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New wholesalers often get tripped up by two major roadblocks: not having a real estate license and not having money to do deals. Here, I share some tips to help you get around these roadblocks so you can gain traction and grow your business. Some states have rules and regulations that say you have to have your license, but you can also hire realtors or buy the deal yourself. I’ll show you how to work with the rules instead of getting around them.

It also helps to partner with a mentor who can set things up for you. They can help you start off on the right foot and get a good marketing plan in place so you can target the right areas with a ton of activity. Working with a mentor can be a real game-changer in your real estate business and here, I share how I like to partner with others to do deals.

Watch and Learn:

Listen and learn:

What’s inside:

  • Why you don’t need a real estate license to wholesale
  • How to partner with others on deals
  • Why you need to work with a mentor

Mentioned in this episode:

Download episode transcript in PDF format here…

Joe:   There are two giant roadblocks that trip most new beginning wholesalers up. Whether you're doing houses or land is number one. You think you have to have a license to do a deal. And number two, I don't have the money, so I can't do it. So, like, what's going on, Joe? I thought this was supposed to be easy. Listen, it really, really is. And this is specifically if you're already one of my clients, you have my programs or something like that. I wanted to address these two things. Can you wholesale deals without a license? And you need to have the money to buy the deal. So if you can't wholesale without a license, what does that mean? Well, it means that I have to buy the deal and own it before I can advertise it. Right. Well, I don't have the money, so. Oh, my gosh, this isn't good. What? What am I going to do? I just got off the call a little bit ago on Voxer with one of my clients, and we were talking about this, and she thought she had a really good deal, and she started calling like, I teach in my program. She started calling other realtors to see if they had a buyer for this particular property. She started calling realtors that have recently sold vacant land in that area. And one of the first realtors she talked to found out that she didn't own the property yet. And she's like, no, you can't do that. That's illegal, immoral and fattening, and you're going to get, she said, $1,000 fine. If you try to wholesale a deal that you don't own yet, don't you know that? And then she's like kind of freaking out. And then she's like, well, okay. But also that you have to buy it. Well, I don't have the money to buy it, so what am I going to do? And so anyway, I helped her with this and the advice I gave to her, I'm going to kind of try to at my best to give it to you now. Okay. So number one, you do not need your license to wholesale properties. Now, some states have rules and regulations that say you have to have your license, but I'm not going to go into those technical details, and I'm not even going to try to argue the case. Either way. The fact of the matter is, you cannot broker without a license, and that's not what we're trying to do here. But if you are trying to find a property for somebody else for a fee that's brokering, you need a real estate license to do that. So number one, go ahead and get your license. I had mine for ten, 20 years, ten, 15 years or something like that. But I let it go a couple years ago. Or number two, if you want to go ahead and get your license. Number two, hire realtors, okay. Or number three, go ahead and buy the deal. Go ahead and close on it.

Joe:   So I'm not talking about ways to get around the rules. I'm trying to just talk about ways to work with the rules. You could argue till you're blue in the face with the Real Estate Commission. That, by the way, is full of realtors that, you know, hey, I have equitable interest in this property. And I can, you know, contractual law and all of that. I can do whatever I want, but you're never going to win that argument, so just stop trying to fight it. I'm saying you do not need your license. And why? Because you're actually going to close on the deal. So I want you to change your mindset in your thinking here. When you are talking to sellers and realtors and you don't own that property yet, this is what I want you to start thinking in your mind. I want you to pretend, not actually pretend as I'm telling you that you actually do have $1 million burning a hole in your pocket, and you are looking for a deal to buy. So when you're talking to sellers, when you're talking to buyers, when you're talking to realtors, property managers, everybody out there, I want you to pretend like you are actually an investor, that you actually have the money to buy the deal. Now, is it going to be any of your own money? No it's not unless you have it, it's going to be my money. It's going to be a hard money lender. It's going to be a funding company. It's going to be somebody else that you're partnering with on the deal. Somebody else is going to be providing the money. Okay. So normally when we do land, we try to get 90 days. Now sometimes though, if you're bringing a funding company in or you're bringing the deal to me, if you're one of my clients, I want you to bring the deals to me and I will fund the deal for you. Listen, we can close in 30 days if it's a good deal. And generally speaking, a good deal when vacant land is no more than 50% of what the property can conservatively sell for. So if you think you know if the property can sell for if a realtor tells you could sell for 80 to 100, I want you to like price it at 7570 or 75,000. Okay. So let's say 70 grand, 50% of that is 35 grand. Like that's the most if you get a property like that under contract for 35 grand and it's worth 70, maybe okay, you can sell it quickly in 1 or 2 months at 70 to 75, $80,000. The money is easy to come by. Okay. If it's me and you're bringing that deal to me, I'll fund it like that. And even though it may be my money, it may not be my money. I may bring another investor, one of my private investors, one of my hard money lenders in the deal. But we will fund the deal and we will actually close on it.

