Transcription
Hey guys, it's Family with Landers, and one of the biggest questions I get is how to comp land. So today, I'm going to go through, underwrite, and comp some deals for my CRM and show you guys how I comp land.
It's really important to understand why we're doing something as well. We comp deals; we comp land because we need to get a very clear understanding of a market and what properties are selling for. So that way, we can enter into a market at 30 to 50% and be realistically positioned to sell quickly on the market. So I'm going to show you exactly how I do that. Let's get straight into it.
All right, here we go. So we have a 40-acre parcel in Iron County. Immediately off the bat, what I'm doing is pulling zip code comparables. So here we go, by zip code, I'm going in immediately and seeing what's selling in this area based upon where we at: 40 acres. Okay, so we're going to go 40, anywhere from 20 to 50 max. I'm really looking for 40s. Uh, so you see this one, $45,000 sold. Okay, this one sold in two months at 45k. The other thing, too, is this helps you become a lot more—I mean, you're able to be realistic with sellers when you see—because sellers are going to be asking you and telling you, "Oh, I want $200,000 for my property," when you can say, "Like, hey, look, the average property in this area is literally selling for $40,000, so there's no way you're way over market." This one took a month. The good thing about this is a lot of these are moving quickly, but off the bat, I wouldn't offer any more than $225,000 for this deal. Yeah, but all these are moving very quick in the zip code, so that's good. Market selection was good here. Shout out to Land Insights. Yeah, all these just flew by, man. Yeah, so I will consider all these comps. Really, the highest one that we have here is is $95,000, and this one, even that one sold quickly, but this wouldn't really be directly a comp. Let's see here, private road as well. What was the marketed Des? Yeah, and when I comp, too, I'm always looking on the lower end of what a property sold for. That's really important. I don't really want to look on the higher end. I always look on the lower end because we always want to be conservative with our offer prices. The more conservative we are, the more profitable we'll be in the long term. So yeah, that one's cool. I'm going to go ahead and say $25,000 maximum offer price; minimum, we're probably looking at around 20 grand, selling for anywhere from 50 to $52,000 max. Lowest I'd say we exit for on this one is like 45k.
Next, we have a 76-acre parcel in Illinois, two points of road access, so fantastic. Great road frontage. Honestly, could potentially, depending on how things are selling in this area, could be a subdivide candidate. I know everyone wants to subdivide stuff nowadays, but uh, you know, looks like a good deal. I'm going to see what comps Land Insights actually has for me before I go to Zillow. Ah, look at that. Had an 80-acre move for 1.2 million. I like that. Can't see when that was listed, so I can't see the exit, but this is what I want to see. These are the kind of deals that I love to do. Let's see, 33 acre, 40 acre, not a subdivision, just do all right now. Let me go by the zip code on my own. Might just have to go Kay County. Let me see, give me a zip code, please. Let's see here. Let's just do [Music]. This zip code comparables are extremely important. Sometimes people pull countywide, zip countywide comps, and when you're pulling countywide comps, the comps are not going to be as close as they need to be. Now, let's say you don't have any comps in the zip code, then you can go countywide, but I always want to go countywide before I go bigger than that. Now, let me expand my acreage range here. We have anything? Yeah, this is the only thing. This a good comp though, 1.2 mil, honestly. Yeah, this is going to be a deal. Look at that. Second property we're underwriting; we already found a deal. Go through some of the other ones here. Thing is, though, as you go countywide, you're going to start to get different property types, and so you can't, like, let's say, for example, you couldn't use this property as an example; you couldn't use this as a comp because it doesn't have the same kind of typography as ours, right? But you can use this one because it's literally—I mean, it almost looks exactly the same. In fact, ours has more road frontage than this one does. All right, solid. Next property. All right, here we go.
