Transcription
This is how he makes millions on a day-to-day basis. Just know, not only are we closing deals, but we're getting shredded. We're getting cash.
So, next part of the presentation is comping. I call myself a number one comper in the world. I can value any piece of land that's inside the United States. If it's outside, I might not be able to do it, but I'll figure it out. But I have comped tens of thousands of properties, um, as I've been a land investor. If you don't know me, I'm Ryan Loader. I'm a multi-millionaire land investor. I came from nothing and became a multi-millionaire through land investing. I also own Lane Insights and created the best comping tool that land investors use. People that start using it have about a 95% chance of coming back and using it every single day. So, I lit this stuff. So, I'm going to teach you, uh, basically the framework of how I comp deal.
So, there's two types of comping. Okay? You have your line offer comps and you had your deal comps. More effort is going to go into this. Okay, this is when you actually have a deal when someone says they want to sell and you actually need to conservatively comp this and make sure you're dotting your eyes and slashing your tees, or whatever the you say. Okay. And there's blind offers that you're doing on the front end. You guys are making a lot of these and you need to build a good framework of coming up with good offers quickly that are conservative. Okay, so less effort happens here, more effort happens here, but both of these are equally important. Okay, so I'm going to start with our blind offers since we're going in the order of the process. Woody, you might want some stats here 'cause I know you're going to graduate past the ninth grade. So, welcome to SAS class. What do you do, you know? So, [ __ ] What do you know? Do you know what this graph is called? [ __ ] No. It's a hill. Ryan know what this is called? Bell curve. Bell curve. Yay. Bite doctor. This is a bell curve. Okay. Let's just say this is your, let's say this is 10 acres. This is your to be cut. I mean, oh, okay. 10 acres. So I could still. Okay. So excuse my handwriting. All right. Assume this isn't 10 acres. Okay. Assume you're in a county. You have multiple 10-acre comps that you're looking at. Let's say it's on a spreadsheet. You got all these 10-acre comps and the price per acre is dipping across the board. Okay, this is your low end. This is your high end. Okay, these are outliers. This is a [ __ ] property that might be in a slew or it's on the side of a hill. This is a property that mistakenly got put in your data set. Maybe there's a house on it. Maybe it's a crazy entitlement opportunity. Maybe it's a commercial. These are your normal residential agriculture comps. This is where the median is happening. This is a median. Okay. So the for the most part comps are going in here, right? So let's say you're looking at a data set. You just pull in a raw data set of all 10 acres. And again, it's rough, right? You're not always going to have a perfect 10 acres. That might be an eight acre. There might be a 12 acre in there. But let's just say you have this data set in here and you're just guessing what the average value is of a tenny deal. Okay? Everything's ranging. You never want to consider this. You never want to consider this. And you never want to consider this. We're land flippers. Our goal is to sell land as quickly as possible. In order to do that, we're not, we can't do anything special. So we, the only thing we can do is sell it low. So get your dreams out of the way that your land's worth this. I fund deals all the time and I [ __ ] hate when people send me comps that are in this range. I get pissed because not it's never going to sell at that price. You have to sell it quick. We're land investors. We make money by selling properties quick. It has to be sold in this area. So, realistically, land sells from my experience. I've sold hundreds of properties. Land sells at this value. Reserve sales. It's not selling here. It's not sell the median. It's not selling at slightly below the med. It's selling below the median from a percentage standpoint. Just bar. What would you project that? Like 10, 30%? I'd say it's, yeah, 10 to 30% of your cons in that area. Cool. Yeah. Cool. Yeah. So, if you do a simple average calculation and you say, "Oh, it's worth this on average." It's not going to be worth that. It has to be worth 10 to 30%. Which means you got I have like that you need to buy really cheap. On average, how long do you want to sell properties? On average I want to sell the properties within 5 days. That's the goal. Normally what? On average we're selling like 60 days, 60, 90 days. But obviously there's outliers. Sometimes it takes a year to sell these properties. Sometimes it takes 5 days to sell these properties. Yeah. Great. Yeah. So get your hopes and dreams out of the way that your lane's worth with this. If it's a if it's a commercial property, it might end up over here. That's a different case. On average, if it's residential or a, it's going to end up here. Every once in a while, if if you're in a really, really high demand market, properties are flying off the market, it might end up somewhere in. But for the most part, what I've seen over the hundred properties I've sold, it's in here. Okay. That being said, you come up with this value that 10 to 30% value of of the average of the properties that sold. You come up with that value. Let's say it's 5k per acre. That means it's worth 50 grand. So that means the 10 acre is worth $50,000 based on your estate. Okay. You're sending a Ymon for, you're sending a letter. You want to nail about 40% of that value. So somebody calculate that for me. That's 40% of 50,000. It's going to be 70,000 worth 50,000. No, it's going to be 20,000. Wait. 20,000. 40,000. That was gorge. Yeah. That's what your blinders should be. Do you max upper max offer? So that I like to do 40%. No wine offer. But if I'm really reaching, I might go 60%. Well, I'm glad that 60% is pushing you. Okay. You don't have a lot of margin right here. And again, there might be I didn't say again, there might be a for sale call that's down here. And if you buy that property, you need to list it below that you will go right before your son. Yeah. You do. Yeah. When's the timing of knowing when to go well at 40%? So, you're not much people to tell you go yourself. That's a ridiculous offer. Sometimes I like to take a take a risk. Sure. Yeah. It's like a visual. Let's say it's a less common market that I I found that I I noticed nobody really works it like I've never heard of this market or never heard of land park there. I might throw a 25% off for sure might get away with it, but on average this where I'm usually see and I might push to 60. Okay. Right. I'm sorry I keep asking question but does that change from text to mail 'cause mail is pretty expensive and you have the whole inter you want to get beats. So then you on the phone it's better to have call you it's better to have someone call you than not talk ridiculous. You also know it's harder to go back but an offer you guarded at the ter with us when we talk. Yeah. So, I was like speaking with coach last week. He's struggling currently because he offered too high on a lot of the the blind offers he made and he's been having to circle back with sellers who were interesting. Obviously, the sellers are going to be interested if you offer too high. Now, he's trying to circle it back and try to negotiate. Oh, your land is slightly on the slope. I need to excavate it. Oh, I'm not doing you land [ __ ]. So, do I can go? So, if this is all important, it's important to nail this right because if you make your offer correct on the front end, you're going to get that deal and it's going to go through smooth and make killing. But if you offer too high, then that's a circle back a lot. You need to be really good at sales. I'm not saying you shouldn't be good at sales. I'm just saying it's easier to do it right. Yeah. The first time around, all you need to do is do this purchase sign. Everyone's happy at the end of the day, right? And you said, "What about text?" 'Cause tech's a little cheaper. You can go up to 60%. But you might run in the same situation as coach where you have to circle back and need to be good at sweeter hot [ __ ]. Why wouldn't you be? It's up to you. I'd rather get really good deals all the time and have have to talk with less sellers who more I like to I like to run you. I have really good sales people on my team but at the end of the day I've got a big marketing budget. I'd rather just get killer deals. Cool. Yeah. Smart.
