• Home
  • |
  • 1318 » Don’t Buy & Wholesale THESE Land Properties!

Jared and Foster are back here with another update, and they’re doing an amazing job. They’ve got a full pipeline, and their numbers are looking fantastic. So far, they’ve sent out almost 8,000 postcards and made 25 offers, not too shabby. Here, I go over some of the questions they have as they work on closing more deals. One of their issues was in dealing with a property in significant wetlands with poor access and I walked them through how to handle it.

In our call, we also run through Jared and Foster’s numbers and stats. I share how I like to put together offers and handle objections that come up along the way. I also share some pro tips on how to stay on top of your follow-ups. We wrap up with a discussion on how to know which deals are good, which are bad, and how to tell the difference.

Watch and Learn:




Listen and learn:

What’s inside:

  • An update on Jared and Foster’s land-flipping business.
  • How to choose the best deals and avoid bad ones.
  • How to put offers together and handle objections.

Mentioned in this episode:

Download episode transcript in PDF format here…

Joe:  All right. So how are things for you guys? You get your deals sold yet?

Jared:  Did you hear about the two properties? One's in significant wetlands, and the first real estate agent said no, we got another real estate agent said that she will try to sell it. I think foster just got her signed up this week and then we have another one we thought we were going to be printing money from, and we found out that not only does it have challenging road access, it's got no road access. You actually have to ask the neighbors permission to get to zero access ahead.

Joe:  So did it look like you had access from the, from the satellite image or something like that?

Jared:  Yeah and, Foster, you can talk to it.

Joe:  Go ahead. Foster.

Foster:  Yeah. It had, a road leading through a development with houses on this road called Little Farm. And then at the end of it, it turned that that road into kind of a tiny dirt road. And then from that dirt road, our property was about two properties, landlocked beneath that one. And it looked like there was a tiny, like path that would get to it. And they didn't know much. The realtors were like, well, yeah, you know, it's just it's obviously not staked off or anything. So you can kind of tell like where property line end. But the realtors went out there and said that there was no trespassing signs and gates all over, so you couldn't walk back to it. It's like it just a huge, huge, like lots of acreage, huge field kind of by the water. And so they were, talking to the title company and, County about an easement if there was one, and title company didn't have any information, and they came to the conclusion that you just have to get permission from each, specific landowner if you can go through their land and get two years.

Joe:  Well that sucks. You know, one thing I would you might think about doing is going back to all these sellers and, just tell you, we're going to either have to cancel the contract or we're going to have to really, really lower the price. And then what I would do is maybe get it under what's called an option contract. So it's like you just tell them, listen, we don't know if we want to buy this, but we might find somebody else who wants to buy it and tell them what the problems are. You know, it doesn't have good access. We have to go through all the neighbors. It's wetlands, whatever. And then you get it under an option contract, and then you can get on the phone and start calling the neighbors and asking them if they want to buy it. And you can just assign your contract or sell them your rights to that in the option agreement for just a few thousand bucks to at least get something out of the deal. You're going to need to get this to get the seller to like, lower their price, because you still may be able to sell it. There's still maybe somebody else that wants to buy it if the price is low enough. Does that make sense. And again that it's an option agreement that I use. If I'm normally you go to the seller and you say hey I want to buy your lot. Right. I want to buy your piece of land. But if you can't buy it because of these issues, you can say to them, listen, I don't think I can buy it for this, but I might be able to find somebody else who would be willing to buy it for that. So what I'm going to do, the way this works, you need to sign this. I'll give you the six month option agreement, which means I have the option to buy this property in six months for this price. Then if and when you find somebody else to sell it to, you would either exercise your option and buy it and then turn around and sell it. Or you would just sell your option agreement to this other buyer for 5000 bucks or something like that. So like if it's got these kinds of issues and problems, you want to go back to the seller, try to get them to lower the price and maybe then use an option agreement. Or if you have a good enough relationship with them, just extend your closing date. You know, if you were scheduled toto close at the end of March or something, you might need to say we just need more time. Does that make sense?

Foster:  Yes it does.

Jared:  Do you want to go through any other stats and deals? I think Foster is the most prepared he's ever been as far as your KPIs and things like that.

