Transcription
All right, everybody. Welcome into our Wednesday webinar. Happy to have everybody here. Let's get rolling here today. Welcome, welcome. Let me know in the chat where you guys are from, where you guys are watching from. Uh, excited to get rolling, though. Dallas, what's up? Joey? Nick, what's up? Hopefully, everyone is doing well. Excited to get into market selection; it's one we haven't talked about in a while, so yeah, excited to get into it for sure. Clyde, what's up? Sarah, Minnesota. Brian, Tennessee. How are you? Good old Mississippi Brian, hope you're doing well. Cassandra, welcome, welcome. Let's get a question of the day. Idaho, Greg, what's up? New member? Awesome, Greg. Happy to have you.
We will get started here in a few minutes talking about market selection, guys—choosing markets to target for, um, your first land. How do we go about that? Not necessarily exactly what markets work, um, but how we go about choosing markets. Um, a pretty abstract thing, but I want to get a question of the day: What is the most important thing when choosing a market to flip land in? All right, question of the day: What is the most—I didn't put important. Shoot, let me fix that, guys. Question. Andreas, what's up? What is the most important? Harvey, how you doing? Dallas, Texas. North Carolina. Awesome. Very curious in your guys's uh input. Question of the day: What is the most important thing when choosing a market? And when I say thing, I guess there—there's a lot of things that can go into it. I'll definitely talk about what I kind of think. Um, Nate, what's up? First time joining a while from San Antonio, Texas. Clyde says, "Demand." Demand? What is the most important thing? So there is demand uh in the market. Is that buyers' demand? Like you want buyers in the market? Maria, Florida. Welcome, welcome. Of course. Brian, Luke, what's up? Harvey, doing well. Appreciate it. Brian said healthy activity, days on market, sold-to-for-sale ratio, deal flow. And the nice thing about this business, and Dan and I talk about it a lot, like you can get deals anywhere in the country doing this business, like you—there's just not—there's no—there's not wrong markets to do this business in. There's—you just have to change your strategy in different markets. Development. Joseph said, so yeah, you want to be in areas where there is development going on. Love it. Uh, demand from buyers—has to be someone who wants to buy the land. We list 100%. We'll get started here in a couple of minutes. Uh, Rebecca's from Georgia. Availability, demand, and movement. Yes, sales movement is huge for sure. Location, location, location. Once at the desirable location. Iris Marie also says location.
Who in here is brand new, guys? I'm curious. I always like to see when I'm going through these, like, who in here is brand new to us? You haven't seen a video of us; you haven't—like, you're just on this video one of the first times on this video. Let us—let me know in the comments as well, guys. How long have you kind of been at this? Maybe you've just been consuming content for the last few months, and you might be ready to hit the ground running here soon. Um, but let me know where you kind of are in your education process as well. Check comps, current trends. Really good answer there, Apex. Love that. First time, Brian. First time, Cassandra. First time, Harvey. Love to have you guys in here. Appreciate it. Um, but yeah, if you guys are more—if you guys let me know where you are in the process, everyone. So if first time watching us, brand-spanking new, Tyler Anderson. Love it. A lot of experienced members making a lot of money in here. Nixon, Nick Hughes in here. A lot of Andreas. A lot of good first time, Rebecca. A lot of new people. Awesome. I love it. Do we ever seek—let me put these questions—Paul, two months in. Love it. Paul, five months in. Sarah, five, five, six months. Sarah, is when that momentum starts. I don't know how you're—if you're feeling it, um, but five, six months in, like a lot of times in this business, the first six months is a weird—um, is a weird time in this business. Like some people—the majority of people, the first six months being in this business, like it's heavy education, uh, maybe learning from some mistakes, um, and then six months on, like they just start blowing up with like making 15, 20, $30,000 per month. Um, it's a big change. Currently on deal number 226, Brian. Love it. What were you doing before this, Brian? Were you doing info lots? All good, Raven. Appreciate you being in here. Earthy Fox, new. Just got a text notice that you're going live. I've been thinking, liking a lot of content related to my wholesaling properties. My name is Lindsay. Hey, Lindsay. Luke, first deals, first deal in the two first two months. That's awesome. Are you—are you in the coaching program? Ask my realtor where the hot area is. Sometimes they give you hidden gem locations. Interesting, Nick. I love that. Yeah, that's—that's always a valuable one is using realtors. Um, so Lindsay, we are talking about land flipping, so I don't know if you've even heard of land flipping. Um, we'll go into some of the basics today, um, but buying a piece of land under market value, uh, sometimes we wholesale it, sometimes we double close it, sometimes we actually buy and flip it using funding, uh, using financing stuff like that. So, uh, making money in land. We're not talking about houses in this—in this. There's a lot less competition here, which I love about it, um, but uh, yeah, happy to have you for sure.
