Stick with me on this video to learn the 10 reasons land investing, that's right
land investing, is the best passive income model. In fact, I even had Grant Cardone and Tom
Wheelwright from Rich Dad Poor Dad on my podcast "The Art of Passive Income" podcast agreeing with
me. If you want to know the 10 reasons why land investing is the far superior investing model
stay tuned. So I'm Mark Podolsky, The Land Geek and I've been a professional land investor for
over 20 years. I was a miserable micromanaged investment banker. I had a 45 minute commute to
work and back and it was miserable but in just 18 months I was able to quit my job.
So let's go over the 10 reasons land investing is the best passive income model.
Number 1 - It's a huge market. Every venture capitalist asks the same question "how big is
the market?" Our market is massive. There are 3007 US counties and billions of vacant land
available. You, me, a million people could be in our niche we'll all run out of money
before we run out of deal flow. Not only is it a huge market because there's so much vacant land
but you have a larger market because you're not confined to one or two metropolitan
areas. If you were to flip houses or become a landlord you'd most likely be constrained to
opportunities in just your area. Land investing can be done entirely from your laptop without ever
having to set foot on a property that means your market is the entire United States.
Number 2 - There's no big money in our niche. Private equity groups, hedge funds like tax
liens, multi-family ,residential tax funds or private equities. They shy away from our niche
because they have too much money to invest. Our average deal is around $2,500, that's it.
Number 3 - If the average deal is $2,500 then you don't need much money to get started.
I started with $3,000. Some of my clients started with $500 to get going with their
first deal. Let's take a look at some example deals from real land investors in our community
so you can see how little money you need to invest up front to see some big returns. Joe bought a
property for $650 including taxes then sold it for $2650 plus of $199 doc fee charged to the
customer. That's a 338% return on investment. Caleb purchased a parcel with back taxes owed
totally at $700. He sold it for $2600. That's a 270% ROI. Jason bought a property for $2000 and
sold it for $5000, a 150% return on investment, and these are deals that people do every day.
We often refer to deals in terms of baseball - singles, doubles, triples, home runs. All these
examples are singles build enough momentum, keep making singles and you'll win this game. Or Jeff
who turned his $5000 investment into $17,500. But take a look at some of these deals... Roy
bought a half acre lot for $1800 then he sold it for $16,800. That is 833% return on investment.
Where else can you put your money to work like that? Then there's Chad who purchased
a small plot of land next to a restaurant that was looking to expand. He was able to sell the
parcel of land he bought for only $900 and flip it for $35,000. That's right, $35,000. While that's a
home run deal you won't see every day, there are plenty of opportunities to make a great profit.
Number 4 - There's virtually no competition. You won't go on HGTV or the DIY network and see me on
"Flip This Land" the before picture is raw land, the after picture is raw land, it's boring tv.
Plus, if you go to a REA meeting, a real estate information association meeting,
there's say a hundred people in that meeting 99 of them will be house flippers, landlords,
and wholesalers. You and I will be the only land investors. In this business competition is
considered a good thing. If you are selling land in a county with other land investors that's a
sign that the market is healthy. There is a reason other land investors are working in that area
and it's a great place for beginner land investors to actually start. Remember there is so much
available land out there that will all run out of money before we run out of deal flow or more land.
Number 5 - Raw land actually cash flows. Now the way we sell it is by owner financing.
We just create a land note and receive mailbox money every single day, and the game we play is
can we create enough of these land notes where our passive income exceeds our fixed expenses
and then we're working because we want to not because we have to. Let's look at some example
terms deals so we can just see how it's done. Adam here bought two properties for a total of $1700.
He then sold the property on terms. The buyer will pay him $225 per month for the next 60 months.
Multiply that out and it's $13,500 he'll earn from this sale over the course of the next five years.
Billy bought a property for $1600. He struck a great deal with his buyer. The buyer put $2000
down and will pay $250 for the next four years. That is a profit of twelve $12,400. The goal
is to create more and more of these terms deals the first few you get will replace a car payment
then you get a few more and all of a sudden you're covering your mortgage. In time, with enough terms
deals you can replace all of your fixed expenses. So let's talk about what happens if someone
defaults. Well, basically the way that we structure it is with what we call a land contract.