Foster:  Yeah. So, Joe, I just want to go through, numbers, see how I can improve kind of top to bottom where the big gaps are between, the funnel, getting down to, starting with at the top with postcards and then getting down to deals, seeing where the gaps are, seeing how I can close those and then, just like two questions if that's cool.

Joe:  Yeah so what are your numbers like? How many postcards have you guys sent?

Foster:  So in February we've sent 2974.

Jared:  I would start from Ascension. Foster, do you have that number?

Foster:  Yeah, I can do both. So we've spent honestly about 7700 postcards with two counties, 4701 county, and about now going to be about 3000. In the other county, 37 leads from one county, 32 leads from the other, bringing it to a total of, 69. Yeah, 37 from one, 32 from the other. And so with those 6937 of those leads in the one county have 12 offers, and the 32 in the other county, 30. And so that's the gap that I see right away, is there's leads that don't have offers and it's because of lack of interest. Really quick call. Don't even answer. On my third fourth attempt. Bogus phone number sent it to the wrong address. They're calling to tell me that they know that person doesn't live there anymore. Those are kind of those ways that have come in. That's just all total of them. And so I've been able to get off about 24 offers. But there's, you know, a lot more that need to go out. It's just I don't have email addresses. And this is kind of my question that I was talking to you about, Joe, is do you wait to build some rapport with them and send them a solid offer and wait till they, give you their email address and you talk through things, you let them know when it's going to come through. You're in contact. That way you have their cell phone number or, you know, if they're not, if they're super standoffish, if they're not responding, do you just send, direct mail through Freedom Soft to their mailbox?

Joe:  Yes, yes and yes. Like I always send an offer to every seller that calls me. And if they call me and they leave a voicemail with the reference ID, I'm going to try to call them back. I'll try calling them 3 or 4 times, but I'm still going to send them an offer in the physical mail. Let's say I do talk to them and then it can go several different ways. If they're motivated and they want to sell. Now go ahead and like send them an electronic signature contract, walk them through it on the phone or on zoom, like walk them through the contract, answer any questions they have, make sure they can open up the digital signature thing and know where to click and how to sign it. Right. Walk them through all of that steps. If they're kind of like more warm, it kind of just depends, right? Like sometimes a warm lead will just say, yeah, send me the offer. I'll look at it. I just need to think about it. And that's when you kind of the sales skills kind of come into play like, well you know, really tell me honestly, most people, when they say they just need to think about it, that really means no. And that's okay. I want you to know, it's all right to say no. I can give you the names and phone numbers of five realtors that will list your property for you and sell it for you. But if I can send you a contract and you agree to the numbers, and if you agree to the terms, can you sign that contract today? So I'm trying to get a yes or a no from them. Right. If they're to warmly and if they say, yeah, you know, I'll do it. So I try to get a deadline from them. All right. So if I send it to you right now, let's schedule a time to talk. What would be good today at five or tomorrow at 9 a.m. or something? I'm trying to get a deadline from them before I send it of when I can hear back from them because I'm trying to get a yes or a no. I'm trying to get a no out of them. You know, if they really are just trying to be polite, you know, and they don't want to tell me no or I'm trying to find out. Is there another decision maker that you have to talk to and when do you when can you talk to them? When can you get back from to me to let me know we have a deal or not? If it's a cold lead, I'm still going to send them an offer anyway. I'm going to just send it in the physical mail and I might. I'll ask for their email address and I'll still email it to them. But I always want to send offers in the mail in the physical map. So I send offers to in the mail to warm, cold and hot leads. Just got to, do it. And then if it's a cold lead, I send them an offer every 30 days, and then maybe after three months or so, I'll just send them a letter. I want to follow up with all those cold leads as much as I can, you know, and I'm testing right now a new letter. It's a it's okay. It's a cover letter. And then there's a contract attached to that cover letter and it actually says, hey, what price would you want to sell it for? And it asks them to fill it in. It's very it's a different approach to it. And I like it because it starts the conversation there at least saying, oh, you know what else, sell it, but they're putting something in. So that could be something that you send to them. So you, you had you mailed 25 offers. And how many deals did you get under contract?

Foster:  We have three under contract with three pending contract. Meaning, there's a pretty good likelihood. There's just it's in the process. They can't do it over email. And so that's in the mail, and it's taking a while for, all parties.

