10 Reasons Why Land Investing Is The Best Passive Income Model

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 Model 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 at 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 one It's a huge market. Every venture capitalist asks the same question. How big is the market? Our market is massive. There are 3,007 U.S. 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 two, there's no big money in our niche. Private equity groups, hedge funds like tax liens, multifamily residential tax funds, private equips. 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 three, 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 in clean taxes, then sold it for $2,650 plus a 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 $2,600. That's a 270% ROI. Jason bought a property for 2000 and sold it for 5150% 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 and keep making singles and you'll win this game. Or Jeff, who turned his $5,000 investment into $17,500. But take a look at some of these deals. Roy bought a half acre lot for $1,800. 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 four, 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 RIA meeting, a Real Estate Information association meeting, there's say 100 people in that meeting. 99 of them will be house slippers, landlords and wholesalers. You and I would 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's a. 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 we'll all run out of money before we run out of deal flow or more land.

Number five, raw land. Actually cash flows. Now, the way we sell it is by owner financing. And 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 $1,700. He then sold the property on terms the buyer will pay him $225 per month for the 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 $1,600. He struck a great deal with his buyer. The buyer put $2,000 down and will pay $250 for the next four years. That is a profit of $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, 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 pay, 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. 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 six, land investing scales. You don't have to be like the housing people, an expert in their local market. All you need is an inexpensive laptop, an 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 is 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 seven, you can leverage your time. I work about an hour per week in my land business. Take that time, Ferris. 90% of the business is automated with software and inexpensive virtual assistants around the globe. Number eight, there's no headaches, no renters, no rehabs, no renovations, no rodents. No one's calling me at three 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 6,000 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 would be, well, 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 Superfund site. I've even bought properties where I messed up my due diligence. I bought on the side of a Mountain for $2,500. I put it up on ebay. I thought, oh, 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 land, maybe only.

5 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@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 nine 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.

Sam.