All right, let's get into it, guys. Question of the day was: What is the most important thing when choosing a market? So many good answers here: demand, buyers' demand. And like I said, like I don't really have a straightforward answer on this in terms of—um, I don't really have a straightforward answer on this in terms of what it is. It's like you want to be in a market where you can sell land. So if you're buying a piece of land for $30,000, market value might be $60,000. You got to make sure that there's buyers in the market who are going to pay that. Um, so I—I think that's one of the bigger things, but it's also a balance. If you go in markets that are too hot, um, if you go in markets that are too hot, it also becomes a hurdle to doing this business because acquisition becomes much, much more difficult. Um, but so many good uh answers. BRC Land Partners, what's your name? BRC Lamp Partners just joined the one-on-one coaching program. That is amazing. All right, let me get this question up. We get Andreas asked a question here. Put questions in the chat if you guys have questions. There's a lot of new people, guys. I'm going to get to the market selection here in a few minutes, but if you have questions before I do that, please put them in the chat. Dan is traveling today. I think he's going to Colombia. Um, Colombia—that's South America, right? Um, do we ever seek a specific buyer persona before choosing a county, then reverse engineer that? It's definitely a strategy, uh, Andreas. Like some people who do more niche types of land, like commercial types of land, that kind of stuff. Um, I'm not one—I know there's other people who advocate for it. I'm not one who finds my end buyers before I—before I start choosing a county or choosing a market. I know some people do that. I don't think that's necessarily what you're talking about. Um, what I do like to do is when I get some land in a certain area, and then let's say you have 10, 15 people call you that are interested in buying land, um, you sell it to one of them; you also have 14 other interested buyers, and you can line up deals with them. That's where there's a ton of value is you—let's say you buy a property in, I don't know, outside of Atlanta, Georgia, Crawford County, Georgia. I use that a lot. You buy a property, let's say 10 acres, you listed for sale, you get a buyer, um, but you might probably had 10 other calls, like people interested, and you want to find out when these people call you and create a buyer list of, okay, what are they looking for? What areas are they looking for? Because maybe it's not necessarily just that county, and they're looking for 10 acres in anywhere in central Georgia. So building a buyer list from that is very, very important, and you can make a ton—you can flip land so fast. That's one of the keys in this business, guys, is being able to flip your inventory fast. You start having inventory sit too long; it becomes much, much more difficult, uh, and—and it just—the—the cash flow is much slower. Uh, really good question there, Andreas. Let me make sure we don't have a—All right, let me—let me just go through these questions. Can you do a comp? I'm brand new. Cassandra, six deals and contracts still waiting to go full cycle. That's incredible, Sarah. So that's your first five months, and you were in the coaching, right? Um, so that's awesome. Congrats on that. I'm in the research stage, looking to—for the best fit to help me learn about property investing. Why is your sector, land flipping, the best in your opinion? Um, I think the opportunity, honestly, Lindsay, right? Um, I think the opportunity is—I'd love to hear people answer Lindsay's question in the comments as well because there's a lot of successful people in—in there. Why is land flipping the place