Joe:  Okay, okay, okay, wait a second. These are really good numbers. I don't know if you realize. It's like you may be a little discouraged. Like, crap. We haven't sold two of these deals or three of these deals that we thought were really good. We haven't sold yet, but your numbers are really good compared to what I see in my own land business and in students businesses. So of the three deals you got under contract, looks like they're all going to fall through. Is that right?

Foster:  I'd say we'll get at least one.

Joe:  And then of these pendings which one do you think you'll get of those three?

Foster:  I think we'll get two of those.

Joe:  Oh my gosh, I wish my other students had your problems. Here's the thing. Like if you look at the numbers, you send out 7700 postcards, right? You're getting about a little less than 1%, point 9% response rate, which is not great, but it's to be expected for postcards. And you're sending range postcards, which is like you would expect a smaller percentage response rate from that because you're giving them a price range of what you could be at. Right? And it may be a little bit high, but that's to be expected. So of the then, the 69 leads you made 25 offers. So 25 you made offers. First about 36% of your leads so far.

Foster:  So far, yeah.

Joe:  So far, but like I would still if you can't reach them, if they won't return your calls, I would still send them an offer. Are you doing that?

Foster:  Well, so that was my question is at what point do you, kind of send a last resort offer after you've kind of exhausted all ofyour, weapons to, you know, get them on the phone, get have a solid conversation, get a solid, contact info. So right away, you know.

Joe:  Like, within a week, you know, if you can't get Ahold of them in a week, within a week, like, if they already left you a message and told you that you're their reference number.

Foster:  And ones that don't have a reference number. Do those just kind of go to the, dead and you just call in until.

Joe:  Yeah, like, if they didn't leave your reference number, maybe it was just a hang up. Keep on calling them. Maybe after 2 or 3 times, set up a task to call them again in a week, and then after 2 or 3 times of that, then set up a task to call them again in 30 days.

Foster:  I'm getting a lot better of assigning tasks and kind of knowing like, due dates of like when do when to assign certain one.

Joe:  Yeah, that's really important. Like every lead. I'm glad you're doing that because every lead needs to have a task assigned to you in the future. So you don't kind of forget. So don't just status it as cold or follow up because that doesn't mean anything. Right? Like put a task in there, complete the old one, create a new task to follow up in again in a week. That way, every time you log in to Freedom Soft, you just go to your dashboard and there's the tasks of the things that are due today. And you just you do it, you call them, and then you complete it. Eventually, faster, you'll get a VA that will manage all the freedom soft stuff for you. It's a lot of data entry stuff, but like you could there's a you could Voxer or WhatsApp your VA with the status updates. Right. And you can just say to the VA, hey, I talked to Jeremy. I left him the message. Go ahead and, remind me in two days to call him back. And then the VA is the one updating it and you're just moving on, making the next phone call or whatever, right? Does that make sense? Yeah. Eventually down the road, you get a couple deals, you get some money, you can get a VA to help you do the data entry admin stuff. But like I'm encouraged that you guys are you're making you're getting as many offers accepted based on how many you've sent out. So you've gotten three contracts for, for 25 offers. So 25 divided by three, you're getting about one offer accepted out of every eight that you send. I usually average about 15 to 20. Okay. Now you're going to you're learning as you go through this. What is a good deal or what isn't a good deal. Like, how could you have avoided those bad deals? Maybe you could have looked a little deeper to see if it was in a floodplain, or if the access was a little bit fishy and didn't understand. You know, maybe you could have found out earlier that it was a problem by hiring, maybe calling some local realtors to go look at it for you, or hiring a drone photographer to try to go there to take pictures. That's a lot of times how we find out if it's a good deal or not. We have a drone photographer that goes there, and we use thumbtack or TaskRabbit to find our drone photographers, but if they can't get to the property or if they're like, hey, did you know it's on a side of a slope, or did you know it's under water right now? That's an issue. You know, that's a problem. You're going to be learning how to get better at your offers. And a lot of it has to do with getting on the phone and calling other realtors who have sold vacant land recently in that area. You zoom out a little bit from where your property is and you say, Mr. Realtor, I see you sold your property over there for $5,000 an acre. We have one that we're going to we're thinking about buying it. We're going to be selling it for $4,500 an acre. If you can find us, a buyer will pay you 10% commissions. Do you mind if I ask you some questions about the area? Right. And you start talking to realtors who are there. And if you find a good realtor, they can go look at the property for you and you should be able to find out. My point. I'm telling this is with that the drone photography with calling is realtors. With calling buyers, you should be able to find out within a week or two whether these are good deals or not. And you know you're going to learn like any more. If it doesn't have clear, simple, easy road access, we're passing on it. We're not even messing with it. And if we find out that there's title issues or like if the if the husband's deceased and it's the wife or the kids trying to sell something, you know, if it doesn't have real clear title, we'll probably pass on it. We may need to send it to a title company to, to tell us, is this going to be are we going to be able to close on this or not? But we're passing on deals a lot quicker now because we're learning. What are the easy deals to sell or not? HOA isis another example. If it has a very expensive HOA where they're paying 300 bucks a month, and now if it's on a if it has, if it's a property with a slope, it's really steep. That's not a problem in Florida. Those are going to be deals you pass on. But you're in some really competitive markets, which is good. You're getting about a 0.9 percent response rate, which isn't great. But for that area it's not bad. And you're getting a good number of offers accepted forfor every offer that you send and you're, you're close to maybe 2 or 3 deals to sell, hopefully within the next month. One. The two months. I think you guys are doing good. You just. You need to. If you can keep on doing the marketing, keep your pipeline full of leads. And if you want even more leads. We're doing this new postcard. I don't even know if I've shared this with you yet. This will get your phone to ring. We're getting 5% response rates with this. Now, when I consider a response rate of somebody who just calls. That's for me a lead. And we're going into, a county in southwest Missouri called Taney County or Taney. So far, we've gotten 40 leads now that half of them are dead. We're 5.2% response rate with this. We sent out 775 postcards. We have 40 leads and 5.2% now. Half of them were dead. And we're a lot of them are hang ups. We're still trying to call them. But we've got two deals out of these that were real close to getting under contract and selling already. And it's only been two weeks with this campaign and this postcard. I don't know if you're interested in something like this. Let me show you what it looks like.

