the frustrating, but usually for me, if it's an assignment that's under ten grand, I'll try to do an assignment. It's not a big deal, but if it's over ten grand, sometimes you're n buyer has a little heartburn and he's writing you an assignment check for 30 $40,000. He's buying it for 80, knows that you're buying it for 30, whatever. And so he's going to have some heartburn, maybe that he you're making so much money off of him. Right. So sometimes it's better in those cases to just close on it. But you need to be honest with these guys. You need to tell them, listen, we are investors in Texas. This is a property we got under contract to buy it. We don't. This is what I say when I'm talking to realtors and I'm talking to other buyers. This is what I say. I said, listen, I'm an investor, I'm a wholesaler, and I've got this great deal under contract. And you get to play a little hardball like you got to make them come to you. Right? So I say, I don't know what I'm going to do with this deal yet. I may buy it and hold it and keep it. Just sell it with seller financing. I've got tons of people knocking on my door right now telling me that they want it, so it's going to go fast whether I keep it or I sell it to someone else, I don't know, but if you're interested, might be a good deal. If not, not a big deal. Don't worry about it. If it's totally cool, if you say no, I've got 20 other people that want this deal. You may see what I'm doing there. Right? So I'm saying I don't know what I want to do with this yet. I might buy it and hold on to it. I think it's a really good deal. I might just flip it and sell it to somebody else. It's probably worth 120. I'm willing to sell it for 90. I don't know if I'm. I don't know what I'm going to do with it. Yeah. So if I'm talking to a realtor, I might say to them, do you have a buyer who might be interested in it? I think I want to sell it for 90,000. That's all I say. And so they know I haven't bought it yet. I have it under contract. They know I have some time to close. I'm just waiting to see. I'm trying to decide what I want to do with it. Then when they say, yeah, I've got a buyer, then we start talking about, okay, how are we going to do this? And then I start talking about, well, there's different ways we can go about this. If I can just do an assignment that will save me on closing costs, and I won't have to use any of my private investors money, so it'll save me on interest. So I'm, I'm willing to sell it if we can do it. An assignment for 90 grand. But if we're going to do a double close and I need to pay extra closing costs, and I need to use pay my private investor for the interest for their money, then I'm going to have to sell it for $95,000. Doesn't matter to me what you want to do, but do you want to buy it for 95 or 90 something like that? Right. So I'm telling them, like if it's going to be a lot easier if we do an assignment, they're probably going to say, okay, yeah, we can just do an assignment. I want to say, are you sure? Do you have a title company that won't mind us doing an assignment? And I want to make sure before I tell you what my assignment fee is, I want to make sure you're okay with 90 grand. So sometimes the end buyer or the realtor will say, well, what's your assignment fee? How much are you going to make on that? Right. And then you're going to say, I'll be honest with you, I'm going to make a lot. I want to make a lot of money on this deal. But before I tell you what my assignment fee is, let me tell you. Let me ask you a question first. Does it really matter if you can buy if it's a good deal at 90 grand, does it matter what my assignment fee is? So would you be willing or do you think 90,000 is a good price? Is a fair price. Because if not, that's fine. Just tell me no yes or no. So you want to get a verbal commitment from them. That 90 grand is a fair price because they know it's worth 120 or whatever. Then you can talk about the assignment fee if you want. The largest assignment fee I've ever done was $42,000, which surprised me. We were really nervous. They invited, they're going to freak out. We were doing this with a realtor and they weren't exactly happy about it. But they knew at the end of the day they got a really good deal, right? I was going to be making that money anyway. They knew if they didn't want to do an assignment, we would have done a double close, but then it would have cost them more money. So do you see the kind of balancing act you got to play there? You don't want them to know that you're immediately right out. You're looking for a $40,000 assignment that might freak them out. Sometimes in that case, it's just better to go ahead and close on it. You know, Jared, I know you're loaded. You could use your own money if you. Yeah, I'm just joking, because I know you aren't. I've seen the clothes you wear and the way you and your golf clubs.