to be? Uh, it's done so remote as well, Lindsay. Like I have never—and this is 100% honest—I've never been to a property that I flipped. I've flipped over a thousand pieces of land; I—I've never actually been physically to one of my properties. So you can do this anywhere—from anywhere. We have people who are doing this; there's—I don't know if Max is in here or not—we have people doing successfully from Europe. Uh, being able to do this anywhere is definitely valuable. The margins in this—we consistently can buy land for $50,000, sell it for $100,000, um, but uh, yeah, there's—there's a lot of reasons. I'm obviously biased because the success that this has brought me, but I've also tried other industries, um, historically; it just hasn't brought the right—this can bring a tremendous amount of cash flow. Like land—you—you come in, you have $5,000, like it can do a lot for you, um, in terms of getting a deal because you don't need to pay for the deals, like you can find funding partners, everything like that. Um, I know I probably just threw a lot at you. My goal is to never finish that sentence. Nick's a very successful member, um, but yeah, just—just the amount of money that you can make in it, like there—it's nice being able to do it from anywhere for sure. It's not nice having—not deal with houses. Um, the nice thing—one of the coolest things about land is when you're flipping a piece of land, there's no one living on the land, um, so you don't have to worry about like, okay, they need to find somewhere to move, or they need to find all this—usually it's someone who just owns a piece of land that have—have owned it for 20 years, and they're not thinking about selling it, but your offer caught their eye. We have a ton of content on—on our channel as well, Lindsay, uh, that you can get. Everyone who's new—a lot of new—new people in here. I do interviews; I love doing interviews with our members, um, a lot of different people. What's the most common piece of land that would easily sell? I need to know what to target. It's a good question. I think overall, like if you're looking countrywide, what's going to sell the easiest is probably like five acres. I think like four to six acres somewhere in there. I think there's the most amount of pe—who are looking for land, like maybe it's infill lots, people are trying to build on a quarter acre; that's not really what we do, but if we're talking about one acre plus, it's probably around the five-acre spot. People love those five-acre parcels, and there's a lot of use cases, like you can legitimately hunt on five acres in the right—if it's in the right spot, um, you can also build and have some family land, uh, but yeah, probably five, five, seven, eight acres, something like that. Uh, Daniel, there is a—schedule consultation. Daniel, there is a—call—there's a consultation link in the description below, and that's for anyone, not just Daniel. If you guys are interested in learning more about what we offer, what we do, uh, there's a consultation link in the description below. Um, oh, okay. Nick said his goal is to never visit the property. So that's what I'm saying, uh, Lindsay. And Nick's—I don't know how many deals Nick's done, uh, but Nick's a successful member as far as like not having to visit the properties. Um, so we get drone people out to the properties; we get realtors out to the properties to get eyes on it before we actually put out our money, um, but not having to—like, it—it's never nerve-wracking either, honestly, like, okay, you never visit this property; it sounds like scary, um, but if you get a drone pilot out there to see the land, to walk the land a little bit, like they can be tremendously valuable in terms of due diligence. Yeah, mobile home buyers—mobile home lots are very, very big.