Foster:  Oh, these are tons of acres, huh? Big acres.

Joe:  Yeah, these are big ones in southwest Missouri. Right. But it's a it's this postcard that says attention, bright wall family. Whatever. I urgently need to speak with you regarding your 36 acre lot near this city and county. State. And this doesn't even say we want to buy your property. It just says, I'm hoping this card catches you in time. I've been trying to find your number. I. I need to talk with you about your vacant lot. All you have to do is call this number. Listen to my recording. 24 hours a day, seven days a week. No one will answer. It doesn't even say anything that we want to buy your property. It just gets a lot of calls out of curiosity. They're like, what on earth is this about? And they call that number. And we get about 30 to 40% of the leads will actually give us the reference ID. So my point is this, like, keep on doing what you're doing. I mean, you guys are you got off to a slow start because you weren't able to devote enough time to it. But I'm encouraged. Keep me updated, foster. I, I'm encouraged by your numbers. You know, just be super diligent with selling these deals. You know, call as many realtors as you can, call as many buyers, skip trace and call as many buyers as you can. Send them those crumpled up yellow letters, for these deals. Like, sometimes it's just you think the hard work is done now that you've got the deal under contract, now you can just it's easy to coast and just sell the deals. It's not necessarily like that. Sometimes it is. But you really got to work hard and find out as quickly as possible whether you have a good deal or not. And yeah, that's all I can say about that call.

Foster:  But I was honest in my last question is biggest tips on selling property fast? And it'scall as many realtors as possible, even if you have it under contract with a certain realtor. Don't care, just continue to call, call, call find realtors who will sell it and exact like is skip trace. And I'm gonna I'm going to shoot you a memo about skip tracing.

Joe:  I use a tool called, people looker.com. All right. Foster, keep in touch, man. Listen, seriously Foster, call me anytime. Call me or text me.

Jared:  Thanks, Joe and Foster.

Joe:  All right. See you guys.

 

What are you thinking?

First off, we really love feedback, so please click here to give us a quick review in iTunes! Got any thoughts on this episode? We'd love to hear 'em too. Talk to us in the comments below.

Enjoy this podcast? Share the love!

Related Posts

Leave a Reply


Your email address will not be published. Required fields are marked

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}