Jared:   Okay. Thank you. We can use my own money, and I don't mind doing that.

Joe:   So if you use your own money. Or you could use an investor money, but, like, it's still the same thing. There's a cost of capital, right, Jared. Like, if the if you did use your money, it is going to be tied up. There's a cost to that. And so I'm telling the realtor, my end buyer you can buy it for 90. If we do an assignment. If I double close it'll be 95. So what? It doesn't matter to me. What would you rather do? But I know at 95, it's still a really good deal. Makes sense. Yeah.

Jared:   I think you should incorporate that, Foster. So you, eliminate any discomfort with assignment? Only you can say we're open to a lot of different options. When you're talking to the real estate agents, we might double close. I haven't bought it yet. It's under an under contract, so I might assign it. Really just depends upon the scenario, who we sell it to, what the price is, etc..

Joe:   I think we may just keep it. This is such a smoking hot deal. We may just keep it and sell it with seller financing, but just hold on to it. We don't know yet. It just kind of depends. Soyou don't want to come across as a desperate seller trying to even though that's what your letter was and that's why you got so many calls.

Foster:   Well, that's what I was going to ask is they call and I've already played my cards.

Joe:   Well, kinda. But they also know what you're doing, right? They know you're a wholesaler. And so what? I've used that letter before and it's funny, I get a lot of calls and they'll say something like, hey, man, I know what you're doing. I know you're a wholesaler. I just want to say I love the letter and I'm going to use it myself. And, you know, it's kind of we kind of make a joke out of it. So they know that they're being played a little bit, but it works. It got them to call you, so you just got to have fun with it and be honest. You know, you always want to be truthful and honest and be willing to pull away and take the deal away from them and give them permission to say no. And, you know, and I also the other thing I wanted to say, too, is if they're saying no because of road access or something's wrong with the property, you really need to dig deep into like, okay, well, listen, in spite of this problem, whatever. What price is there a price that you would be interested in this deal. Right. And see what they say because they may say why the guy can't buy for 90, but I buy it for 50 and you're buying it for 33 or whatever. That's still a nice spread, $17,000 spread, especially if you do it as an assignment. You could sell that buyer at that point. Well, listen, if we buy it at 50 and we do an assignment agreement and I do sell it to you for 50, what would you want to do then? Or could we do an agreement. Could we sign an agreement together today. So like do the if then.

Foster:   You wouldn't you wouldn't do a counter and that like say let's do 65.

Joe:   Oh sure I would. Right. But I want to get a commitment from them. I want to know, okay, if I agree to this price or if we agree, you know, if I can negotiate on the price, would you be willing to do a deal today? So like before you go to the final number and ask them that question. Well, if I, if I do negotiate on the price, if I can come down on the price a little bit, could we do a deal today? Here's what you want to get that kind of an upfront commitment from them to make sure they're serious and that you're not just wasting each other's time.

Jared:   That's smart.

Foster:   Awesome, Joe. That's really good. Do you care if I rattle off a couple questions that I just ran it on first, and I'm sure it's in your module. And I'm getting there and the, selling parts, but maybe just a couple sentence answers, draft the top of your head that I can just, jot down and then explore in your modules. Yeah. So the biggest. So first one is realtors who respond, to the postcards and reach out to me as a lead. How, how much time do you invest calling them? Because I know there's not a lot of wiggle room. Probably if it's listed with a realtor, you can't talk them down like you can, an actual seller.

