Land Investing Online

4x Your Investment with One Land Flipping Deal (2024)

In the world of real estate investing, the spotlight often shines on big-ticket deals—buying vast acres for a fraction of their potential value and reaping substantial profits.

However, hidden beneath the allure of these grand transactions lies a treasure trove of smaller deals that can yield remarkable returns with lower risks.

In this episode of The Real Estate Investing Podcast, Daniel Apke & Ron Apke delve into the strategies behind turning a modest land investment of $5,000 into a substantial $27,000.

Many investors overlook small-scale transactions, yet they can be the cornerstone of a successful real estate career. Imagine purchasing a property valued at $5,000 and strategically selling it for $27,000—that’s the epitome of a high-return, low-risk investment.

These deals may not be as glamorous as million-dollar properties, but their margins and potential for quick turnover make them a compelling entry point into the land investing space.

Watch or listen to the the full episode below ⬇️

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Ron: If your first deal is buy for five, sell for $20,000, that’s a huge success. It’s proof of concept, it’s a ton of marketing money, but a lot of people get off the ground with these and it, it does well.

Dan: We get a tone of these deals cause it’s a smaller asset clash. It’s less likely going after someone for a million dollar property and that’s worth $3 million.

Yep. Like that’s a $2 million spread there. But when you’re talking about $5,000 property, that’s worth 15, 20, 20 5,000. The motivation is there because, uh, the asset’s not working it as much.

Ron: Just make sure you understand the market. Make sure you know what you’re getting yourself into. These shouldn’t be like question mark.

Worst case scenario, I list this deal at 19 and I sell it right away.

Dan: Hey everyone. Welcome back to the Real Estate Investing Podcast. In this episode, we’re going to talk about unveiling the secrets to turning 5, 000 into 27, 000. I’m your host, Daniel Apke, joined again by my brother and business partner, Ron Apke.

And this episode’s about one deal, taking one deal that’s 5, 000 you’re buying it for and turning it to 27, 000. This isn’t about turning your 5, 000 of, you know, money you want to put into this business to 27, 000. That’s easy to do. We talk about that really in our elder episodes. But we wanted to talk about this because, you We talk about bigger deals a lot, but at the same time, there’s so many small deals out there and, and we’ve done them over and over again.

Our students have done them over and over again of, you know, 5, 000 deals, 8, 000 deals, you know, 4, 000 deals and selling them for 25, 30, 50 that like those deals, the margins are insane. And although it’s not as pretty or. Doesn’t sound as good as selling, you know, uh, buying a 75, 000 piece of land and selling it for 200.

It’s this, this deal, the margins and the low risk. And it’s just, it’s awesome what it can do for your business. And it feeds the, it’s just, it can, it can really be a good stability for your business.

Ron: Yeah. Over the years, we have so many examples of these types of deals, 5, 000 to 25, 27, 29, and it’s just. You can find these deals.

These deals are out there for sure. Uh, and these are like the, I don’t want to call them base hits, Dan. Cause it’s such like a base hit. I feel like would have more risk than that. You know what I mean? Like this is a double, probably not a triple, but like, this is still making 15, 20, 000 on a deal and these deals, like I said, are out there.

Um, but the keys to it, like when you’re. And the thing about it, let’s, let me back up a little bit. Yeah. Like Dan said, we talked a lot about big deals. I don’t want you buying the thing about it. I don’t want you buying a deal for 5, 000. That’s worth 10, 000. Like that’s not what we’re trying to do. We talked a lot about buying for 40, 50 percent of market value.

When you’re offering 5, 000 on a deal, I want it to be worth, I want that to be 25 percent of market value, maybe like, 33%. But buy for five, sell for 15, your margins get thin. Like they get thinner than they sound.

Dan: Feel good for someone starting out though. But if you’re, once you get up and going, they’re not good.

They’re hassles.

Ron: A hundred percent. But these have such an impact on like new investors. Cause like. The margins are better than anything they’ve ever done. So if your first deal is buy for five, sell for 20, 000, like that’s a huge, that’s a huge success. It’s proof of concept. It’s all these things. There’s a ton of marketing money and that’s what I want.

A lot of people get off the ground with these deals. Not saying I’m just target these deals, but a lot of people get off the ground with these. Their first deal is buy for five, sell for 15, 17, 000 and it, it does well.

Dan: Yeah, exactly.

And these deals are, uh, there’s a variety of reasons why someone would accept.

These buy for 5, 000. So for 27, 000 deals and you got to realize these, it’s all about motivation. When you have margins like that, like the people need that money, they need it quick. That property is, uh, it’s not a huge asset. And a lot of these people, we get a ton of these deals cause it’s a smaller asset class.

You’re talking, you know, an asset that’s worth 27, 000. Um, and you can offer them, you know, quick closing cash really fast and it all comes down to the motivation of why. It’s less likely going after someone for a million dollar property and that’s worth three million dollars. Yep. Because that’s such a, like that’s a 2 million spread there.

