I’ve been working with my own sons teaching them how to flip land, so it was really great to talk with Willie G about his experience in the vacant land business. Willie started out as a banker at Wells Fargo, but quickly realized that being an entrepreneur was a better route to success than the corporate world. He gives some great advice on how he has scaled up his land flipping business, and some predictions on where it will go in the future.
One of the really great parts about flipping vacant land is the scalability. You don’t have to manage a big team to do it. Willie did his real estate flipping on the side of his regular banker job until he made $50,000 in net profit for two months in a row, and then he realized that he had enough cash flow to just walk away. He realized pretty early on that very few people can pay cash for land, so he increased his buyer pool by offering term sales and found that that’s where the real money’s at for land flipping.
My sons and I have been using neutral mailers to target vacant landowners, but Willie’s found that he can offer a specific price in his mailers by targeting uniform markets and is getting a great response rate. He also aims for deals where he’s offering 25 cents on the dollar because this lets him sell it for three or four times what he paid for it.
Because Willie offers term rates on his vacant lots, he does have to factor in a default rate. But one of the beauties of term rates is that he can break even in about 12 months, and he’s still left with a property to sell if a buyer stops paying.
We talk about the up and coming markets for vacant land, and you might be surprised where it’s at. Willie shares a final piece of advice: Diversify and buy a lot of properties, and trust that they’ll sell.
Watch and Learn:
Listen and learn:
- Willie G shares the tools he uses to run his real estate business.
- Discover why term deals are almost always better than cash deals.
- Find out how to broaden the pool of buyers for vacant land.
- Willie G recommends some surprising up and coming places for vacant land.
- Why Willie looks for a uniform market to blanket with mailers.
Mentioned in this episode:
- Joe’s Book: REI Secrets
- Apple Podcast Reviews
- Willie G’s Free Land Flipping Course
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