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Land Investing Online

Welcome to the Real Estate Investing Podcast! In this episode we’re delving into a lesser-known but incredibly lucrative niche within land flipping.

This is a profitable niche that we’ve been eyeing for some time now, and we felt it needed an entire episode dedicated to uncovering its potential.

When we talk about a “niche” in the context of real estate, we’re referring to a specialized area within a broader field. Just as commercial or industrial real estate has its specific segments, land flipping has its unique niches.

Core Strategy

While we do venture into several land niches, in this case we’re honing in on a strategy that revolves around targeting properties with 20 acres or more, featuring primary residences.

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The essence of this niche lies in offering to survey off a portion of property, while allowing the owner to retain the primary residence.

Imagine someone owns a sizable piece of land with a house, and you propose to purchase a portion of that land, enabling them to maintain their home on a smaller parcel.

Learn about how we use this profitable strategy in the podcast episode below! ⬇️

Watch the Full Episode Here

Listen to the Podcast Here

View Transcript here

Ron: So getting into this niche guys, we don’t have a name for it by any means.

Dan: If you have name, let us know. Yeah.

Ron: The thing about this niche, which I like, and a lot of the niches are, you find a couple rural counties that are friendly with this. You have a surveyor who you’ve used in the past, and then you can just do this in three, four counties.

Dan: This is another way to attack land that would have never been in your list before. If just opens up the landowners.

Ron: Oh my goodness. Like it’s, there’s so much opportunity in this for sure. I am very, very aware of the success rate. It is a high, high success rate with stuff like this.

Dan: Grant said, this is a proven niche.

I’ve seen a lot of people do it unintentionally, not from targeting them.

Ron: It’s exciting. I think, I think a lot of people who follow through with this kind of, it’s just a good offer. Like when you have a good offer like this, it just sounds good.

Dan: Hey everyone. Welcome back to the real estate investing podcast.

Today’s topic. We’re talking about the most profitable unknown niche in land flipping. I’m your host, Daniel Apke joined again by my brother and business partner, Ron Apke. And this is a niche we’ve talked about for quite some time now, but we’ve never created an episode specifically on this niche Ron. And I think it’s going to be one eye opening to some of you who just want, because of this niche specifically, but also because of The idea of how many different of these type of niches there are.

But this one in particular is exciting to get into run.

Ron: Yeah, I very optimistic. Like you got to take action. You got to figure some things out for yourself within this niche, how to target people. Um, but I’m excited to talk about this. Exactly. Where do you want to start today? Let’s talk about what it is, I guess.

Right. Getting right into the meat. Yeah. Let’s talk about what, what exactly it is. So what we’re talking about when we’re talking about this niche,

Dan: What is a niche though?

Ron: Land flipping is a niche within real estate is just kind of narrowing it down. Like I, that’s how I kind of look at it. Like you have real estate, you have maybe land investing, then you have land flipping and now you have, you can have subdividing under there.

You can have whatever seller financing. Um, I don’t know. I don’t have a definition for it. Do you?

Dan: Yeah. It’s just a scoping in more, like just zoom in more defined. Yeah. More defined, something specific within a specific niche. We’re in land flipping right now. A niche can be going after, yeah. Uh, landlocked properties.

That could be a niche. It’s one little specific area of the business model. So when we’re defining niche, for those who don’t know, that’s what we’re talking about. Land flipping is its own niche, just like, uh, commercial real estate or, uh, industrial real estate, vacant lots or anything else, uh, within like land is its own niche and land flipping is his own niche.

And this is kind of, uh, it just keeps getting more granular and granular. And that’s what happens when you guys. Go on your own land investing journeys. Eventually you’re going to come up with different niches and things that you just like to do. Um, seller financing, like buying notes, that’s all a niche.

Like it just, there’s so many of them out there and you’re going to see them as you get more experience and more deals under your belt. All the different niches. There are a lot of it’s just buying and flipping vacant lots, no matter what they are. But when you do that 10, 20, 50 times, you see these little niches pop up and you’re like, Oh, this one needs to go through probate.

