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Land Investing Online

When you’re first stepping into the world of real estate investing and land flipping, you’re faced with a pivotal choice: where to allocate your limited funds.

It’s a balancing act between time and money. Do you invest in formal education, shelling out potentially thousands of dollars for structured learning? Or do you opt for the organic route, scouring YouTube and podcasts for free resources, albeit at the cost of your time?

The truth is, there’s no one-size-fits-all answer. It boils down to personal preference and what your individual circumstances are. No matter what your situation looks like, in this episode we are going to break down the options you have.

Free vs Paid Education

Self-education through free resources can be time-intensive and prone to mistakes. With land investing for instance, the learning curve is steep and errors can be costly, so it’s important to consider this when making your decision.

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On the flip side, paid education offers structured guidance, potentially mitigating costly missteps.
However, it comes with a price tag, diverting funds from other areas of your business.

The Main Investment

Regardless of your budget, a whopping 90% of your initial funds should be allocated to marketing. This is the lifeblood of your business, driving leads and opportunities. With several options from traditional direct mail campaigns to cold calling and texting.

Each avenue has its costs and benefits. Direct mail being scalable but it is the pricey strategy, while cold calling offers a more budget-friendly entry point. 

Direct Mail: Direct mail reigns supreme for its scalability and efficiency in filtering out disinterested sellers. However, it requires a substantial upfront investment. Plan for around $3,000 to $3,500 for an initial batch of 5,000 mailers, with success typically requiring a three-month commitment.

Cold Calling: If funds are tight, cold calling presents a viable starting point. With just a couple of hundred dollars, you can kickstart your outreach efforts. While it demands time and persistence, success stories abound for those willing to put in the effort.

Texting: Texting is a rapidly evolving landscape, with regulations constantly shifting. While it offers a direct line to potential sellers, navigating compliance can be tricky. Expect to invest around $600 to $700 per month for bulk texting solutions like Launch Control.

Key Takeaways

In essence, the amount you need to kickstart your real estate investing journey varies based on your resources and goals. Whether you opt for self-education or formal training, prioritize marketing above all else. It’s the engine that drives your business forward.

Remember, success in real estate investing requires a blend of financial investment and personal commitment. So, assess your budget, weigh your options, and take the leap into the exciting world of land flipping. With the right strategy and dedication, the possibilities are limitless.

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Listen to the Podcast Here

View Transcript here

Ron: You don’t have a ton of startup funds and you’re balancing in your head. Like, do I want to spend a thousand dollars on education or do I want to try to do this based on YouTube? This is the one that you guys need to be spending 90 percent of your money on talking to sellers, reaching out to sellers.

We are the biggest on direct mail, but we also understand it is not cheap. If you have less money behind you, I think cold calling is a. Phenomenal place to start. Maybe you have ongoing education costs. Maybe you have ongoing software costs, which isn’t that much. A couple hundred dollars and a phone to make some phone calls is extremely powerful.

Hey everybody. Welcome back to the real estate investing podcast. I’m your host Ron Apke. And today in this episode, we are talking about startup money. How much money do you actually need to get started in land flipping land investing? Try to be as true. I’m going to be as transparent and honest with you guys as possible.

People are starting at all different spots. And I’m gonna talk about the keys. When you’re starting out this business, where you should be putting money, where you shouldn’t be putting money, how to scale up once you have some money coming in. So really excited about this topic. I think it’s going to be extremely valuable for those of you who maybe are thinking about this business or thinking about coming in to land.

Uh, maybe you have a nine to five and you can put some money towards something like this, but maybe you don’t have all the time in the world for this. A lot of different situations, and I’m going to try to cover as many as I can in this episode. So really excited to get started here. Other than that, let’s get to it.

So when you are first getting into something like you have a choice, I think with anything. When you’re coming into it from the start, you have a choice. Like do what, and there, there’s a balance between speed and, uh, and money. I think like, and the question is like, should you pay for education? Should you get education or should you get it organically on YouTube for free and all these other spots?

We put out a ton of free content where you could probably piece stuff together and figure out how to do this business. But you’re going to be sacrificing a ton of time because it’s not going to be fully outlined. So the number one thing when you’re starting in something like this, like a side hustle, if you’re thinking about coming into this business, it’s probably a side hustle at first.

Maybe it’s not. And you have more money behind you, then that’s not really the case. You should be probably investing in education. If you have money behind you. But like you don’t have a ton of startup funds and you’re balancing in your head. Like, do I want to spend a thousand dollars on education or do I want to try to do this based on YouTube, based on podcasts, based on all these other things.

And it’s really a personal preference. Like I’m not going to tell you one way or the other. I can tell you the pros and cons of both. Uh, the cons of. The cons of doing it yourself are it’s extremely time intensive. You will probably still make mistakes. Sometimes you can make more state. Sometimes the mistakes are more costly than the education that you would have paid for.

Like, that’s what I see the most of is people who tried to figure out this business. They sent some direct mail. Direct mail is really expensive. You mess up when you’re sending direct mail. It can be thousands and thousands and thousands of dollars of a mistake versus not saying you won’t make mistakes.

If you have education behind you, you will and expect to make mistakes. But hopefully some of those are mitigated from the education and then pros and cons of buying education. I mean, the pro is pretty straightforward. Like as long as it’s a good program you’re investing in or good education that you’re investing in, it makes sense for sure.

But obviously you’re putting some money out of your pocket. So that could be money that would be going towards marketing. That could be going towards whatever it is, reaching out to sellers, anything like that. But your education is going to be much more straightforward. It’s going to be sequential where you getting education on YouTube can be, like I said, it’s like plugging and playing.

