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Land Investing Online

In a recent episode of The Real Estate Investment Podcast, hosts Ron Apke and Anthony Weiler explore the lucrative potential of subdividing land parcels.

They reveal that by leveraging ample road frontage, investors can break larger parcels into multiple smaller ones, significantly increasing their flexibility and profitability.

Anthony, drawing from his sales background, emphasizes the importance of engaging with sellers through cold calls and text messages, ensuring multiple touch points to seize valuable opportunities. Particularly for deals promising substantial returns, such as $100,000 from a single subdivide, these strategies are crucial.

Watch or listen to the FULL episode below to get an in-depth look into how subdividing can greatly increase your land flipping profits. Start implementing this strategy today!

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View Transcript here

Ron: If you have enough road frontage, break it up into as many parcels as you want. So when you get these opportunities coming back, you have so much more freedom with what you can do.

Anthony: So for me, I mean, I have a sales background. I just want to have a conversation. I don’t care if they’re looking for full market value or not.

Ron: Do via cold call or text or a combination of the two?

Anthony: Combination of the two. There’s just different types of personas with the seller and I just want to have multiple If it’s something to where I can make a hundred grand on

Ron: I would probably price mail at like 75 percent of market values. If they all fit subdivides, the numbers will make sense.

Anthony: It’s not much different than the regular land flipping model. In my opinion.

Ron: Hey everybody. Welcome back to the real estate investment podcast. I’m your host Ron Apke joined by Anthony Weiler, my co host for this episode. And today we’re talking about subdividing a step by step. I think we’ll try to give you step by step on how to make a hundred thousand dollars on a single subdivide.

And really just saying that sentence, Anthony, like it is not a difficult thing. Um, there is some, like, I don’t want to say skill, but like acquisition strategies that go into it. But like, I have no doubt. And I was thinking about this last night, like literally, I was pulling my garage and I was literally thinking about this last night.

I’m like, I don’t know. I could get a subdivide deal that made me a hundred thousand dollars in the next 48 hours. I have no doubt in my mind that I could do it, um, with different strategies, getting texts out, just talking to different people. I might be able to find it on the market. It’s not that difficult of a thing.

You need some education, I think, um, understanding land, obviously, but making a hundred thousand dollars on a single subdivide is not a crazy thing by any means.

Anthony: It’s not at all, which is pretty crazy to say because it’s, it’s a fairly simple process depending on regulations and all, and we’ll get into all of that good stuff, but, and they just randomly can come across your plate too when you’re doing blind offers.

Um, so no, I’m, I’m really excited about this. We’ve done plenty of subdivide deals. Funded subdivide deals. So this will be a good topic.

Ron: We have more, more surveys going on right now than we’ve ever had. I have no doubt about it. None of them are huge subdivides, like breaking up into 20 parcels. We’re not doing that currently.

Um, but like just breaking up into a few different parcels and I don’t know what the numbers are on a lot of these, but just the increase in profit when you break it up into three parcels, opposed to selling it as one parcel. But going from there, I think what you talked about, Anthony, is the first thing you said.

And I don’t know if you said, no, if you said it, no, you said it, um, was just like, if you’re targeting with blind offers, are you targeting the subdivide? Or are you just sending mail to bigger parcels in general? So there’s two different strategies that like does every parcel you fit? That’s like the first thing you need to choose like do I want to target target subdivides?

Or do I just want to send some mail out and see what comes back and some might fit? Where some of the deals are going to come back and not fit subdividing, but that’s the first choice you need to make um When you’re sending mail out, I guess is like what’s the goal of the mail? You Right?

Anthony: Yes. Absolutely.

And, and again, like, uh, like you’d said, you can send out blind offers and then, yeah, those will come across your plate and w which is great. But I think being more strategic too, I think that’s something that, you know, is what people are starting to do in the community, especially like the episode we had just recently recorded like zero to 1 million.

