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Land Investing Online

Today we will be delving into one of the most crucial steps in the land investing process: due diligence. 

This process helps you identify any defects that may be on your property, and ensures you make informed decisions.

From the initial check focusing on slope, wetlands, and access, to detailed verification of deeds, zoning, and utilities, each step is designed to uncover potential issues that could affect your investment.

You want to ensure the property is desirable for an end buyer and has a margin for profit. Initially, these checks might take 20 minutes, but with practice, you’ll streamline the process. This thorough inspection protects your investment and maintains your credibility with deal funders and future buyers.

Now, let’s delve into the specific steps of this critical phase so you can ensure your property is a sound investment!

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Step 1: Initial Check

Once you have a purchase agreement, your first task is an initial check. This involves:

  • Slope and Wetlands: Use tools like The Land Portal to check the slope and wetlands. Properties with significant slopes or large wetland areas can be problematic.

  • Flood Plain: Check if the property lies within a flood plain, as this can affect its usability and value.

  • Access and Shape: Ensure the property has clear road frontage access and a desirable shape for future buyers.

  • Price and End Buyer Appeal: Consider if the property has a margin for profit and if it’s desirable to your target buyers.

Step 2: Detailed Due Diligence

If the property passes the initial check, proceed with detailed due diligence:

  • Deed Verification: Ensure the person who signed the purchase agreement is the same as on the deed.

     

  • Legal and Physical Access: Confirm there is legal and physical access to the property.

     

  • Zoning and Restrictions: Check for any zoning restrictions or required setbacks that might affect future use.

     

  • Utilities: Confirm the availability of essential utilities like electricity, water, and sewer.

     

  • Soil/Perc Tests: Verify if there are any existing soil tests on file with the county.

Step 3: Boots on the Ground

To confirm your findings from the previous steps:

  • Hire a Droner or Realtor: Use services like droners.io to hire a drone pilot or a local realtor to get on-the-ground verification of the property’s condition.

  • Specific Concerns: Address any specific concerns you have with the person who is going to the property, such as slope issues or wet areas, by asking for detailed photos or videos.
drone pilot

Step 4: Handling Defects

If defects are discovered:

  • Negotiate Down: Use the defects as leverage to negotiate a lower purchase price.

     

  • Assess Severity: Determine if the defects are minor (partially wet, slight slope) or major (completely wet, no access), and decide if the property is still worth pursuing.

     

  • Decision Making: If the defects severely impact the property’s usability or value, consider walking away.

Mastering due diligence not only protects your investment but also builds trust with deal funders and future buyers. By being meticulous and unbiased in your assessments, you can avoid costly mistakes and secure profitable deals.

Remember, the goal is to uncover any potential issues upfront, negotiate effectively, and ensure that the property is a sound investment.

Prefer to follow along via video? Watch it below! ⬇️

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Ron: 60 to 90 days people from our community are quitting left and right wins are great losses Suck at times but like the gap between those two emotionally I just look at like what am I gonna actually be thinking about this issue 24 months from now putting together Okay, I want to send x mailers per month.

I want to send x text messages per month I want to start cold calling myself. I don’t know maybe 100 people per week I think having that, it feels much more like a business at that point than a side hustle, than something that you are just doing when you have time. You’re making 15, 000 a month plan flipping right now with a full time job.

Imagine if you didn’t have that full time job and you have more hours every single day to put towards this business. Hey everybody, welcome back to the Real Estate Investing Podcast. I’m your host, Ron Apke. By myself in this episode of what I’m going to be talking about today is the three most important factors, the three things that you should be looking at as you’re trying to transition to a full time land investor job, full time land investing job, entrepreneur from a nine to five.

So the three most important factors before. You even really think about quitting a nine to five job. That’s what I’m going to talk about today. And the reason I wanted to go over this topic is because the last I’d say 60 to 90 days, people from our community are quitting left and right, and they are quitting with a plan.

A lot of them we’ve talked to. To prior to them quitting their nine to five job, just to kind of make sure they’re on the right track and them checking in with us to see if it makes sense, but the stories are inspiring for sure. They should inspire you guys who are getting into land investing right now, who are thinking about getting into land investing right now.

And we had landed on a podcast. His goal was to quit. I don’t know. I think by the quarter four or something like that, he quit barely in the quarter Or end of quarter two. He quit Tamir quit his job recently. Dylan quit his job recently, and then the names go on and on. So I think this is a very timely topic.

