Joe:  Welcome. This is the Real Estate Investing Mastery Podcast. Hey, what's up, guys? Welcome to a brand new YouTube video series I'm doing called the New Market Video Series, where we're going to go in and pick a brand new market, one that we've never done a single deal in, and we're starting from zero, on camera, live. We're going to be picking the market, building the list, sending real actual offers, calling sellers and realtors. No theory, just watch what we actually do. And it's going to be so exciting. Thanks for tuning in. Let's go into today's video.

Joe:  Let's just kind of recap real quick what we've done. We found a good market, right? We went into market research and land portal. We went to drill deep. We went into Florida and we said, all right, show us the counties in Florida that meet this certain criteria. We said certain days on market, a certain number of accounts, sell through rates and months of supply and days on market. We found the most active zip codes. You can see Marion County was there and we looked at the most active zip codes in Marion County.

Joe:  And so we're just going after one of them right now, 34432. We could go after 34481 if we wanted to, but you can see in this zip code here, the median acreage size is 1.25 acres. And this next zip code, Ocala, the median acreage is 1.16, $62,000. So if we wanted to, we could go into this new zip code right here. Let's just open this up and we can say, all right, I only want the good properties in this zip code.

Joe:  I only want the properties that are not landlocked. They're not wetlands. They're going to be good properties in good demand. So that zip code again was 34481, right? So we just type that in here, 34481. We only want vacant land. Now, if we were just going here and say, give me all the vacant lots in that one zip code, 34481, that's going to be a big list. Now that's still a good list to send mail to. It's all vacant land, but there's 8,000 vacant lots.

Joe:  Again, if you're worried about competition, even in a competitive market like Florida or Marion County, there's 8,000 vacant lots there. But we want to be really strategic and focused, right? We only want properties bigger than one acre and smaller than let's say 10, right? Then we're going to say, let's just exclude any active listings. Let's exclude sold listings from the last five years. We don't want really cheap ones. Let's say we want anything that's at least $30,000 and less than $200,000. We only want out-of-state owners who don't live in the state. We want only people that have bought it at least five years ago. They've owned it for at least five years. We want landlocked. No. No floodplains, no wetlands. We don't want LLCs.

Joe:  I click apply. It's going to go from 8,086 to 250. This is a good list to target, isn't it? So let's go, I'm just going to pick some at random here. Let's go to page five. And here's a property that last sold for $7,100 bucks. Okay. This is on a dirt road. That's fine. It's 1.12 acres. It's in the city of Ocala, 34481. Let's send this seller an offer. The land portal estimated price based on their AI is maybe 35 grand.

Joe:  We can see the owner right here. They live in New York. A lot of New Yorkers buy land in Florida, don't they? But they've owned this for a long time. They bought it in 2004. So they just don't care about it anymore, do they? This is why land is so much better, right, Gavin, than houses. Because these landowners, they don't care. And you might think, well, if they don't care, why would any buyers care? Well, buyers are looking for land here, especially when we can sell them with owner financing, right? They're so much easier to talk to.

Gavin:  Yeah. I mean, there's just, well, there's nothing on it, is there? So there's no emotion. There's way less emotion with land. It hasn't been the grandparent's house that's been passed down through generations, or it's not been where they grew up, and it's been in the family for 30, 40, 50 years. This is dirt. And if they've decided that they're not going to go there, or they're out of state, or they've got no use for it, all they're doing is paying tax on it. And they're like, well, we could use that money. And often in our sales calls, and when we're talking, we want to get them to think, what could they do with that extra $5,000, $25,000, $30,000, whatever you're paying them, if they put that money to work, what could they do with that money?

Gavin:  Because right now, it's just dirt sitting there, doing nothing. And you sometimes can plant that seed to get them thinking of ways that they could utilize that money in a more positive way, maybe to reinvest, maybe to put the kids through college, maybe to put a new bathroom and kitchen in that they wanted. So there's always ways. And also, we haven't touched on it too much, but when we're working direct to seller, we have 90 days to close as well, which is a realistic timeframe, because they're not in a hurry, unlike flipping land with houses, where it's normally 30 days. So you do have more time to move land as well, which is good.

Joe:  All right, good. So while you were talking, I just pulled up a bunch of sold comps. I went here, and I got an address of the neighbor's lot, because this lot doesn't have an address yet. It's just vacant. But I click on the neighbor's lot to get an address. I pasted that here into Zillow. And then I found the property, I zoomed out, I have 51 comps here that have vacant lots that have sold in this area in the last 12 months. I'm going to scroll down, load them all up.

Joe:  I'm just going to scrape them, that scraper I gave you guys before, it just scraped all 41 of them. I'm gonna go to page two, there's a few more. Let's scroll down, load those up, scrape them. All right, now I'm going to switch to actives. I'm going faster this time. And we're going to look at backups and pendings. And I'm going to say days on Zillow, any, there's 32 comps in that window right there. I'm going to scroll down and load them all up. And I'm going to scrape them.