Next, we have a 20-acre parcel. This one is all right. Next, we have this 20-acre parcel here. This one is actually all right. Next, we have this 20-acre parcel here in Dodge County. Zip code here. Let's check it out. I've actually done a lot of deals in this exact area, so it's good when you're familiar with the area. So let's go 20 to 100. Already there. 83. What I'm looking for, too, is to see how fast these things sold for based upon what they were priced for, and a few indicators that I look for when I'm looking at comps is, okay, when was it listed? When did it sell? How fast did that happen? And then depending on when it was listed, and so, okay, when was the price dropped? Was there any price changes? That's also what I'm looking for, and then I also look for how fast the property went under contract since the price was changed. Because if you can, let's say that you had a property that was for sale for $220,000, right, and they dropped the price $20,000, and then a week later it goes under contract, let's say you know the price that they dropped it for, so 199 grand, say it goes under contract for that, then I know that they were priced wrong on the market. So then I know when I go to the market, I need to position myself at 199 for a similar kind of property. This is all about positioning. So when we know we get that data and we understand, okay, this is what I need to list for and relative to what these properties sold for, then we can make our offers based upon that. So that's essentially what I'm doing right now. I'm also going to look on Land Insights and see what comps they have here. You got some closer to the city. So here, what are these here? 7 35. Okay. Yeah, okay. So I mean, realistically, we're going to be at around anywhere from 50 to 55 for this one based upon what I'm seeing here, and the thing is, too, there's so much discrepancy in this area. It's one thing that that I don't like. Yeah, this one is honestly the closest one, and when I see a lot of discrepancy, I actually start airing on more of the cautious side of things because it could go one way; it could go the other way. And the other thing, too, this is why we use local brokers and realtors because a local broker will tell you what they think it'll sell for aggressively as long as you tell them, "Hey, look, I'm I'm trying to sell this in 45 days." The other thing that is important to consider with this one is that it's on a highway, but it's good though because there are homes here. It tells me that the road is easily accessible and people are going to it and it's used, so whoever buys this would just likely have to put a driveway there just like all these people have as well. Solid. Do all in all, what is this, like a body of water there? Let me see. I don't think so. Okay, so for this one, I'd say around anywhere from 40 to 45k, and re—so probably we're looking at anywhere from $880 to $85,000. All right, cool. Next, what do we have here? What is this? 80 acres. Okay, the road frontage, I don't really like. I like to see more road frontage, but this looks like a really solid recreational property here. Either way, let's check out the slope. Slope's not bad either. There is a body of water here; it's like a lake, a little lake. Hopefully that's not marshlands. Let's see. Okay, overall solid. Let's get this zip code for we 80. Yeah, I thought that these were going to be lower priced in this area, too. We've seen about 85 grand for 80 acres in this area, same kind of property. Yeah, you can see, too, what—that's a little bit weird. The data is wonky on that one. Let's look at let's look at some other stuff here. Yeah, these are priced a lot lower. Let's see what Land Insights says, too. 5 99 at 130. Yeah, but this marketing is impeccable. How long did this take? I think it took what it say? 27 days. Yeah, but that's what happens when you have good marketing. I think if we can market this property correctly, this is the top of the top of what we could get. Probably looking at like 99k, but realistically, you're probably looking at 80 to $85,000. And if you look at this one, right, this one has really good marketing, painting a perfect picture for a buyer, and it's bigger than ours, and what is the—looks like maybe a private road. Let's see. Yeah, let me see. Oh, okay. So it's got around—it's got some frontage over here as well, a little bit. It's got some frontage here. Yeah, so I'd say still for this one as well, we're looking at 40, 45k for this one for ours. Great comp by Land Insights though because I couldn't find that on the zip [Music] code. All right, cool. Let's go to the next one.