Let's get into this county selection, guys. I want to get into this because uh, we're—we're—I do have a hop in my members' call at um, 6 p.m. Eastern, so we have about 15 minutes to go over this, and I want to go over a few things here. It's not gonna—We have some other county selection videos. Can you guys see—Okay, let me get this a little bigger for you guys. All right, let me zoom in, too. All right. County selection is something that—and it's something that I think a lot of people overthink, to be honest with you. I—I have this uh Google Sheet link in the description as well, and this is literally how we kind of select our counties, and let's talk through the sheet real fast. This sheet is in the description below. If you guys want to get your own copy, just hit "Make a copy" here. You're not going to be able to edit this copy; don't request editing. Um, I'm not going to give you editing to this copy. Uh, you need to go—because this is hundreds of people in here—you got to go here, make a copy, then you can name it whatever you want to name it. Um, it's a good question, Sarah. Um, for Nick, we've been burned before by not perk-testing smaller lots. Okay, so what we have here, so when you're first selecting an area, I like starting—I like when people start in their general area. I live in Cincinnati, Ohio. I'm not going to do deals in Cincinnati, Ohio, which is Hamilton County, Ohio. Um, but where we find deals, guys, are two to three counties removed from main metro areas. So if I talk about Atlanta, Georgia, you spread out from Atlanta, Georgia, you have some nice counties uh for this. Like we don't want to be in the most populated area in the c—in the county—in the state. Um, a lot of people are popping in here—in the county—in the state. We want to go outside of those and go two to three counties removed from main metro areas. So let's just go here for—So let's go through these columns real fast. So county and state, um, I'll put some notes in here. Let me go—actually, no, this is right here. So—so county and state, obviously, right there. So Cincinnati map, and I'm literally just going to go here, and I'm going to start plugging in these. So we have Hamilton here, which is Cincinnati, Butler, Warren, Clare—Claremont, Clinton, Brown, Highland, Adams. Um, I'm—you'll just literally start plugging these into here. Uh, so I'm going to try to remember a few—Brown, Ohio, Claremont, Ohio. And again, a lot of these are only one county or one county removed from the main metro, so we really—the sweet spot—you can do deals one county removed, but the sweet spot really gets when you start getting out the—the uh two, three counties removed. Adams—all these—even four counties removed from some areas can be very, very valuable. Sorry, I was reading a comment there, guys. Um, Brown, uh, Claremont, let's go Adams. And I'm not going to do data on all these because we won't have time for that. Adams, uh, Warren, Clinton. Let's just do that. So I'm going to pick a few to kind of go over uh and—and I have the ranges above what we're kind of looking for. So five-acre price, so essentially when you're—and I'll go over how to do this—actually, let's just do this for Adams. I'm going to choose Adams County, Ohio. So let's go to Zillow, and I'm going to go—Actually, we can do this on the Land Portal. So I'm on the Land Portal. There's a free uh trial in the description as well on that. Uh, so what I'm going to do here—just gonna go to vacant lots, I'm going to go to MLS, and we're adding some other things to this. We're going to go to sold property type land. Um, we want to find the five-acre price. So let's just go—let's go land—oh, I don't have a location—and let's go Adams County, Ohio. Can you guys see—all right—know it's a little zoomed out; hopefully you guys can see. Okay. All right, Adams County, Ohio, uh, land, and we're going to do sold in the last—Let's just go sold in the last six months, and I'm going to go down here and go to my acreage or maybe it's up here. Yep, let's go here. Let's just go three to seven, and I'm going to hit apply here. All right, so four sold in the last—um, four sold in the last six months, or 14—I'm sorry, sold in the last six months, and these are all connected to the MLS as far as that. So—and we're looking for these five-acre comps. So we have five acres right here for 55, um, 6.79 acres for 75, six for 50 right here, 3.84 for 55. Um, so what I—what I want—what we want this range to be is anywhere from the 30 to like 75 range. I think I have here 20 to 70 range, um, and this is anywhere for five acres there. Like let me go through this one more time because I went that through that kind of fast. Six for 50, that's about $8,000 per acre, a little more than $8,000 per acre. 6.79—this is a little more than that, but five acres is still going to fit in that range. I think five acres in this county is going to sell anywhere [Music] from probably like 60, I would say, and again, we don't have to be exact on this; we're not pricing anything out here; we just want to make sure it's in our range. And a lot of you guys, when I talked about what's the most important thing when you're targeting an area, um, it was demand, everything like that. Demand is—if thing—if five acres is selling for 50, 60, $70,000, there's going to be a decent demand there. If it's selling for 10, 15, 20, $20,000, it's getting pretty cheap; we might want to even change that up to 30 as the minimum. When we first started doing land, I was buying five acres for like $6,000 all the time. Um, waiting for the