One of the big steps is like, how can you become more niched? Where is there like going after bigger deals? Well, subdivision. Minor subdivisions are those bigger deals

Ron: For sure. So let’s just kind of go down that path. The first step to this whole thing is choosing a market. Um, and when you’re choosing a market for a minor subdivision or to target deals for minor subdivision is one, you want an area that is going to be lower regulations.

So you want to either call the County or you want to look on the regulations. Like what? Do you need to do to do a minor subdivision? What does it look like? Some counties are going to say like you cannot do this unless you go through our board our county board get permitting do all this Other counties are be like if you have enough road frontage break it up into as many parcels as you want Each parcel needs 100 feet of road frontage or x feet of road frontage do whatever else you want And you want the second the latter As far as lower restrictions on these minor subdivisions.

So when you get these opportunities coming back you have So much more freedom with what you can do.

Anthony: Yeah, absolutely. Cause there’s, we’ve had some that have come across our plate and then it’s like, Oh, we have to do a road. But then the, um, the fire marshal saying you have to have two entrances for the road, then it has to be designed like this.

And it’s just so much red tape that you have to go through. And like you had mentioned, it’s really important to find out the subdivision regulations first, especially if you are, you know, specifically, Targeting just for subdivision deals. You need to know that on the front end. And then also too, if you’re targeting like a really, really rural area, if you split it up into five parcels, is there going to be demand for that?

So make sure you look into that. There’s been some submissions to me. It’s like, Hey, do you think this is a subdivision deal? I’m like, there’s nothing around here. If you split this up into five fives, I cannot see end buyers. I, there’s no demand. There’ll, this will be here for probably for a couple of years.

Ron: So what I would do, let’s kind of get kind of. Pretty detailed with the instructions for it. Cause I want people to be able to take action from this episode. So what I would do is choose an area you like and run numbers or not even run numbers. So what you’re going to do, pull 15 count, not pull the data, but look at 15 counties in an area that you like 10 to 15, whatever it is.

And then go through each one. You want to find out what the regulations are and then like Anthony’s. Saying you want to make sure like five acre parcels are moving 10 acre parcels are moving because if you get a hundred acre parcel in a Area where land isn’t moving like what can you do with it split into 250 acre lots something like that?

You want to be able to cut that 100 acre parcel into 10 10 acre parcels 5 20 acre parcels or some kind of mix match Miss, uh matching them up as well, um with different sizes for sure, but that’s what i’ll do regulations So what, what counties of those 15 have strict regulations? What do they look like?

You might have to call counties, like that’s the reality of it. You might have to get on the phone and call counties as well. Um, and then also, Is land actually moving? And that’s kind of like a yes, no. Like how many parcels have 10 acre parcels have sold in the last six months, 12 months, whatever you want to do, just make sure land is moving.

And then those counties, you might have five counties with very few restrictions and the land’s moving. Those are the counties you want to start with. Uh, anything to add there?

Anthony: No, I think that’s spot on. That’s, that’s a great. point to start at, then I think people need to start thinking about like, okay, well, how do I specifically target this with my marketing strategy?

What does that look like? And what should I even offer? Should I be more competitive? Should I offer How I normally do anywhere from let’s say 40 to 45 percent of market value. Should I go above market value? And I think

Ron: Neutral letters like there’s a lot of different options.

Anthony: Yeah. And I think that’s, I think that’s the next point people need to focus on is on that.

Ron: So one, how you’re going to get the data. So the first thing before what Anthony’s talking about is how you’re going to get the data. Um, we like to do it on the way and portal just manually kind of look and what you’re looking for. So let’s say I want to target twenty to a hundred acres. What you’re looking for is properties with road frontage.

And you can really just deselect which properties don’t have enough road frontage that don’t fit. And then what you’re going to have is a list of a couple hundred parcels maybe. Maybe a little more than that. Of parcels that fit a subdivision, a minor subdivision. So you have whatever you want as far as the road frontage.