All right, here's another one. So I also want to get into the thought process behind comping properties and looking at properties and underwriting deals. Okay, what are the things that we're looking for? I'm looking for road frontage; I'm looking for wetlands; I'm looking for flood plains; I'm looking for what properties have sold for nearby; I I'm looking for all of that, and I'm also looking at what the demand is like. What is the demand like for this kind of specific property? So these are just things that we have to think about as we're positioning ourselves to sell on the market quickly. So you know, and a lot of these things also happen with conversations with the seller. We can't tell everything just by looking at the map. I want to know what that is. Look like some kind of structure. Can we switch maps here? I can't do it on here, so I'm gonna—I'm going to switch over, see if I can do that somewhere else. All right, let's pull the comps. I also use Zillow and Redfin interchangeably. I think it's really important, too, when you're doing your your market research, you need to actually be looking at land that's selling, which is why in my market selection process, I always have that in there. It shouldn't just be some AI numbers that you're crunching and like, okay, well, these are selling better. Like, no, I I need to actually have an understanding of the property types in this area so that way when I talk to my seller, I'm better equipped to talk to them about it because I've actually looked at the properties that I've sold in this area. I know what their attributes are; I know what the road access looks like; I know how fast they're selling; I know all of that because I'm actually going through line by line and looking at these things. This is as data and AI becomes more prevalent in our industry. This is the one thing that you can't take out of that is the human aspect. It's going to be very difficult; it's going to take a long time to do that. So as long as you're in here and you're not just depending on like numbers and scores and things like that, this is what keeps you ahead of the game by actually knowing what properties to look at, what the aspects are of the property, because the one thing that you won't be able to take out of this even with all the AI is the human aspect, because the profile of seller that we talk to, they want a human aspect. They don't want to talk to an AI bot; they don't. So let's go through here and check this out. This one sold in 2022, 52. This one had a structure on it. I might have to go a little bit more wide for this. Where are we at for this one? This one was 20. Okay, sorry. Actually, I think I'm might have to go a little more wide. All right, here. This one looks like they subdivided it off a little bit. Let's see. Not seeing any good comps in this area. I want to see what Land Insights has. Okay, you have a one [Music] two five. Let's see anything in the immediate area. 65. Let's see, zoom out a little bit more. So for something like this where it's a little bit harder to find the comps, right, first of all, I'm gonna call—oh, here we go—I'm going to call a broker anyways, but we do want to have a broker walk this one, but look, we see 19.6 acres, so for 110,000 and it's sold rather quickly. So this one will be a comp. The only thing is it's just a very different kind of property than ours, right? So it's a lot more wooded. This one also has two points of road access, 178,000. Ours is not wooded at all either. It's yeah, I mean, realistically for this one as well, I would probably say I'd probably say around 50 to 60k. We get it done for us; we could exit at around 120.
All right, here we go. So we have 26 AC—we have 26 acres, boom, County. I don't see any point of access over here. How did this even get into our—let me see. Extremely slow. Yeah, I'm going to go ahead and say absolutely not. This is extremely slow. Uhh, there's nothing we can do with this. No, thank you. It's not even worth pulling the comps on this. Yeah, this is going to be a pass. So word to the wise, if you guys see any prop like this or it's this sloped, there is very little that you can do with it. This is not the kind of property that we want to be buying at all. Look at how deep that slope is, and then you can see right here. Let's see. Looks like there's a comp right next to it. So this one sold. Look at that. You see what I mean? 287 days on the market. I mean, it's sold, but why would you even want to deal with that? This is a nice one. Got 44 acres here. I think the other thing, too, that is important to practice with this game is being extremely stoic throughout, looking at all deals. I see a lot of people that come into this, and this is a lot of a lot of my clients, right? I I have to coach them on being more stoic at looking at these deals because they're just products, right? All these things are just products, and we can't get excited about one thing or the other thing because you can't put yourself on this emotional roller coaster if you're going to be doing this for a long, long time, and if you're going to actually make a lot of money from this, we can't do that. We can't get super excited about another deal and then get upset when the deal doesn't close. We can't do that. So I've become—I mean, I've underwritten thousands of De—I don't know how many thousands of deals, so I don't get excited when I'm like, "Oh yeah, this is going to be a good deal," just like, "All right, cool. Let's go through the process." Um, but this one right here, 44 acres, looks good. Everything looks good. I want to see first before I move over what Land Insights has to say about it. You see a—ah, took too long. Took too long. 351 days, 47 days, 590,000. I like the sound of that. Okay, we could use this as a comp. Sold in two months. Let's see what else. Yeah, I mean, that's really the closest comp I'd say for this one, though. I don't know that this one sells at 500. I don't think so. Let me see this property. Let me pull it up right here. It's not going to tell me. Okay. Yeah, so I'd say anywhere from around 150 to 200 grand and hopes of selling that for double. I want to see. Let me—me look at this map. Yeah, solid deal. Solid. Solid. I like that one.