Okay. So the way I do this, this is puppy, is I figure out what the average value is on a certain band. So let's say I'm mailing two to 200 acres. Uh, let's just say $28. I'm going to find the value of the most common pieces of acreage within this data set and I'll connect the dots after that. So I'm going to figure out what a 2 acres worth. I'm going to figure out what five is worth and a 10's worth, 20 ore 80, 100. So I'm going to figure out the values of all of these 'cause the most common pieces of land are at these acreage points. You all can agree on that. Yeah. I'm not going to comp a 65 acre piece of property. That's that's less common than 80. It's less common than 100. The way land was chopped up back back in the day, it usually started as 320 acres and they chopped that up in 80 acres and they chopped up into 40 acres. Makes sense because it's they're dividing by even numbers, but it was usually 320 acres in a mule. Is that what it was? Or was it 180 acres in a mule? 40 acres in. Okay, whatever. But they were 320 before that. All right, my bad. President. All right, so I'm going to use that whole beller system to call the values. Already figure out what tank is worth. You figure out it was worth 50 grand. Okay, let's just say we done that whole thing. You brought in the whole data set or rub outliers. We looked at the median and we went below that median. All right, let's say five acres is worth 30. Two acres is worth 20. 20 is worth 75. 40 is 100. 80 is 150. 100 is 250. These are just random numbers. It probably doesn't make sense to you guys, but they're random numbers, right? So, you guys obviously exported the data set. You need to price out that mail. You need to price out that marketing campaign, whatever. And you guys have 3.34 acre properties that are in your data set. Obviously, we haven't covered that yet. Do we need to calculate that? What we do is a simple rise over run equation. Okay. So we rose between two acres of fire. We rose three and we ran 10,000. Sorry. We wrote this off run over rise. Run over rise. My bad, guys. Why? Why? You get the gist of it. We rose 10,000s and we went over three increase. Okay, so 10,000 divided by three. What is that? Yeah, he's not smart. I'm. Okay. So, that being said, you just create a simple Excel uh equation in your spreadsheet that shows every one acre you rise, it goes up 3,333. But you need to like if it's 2.2 acres, you need to make sure that equation makes sense. I'm not going to help you guys do Excel equations. You guys can figure that out on your own. But that's your your rise over run equation. Use figure use tragedy to get figure it out. That's how you connect the dots for every single acreage point you ever get. Okay, so we figured that out. We figured that out. Okay, we're going to do the same thing between knees. Okay. We love that squad too. So, we're going to do 20,000 'cause we 30,000 to 50,000 is 20,000. That's the difference. Divided by five. Equals 20,000 divided by five. Booty or something. 4,000. So, good job. So, our every every anchor we go up we we go up by 4,000. Okay. Between here and here. And the reason why I do this is because you do not have you don't ever have a perfect situation where it's like that. For some reason that because there's so many statistical anomalies, there's so much demand for certain acreages over others. You're never going to have a perfectly like exponential or uh exponential decay equation. So the best way to do this is just do linear equations between all these data sets that you know. This is the way I do it. This is what works. My offers are correct most of the time. So this is how I do it. I kind of explained it, but ultimately you're not going to have a perfect equation. You can't just make one perfect equation that connects all the dots. It's not going to be accurate. This is how you get hyper accurate with your blind offers. Questions? I love I mean that was really good first. [Applause] I'm not dumb. This party a good start question on so way back we had the docker um if you let's say you're looking at 10 acres can you come up with there were 5,000 acre but that's all immediate you have a percentage that say okay so we didn't need you me and Bryce fight we see you're seeing quite a bit for like maybe sir Russell Emily, come inside. Hey, J. Hey, we're filming. Filming. Sorry. It's still filming, eh? Yeah. This one's still filming. Yeah. Okay. Two ultra turkey six. So, are you hopping at the 5,000 number and take percentage off of that or you're or are you taking Okay, you're up three or four soul per that's kind of the lowest number. We're going to go with that. Does that make sense? Yeah. Are you punish someone? Is it good? Is it good? Well, is it good? Huh? Well, she's Good. All right. All right. Wait, you had a question like, oh, if there's this many at this or that at this price breaker, there's this many at this price per acre, what are we doing? So, make that bill. So this is this is uh like we're talking about the pen that we. Yeah. I tend to ask them if I should. Yeah. Resp. Yeah. So let's say I'd ra the big question how wait um so how do you decide like if the property is to take or you think it's worth about 5 an acre that's the medium right how are you deciding or you just So it go take 40% off of that or are you going to look at the lower you know there are a couple cones at 4400 there were a couple at you four or any taco this would be in you so I think this is good that you're asking. Yeah. So because the medium price is five but you should probably go are you taking that and using the 4400 or you take your percentage to 5,000. Okay, so this is 5 to 10 acres is the price per acre. As you guys know, price per acre is up when you're at by acres. It's going to be much higher than a 20 acre because the more land you have, the cheaper it is. Price per acre, right? So on average, like this, let's say this is your median. Like this is about the center. That's about the center of all your comps. You have your outliers like this is the commercial of the house. This is lane locked or flood zone, right? But this is about your average, right? Over time. So, as I said before, your bell curve, you want to be here, right? So, that is about here. That's about the value. See, we're like on the very low end of all those comps. We want to be very, very conservative. Get your hopes and dreams out of the way that is with this stuff. You're align. This is value. Value, not offer. This is your value. Market value based on comps. Okay. Does that answer your question? Okay, that's good. That's 10%. It's good. Stack question. What is this called? What do you? I don't know. I'm talking scatterb block, right? Oh, look. I thought you talking about the second dual line. I agree that. Yeah. So that's how you trace your mail ros. You're saying I'm just I'm being ultra conservative. If there's a data set of cons, I'm assuming these are landlock properties. I'm assuming this is the average. Yeah. But if you list your property for a year, it might sell for this, right? And then these are your your houses, your your farmland, all that [ __ ] that somehow