So they make their down payment, they make their monthly payments, and if they don't continue
paying on their note we keep the down payment, we keep the monthly payments, we don't have to
actually pay anything to evict anyone repair any properties. We don't even have to go through an
attorney to remove a lien or a deed of trust. It's just we resell that property now our cost
basis is even lower and we've extended out a larger return on investment, and in fact all
of this is automated with a simple tool. A set it and forget it software system called Geekpay.io.
You simply set it up one time and they've you get these payments every single month via
ACH or their checking account. It does all the notifications. It does all the accounting. You
just simply go to bed at night and watch the money literally flow into your bank account magically.
Number 6 - Land investing scales. You don't have to be like the housing people,
an expert in the local market. All you need is an inexpensive laptop and internet connection and
start doing deals from anywhere in the world. Let me show you just how much this business scales.
If you are in traditional real estate like the housing people I mentioned before,
you are confined to one to two metropolitan areas which limits the number of deals you can do. If
more competition enters the market there's less opportunity for you. If the market dips
you are vulnerable to it. With land investing you can run this business from wherever you want. Say
you start doing deals in county A and everything is going along fine. You've set up your systems,
you've got virtual assistants doing the heavy lifting, you've automated repeatable tasks, which
we'll talk more about next, but what stops you from entering another market in county B? Nothing!
Once you've got a great handle on the market in one area you can expand your business
to another. This is great protection from any type of market dips, increased competition,
and more issues that I haven't even thought of.
Your territory is the whole United States. It can't get better than that.
Number 7 - You can leverage your time. I work about an hour per week
in my land business. Take that Tim Ferriss. 90% of the business is
automated with software and inexpensive virtual assistants around the globe.
Number 8 - There's no headaches. No renters, no rehabs, no renovations, no rodents,
no one's calling me at 3 in the morning saying "hey, my land is leaking." I want to talk about
a worst case scenario and the worst case scenario is that you own land. So I remember talking to
my wife about when I first started land investing. She says "Well what happens if you can't sell the
land?" I said "Well the worst case scenario is we own land. Maybe I can barter it, maybe I can
improve it or trade it." You'll never be stuck with a piece of raw land. In fact,
I've done this over six thousand times I've never been stuck with a piece of raw land. None of my
clients have been stuck with a piece of raw land. Another example, what happens if you overpay the
land? Well if you've got training there is no way that you're going to look at the comparable sales
divide by four have that 300% of margin and overpay. If you have an environmental issue
you could go to epa.gov to make sure you're not buying in a super fun site. I've even bought
properties where I messed up my due diligence. I bought on a side of a mountain for $2500. I put
it up on eBay. I thought, well, I'll just get you know maybe my money back. I put a no reserve for
10 days a dollar minimum bid it went up to $30,000 and I called the guy. I'm sweating like "Did you
see that it's on the side of a mountain? This 20 acres of you know of land maybe only five of
it is accessible." He said "It's perfect." He was a director in Los Angeles. He didn't want to have
to deal with pulling permits from the county. Now he owns the land and he can go out there and film.
Essentially there is a pig for every barn, and you can just learn more at thelandgeek.com
and don't take my word for it ask the community about any type of worst case scenarios
that could come up. But in our business it's extremely, extremely rare.
Number 9 - Since we aren't dealing with a tenant we're exempt from Dodd-Frank,
RESPA, and the Safe Act, all this onerous real estate legislation.
Number 10 - It's the best passive income model. It's a one-time sale. You get recurring income
every single month. Nothing to maintain, nothing to protect, zero headaches. Leave
a comment for me if you know of something better. I'm flexible like a yogi. I'd be interested in it.
I have not found anything better. You don't need hardly any money to start and you can
travel the world working this model. Thanks for your time and if you found this video valuable
please like and subscribe so YouTube strokes my fragile ego. See you next time.