How To Find Profitable Land Deals

So, how can you find profitable land deals for investing and flipping in this ridiculously red hot real estate market?  I'm going to walk you through exactly how to make that happen. But before we dive in, I want to let you know we just launched The Land Flipping Formula Mastermind. If you need help getting through your first or next land investment deal, let's be real, one-off coaching sessions are not the easiest way to get results. It can be challenging because you have to set up multiple meetings, and there are a lot of steps along the way. With our mastermind, for only $50 a month, you're in a Facebook group full of other investors. Then you can throw your questions out there and get fast answers. I will be there to answer your questions and help you navigate the land investment game so you can get the results you need.

Start With Off-Market Property

Let's get into some immediately actionable strategies. How to find land that will be a phenomenal investment even though everything seems overpriced? With how quickly properties are moving right now, you have to focus on off-market deals and direct mail marketing. So let's be real—motivated sellers are everywhere. Don't let the market fool you into thinking everybody knows what's happening. For many sellers, it’s a hassle to list a property with an agent, get the assessments done, and get it listed. Some people would rather lose it to tax foreclosure and just have it go away. Use this as an opportunity. First, though, you need to know the land values. I've said this a gazillion times, and I will continue to say it because it's an essential part of land investing—knowing the value. 

So let's say we’re looking at Xyz County in West Virginia. Check Zillow first because that will show you the retail marketplace. Start searching for land listings that are available in whatever county in West Virginia, five acres and above. Search out five-acre lots and see what they’re listed at. For this made-up scenario, we’ll say they're all listed at retail pricing of $50,000 and above. On Zillow, $50,000 is the cheapest we could find listed, and let's say it's been on the market for twenty days. We're not looking for stuff that's sitting to determine what it's worth. If we saw a $50,000 five-acre lot sitting on the market for over a year, that would mean that property is way overvalued; it’s probably worth $25,000. But the first property—let’s say it's on the market for a few weeks, and $50,000 is the cheapest available. It looks like everything's selling fast. So we determined that five-acre lots within this county that fit these criteria are worth about $50,000 on the exit price. 

Make Incredibly Low Offers

Now that we have determined the value, we can start doing direct mail marketing. Begin by targeting owners who own property within West Virginia that live out of state. These owners are going to be detached, it's not in their backyard, and we're going to make some incredibly low ball offers to them. We want to purchase these properties really cheap. Now early on in my real estate investing career, I was in the residential game. I wondered why the margins were so thin and why I knew other guys were pulling crazy deals. One of my buddies happened to be making crazy profits, and he gave me some great advice. He said he learned early on to make offers, so cringe-worthy low that the person you're offering to is ready to punch you in the face because you insulted them so badly! Now that's all figurative; we don't want to get beat up making offers! But in reality, that's how you make incredible profits. You never know how motivated someone is. 

So here's how this works—start with a direct mail campaign. Target owners that live out of state. Maybe they have five-acre lots that you could flip for $50,000. I would send them all offers of about $10,000-$12,000. Start incredibly low to get the conversation started, and maybe you’ll get lucky and find the right person. Maybe they owe $5,000 in back taxes and want to let the property go. They'll absolutely accept that low ball offer of $10,000. You could take down that property and clean up the $5,000 in taxes. So you're in it for $15,000 plus closing costs; let’s call it $17,000. Then flip it for $37,000 because you are well below what the cheapest property is listed for; that's how this works. So know the values, then determine the property’s wholesale value. So if the cheapest home is $50,000, then the exit price is safe at $37,000-$39,000. You could undercut the whole market.

Sell Under Market Value

Now that we're set at that number, we want to throw an incredibly low offer to the marketplace and see who says yes. If it's a fantastic offer, boom. But also, maybe we need to get that negotiation started to close and get it flipped. Keep in mind you shouldn’t be afraid to walk away, but keep the door open. I do this with a lot of people. I send a lot of direct mail. They’ll get back to you and say— there's no way I would sell for that! So even if someone goes crazy on you, just keep the door open. Say, hey, I didn't mean any disrespect. I'm just testing the market to see who is interested in selling low, and you just happen to be on our data list; if you ever change your mind and want to sell, or if you are flexible in price, reach out to me, and I will cash you out. Approaching people this way is going to build relationships. And let's be real, a lot of people are in the real estate game, but not many people actually close on deals. You'd be surprised how many deals I take from investors who were willing to pay more than my offer price because they never follow through. Many people circle back after a while and remember my offers, and I end up closing, boom. So don't be discouraged by all the competition in the marketplace.

Wrapping Up

This is how you get land really cheap. It's all about good business. So when someone is ready to do business, make sure you follow through. And when you cash them out on the deal, and they get their check, always send a follow-up letter. Say hey, I really, truly appreciate you doing business with me. If you have any other properties you want to sell, feel free to reach out to me, I would love to review them and make you an offer. Or, if you know anybody who wants to sell, let me know, and I will pay you a commission if I make the purchase. Make relationships, get people to work for you, and you’ll get more deals than you can flip with the quickness. 

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.