stepped through the cracks and is sold. This is the land we're targeting. This is the land we're selling. We want to sell it fast here. Yeah. I will say though like I priced like it did like the higher going to get more response. The low it's going to be able to view. Yeah. [ __ ] off. So if if you're if you're doing like very low cost, if you're doing 25% market value, it's like you got to send a lot. But when those come through, you get really good deals. But if you market at 60% of market value, then you're going to have a lot of people interested. Yeah. Well, you got to circle back. You're going to be really good at sales. Also on an out of letters sent and gross just [ __ ] revenue you're going to be making just statistically more off the the higher yeah the higher response rate the higher response the higher offer. I yeah I think it's got to depend like I think texting that works very well to do because you have such low quality leads I think with mail it's like you're spending so much how to get them on the phone that if you know how to negotiate 60% as Cory the people would pick up this 40% will go down. You actually that's my point. But the people about that can run your business. I really want that. Yeah. Yeah. Exactly. I'm just saying that you [ __ ] the 40% people wouldn't even have picked up compared to 60%. You could maybe try dropping them to 50. They're a good sweet talk. What time's your thing? Yeah. Well, it's 6:07 right now. I just want Oh. Oh, shoot. I got to go. I know. That's fine. All right. Yeah. I'm leaving you. All right. John. All right, YouTube. We out of here. This has been the land house. This is literally the land house. Here we continue part two. I'll cover tonight. I got you back. Thank God for. I got you, bro. This is how he makes millions on a day-to-day basis. Just know he forgot about. Not only are we closing deals, but we're getting shredded. We're getting tanned. We're getting I'll be honest. I'm older, but we're getting I actually have a day over at 7:00. When do you have a date? He recovered. A little background. He recovered the bag. Great text. Amazing. Backend game will be covered on this YouTube, too. Bag was dropped. It was on the floor and coach and he picked it up right there. What do you got to say, coach? I'm trying to hear JB, but it's hard cuz. What what you got to say, bro? It was just bald, bro. Godamn. Too fired to keep recording. We're at the LI studios for the MTV studios next week. Okay. We out. We out. It's been about 24 hours. Yeah. Since I presented comping 1.0. No, comping 2.0. Can you touch on what happened between 1.0 and 2.0? Tweets. I had a date. So, and then come Richo. How did the day go? Full computer. Wow. Were you late to the because of your presentation? I was I was 15 minutes late in the day because of the presentation. So guys, leave a like, subscribe, stay tuned as I'm sacrificing everything to make sure you all are educated and great land investors. All right, CEO folks. Yeah. Bring the sun like thirsty but summer's most bloody.
All right, so we're going over deal comping. Okay, deals. This is much more different than pricing a mailer. You're going to mess up a lot of the time in the price of manor, but on a deal somebody's interested, they want to sell, you can't mess up that comp. This is the most important comp that you're doing. So, you got to spend time on this. Okay? So, let's say you offered $40,000 or properties and you thought on your mail it was worth $80,000. It's not going to be worth that. Every single property is going to be completely different. If you like if you just price out a mail and you're like, "Oh, 10 is worth $80,000. So if I order 40, it's always going to be worth." It's never the case. Your initial offer is never the same. Because every property is different. Okay? And I'm going to go into the reasons why. So when you get a deal, you go pull it up on your platform, land in sights, and we have the comping tool. We built the comping tool just for this reason, right? You want to make sure you guys are very accurate with your deal comps. So you're going to pull up that property and the first thing you're going to be looking at, oh, let's let's just say it's 10 acres. You're going to go and you're going to select comps in the range of 7 to 14 acres because there are going to be comps in there like not every comps can be 10 acres, right? So there's going to be cops that are eight acres, there be cops that are nine, there be cops that are 13. Those are all relevant because they're around that same range. Now, I would know what that percentage is. You can calculate what that percentage is off of that 10 acres, but you always want to be hitting both sides just to make sure you're getting an accurate sample size into what you're viewing with COS. Okay? So, you guys could do that calculation. Whatever that percentage down from the 10 acres, go to that percentage up is rough numbers, but I it goes the same for like let's say say 30 acres like let's say you got a deal 30 acres. You're gonna look at cogs between 22 and probably 40 acres. Those are all relative. I would say you could slim it down a little bit. You can maybe do 25 to 35. That might be a little more accurate. I'd say it's still too much. Like go 25 to 35 if you're looking at a 30 acres. So a 25 acre C price per acre is probably going to be the same as a 35 acre. So you just bring in more into your sample size because in a lot of these cases you're not going to have enough comps to go up though. They make you feel like it's going to be accurate because you might have like let's say you did 28 to 32 acres, you're not going to have a lot of cons in that range. But you do 25 to 35, you're going to have a good sample size to go off of to make an accurate estim. But I wouldn't do 15 acres to 50 acres because 15 acres is going to be a much higher price per acre than 30 acres. So you want to stay relevant. So 25 is a good low end. 35 is a good high end if you're looking at 30 acres. And then of course with 10 seven or more T. Okay. Excuse me. Okay. So, you thought when you priced out your mailer that it was worth 80 grand. We're going to prove that as soon as we get a deal coming. So, somebody calls you up, they say, "Hey, I'll take your offer for 40." Or, "Hey, I want to counter at 50 or something like that." So, you have that conversation. So, the first thing you're going to look at is for sale. What is for sale? People mess this up all the time, and it irritates me so much. I hate when people only give me sold cops. Where's the for sale costs? This is what pisses me off the most when I'm reviewing deal fununding submissions. Okay, or sale. This is the most important thing you should be looking at. Obviously, solar comps are good, but if there's a for sale listing that's a great property and it's lower than all of these sold listings that you gave me, all your soul listings go out the door because this is current market value. Current market. Okay. The reason why co sale is important is because you have to compete with this when you list this seal for sale. Whatever is lowest on the market that's a quality property