But when you’re talking about 5, 000 property that’s worth 000, um, maybe by 8, 000. So for 25, things like that. Um, the motivation is there because the, the assets spread in the, the assets not worth nearly as much.

Ron: And there’s no way for them to sell it. Like that’s the reality of it. No realtor has taken a 25, 000 piece of land deal.

Not no, I don’t want to say, but very, very few realtors. Even if they do take it, they probably don’t know how to sell it because these deals 20, we’re not selling. If we get this type of deal, we’re not selling on the MLS. Like this will be a Facebook sale. This will be a land. com sale. This will be a Craigslist sale where we’ll sell it.

So you need to know how to actually. Sell it. And that’s what we’re offering to these sellers is a fat, like here’s 5, 000. Do you want it? I can get it for you in two weeks. We can do this extremely fast and make it easy. We’ll pay closing costs. You don’t have to worry about taxes. And like Dan said, it’s just a timing thing.

It’s the motivation of the seller at the time that they receive our offer, receive your offer is like, what’s, what’s the motivation at that time. And then you just have to do the work, make it easy for them. You cannot make it a difficult process because. They’re not getting a ton of money, but if you can make it easy enough, it makes sense for them.

Dan: Absolutely. And these are all off market deals. I mean, these are blind offers that we’re typically sending. You can do it neutral and all that stuff. But for these lower deals like this, where you’re offering specific amount, offer blind offers at a small amount with a quick close that ground was saying and everything, uh, in your letter, these are off market deals.

You’re going directly to vacant landowners in your targeted area. Uh, maybe it’s outside Georgia. You’re going, you know, to Two acres is worth about, you know, 20, 000. Maybe you’re going to offer 5, 000 for him, right? So anything between two to three acres out for five to 7, 000 or whatever that is. And it’s all off market, right?

That you want to find the most motivated people. It’s a shotgun approach. I’m going to send anyone who owns two to three acres of vacant land in Macon County, Georgia, or around that area. Uh, offer letter with that price on it. And that’s how you get those deals. You know, Ron and I talked so much about the bigger deals.

Like I said, going from two acres, your minimum to a thousand acres, 500 acres, all that. Uh, but there’s so much room in the majority of your deals that will come back will be two, three, four, five, six acre deals. Just because that’s the person that’s. Most likely to sell their asset.

Ron: Yeah. The big deals are amazing and they’ve, we’ve made so much money, so much more money than the small deals on the big deals, but there are so much fewer and farther between like, if you’re worrying about marketing money.

out of marketing money or stretching it too thin or not being able to get the bigger deal, whatever the situation is, like you need to keep some of these smaller offers in there because it’s going to be a higher response, right? You’re going to have a higher close rate. It’s going to like, I want new people to get that proof of concept.

Like it’s very, very important. And then even if you’re experienced too, and you don’t mind doing. You want to be more particular maybe on these smaller deals as far as one, the margin, the risk, like the quality of the land, all of that. But these deals like they help, they really do. But deals that do push your business forward.

Like if you’re trying to get out of your job, like doing 50 hundred thousand dollar profit job deals is what’s going to make it at the end of the day. But I think you’re going to go a different direction.

Dan: No, no. I was going to say, what makes this so appealing for someone just starting out too is if you do have the money to do it, And you don’t need to split the, uh, you know, if you have four or five, if you can fund yourself and keep all the profits and money, because the risk is so low, if it’s good land and you have it at 5, 000, the risk is very low.

It’s a lot different than looking at a hundred thousand dollar asset, um, that you guys should be going after too. But looking at a hundred thousand, even if you have that hundred thousand dollars, You’re looking at and saying, I think it’s worth 200 or whatever it’s worth. And there’s a lot of margin there.

That’s a lot more money and that’s a lot more risk because it’s a lot more money. So these smaller deals, especially for funding yourself, selling yourself, it’s really good experience to don’t use a realtor. Just try to sell it yourself. Uh, answer the calls, get it up on the MLS, facebook. com, uh, yeah, every land.

com, all the other sources. And it’s a really, really, really good time. If you can find it yourself, if you can’t find it yourself, I still think you can go after them because there’s really high margin deals and low risk. And they usually sell quick. These two deals do sell quicker in general.

Ron: Yeah. I think like Dan said, for funding yourself, like it just, you can change things really fast.

You can fuel your marketing business. You don’t have to work

Dan: for freedom very quickly.

Ron: A hundred percent. Like if you have five, 6, 000 after marketing, you do not. What we always say is do not bleed all your marketing money on a deal. Like that’s not smart where you’re marketing has to stop to do a deal.

But the thing that’s great about these as well is how fast they turn. Yeah. Yeah. It takes us a while sometimes to sell 180, 200, 250, 000 properties. Uh, the marketing has to be way better. All, all these things have to be improved. And then there’s just less buyers out there opposed to a 20, 000 property.

There might be hundreds of buyers in the area where there might be 10 or 15 or 20 buyers for that hundred acre property you’re trying to sell.

Dan: Yeah. And, and one of the biggest parts about understanding how fast it’s going to turn is, uh, understanding the market. Cause that’s the biggest thing you get these properties in really, really slow markets.