Um, and you can look at the regulations, everything like that. So you can understand it more, but you are going to pull the data. So now you’re going to have a list of, I would try to get at least 500. You can do multiple counties at the same time. That’s the nice thing. You could do a polygon search also on the LAN portal, if you want to do that.

And then pick certain areas that you like. Um, but now you have a list of 500 to a thousand. I would try to be higher. Close to 700 to 1000. We don’t have exact data. That’s the thing. We don’t have exact data on how many, how many mailers you want to send out to get a deal for something like this. It’s going to be lower.

I really do think it’s going to be lower if you do it the right way, but you have a list of a thousand. Talk a little bit more about your thoughts on like, how are you going to price these out? So you have 20 to a hundred acres, a thousand data points essentially. How are you, what are your thoughts on the different acquisition strategies there?

Blind offers versus neutral versus tech. We’re like, what are you doing?

Anthony: So for me, I mean, I have a sales background. I just want to have a conversation. I don’t care if they’re looking for full market value or not. So for me personally, I, I would do like a texting campaign. Um, but I, I would do multiple different avenues for, um, just trying to be on the phone.

So whether that be texting, whether that be through cold calling, you could do a blind offer. I think just with subdivisions, it, it all just depends. I think that’s a little bit more nuanced in my opinion. Uh, I, I, I wouldn’t do neutral letters. I’m just not a fan of neutral letters myself, personally. It’s expensive.

Yes, it is very expensive. I’d rather have like, just Yeah, let me have a conversation and I think cold calling and text messaging is a low barrier to entry. Um, but if you have the marketing capital and you want to AB testings, then yeah, absolutely go for it. I just think it’s a little bit trickier doing blind offers for, um, if you’re specifically targeting subdivisions, I just think it’s going to be a little bit harder to price out just because, I mean, there’s so many options that you could potentially have with it.

Um, depending on the regulations, you could split it up into totally different types of sizes that could change your margins. Yeah. Absolutely. And that’s just harder to price on the front end, in my opinion. So again, for me personally, like I love talking on the phone, just get me on the phone and let me, let me see what I can do.

Um, so that’s, that’s me personally, um, in terms of my acquisition strategy of how I’d go about it. And you had said something earlier and, um, I wanted to touch on it. I cannot wait for that land portal free feature for the road frontage. That’s going to be an absolute game changer for people being able to use it.

Ron: Cause then you can, what we’re going to be, what you’re going to be able to do is like. On your exported sheet, it’s going to tell you how much road frontage you have. Exactly. So then 20 acre parcel. I have 300 feet of road frontage. Like I probably can’t split that more than two times. Um, or you can do some weird shapes, stuff like that.

But, um, yeah, go on. Sorry.

Anthony: And that’s when you can effectively, that’s when you can price more effectively, in my opinion, then I think like, okay, blind offers make sense for that. Um, but, um, again, it just depends on what you could do with the land. So I want to have the conversation first, learn a little bit about it, and then I’ll send an offer.

Um, that’s me personally, and that’s how I would start targeting it myself.

Ron: So you would do via cold caller attacks or a combination of the two

Anthony: combination of the two. Um, I would even consider sending mail to, again, I’m not a fan of and it’s a little expensive. But like we talked about on a recent podcast episode, we’re a marketing company.

I want to AB test things. I want to know what’s working, what’s not working. I have the capital to do so. And if you also have the capital to do so, not everyone’s going to open up a piece of mail. Not everyone’s going to open up a text message. Not everyone’s going to accept a cold call, but you, there’s just different types of personas with the seller.

And I just want to have multiple touch points, especially if it’s something to where I can make a hundred grand on, and I’m maybe spending three to 5, 000 on marketing. I’ll do that all day.

Ron: Yeah. For me. I think what I would do like before I have data behind it, because like I said, like we’ve done this stuff, but we don’t have enough data behind it to tell you guys exactly.