Well, probate’s a niche. You can start targeting probate, tax liens, things like that. There’s just so many niches with inside. So that’s what a niche is just for those who didn’t know.

Ron: And that’s why we’re so like optimistic in the future of this business is it’s just, there’s so many different things you can do without it.

Yeah.

Dan: Land investing. That’s why, uh, for anyone, I don’t know if I’ve even ever said that. That’s why we did land investing online instead of land flipping or anything like that is because land flipping kind of tells you what to do, buying and flip it right away, right? Land investing is, is such a broad term.

And as time moves on, you know, right now we’re in one stage as time moves on, things develop the business model in the last five years alone from what we’ve seen has changed tremendously. Like things just change and land investing so broad and you have all these niches and you have all these different strategies, you have wholesaling land.

Um, that’s a part of land investing. There’s just so many things to it

Ron: for sure. So getting into this niche guys, what we’re talking about, and we don’t have a name for it by any means. So I’m going to do some explaining, I guess,

Dan: If you have a name let us know.

Ron: I don’t, I don’t have a name. So what we’re talking about or the niche that we’re going to be talking about today is essentially targeting properties that are typically over 20 acres with a primary residence on it.

And what you are doing is offering to these sellers, potential sellers to, uh, Survey off their house. So you have 20 acres and not survey. Yeah, you could survey off their house, but survey off your land more important survey. Yeah. So you have 28 someone owns 20 acres of the house on it and you offer them like, listen, I can, I can let you keep five acres and the house.

Or I’m offering to have you keep five acres, I’ll buy the 15 acres for X dollars.

Dan: Or even less than that, because the, your chances, the less land you take, and this is my theory, this isn’t based on results, because we’ve barely done this, this is newer, but we’ve seen a lot of people do it in general, and we know it works very, very, very well.

Uh, the less land you take, In the ratio of the land you’re taking compared to the whole, the more likely you’re going to be to. So if they have a thousand acres and you’re taking five, they’re going to be much more likely than if they have six acres and you take five.

Ron: Yeah. Thank you. Just have it as an open ended thing though.

Like when you’re neutral, yeah. Neutral when you’re targeting them. And I’m telling you what, like there is so much opportunity because you are, this is an improvement. Like it is like you are doing work, you’re doing a ton of value for them. Like they would have to get a survey, pay for a survey. You offer.

Let’s listen, ma’am, sir. I, I, I’m interested in buying whatever you’re interested, five, five, five acres, I can pay you 5, 000 per acre. If you do, uh, do off 10 acres, I can get you 4, 000 per acre. Just let me know what your thoughts are. We can close in two weeks. All I need to do is get my surveyor lined up and you can, the thing about this niche, which I like, and a lot of the niches are.

You can be very location dependent, like you can do this. You find a couple of rural counties that are friendly with this. You have a surveyor because the surveyor is an asset to you doing this business, this niche effectively. And I think that’s the best way to do it is where you have a surveyor. Who you’ve used in the past and then you can just do this in three, four counties.

Dan: Or if you know a market and you want to find so let’s say you sent Uh land to a market in in in our county and you had a really good result You know it you’ve done a lot of deals there a few deals there you sent some more mail Maybe like this is another way to attack land that would have never been in your list before it just opens up The landowners list to more people.

So you can go after more land. And it’s really cool too. Cause you can get very targeted. You can pretty much box out which land you want and present it to the owner. So you can get specific on what you want. Uh, there’s so much you can do with this in general. But if someone has 20 acres and you just want five acres of it, like you can offer that you can go multiple ways.