And although there’s margins in it and you can undercut it, you just got to be careful with the market you’re in because there are slow markets out there where these won’t sell. If it’s a very, very rural property and it’s two acres and nothing else is two acres around it, and it’s just sitting kind of out there, like there’s risk there for sure.

Um, but usually like with these deals, there’s so much margin in them that you can undercut the market and there’s just so much room for error. Like if you think it’s worth 27, 000, And you’re in for five, like you have room, you could go down to 15 realistically and sell it right away. Um, but yeah, that’s, that’s the biggest thing is understanding your market and that’s how this game works.

It’s, you know, offering a cash offer to any properties that are not listed for sale. These are all off market deals. We’re offering a quick closing. We’ll pay the taxes, pay all the fees at closing, take everything off your plate and we’ll do all the work for you. And it’s understanding the market and how fast it’s going to turn as well.

Ron: Yeah, for sure. If you, these deals, I don’t want to say they can bite you in the butt, but they, they can, in some areas, these can take very, very long to sell. You want to understand how fast things are moving. If there’s no buyers out there, there’s no buyers out there. It doesn’t matter what you, I mean, at some point it matters what you post the price for, but like some of these areas, like there’s no land moving at all.

At some of these properties end up, make sure you’re doing due diligence on HOA stuff like that, because a lot of these properties are in HOAs and you might see Comps outside the HOA. Those aren’t comps for your property in an HOA. Uh, you need to find like kind comps. Don’t don’t like you can’t use a comp from way far away.

It just makes sure you understand the market. Make sure you know what you’re getting yourself into. These shouldn’t be like. Question mark deals. Yes, there’s low risk, but these need to be like, okay, I’m sure worst case scenario. I list this deal at 19 nine and I sell it right away. I’m going to try to bleed out 24, 25, 000.

But I know if I list this at 19, 000, I can move this tomorrow. Uh, and that’s how confident you need to be in these smaller deals. It can’t be like best case scenario. I get 15, 000 worst case scenario, like nine. And then like after closing, you’re gonna make 2, 000 and it’s a time.

Dan: Yeah, no, that’s a really good point.

Um, I think overall, I’m curious to see their, everyone, like, what do you think about, what do you think the, obviously a lot of people are doing bigger deals, which I do not go away from bigger deals. Just, we’re not saying that, yeah, like 50, a hundred, 200, 000 properties. Those will pay your bills much more than these will trust me, but for someone starting out or someone who just wants to add this to their pipeline.

And someone who doesn’t mind making a quick 20, 000. These are very low risk deals. I do them all day long. What do you think the percentage of people in the community around that are getting deals sub 10, 000 or versus

Ron: I think it’s a low percent. I would guess 20, 25 percent maybe. No, we don’t see it.

We’re not reviewing many, maybe there’s more being done. Um, of acquiring for, yeah, a lot of times we tell people not to start at offers that low. If you are starting at offers that low,

Dan: like 30, 30%.

Ron: Yeah, Maybe.

Dan: Yeah. Cover calls like 5, 8,000 other deals a lot less.

Ron: Yeah, there’s a lot more. I think there’s more than there used to be.

Maybe. Uh, our biggest thing is no matter how small of deals you go to, it’s make sure you don’t exclude the bigger ones. Um, and also don’t be going to 0. 2 acres. That’s just, I mean, you can all you want, but it’s not our bread and butter at all. There’s so much more risk involved with that. These are like, yeah, this is, this is real.

This is real. Two acres, 8, 000, two acres, 7, 000 offers selling for 22. Yeah, all of these, all those are like deals where you can make a ton of money. And that’s what we’re kind of referring to. Um, but, uh,

Dan: When we first started our biggest

deal was, or not our biggest deal, our biggest pipeline was full of buy for nine, 10, 000.

And so for 25 to 30, like that’s what we were doing for probably 50 percent of our deals.

Ron: Yeah. That was like our nest egg that we kind of started with.

Dan: We got stuck in it too and got frustrated with how to get out.

Ron: Yeah. You figuring out how to get bigger deals is because if bigger deals are longer, not even longer sales process, it’s just a lower.

It’s just a lower response rate. There’s less big land out there than smaller land. But yeah, I mean, I don’t want to say I was mad about buy for eight, sell for 22, 25, 000, but we definitely had a chunk of those.

Dan: Yeah, we had a lot of them, but it was a good problem to have, because if you’re getting those deals and they’re in your pipeline, that’s means you’re making money and it’s low risk.

And you can fund some of them yourself. Maybe you sell one and you have the money. Now I use funding for the first one. Now you have the money. You can put it back in and reinvest your money. Your profits back into those deals. It’s just, they’re such good margins.

Ron: Yeah, exactly. Well, I don’t have anything else for that, Dan.

Dan: I don’t either guys, as always, thank you for joining. Please like, and subscribe our YouTube channel. It really drives our mission forward. Thanks for joining. We’ll see you next episode.

Ron: Thanks everybody.

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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