Joe:   You'll be shocked. That one deal I was just telling you about where we did the $42,000 assignment for or something like that, that was listed with an agent, and it was listed for 340, and we made an offer at 215. So it's listed for 340 grand. Our offer was 215,000, and we sold it for like 280 or something like that. So never be afraid. Not afraid, but like never be hesitant to offer a low ball offer even with a listed property. Because many times I tell the realtors, listen, number one, I don't have an agent representing me. So if you want, you can represent me and get both sides of the commission. A lot of times realtors can do that, sometimes they can't, but if they can't do it, maybe somebody else in their office in their brokerage can do it. All right. So I let them know if you can help me put this deal together. You can make more money. You can make both sides of the commission. And I warned them in advance. Listen, I'm going to make a low ball offer. I'm not a retail buyer. I'm looking at comps here. I see a bunch of properties that have sold for half of what your client is listing for. So if I make an offer, I'm going to be somewhere in this price range. So they know that the realtor knows that. But this is a property many times that it's been listed for three months. Six months and that realtor knows it's overpriced. It's priced way too high. So I try to get the realtor to understand I'm not a full retail buyer. I'm going to make a lowball offer, but it's totally okay to say no. Can you at least you don't have to do the paperwork, but at least just call the seller and verbally ask them if they would accept something in this price range, and you'll be surprised. That doesn't happen all the time, but you will find sellers that will discount their property 50% or more because they're just done with it. They're tired of it and they're like, fine. And then I tell the realtor, one more thing. I say, listen, if anything, my offer might help that seller come back down to earth and be willing to reduce their price, you know, because and then I'll help you sell it faster because they obviously think their property is worth way more than it is. The my lowball offer may help them eventually lower it so they can actually sell it. So you can make some commission on it. Does that make sense? I'm trying to trying to paint a picture to that realtor that it's going to actually eventually help them in the long run, even if the seller says no by making my my offer anyway, at least verbally make my offer verbally to the seller. So I think you should always talk to these agents while you're on the phone. Look at Redfin, look at similar properties in the area and say, listen, I know they're asking 50, but I see some similar properties a few miles away. They're asking 30 for it. So is 50 grand a fair price? Why would I want to pay 50 when I can buy this one for 30? Look, I sold in the last year and say, man, I, I see I'm sure your property is really nice. I understand your client, you know, maybe it's got great views or something, but be honest with me. If you were in my shoes, would you pay 50 grand for this property when there's a bunch of these solds that sold for 10 or 20 in that area, I just ask the questions and then a lot of times realtors just say, well, no, they've rejected offers that have been higher than yours. So I still push it. And I say, well, listen, can you just at least make a verbal just can you just you don't have to write up any contracts, just email them or text them and ask them if they would accept my offer or what is the absolute least they would take. And depending on what the realtor says, you know, you can move on from there. But I'd still follow up. Then every 30 days, call that realtor back, text them, email them, hey, is that property sold yet? Sometimes the sellers just need time to cook, right? And that realtors probably more frustrated than anybody that that house hasn't sold yet because. Or that vacant lot hasn't sold yet because it's been sitting on the market for six months. They're tired of dealing with the seller. The seller's complaining that the realtor is not doing their job and it hasn't sold yet because, you know, so does that make sense? Is that helpful at all?

Foster:   It does. Yep.

Joe:   A lot of times those realtors know of other off market properties. So you always end those conversations with those agents. Well listen I pay generous commissions. I don't have a realtor representing me. I pay up to 10% commissions. If you have any off market vacant land deals, do you have any off market vacant land deals right now? If you see one and find one in the future, would you mind letting me know? So like I'm always asking them, do you have other deals? And then can I send you my contact information? So if you see another one in the future, an off market discounted lot, will you let me know? I'll pay you 10% commissions on me, so always leave that door open.

Jared:   Nice. The question I had was I love all the teaching you did on communicating with real estate, and I think this is going to go into pastor's next question. But even if they say this is what it is, you try to talk them down and you don't have much confidence that they're going to accept the offer because your offer is 30% of what they're asking, 40%. You still write up the offer and email it over anyway, right? Yeah.

