How To Avoid Problems In Land Investing
If you’re just starting out, you probably want to know how to get through every single deal problem-free. People often get held back because they're scared something will go wrong on every deal. But, inevitably, something will go wrong on every single deal. So how do you avoid this? How do you navigate through it, and how do you clean up your books so you can just keep flipping with no problems? I want to share a story today about something that happened to me. I’ve done literally hundreds of land investment deals from flips to seller financing and everything in between. I’ve been investing so long that you would think after hundreds of deals, I don't have any problems and that everything goes smooth. But that’s not always the case.
You Can’t Avoid Every Issue
Around three or four years ago, I sold a ten-acre parcel on seller financing. This deal was in Arizona, and things are a little different there. They actually have two forms you have to fill out to get the deed transferred. First, you have the deed itself, where you sign off on all the information for transferring the property to the buyer. The deed needs to be filled out and notarized. Secondly, Arizona uses another form called an affidavit of value. This form can be found online and must be filled out line-by-line and notarized. The affidavit itself is pretty self-explanatory, but you have to pay attention to the details. Finally, you take the deed and the affidavit of value and mail them to the buyer, and the buyer must then sign and have it notarized. This process can be tricky because there are a lot of details and steps involved.
Now keep in mind I’ve done plenty of these transfers over the years. So the note on the ten-acre parcel was paid in full. Then I went through the steps to finalize and deed it to the buyer. But then my phone was blowing up from Arizona…and I don't know anybody in Arizona! So I let it go to voicemail, and it turned out that it was the Mohave County recorder reaching out to me. On the affidavit of value, line 5b, I had overlooked a simple line that says when the next tax payment is due. All it needs is a date in there; that’s it. So I asked if they could throw me a bone and write it there. Legally, though, they're not allowed to do that, but fortunately, the person on the other end of the phone was super cool and scanned and sent it to me. So it didn’t take too long to fix, just a quick print, fill in the line, scan it, and send it back. Now we're good to go; boom, the deal is done.
Don’t Fear Problems, Just Be Prepared
No matter how much experience you have, you're going to mess up deals. Sometimes it's little tiny things, sometimes big things. However, I don't want anybody to hold back from getting the results they want because of their fear. You’re inevitably going to mess up. So just get out there, get dirty, and keep your cool. That’s the best way to approach land investing. You have to know that problems are going to occur. When issues arise, just take a minute to figure things out and don’t panic. Stay in communication with whoever is involved. Tell them you’ll get right back to them. Then take a little time to lay everything out, figure out what needs to happen, and make a plan. Then make the call, send the money, get the notary, whatever the case, and push right through.
Wrapping Up
I wanted to share this because so many people reach out to me with valid questions or worries. But it can delay the process of starting. That's why I always say look, just go out there and buy two or three tiny, tiny deals that cost next to nothing. Flip those even if you just break even or lose a little money. Getting started will calm all the jitters and nerves and give you some confidence. Then you’ll begin to realize land flipping is not this big scary thing. You can do this. And if something does go wrong, it's not a big deal to fix it. The main issue is communication. Just get all the parties on the phone, be honest about the issue, tell them how you plan to handle it and make sure everybody is good. Then stay in touch, give them tracking numbers for paperwork, and just keep them updated on the process, whatever that may be. Now you can press forward with your business. So remember, even after hundreds of deals, I still mess up. It's not a big deal. Keep your cool, and keep expanding until you hit your passive income goal.
Check out my YouTube channel if you’re interested in more land investing tips. Also, if you have any questions about the land investing business and need some coaching, shoot me an EMAIL or check out landflippingmichael.com. Then, we can see if we are a right fit for each other and lock you in for a coaching call.