Um, I know for a fact this works like I know no doubt about it. It works. I would probably price mail at like 75 percent of market value, something like that. Some areas like it’s going, if they all fit subdivides, that’s going to work. Like I have no, like numbers will make sense. The thing is about what kind of response.

And then I would also add a followup text to that. Um, so you are, you need to get in touch. You need to get these people on the phones. Like these are big potential deals. Like we’re talking about, these are all a hundred thousand dollar plus potential deals. You need to find a way to get these people on the phone, whether it’s.

Offering 75 percent with a follow up text, whether it’s cold calling, whatever it is, getting these people to have conversations, offering that cash that you can offer them is so, so valuable. Um, I, I, the, the backend, like you, that your acquisition strategy can vary so much getting that list is I think the most important thing, like getting a list of qualified.

Subdivide parcels is like the most important thing, um, in a county that it works in. And then you can do so many things from there. Acquisitions is acquisitions. Like you need to figure out a way to get in touch with them, make an offer, uh, and then follow through, deliver on what you offered.

Anthony: Yeah, absolutely.

And that’s interesting to doing 75 percent of market value. I think that makes sense. It’s something that didn’t even cross my mind. I always, I’m kind of stuck in the mindset of like, Oh, maybe 50 to 55 percent just because of the potential unknown. But like you said, there’s still going to be

Ron: There’s more known though, with this, with us hand selecting the list.

Anthony: Exactly. And there’s so much more that you could work with. And you have a much better understanding of the land and how you could price things out. So I think that that’s, That makes complete sense. Um, but yeah, it’s, it’s really exciting to see people in the community because this is what they’re starting to go towards now.

And I think with the data getting better as well, I mean, this is just going to be a whole new area for people to target. Yeah.

Ron: You can like, it is, Anthony said it, did you say in this episode, it’s a marketing, maybe you said it last episode, like it is a, this is a marketing game. How do I get in touch with people?

How do I get in touch with people that are interested in selling their land? When you like our offer gets more and more intriguing when you can offer higher percentages of market value, that 50 acre parcel might be worth 100, 000. It might make sense for us to buy it at 100, 000. If we can subdivide it, we can do some improvements and we can still make our 100, 000 or 150, 000.

Those are the realities of the numbers in this business with minor, minor improvements. Let’s get to the last kind of segment here, Anthony. That’s how you do it, guys. Like, that is how you do it. Test some things out. It’s not expensive. That’s the cool thing. But who should be doing this? Like, would you say anyone starting off the bat should be doing this?

Who should be doing this?

Anthony: I wouldn’t say people starting right off the bat, unless that’s how, unless you want to target just subdivision deals. I mean, you can, I just think there’s more trial and error. In my opinion, I think it’s good just to get a few deals under your belt. You have some profit to play with, and then you can start really testing things out.

Once you understand this business model, I think people. Like we had talked about, I think the last episode, the six month mark is when people really start to take off and go from there. They understand the nuances, they understand, you know, what works, what doesn’t work. And I think just get a couple of deals under your belt and then start to look to niche in other areas.

And then you start to realize with these bigger deals like these subdivision deals, It’s not much of a difference. Like what we just described, it’s not much different than the regular land flipping model. In my opinion, like it really isn’t, you just have to find out the regulations, price it, and then get a survey done.

And other than that, like, it’s not that much different. So I think anyone can do it, but I recommend just get a couple of deals under your belt first.

Ron: I agree. Other than that, guys, if you guys have any questions, any other suggestions for future episodes, let us know in the YouTube comments below, if you’re listening on Apple or Spotify, share this with a friend, share it on your Instagram story, anything like that.

Other than that, thank you so much. We’ll see you next time.

Dan: As always. Thank you for joining. Please do us a huge favor and like, and subscribe our YouTube channel and share this with a friend. It really means the world to Ron and I, but more importantly, it could help change the life of someone else.

Thanks for joining and we’ll see you next episode.

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