is going to sell quicker. So it makes sense that you be listing lower than this because our goal is to sell faster. Okay. You have a question? Yeah. Yeah. So on that because it annoys you that people are only saying you souls. Love that. Agree to obviously you know what you're doing. You're the best comper in the world. Well, you made that clear and like the numbers prove that as well too. So for people who are trying to get better with this and have a better understanding, what's a good ratio that we should be focusing on on activives to sults that is going to help us on a long-term trajectory know like how to more accurately be comping while incorporating that active listing amount with the four sales. I mean there's no there's no ratio to it, right? Let's say there's 40 sold properties. Yeah. And there's two less things that are loan than all these like I'm going to look at these. Yeah. And obviously I'm going to look at these two. But the first thing I'm looking at is these two. Okay. So you start with the four. I start with you start with the actis and the four sales and then you'll look at like what three or four solds. Something. I. Yeah. I mean I'm always looking like we talked about the fells curve. Yeah. I'm just I'm just doing rough math. I'm not bringing this all into a spread. Oh yeah. I look at the land insights combat. I'm like, okay, what's on the lower end of everything? What's what's kind of in here? This is why I'm just say like as an SOP mentally like, okay, so I start on the activives, start with a couple so I can when I make sure I present it to you, who is the best comforter? Like, okay, he's clearly looking at activives. He's not busted. He's not just looking at souls. Yeah. But then you also want to look at some souls, too. So that's why I was like, how many of each and trying to just figure that out of like what's a good cadence on doing it? That makes sense. Yeah. So, but start with the start with the act. So, so my whole goal when looking at the like we'll just go in chronological bold here has a bowl when we start with for sale is I'm looking at the cheapest stuff. Okay. Yeah, we selected uh 7 to 14 acres. We're looking at 7 to 14 acres because it's a 10 acre B. You looking at. I'm looking at the cheapest stuff going in order from lowest to smallest. So, I'll start with the cheapest. And I'm looking at the actual listing. So landing sites, you can pull up the URL. You can look at that listing. What I'm looking for is okay, what is that property shape? Is there anything messed up about it? Is there a steep slope? Is it completely in a flood zone or wetland? And the way I find that is sometimes they'll have the lot line the lot lines like on a drone or they might have um like a GIS map overlay showing the shape. So look at that. See if I can curve that. And then I'm also looking at the description. So if if a listing like generally if a listing ever says flood zone, wetland or recreational. If it says blood zone, wetland or recreational, if that ever shows up in that listing, that probably means there's something really wrong with it 'cause nobody would ever bring up any of this unless there was something wrong with it. This is a big turnoff. All these these three words are big turnoffs to all investors. Swam variational. How is? Well, if you say recreational, you don't like bring up that it's a good spot for a home. If you just say, "Oh, this is a great recreational piece." Okay. That's kind of assuming that it's not buildable. I did. Okay. Another one there. Secluded is a bad keyword. Yes. I see that a lot. Yeah. So, sorry. I forgot we were recording. What did you say? Oh, just some bad words. We'll keep rolling. We'll end it. We'll end it in post. See you. It's slipress. What did you say? You said [ __ ]. Yeah. [ __ ]. Yeah. Oh, that's fine. Oh, okay. It's It's all [ __ ] good then. Yeah. Yeah. You think? Yeah. Put a fox. Hey, we we can say, "Hey, no monetization. That'll undo." Bring the fun back in the last bit. Yes. Yeah. Yeah. Okay. So, we're looking for these keywords in the description on these four sale listings. If it has these and you have a feeling there's something wrong with it, X out that comp. So comp number one, it has any of this, forget about it. We don't have to worry about it. Go up to the next level. So we're trying to go to the the lowest listed for sale property that is quality. That means, okay, has a decent shake. It's flat. It's buildable. There's no crazy flood zones or wetlands on it. It's basically we're just looking for a buildable property that is just average like similar to yours. So if your property it doesn't have blood on wetlands crazy slopes like it's a good property it's going to sell. But if it has this it's going to be very difficult to sell it and that's why it would be listed lower than the rest of the costs like on average right? So we're just looking to find that lowest listed for sale property. So it only really needs to be one. So, you're going to have a lot of for sales on the market and you're looking at what's cheaper than like this area, that lower end of your comps at what you're looking on on the map. Okay? And we're going to mark that one poor sale listing that's the lowest and its quality. Okay? Please get our ing jawsized. I can jerk poor a lot. Codes. Oh. Oh, no. Let me take my comp. Okay. So, we got this lowest quality for sale comp that we found, right? We don't need more than that because we already found our baseline. We already found that baseline that we have to compete with. So, this property, the reason why I look at it first is if it was a quality property, it's for sale. That means if we get this deal, this 10 acre property, we have to list it lower than this listed property for sale. That's why I always look at first. Next thing I'm gonna do is actually look at cops. Look at soul cops. Okay. So, we're looking for this on your map insights. You've got tons tons of properties in there. Okay. All over the place. I like to stay rel relative by kind of looking at like a five mile radius around your property if we're if we're looking at something like 10 acres, but looking at something small though like a quarter acre lot, you want to stay in that neighborhood of that sub. But if we're dealing with bigger pieces of acreage, five mile radius is is good to be looking at. So we're going to look at all these. Let's say let's say that's this is your property. That's the five mile grad. Look at all these. Okay, I'm looking for this. I don't give a [ __ ] about stuff that sold over here. Irrelevant. It's not It's not going to sell at that. We're trying to sell these quick. They're all going to sell here, the lower end, because you want to sell them quick. Okay. So, we're looking at these and we're figuring out kind of what that point is in the middle right here. Like, what's our guess? Okay. So, we're marking all these. for figuring out what that what that average value is in there. Okay. So once they figure out what that value is, I'll call it below bell curve value. Next thing we're going to do is compare or to compare this and this. Okay. If that value is higher than