Whenever I talk about my passion (land investing), I am often asked the same questions, so I thought this would be a good topic for a blog post. Here are the Top 10 most frequently asked questions and my responses:
1. Does this really work? Yes. If you work at it. If the information sits on the shelf untouched, then it obviously won’t. If you treat it like a business and consistently take efforts to move it forward, it definitely works and you can read my previous blog post for more information about my own successes.
2. How much money does it take to get started? This depends on you, your goals, and available funds. If you are strapped financially you might want to begin by assigning contracts which involves you finding a seller and a buyer and collecting a fee for assigning the contract by putting the two people together. For this, you really only need to pay for the cost of the mailing, but for credibility purposes I would also recommend having an 800 phone number and a basic ‘buying’ website for people to contact you and both of these can be accomplished for less than $20.00/month. Once you have some capital to work with you can begin to buy properties outright and then turn them around for sale.
3. Is it as easy as it seems? The steps are easy but there are many and if you are working the business alone and part time (like me), it can feel overwhelming at times. What I recommend is to take it one step at a time and work the business sequentially. For instance, learn how to do first things first…buy a property (get 800#, website, list, mail, answer calls, analyze/make offers, perform due diligence, go through escrow process, understand title report, etc.), and then sell a property (yourself vs hire someone vs hybrid, marketing, documents, loan servicing, etc.). You will learn the details along the way as you go through your first cycle so don’t get overwhelmed. Just keep moving through the process and it will all make sense. Get in line and stay in line!
4. How do you get data records so you can send mailings? There are many ways, but my two favorite ways are to partner with a good escrow/title company so they can provide you with online access to extract your own data (“farms”), and they can also provide you with access to property profile reports for a property you are considering purchasing. Profile reports contain APN, legal description, owner info, assessed value, property size, plat maps, neighbors, and comps if there are any. Another favorite way is to utilize inexpensive paid online services to extract data and the extra benefit of these services is you are able to find an aerial view of your property by APN and use that image in your online marketing. See my post for a great online resource.
5. I don’t have any real estate experience, can I do this? Yes. If you can follow directions, and not be afraid to ask questions along the way of the business partners you will be working with (escrow/title companies, realtors, fellow investors/mentors, etc.), and you are willing to “pull the trigger” when it comes time to making a purchase, you can do this with no prior real estate experience.
6. How much money can I expect to make? Though I get asked this question a lot, it’s one that really can’t be answered because again, that depends upon the effort that each person puts in. If you buy a property right and sell it right you will make money but those numbers depend on you, your ambitions, your risk tolerance, your price range, etc. See my own profit margins.
7. How easy is it to sell a property once you own it? This again depends upon your strategy for selling. If you simply list your property with a realtor for retail price that could take a very long time. However, if you offer competitive pricing and utilize online marketing such as Craig’s List, Postlets, Backpage, Landflip, Landwatch, Kijiji, etc., and supplement that with social media such as Twitter, Facebook and utilize a squeeze page to build a buyer’s list for email marketing then your audience is significantly broadened which increases your liklihood for a faster sale.
8. Where do I start – what’s first? 5 easy steps to prepare to make a purchase: 1) Pick a company name (even if it’s a temporary DBA name) so you can use it in your marketing; 2) Get an 800 # to make it easy for people to call you; 3) Set up a simple ‘buying’ website for people to easily answer questions about their property; 4) Get a List; 5) Mail. Then prepare to answer the phone! And, if you plan to purchase properties in an LLC, you might want to get that process started while you are doing the first 5 steps.
9. How much time do you need to spend working at this business? This is a difficult question and really only one that you can answer because it’s based on your drive, ambition, and goals. I have a full time job and have been able to successfully work this business on nights and weekends.
10. How can I get further help? Jack Bosch recently launched brand new coaching programs! See my blog post to find out more.
I hope this was beneficial and if you have any additional questions/comments feel free to click “Leave Your Comment” or “Leave a Reply” for this or any blog post . To Your Success!