Joe:   And send it in the physical mail because emails get lost. They go into spam. But I always send a letter in the physical mail with my offer, and I keep on following up, because then when you follow up, your follow up is more powerful because it's, hey, I'm following up on that offer I sent you 30 days ago, right? Have you sold it yet? And you'll be shocked, like I have a friend one time who, sent a letter. She talked to a. He talked to this lady who was elderly about buying her house, and he sent her an offer in the mail. And, at the bottom of the letter of that offer, it said, please keep this for future reference. If you if your circumstances ever change. So sure enough, like three years later, she passed away. Unfortunately, her kids were going through her files and she had a folder called House stuff or whatever, and that letter was in there and the kids called this investor back and said, hey, do you remember sending this offer to our mother for this property at address? Is your offer still good? And he I don't remember what he said exactly, but he says something to the effect of yeah, I remember. That's right. Although he didn't but like yeah. So probably tell me a little bit more about it. So like you've got to get it in writing because maybe they'll keep it, maybe they'll throw it away. But now you're doing something that and you're in a competitive market. None of your competition is doing this right. Not your competition is not making an offer to every seller that they talk to. They're not making written offers after the after they talk to the sellers and they're not following up every 30 days religiously. So if you can just do those three things, you're going to stand above your competition in a very competitive market. And you're going to do more deals than everybody else eventually over time. Because now, every single month, you're following up with these people, right? You're sending them another offer in the mail. You're sending them an email, a voicemail and a text, and you're just bothering them and pestering them. Hey, have you sold your property yet? I'm still interested. Maybe I can offer you a little more. Next time, maybe bump the offer up 5% or something like that.

Foster:   Awesome. So I don't have a lot of info. Next question. I've got a lot of info on the properties other than Google Maps. Especially the ones that I have under contract right now. Is it worth? And I get a lot of asking of when these buyers call if I've had a survey or go out, and get information about a wetland. I said that I've done my due diligence on these websites and stuff, and I can see that it's not in wetland. But occasionally some websites show that the bottom section of the property is a little bit wetland. And a lot of these, actually a couple of these buyers have said you won't know if it's really in wetlands unless you have a surveyor out there.

Joe:   So go get one. Not you. I'm saying you say that to them. So the only due diligence I do is what I can do online. So I use map, right? Or landed or whatever I'd land. You can tell from there through the layers, whether it's at FEMA, floodplain or wetlands. But when it comes to a set, some areas you do a lot of, perc tests which test the soil to see if it can have septic systems or not. Or you do a survey to determine the boundaries or determine if it's actually in a wetland or not. Some areas you need to do environmental studies to see if there's any endangered species there. The reason why you don't have to do that, foster, is because you're not asking top dollar for these properties. You're selling these deals at a significant discount. It's just like a house, right? If I'm wholesaling a house, I'm buying it at $0.50 on the dollar. I'm selling it at $0.60 on the dollar. I'm selling it at such a good deal that in buyers not coming back to me and say, hey, you need to clean this property up, you need to replace the plumbing and fix no, you're selling it at a discount to somebody else who they will do that due diligence. So if they're asking for a survey or a Perc test or, you know, whatever, you can say, listen, I'm just telling you everything I know. It doesn't sound to me like this is a deal you're interested in. That's fine. But if you want to figure that stuff out, feel free to go ahead and do your own survey. Feel free to do it. Go ahead and do your own perc test or go look at the property yourself. And this is another reason why it's so important to get pictures. So as soon as you can, you should be hiring a photographer to go take pictures of the property and take drone footage of the property. All right, because that's going to help you sell these deals a lot faster. That way you can send these buyers a link to view the pictures or, you know, a place on your website or something like that. But that's the only due diligence, extra stuff that you need to do. Like, you should also be checking to make sure that the contract you have signed is that signed by the actual owner on title in the county records? That's a good thing that you could do. You could make sure that the taxes are paid. Other than that, you know you're sending the paperwork to the title company and they're going to be looking at eventually. Is the title clear or not? If the buyer's asking for that stuff or they're demanding that you provide it, it might not be a good enough deal. Maybe you need to lower your price a little bit too. They may still ask for it, but it's like, listen, this is why I'm discounting it and this is why I'm offering it so cheap because we're not doing any of that stuff. If you want to do it yourself, feel free to go ahead and survey.