You’re trying to figure out things you’re trying to piece together certain situations. So that’s the number one thing when you’re starting out an education can vary from as little as probably 99. 99. All the way up to some people, 20, 000 plus, if you’re doing really intensive coaching or something like that.

So there’s different levels to it for sure. And that’s what you, and you can start free on YouTube, like I said. So that’s what you need to decide. Like if you’re looking to get in this business, okay, do I want to try to do this myself, piece things together? Or do I want to put some money out for education and to have the resources behind me?

Number two, and this is the one that you guys need to be spending 90 percent of your money on. Like if you have whatever, it doesn’t matter how much money you have, how much it matters, how much money you’re willing to put in this business. And then 90 percent of it needs to go towards marketing. So marketing, there’s a lot of different forms of marketing.

When I’m saying marketing, I’m referring to talking to sellers, reaching out to sellers. And you can do this via text. You can do this via cold call. You can do this via, via direct mail. We are the biggest on direct mail, but we also understand the money that goes into direct mail. It is not cheap. It’s 60 plus cents per mailer.

So every time you’re sending a mailer to someone, it’s 60 cents. So we get a deal for about every 2, 500 mailers or so. So you’re in about 15, 1, 600. of marketing money just with one with 2, 500 pieces of mail. And that should get you a deal. Is it going to get you a deal over time? Absolutely not. Where cold calling, if you’re cold calling yourself, you can get a thousand cold calls done yourself for probably a couple hundred dollars.

Just getting the data, getting the phone numbers, everything like that, probably 150, 200 or so. So that’s what you’re really weighing. But How long is it going to take you to make a thousand phone calls? What’s going to be your success rate with that? But if you have less money behind you if you’re not in a rush Like I think cold calling is a phenomenal place to start where you can get a deal, two deals under your belt.

If you don’t have the money behind you to send direct mail, then you all of a sudden, once you get those deals closed, you have money coming in, you have the ability to scale up your business with mail. And you’ve also learned all of this stuff that cold calling, if you guys haven’t already, I had to Sean on the podcast a couple of weeks ago.

That is a great, great listen to Sean. Literally did what? I’d. Just set. He was cold calling, cold calling, cold calling. He wanted to build up some money. Uh, it’s hard. Cold calling is hard. And he talks all about how hard cold calling is, but he finally got a deal at the end of December. I think made 10 on that with an assignment fee.

So he didn’t have to go through and sell the property. And now he’s sending mail. So he’s scaling up his business. He’s doing big things. So, uh, That is that second piece is marketing. Like where, how do you want to market and, um, how much money do you have for marketing essentially? So. So for people coming in and they want to do direct mail, like it’s direct mail is the number one thing we preach.

It’s the most scalable. It’s the most scalable because it’s less time intensive. You can send a ton of mail. You can, you can start this business and start doing 6, 000 mailers your first month. You can start doing 10, 000 mailers by month two, month three for sure. And it’s so effective at weeding out uninterested sellers.

And that’s why we like direct mail so much. And it’s extremely efficient with closing deals. So if you are looking to get in the business with direct mail, you typically want about three months worth of mail and about 5, 000 mailer, 5, 000. You need to have the money for, to send about 5, 000 mailers. If you have money for a thousand mailers, don’t send mail.

It’s not the right thing for you. It’s too much risk involved and sending a thousand mailers. Just there’s just a low possibility, honestly. But if you have money for four or 5, 000 mailers, That’s when you should look towards starting with direct mail. If that fits what you’re looking for. So 5, 000 mailers is going to cost anywhere from three to 35, 3, 000 to 3, 500.

I always suggest people starting with 4, 000 to 6, 000 when they are trying to start with direct mail. If you’re starting, trying to start with cold calling, like I said, you can start with a couple hundred dollars, whether you do the education, whatever you do with the education, obviously that varies. Um, but as far as the marketing aspect of it, you can start with a couple hundred dollars.

And then texting is a different animal and there’s a lot of regulations right now coming out with texting and it is changing on a weekly basis, daily basis. Like texting is changing quite a bit as far as cold texting, all these different avenues. There’s a lot of regulations. So. Uh, we still do texting.

There’s still ways to do texting for sure. There’s some really good softwares. We use launch control, which is an amazing software for texting at bulk like we do. And that’s probably closer to 600 a month, 700 a month, uh, depending on your volume for sure. So really, as you go through that, you have education, you have marketing, and then the final thing is just ongoing.

Costs in terms of maybe you have ongoing education costs. Maybe you have ongoing software costs, which isn’t that much. So realistically guys, it’s going to be a variable as far as if you’re starting this business and it, a lot of it matters. with how much time you’re willing to put into it. If you want to put more time into it and you don’t have the money behind you, you can absolutely start with a couple hundred dollars where if you don’t, if you have more money and you don’t have the time, let’s do direct mail and maybe you start with 10, 000 I don’t know, 6, 000 4, 000 and you can do direct mail like that.

So There’s really not, unless you have no money that you can invest in this business, you are going to need something for pretty much every business. You need to be able to find leads. Like, how are you going to get leads without being able to, without having any money behind you? It’s very, very difficult, but a couple hundred dollars.

And a phone to make some phone calls is extremely powerful. Other than that, guys, I’m going to end it there. If you guys have not already hit the subscribe button below, if you’re listening on YouTube, if you’re listening on Spotify or Apple, please share with a friend, leave us a review, let us know what you think.

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