Dan: Welcome to the real estate investing podcast, where we help you unlock your potential freedom through land investing, real estate investing, and entrepreneurship.

Ron: Hey everybody. Welcome back to the real estate investing podcast. I’m your host, Ron Apke. Today in this episode, we are going to talk about how to buy land fast and easy.

And I think this topic came up, Dan, is our whole business model is kind of buying land fast and easy. Like we.

Um, but some people are under contract and you see it all the time. Buyers coming to us and like, they’re trying to have a six month due diligence period on their land. Um, but let’s first, let’s just get into what we kind of do, Dan. How do we make things? How do we make deals easy for sellers? How do we flip things fast?

Let’s just get into our business model a little bit.

Dan: Yeah. The first thing we do, the goal of this business model is to buy land under market value. And we do that from sending out blind offers, typically. Okay. But our proposition is buying fast. We can get you your money very fast to the seller and that’s our proposition.

They can put it on the market. They can list that they can get their money in six months. They know they can get more money. We’re getting them under market value because we’re fast and that’s the name of the game. Then we take that, we get them their money. We stick to our promise and we try to close it as soon as possible.

Get a title search, all that stuff. Once we’re good with that, we close it and we put it on the market for sale. And the goal, once you get it and put it on the market. For our business model to sell it as quick as you can to turn your money, to do it over and over again. We look at it like inventory. We want to buy and sell very, very quickly.

We have project based things as well, like subdividing, but that’s the name of the game that you got to figure out how to buy land under market value. The way we do it, blind offers, there’s texting, whatever it is. There’s a lot of paths there, but that’s the business model as a whole.

Ron: Yeah, exactly. And like this episode, it’s basically everything we do is fast and as easy as possible.

Like we try to make it very easy on the sellers. We try to make it easy on the buyers on the back end. And then speed is a huge, everything we talk about in this business from how fast our salesperson calls people back to how fast we call everything we do. Our contingency periods, everything is speed based.

Let’s talk about Dana. What can slow a land deal down? Like there are contingencies, there’s perk tests, there’s surveys. What slows a land deal down the most?

Dan: The buyer or the sell side?

Ron: Let’s say, let’s say if we’re trying to sell something, cause I think like, I guess we’re saying how to buy and sell land fast and easy.

Let’s say the buy side first. Like what, what slows down deals on the buy side.

Dan: The buy side, either one, you need a source funding. So we, in our community, we have deal funding. That’s a big one. Uh, you can usually get that fairly quick, but not everyone does, unfortunately, to title issues and things come up in title and can delay it months and months.

So those are the two biggest things, but obviously there are things in there, Ron, like. Certain buyers, certain people in our program, certain land flippers aren’t quick enough to respond. They’re not quick enough to call back. They have a busy work week. So they’re taking three or four days to call back.

They’re not responding to title. And these days, these one days, two days add up over time. And then it delays it a week or two weeks when we’re trying to close things in two weeks, you can’t delay it that much.

Ron: Yeah. And like the things that come to mind are more where you talked about title. I think it’s, it’s human stuff.

Like it is, if you’re a land investor and you are taking too long to buy properties, I think 95 percent the only thing is title issues. 95 percent time it’s on us land investor. So due diligence is something we try to get due diligence done in 24 hours. If you take 72 hours from that, there’s two days.

That’s a big one. I didn’t think about what about just quoting title companies, like quoting title companies. Pushing title companies that can be a two week difference making a decision, make it, making decisions on purchases. Like there’s so many different things and getting at the title as fast as possible.

So you get a contract with a. Uh, with a seller and you take ideally 24 hours for due diligence during that period. You’re also calling title companies, getting time quotes as well as quotes on how much it’s going to cost. Um, and then you get the title like that saves so much time versus some people take two weeks to do that part, making the decision on the purport purchase.

Like you said, um, how does that like, what do you think the. Success rate is like, what do you think the difference in people’s success rate when they are taking four days, five days for due diligence to negotiate whatever the situation is versus someone who’s taking 24 hours or going fast?

Dan: Well, it trickles down the whole line.

So if you’re taking that long, your property is naturally going to sit longer. You’re not going to have everything done on time. When you list it, you’re going to list it late. I think it’s the whole philosophy of the business. And in general, I mean, at our company are core values, action oriented to get these type of things done.

That’s such a big part of our company culture is just getting things done. And I think if you’re taking this time doing it, you’re going to take time through the whole line and then you’re buying and selling land slower, which eats into your profit. You’re making less profit and slower profit at the end of the day.

And I think that’s where also you have angry sellers, people you, you want your word and your letter. You’re saying you can close in two weeks. You want to be able to close in that timeframe. So I think over time you’re gonna have deals fall out. I see so much in our discord community people talking about deals falling out in title It usually comes down to your sales ability and being quick and getting it through and just living up to your promise Like you can usually talk them off the cliff whatever and you can be quick enough Things start to build up in their head.