Jared:   How much does that usually cost Joe, just for a reference point.

Joe:   500, a thousand bucks, maybe more, depending on how I would ask some of those local realtors that sell land or less land in the area, how much it would cost. If they know of anybody, they could recommend somebody, you know, one thing you could do is you could, you know, from realtors or that you're talking to other people in the area. And the more deals you do here, the more you'll learn about this, as you could tell that other buyer, hey, listen, I'm not doing a survey, but here are some names and phone numbers of some companies that can do the survey for you. And they quoted me a price of 750 bucks. They can do it for you if you want. But some of these things can cost, you know, a thousand, $2,000.

Jared:   Gotcha, gotcha. And then how much does it typically cost to get someone to do drones and pictures is I assume it's 3 to $500.

Joe:   Yeah. We use thumbtack a lot to find people that do that. Sometimes if you call some of these listing agents who list the land, you can go and find listings with aerial photography, and you could call those agents up and ask them who their photographer was that did those.

Jared:   And when you do a survey, did that survey or also do similar pictures? Probably not a drone, but did they do pictures as well?

Joe:  I've never done a survey.

Jared:   Okay. Now I already had one done.

Joe:   No, I've never had one done for my own personal residence. Yeah, the line here, but gotcha.

 

Jared:   I'm just wondering if you find a survey the 750 and the drone was 500 to me. Why wouldn't you just pay the 250 and get the survey? Since it's a little bit, I assume they take some pictures. Why wouldn't you spin it to 50? I'm assuming it's 750.

Joe:   Yeah, I you know, I'm not the guy to ask how much surveys cost, because I've never done. In fact, I've done them here in Missouri. But like and here's the other thing. Maybe it's worth it if you're going to be making 50 grand on this deal. Okay. Maybe it is okay to do it. That's a judgment call you'll have to make. I'm just saying, in our experience, we've always pass that on to the other buyer.

Foster:   Okay. I had one buyer that said, no, no, no, I'll get a survey. I'll get Sara out there.

Joe:   A lot of them could do it themselves. They know guys. They have friends that can go do it for them for just a few hundred bucks. A lot cheaper than what you can get it done for. Yeah.

Jared:   Makes sense. Makes sense.

Foster:   Cool. Yeah. So obviously road access is a really big deal. I won't say that's the only that's the only thing that they are telling me. That's the only obstacle that I'm running into.

Joe:   That's usually the number one deal killer in a vacant land. You road access. And so you may have to go back to the seller and even offer a lower price. And you can tell them we didn't realize that the road access was this bad or that there was none. But sometimes, you know, if the price is right, you could sell it, you know, and maybe instead of making a $40,000 wholesale fee, you just make only ten, which is still really good, right? That's just kind of depends on the deal. These buyers that you're talking to, I keep on pressing them. Tell them, listen, what price would make you wet your pants and drop everything and make an offer right now on this property. Right. Like, what price would you buy you interested in this for? And if you've talked to enough realtors and buyers, they'll tell you, you know, and then now, you know, you can go back to the seller. Either cancel the agreement or negotiate a lower price.

Foster:   Cool. And that goes into my next, question. And I guess it is just being upfront with who we bought it from. And it's obviously upfront in the contract. And I've made it verbally out front, especially with one of them. But these two sisters have emailed me, they emailed me yesterday and said, you know, I haven't heard from you since you signed the contract. How fast are you going to close? And so I sent them back an email. What kind of contact do you like to have with those you're under contract with?