this for sale, we have to beat this over here. And what This? Why do we have to beat that? Because this is what's for sale on the market. I don't give a [ __ ] about your comps when there's something lower on the market for sale. Comps were irrelevant at that point because we had yet to compete with this. This gives us current market conditions. Okay? If this property or quality is still for sale and it's lower than your comps, that means the new market sitting here. I'm not saying if you list higher than that porch hill, it's not going to sell. I'm just saying we can be conservatively confident that it will sell because it's lower than this. This isn't for sale. Okay? So, we're comparing. So, if this is lower than here, then this is our new baseline. If this is higher or sorry, yeah, if this if this is lower than this isn't our baseline. If this is higher than this, this is our baseline. Okay. So you basically take the lowest priced horse quality property and that's your baseline and you try to get. Yeah. You you you come up with this value in this one when it is lower is your baseline. Are you taking um on the sold tops are you taking the lowest one or the lowest kind of average play? Let's say there's three that are over in the developer on the left. You take that kind of like the average of these. Yeah. Yeah. Okay. So, that's our comparison. So, at that point, we could kind of make our offer from there. Obviously, it's it's not always going to be perfect. They're going to be situations where your property has different conditions. Okay, buzz and wetlands can affect the value. So, let's say your property's 10 acres and it's 50% in the flood zone or a wetland. It doesn't really matter. Flood is a wetland. Same thing. Regardless, it's probably not going to be easy to build. I'm not saying it's it's not possible to build a flood zone under wetland, but for the most part, it's not easy. It's a turnoff. But say it's 50% a flood zone. I would put like a 25% discount on your value. I don't I don't know the math behind that. I don't know why. That's just what I realized. About like a 25% discount. Yeah. Um, rolling terrain honestly like it's fine if it's rolling. It's still drivable. If this rolling train is still drivable, I I probably wouldn't put a dip count on it. But if there's some steep [ __ ] on it, like let's say it's I don't know. What do you think is like the max percentage slow you could build on? Here's no 20%. 45 bush. 40 is bush. 40 is way too hard to sit there. That's what I'm saying. Let's just call it 20, 20% slopes. I think you really imagine where it is too, right? R. Yeah, imagine where where it is. Like if your comps are like that, if you look at comps and it's very similar terrain, like you're kind of just copying it. I was saying like the road is like it's towards the back. It doesn't matter. This black city wetland. Yeah. Like where where is matters. So let's say this is your road and is your property. If it slopes back here, that's no big deal. But if it slopes right here, in some instances, you might have to put a 40% discount on your property because you have to go with crazy driveway to get to the buildable locations. But if there's stuff, don't worry about it. You're fine. But slopes, 20% slopes on this road frontage, that could be bad. Okay. So I in some instances you might have to put 30, 30% discount, maybe 40% discount because it's just a [ __ ] show. And in these cases I usually will talk to a realtor. I want a realtor to go walk this property before I buy it just to make sure they think it's definitely buildable. And then I'll also ask them what they think the value is. So, in a lot of these cases, I'll have real realtor give me opinions. Regardless, I like to get realtor opinions. Every single deal I get, I get a realtor opinion on it before I buy it. It's an absolute must. And when people come to me for funding, I say don't come to me unless you've gotten two realtor opinions of value. Oh, that was a question. Okay. What is the on real world opinions? Are you get their opinion or you sending them about their account before you buy a crap? Wait, if you're getting the real opinion, do they actually go look at the crop before your their opinion would give you value to you or did they just look at it online and know the error? In these cases, was on wetland slopes, I want the look at it. But if it's just a normal property, nothing wrong with it. I'm okay with them just giving me a value that they know the area. I do have one more question. Is there a tool on Land Insights that allows you to like organize realtors and like get to know who the realtors are out there because Yeah, I think that could probably say users time. Yeah. What's that like? So, Land Insights has um realtor reports. Okay. So there's a database of all the realtors and all the quantities of sold properties they've h sold. So you could find a way to switch your blood but yeah [ __ ] the portal real seriously bro I'm thinking serious but damn [ __ ] hell about that feature. Keep it going. I mean I'm Rob just transferred over to land insights from a different software and uh he's upset he did he didn't realize we had this stuff. Yeah. We have a realtor opinion or realtor reports which shows a spreadsheet of all the realtors and their contact information. So their phone number and then you can also see how many properties they've sold in the last year. So you can rank and okay this guy has sold a bunch of [ __ ] in this county therefore I'm going to reach out to this. How much time that saves the average user? This saves a ton of time or two hours a week. I mean a bit surpris and jet way more is reaching out that that's assuming that you have one quality reel. One one feature of land insights done that for you. Yeah. Crazy. So what what we do is we just export those phone numbers and then we'll put it in our CRM and we'll just do a text blast to all the realtors. Hey, I got a deal in this part of the part of the county. Would you be interested in looking at it and give me a value? Uh, there's a chance we're going to list it with you in the next couple months. Okay. Was awesome. Hey, quick question. Uh, there's so many awesome tools and futures. What do you if someone were to go book on Paul? How can someone do that so that they can bring more land insights? Okay, I don't want to bug you, bro. SL Where's my. All right. No, they're plugging. But anyway, you guys want to sign up with dual is there 11 number discount 10 seats a month guys sign up quick come on top discounts apply. They also get a thousand lead. Thousand. [Music] You know I read you bro. We're good. We're back. All right. So you guys saw this. This is this is the the framework that's important. This is really the Only thing I wanted to go over is this framework. I'm so freaking tired of people just going off of this because this is the most important thing or sales most important. Rashuach on uh how I don't know if you still do it using land.com and see if the properties ever listed before. Yeah, 'cause I figure like 20% of them have been listed before, right? Yeah. Yeah. So, and how to reach out to