Joe:  Now I'm just going to export all of them to a spreadsheet. I'm gonna go to the automated offer pro thing here. And let's do a new deal. I'm going to upload those comps that I just downloaded from that scraper. And our property that we're looking at is 1.12 acres. If we discount the active comps by 15%, that means they're going to be worth about 35 grand at $34 grand an acre and sold is $32,000 an acre. So we choose which one to use. And we can say, all right, well, maybe we sell it for 35 grand.

Joe:  We sell it for 35 grand. Remember it's over one acre, right? Now some of these are like 26. So you know what, looking at these, I want mine to be bigger and cheaper. So I'm going to list mine for $29,750. That's how much I think I can sell it quickly for. There's two ways to make a cash offer, a 50% which comes up to $14,875, or you just subtract all your profits, which comes up to $12,775. Well, let's just make the cash offer $13 grand.

Joe:  13 grand is my cash offer. All right. Then owner financing payments. So our cash offer was 50%. Owner financing is going to be 75%. So that would be about 22 grand. Let's just make this 22 grand even. Let's do no down payment. Pay the seller 5% interest, and I'm not going to use an investor. And so my initial offer is going to be no down payment, 5% interest over 10 years. I'm not going to bring a private investor in. I'm going to mark the price up to my end buyer 25%. I'm going to require 3% down, 9% interest over 10 years.

Joe:  So my monthly cashflow, the buyer's going to pay me $475 a month. I'm going to pay the seller $235 a month. My cashflow is going to be $241 a month if I accept this, if the seller takes a deal. So cash price 13 grand, owner financing price 22 grand. Cool. So if I wholesale the deal, I might make $9,800 bucks. If I do owner financing, if I buy and sell on owner financing, I'm going to make $23,000 bucks in profit.

Joe:  So now if I want, I just click the cash offer letter here, or the two option letter of intent letter here, and I'll upload that. I know this is out of the blue, but I'd like to buy your property at 13 grand cash or 22 grand here. Now, if you wanted to, you could do down payment. What if you said interest rate 5% per year, which equals 5% a year, 233.34 a month for 10 years. That looks good, doesn't it? Does it look good, Gavin? Yeah. All right. Looks good.

Joe:  I'm going to print it to my own printer. And then later today, we're going to handwrite the envelopes and send this offer out. Now, let me show you something really cool that you can do with a land portal. Let's say you don't want to print an offer letter. You just wanted to send them a handwritten card. Check this out. I'm going to click right here from the land portal. I'm going to click start mailing. And these are handwritten with a robot letters. It's a robot with a ballpoint pen that actually writes these greetings on the card. It looks like a legit handwriting. This is going to get opened, right?

Joe:  You can do first class mail. It's $1.97 a letter, or you can do USPS market mail, which takes a little bit longer at $1.70 a letter. So I have a custom one in here that I wrote, and this is one where I'm giving the sellers two options. I'm going to click continue. So it's going to merge the information in here. Check this out. It says, are you still paying taxes on land you never use? Oh, I love that, right?

Joe:  The inside says, Hi Adesh. Hello, my name is Joe McCall. I'm interested in purchasing your 1.12 acre lot located near Ocala, Florida. And then I put in my cash price. Remember my cash price we determined was $13,000 and $22,000. Cash price. My owner financing price is $22,000. I'm not a real estate agent, just a local investor who buys land directly from owners like you. After reviewing the area, I'd be willing to offer you one of two options for your property, cash or seller finance. We can close in about two weeks to a local title company right in the Ocala area, making the process quick and easy for you. There's no pressure at all, just a genuine offer. If you'd like to discuss these offers, please feel free to text me or call me. Thanks for your time. Best, Joe McCall.

Joe:  Continue. I'm going to choose first class. By the way, I like using my acquisition manager's name in here because sometimes people look me up and they find out I'm this guru and they get all mad. Continue. We're going to send it right now. I click yes, place order. Hot diggity dog. There it is. I just sent a handwritten envelope to that seller. Here it is. Mailing launched. Now again, that costs $1.97. You could do $1.70 if you want, but that's a lot easier.

Joe:  I'm showing you different ways to do this, right? You could do the Google Doc thing like I showed you and just type in the numbers manually and then you print the letter at your home office and then you hand address the envelopes yourself. Or you can go right here into the land portal and just click start mailing and send them handwritten letters with these two option offers in there. Isn't that cool?

Gavin:  Yeah. And this is a great way, you guys, to start the day. You can be doing this immediately to get some traction.

Joe:  100%. Oh, I want to start calling some realtors. We've sent three or four offers. On that whole time it took me to talk about all of this, I could have sent 10 of them. Just going through it real fast. Sending offers. Imagine if you could send 10 offers a day, five days a week, that's 50 offers a week times four, that's 200 offers a month. But what if you don't have $2 for every letter? What if you've got no marketing budget at all? The next video, we're going to get on the phone with real realtors live and I'll show you what to say word for word.