comping feature to drop where we can comp our land. We were making an offer on—it's—Yeah, so I—Robert, I do that every night. I go through—so we have—there's like—so for the comping feature, you're going to get uh PDFs essentially. So if you—it's going to have a predicted price, a Land Portal predicted price, um, and I'm going through them every night, testing the logic, um, so it's something that we do not want to release until it's 100% good, but the comp report is awesome; I love it. Um, all right, population density. Does this all make sense, guys? The $60,000—it's not exact; I'm not saying every five-acre property in Adams County, Ohio, is going to sell for $60,000, but it's definitely within our range based on that. Um, Valerie, there will be a replay. Ashley, how you doing? Let—make sure I'm not missing anything. So this—actually a really good question that I want to talk about here. So uh, Terrun, sorry if I'm saying your name wrong, Tun, said, "How do you uh analyze the demand?" So there's a couple ways to analyze the demand. We're going to talk about for sale and sold on here. We'll actually fill this out real fast. So let's go here, and let's go—and this is last 90 days. So on the county selector, you can see for sales, Zillow last 90 days, 90 days sold, Zillow 90 days. All right, so let's go and do that real fast, and it's two to 100 acres we're doing there. So let's go back to our filtered search and let's fill that in for that. So I'm going to switch to two to 100 acres, and I'm going to do sold in the last 90 days, and I'm going to hit apply. Okay, so we have 23 here. Part of demand is just things actually turning over on the market. So if we have 23 sold and there's 150 for sale, like that's a problem. I don't think we're going to see that here, but we—we don't know yet. Let me see. Let's just switch this over to for sale, same exact thing, days on market 90 days, hit apply. All right, so we have 23 and 25. This is an awesome spot to be, guys. So we want about one to one for this. So you can see it's very, very close here. We want about one to one; we do not want five properties sold and 25 for sale. That means there's a—not a lot of buyers out there. Like that is how you assess demand: like are things actually turning? Another way you can look at demand is when you actually go on [Music] to—when you actually go on—and actually, I mean, I can do it on here, too. Let me just—let me go here. Uh, let's go—let's go back to sold. Another way you can look at demand is just by seeing how fast properties are turning, so how fast properties are selling. So this one just sold 319; this is only two acres; I'm not going to do that. Let's do—look at this, 15 for 90, um, and what you can do, you can click in here, and you can do this on Zillow as well. We're adding some features on this, um, but what you can do is look how long it actually took to sell. So it was listed for 169; they changed the price; it went contingent on 1220. So this one actually sold relatively fast; it sold way under what they were trying to sell for. You can see it was listed at 170, so like does this mean demand's low, or did they just overprice it? In my opinion, they just really screwed up on the pricing here, to be honest with you. So let's go to a different one here, 16 for 80. See what this looks like. This is a—probably not a great comp here with how remote this property is; that's probably not going to be a great one to use there. Um, but yeah, essentially what I'm doing here, I'm looking—are things turning fast? Are things selling within 30 days if the key is if they are priced correctly? Um, all right, so we had 23, 25. This is all green to me as far as like if we're looking at what—what we want, like this is all amazing. Like $60,000—this is really good, um, and we want to go to population density. Again, I said two to three counties removed from main metro area. I think Adams County was one, two, three counties removed. We have Cincinnati right here, one, two, three counties removed. Perfect. That's why these numbers are lining up so well. So if I go back—let's go back here—and let's find the population density. We want 50 to 150 people per square mile. So I'm gonna type in Adams County, Ohio, and I think it's at the bottom; I haven't been on this in a little bit. So United States, and then Adams County, Ohio. So you can see right here, it's at 47.1. Let me see what we have on here. This is a really good spot. Yeah, it's on the lower end of this, but this is not in a—
Bad spot at all. And then you can also look at days on market. So 14 to 100 days is what we're looking for. I'm going to pull up Redfin's uh housing market trends, and we are going to go to county here. And I'm going to type in Adams County, Ohio. And what we are looking for here, hold on one second, they changed this. Oh, here it is. I'm sorry. All right. So right here is days, excuse me, days on market right here. It's usually at the top sheet. All right. So let's go back. Let's go Ohio region, type Adams County, Ohio, apply. So days on market, you can see the trends of days on market. This one's going to be right around 100. Let me go here. So 78, you guys can see there, 78, right there, 78, 93. So it's anywhere between that. It's on the higher end. Again, that means it's taking 78 days for things to go pending. Uh, it said 93 for February. So let's actually put that. But again, all these are 47's a little below range, but all these are really good. So if we put, I mean, you can put yellow light yellow for 47, but I'm not against that.