that real. Yeah. So, things you can do on land insights because you're already in there first is you want to put your sold comps all the way to three years back and look near the area. Sometimes listings, if your property's here, there might be a listing over here and it was the same exact acreage. If it's the same exact acreage as yours and it's over here, there's a chance that might have been a listing for your property. If that was the case, there might be something wrong with it. So, look at that listing history. Look at what it was listed at. If it was listed really low compared to these numbers we found, there might be something wrong with the property. And then another thing you can do because not every single listing will make it to land insights because it was on the MLS land.com uh land investors like to list properties on land.com and so there might have been a chance a land investor listed a double close for sale of that property and they didn't list some MLS that listed it on land.com. If you search that area around your property, you might find that listing. So that's another part of due diligence you want to do just to make sure your property wasn't listed. And there's nothing wrong with it. And you got to make sure offmarket you got to change the filters. Make sure everything. Yeah. So throw all your filters on active off market soul. Just look for that same acreage as your property on land. Okay. So we went through the basic framework the comparison. Okay. Features To be honest, utilities don't really matter that much. I know a lot of you guys try to factor in utilities. It really doesn't matter that much. As long as there's power lines, you're good. Like, I'd say power lines are the most important thing, but I don't know, only about 10% of the 10 to 20% of the properties you look at actually have like a sewer line or a water line or a well. But for the most part, like every property you sell, they usually need to install a well and sept it. But there's usually power lines. So, as long as your power lines is, you're good. Um, if power lines are like a tenth of a mile away, that's fine. But if power lines are like a mile away, you might have an issue. You might want to put like a 25% discount on that property. Yeah. Again, like obviously we're we're trying to make as many guesses as possible. Like I'm I'm great at guessing 'cause I've been doing this for a long time. But if you guys are guessing and you don't quite know, just get a realtor opinion of value. Have them look at it. They'll give you a value. And I don't like to just get one. I always want at least two. So three was realtor opinions, minimum of two. And I say minimum of two because one might be lying to you, one might be a horrible realtor. So if you have two, you can take each opinion with a grain of salt. See how good their description of that value is and figure out which is better and maybe you could take the average as well if you.
trust both of them. Okay? And you want to like bring them all the information you got here. So it's like, okay, I saw that there's this property for sale on the market at this. I noticed, you know, there's a 20% slope in the middle of this property. I also notice there's no power lines within a mile. Uh, I don't think there's a well accepted. You want to give them all that information because you don't want them guessing. You want to try to give them as much information as possible so they could give you a good value. Okay.
So, usually like it's it depends on your scale, but we like to make an offer at this point. I usually make an offer before I get realtor opinions because we're at a very high scale. We're making sign like at least 15 of these offers a day. But if you guys like you're only getting a couple deals a month, it might be worth it to get these realtor opinions before you make the offer just so you don't mess up because once you make this offer, it's very difficult to go back. It's very difficult to say, "Hey, I looked at the property. We can offer this much." Get a signed purchase agreement and then go back and say, "Actually, we looked at the property again and there's something wrong with it. Therefore, we need to go down." That >> mentioned that like three times. Yeah, in both essence. >> So, >> yeah. So, do you guys want a low sale? I recommend getting these realtor opinions before you make that final offer cuz it's hard to circle back after you make that offer.
So, would you say for testing, range offer, they accept, learn about the property, get the realtor opinions, then circle back, give them the final, hey, this is what I could do for you type day. And then for mail, obviously you have the offer, learn more about the property, hear about where it's at, get the rates for payments, then circle back, and then you have the final offer type thing. Is that the process for both? Yeah. But go over go over the first one again. So tax. So I'm in what you do in your business, which is there's obviously multiple forms of both ways. You can send out neutral letters for mail. You can set up neutral texts as well to just to get responses. If you do that, obviously you just properly get uncalled. If you don't, you send out ranges or blind offers first. You're sending out an offering that's already out there as well too and you don't get on call even talk to them unless they're within that range. So once you have that, ask the questions and then obviously once you feel like okay, this is something that's qualified, you get back in touch with them for a five offer price, but you don't do that until you actually talk to true realtors is what you're saying. Then you circle back and then give a hey, this is what >> only if you're at a low scale. Yeah. But texting you're doing you're dealing with lotteries. A lot of interested people in your range. So like I'm always So you're doing first ball first contract >> for not first ball. So, okay. For texting, like we'll make an offer and then we'll do like a discovery call. Basically, we're just asking questions. Hey, is there anything on the title utilities all that stuff? And then that uh we manager who talked to that seller for the discovery call, he's going to take notes inside our CRM. Our acquisition manager inside the land business will look at those notes and come up with a final offer from there. But we're not doing a one call close because we don't want to make an offer blind, right? They that good if there's already a blind offer or a range offer. We're asking you. >> Okay. So, there's two steps to this. I went to a 1.0 to put on. So, 1.0 yesterday is okay. You you do your best to make >> a decent blind offer. >> Yeah. >> But when somebody reaches out and they like that, it's not blind anymore. No, >> it's a deal. So now we have to make the deal offer and we want to look at everything these specifically in your five mile radius to make sure we're not we didn't mess up that. >> I just really want to reinforce that part because you saying you just end up pricing you've now nailed three times and it's like obviously what you're having multiple times. It's like this is really important. >> Yeah.