Joe:   Okay, so if a realtor says, if you're going to get this a lot, you can't advertise that property. You can't put it on the MLS if you don't own it yet. What do you spoken okay, fine. Okay. Don't worry about it. I want you to go through in your mind, like you're actually going to be buying this deal and you're going to be closing on the deal, just like you were going to be buying a house. A bank is going to lend you the money. All right. Now, if the bank says, no, we are not going to lend you money on that deal, guess what? You're not going to buy the deal. You can get out of the contract. Okay? Most contracts have contingencies in them. And ours. Mine does. Contingencies based on due diligence and verifying taxes, title and value, and also a financing contingency. Okay, if your financial partners, your investors, will not lend you or the money on the deal, guess what? You shouldn't buy it. You shouldn't buy it. So if you think you've got a great deal and you bring the deal to me and I say no, I don't want to partner with you on it. If you bring it to a hard money lender, a private investor, and like, no, I don't want to partner on it. If you go to in the Facebook group where there's other people doing deals and they're like, no, I don't want, it's not a good deal, right? So you could use us as like your filter on these deals. So fine. If you can't advertise the property until you own it, then don't advertise it yet. It's not a big deal. It's not a big deal. So when you make an offer, we have 90 days. If the seller objects or let's say it's a listed property and the realtor of the seller objects, go ahead and put 30 days on there. It's not a big deal. Okay. Make it contingent on financing. If you want. Make a contingent on verifying taxes, title and value. And guess what? Bring the deal to us. Bring the deal to me or another funding company or hard money lender. Somebody that has experience doing land or houses, whatever it is. And if we will not fund the deal, it's not a good deal that you should be doing anyway, so that's fine. Get away from it.

Joe:   So let's now look at it like. All right, well, fine, I'm going to buy the deal. I'll close on in 30 days, and then I'll turn around and advertise it. And the funding company like me, we're not going to fund that deal if we don't feel like we could sell that pretty confidently in 1 or 2 months, maybe three months max. Does that make sense? So everyone else is doing 90 days on their contracts for the most part, some 60, some 90 days. What if you came in now and said, yeah, so seller says, you know, I got a better offer for somebody else and say, okay, well, how long do you have? Did they say they would need to close? I can close in 30 days. I can pay cash. So now you can use this as a strong point in your negotiating part. Okay. Now you're like, Joe, I don't have the money for the deals. Well, remember, you do not need money to buy these deals. Use mine. Use hard money lenders, private lenders. There's funding companies out there that will fund your land deals. And you can do. I have a client right now doing transactional funding. He already has A2B contract and a B2C contract with the end buyer A to B with the seller A, B to C with the end buyer. And he's using our transactional funding to close the deal. So he's going to be closing it, buying it and selling it on the same day using my money. And we're not charging him anything for that. We're charging him $0. So there's different ways that you can do this. You can also find partners. A lot of you guys, if you're watching this, you already are in Facebook groups, whether they're for houses or for vacant land. And there are a lot of other investors out there that are buying and selling land. And if you get a good deal, you put it out there and say, hey, does anybody doing deals in Montana, right? Do you want to partner with me on a deal? I think I got a good deal under contract, and you can go into a JV partnership with them on that deal and split the profits. You'd have to negotiate. Who's going to provide the money? Who's going to do the work of advertising? Many times those guys that are already doing deals in those markets, they've already got the money. They can close on it. They already have the buyers that they can sell it to. They already have the realtors, they have the title company. They know all of the things based on the areas that it's in. So if you're just getting started, here's my whole point. Partner with somebody who has already been there, done that, find somebody who already has done deals in that market who already has the money. And there you go. Now you're going to split the profits, okay. But in the meantime, not a big deal because you're going to be learning how this thing goes. And when you split the profits with somebody else has already been doing deals. Guess what? You may be getting half of the pie, but it's a bigger pie and you're going to be getting more of them quicker because you're partnering with other people.

