The first thing a real estate investor needs to decide, is what is your strategy? Everyone hopes to buy low and sell high. Few consider the riches available by investing in bare land.
The Land Geek, Mark Podolsky, shared his journey from a workaholic investment banker to a two hour per week passive income professional investor in bare land.
Mark’s investment banker training taught him that a company with fifteen percent EBITDA was a good company. When his new work colleague showed that investing in land he could make 300 percent, he had to see for himself.
Sure enough, when he took the three thousand he had saved for car repairs and turned it into nine thousand, in less than thirty days, he was hooked. In just eighteen months of investing on the side, he was able to surpass his income as an investment banker.
So, he traded in his one hundred hour work weeks, for what is now no more that two hours per week.
How Can You Make Money in Bare Land?
Throughout America, there are parcels of land owned by people who no longer value the property. The clues are are easy to detect.
Mark sends out twenty letters each day to the owners of these unwanted properties. The letters are short and to the point and include the price he is willing to pay. The response rate averages three percent reply, a success by direct mail marketing strategies.
When he finds a willing seller, he can acquire the property in just seven days and resell the property in as little as thirty days for as much as three hundred percent return on his investment. Sometimes, he makes more, upto one thousand percent.
How can you make more in bare land?
The secret to making money in bare land is to make it more than just a transaction by offering seller financing. These small value properties are not what banks are looking for, so the buyer will either need to purchase with cash, or be willing to agree to seller finance terms.
Using a land contract and promissory note, you can get your purchase price back as a down payment, and offer terms for as long as you want. The longer the term, the greater your return.
Mark has figured out the pain points and automated whenever possible. This includes payment collections. His motto is if you only have one form of payment, you have none. So, he makes it a practice to collect a primary and a back up payment, so that he never misses a payment.
In 2016, Mark completed 192 deals using this system.
To learn more about investing in bare land and get your Passive Income Blueprint