Okay. So question on my process. Uh right now like it's all man-made. So either comes in to lead manager or pat out and then that deal gets written in cow and then Yakuzi manager case comes in and has the first call. Then after he has the first call it goes into I check his columns right compently right you change that and that he has the second call to club. Yeah. Would you change that like I called her first before he even makes your first call or would you keep that process? Right. So you may as a blind offer and the came in. >> Yes. Have them call before you even look at it. >> Yeah. Cuz you want to gather information before you make that offer. Like as as a business owner, you're spending time on this consistently every day. So, you want to make sure you make the decision off of all the information you can gather before because there might be he might say there's an environmental easement on the property that doesn't allow you build and you would have spent the time comping it when it was actually worthless. So, you want your acquisition manager to have all these questions that he's asking to make sure it's a valuable piece of property and there's nothing wrong with it. And then if there's anything extra, maybe uh a really a new well or like a mobile home or a structure that's livable, you want to make sure you get that information so you can use that as well. Or commercial zoning, which is kind of most important. >> Are you are that it? Uh do I have a few question? This is like completely unrelated. Bill, do you want to finish with your [ __ ] then and do that as a couple? >> Okay. I got one last thing. So, let's say you're blind offer that's too high. Yeah. >> Which happens to a lot of you. >> Looks like a just sub this. >> Luckily, there's an inert tool that helps you with that lane insight pricing. Right. Coming out shortly. Huh? >> It's coming soon. >> Oh, yeah. Coming short, little little uh go. >> Okay. Blind offer is too high. Okay. This happens to everyone. All the time. Happens to me all the time. I stand in my mess up too on a daily basis. Okay. So, you need to go through that process. Let's say you found that there's a property for sale. like you found the bell curve value whatever set that offer deal comes through you realize there's a for sale listing it's lower than all this okay the blind offer is out the two right hey depending on your business model you have to negotiate if you're doing double closes you might be able to work out that deal still let's say it's worth 80 grand but but it's actually worth like 60 grand. You might be able to pull off a deal and make like 12 grand after realtor commissions and closing expenses. So, you can make that decision yourself. If you want to just cash close it, like that's your business. I want to cash close it. Your margins like I I wouldn't offer more than 45 grand or sorry, if it's worth 60 grand now, I would want to be at like 35 grand max for this to be a deal, but you might not even get a funder to approve it at 35 grand. You'd probably have to be at 30 grand. So depending on your business model, you have certain uh amounts you could adjust your price based on that. You had the quick question. >> Yeah, there's so many people who I connect with especially newer real estate space people who even in 6 months or less. Let's double close. Double close is when you get a purchase agreement signed that allows you to list it for sale before you own it. Some places it's illegal, some places isn't. I'll let you do that research on your own. But, uh, if you list a property for sale, let's say you have an under contract at 40, you haven't bought it yet, and you have an offer at 60, it's almost a certain deal. I wouldn't I wouldn't say it's a certain deal, but it's almost certain that you're going to make that profit margin, and you might just have to put up the money for a day for that closing to happen. So that's why like your margins can be lower whereas the cash closes you have to actually buy it and then list it and then sell and you don't have the certainty that there's a buyer out there at that 60k price. >> Got is there something within Land Insights that allows you to portate and work with double close specific agents in certain counties? >> Yes. So, inside the realtor reports section, inside land insights, we have several double closed realtors who we've talked to and they've agreed, hey, if somebody contacts you for your land insights and they have a property, they are interested in doubling that you'll work with them. Okay, that's how we've already known it's good because it's it's very difficult to get a realtor to agree to this because their commission's not certain. Well, so they're taking the risk with you. So we identified all the people who are willing to take a risk for you. >> Okay, that's awesome. So why not too high? You need to negotiate. So this is where you be a good salesperson. If you're making offers too high all the time, you make sure you're a good salesperson. If you're a horrible negotiator or it's too poor at negotiating, either make them better or just make better offers, make low offers and use the framework that I use. Okay? So when you're negotiating, you always need to use something to negotiate oppa. So it's usually going to be a feature of the property. All right? So on wetlands, those are usually a first Lego after. If there's a plaza or wet little property, you can say, "Hey, Mr. Seller, I know you wanted uh 40 grand. I know we offered 40 grand. Um, but we looked at the property more closely and we discovered it was wetlands and pleasant of the property. And as you know, we can't build like as you know as an experienced landowner, you know, you can't build on those areas. Therefore, a drop price here. But I like to stack features. So if there's multiple features, let's say like utilities, there's no uh there's no water line, there's no well, there's no septic system. You say, "Hey, I have to invest at least 10 grand into a septic system, 15 grand into a well. I have to call and power lines. It's going to be another few thousand. Is it a lot for us?" And I mean we we broke down the prices and that just doesn't make sense for us. So we need to lower our offer to this amount. And then you can stack that with water lines and flood zones as well. And in addition to that, we also found as well on the property. There's other properties in the area that we're interested in looking at. And if we were to buy this at this price, it's just not going to make sense to us if there's other properties out there that have better features than yours. So I know this is something difficult to to hear that we made an offer at this but because of that we're going to have to lower it so on so forth. So feature stacking basically so you can just there's so many things to your advantage if you slope, you can say hey, we have to put in all this work and modding in the excavation to make sure it's flat to build on in this