Joe:   That's a good question. And the more the better to just let them know you haven't forgotten. You've not dropped off the planet. So I always try to make sure my sellers know that I'm an investor and I'm not buying this property for myself, and I'm going to need every bit of three months for my due diligence. I tell them I a lot of times I sell my deals with seller financing to other people. I have not been to the property. I'm not even going to ever go to the property. We're going to have photographers go there. I'm going to have realtors go there. I'm going to have buyers go there and look at it. So I'm going to need every day of that three months. I'll keep you updated and posted on every how everything's going. If there's ever any problem, I will let you know. And it's good to maybe just once a week, every couple weeks, send the seller an email, let them know you know you're still working on it. Things are going well. You're still on schedule, whatever you want to say. So it's it's important to have that open communication because sometimes too, these sellers are getting letters from other investors. Right. And they may even get an offering that's higher than yours. And so they want to know that you're still working on buying it. And again, it depends. If it's a smokin hot deal, maybe you should go ahead and close on it now. Close on it as soon as possible. If you're if it's questionable, you don't know because there's no access, then it just depends on, you know, the feedback you're getting from the realtors and their buyers. And if you can sense that your seller there's they're starting to ghost you. They're starting to ask a lot of questions or acting nervous or whatever. Maybe if it's a good smoking hot deal, you go ahead and close on it and just get that over with if you can. It just kind of depends on the deal and where you're at. But does that help? Does that make sense?

Foster:   Yeah it does. Oh yeah. And I've got realtors asking if I want them to post it on the MLS. I recognize that I can do it for free. They're saying, you know, we can we'll post it for you. And then we also write up a contract about the commission percentage that we're gonna get, obviously. Is it worth it having them post it on the MLS and paying for that or. Right. Because right now I don't have any pictures, so I don't even know what to post on the MLS. So obviously we need to hire a photographer and stuff to even post it. Correct.

Joe:   Well, yeah, this is one of the things that I love about calling realtors and asking they have buyers because they know it's a good deal. They will offer to list it for you. Right. And so yeah, I would I would have them do that. I always work in when I'm making my offer. I always figure in 10% realtor commissions. Right. So I'm figuring if I'm going to sell it for 100 I'm going to figure paying. Well 8 to 10 grand in realtor commissions because I want that realtor to work their butt off to sell it. The faster they sell it, the faster they'll make money, the more money I will make, etc., right? But then they'll take care of all the rest. They'll go out there, put a sign on it, they'll take pictures. Sometimes realtors will just they have a friend that will just do the survey themselves, or maybe just at least go out and stake it, you know, put stakes in the corners or whatever. Right. Because that realtors are going to make a lot of money by selling and they're going to work harder. They're going to get on the phone, they're going to call buyers, they're going to call other realtors. They're going to try to get that thing sold right away. The one thing, though, if you do list it with an agent, you want to make sure that agent is pricing it aggressively. Sometimes these Realtors, like most land, takes 6 to 12 months to sell. So they're thinking, well, we've got time, but you got to make sure that realtor understands we want to sell it. 1 or 2 months. So if they give you a price range like, oh, I could sell for maybe 80 to 100 grand. We should offer 100 is usually what they'll say. No, no, we're going to list offer 75. Like you want to price it aggressively to sell in 1 or 2 months as fast as possible. You want your money to turn around as quick as possible so it comes back. You can reinvest the money back into the business, back into more marketing. Right? So make sure that realtor, if they can list it, that's great if they're offering to do that. I think that's great. If they're responsive to you. They answer the phones when you call. They call you back right away when you call. That's huge. It's so hard to find a realtor that can do that, right. So I'll pay them 8 to 10% all day long. If they can sell my properties for me. Because here's the other big reason why this is so important. It's going to get out there on the MLS. It's going to get on Zillow. It's going to get on Redfin. You know, some of these realtors are already paying for sponsored listings on the land.com website. So now it's just going to give you more exposure. It's going to put you out there in front of more buyers. They're going to get you better pictures. They're going to real good pictures are like staging a house, right. It's going to get more interest, more calls, more buyers, more money, maybe even a bidding war. And you'll sell your property faster so realtors pay for themselves.

Foster:   You're saying the 8 to 10% is combined like it's the wholesale. Like we don't need to pay them to list it and then that's an extra fee. It's just the 10% is you do everything you need to sell it.