I know there’s more people considering. I know there’s more people in our community that should. Be putting in their two weeks notice that they’re nine to five, but they’re nervous or whatever. So hopefully wherever you are in your land investing journey, if you’re a part of our community, if you’re making money in land, or if you’re just trying to get into it right now, hopefully this episode can bring you some value.

So again, this is the three. Most important things in my mind. I’ve quit a job. I went from I’m a full time entrepreneur. Now, obviously I went from I was a college basketball coach I was a outside salesperson. I’ve done a lot of things. I never really I was a high school teacher I’ve done a lot of things and Yeah, I mean I made that transition I understand mentally The obstacles that can be in the way.

And that is number one is the mindset needs to be there. And really when you are getting ready to quit your job and take on an entrepreneur journey full time, whether it’s land investing or something else, you can’t really predict. I don’t think how your body, how your mind is going to react, but you got to understand from a mindset perspective, there are going to be difficult times.

Like there’s going to be times. In a land investing business where you might not make money for 30 days, like that is a real thing when you’re transitioning, you do not have a paycheck every two weeks. You don’t have something secure every two weeks. Your ceiling is way, way higher as your freedom is way higher.

As I’m sure you guys know, listen to this, but. The number one thing is like, you got to be ready. Your mindset has to be ready for ups and downs. And for me, when I was younger, the ups and downs would be wider spread. They would be, it would be, it’s, it was a true roller coaster, like early in line career.

Even it was a true roller coaster. Now it’s like winds are great. Losses suck at times, but like the gap between those two emotionally is far, far smaller. There are big things that happen in business that can really, really affect you. But the same at the end of the day, like if I just look at like, what am I going to actually be thinking about this?

It, Issue 24 months from now, if the answer is no, then I don’t brush it off. I just solve it. There’s a puzzle that needs to be solved and I solve it. And that’s the thing, as you’re going into entrepreneurship full time, like you are going to make on a daily basis, you need to be solving puzzles. There’s a puzzle that I call them puzzles opposed to problems.

There are puzzles that are thrown at you. Every single day, and you need to find out how to solve them, and that is truly what entrepreneurship is. And the people who make the most money are the people who can solve the puzzles the fastest and the most efficient. Honestly, like, it’s not about being perfect, and you can’t take six, six months to do something that should be done in 48 hours.

There is a thing about speed. And as you are transitioning, if you’re thinking about taking that step, whatever it is, these, these things are going to come up, come up on a daily basis. There are going to be things that are going to try to stress you out on a daily basis. And just. I don’t want to say suck it up because that’s not the right term I’m looking for, but just like taking it on and then moving past it, finding a solution for whatever it is.

So number one mindset. Number two is finances. Like it’s just the reality. Like, if you have 5, 000 of bills monthly, 7, 000, whatever the number is, the number doesn’t matter. Like, you want to, I’m not one to just risk everything. That’s not what I was when I went from college basketball coach to full time entrepreneur.

It wasn’t just risking everything. Like, you need to have finances in place based on your risk profile. Some people’s risk profile is way higher and some people’s is way lower, where some people are going to want two years of money behind them to pay bills. Other people are going to want three months. It varies from person to person.

Some people like backing themselves into a wall. That’s a real thing. They like giving themselves back into a wall and You just gotta look at like, what’s the worst case? Now are you fail being a land investor? You fail being an entrepreneur and then you need to find that sales job again. You need to find that marketing job.

Again, the jobs are out there for sure. If you’re talented in your field, but having your finances aligned, I like six months honestly of expenses. It’s if you can’t figure out in six months, it might not be for you to be a hundred percent honest. It, Not from the start, as far as I’m not saying you started land investing yesterday, quit your job because you have six months of finances.

I’m not saying that at all, but if you’ve been in this business for six, eight months and you’ve saved up six, eight months of bills from land investing, that might be the time to go. Honestly, it might be the time to hit this full on. And the thing that a lot of people don’t weigh into it is like, You’re making 15, 000 a month land flipping right now with a full time job.

Imagine if you didn’t have that full time job and you have eight hours, more hours, every single day to put towards this business, growing this business, scaling this business, making more money in this business, doing more deals, all of these things like the sky is truly the limit when you’re talking about that.