Joe:   So does that make sense? What I'm saying here and again, like I've said before, if your funding partner, if your hard money lender, if your private lender will not lend on the deal, it's not a good deal. So use me as kind of your filter for all of that. Now how do you know if it's a good deal or not? Let's say you find a good deal. You think you make the best offer you can. You have 30 days. You've told them I will have them funds. I will close the deal. Don't even worry about advertising the property before you own it. Yet one of the first things that you're going to do is you got it under contract, right? You're going to present it to a funding company. But I'm also going to ask you to like, hey, have you have you talked to some local realtors yet? Have you talked to any investor buyers yet? And so what you can do first thing is get on the phone and call at least 20 realtors who have sold vacant land in that area recently in the last six months or so. Okay. You go find the property on Redfin or Zillow. Zoom out until you find 20 different realtors who have sold vacant land listing agents and buyer's agents. And I want you to call all of them, and I want you to tell them, hey, my name is Joe. I just I'm an investor in Saint Louis. I just I'm thinking about buying this property in Oklahoma near where you've recently sold one, and I'm not sure what I'm going to do with it yet. I might buy and hold it and sell it with owner financing. I might just turn around and flip it. And I see that you sold a property here recently and I think you sold it for. You know, $10,000 an acre. I think this property that I have, I might I've got it under such a good deal, I might sell it for like $7,500 an acre. And if I did decide to sell it, I paid 10% commissions. You wouldn't have a buyer that might be interested in this property, would you? So that realtor now is automatically thinking that you're, first of all, you're being completely open, honest with them. You're not. You don't live there. You don't own the property. Yet. If you don't know what you're going to do with it yet, you may buy and hold it and sell it with owner financing. You may just hold it for 20 years. You or you may just flip it. And all that realtor needs to do is make a few phone calls, send a few text messages to bring that deal to a buyer, and get 10% commissions. You understand? So that realtor now will give you some feedback because they know the area well. They may go look at it. They may say, yeah, you know what, it's in a wetland. It's got bad access is on the side of a mountain. Forget about it. Now. You started getting some feedback on that, right? Or they might say, yeah, oh my gosh, that's a really good deal. Let me make some phone calls and they make some calls to some buyers that they know that are looking for more land. And by the way, you should only be in a market where there are a lot of buyers looking for more land, right? Yes. Because if you are, you're going to it's going to be easy to find realtors who have the buyers that are looking for more land deals. Okay. Next thing you're going to do is you're going to call at least 20 different investors or people who own vacant land in and around that area. So what I like to do is go to prop stream, joe.com and find all of the investors that have bought land in that area in the last six months. Now. Also, I'm including in that maybe neighbors, some nearby neighbors, and I'm also calling anybody that owns land. So there's different kinds of buyers. There's retail buyers and there's investor. Buyers are mainly looking for investor buyers that are buying a lot of land. But I'm also looking for anybody that owns land, vacant land in that area. And I'm going to skip trace them and I'm going to call them. And you can also do handwritten yellow letters. I talk about that in my stuff. But like you want to talk to at least 20 of these guys and just ask them, hey, I think I got a deal here. I'm not sure what I'm going to do with it yet, but I think I might sell it. If I sell it, I'm going to be selling it for about 7500 an acre. I see other properties are selling around here for 10,000 an acre. Whatever. You wouldn't be interested in it. I'm just calling a bunch of people when I decide what to do with it. Do you want me to? Do you want to be the first one for me to call? Did you see what I'm doing now? I'm calling everybody, trying to get some feedback on this deal. I just got it under contract a week ago, but I'm trying to decide. Trying to figure out if it's a good deal or not. Does that make sense?