All right, last one. So we have 56 acres in Hancock County. First thing I see, I see a slope here, and I see a flood zone, so those are those are not good signs, really. I don't think any of that stuff back there is going to be usable. If anything, it's just going to be this up front. So let me go zip code. Yeah, I would go as far as to say I'll pass on this deal to be honest, but the one thing that I see here, there are structures on these, so that gives me gives me some hope there. Just we need to figure out what that structure is right there. Yeah, I take that back. I wouldn't pass, but there are not 56 usable acres on this property, and you can see that because no one has done anything with this stuff back here. All right, let's see. 57. This one took a while to sell. 120 took a couple of months on this one. We're going to be really aggressive when it comes to market pricing, when it comes to just pricing the property in general. I'm going to be very aggressive just because of the flood plains there. I want to see what Land Insights says about this one. Got a 14. Can use this. Yeah, but this is nowhere close to what mine is. Let me see. Let me go in a little bit deeper on this one. Okay, you have a 50 that sold at $130,000. So this is probably closer to where we want to be comp-wise. So you see, guys, what I'm doing? I'm looking for topography; I'm looking for size. Those are the two things that I'm looking for. I'm also looking at how it was marketed compared to how I would market mine. This one took a little longer than I like it to, but check this out. So they price-changed it. This is what I was talking about earlier. You see here, they changed the price. A few days after they changed the price, it goes under contract. So a lot of the time when we price properties, this is what we're looking for. I'm looking to see price changes because I want to know where the market responded. What price point did the market respond at? Then I know how I can position myself to sell faster on the market. That's why all my properties sell so quickly because I'm looking at this. You can't go into—like, AI is is not going to tell you that. Doesn't tell you that right now, at least. So this is what we need to be looking for when we're looking at sold comparables as well, like you need to line by line actually look at these things so that you know what's going on. I would say that's the closest comp that I will likely find in this area because of the slope and the flood plane. I'm going to go on the more aggressive end for this one. I say anywhere from 40 to 55 as well. Today, I comped some of my smaller properties. I didn't want to comp any of the the larger ones today, but I'll do that on another day. But essentially, when we are pricing and comping properties, we need to be looking at topography; we need to be looking at size; we need to be looking at how fast these properties are selling as well, because one thing that people mess up on, especially when comping properties, is airing on the more the higher-priced side of the market. You can never do that. If you start airing on the higher-priced side of the market, you're going to lose money, and your proper—proper—are going to sit for 200, 300, 400 days. We have to be as aggressive as possible, and then also understanding that this is only one portion of the business, right? The other side of the business is your acquisitions process, your follow-up process, and your lead management. How you're actually managing your leads. So how are we talking to our sellers to get them down to that 40 or $50,000 price? How are you building rapport with that seller? How are you able to build trust? How are you getting pain points out of them? How are you identifying pain points on the property as well? There's so many different aspects of this business. This is only one part of it, but if you can understand how to comp just like I've just done, you're going to increase your chances of success in your land flipping.
Business in 2025 and beyond. If you guys want help with this, if you guys want help implementing the systems required to run a multi-6-figure profit land flipping business, feel free to book a strategy call with me below.
This has been Fe lamur, and I'll see you guys in the next video.