They’re sick of the time It’s taking they’re sick of you didn’t call them back in three days If you provided that great service you’re calling them back. You’re on top of title You’re giving them the updates you’re using your sales skills You can keep those people usually when people are falling out like that and backing out a title It’s something you did internally.

So stop looking external too many people are looking external Think of how you could have kept them from better service.

Ron: Yeah, absolutely. That’s a really good point. Um, it, the speed of this business is what makes this business viable. If you were doing deals and taking too long, there is so much less value in what we do when we’re talking to sellers.

Uh, but the speed is what our value is to sellers. Like Daniel said at the very beginning, we’re buying things under market value pretty significantly. And they know they could go somewhere else, call a Realtor, but that’s a hassle for them, making something easy for them, making them sign a few papers and get a check for 50, 000.

Sounds really good. Or they could wait a few months and get 90, 000, whatever the situation is. But what about. What about selling properties? Like you want to, you want to be able to sell, like you said, you want to be able to flip fast. What about selling properties? Like how do you prevent long contingencies?

How do you prevent sales from dragging out to six, eight weeks, two months, three months.

Dan: Well, going back to the first point before we get into that, I just got off the phone with a potential investor and they were talking about why would someone want to sell for 500, 000? It’s a 515, 000 deal. And I was walking them through what we just talked about, how easy we are to work with.

We’re pushing things through really quick and we have 515, 000 of cash and I was just pushing them through our whole value proposition. And if we don’t stick to that, Ron, we lose our value. We lose our business. Like that’s everything you need to focus on is providing value to that seller. Because like I said, you make money when you buy a property.

So I just wanted to reinstate that and kind of give an example along with that.

Ron: Did it click with the investor at all? Or does it still like, why are they doing this?

Dan: Well, he thought it wasn’t, he thought an investor. So this person situation was different because. This person bought this in 2014 for 115, 000 and we’re buying it for 500, 000.

So once I explained that to them and they’re, they wanted to just build a house, they thought it was an investor. So I’d explained this as an investor. They wanted to build a future house here and just it’s mom and pop. It’s not like some sort of investment group. So it clicked for them once I did. I mean 500, 000 cash, they could put this on the market.

And wait, you know, months and months to sell it. Plus the realtor fees, plus listing it and getting it all. It’s a headache. They can liquidate within two weeks for 515, 000. So it clicked once we explained that.

Ron: Yeah, that makes a ton of sense. And it takes a while for people to realize that, but land is not an easy asset to liquidate and we’re giving them 500, 000 cash, like.

Dan: I had to be careful because I want to also sound like it’s going to sell quick from using a realtor because this is investors. So I had to watch what I was saying, but yeah, pretty much.

Ron: If you choose the wrong realtor, but that’s what we’re so good at is picking the right realtors. We’re a marketing firm.

Yeah. Yeah. We know how to market. We know how to sell land. It is a, it’s a skill that we’ve acquired over a lot of deals. So going into that, Dan, like, let’s talk about the back end. Like we’re trying to sell properties. Now, how do we, how do we prevent buyers not backing out after 90 days, after 89 days into their 90 day due diligence period?

Um, what strategies to get things under contract and actually get them sold?

Dan: Number one thing. I mean, people, one of the biggest mistakes people make early on is. Accepting any offer and just looking at that top amount. What is that top amount? Don’t look at what’s in between like the meat’s important, but they look at what’s that sale.

What’s that sale amount of? We listed for fifty nine thousand dollars And we got a 59, 000 offer. Of course, we’re going to accept it. That’s what we’re asking for. That’s kind of the philosophy and, and a lot of, um, that’s how people look at real estate with structures on it, selling your house and things like that.

Cause financing is so easy to get. Land’s a little bit different. You have a lot of contingencies, you have a lot of financing hiccups, you have a lot of things you’ll run into. So there’s a lot of meat in between there to look at. And honestly, It’s so crucial that I’ll take a 50, 000 offer, a 45, 000 offer over that 59, depending on what’s in the middle.

Now if that 59 is going to close quick and they have skin in the game and there’s not a lot of contingencies and perk tests and surveys and none of that stuff, then we’re talking. But there’s a lot of different things that they’ll hide in there and they want and they give, they literally can back out for any reason that they want and there’s no skin in the game.

So that’s one thing we’ve really picked up on, especially lately is. Getting them to have skin in the game, non refundable, give them 10 days due diligence. Then after that, it’s not refundable or just termination fees, things like that, that putting speed, getting people to put skin in the game changes their whole mindset.

Ron: And what I want you guys to do, or what we do. When looking at these contracts is how many days from the contract date, can they back back out with having 0 out of their pocket? If this is more than 10 days, it, you need to adjust your contract. Like, I don’t care what it is, a financing contingency have termination money upfront, um, where that is basically a due diligence fee that basically signing that contract, going under contract, they owe us 500, no matter why they back out.