So. That is having a financial plan with you. If you have a wife, sit down, talk, talk to her, whatever it is, but have a plan in the back of your head, have something that makes sense for you, a financial, like whatever it is, like I said, it could be three months, it could be six, it could be 12 months. It really is based on your risk profile, based on your situation, how much like What is the way Landon said it a couple of weeks ago, or I heard him say it on some of those podcasts.

Maybe he said, I have X dollars saved. I’m spending X dollars per month, but I know I can squeeze that money. I’m spending per month down to like 2, 000. If it really needed to come to that, um, it’s not going to come to that with Landon, but it’s just a situation like, okay, you’re spending X dollars per month.

Okay. What could you actually cut that down to if need be so you can even fuel more money into the business. So number one mindset and mindset kind of overlaps with everything we’re talking about. Number two, finances have some kind of, just know what your finances are. Honestly, have some knowledge of what your finances are.

What are you going to do for the next six months? Theoretically, if you didn’t make any money in land over the next six months, and number three is having a plan. And this, I mean, from a business perspective, we’re not talking about financial for personally financial we’re talking about from a business perspective, what do you, what are your marketing strategies for the next six months, the next eight months after you quit?

What is your deal flow going to look like? What are your deal goals? Do you have KPIs in place? I think having that. It feels much more like a business at that point than a side hustle, then something that you are just doing when you have time. So putting together, okay, I want to send X mailers per month.

I want to send X text message is per month. I want to start cold calling myself a hundred people. I don’t know, maybe a hundred people per week, something like that, having something in place. So. If you hit those inputs, that’s all this business model is, honestly, is your inputs are what’s going to create your outputs.

Some people are more effective with their inputs, which are cold calling, texting, mailing. Some people are more efficient for sure, but your inputs are what you need to be keeping track of. It’s so controllable. Like if I have a goal of sending 50, 000 mailers next month, I know 100 percent certainty. If I don’t hit that, it is on me.

There’s no one else like you send 50, 000 mailers. Sometimes you might get 10 deals. Sometimes you might get 15. Sometimes you might get three deals from those 15, 50, 000 mailers. Those are kind of those outputs that you get, but the input of how much marketing you’re going to be doing for the next month, what’s your monthly marketing.

Uh, look like what is your quarterly? What is your yearly marketing look like? Have things in place, have a plan. That’s what this number three is all about. Have a plan. So you’re able to scale up your business. And when you look back three months for now, and like I killed my numbers, I destroyed what I was trying to do.

You have something to pinpoint on like, Oh my goodness, I hit all my mail goals. I actually was 10 percent over my mail goals. I sent more texts and I want like, that makes a lot of sense why you would have done better. But if you go back and look at your numbers, your goals, and you were at 50 percent of the amount of mail you want to send, it’s very clear.

That’s why you didn’t hit your financial goals is because you didn’t send enough mail. And it’s really. You can get more into the weeds as far as a plan for all of this. Maybe you have a plan for like you’re, you’re mailing right now. You have a plan. I want to send 10, 000 mailers per month, next three months.

In October, I want to send, start sending text messages. There’s a lot of stuff that leads up to sending text messages that you’re going to need before you can actually send text messages out. You need to learn about it. You need to go through all the texting regulations, make sure your sites up, uh, and everything like that, but having a plan like that, how are you going to be getting deals for next three, six, 12 months, I think is so, so important.

So again, I wanted to keep this episode short with a lot of content in it as you guys are thinking about this. And I hope a lot of people listening to this, it’s their goal to eventually get out of their job, whether it’s from land investing or something else. I hope it’s your goal to get out of your traditional career, Corporate job, if that is your goal, like if it’s not your goal and you’re happy in your corporate job, go for it.

Be there 30 years, do all that. It wasn’t a life for me. It wasn’t meant for me. And I think that’s a lot of people out there that feel kind of. Trapped. I think in their corporate job in that kind of life, and it can keep them a little stagnant if it is your goal to eventually get out of your job.

Hopefully this episode brought some value to you. If you’re listening on YouTube, watching on YouTube, leave me a comment below. Let me know what your thoughts on this episode are. If you’re listening on Spotify or Apple, share this with a friend, leave us a review. It helps so, so much. We really appreciate you guys.

Other than that, thank you so much. 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.

Watch the Full Episode Here