Joe:   All right. So to sum it all up, do you need a license. No. Go ahead and get your license if you want. It's not a bad idea. Go ahead and get your license if you want. But you do not have to let have your license because I want you to think of yourself. Now. I'm giving you permission to think of yourself as a buyer with money. You may not have the money, but you don't need the money because you're going to be getting it from me, from a hard money lender or private investors or some other buddy. Somebody else has done land deals before, right? Or house deals. Stop worrying about that. You are the buyer. You are the buyer. You're actually going to be closing on the deal. And guess what? If we won't lend you money on the deal, it's not a good deal. So pass on it, go back to the seller, renegotiate or cancel the contract or whatever. That makes sense. And then secondly, again, just to reiterate the point, maybe I've said this already a hundred times, but you do not need the money. You don't need a license, and you don't need the money because you're going to be partnering with other people that do have the money. So kind of keys to all of this. All right. Number one, make sure you're not into a deal more than 50% if you're specifically for land, for houses, maybe 60, 70%. But you've all especially land. You have to make sure that you're not in a deeper than 50% of a conservative sale price. Again, you call a realtor. They say, yeah, you can probably sell it for 80 to 100, you know? Then price it at 75. You want to be like under-promise, overdeliver, kind of like where you want to make sure you've when you price that thing, you're looking at all the competition, what everybody else is buying, what they've bought it for. And you want to make sure yours is the cheapest and it's discounted, I don't know, 15, 20% cheaper than everything else because your goal is to sell this in 1 or 2 months as quick as possible. So you want to be the cheapest property when it hits the market, right? So then your offer price, your purchase price needs to be half of that max. Many times it's less, but max, the only time you can break that rule. If it's maybe over a couple hundred thousand dollars, sometimes you can get up to 60% of that. Okay, second big thing is kind of summarizing. It is if your funding partners will not fund the deal, it's not a good deal. So then you can go back to the seller, renegotiate or just cancel the contract. The third thing is don't be afraid to work with realtors, okay? They have the buyers, so hire them and pay them really, really generous commissions. I don't want to pay a realtor the normal 6% commissions on a vacant lot that I may be selling for 50 grand, so pay them 10% commissions and I work that into my offer. So when I'm figuring my offer, you know, I always make sure I take the list price what I'm going to sell it for aggressively. I subtract my wholesaling fee, subtract my closing costs, subtract 10% realtor commissions, etc., etc., etc. to come to my price and make sure that number is not more than 50%. You need to be average as soon as you get your deal under contract at the best price you can. You need to start doing some market research, market intelligence, market reconnaissance and call 20 realtors who have sold vacant land in the past and 20 investors or 20 buyers who have bought land in the recent past, and ask them if they think it's a good deal or not. You got to pick up that phone and talk to them. Send the handwritten yellow letters. Get them on the phone. Talk to them, get their feedback. And if they say no, it's not a good deal. Ask them what price would be a good deal. What price do you think you would be interested in this for? Make sense? All right. Third, get a mentor. Get a mentor or get somebody that can help you. In fact, better yet, get a mentor that can actually fund your deals for you that can actually give you the money and partner with you on the deals. Now, obviously, I do mentoring and I do provide funding for deals, but if I find the deal, I'm going to be expecting to split the profits with you. But what a great way to start. This way you don't have to worry about is this a good deal or not? Am I going to get the money to do this or not? Am I good? How am I going to list and advertise this property if I don't own it yet? And I'm not, I don't, I don't I don't have my license yet or not. Right. How do I know if it's a good deal? What if what if it's in a wetland? What if it's on the side of a mountain? What if there's tidal issues? What if there's lots of blah, blah blah blah? You starting to freak out, relax, take a deep breath, and partner with somebody who has been there, done that. Does it make sense? So get a mentor. Get a mentor who can set things up for you and with you from the beginning so you can get off on the right foot, get a right, get a good marketing plan in place so you can make sure you're only targeting areas that are already in high demand where there's already a lot of activity. So pick a good market. Have an have a marketing mentor, help you pick the right markets, and that mentor then should help you evaluate the deals, fund your deals, and partner on the deals with you. That makes sense?

Joe:   All right. So listen, if you want more information on how to work with me, there's some links in the description down below. You can also go to Simple Land kit.com to get my contracts, my scripts, my marketing pieces, my calculators and software that help you analyze and evaluate land deals. It's all there for free at Simple Land kit.com. All right, so I hope this helps. I feel like maybe I was all over the place, but I don't want you tripping up over these things any more. All right. The days of worrying about whether you have a license or not, whether it's wholesaling is illegal, illegal or not. The days of worrying about whether I have the money or not are over. Okay. Use our money. That's it. Because I want to do more deals. That's why I do all of this stuff. Appreciate you all. We'll see you. Take care. Hey, subscribe to my channel. Would you leave a comment down below? Give me a thumbs up if you like the stuff. If you feel like it was helpful for you, okay, and let me know what else you want me to talk about. See you, bye bye.

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