And that’s what I want to get into kind of nexus is the marketing side of it and how to approach them with this. Because for my, Perspective, I would, I would get a new template and have a brand new template, whether it’s blind offer or a neutral and maybe have, you know, if you’re offering 20 acres, uh, maybe have, I’ll, you know, I’m willing to subdivide off and purchase five acres from you and have a specific acre amount and just test different things out or it can be neutral and you can say, I’ll subdivide anything from two to 10 acres or two to 15 acres off of you.

Uh, and you can get very specific, but if you can blast it out, just like our theory on blind offers and marketing in general, more of a shotgun approach. I went one by one hand select this. I’d still, I’d, I’d find a way to create a template and merge it. And just like we do with that, I think your chances were eyes.

Ron: Oh my goodness. Like it’s, there’s so much opportunity in this for sure. It’s how you portray it. I think to the seller, um, the conversations with the seller, like I think it’s going to be not salesy or when you’re on the phone, it isn’t as salesy or it’s not sale more salesy when you’re on the phone, but it’s.

But you definitely need to build a relationship because there’s more going on than them just going to the title company and them notarizing these things. And Dan, what are your thoughts on like, why would a seller say yes, this, why would a seller, whatever the reason, why would a seller want to do this?

Dan: Well, they need money and they don’t want to sell their primary residence.

Ron: Yeah.

Dan: And those are in their asset that they’re living on. Those two are connected.

Ron: Yeah.

Dan: So they can split off part of the asset they’re living on. It’s like, Maybe you had two houses next to each other and that was on one estate.

You could sell the other house to make money, but this, that’s not the case. It’s one house on one piece of land. And that is one. That’s the parcel. That’s the property. This splits it off and creates a whole nother parcel. So it’s just cutting off part of what they already had to liquidate it for money.

It all comes down to money. They want to liquidate some of their asset without all of it and keep their house and structure probably won’t affect them that much. If you cut off five acres from 15, you know, five acres, they have 20 acres and they have their primary residence. It’s really not going to mess with the market and value that much.

Like it’s just not,

Ron: you know, what I’ve heard the most from people is. The upkeep because they like, if you’re fully wooded, it’s one thing, but if you have like a, not farmland, but if you have like grass or like that, they don’t want to upkeep 30, 40 acres, uh, and the upkeep on it is one expensive or they just let it get out of hand.

Some places in the country, like city limits, you cannot not upkeep your land on it, and that’s not really going to be the situation. A lot of them just do not want to have to deal with upkeeping an extra 30. It’s not helping them on taxes, really, because they have a primary residence. So most of their taxes is connected to the primary residence.

But like Dan said, you can, you can still live here. Uh, you can still live here. We can get all this done. You can still keep five, seven, 10 acres, whatever we decide on. Um, I’ll take this and then I’ll give you 50, 60, a hundred thousand dollars, whatever it is. And I, I, it is, there is so much opportunity.

Dan: It’s, it’s like, uh, it’s the same theory of how subdivision works in general.

Like they have, they bought that 20 acres with the house on it, and now they have an opportunity to subdivide it off just five acres and sell a smaller portion. That’s worth more price per acre. So a lot of times the math works out too. Because just they’re subdividing off a small part of their land. It doesn’t need to be a small part, but if you like the theory of subdivision works backwards in this situation for the.

For advantageous for the seller, you know, so they’re not selling off their whole 20 acres and getting a 20 acre price breaker They’re getting a 5 acre price breaker Which is going to be a little more and they just it’s this whole theory of subdivision works backwards in this as well

Ron: Well, let’s talk about something like marketing dan like how we would do things We want to be fully transparent with you guys like we are green on this We haven’t like we haven’t tested a whole lot of this.

I am very very Aware of the success rate. It is a high, high success rate with stuff like this. But as far as like a specific, like this is where you need to market, we’re going to talk more about strategies that we think will work. Um, yeah, for sure. Uh, so let’s just kind of get into that. You kind of talked a little bit about.

The data aspect of it. Are you just pull, are you pulling a certain type of house? Are you pulling a mobile home? Are you pulling, we talked about acreage. Like, are we starting at 20 acres with the residents?

