As we approach the last half of 2023, we begin to reflect on our land business as a whole; what can we change, what worked? More importantly, what is 2024 looking like for land investing?
We reached out to the 2,500 members in our Discord community, fellow land investors & real estate professionals alike, and found that most people are asking these three questions:
From our many years of land investing experience, market saturation is only a concern in popular areas, like Florida. Specifically with in-fill lots. However, exploring less saturated markets and diverse acreage ranges can lead to substantial deals and much fewer competitors.
We always recommend that our students & viewers go against the grain.
Look at the trends (like infill lots) and avoid those areas. Go for the big deals in rural areas & have cash ready, whether you use your own money or work with an investing partner.
The land market is not saturated as perceived. Various strategies, especially Direct Mail and texting, prove effective. Adaptability to evolving market dynamics and testing new strategies is crucial.
You can get a piece of land under contract to sell in 14-17 days. The whole process, from listing your property to getting your pay out, takes 6-7 weeks on average.
It really all comes down to pricing effectively & marketing strategy.
Efficient pricing straight out of the gate, good marketing, and responsiveness to potential buyers are essential for fast land sales. Speed in turning inventory is key to maintaining a healthy cash flow and business sustainability, so you will want to stay on top of the strategies mentioned above.
Year after year, we see a consistent 11% growth happening in the land market.
Predicting the 2024 land market involves optimism, especially regarding cash being a dominant factor. Cash IS king after all. Project-based deals and adding value to sellers will likely drive success and profits in this market.
These project-based deals involve adding value to properties through subdivisions, clearings & aiding sellers. Projects like this have the potential to add substantial profits to your deals.
We have to remember that land is a limited resource. We are seeing more people buying properties not only for building on, but to serve as long term investments.
Someone just bought one of our properties for $250,000 because they KNOW if they hold the property, they can sell it for a massive return years from now.
Ron: Hi everybody. Welcome back to the real estate investing podcast. I’m your host Ron Apke. Today. The topic of the show is the three most common questions.
We are currently getting in the land investing industry from our students, from our discord community of over 2, 500 people. The questions we are commonly getting from just the community in general. So I think this is going to be very valuable. Probably you’ve had some of these questions. If it’s not currently, you’ve probably had them in the past, but before we get to the main topic of the show, let’s go over a question from our discord.
This question is from Zach. Zach asks, when remailing counties you have had success in, are you mailing the same acreage range? Zach, this is a really, really good question. And so what Zach’s saying is, let’s say in June, you mailed a county 2 to 10 acres, you got 3 deals, you made 40, 000, whatever the situation is.
Zach’s saying, okay, now I plan on remailing this county 6 months later in December or January. When I remail this county, do I send the same acreage range? If that is the situation, Zach, where you sent 2 to 10 acres, you got some deals, I would definitely spread out the acreage range and go 2 to 100. Don’t exclude the acreage ranges that you just mailed.
But also expand your acreage range. I think it’s very important. You have knowledge when you’re remailing a county, you have knowledge of the account of that county that gives you a leg up on everyone else. You understand the market better, especially if you did deals and you understand the buyer’s pull, you can be more aggressive with your pricing.
Expand your acreage range for sure. Get more mailers out the door to that county that you made more money in or that you had a success in. That is a really, really good question, Zach. And it’s very important guys. I see it a lot. And this goes off topic a little bit of this question, expand your acreage ranges.
Stop, stop going two to 10 acres, go two to 20, go two to 50, go two to a hundred, go four to a hundred, whatever the situation is. Don’t, don’t just don’t keep it so, um, close together, your acreage ranges. You’ll get some of those big deals. Other than that, let’s get to the show. And like I said, the, the topic of the show, not really topic, but what we’re going over in this episode are the three most common questions I am currently getting.
In the land and investing industry from our students, from our potential students, from our discord community, from just people I network with question number one, is the land market saturated? This is something that comes up. I mean, it’s been coming up. I heard this question five years ago, guys, like that’s the truth is I hear this question every.
single year. Are there things that change? Yes, absolutely. Is this wholesaling houses or trying to flip houses competitive? Absolutely not. There are so many deals out there. What I do find usually on a yearly basis is markets that will get saturated because there’s followers. Someone sees success in outside of Nashville, Tennessee.
So everyone flows to Nashville, Tennessee, and these sellers are getting five letters every couple months, whatever the situation is. But if you’re going against the grain, which is what we tell everyone to do, go into markets that you’re not as familiar, go into markets that people aren’t going to be in, you’re doing that.
The saturation level is minimal to none. And I truly, truly mean that we are getting so many deals right now, bigger acreages, there can be saturation. Like there is saturation in Florida with info lots. That’s a very common thing. There are going to be areas and acreage ranges that are currently saturated because everyone is following everyone else.
You think you can make a couple hundred bucks on an infill lot. I’m trying to make a couple hundred thousand dollars on 50 acre deals, 50 acre project deals, that kind of stuff. And there’s no competition up there, guys. There just isn’t like when you’re trying to buy a piece of land for 250, 000. You have a deal funding partner.
You have the cash ready to go fast. 250, 000. You’re going to get those deals that are worth 500, 000 and flip them really fast and make a couple hundred grand. That’s what we’re looking for. That’s where there is no saturation right now because very few people. In the land industry, know how to attack those deals.
And so many people are pushing infill lots, wholesaling infill lots, making 1, 500 on an infill lot. So, to wrap up this question guys, the market is far from being saturated. There are so many land parcels out there that people are looking to sell. Strategies are going to change. Strategies will change in terms of how we contact them.
And that’s why we are so heavily involved in our land investing business in terms of us buying and selling is because strategies are going to change. And we are testing out, we spend tens of thousands of dollars every single month testing different strategies so we can bring it to the community if something works.