Joe:   Yeah. So they get 10%. And if they bring a buyer's agent, they split the commission with that buyer's agent. Thanks, Joe. Yeah. Question for you guys. How many offers have you all made in the last week?

Foster:   Two verbal offers, no written offers.

Joe:   Okay, I know you guys. We talked about this before. You slowed down the marketing a little bit. Are you back ramping that up again and doing postcards or letters every week?

Foster:   Yep. Yeah. We sent, 1500. That's already out.

Joe:   Cool. So I want you to make sure you're tracking your numbers. I don't have time to look at it now. Maybe next time we talk, let's look at your numbers. Let's look at by week. I want to see how many postcards you've sent, how many sellers you've talked to, how many offers you made. Right. We talked about this too. Like you don't want to lose that momentum. It's really easy to lose momentum. You start getting leads. You start to get deals under contract. But if you slow down your marketing, you'll flip those deals. You make some money, some of them are going to fall through, right? And you may be counting your eggs before they hatch. You may be like, think you got a smokin hot deal? But then you find out it doesn't have road access. So you lost a month in momentum and marketing. So you've always got to be continually marketing. You should be trying to make 1 or 2 offers every day, three offers if you can. But then, you're going to find that you do the deal and then you turn around and your pipeline is empty. And now it's like, it's not like a light switch. You can turn back on and off real quick, and those leads start pouring in again. Like you need to keep that pipeline full of leads. Then the deals you start doing are not deals from new marketing. The deals you start doing are from marketing. That happened three months ago, six months ago. Because they held on to your letter. They postcard, they got your offer, you sent them three offers. And finally they're like, okay, this guy must really want my property. He keeps on following up with me. He won't leave me alone. Or they just have some time to cook. They test the market, they got a higher offer. And that guy that that that fell through and they backed out of the contract and they didn't sell it. Now they're more frustrated than they call you because they like you, and you talk to them and you answer your phone and you sent them three offers. So do you see what I'm saying? Don't lose that time. Try to really be hard on making a couple one or 2 or 3 offers every single day. And if you don't have enough leads coming in from direct mail, just go to Redfin or homes.com, look for the older vacant land listings and just start calling those realtors, right? Call those realtors, email them. Keep on calling until you talk to them. But and you know because that may not that deal you're calling about. They won't accept your lowball offer. But again it's about relationships that realtor knows of other off market discounting properties. Right. This happened so many times to me. I'm talking to a realtor. This is not a deal. But you know what? So-and-so in the office, they have a deal that they haven't listed yet. Let me let me get you some information on that. Or a week later, they email me, hey, I found a deal that you might be interested in so that those relationships with those realtors are really important and you'll get just as many deals, if not more deals from those relationships with those realtors than you will on the deals you're actually calling them about.

Foster:   Wonderful.

Joe:   And let me show you one more thing, because I think this is really important, because while you're waiting, you're doing more marketing. Let's just say we're at Lee County again, I'm at homes.com, I'm at Lee County. I'm going to go to land. Right. Lee County has 2800 vacant lots for sale. I'm going to go to all filters and I'm going to scroll down to days on market. More than six months. There's 1226 homes. Maybe you can sorted by price, reduced date. So these are properties that have recently reduced their price. This one's been on the market for 180 days. Right. Here is the Realtors Joanne's phone number and email address. You can't get this from Redfin but you can get it from homes.com. And the cool thing about homes.com is it directly links you to the listing agent. Some of these. Other websites like Zillow, Redfin, whatever. They'll send you to buyers, agents that are paying for sponsored listings. They're paying for it to get their name out there. These are the listing agents themselves. So anyway, because now you've got, you know, 1200 realtors that you can call. All right, guys, cool. You know how to reach me.

Jared:   You're the best.

Joe:   Keep me updated on your progress. And, let's review your scorecard next time we talk.

Jared:   Sweet, sounds awesome.

Joe:   All right guys, see ya.

 

 

 

 

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