Dan: I would start around 20. You don’t want to get too much less than that because five acres is a good price or a good amount of acreage to go.

And if you go 10 acres, that’s half their land. I’d probably start around 20 and test that out. But this, like Ron said, this is a proven niche. I’ve seen a lot of people do it, uh, unintentionally, not from targeting them. You do it because you, uh, you sent mail to someone who owns land and one their land either has a house on it that they want to keep and you subdivide off their house and they’re, you know, interested in selling the rest.

That happens a lot to people or two, they, uh, you just talking to them on the phone and they tell you about how they have all this land that they live on and they don’t want all of it. So it happens without, uh, targeting it in a high, high ratio rate. And if that’s the case, typically when you start targeting things like this is going to work in the same fashion.

So it just shows that the market came to fruition just from doing deals.

Ron: That’s how niches come.

Dan: That’s how niches come. Exactly. Um, so going back to the targeting aspect, yeah, I think start at 20 acres or so of, um, residential properties. You can, you can do a property appraisal type of things with this as well.

I don’t have suggestions for doing, I would start broad and see what you get back in the leads and everything. If obviously if it’s a million dollar house, it’s probably less likely than if it is a mobile home. Mobile home lots would be a good place to start, you know, mobile homes that are on 20 acres or more, but that’s going to be such a niche, small category out of all, I think you go broad.

I think you go broad under, you know, 400, 000 homes, 300, 000 homes should work well. You can start getting into the value of the homes and the square footage and things like that as well. Stay broad at first. And see what you get back. But like you’ll get deals, even if it’s million dollar homes, I’m telling you, these people don’t want all their land, whatever happens, they have a million dollar house.

That’s all right. But they’ll, you’ll get conversions acquisitions at that.

Ron: Yeah. Like maybe probably a lower success rate with the more expensive houses. But like there might be people who bought million dollar house and like I just don’t want that land anymore Like it’s just too much. Whatever it is.

Like I I don’t see a huge purpose honestly in narrowing it down

Dan: Well, the other it can work against you too, because I think someone has a mobile home on the lot That’s 20 acres. They probably bought that lot for the land and then pop their mobile home on it If someone bought a 5, 000 square foot home on that they probably bought it for the house You know, they bought a castle on on land and they can still have a ton of land They’re looking at the house more someone when we sell land.

They’re like, oh, I want 20 acres They put their mobile home on it and those people bought the land for the land You have a big house on it. They’re buying it typically for the house. It’s a combination of both, but think of the mindset behind the two.

Ron: Yeah, that’s a, that’s a really, really good point that I would go broad and you can narrow, this is already narrowed in the strategy as a whole.

And like, you’re not going to, if you go to a full county, 20 acres plus and you do this, like you’re not going to get a ton of results. Like there aren’t a ton of primary residents, but I, I don’t know what the six. Yeah, that’s what I mean. Even if it’s five, 500 or something like that, which I don’t think it’s going to be that much.

Um, you’re going to, I think your, your success rate is going to be high per mailer. Like you’re, if you do it right, getting people on the phone who are doing this, like it is a very, just think about it. I always think about our offers in the terms of like, what is a seller think a potential seller think.

Um, and there’s just a lot of people. Right now in general, a lot of people who need money and like you offer, like, yeah, you can still keep your 15 acres, 20 acres. I just want 10 of it. Keep your house. You can still live it. It’s not going to change your life. Like that 10 acres that we’re offering 30, 40, 50, 000 can pay their bills for a couple of years.

Dan: What the hell you’re doing with it. Yeah. That’s a good point. Yeah. That’s a good point. But that’s never really like, if someone needs money, you can, I mean, it’s going to be a residential. Yeah. Or someone you know, what are the, what are the, uh,

Ron: And you can also design the survey how like to like, well, you can talk about like, this is what I’m planning on doing with this.