Most of the stuff doesn’t work. What we have found and what we’ve told you guys works over and over one is direct mail, blind offers, and two is texting combining those two is amazing. If we were testing cold calling right now, we’re testing emailing right now. We’re testing different strategies with, um, with mail, whether it’s neutral letters, whether it’s, uh, uh, ranged letters, but right now, guys, the most effective way to do this at scale, and there’s so little, there’s, there’s just so little competition with it is sending blind offers via direct mail.
So I hope that answered question. Number one is the land market saturated. Going on to question number two, how fast can you sell land? What is your average days on markets? Essentially what we get a ton of what, how long are you holding inventory? And this is something that again, it is going to matter market to market, but most markets, if you price correctly, you can sell within 14 to 17 days.
And when I say sell on me and get under contract, that is what we are seeing. We are getting things under contract in 14 to 17 days. Very, very consistently. If we’re aggressive on our pricing, if we’re pricing correctly out of the gate, marketing correctly out of the gate, that is what we’re seeing. We typically, we prefer cash offers or easy loan offers.
People that really qualify well for a loan. So we have another four weeks of closing after that. So our average hold time is anywhere around six to seven weeks. It’s a very average hold time through the whole process. Um, but yeah, to sell your land fast, to keep your days on market fast. And that’s the name of the game.
This business is turning inventory. You do not want to keep inventory too long. It is going to kill your cash flow. It’s going to really hurt your business. It is a very important thing to be able to turn inventory fast. Part of that is speed, getting things marketed fast and correctly, getting things priced correctly out of the gate, like I said, and then just being responsive with buyers.
If you’re not responding, if you’re not answering the phone and you have something posted up, it’s going to take you a heck of a lot longer to sell a property than me. If I’m answering every single phone call, I’m talking about it. I’m trying to sell them the property. I’m getting them good directions.
I’m getting them out there. I’m checking up after they go out to the property. Like that is what you need to do to keep your days on market low. There’s a skill in it, but a lot of it’s not even the skill. It’s just the effort along with it. So yeah, 14 to 17 days is very normal. If you don’t do things right, it’s just going to sell the market forever.
If you don’t price it right, if you don’t market it correctly, if you don’t respond to them, your days on market could be 50 days, but there is a way to get it down to two to three weeks, very, very easily with a few adjustments. Number three, what is my prediction? What is our prediction for the 2024 land market?
I am, I’m, I’m typically optimistic, like over 10, 15, 20 year period land as a whole is going up 11 percent annually. Like it is going up constantly because the limited supply, because the remoteness, I don’t know if that’s a word, but because the remoteness of our society, what direction that is going in.
So I’m constantly very optimistic. If we talk about the land flipping market in 2024, like same thing, cash is going to be King. So if you’re taking care of your investors. If you have good people on your side, good deal funders on your side, I really think that is going to carry you well into the land flipping market in 2024.
Uh, people, sellers, people around the country are going to need money. Like money is very, very powerful right now because how high rates are. So if you give people two, 300, 000 offers, like I said, in the first question about the saturation, if you give people two, 300, 000 offers, there’s very, it’s very realistic that you can buy something for 200, 000.
That’s market value, 400, 000, like I said, having investors on your side, I think big deals are the future, to be honest with you. I think project based deals are the future. I don’t think it has to be building a house on a property, but being able to give more value to the seller when needed, whether it’s cutting the seller’s house out of the property.
So they can keep five acres with their house and you take the other 55, or if it’s buying the land and subdividing it out. Or if it’s buying the land and clearing a little bit out and putting a driveway in there, I think those are going to be learning how to do that in 2023 is going to just move you forward.
Like, it’s going to give you a skill set that puts you above any competition. Uh, so keep on looking for those opportunities. And what I always say, guys, it’s like, and we’re talking about 2024, but like what I tell our members, what I tell our students is do not force those project based things. Um, Mike, one of our very successful students right now has a deal that he was talking about putting a driveway and clearing a spot to build.
And I just told him like, I don’t know if you’re going to see any return on investment. Maybe you’ll make a little more money on the property, but like you’re buying this deal. I, I forget the numbers I want to say is buying for 109, 000 and market values like two 50, like you might put 10, 000 into it. And get to 65 to 70 out of it.
So that would yield you an extra five or 10, 000, but you also have to keep in the mind, the work of managing the, uh, land clears, managing all of those, make sure they get out there and then you might lose some time as well. But learning how to do it when the deals come up, that make a ton of sense for clearing something out for subdividing, for helping the seller out with a survey and serving off part of their land and you keep the rest, that is the value points that are going to be very, very valuable.
Going for 2024, 2025, and people are going to make millions of dollars in land every single year with these simple, simple, simple, simple project based things. But keep that in mind, but overall guys, the land market is going to keep going up. It is a limited resource. People are looking for land right now more than I’ve ever seen since I’ve been in this business.
Like there are tons of buyers out there, just people who want to own land is what I’m saying. I’m seeing so much of, and we just sold a property for 250, 000 and they literally told us like, I have no use for this. I just like this area and I want to, I I’m holding it as a long term investment. This is a 250, 000 investment for them, but that being said, guys, I know this is a shorter episode.
Hopefully that brought you some value. Like I said, these questions I am hearing every single day in the industry. If you have any additional questions you want answered in these podcasts. Please reach out and discord. I’ll do my best to answer them. Other guys, thank you so much for listening, watching, please like, and subscribe on YouTube.
It really helps us, uh, grow the community, grow everything. If you guys need anything from us, please reach out and discord. Other than that, have a great day and we’ll see you next time. 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.