- Hey guys, how's it going?
This is Seth from retipster.com.
And, I wanna show you a deal that I did recently.
I've actually wanted to show you this for the past month
or so, but I had a really weird cold that totally like
blew out my voice for the past month,
so you might be able to hear, it's still a little weird,
but it's mostly back.
So now that it's mostly back,
I wanted to just show you this before any more time gets by.
so first of all, before I jump into this,
I just wanna say that, my intent with this video
is not in any way to like toot my own horn or, you know,
be boastful or brag or anything like that.
The idea behind this is to simply inspire you guys
and to show you what is possible.
This is the property right here.
This is a 10 acre parcel.
And this is out in the Western part of the US
and this all came to fruition back in February of this year,
I think it was, when I got a random submission
from somebody on my website saying that they own this
10 acre parcel of land and they wanted to sell the thing.
And in the submission on my buying site, by the way,
if you don't have a buying website, I would recommend it.
It's worked wonders for my business.
It's how I've gotten lots of deals just like this.
And I don't have to use direct mail.
A lot of the leads and submissions are free
for the most part.
So anyway, I got this particular submission through
my buying website and in this submission,
the person told me that they thought their property
was worth $80,000 and they had had
two local realtors verify that value.
So usually what I do when I see that number, whatever it is,
whatever rationale they came up with to give me that number,
usually it's not really that trustworthy at all,
but it's a starting point.
So the offer that I sent them was 5,000 bucks.
And yeah, as you can imagine, a lot of people
when they see that kind of offer are either like angry
or they laugh it off or they just don't respond.
But this particular person said,
"I think it's worth more than that,
"but okay, let's go ahead and close it."
So at that point I started digging a lot deeper in.
I found that this property
is actually technically landlocked.
So as you can see from this picture here
and also from this one right here,
there is this road that goes to it,
but that's not a public road.
That's a private road.
And actually the first time I saw this satellite image,
that road wasn't even there.
So that road was created like pretty recently.
And I didn't even see it there the first time I looked
at this and in my mind the thing was landlocked.
So I responded to the seller and said,
"You know, because this thing is landlocked and,
"you know, you technically can't get to the thing legally
"that has a big negative impact on the property's value.
"So now if you still want me to buy this thing, I'll do it,
"but my offer is now 500 bucks."
And the person sorta deliberated for a while and eventually
said, "Okay fine, let's sell the thing for $500."
And so we went ahead and closed and because this thing
was so cheap, I ended up closing in house,
which is not something I do a lot of anymore.
But, you know, just because of the economics of the deal
and I knew how to do it pretty easily.
We just signed purchase agreement and got a deed done
and recorded that thing and I owned it 500 bucks later.
And at the time earlier this year I was super busy with
a lot of other stuff on my plate in other areas of my life.
So I didn't have a whole lot of time to turn around
and list the thing all over the place and try to sell it.
But I knew I was sitting on a really good deal,
but I just didn't have time to like really make it happen.
So I basically sat on the thing for a few months
and then later in the year when I finally had time,
I went ahead and hired somebody on Craigslist
to get some pictures for me.
And when I got those pictures I found
it was actually like a pretty beautiful property.
Here's one of the pictures you can sort of see
there's a really nice view down into the Valley below.
Here's a another picture you can see,
it's just like a really nice area, a nice property
and just looking at some of the other similar properties
in the area with a similar size range
that were not landlocked, but otherwise
they were pretty much the same thing.
Those were listed quite a bit higher than 500 bucks.
So I decided to list the property on Craigslist for 39,000
not knowing if that would get any bites
or if anybody would be interested in that.
And also by the way, when I finally did list this thing,
I was aware of this brand new road that had been put in.
I knew that would certainly have some impact on the value
just by nature of the fact that it's officially
not landlocked anymore, but you know, it's a private drive.
So I didn't really know exactly what the value would be
and that's usually how land is because land
just inherently is a very tough kind of property
to put a rock solid number on.
But anyway, I listed the thing at $39,000
and I did actually get a couple people responding
saying that they were interested in buying it with seller
financing because I did put that as an option in my listing.
But I actually found out like in less than 24 hours,
the owner of this property right here reached out
and said that they would pay me $25,000 cash for the thing.
And they also sort of threw out some information, like,
you know, it's really, really steep on that property.
It's hard to build and, you know,
we own the access up to this drive.