This is how I want this survey. This is what I’m telling the surveyor. This gives you, this means your lot’s going to be 300 yards away from this lot. Um, a lot of wiggle room. Yeah. A hundred percent. Like there’s so much. Uh, customizable to this journey.

Dan: Yeah. And that’s what I would do too. So I would follow the same marketing strategies we currently do.

I would, I would mail and I would text you can call with offers with no,

Ron: yeah, not,

Dan: I would not do it with offers. No, because what this is, you got to factor in a lot. You could try it with offers if you can come up with a good formula. But the problem is they’re going to want to survey off a different amount than what you typically offer, I think, because you’re not going to know what they want to survey.

If you have a 20 acre lot and they’ll survey off 18, Hell yeah. Buy the 18 acres if they want, but if you offer them for five acres, you’re losing out on the 13. Is it going to still start that conversation and the price is exactly that. It just, it’s going to get confusing at that. I would keep it without an offer price.

Um, and just tell them the situation, you know, hi, Bob, I’m a local investor. And I saw you have a single family home or I saw you, you live on 20 acres. I’m wondering if you’re willing to survey off part of your land to And they’re looking to sell, you know, anywhere from two to 10 acres of that where cash close, we can close this in two weeks or you’re going to need a survey.

So figure that out too. But I’ll get a survey and just give them all the logistics. And then you follow up with that with a text and that can be a mail merge too and everything. So you can do it all. streamline. And then, um, you follow up with that two weeks, three weeks later with the text. It’s not a large amount of people, 500 people, maybe you have in your list, thousand people, and then follow up with the text.

If you have a cold calling service you’re already using, I would use a cold calling service too.

Ron: It’s exciting. I think, I think a lot of people who follow through with this kind of, and it’s not always

Dan: best to reach these people.

Ron: A hundred percent. It’s not a high marketing budget or anything like that.

Like it’s just a good offer. Like when you have a good offer like this, it just sounds good.

Dan: If I was cold calling without even a service, I would do this.

Ron: Yeah.

Dan: I think I would literally do this. I think you can get, and I’d start with calling a hundred acre properties with primaries, start at the high, and then just offer to buy.

Start the conversation. Hey, you’re looking to subdivide a couple of acres off. You know, I can close quick and cash. Someone might want 15 grand. They own a hundred acres. You’re subdividing off.

Ron: Oh, I got you. If you really want to target those and just do like you get those all

Dan: The higher the better because the more, I think that’s, they’re going to be more likely to do a small piece of it because it’s.

A smaller piece of their property.

Ron: Yeah. And then you can always go up from there. Like, yeah, they say yes to five acres. Like if you have any more, like, I’m more than happy to take more than that. If you want more, I can obviously offer more. And like, you can literally just go up from there. You, you start targeting a hundred acre properties.

You are going to have a five, 20 percent success rate when you talk to people. Like, I really think it’s going to be,

Dan: it can just gauge their motive. Like it’s, it’s, yeah, you can re there’s so flexible till. What part of the land do you do want me to subdivide off? Make sure you’re not getting the absolute crap.

Cause that’s what they’re going to try to get you, but you can work so much into their life along with yours and try to come up and negotiate based on that.

Ron: A hundred percent. I think it’s, uh, I’m curious to see how people kind of implement this. We don’t currently have any education on this, but I mean, you can 100 percent and you can have from this episode, you can take action on this.

Like, you know, if you, if you’re a member of land investment line, whatever it is, just based on this, like you can start cold calling people. You can pull up a list on the land portal, start skip tracing, start calling people tonight. Yeah. I mean, there’s so much Dan will close some people on YouTube live, live calling people.

Dan: Someone who has some, yeah, there we go. Anything else to add to this?

Ron: No, I don’t think so.

Dan: All right, guys, as always, if you haven’t already, please like, and subscribe our YouTube channel. It really helps drive our mission forward. Thank you for joining and we’ll see you next episode.

Ron: Thanks guys.

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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