So that’s what Daniel Daniel keeps on saying skin in the game. That’s what he means. Like, okay, can they back out at day 29 and not have any money out of their pocket? If that is a case, then you need to adjust that contract. Like those are ones that aren’t going to go through. I think as a company, Dan, we’ve become, we’ve become exceptional at like weeding out these BS buyers and our deals are going through at a higher rate than ever.

And if like, let’s say it’s a 30 day due diligence period and that’s fine, whatever you want to perk test, whatever the situation is, and I tell them I want a 500 termination fee and they say, no, like that is a really big red flag for me if they’re not willing to risk 5, 500 for this 100, 000 property, whatever it is, um, that’s a huge, huge red flag to me.

Um. What are your thoughts on that? I mean, that that’s just the name of the game is unique. It’s such wasted time going under contract with illegitimate buyers.

Dan: Yeah. You’ll, you’ll kill the deal. And we’ve seen a lot of deals killed because of that. And there’s been examples of properties listed. We went under contract, fell out, went under contract again, fell out, and now you’re seven months in.

And then you finally find the right buyer listed at the right price, and then everything goes through because you accepted the right offer. You just really gotta dive in. It sucks. It’s hard to do. You gotta an offer. You should be excited, but it’s gotta be the right offer. And you guys can always counter too, always counter with the terms you’re looking for, and then maybe meet somewhere in the middle.

There’s some people might need a perk test, whatever it is. Some people might need a survey, but you want to make sure there’s, they have skin in the game and you want to make sure they actually want the property. Cause some people, you don’t know what these people are doing. They might be going to putting offers on three, four properties in the area with their realtors.

So you just don’t know. You want skin in the game because they kind of like what we’re doing with commercial right now, we’re putting in three letter of intents for our commercial property. So you don’t know how many people like what these guys are actually looking at and you want their skin in the game.

Cause if they’re having three, they put offers on three at the same time. You have a 30 percent chance.

Ron: Yep. They have a 21 day due diligence period. They can call you at day 20 and just tell you like, yeah, it didn’t pass my due diligence. And they could have, they could have seven other offers out with 20 day due diligence period and taken the best one.

So they’re just situations like Daniel said at the very beginning, do not just worry about that. Top line, that top line is. That, that 60, 000 offer, it looks great if you actually get that money, but I’m telling you like you can figure out what you can figure out if they’re actually serious about it or they’re not.

And that’s skin in the game that we’ve talked about a few times is I think the number one thing.

Dan: Yeah. And the other thing, Ron, we can talk about is time to sell the property and proper marketing because that slows the business model up as a whole as well

Ron: Yeah, absolutely. Like you need to spend money on your marketing.

You need to get it listed everywhere without a doubt. We’re saying fast and easy how to do this fast and easy, getting the most eyes on your property as possible, making your prop property look beautiful, not having a screenshot as your first picture on the MLS, whatever it is, makes your property. More, um, more desirable for end buyers.

That picture really can do that.

Dan: Definitely. And that’s the thing you want to like, it’s money and time you’re going to need to put it in, but it saves you, it makes you money and saves you time at the end of the day. It’s like going through. The contract and vetting the contract on the sell side, looking through all those terms, negotiating that takes a lot of time, but ultimately it’s going to save you time because you’re going to have to do it again and again and again until you get the right seller and it’s going to fall through and you waste 30 days.

So it’s more about in this business, putting all the time and effort up front. It’s kind of like with blind offers. We’re putting our work in front, getting the price on there. Pricing every single mailer, sending it out. And then we have, they have a price instead of us just sending mail, them calling like a neutral letter and then negotiating, it’s doing all this marketing work up front, doing the contract work up front, doing the negotiations up front before you accept it.

And then new things pan out much, much better.

Ron: Yeah, absolutely. If you, if you do all that stuff, guys, like this business can be fast and easy. Like that’s the title of this episode. Uh, buying a piece of land, selling a piece of land can be very quick and easy a process. Do you have anything else to add Dan?

Dan: No, I mean, it’s like, if you want to make 200 to 500, 000, this business isn’t like, it doesn’t need to be that hard. It really doesn’t. If you want to scale to multiple, like and start hiring and building culture and building a company, that’s when it starts to get really challenging. Like Ryan Pineda said a couple weeks ago, Ron, you can grind your way to a million dollars of profit and real estate fairly easily.

So it comes down to that grit, wanting it, following direction, taking advice, running with it, testing things out, adjusting, and just getting it done. Yeah.

Ron: Awesome. Well, other than that, guys, thank you so much for watching. If you guys have not already, please subscribe to our YouTube channel. If you guys do have any suggestions for future videos, future episodes, please leave them in the comments.

Other than that, have a good day. We’ll see you next time.

Dan: Thanks guys. 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.