And when you're looking at these guys, like this is what we use, this is what historically like you are going to get deals if you use, if you look, find counties like this. Can you go outside of these? Absolutely. But when you're first looking to get into this business, um, being in areas that fit these are amazing. Like five acres going for 60, incredible, very good area to target. All this stuff lines up really, really well for this. Um, but what you would do if you're doing this for an area, let's say you live in Charlotte, North Carolina. So you'd go, let me go through the steps one more time, guys. That's South Carolina, what happened there? All right. So what you would do here, Charlotte is it's Mecklenburg, right? So what you would do is essentially pull data, look at numbers on these counties, all in this region, and you would line them up. So you would have whatever 13 lines, something like that down here, you'd have 13 lines down here, and then you would line them up here. Um, and you essentially see what makes sense. Um, but you're looking for areas that fit these market green, like you have all the parameters up here. Um, this we want about a 1:1 ratio, like I said, around there. We don't want a bunch, the the the key thing is you don't want a bunch for sale and very few sold. Essentially, you want a decent amount sold compared to the for sale. Let me get through some questions here, guys, because we do only have a couple more minutes. I'm going to delete this on here. Um, actually, I'll just keep it, just delete these rows. All right. Um, let me go through questions. What is the average price? I'm going to click these questions. Let me average price per contract deal when texting? Texting doesn't really change our profit margin. We typically make about $18,000 to $22,000 per deal, like at scale. Some deals we make $100,000, some deals we make $12,000. Texting is no different than that. Um, it's just a different strategy. Where did you get that info on the LAN portal? So you got to do the MLS beta. You do need the advanced uh plan for the MLS data on the LAN portal.
Tyler, I'm jumping on here late, so please ignore if you've already covered this, but shouldn't you leave the days on market as NA for for sale? This isn't days on market here; this is the volume. Uh, Charlie, this is the volume sold in the last 90 days. Oh, you're saying that, okay, I see what you're saying. Um, I like I like, I mean, you can go a year back if there's not enough data. Someone asked about if there's not enough data. If there's not enough data, also go a year back, something like that. Oh, that's a good question. Evan Beck, how much uh advertising cost? Probably 800's probably normal, I'd say per deal, somewhere around there. Texting is very, very efficient, like we we've really, as far as teach, like some of our coaches are just doing incredible texting, and they've helped so many students with it. Texting is very, very, it's growing quite a bit, but there's so much opportunity. And the nice thing about it is it's not that expensive to get deals. And that's it. That's a I don't want to say guess because it is like I do have data behind it, but it's definitely not exact when I say that $800. It also matters what you're targeting. What's the minimum number of comps sold in a county that you look for? If I have two to 100, if I have eight to 10 in the last 90 days, I think you're in a decent spot. Like I I really, really do. I I I don't think I some of our best counties, like my county, I'm not going to actually say the exact county that I've made the most money in, uh, but the counties that I've made the most money in, uh, haven't had the most data to be honest with you. Um, but it's just solid data, like it's solid sold comps. The the the secret good counties are the ones that don't have a lot of sold comps, but when they are listed, they uh sell really, really fast. Nick said he's spending $400 to $800 per deal for mail. Yeah, that's very similar, as far as 400's low, um, for texting, but it matters how many you're sending, honestly, like you you probably can get in that $400 to $600 range for texting for sure. Um, I do have to hop, guys, to our members-only call. Hold on one second. If you guys have any questions, if you guys need anything, like I said, I put the county, I put the county selector in the in the comments. If you want to make your own copy, hit file, make a copy, um, and go from there. If you guys are interested in learning more, there's a consultation link below in the description. Uh, other than that, have a really