So being as busy as I was, I didn't really have time
to look into all the validity of all of that stuff.
But what I did know was that they just made me an offer
for 25,000 bucks on a property that I paid $500 for.
So rather than deliberate and just try to squeeze
every last penny out of this property, which I could've done
and honestly like maybe that would have been smarter for me
to do, but rather than mess with all that I just said,
"Okay, let's go ahead and close on this property."
And mind you, this happened like almost immediately
after I put that ad out there.
So I wasn't like sitting around waiting for buyers to come.
It just happened really, really quick
and we went ahead and closed through a title company.
This is the closing statement.
They actually paid the full 25,000 and they paid
for the closing costs and they paid me a little bit extra
for some of the property taxes I had paid.
I had paid I think a few hundred dollars in taxes
during my tenure as the owner of this property.
So, I actually walked away with a little bit more
than 25,000 bucks and there's the check right there.
And you know, I think this was just a really cool deal
because first of all, I mean it is literally the highest
ROI I've ever gotten on any deal before.
And again, 500 bucks to buy the thing.
So I didn't have to take out any debt.
I didn't have to deal with any contractors, any tenants,
you know, the thing is just land,
so it was a very simple type of property.
I never visited it,
I've never been even to the state where the property is.
And I was able to do all this stuff remotely
simply by hiring local people to check out the property
and get pictures for me and hiring
a local title company to close it for me.
It was just a very simple, straightforward process.
And I do think that's not necessarily the norm.
Usually most land deals have some kind of a little wrinkle
that comes into play.
Either it takes a little bit longer than I thought it would
to sell, or maybe I overestimate the value of the property
or some kind of a weird oddity comes into the mix.
It doesn't like ruin anything,
it just makes it a little bit harder than I thought
it was supposed to be in the first place
and the fact that this was so unbelievably smooth
from start to finish was just amazing.
And then also that huge ROI.
I don't think that that's normal either.
Usually most land investors who are following
this kind of business model will expect anywhere
from like a 100 to 300% ROI.
If you can get higher than that,
that's even better obviously.
But I think one big takeaway from this is just
to realize like if you do deals long enough
like it's totally within the realms of possibility.
I've had lots of other deals that didn't necessarily
have this big of an ROI but still were just like amazing,
like paying a few thousand bucks and getting like tens
of thousands of dollars back from it.
Honestly, I don't know of any other real estate investing
niche that offers that kind of potential.
Usually you're gonna have to deal with way, way,
way more headaches or a much, much smaller profit margin
or just a much slower process in general.
And that's one of the awesome things about land
that a lot of people for some reason mysteriously
I still don't understand it.
They just kinda overlook that because land, you know,
that's not a house, so it must not be a real property
or something like that.
I don't know, it's weird, but I just wanted to kinda show
you guys what's possible and just encourage you to know
that, you know, you can totally find this kind of thing out,
that if you look long enough, even if the ROI
or all the numbers don't look exactly like this,
there is tons of potential in land,
but a lot of people just don't pay attention to.
And that's really to your benefit
because if they're not paying attention,
that means the opportunity's there for you.
And it is, believe me.
So anyway if you find any of this stuff interesting,
I'm gonna link to a few things beneath this video
and even on the screen here.
So I did another similar case study a couple of years ago
on a property in New Mexico.
In that case study, I explained all of the circumstances
on how I found a really good deal, how long I had it,
how I got the thing sold, how much money I made,
all that stuff.
So if you wanna see another case study kind of like this
then go and feel free to check that out.
And I'm also gonna include a link to a super comprehensive
blog post that just outlines this entire business model
in terms of how you can go out and start looking for deals
like this, finding 'em, closing on 'em, and selling 'em.
All that information,
you can find that at landflippinglifecycle.com
and I'm also going to link to that blog post beneath
this video in the description below.
And then lastly, if you ever wanna check out
a full blown course that explains like all of this stuff,
A to Z, start to finish, pretty much everything
you'd ever wanna know about how to get started
in the land business and grow it.
You can find that as well.
It's at retipster.club.
It's a membership site.
And as a member of that site, you'll find a very big,
comprehensive course that explains all of this stuff
along with the members only forum.
And we also do monthly free coaching calls for members
where people can ask questions about their business
and talk about where they're at so we can kinda help them
through their process.
So anyway, hope you guys found this information helpful.
Thanks a lot for watching
and yeah, I'll talk to you next time.
See ya.