area. It's going to be tens of thousands of dollars whatever but if you can stack multiple things that's going to make your negotiation a lot stronger and then if they say no to that long-term follow-up you're just following up over a long amount of time. We do this all the time people will say no to our offer initially 3 months later, they'll come back around and say, "Hey, I should sell it to you for that amount." So, it's basically negotiation and then actually being consistent with your follow-up. We could stack up those who might make a lot of these work. >> What percentage of deals do you get from follow-up? What percentage do you get from typical like new people who get we reach out to petty? >> Wow. >> Yeah. >> So, the follow-up process is a very >> follow-up is very important. You can't just they say no to your your offer, you could just let them go. If they showed somewhat interest, if they showed symptoms that hey a they want to sell, they need that money, you don't want to just let them off the hook. You want to follow up with them. And if you don't have a built-out system inside your CRM that like shows you, hey, follow up on this day, this day, this day, this day, you're not an engineer. There's this. You're not going to be consistent. You're not going to get as many deals. But if you can use the powers of your CRM to schedule tasks to follow up these people, you're going to do well. So build out that follow-up. >> Scap CRM that you recommend or that N Insights encourages users to use. >> Um I I I use three different CRMs. So it really doesn't matter which one you're using. There's Pebble, which is made for land investors. I personally use it myself just because my business run off follow boss for so long. I use Follow Boss. I'm happy with that. Records your call. I'm pretty sure Pebble does the same thing. It's it really doesn't matter what CRM you you use. So >> now you have questions um for your different that kind of lead to the next day. Why do you have three different zeros for different positions by your disto your actition? >> Oh I have three different businesses. >> Oh yeah. Yeah. three different land businesses. But that just that goes to show you don't like CRM are are >> do you also have three daughter providers? >> No, this just one this Monday data provider played in sites. >> Okay, question. Uh [ __ ] that. Hold on. >> Oh no, folks. Um, so I know in this honestly I plug you for there's a [ __ ] way to edit photos. Is there a PU on that? >> Yeah. Honestly, is there a teachable course? >> Okay. Well, that's going to be all sites. He could look at the course and then it'll log with the course. >> Yeah. And you use that for every single one of your photos? >> Yeah. >> Give him a person who does that. >> Well, he used to just give the log into a realtor. Oh [ __ ] Damn you. Oh yeah, they get you. Holy [ __ ] That's really nice. Yeah. >> Um and then also he say as you know you had a disp manager. What does your disp managers do? Like what are they responsible for? If I were to have one and you were a serial scratch and you needed one, what would you have to do? What would you have guess? >> Disc manager. It's a very high level uh position. >> Assuming I'm taking care of the transactions through Yeah. If you're making like over 300 grand a year, it makes sense to get one of these. This is our dispo manager. So, their job is everything post signs purchase agreement PA. They do they should be doing everything post sign PA. Like your goal is to not be involved in this process at all because it's key. It's repetitive. There's a system to it. >> There's no point in you working in a system. J. So follow off is acquisition. So that's false abolitions. I'm saying dispo managers only post signers. Yeah. Yeah. Yeah. They will do negotiations. >> Yeah. >> And do they do your Excel sheets and whatnot for pricing or what is that considered? Why wouldn't this one add you to Excel? I'm the right ser. >> What are they? What? What position is that? Like Excel sheet price you that's cover this manager like does with irrelevant acquisitions. This is just paperwork. So what they're doing is realtor opinions listing agreements realtor followup closing coordination. >> What does the wise do? Do babies listening see a post all that stuff. Ideally wires and uh sun docs. Yeah. S docs >> cuz you're you're um discipline manager at POA for you. >> Yeah. Your dis manager like if you trust them Yeah. with your banking information and signing documents. If you trust them, you give them a POA. This allows you to travel anywhere in the world as long as they're in the US. So if you have this figured out, would you communicate? You can live anywhere in the world. So that's why would you ever hack up? Just it's on my head. Would you ever hire overseas to do that [ __ ] or not? >> Absolutely not. >> No way. No, I mean you can have them do this all coal info. No way. Right. You can you can have an overseas VA do these two things. Realtor opinions and realtor followup. >> No listing agents. >> No, >> I'm not. >> No, you need a POA for listing agreement. >> Okay. >> Okay. >> And then a random person will fill caves by still learning this American. >> Yeah. >> And then you would have a hard plan else. >> Yeah. >> Yeah. >> So that's American-based. It's the average salary depending up volume. So if you make 500,000 a year, >> you're making like 500,000 a year. It's just a part-time job at that point. You could pay someone 25 grand here. Oh, do all that's free cuz there there's not that much you're giving them. You're making 500 grand a year. There's not that many deals. So, it's not much worth for them. It's just a side pig, bro. So, let's say they just work in an office or they work next to a notary. It's not much work for them to go rather do paperwork and follow realtors. Well, yeah. Where'd you get that uh eagle sweater? It was custom made in Panama. Really? Yeah. Well, where are you Pama? >> We're securing the bail canal. >> Really? The Harris? >> Yeah. So Trump sent us out then Trump custom made. >> He's eating letters for President Trump. Memorial Day. >> We have veterans. >> Yeah. Memorial Day. >> Memorial Day. >> Absolutely. >> All right. Any other questions? >> Great job. [Applause] >> Motorc. If you're serious about flipping land for predictable profit and you want to plug into the exact system our students are using to close their first deal or their next 10 deals, then tap the video right here. It's a free 15-minute strategy call where we're going to pull back the curtain and show you the exact LEA system that our students are using right now. We'll show you the entire process A to Z on how you can start landing deals in the next 90 days or less. Slots tend to fill up fast. Grab your spot now and I look forward to showing you the exact LEA land flipping playbook that I've been using for the last 6 years and that nearly 500 other LEA members have used today. Click it and I'll see you inside. [Music]